Promotion is communication by marketers that 1 , persuades, and 2 potential customers of a product in order to influence an opinion or elicit a response.
1) informs
2) reminds
2) reminds
What are the four parts of the Promotional Mix? The four methods of promotion.
1) Advertising
2) PR
3) Sales Promotion
4) Personal Selling
2) PR
3) Sales Promotion
4) Personal Selling
What are the seven steps in the Selling Process?
1. Generate Leads
2. Qualify leads
3. Probe customer needs
4. Develop solutions
5. Handle objections
6. Close the sale
7. Follow up
2. Qualify leads
3. Probe customer needs
4. Develop solutions
5. Handle objections
6. Close the sale
7. Follow up
What are the four types of Presentations (ways to sell)? Explain them.
1. Formula selling - scripted
2. Stimulus Response - ask the right question at the right time, for example: "Would you like a tie with your suit?"
3. Successive Commitment - ask a series of yes questions, making it illogical to say no to the last question.
4. Need Satisfaction - have a conversation with a customer to find their needs
2. Stimulus Response - ask the right question at the right time, for example: "Would you like a tie with your suit?"
3. Successive Commitment - ask a series of yes questions, making it illogical to say no to the last question.
4. Need Satisfaction - have a conversation with a customer to find their needs
What are four ways to "close the sale?"
1. Look for customer signals
2. Begin negotiations
3. Provide incentives
4. Trial/Presumptive close
2. Begin negotiations
3. Provide incentives
4. Trial/Presumptive close
What is this an example of? You work at a cruise booking company. Carnival will pay you $50 for every booking you do on its cruise lines.
Trade Sales Promotion
More specifically, it is called a spiff.
More specifically, it is called a spiff.
What is this form of promotion? What is it called?
You work for a toothbrush manufacturer. You pay for a vacation to the Bahamas for the sales manager of Target after he agreed to prominently display your toothbrush at the beginning of the isle.
You work for a toothbrush manufacturer. You pay for a vacation to the Bahamas for the sales manager of Target after he agreed to prominently display your toothbrush at the beginning of the isle.
Trade Sales Promotion
Push money
Push money
What is Cooperative Advertising?
the manufacturer and the retailer split the cost of an ad for the manufacturer's product
What is the AIDA concept and why is it useful?
It is the four step process for achieving promotional goals.
The steps are:
Attention
Interest
Desire
Action
The steps are:
Attention
Interest
Desire
Action
What is Institutional Advertising designed to do? What are the two things you wish to advertise with Institutional Advertising?
designed to enhance image
1. Corporate Identity
2. Advocacy advertising - take a stand on a social issue
1. Corporate Identity
2. Advocacy advertising - take a stand on a social issue
What are the three types of Product Advertising Ads? Describe each briefly.
1. Pioneering/Informative - educate and create buzz
2. Competitive/Comparative - focuses on features and directly compares to competitors
3. Reminder - keep brand name in front of consumer
2. Competitive/Comparative - focuses on features and directly compares to competitors
3. Reminder - keep brand name in front of consumer
What are the five steps of creating an Advertising Campaign?
1. Develop Goals and Objectives
2. Identify Product benefits
3. Develop and evaluate advertising appeals
4. Execute the message
5. Evaluate the campaign
2. Identify Product benefits
3. Develop and evaluate advertising appeals
4. Execute the message
5. Evaluate the campaign
[Step 1] Develop goals and Objectives
What three things must you do in this step? Explain.
What three things must you do in this step? Explain.
1. Budget objectives - How much will be spent?
% of Sales method
Competitive Parity - match your competitor's budget
Average advertising cost: 3%
2. Message - What is to be accomplished? AIDA!
3. Sample Advertising objective - create a realistic goal
-Educate 15% of 18-30 yr old men about benefits within next 12 months.
-MUST HAVE DEADLINE
% of Sales method
Competitive Parity - match your competitor's budget
Average advertising cost: 3%
2. Message - What is to be accomplished? AIDA!
3. Sample Advertising objective - create a realistic goal
-Educate 15% of 18-30 yr old men about benefits within next 12 months.
-MUST HAVE DEADLINE
[Step 2] Identify Product Benefits
What does "sell the sizzle, not the steak" mean? What is a benefit?
What does "sell the sizzle, not the steak" mean? What is a benefit?
It means: sell the products benefits, not its attributes.
Benefit - What will I achieve by using the product? "What's in it for me?"
Benefit - What will I achieve by using the product? "What's in it for me?"
[Step 3] Develop and Evaluate Advertising Appeals
This is often expressed as a product's what? What reason does this step give to buy the product? Give a few examples of some product appeals.
This is often expressed as a product's what? What reason does this step give to buy the product? Give a few examples of some product appeals.
product's theme
emotional reason to buy
Examples:
Profit
health
love or sex
admiration
convenience
egoism
emotional reason to buy
Examples:
Profit
health
love or sex
admiration
convenience
egoism
[Step 4] Execute the Message
What is the goal of this step? Give a few examples of portraying the message.
What is the goal of this step? Give a few examples of portraying the message.
Portray information that attracts interest without distracting from the content.
Examples:
Scientific
Musical
Demonstration
humor
fantasy
Examples:
Scientific
Musical
Demonstration
humor
fantasy
[Step 5] Campaign Evaluation
There is a pretest and a posttest component to this. Describe each.
There is a pretest and a posttest component to this. Describe each.
Pretest:
-Are consumers likely to respond positively to the ad?
Posttest:
-Do consumers understand the ad?
-Did the ad meet its objectives/goals?
-Are consumers likely to respond positively to the ad?
Posttest:
-Do consumers understand the ad?
-Did the ad meet its objectives/goals?
What are the Advantages and Disadvantages of the following?
Newspapers
Newspapers
Adv: local
Dis: not selective, short life
Dis: not selective, short life
What are the Advantages and Disadvantages of the following?
Magazines
Magazines
Adv: color, informative, selective
Dis: expensive, takes a long time
Dis: expensive, takes a long time
What are the Advantages and Disadvantages of the following?
Radio
Radio
Adv: local, cheap
Dis: split-attention
Dis: split-attention
What are the Advantages and Disadvantages of the following?
TV
TV
Adv: cheap per person
Dis: most expensive
Dis: most expensive
What are the Disadvantages of the following?
Outdoor advertising
Outdoor advertising
Dis: highly regulated
What are the four considerations for Media selection? Define if necessary.
Reach - number of different consumers exposed at least once in a specific period
Frequency - number of times an individual is exposed during a specific period
Audience selectivity - ability to reach a precisely defined market
Cost - commonly referred to in "Cost per contact" or "Cost per thousand" abbreviated CPM
Frequency - number of times an individual is exposed during a specific period
Audience selectivity - ability to reach a precisely defined market
Cost - commonly referred to in "Cost per contact" or "Cost per thousand" abbreviated CPM
If you are advertising to the consumer, do you want to use the Pull approach or the Push approach? Describe the approach.
Pull - manufacturer promotes to consumer, consumer demands from retailer...etc.
If you are advertising to a Channel member, which approach do you use? Explain it.
Push - Man. promotes to wholesales, wholesaler promotes to retailer, retailer promotes to consumer, consumer buys
What are the four steps in setting the price of a product?
1. Establish price goals
2. Estimate demand, cost, and profits
3. Choose a price strategy
4. Fine-tune base price
2. Estimate demand, cost, and profits
3. Choose a price strategy
4. Fine-tune base price
[Step 1] Establish Price goals
Explain.
Explain.
Do you want to:
-increase sales
-meet a target profit
-meet-beet a competitor
-increase sales
-meet a target profit
-meet-beet a competitor
[Step 2] Estimate demand, cost and profits
What is cost? What is profit? What is a mark-up? What is Key-stoning? What is incremental costing (and when is it used?)?
What is cost? What is profit? What is a mark-up? What is Key-stoning? What is incremental costing (and when is it used?)?
cost - all variable and fixed costs
profit - amount added above the break even cost
mark-up - amount added above the purchasing cost to cover expenses and profit (cost+profit)
keystoning - marking up prices by 100%
Incremental costing - covering all of VC and some of FC
used when you have excess capacity or no better offer
profit - amount added above the break even cost
mark-up - amount added above the purchasing cost to cover expenses and profit (cost+profit)
keystoning - marking up prices by 100%
Incremental costing - covering all of VC and some of FC
used when you have excess capacity or no better offer
[Step 2 continued] Demand
What is Demand? How do you measure Elasticity of Demand? Demand is price elastic if...
What is Demand? How do you measure Elasticity of Demand? Demand is price elastic if...
the quantity of a product that will be sold in the market at various prices for a certain period
EoD= % change in Qd/ % change in Price
Demand is price elastic if you dec Price and Demand increases more.
EoD= % change in Qd/ % change in Price
Demand is price elastic if you dec Price and Demand increases more.
What is the Psychological Price point? The Demand curve assumes no change in factors affecting elasticity such as... (3)
Psychological Price Point - price at which the majority of consumers will drop out of the market
1. income
2. tastes
3. substitutes
1. income
2. tastes
3. substitutes
What is the purpose of a Yield Management System? What is an example field where this is used?
a system to maximize profit by adjusting prices frequently based upon short-term changes in demand and price elasticity
ex: airline tickets
ex: airline tickets
[Step 3] Choose a price strategy
What is a Price strategy? What are the three price strategies discussed in class?
What is a Price strategy? What are the three price strategies discussed in class?
Price strategy - basic, long-term philosophy about pricing
Price Skimming - firm charges a high intro price with heavy promotion
Penetration Pricing - firm charges a low price to extend its reach
Status Quo Pricing - charges a price close to current price or close to competitor's price
Price Skimming - firm charges a high intro price with heavy promotion
Penetration Pricing - firm charges a low price to extend its reach
Status Quo Pricing - charges a price close to current price or close to competitor's price
[Step 4] Fine-tune base price
What are the four retail level tactics discussed in class?
What are the four retail level tactics discussed in class?
Price bundling - combing two or more different products in a single package
Loss leader pricing - sell a product at near or below cost to generate traffic
Odd-even Pricing - odd=bargain, even=quality
Bait and Switch Pricing - lure customers through false or misleading price advertising, ILLEGAL
Loss leader pricing - sell a product at near or below cost to generate traffic
Odd-even Pricing - odd=bargain, even=quality
Bait and Switch Pricing - lure customers through false or misleading price advertising, ILLEGAL
What are Unfair trade practices laws? What is price fixing? What is Predatory Pricing? What is Price discrimination? What are the three defenses for sellers accused of Price discrimination?
Unfair trade practices are laws the prohibit wholesales from selling below cost.
Price fixing is an agreement b/w two or more firms to set a certain price.
Predatory Pricing is setting a low price to drive competitors out of the market.
Price discrimination is charging two different customers a product for different prices.
Defense:
Cost - added costs of serving different customer
Market conditions - vary
Competition
Price fixing is an agreement b/w two or more firms to set a certain price.
Predatory Pricing is setting a low price to drive competitors out of the market.
Price discrimination is charging two different customers a product for different prices.
Defense:
Cost - added costs of serving different customer
Market conditions - vary
Competition
What were the four categories discussed during the Chick-Filah presentation?
Food
People
Cows
Influence
People
Cows
Influence
What is the "services as a percentage of GDP" and "services as a percentage of employment" percentage?
81% for both
In what four ways do services differ from physical goods? Explain where necessary.
1. Services are intangible - makes eval. of quality difficult
2. Services are inseparable - consumer generally must be present
3. Services are perishable - cannot be produced ahead of time; production and consumption occur at the same time; you cannot inspect out defects
4. Services are heterogeneous - different each time, so you must set standards and use scripts
2. Services are inseparable - consumer generally must be present
3. Services are perishable - cannot be produced ahead of time; production and consumption occur at the same time; you cannot inspect out defects
4. Services are heterogeneous - different each time, so you must set standards and use scripts
What are the five key dimensions of service quality?
Reliability, responsiveness, assurance, empathy, tangibles
Services add what three "Ps" to the Four Ps?
People, Physical evidence, and Processes
Explain the additional 3 Ps from services.
People - employees, customer, other customers (all influence quality of experience
Physical Evidence - tangible part of the service, "service scape"
Processes - activities which lead up to and are a part of the service
Physical Evidence - tangible part of the service, "service scape"
Processes - activities which lead up to and are a part of the service
When performing a service, how should you adjust the original 4 Ps?
Product
Product
-emphasize service process
-build brand image
-build brand image
When performing a service, how should you adjust the original 4 Ps?
Place
Place
-convenience is important
When performing a service, how should you adjust the original 4 Ps?
Price
Price
-prices harder to justify to customers for many services
-use price to adjust demand to supply
-use price to adjust demand to supply
When performing a service, how should you adjust the original 4 Ps?
Promotion
Promotion
-make good seem tangible
-share good performance ratings
-focus on "core" service
-use a logo that reflects service
-share good performance ratings
-focus on "core" service
-use a logo that reflects service
Kartensatzinfo:
Autor: savhighsmith
Oberthema: Economics
Thema: Marketing
Schule / Uni: UGA
Ort: Athens
Veröffentlicht: 17.11.2010
Tags: Emmelhainz
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