Consumer Promotions Overview

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Questions and Answers

What is the primary goal of discounts or rebates in consumer sales promotion?

To maintain current customer relationships

To increase the number of new competitors

To stimulate trial purchases (correct)

To promote brand loyalty

Which of the following is a common characteristic of loyalty programs?

They provide no customization for different consumer groups

They do not reward repeat business

They are also known as continuity or frequency programs (correct)

They are only available in retail stores

How can consumer promotions contribute to integrated brand promotion?

By suggesting additional value with price reductions (correct)

By focusing solely on product features

By discouraging trial purchases

By bypassing customer engagement

What is a distinguishing feature of sampling in consumer promotions?

It allows consumers to use a brand on a trial basis with minimal risk Signup and view all the answers

Which type of promotion involves free or discounted items with another purchase?

Premiums Signup and view all the answers

What is the purpose of a trial offer in consumer promotions?

To provide consumers a risk-free opportunity to try expensive products Signup and view all the answers

What can lead to an increase in sales but often goes unclaimed by consumers?

Rebates Signup and view all the answers

What is the primary aim of sales promotions?

To boost sales quickly using incentives. Signup and view all the answers

What characterizes price-off deals in consumer promotions?

They consist of temporary discounts or reductions in retail price Signup and view all the answers

Which of the following is NOT a type of consumer promotion?

Point-of-Purchase displays Signup and view all the answers

What factor is contributing to the increasing popularity of sales promotions?

The ability to measure results effectively. Signup and view all the answers

Which promotional strategy rewards customers for their continued patronage?

Loyalty programs Signup and view all the answers

Why are savvy consumers more inclined to respond to sales promotions?

They are always looking for value and discounts. Signup and view all the answers

What is a significant challenge faced by manufacturers in the current advertising landscape?

Overabundance of advertisements leading to consumer fatigue. Signup and view all the answers

What distinguishes trade promotions from consumer promotions?

Trade promotions provide incentives for retailers or salespeople. Signup and view all the answers

What strategy do companies increasingly implement to engage consumers?

Sales promotions over traditional advertising. Signup and view all the answers

Which type of media is classified as above-the-line promotions?

Television advertising Signup and view all the answers

What does the term 'media vehicle' refer to?

A specific option within a media class Signup and view all the answers

What is a key benefit of influencer marketing in relation to public relations?

It helps generate conversations among consumers. Signup and view all the answers

What aspect is crucial for integrating PR into an Integrated Brand Promotion (IBP) program?

The right team is essential. Signup and view all the answers

What is the main purpose of geo-targeting in media planning?

To send ads to regions likely to respond Signup and view all the answers

Which term defines the percentage of the target audience viewing an ad at least once?

Reach Signup and view all the answers

What characterizes a reactive public relations strategy?

Addressing negative publicity from external events. Signup and view all the answers

What is continuity in media planning?

The scheduling of media over time Signup and view all the answers

Which statement regarding micro-influencers is correct?

They are more trusted than macro-influencers. Signup and view all the answers

What is flighting in ad scheduling?

Heavily running ads for a short period, then stopping entirely Signup and view all the answers

How did PepsiCo respond to the backlash regarding the Mountain Dew ad?

They apologized and engaged with affected groups. Signup and view all the answers

What does 'share of voice' assess in advertising?

Ad spending comparison among competitors Signup and view all the answers

Effective frequency measures what aspect of advertising?

The minimum number of times an ad needs to be seen for impact Signup and view all the answers

What do slotting fees refer to?

Payments to stores for shelf space. Signup and view all the answers

What is the primary goal of point-of-purchase advertising?

To attract shoppers' attention in retail environments. Signup and view all the answers

What is one objective of public relations?

Promoting goodwill. Signup and view all the answers

Which tool is commonly used in public relations for sharing positive news with employees?

Company Newsletter. Signup and view all the answers

What does lobbying in public relations typically involve?

Dealing with government officials and legislation. Signup and view all the answers

Which of the following is a drawback of using press releases?

They limit control over how media use or edit the content. Signup and view all the answers

What is a proactive PR strategy?

Implementing a comprehensive PR program. Signup and view all the answers

What role does credible news sources play in publicity?

They enhance the credibility of the information shared. Signup and view all the answers

How is the share of voice defined?

One brand's advertising expenditures in a medium divided by total product category advertising expenditures in that medium. Signup and view all the answers

What is the formula for calculating CPM?

(cost of media buy × 1,000)/total audience Signup and view all the answers

What distinguishes digital media from traditional media in terms of audience engagement?

Consumers actively seek out digital media, giving them more control. Signup and view all the answers

What is the primary objective of media buying?

Reserving ad slots in various media outlets based on a predefined schedule. Signup and view all the answers

What is programmatic media buying?

Automatically buying ads using data to target specific audiences. Signup and view all the answers

What role does the Agency of Record play in media buying?

It is responsible for purchasing media space for all client campaigns. Signup and view all the answers

Which statement reflects the current state of traditional media?

Traditional media is evolving and integrating with digital platforms. Signup and view all the answers

Which of the following is NOT a type of television broadcasting?

Print TV Signup and view all the answers

Study Notes

Measured vs Unmeasured Media

Above-the-line promotions are traditional media (e.g., TV, radio, magazines).
Measured media is closely tracked to determine advertising costs and effectiveness.
Below-the-line promotions are promotional efforts (e.g., in-store promotions, coupons).
Less formally measured for advertising costs and effectiveness.

Media Planning Terms

Media plan: Strategy for placing advertisements in relevant media to reach the target audience.
Media class: A broad category of media (e.g., TV, radio, newspapers).
Media vehicle: A specific option within a media class (e.g., a particular magazine).
Media mix: Combining different media types to reach the target audience.
Geographic scope: The area where advertisements will be displayed.
Geo-targeting: Placing ads in regions where the target audience is more likely to buy.
Geofencing: Tracking location to target ads based on proximity to a business.
Micro-targeting: Sending personalized messages to individuals or small groups.
Reach: Percentage of the audience that sees the ad at least one time.
Frequency: Average number of times each person is exposed to the ad.
Effective reach: Percentage of the audience that sees the ad enough times to have an impact or affect their perception positively.
Effective frequency: Number of times someone needs to see an ad to have an effect or for it to work.
Continuity: Placements over time in a media schedule.
Continuous scheduling: Ads running at a steady rate over a time period.
Flighting: Ads run heavily for a short time, then stop, and repeat.
Pulsing: Continuous running, but with higher ad frequency during specific periods.

Competitive media assessment: Crucial for assessing spending in media, especially when competitors target a very specific audience.
Share of Voice: Measuring one brand's media expenditure in relation to the total expenditures of the entire product category, within a specific medium.

Media Efficiency

CPM (Cost Per Thousand): A measure of media efficiency. It is (cost of media buy x 1,000) / total audience.
CPM helps compare costs of different media.
Digital/internet media is mostly pull media (consumer is more in control), and most traditional media is push media.

Media Buying and Programmatic Buying

Media buying: reserving media time (TV, radio, digital ad slots, and print media) according to the schedule for a specific client.
Programmatic media buying: Automatically purchasing ad space using data such as consumer behavior, to target the right audience.

Television

Network TV: TV broadcasts across the U.S. via airwaves to partnered stations.
Cable TV: TV transmission via wires instead of through the airwaves
VOD (Video-on-Demand): allowing subscribers to watch selected videos at any time.
OTT (Over-the-Top): Media streamed directly to viewers via the internet.

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Description

Test your knowledge on consumer sales promotions with this engaging quiz. Explore various aspects including discounts, loyalty programs, trial offers, and their impact on brand promotion. See how well you understand the goals and characteristics of different promotional strategies.