Managing Advertising and Sales Promotions
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Questions and Answers

What is the primary purpose of effective marketing communication?

  • To reduce marketing costs
  • To engage and excite customers (correct)
  • To develop new product features
  • To hire more sales staff

Which key element is crucial in determining the marketer's strategies?

  • Sales force training
  • Target audience (correct)
  • Product pricing
  • Market research

What should marketers establish to influence brand purchase intention?

  • Sales discounts
  • Product bundling
  • Retail partnerships
  • Communications objectives (correct)

What type of strategy involves determining how to convey the message?

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

Why is it essential to evaluate advertising effectiveness?

<p>To assess the impact on customer engagement (C)</p> Signup and view all the answers

What should companies consider when deciding on their marketing communications budget?

<p>Product and market need levels (A)</p> Signup and view all the answers

Which of the following is NOT one of the eight major modes of communication?

<p>Social media marketing (A)</p> Signup and view all the answers

Which channel of communication is described as being crucial for delivering a message?

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

What is a significant advantage for small-share competitors when they focus on sales promotions?

<p>They may attract current users through effective promotions. (B)</p> Signup and view all the answers

Why do dominant market leader brands offer consumer promotions less frequently?

<p>They often focus on brand building rather than discounts. (D)</p> Signup and view all the answers

What characteristic of digital coupons is highlighted as a rapidly expanding area in sales promotions?

<p>They have higher redemption rates and less paper waste. (A)</p> Signup and view all the answers

What is one of the objectives of sponsoring events for marketers?

<p>To enhance the perception of brand image associations. (B)</p> Signup and view all the answers

How do sponsors benefit from sustained exposure during an event like the World Cup?

<p>By reinforcing brand salience through repeated exposure. (D)</p> Signup and view all the answers

Which of these is NOT a common reason for marketers to sponsor events?

<p>To target a very broad audience. (C)</p> Signup and view all the answers

What demographic does Old Spice primarily target through its sponsorship of events?

<p>Young males aged 16 to 24. (D)</p> Signup and view all the answers

What aspect of events helps in creating or strengthening brand image?

<p>Associations between the event and the brand. (B)</p> Signup and view all the answers

What is a primary task of PR professionals concerning media?

<p>Finding or creating favorable news about the company (D)</p> Signup and view all the answers

How can company executives enhance the company's image?

<p>By fielding questions from the media and giving talks (C)</p> Signup and view all the answers

What role does visual identity play for a company?

<p>It contributes to immediate public recognition (B)</p> Signup and view all the answers

What is one of the benefits of using MPR over traditional advertising?

<p>It generally costs less than direct mail and media advertising (D)</p> Signup and view all the answers

Which of the following is a common measure of MPR effectiveness?

<p>The number of exposures carried by the media (C)</p> Signup and view all the answers

How can MPR contribute to sales enthusiasm?

<p>By telling stories about new products before their launch (A)</p> Signup and view all the answers

What is a challenge regarding MPR's contribution to business performance?

<p>It often requires combining multiple promotional tools for effectiveness (D)</p> Signup and view all the answers

What type of activities can build a company's goodwill?

<p>Contributing time and money to good causes (A)</p> Signup and view all the answers

What is one main reason Toyota Tundra sponsors events like BASS fishing tournaments?

<p>To enhance its corporate image (C)</p> Signup and view all the answers

How does Visa benefit from its Olympic sponsorship?

<p>It enhances brand awareness and fosters patriotic goodwill (A)</p> Signup and view all the answers

Which of the following is a strategy used by cause-related marketing?

<p>Supporting nonprofit organizations and charities (B)</p> Signup and view all the answers

What effect did the product placements of Audi models in Iron Man 2 have on the brand?

<p>Doubled positive word of mouth following a marketing blitz (B)</p> Signup and view all the answers

What is one potential disadvantage of event sponsorship mentioned?

<p>The result of an event can be unpredictable (C)</p> Signup and view all the answers

How do companies like PLDT-Smart Philippines use sponsorship to reward key employees?

<p>Through lavish hospitality and entertainment at events (A)</p> Signup and view all the answers

What promotional strategy is used by marketers in conjunction with event sponsorship?

<p>Tying contests or sweepstakes to events (B)</p> Signup and view all the answers

What is a benefit of sponsorship mentioned in relation to emotional connections?

<p>It creates experiences and evokes positive feelings regarding the brand (C)</p> Signup and view all the answers

What is the primary goal of public relations activities?

<p>To promote or protect a company’s image or products. (D)</p> Signup and view all the answers

Which of the following is NOT one of the five main functions of public relations?

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

How does marketing public relations (MPR) differ from general public relations?

<p>MPR focuses specifically on corporate and product promotion. (A)</p> Signup and view all the answers

What is one example of how MPR has been effectively used in the past?

<p>To successfully position New York City through the 'I Love New York' campaign. (D)</p> Signup and view all the answers

Which of the following best describes the role of lobbying in public relations?

<p>Engaging government officials regarding legislation. (D)</p> Signup and view all the answers

What type of products has MPR been used to effectively build interest in?

<p>Declining commodity categories like dairy and beef. (B)</p> Signup and view all the answers

In public relations, what is the counseling function primarily concerned with?

<p>Providing insights on public issues and company image. (D)</p> Signup and view all the answers

What is the significance of product publicity in public relations?

<p>It is aimed at promoting specific products to the public. (C)</p> Signup and view all the answers

What is the primary purpose of sales promotion?

<p>To create a temporary campaign that boosts interest and demand. (D)</p> Signup and view all the answers

Why do brands in commodity-like product classes require heavy advertising?

<p>To establish and maintain a unique image. (B)</p> Signup and view all the answers

What effect do sales promotions typically have in markets with high brand similarity?

<p>They lead to a temporary sales reaction without lasting gains. (D)</p> Signup and view all the answers

What is a significant challenge brands face in cluttered markets?

<p>The need for increased advertising to stand out. (D)</p> Signup and view all the answers

Which of the following is NOT a characteristic of advertising compared to sales promotion?

<p>Advertising uses temporary incentives to generate interest. (C)</p> Signup and view all the answers

How does advertising frequency impact a brand's advertising budget?

<p>Higher frequency requires a larger budget to sustain messaging. (D)</p> Signup and view all the answers

Which of the following is an example of a sales promotion tactic?

<p>A customer loyalty program providing points for purchases. (B)</p> Signup and view all the answers

What is a potential consumer behavior change as a result of sales promotions?

<p>Increased purchasing in larger quantities or earlier. (D)</p> Signup and view all the answers

Flashcards

Target Audience

The specific group of people a marketing campaign is aimed at.

Communication Objectives

Specific goals for the marketing communication, like raising awareness or influencing purchase intentions.

Message Strategy

The core message of a marketing campaign.

Creative Strategy

How the message will be presented and communicated creatively.

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Communication Channels

The methods used to deliver the marketing message.

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Marketing Comm. Budget

The total amount allocated for communications.

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Media Mix

The combination of marketing communication methods used by a company.

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Evaluating Advertising Effectiveness

Measuring the success of a marketing campaign.

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Advertising vs. Promotion

Advertising is a permanent marketing strategy, while promotion is short-term, incentivizing quicker sales. Advertising aims to build brand loyalty, while promotion aims to stimulate immediate purchases.

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Sales Promotion

A marketing strategy using temporary campaigns to increase interest and demand for a product or service. It involves various incentives for consumers to buy.

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Advertising Frequency

Number of times an advertisement is displayed to consumers to effectively convey the brand's message, directly influencing the budget.

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Competition and Clutter

High number of competitors and significant advertising spending in a market. Even non-competitive advertisements contribute to clutter, requiring more advertising for brands to be heard.

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Product Substitutability

Brands in similar product categories (e.g., soft drinks, airlines) need ample advertising to establish a unique identity.

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Consumer Franchise Building

A sales promotion tactic involving incentives like free samples, rewards, coupons, and premiums to communicate the value proposition of the product.

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Sales Promotion Tactics

Short-term tools to stimulate sales, like price reductions, premiums, contests, and refunds. These may not always build long-term brand loyalty.

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Market Share Change

Sales promotions can temporarily shift market shares, but significant long-term gains depend on a deeper brand differentiation.

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Sales Promotion for Small Competitors

Focusing on sales promotion is a strategic advantage for small market share competitors who cannot afford large advertising campaigns or trade allowances.

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Digital Coupons

Digital coupons, which can be redeemed online or on a smartphone, are a quickly growing part of sales promotion. These coupons have higher redemption rates, lower costs, and less waste.

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Market Leader Promotions

Market leaders tend to offer promotions less often because they already have a strong customer base and don't need to win as many new customers.

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Event Sponsorship for Brand Building

Sponsoring events can help a company identify with a target market, increase brand visibility, and build or strengthen brand image associations.

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Customer Targeting for Events

Marketers can use events to target potential customers based on demographics(age), psychographics (lifestyle), and behavioral patterns as well as location.

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Event Sponsorship Objectives

Sponsoring events can help with brand recognition and targeted customer acquisition. It can solidify brand image associations.

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Brand Salience

Sponsorship helps to sustain brand exposure and reinforce brand awareness. This repetition strengthens brand recall and recognition.

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Brand Image Associations

Events can be associated with positive attributes that build a desired impression of the brand. Using events helps to create, or enhance, positive images linked to a brand.

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Tougher Image

Companies use sponsorships to build a stronger, more appealing public perception, especially when they want to connect with specific segments or regions.

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Enhanced Corporate Image

Sponsorships can improve a company's standing in the market by portraying them as likable and prestigious.

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International Brand Awareness

By sponsoring global events, businesses can increase their recognition and reach a wider international audience.

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Create Event-Related Feelings

Positive emotions associated with an event can be indirectly linked to the brand, creating a favorable association.

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Community Commitment

Companies sponsor causes and charities to demonstrate their dedication to social issues and community well-being.

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Entertain Clients & Reward Employees

Sponsorships provide opportunities to host exclusive events for key clients and employees, building relationships and goodwill.

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Merchandising & Promotional Opportunities

Sponsorships offer platforms for marketing activities like contests, in-store promotions, and direct response campaigns.

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Unpredictable Event Outcomes

Even with careful planning, the success of a sponsorship can be uncertain and influenced by factors beyond a sponsor's control.

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Public Relations (PR)

A set of activities promoting and protecting a company's image, including its products, by managing relationships with different groups.

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Key Publics

Groups of people with a vested interest in a company's success or who are directly impacted by its actions.

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Press Relations

Presenting positive news and information about a company to the media.

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Product Publicity

Marketing efforts focused on promoting specific products through media coverage and campaigns.

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Marketing Public Relations (MPR)

Using PR techniques to support a company's marketing goals, including product launches, repositioning, and influencing target groups.

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Repositioning a Product

Changing public perception of an existing product to improve its image or appeal.

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Influencing Target Groups

Using MPR to specifically reach and persuade certain groups of potential customers.

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Building Interest in a Product Category

Using MPR to revive or increase the demand for a product category by promoting its benefits.

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PR's Role in News

Public relations professionals work to create and distribute positive news about companies, products, and people to media outlets.

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Executive Speaking

Company leaders often participate in media interviews and give speeches at industry events to enhance the company's image.

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Goodwill through Community

Companies can improve their public image by giving money and volunteering time to good causes.

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Visual Identity

Creating a recognizable visual representation of a company, using elements like logos, stationery, and uniforms.

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Building Awareness

Public relations can increase public knowledge about a product, service, or idea through media coverage.

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Boosting Credibility

Public relations can enhance a company's reputation by getting positive news stories published in credible media.

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Evaluating MPR Effectiveness

Measuring the success of public relations efforts is challenging due to the use of other promotional tools, but media exposure and recall are important indicators.

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MPR's Bottom Line

Public relations can contribute to a company's financial success, but it's difficult to directly measure, unlike advertising.

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Study Notes

Managing Advertising and Sales Promotions

  • Modern marketing requires effective communication with customers, stakeholders, and the public.
  • Effective communication engages, excites, persuades, and creates memorable experiences.
  • Ideal marketing communication involves identifying the target audience, setting objectives, designing communications, selecting channels, deciding on media and establishing a budget.
  • Target audience significantly impacts communication decisions (what, how, when, and to whom).
  • Clear communication objectives are needed to build brand awareness, establish needs and influence purchase intent.
  • Message strategy, creative strategy, and message source are vital communication aspects.
  • Choosing the right communication channels, whether personal or non-personal, is crucial for success.
  • Marketing budgets should be tailored to product and market needs, with considerations for less channel support or program changes.
  • Media comprises eight key modes: advertising, sales promotion, public relations, publicity, events, direct marketing, interactive marketing, and personal selling.
  • Advertising effectiveness is measured by its impact on customer's psychological and emotional buying decisions.

Advertising

  • Advertising is a paid form of non-personal communication, frequently cost-effective.
  • Clear identification of the target market and buyer motives are essential for developing an effective advertising program.
  • The "Five Ms" of advertising decision-making are Mission, Money, Message, Media, and Measurement.
  • Mission refers to advertising objectives.
  • Money encompasses spending and allocation across different media.
  • Message outlines the ad campaign's content.
  • Media involves the choice of effective communication channels.
  • Measurement concerns assessing the advertising campaign's outcomes.

Setting Advertising Objectives

  • Advertising objectives must flow from target market, brand positioning, and overall marketing program decisions.
  • Advertising objectives are specific communication tasks, audience segments, and specific time periods.
  • Specific objectives, like stimulating more usage or establishing brand superiority, must come from clear marketing analysis.

Classifications of Advertising Objectives

  • Informative advertising builds awareness and knowledge of new products or features.
  • Persuasive advertising aims to increase liking, preference, and purchase of a product or service, sometimes through explicit comparisons.
  • Reminder advertising encourages repeat purchases.
  • Reinforcement advertising affirms the customer made the right purchase decision.

Deciding on an Advertising Budget

  • Advertising budget decisions consider product life cycle stage, market share, competition, and consumer base needs.
  • High-market-share brands may need less advertising expense.
  • Competition and clutter can justify larger budgets to be heard.
  • Frequency and product substitutability also influence budget considerations.

Sales Promotion

  • Sales promotion is a temporary strategy to increase interest or demand, often more budget-friendly than advertising.
  • Sales promotions can include samples, coupons, discounts, and other incentives.
  • Sales promotions in highly similar brands can impact short-term sales but not necessarily long-term brand loyalty.

Events and Experiences

  • Events can positively impact organizers, communities, participants, spectators, sponsors, and media.
  • Sponsoring events can align with target market, enhance brand image, express social commitment, and entertain key personnel.

Managing Integrated Marketing Communications

  • Integrated marketing communications ensure consistent brand messaging across all channels, building a recognizable brand image for existing and potential customers.

Public Relations

  • Public relations (PR) involves building relationships and managing a positive image, including dealing with potential conflicts or negative publicity.
  • PR activities cover press relations, product publicity, corporate communications, lobbying, and counseling.
  • Marketing public relations supports corporate and product promotion through various activities, like launching new products and repositioning mature products.

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Managing Advertising and Sales Promotions PDF

Description

Explore the essential elements of advertising and sales promotions. This quiz covers effective communication strategies, target audience identification, and the importance of tailored marketing budgets. Test your knowledge on crafting memorable marketing experiences and selecting the right channels for success.

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