Promotion Principles in Marketing

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Questions and Answers

What is the primary purpose of the promotional mix?

To increase employee productivity

To create a competitive product

To inform prospective buyers and persuade them to try (correct)

To reduce production costs

Which stage of the product life cycle typically requires the most promotional effort?

Decline Stage

Growth Stage

Introduction Stage (correct)

Maturity Stage

Which characteristic is NOT relevant when assessing the target audience?

Consumer behaviors

Demographics

Psychographics

Market competition (correct)

In which stage of the buying decision process do consumers evaluate their purchase?

Postpurchase Stage Signup and view all the answers

Which of the following is NOT typically included in the advertising program development?

Designing the production process Signup and view all the answers

What type of appeal uses emotional response to provoke fear in advertisements?

Fear Appeals Signup and view all the answers

How many stages are included in the product life cycle?

Four stages Signup and view all the answers

What is a common objective of advertising during the maturity stage of a product?

To increase brand loyalty Signup and view all the answers

Which of the following is NOT a primary goal of media planning?

Increase Brand Loyalty Signup and view all the answers

What does CPM stand for in advertising?

Cost per Thousand Impressions Signup and view all the answers

Which advertising medium is noted for falling circulation and ad revenue?

Newspapers Signup and view all the answers

What is the definition of reach in advertising?

The total number of unique individuals exposed to an advertisement Signup and view all the answers

Which scheduling approach involves a continuous presence of advertisements over time?

Continuous Schedule Signup and view all the answers

Which of the following is a form of consumer-oriented sales promotion?

Coupons Signup and view all the answers

What is one key factor advertisers should consider when scheduling their advertising?

Buyer Turnover Signup and view all the answers

Which of the following best describes flighting scheduling?

Intermittent exposure with gaps of no advertising Signup and view all the answers

Which characteristic is most associated with rich media advertising?

Enhanced consumer interaction Signup and view all the answers

What type of advertising medium includes billboards and transit ads?

Outdoor Advertising Signup and view all the answers

Study Notes

Promotion Principles in Marketing

Marketing mix components include product, price, promotion, and place (distribution).
Promotion aims to inform prospective buyers, persuade them to try products, and remind them of benefits.
Elements of promotional mix: advertising (mass, paid for space/time), personal selling (customized, fees paid to salespeople), public relations (mass, no direct payment), sales promotion (mass, wide range of fees).

Strengths and Weaknesses of Promotional Elements

Advertising: Strengths: efficient for reaching many people, immediate feedback, potentially very persuasive. Weaknesses: high costs, difficult to gauge feedback effectiveness.
Personal Selling: Strengths: immediate feedback, ability to tailor message, potential for complex information delivery. Weaknesses: high cost per exposure, messages may vary between salespeople, difficult to ensure consistent messaging across all salespeople.
Public Relations: Strengths: often perceived as most credible source, effective at influencing consumer perception. Weaknesses: difficult to control media cooperation.
Sales Promotion: Strengths: effective in influencing behavior quickly, flexible approach. Weaknesses: easily abused, promotion wars a result, easily copied/duplicated by competitors.

Developing the Promotional Mix

Target Audience: Assess characteristics (consumer, business).
Product Life Cycle: Adapt promotional strategies to different stages (introduction, growth, maturity, decline). The promotional objective shifts from informing to persuading to reminding over the product life cycle.
Buying Decision Stages: Promotional activities address each stage involved in the purchase process, including prepurchase, purchase, and postpurchase.

Planning, Implementation, and Evaluation of Promotion

Planning:
- Identify target audience
- Set objectives
- Determine the promotion budget
- Select the right promotional tools
- Design the promotion
- Schedule the promotion
Implementation: Carry out the promotion. Pretesting promotion.
Evaluation: Posttest the promotion. Make necessary changes based on the evaluation.

Advertising Program Development

Identifying Target Audience: Crucial step for effective ad campaigns.
Specifying Advertising Objectives: Defining specific goals for the advertisements (e.g., increase brand awareness, drive sales).
Setting Advertising Budget: Planning the financial allocation for advertising activities.

Message Content and Types of Appeals

Message Content: Advertisements utilize informational and persuasive elements.
Types of Appeals: Fear, sex, humor are some common types of advertising appeals.

Advertising Media and Media Planning Goals

Advertising Media: Different media options exist (internet, television, radio, newspapers/magazines, outdoor).
Media Planning Goals: Maximize exposure and minimize costs. Media options differ in costs and ability to reach targeted audiences.

Different Media and Advertising Alternatives (Advantages & Disadvantages)

Television: Reaches a mass audience, but is costly.
Radio: Low cost, but limited reach and limited visual element.
Magazines: High-quality visuals, long lifespan, but relatively slow to deploy and high cost.
Newspapers: Excellent local coverage, low cost, but poor color quality, short lifespan.
Yellow Pages: Excellent coverage of local markets; but outdated.
Internet: Rich media capabilities, flexible approach but effectiveness is uncertain.
Outdoor (Billboards): Low cost, high visibility, local market focus, opportunities for repeat exposures but messages limited to simple slogans. Advertising effectiveness can be affected.

Sales Promotion

Consumer-Oriented Sales Promotions: Coupons, rebates, samples, loyalty programs, and product placement. Aims to stimulate demand and encourage repeat purchases.
Coupons: Encourage demand, good for retailer support but may encourage delayed purchases.
Rebates: Effective at stimulating demand, but easily copied, potentially reducing perceived product value.
Samples: Encourages new product trial, low risk for consumers but high cost for businesses.
Loyalty Programs: Encourage repeat purchases, but high cost for businesses.
Product Placement: Introduces products in non-commercial settings, favorable reactions for some but low control in presentation.

Factors to Consider During Advertising Scheduling

Buyer Turnover: Key factor determining frequency of ad campaigns.
Purchase Frequency: Important for determining repetition rate of advertisement.
Forgetting Rate: Factors in design for advertisement design.

Approaches in Advertising Scheduling

Continuous (Steady) Schedule: Consistent advertising throughout the advertising duration.
Flighting (Intermittent) Schedule: Advertising in specific periods, with gaps in between.
Pulse (Burst) Schedule: A concentrated advertising effort over a specific period.

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Description

This quiz explores the fundamental principles of promotion in marketing, focusing on the marketing mix components including product, price, promotion, and place. It examines the strengths and weaknesses of various promotional elements such as advertising, personal selling, and public relations.