Week 5
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Which of the following is the MOST significant ethical concern associated with email marketing?

  • The potential for generating unwanted email, or spam. (correct)
  • The difficulty in tracking the effectiveness of email campaigns.
  • The cost of sending emails to a large customer base.
  • The requirement to obtain explicit consent for every email sent.

Sales promotions are designed to build long-term brand equity rather than stimulate immediate action.

False (B)

What is 'permission marketing', and how does it address ethical concerns in direct marketing?

Permission marketing involves giving recipients a choice to opt in or out of receiving marketing communications. This helps address concerns by ensuring that individuals only receive messages they have agreed to, reducing the likelihood of unwanted communication.

Unlike advertising, sales promotions offer consumers something more ______ in return for taking action.

<p>tangible</p> Signup and view all the answers

Match the following direct marketing methods with their primary ethical challenges:

<p>Direct Mail = Environmental impact Telemarketing = Fraudulent behavior Internet Direct Marketing = Spam</p> Signup and view all the answers

Which of the following best describes the primary goal of a public communication campaign?

<p>To change public opinion and discourage harmful behaviors. (A)</p> Signup and view all the answers

Effective crisis plans are primarily designed to eliminate the possibility of any crisis from occurring.

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

What is strategic philanthropy sometimes called?

<p>Fund-raising</p> Signup and view all the answers

________ media refers to channels that are owned and controlled by the sponsoring organization.

<p>Owned</p> Signup and view all the answers

Match the type of media with its description:

<p>Paid media = The sponsoring organization pays for media and controls how and when the message is delivered. Owned media = Channels owned and controlled by the sponsoring organization. Earned media = Consumers and mass media control mentions and comments about the brand; the most credible media option.</p> Signup and view all the answers

What is a key characteristic of Direct-Response Communication (DRC)?

<p>It seeks to foster personal interaction and elicit direct responses from customers. (B)</p> Signup and view all the answers

Cause-related marketing is becoming a less prevalent practice in public relations due to declining consumer interest.

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

In Direct-Response Communication, where should the response from the prospect go?

<p>Directly back to the organization</p> Signup and view all the answers

Which of the following best describes the relationship between public relations and advertising in integrated marketing programs?

<p>Public relations and advertising target selected audiences with different but complementary messages, sharing responsibility for brand promotion. (C)</p> Signup and view all the answers

Public relations strategists have complete control over how news stories about their clients are presented in the media.

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

What is the primary goal of corporate reputation management?

<p>To strengthen stakeholder trust</p> Signup and view all the answers

A strategic communication process that builds mutually beneficial relationships between organizations and their publics is known as ______.

<p>Public Relations</p> Signup and view all the answers

Which of the following is the MOST accurate definition of 'publics' in the context of public relations?

<p>All groups with which an organization interacts, including employees, customers, and community members. (A)</p> Signup and view all the answers

Match the following components to the stage of the Public Relations plan in which they fall:

<p>Situation Analysis = IMC plan review Objectives = Behavioral goals Message = Creative Strategy Tactics = Delivery (publicity, advertising, sponsorship, etc.)</p> Signup and view all the answers

What is the MOST significant difference between public relations and advertising regarding message control?

<p>Advertising allows for complete control over the message, while public relations relies on media interpretation. (A)</p> Signup and view all the answers

What is the best description of stakeholders?

<p>People who have a stake in a company or organization. (C)</p> Signup and view all the answers

A company is introducing a new artisanal ice cream with unique flavor combinations. Considering the characteristics that make sampling effective, which of the following scenarios would MOST justify using a sampling promotion?

<p>The company can produce and distribute small samples at a low cost. (A)</p> Signup and view all the answers

Price-off discounts are generally ineffective at attracting customers from higher quality and price brands.

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

What is a primary risk associated with using price-off discounts repeatedly over an extended period?

<p>erosion of brand equity</p> Signup and view all the answers

Unlike standard discounts, __________ ensure that the consumer, rather than the retailer, receives the intended price reduction.

<p>rebates</p> Signup and view all the answers

Match the promotion type with its primary characteristic:

<p>Sampling = Best suited when the product has distinct advantages and the concept is difficult to communicate through advertising alone. Price-off discounts = Effective for rewarding current users and attracting switchers, especially from lower-priced brands. Rebates = Help ensure consumers receive the intended deal directly, avoiding retailer intervention. Loyalty programs = Designed to increase repeat business and improve customer retention.</p> Signup and view all the answers

Which promotion type is MOST aligned with creating both excitement for consumers and trade audiences?

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

Promotions that offer utilitarian, economic benefits are considered more affective or symbolic than others.

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

What must an event do in event marketing to succeed?

<p>match the brand to the target market's lifestyle</p> Signup and view all the answers

Flashcards

Public Relations

A strategic communication process fostering mutually beneficial relationships between organizations and their various groups.

Publics

Groups with which an organization interacts, including employees, customers, and shareholders.

Stakeholders

Individuals or groups with an interest in a company's performance or activities.

Situation Analysis (in PR)

An assessment of current public attitudes toward a firm.

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Public Opinion

People's beliefs based on their perceptions or evaluations of events, people, or institutions.

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Opinion Leaders

Influential individuals who shape the opinions of others.

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Reputation

Goodwill, trust, and integrity that contribute to a company's overall image.

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Corporate Reputation Management

Focuses on an organization’s image and reputation. The goal is strengthening stakeholder trust.

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Fulfillment

Ensuring the product reaches the customer quickly after they respond to the offer

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Permission Marketing

Marketing where recipients choose to receive messages.

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Sales Promotion

Activities that create excitement for a limited time to boost trial, demand, or availability.

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Advertising

Builds brand equity over time by establishing a consistent image.

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Sales Promotions Offer

Gives consumers something tangible for taking action.

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Corporate Social Responsibility (CSR)

Good works done in the community and environment.

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Crisis Management

Anticipating and planning for disasters from a media perspective, involving stakeholders.

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Public Communication Campaigns

Efforts intended to change public opinion and discourage harmful behaviors.

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Fund-raising

Raising money by collecting donations, often used by nonprofits.

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Cause-Related Marketing

Companies link with charities as contributing sponsors; a popular PR form.

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Paid Media

The sponsoring organization pays for media and controls message delivery.

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Owned Media

Channels owned and controlled by the sponsoring organization (e.g., website, blogs).

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Earned Media

Consumers and mass media control mentions and comments about the brand; the most credible media.

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Sampling

Giving free product samples to consumers.

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Price-Off Discounts

Temporary reductions in price, offered by retailers or manufacturers.

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Rebates

Refunds offered after purchase, often requiring mail-in forms.

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Matching Hypothesis (Promotions)

Aligning promotion types with product attributes.

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Multiplatform Promotions

Promotions that integrate advertising, PR, and promotional activities.

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Sponsorships

Supporting an event, organization, or cause financially or with resources.

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Event Marketing

Linking a brand to an event that matches target market lifestyles

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Loyalty Programs

Programs designed to increase repeat business and customer retention.

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Study Notes

Public Relations Definition

  • It's a strategic communication process that builds mutually beneficial relationships between organizations and their publics

Publics vs Stakeholders

  • Publics include all groups with which an organization interacts, like employees and local customers
  • Stakeholders are those with a stake in the company or organization

Public relations plan steps

  • Situation Analysis: Involves an IMC plan review and current assessment of public attitudes toward the firm
  • Determining relevant target audiences.
  • Set Objectives: Establish behavioral or communication goals
  • Strategy development.
  • Crafting the message: Includes both creative strategy and delivery via publicity, advertising and sponsorships
  • Tactics: Specific actions to execute the strategy

Target Audiences

  • Internal or Associated:
    • Stockholders and Investors
    • Customers and Clients
    • Employees of the Firm
    • Vendors and Suppliers
  • External or Independent
  • Community Members
  • Educators
  • Government
  • The Media
  • Civic and Business Organizations

Advantages of Public Relations

  • Enhanced credibility
  • Image building
  • Selectivity in targeting
  • Opportunity for public opinion shaping
  • Cost savings compared to advertising
  • Avoidance of clutter

Comparing Public Relations and Advertising: Control

  • Public relations strategists are at the mercy of media gatekeepers regarding news stories
  • There's no guarantee a story will run, and it can be rewritten or reorganized
  • Advertising runs as approved by the client

Aspects of Public Relations

  • Corporate reputation management focuses on an organization's image and reputation to strengthen trust
  • Corporate Social Responsibility: Good works in the community and environment
  • Crisis management: Anticipating and planning for disasters from a media perspective
  • Public communication campaigns aim to change public opinion and discourage harmful behaviors

Fund-raising

  • It's raising money by collecting donations
  • Nonprofits like museums and Red Cross use it to reach potential donors
  • Fund-raising is also known as strategic philanthropy

Common Public Relations Tools

  • Paid media: Where the sponsoring organization pays for and controls when the message is delivered
  • Owned media: Channels owned and controlled by the organization, such as websites, blogs, or sponsored events
  • Earned media: Consumers and mass media control mentions and comments about the brand
  • Advertising: Used to create corporate visibility, strengthen relationships with various stakeholder audiences

Corporate Advertising

  • Promotes the organization rather than a specific product
  • Includes image advertising, event sponsorship and advocacy advertising
  • Also includes cause-related marketing, in which companies link with charities as sponsors
  • Corporate Advertising Strength: To enhance the positioning of the firm
  • Corporate Advertising Limitations: Questionable effectiveness

News Media Tactics

  • The are used to help with Public Relations
  • They consist of news stories that appear in the media
  • They are particularly useful for new product launches
  • Publicity Tools include press releases, interviews, internet, and community involvement

Publicity Strengths and Limitations

  • Strengths include high credibility, perceived endorsement, high exposure, potential, and significant word of mouth
  • Limitations include timing issues, potential negativity, and concerns over accuracy

Direct-Response Communication

  • Direct-Response Communication (DRC) fosters personal interaction between an organization and its customers
  • DRC Involves a multi-channel business practice using media for direct customer interaction
  • The tools of DRC are catalogs, direct mail, telemarketing, direct-response ads, internet, and social media

Direct-Response Communication Key Elements

  • Communication is sent directly to a prospect
  • Responses go directly back to the organization

Direct Mail Issues

  • Critics point out direct mail's environmental impact

Telemarketing Issues

  • Fraudulent behavior has tarnished telemarketing's image

Internet Direct Marketing Issues

  • Email marketing faces criticism for unwanted emails = SPAM
  • Permission marketing offers recipients the choice to opt in or out

Importance of Promotion

  • It aims at fun, creative ideas used to spur action
  • Promotions engage customers and prospects and encourage action
  • Activities and communication programs that build excitement in the market
  • Used to build demand or stimulate action
  • Used to create excitement in public relations programs

Consumer Sales Promotion Objectives

  • Increase consumption of am established brand
  • To obtain trial and purchase.
  • Enhance the IMC efforts and build brand equity
  • To defend or maintain current customers

Consumer Oriented promotion activities

  • Samples provide a trial basis
  • Coupons provide monetary incentive
  • Premiums are extra incentive
  • Contests/sweepstakes encourage engagement
  • Refunds/rebates encourage long term saving
  • Bonus Packages provide customer additional savings
  • Price off deals lowers the price at time of purchase
  • Frequency programs generate repeat customers
  • Event Marketing provides social engagement with customer

When Sampling Should Be Used

  • Brand excels with superiority/distinct advantage
  • Hard selling points through advertising alone
  • Hednoic or experiental products
  • Quick purchasing cycle
  • Able to generate customer trial
  • Low cost to produce sample

Problems with Sampling

  • Expensive
  • Mishandling or poor distribution
  • Reaching the wrong customers that has very little intention to purchase
  • Consumers unwilling to justify expense

Coupons impact and customer behavior

  • Over 83% of Canadians coupon
  • Over half claim coupons influences decision

Limitations

  • Only useful for customers who need coupon
  • Mostly old loyal customers use coupon
  • Decreasing the potential client redemption

Rebates

  • These solve standard discount issues
  • Help people get choice at point of sale, but fail to redeem them
  • For price sensitive consumers
  • Ensure customer gets deal rather than retail store pocket it (scam)

Contests versus Sweepstakes

  • Contests competition- Prizes and money basis winner gets all
  • Sweeps Stake random lottery- No proof or purchase

Promotional techniques

  • Some are utilitarian, offering economic benefits
  • Other affective or symbolic, offering fun experiences

Multiplatform Promotions

  • Promotions that blur of advertising, promotion and public relations

SponsorSimps

  • Supporting event, marketing and charities
  • Financially or supply wise
  • High Excitement for sales
  • Cost is high

Event Marketing

  • Marketers linking brands to promotions
  • Sampling, coupons, and incentives

Continuity/ Frequency programs

  • Increasing customer retention and repeat purchase rates
  • Customer retentions
  • Brand loyalty

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