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?

<p>It allows consumers to use a brand on a trial basis with minimal risk (A)</p> Signup and view all the answers

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

<p>Premiums (D)</p> Signup and view all the answers

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

<p>To provide consumers a risk-free opportunity to try expensive products (B)</p> Signup and view all the answers

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

<p>Rebates (D)</p> Signup and view all the answers

What is the primary aim of sales promotions?

<p>To boost sales quickly using incentives. (C)</p> Signup and view all the answers

What characterizes price-off deals in consumer promotions?

<p>They consist of temporary discounts or reductions in retail price (A)</p> Signup and view all the answers

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

<p>Point-of-Purchase displays (B)</p> Signup and view all the answers

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

<p>The ability to measure results effectively. (B)</p> Signup and view all the answers

Which promotional strategy rewards customers for their continued patronage?

<p>Loyalty programs (A)</p> Signup and view all the answers

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

<p>They are always looking for value and discounts. (C)</p> Signup and view all the answers

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

<p>Overabundance of advertisements leading to consumer fatigue. (A)</p> Signup and view all the answers

What distinguishes trade promotions from consumer promotions?

<p>Trade promotions provide incentives for retailers or salespeople. (D)</p> Signup and view all the answers

What strategy do companies increasingly implement to engage consumers?

<p>Sales promotions over traditional advertising. (A)</p> Signup and view all the answers

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

<p>Television advertising (A)</p> Signup and view all the answers

What does the term 'media vehicle' refer to?

<p>A specific option within a media class (A)</p> Signup and view all the answers

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

<p>It helps generate conversations among consumers. (A)</p> Signup and view all the answers

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

<p>The right team is essential. (C)</p> Signup and view all the answers

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

<p>To send ads to regions likely to respond (A)</p> Signup and view all the answers

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

<p>Reach (B)</p> Signup and view all the answers

What characterizes a reactive public relations strategy?

<p>Addressing negative publicity from external events. (C)</p> Signup and view all the answers

What is continuity in media planning?

<p>The scheduling of media over time (A)</p> Signup and view all the answers

Which statement regarding micro-influencers is correct?

<p>They are more trusted than macro-influencers. (C)</p> Signup and view all the answers

What is flighting in ad scheduling?

<p>Heavily running ads for a short period, then stopping entirely (C)</p> Signup and view all the answers

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

<p>They apologized and engaged with affected groups. (A)</p> Signup and view all the answers

What does 'share of voice' assess in advertising?

<p>Ad spending comparison among competitors (A)</p> Signup and view all the answers

Effective frequency measures what aspect of advertising?

<p>The minimum number of times an ad needs to be seen for impact (D)</p> Signup and view all the answers

What do slotting fees refer to?

<p>Payments to stores for shelf space. (A)</p> Signup and view all the answers

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

<p>To attract shoppers' attention in retail environments. (A)</p> Signup and view all the answers

What is one objective of public relations?

<p>Promoting goodwill. (C)</p> Signup and view all the answers

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

<p>Company Newsletter. (A)</p> Signup and view all the answers

What does lobbying in public relations typically involve?

<p>Dealing with government officials and legislation. (C)</p> Signup and view all the answers

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

<p>They limit control over how media use or edit the content. (B)</p> Signup and view all the answers

What is a proactive PR strategy?

<p>Implementing a comprehensive PR program. (D)</p> Signup and view all the answers

What role does credible news sources play in publicity?

<p>They enhance the credibility of the information shared. (A)</p> Signup and view all the answers

How is the share of voice defined?

<p>One brand's advertising expenditures in a medium divided by total product category advertising expenditures in that medium. (A)</p> Signup and view all the answers

What is the formula for calculating CPM?

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

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

<p>Consumers actively seek out digital media, giving them more control. (D)</p> Signup and view all the answers

What is the primary objective of media buying?

<p>Reserving ad slots in various media outlets based on a predefined schedule. (C)</p> Signup and view all the answers

What is programmatic media buying?

<p>Automatically buying ads using data to target specific audiences. (D)</p> Signup and view all the answers

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

<p>It is responsible for purchasing media space for all client campaigns. (C)</p> Signup and view all the answers

Which statement reflects the current state of traditional media?

<p>Traditional media is evolving and integrating with digital platforms. (C)</p> Signup and view all the answers

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

<p>Print TV (A)</p> Signup and view all the answers

Flashcards

Measured Media

Advertising methods that can be measured and tracked, like TV commercials or magazine ads. "Above-the-line" is often used to describe these types of media.

Unmeasured Media

Advertising methods that are harder to quantify or track, such as in-store displays or events. "Below-the-line" is often used to describe these types of media.

Media Plan

A detailed plan that outlines how advertising will be used to reach the target audience. This involves choosing the right media channels, scheduling ad placements, and setting budgets.

Reach

The percentage of the target audience reached by a particular advertisement. In simpler terms, it's the percentage of people who see your ad at least once

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Frequency

The average number of times an individual is exposed to an advertisement. This helps estimate the impact of the advertising campaign.

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Effective Reach

The percentage of your audience that's exposed to your ads enough times for it to make an impact. It considers how many exposures are ideal to affect purchasing decisions.

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Effective Frequency

The number of times someone needs to see your ad before it has a positive effect. It's about how many exposures are necessary for the message to stick.

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Share of Voice

A measure of how much an advertiser spends in advertising compared to their competitors in the same market. It helps determine the brand's presence and competitive leverage.

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Cost Per Thousand (CPM)

A measure of how effectively a media channel reaches the target audience. It's calculated by dividing the cost of the media buy by the total audience size and multiplying by 1000.

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Pull Media

A type of media where the consumer actively seeks out the content, like watching a YouTube video.

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Push Media

A type of media where content is pushed to the consumer, like a TV commercial.

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Media Buying

The process of reserving ad space in different media channels according to a schedule.

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Programmatic Media Buying

A system that automatically purchases ad space based on data about consumer behavior.

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Agency of Record

The main advertising agency responsible for handling all media buying for a company.

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Network TV

Television broadcasts that are transmitted over airwaves to affiliated stations across the US.

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Cable TV

Television channels delivered to subscribers via cable wires.

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Sales promotions

Advertising strategies that aim to boost sales quickly by offering incentives like discounts, free gifts, or contests.

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Consumer promotions

Incentives used to encourage customers to buy a product or service immediately, often with a limited time span.

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Trade promotions

Incentives offered to retailers or wholesalers to promote a product or service.

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B2B Sales Promotions

Promotional strategies specifically targeted at businesses, including trade shows, incentives, or loyalty programs.

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E-commerce

A marketing strategy where companies use online platforms to promote and sell products directly to consumers.

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Mobile marketing

A form of direct marketing that uses mobile devices to reach consumers, often through text messages, apps, or location-based ads.

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Advergaming

A type of promotion where brands integrate their products or messages into video games.

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Contests and Sweepstakes

Promotions that involve customers entering contests or sweepstakes, typically with a chance to win prizes.

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Slotting Fees

Payments made to stores to secure shelf space for a product.

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Bill-Back Allowances

Financial incentives provided to retailers for featuring a brand in their advertisements or displays.

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Off-Invoice Allowances

Discounts offered to retailers on purchased merchandise.

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Point-of-Purchase Advertising

Marketing materials displayed in retail settings to capture shoppers' attention.

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Public Relations

The practice of managing a company's public image and building relationships with stakeholders.

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Internal Communications

Sharing news and information with internal stakeholders, like employees, to improve communication and transparency.

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Tools of PR

Press releases, interviews, and sponsored events are some of the tools used in public relations.

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Proactive PR Strategy

A strategic approach to PR that involves proactively managing a company's public image and anticipating potential issues.

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Influencer Marketing

Using individuals with a strong online presence to promote a brand. These influencers can be experts, celebrities, or everyday people.

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Paid Influence Programs

A type of influencer marketing where brands pay for endorsements from a variety of individuals, often with a focus on reaching specific target audiences.

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Micro-Influencers

Influencers that are everyday people with a smaller following but higher credibility due to their perceived authenticity and expertise.

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Building Trust with Professional Influencers

Maintaining long-term relationships with influential figures to build trust, promote a brand, and generate authentic endorsements.

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Stimulate Trial Purchase

These promotions aim to entice customers to try a new product or service for the first time. They typically involve discounts or rebates to reduce the risk of trying something unfamiliar.

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Stimulate Repeat Purchases

These promotions encourage customers to buy a product or service repeatedly. They often involve loyalty programs or rewards for frequent purchases.

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Stimulate Larger Purchases

These promotions aim to increase the quantity of goods purchased by a customer. The goal is to sell more products faster!

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Introduce a new brand, product, or service

These promotions focus on gaining attention and visibility for a new brand, product, or service launch. They might involve events, advertising, or special offers.

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Combat or disrupt competitors’ strategies

These promotions aim to disrupt a competitor's strategy, often by offering deep discounts or larger quantities to undercut their offerings.

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Contribute to Integrated Brand Promotion

These promotions leverage various marketing activities to create a consistent brand message, such as advertising, public relations, and sales promotions.

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Price-off deals

These promotions involve temporary price reductions on specific items, offering a direct discount to customers.

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Loyalty programs

These promotions reward consumers for frequent purchases or loyalty. They can be customized to different consumer groups and are popular in various industries.

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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 and Share of Voice

  • 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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