Promotion Mix & Promotional Tools

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

Which element of the promotion mix involves direct interaction with potential customers to make sales and cultivate relationships?

  • Sales Promotion
  • Public Relations
  • Personal Selling (correct)
  • Advertising

A company aims to improve its image by addressing negative feedback. Which element of the promotion mix is best suited for this?

  • Public Relations (correct)
  • Sales Promotion
  • Direct Marketing
  • Advertising

A firm uses discounts to drive immediate sales. Which promotional tool are they employing?

  • Public Relations
  • Sales Promotion (correct)
  • Personal Selling
  • Advertising

Which promotional budgeting method relies on matching the spending of competitors?

<p>Competitive Parity Method (C)</p> Signup and view all the answers

A company sets its promotional budget by allocating a percentage of its forecasted sales. Which method is being used?

<p>Percentage Sales Method (A)</p> Signup and view all the answers

Objective-and-task method of promotional budgeting involves what?

<p>Defining specific objectives, determining necessary tasks, and estimating costs. (A)</p> Signup and view all the answers

Which promotional strategy involves directing marketing activities at channel members to encourage them to stock and promote a product?

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

A company focuses its marketing efforts on directly persuading consumers to seek out their product. Which strategy are they using?

<p>Pull Strategy (C)</p> Signup and view all the answers

Which type of advertising is most suitable for a brand that seeks to maintain customer awareness of its established product?

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

A company launches a campaign to educate consumers about a new product category. Which advertising objective is this?

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

What is the primary goal of 'press relations' within public relations?

<p>Placing newsworthy information in the media. (D)</p> Signup and view all the answers

When a company advises management on public issues, which activity of the public relations department is being utilized?

<p>Counseling (C)</p> Signup and view all the answers

Which of the following exemplifies sales promotion?

<p>Distributing free samples of a new product in a store. (C)</p> Signup and view all the answers

Which testing method involves showing consumers alternative advertisements and gathering their opinions?

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

What does measuring the sales effect involve in the context of advertising effectiveness?

<p>Comparing sales with advertising expenditures. (A)</p> Signup and view all the answers

What is the purpose of recognition tests in evaluating advertising effectiveness?

<p>To assess whether people can identify an ad they were exposed to previously (B)</p> Signup and view all the answers

What is the overall goal of Corporate Communication?

<p>To promote understanding of the organization through internal and external communications. (C)</p> Signup and view all the answers

During which stage of the buyer readiness stages does 'Liking' occur?

<p>After Knowledge but before Preference (A)</p> Signup and view all the answers

What does the affordable method of a promotional budget mean?

<p>Budgeting based on what the company believes it can manage. (D)</p> Signup and view all the answers

What is the main goal when using persuasive advertising?

<p>To generate selective demand. (A)</p> Signup and view all the answers

Flashcards

Promotion Mix

The specific blend of advertising, public relations, personal selling, sales promotion, and direct-marketing tools a company uses to communicate customer value and build relationships.

Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or service.

Personal Selling

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

Signup and view all the flashcards

Public Relations

Building good relations with the company's various publics (customers, community, etc.) by obtaining favorable publicity.

Signup and view all the flashcards

Direct Marketing

Direct connections with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.

Signup and view all the flashcards

Push Strategy

Directs marketing activities at channel members to induce them to order, carry, and promote the product.

Signup and view all the flashcards

Pull Strategy

When a company directs its marketing activities toward final consumers to induce them to buy the product.

Signup and view all the flashcards

Informative Advertising

Used to introduce a new product category or when the objective is to build primary demand.

Signup and view all the flashcards

Persuasive Advertising

Used as competition increases and a company's objective becomes building selective demand.

Signup and view all the flashcards

Reminder Advertising

Used for mature products because it keeps the consumers thinking about the product.

Signup and view all the flashcards

Press Relations

The aim is to place newsworthy information into the news media to attract attention to a person, product, or service.

Signup and view all the flashcards

Sales promotion

It consists of short-term incentives to encourage the purchase or sale of a product or service.

Signup and view all the flashcards

Product Publicity

Involves efforts to publicize specific products.

Signup and view all the flashcards

Corporate Communications

Covers internal and external communications and promotes understanding of the organization.

Signup and view all the flashcards

Lobbying

Involves dealing with legislation and regulation.

Signup and view all the flashcards

Counseling

Involves advising management about public issues and company positions and image.

Signup and view all the flashcards

Percentage Sales Method

Companies set promotion budget at a certain percentage of current forecasted sales or a percentage of the sales price.

Signup and view all the flashcards

Competitive Parity Method

Companies set their promotion budgets to match competitors.

Signup and view all the flashcards

Affordable Method

a budget is set based on what management thinks it can afford.

Signup and view all the flashcards

Study Notes

Promotion Mix

  • A promotion mix, also known as marketing communications mix, includes advertising, public relations, personal selling, sales promotion, and direct-marketing tools.
  • Companies use the promotion mix to communicate customer value and build customer relationships.

Five Major Promotional Tools

  • Advertising is any paid, non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
  • Sales Promotion involves short-term incentives to encourage the purchase or sale of a product or service.
  • Personal Selling involves personal presentation by a firm's sales force to make sales and build customer relationships.
  • Public Relations involves building good relations with a company's various publics by obtaining favorable publicity, building a good corporate image, and handling unfavorable rumors, stories, and events.
  • Direct Marketing involves direct connections with targeted consumers to obtain an immediate response and cultivate lasting relationships.

Methods for Setting the Total Promotional Budget

  • The Affordable Method sets a budget based on what management believes they can afford.
  • The Percentage of Sales Method sets the promotional budget based on a percentage of current or forecasted sales, or as a percentage of the sales price.
  • The Competitive Parity Method sets promotion budgets to match those of competitors.
  • The Objective and Task Method involves defining specific objectives, determining the tasks to achieve these, and estimating the related costs.

Promotion Mix Strategies: Push vs. Pull

  • A Push Strategy directs marketing activities at channel members to induce them to order, carry, and promote the product.
  • A Pull Strategy directs marketing activities toward final consumers to induce them to buy the product.

Promotional Tools

  • Promotional tools vary in their effects at different stages of buyer readiness.
  • Promotional tools also vary with stages of the product life cycle.

Objectives in Advertising

  • Informative Advertising is used to introduce a new product category or build primary demand.
  • Persuasive Advertising is used as competition increases and aims to build selective demand.
  • Reminder Advertising is used for mature products to keep consumers thinking about the product.

Evaluating Advertising Effectiveness

  • Measuring the communication effect can be done through direct rating, portfolio tests, and laboratory tests.
  • Direct rating involves exposing a consumer panel to alternative ads and asking them to rate the ads.
  • Portfolio tests involve asking respondents to recall ads and their content after viewing a portfolio of advertisements.
  • Laboratory tests use equipment to measure consumers' physiological reactions to an ad.

Post-testing

  • Recall tests involve asking people exposed to media to recall information about the advertisers and products they saw.
  • Recognition tests involve asking people exposed to media to identify advertisements they have seen.
  • Measuring the sales effect can be done by comparing past sales with past advertising expenditures and experiments.
  • Measuring the awareness effect is another method of post-testing.

Public Relations

  • Public relations is a process where a positive image is created through third-party endorsement.

Public Relations Department: Major Activities

  • Press Relations aims to place newsworthy information in the news media to attract attention.
  • Product Publicity involves efforts to publicize specific products.
  • Corporate Communications covers internal and external communications and promotes organizational understanding.
  • Lobbying involves dealing with legislation and regulation.
  • Counseling involves advising management on public issues, positions, and image.

Public Relations: Message and Vehicles

  • Public relations messages and vehicles include publications, events, news, speeches, public service activities, and identity media.

Sales Promotion

  • Sales promotion consists of short-term incentives to encourage purchase or sale of a product or service, such as coupons and samples.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser