Marketing: Ch. 16

product placement

The strategic location of products or product promotions within entertainment media content to reach the product's target market

The problem of media availability becomes more pronounced when marketers

advertise in foreign countries

consumer convenience items are promoted mainly through _______ & __________.

advertising and sales promotion

Which of the following is an advantage of product placement?

it reaches consumers while they are being entertained

A limitation or disadvantage of personal selling is

its expensive

For an organization that is introducing a new product or a line extension

making customers aware of the product is crucial to initiating the product adoption process

Shawna works as a marketer for a large company. Because Shawna loves the Economist, she makes arrangements to take out an advertisement in the next issue. However, Shawna later realizes that middle and lower-income individuals—a significantly portion of the target market for her company's product—do not read the Economist. In fact, most do not even read print magazines anymore. Shawna's campaign suffers from the use of the wrong _______.

marketing channel

To retain loyal customers, marketers

not only advertise loyalty programs but also use reinforcement advertising, which assures current users that they have made the right brand choice and tells them how to get the most satisfaction from the product

At times, a marketer's objective in using promotion is to

offset or lessen the effect of a competitor's promotional or marketing programs •Does not necessarily increase the organization's sales or market share, but it may prevent a sales or market share loss

Advertising

paid non personal communication about an organization and its products transmitted to a target audience through mass media

______________ selling is used extensively for consumer durables, such as home appliances, automobiles, and houses

personal

word of mouth communication (WOM)

personal informal exchanges of communication that customers share with one another about products, brands, and companies

promotion mixes for business products concentrate on ____________, whereas advertising plays a major role in ____________.

personal selling; promoting consumer goods

channel capacity

the limit on the volume of information a communication channel can handle effectively

Communications channel

the medium of transmission that carries coded message from the source to the receiver -Transmission media include printed words (newspapers and magazines), broadcast media (television and radio), and digital communication

The size of an organization's promotional budget affects

the number and relative intensity of promotional methods included in a promotion mix

pull policy

the promotion of a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel done primarily through advertising and sales promotion

A company's promotional objectives and policies influence

the types of promotion selected and different objectives will require different promotional mixes

Which of the following represents noise in the communication process?

the use of technical jargon the receiver doesn't understand

audience

two or more receivers

Because Samantha loves Chinese food, she was eager to check out a new Chinese restaurant in town. The restaurant had undertaken a large-scale promotional campaign, with television commercials, glossy magazine ads, large billboards, and Facebook ads. However, when she talked to two of her friends, they told her the restaurant left much to be desired. The service was terrible, and the prices were too high. Based on these recommendations, Samantha decided it was not worth it to try out the restaurant. The Chinese restaurant failed to realize the importance of _______.

word-of-mouth marketing

Disadvantages of advertising:

•Absolute dollar outlay can be high •Rarely provides rapid feedback •Often difficult to measure its effect on sales •Less persuasive than personal selling •Has a limited time exposure

The four possible elements of a promotion mix are:

•Advertising •Personal selling •Public relations •Sales promotion

Public relations uses a variety of tools:

•Annual reports •Brochures •Event sponsorships •Sponsorship of socially responsible programs •Publicity (e.g., news releases, press conferences, and feature articles)

For existing products, promotional efforts may aim to increase awareness of:

•Brands •Product features •Image-related issues (such as organizational size or socially responsive behavior) •Operational characteristics (such as store hours, locations, and credit availability)

Ways advertising is changing as consumers' mass media consumption habits are changing:

•Consumers are striving to maximize their presence and impact through digital media •Ads are being designed that cater to smaller, more personalized audiences •Traditional media like newspapers are in a decline due to a drop in readership

selective demand can be stimulated by

•Differentiating the product from competing brands in the minds of potential buyers •Increasing the number of product uses and promoting them through advertising campaigns, as well as through price discounts, free samples, coupons, consumer contests and games, and sweepstakes •Encouraging existing customers to use more of the product

•The costs of retaining customers are usually considerably lower than those of acquiring new ones and includes several techniques:

•Frequent-user programs •Special offers for existing customers

Does promotion increase prices?

•If promotion is working to stimulate demand, producing and marketing products in larger quantities can actually help reduce prices •Promotion also helps keeps prices lower by facilitating price competition

Types of Distribution

•Intensive distribution - advertising, sales promotion •Selective distribution - promotion mixes vary •Exclusive distribution - personal selling

Advantages of personal selling:

•Involves more specific communication than advertising •Has greater impact on customers •Provides immediate feedback

receiver

The individual, group, or organization that decodes a coded message

feedback

The receiver's response to a decoded message -Can be verbal and nonverbal through talking, teaching, smiling, nodding, eye movements, and other body movements and postures

decoding process

converting signs or symbols into concepts and ideas

__________ appears in promotion mixes for business and consumer products.

public relations

T/F Promotion today tends to be more deceptive than 100 years ago.

FALSE

Communication

A sharing of meaning through the transmission of information

T/F Proxemic communication involves communication through the movement of head, eyes, arms, hands, legs, or torso.

FALSE kinesic communication

tactile communication

Communicating through touching

T/F An organization may use push and pull policies simultaneously

TRUE

T/F If Mattel tells Walmart it will give them a discount if they purchase a certain amount of product, this would be an example of a push policy.

TRUE

T/F If promotion stimulates demand, it is entirely possible that it will lead to lower prices for consumers.

TRUE

T/F The stage of a product's life cycle affects decisions regarding the promotion mix

TRUE

The concept of integrated marketing communications is increasingly effective for the following reasons:

-Marketers can take advantage of more precisely targeted promotional tools, such as TV, direct mail, the internet, special-interest magazines, smartphones, mobile applications, social media, sales calls, and outdoor boards -Database marketing and marketing analytics are allowing marketers to target individual customers more precisely

Crucial elements of the target market:

1. Size •Small: promotion mix will probably emphasize personal selling, which can be very effective for reaching small numbers of people •Large: organizations rely on advertising and sales promotion, because these methods reach masses of people at a low cost per person 2. Geographic distribution •Concentrated: personal selling is more feasible •Dispersed: regional or national advertising may be more practical 3. Demographic characteristics: •Age, income, education, etc., may affect the types of promotional

3 types of interpersonal communication

1. kinesic communication 2. proxemic communication 3. tactile communication

source

A person, group, or organization with a meaning it tries to share with a receiver or an audience

viral marketing

A strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly

promotion mix

The combination of promotional tools an organization uses to promote a specific product

noise

Anything that reduces a communication's clarity and accuracy

The mayor of Lexington, Kentucky held a press conference to comment on some changes to a local ordinance and explain how it would affect the city. During the press conference, interested citizens could use Twitter to send in questions. The mayor's staff monitored the questions and selected some of them for the mayor to answer during the press conference. This can best be described as_____________________.

Integrated marketing communications

a major goal of most marketers

Maintaining long-term customer relationships

_________________ is used less frequently today than in the past.

Mass media advertising

Which of the following most likely constitutes buzz marketing?

McDonald's used chalk to draw out a giant professional-looking drawing of french fries complete with the McDonald's logo on the boardwalk of a big city.

personal selling

Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation

________________ is a form of advertising that strategically locates products or product promotions within entertainment media to reach the product's target markets.

Product Placement

Coding Process (Encoding)

Refers to converting meaning into a series of signs or symbols •When coding meaning into a message, the source must consider certain characteristics of the receiver or audience •When coding a meaning, a source needs to use signs or symbols that the receiver or audience uses to refer to the concepts the source intends to convey

Which of the following sites has likely been the most useful for marketers wanting to engage in viral marketing?

YouTube

sales promotion

an activity or material that acts as a direct inducement offering added value or incentive for the product to resellers, salespeople, or customers; Examples inclue: free samples, games, rebates, sweepstakes, contests, premiums, and coupons.

buzz marketing

an attempt to incite publicity and public excitement surrounding a product through a creative event

Marketers should consider the __________when developing a promotional mix

availability of promotional techniques

The specific communication vehicles employed and the precision with which they are used are

changing as both information technology and customer interests become increasingly dynamic

Xuxez is a sports apparel retailer that targets the teen market. It has been having trouble reaching its target audience through traditional promotion. Readership of magazines and newspapers has declined among the teen market. Research also shows that when watching television, teenagers will often switch to a different channel whenever a commercial comes on. Xuxez decides to pay to have the main characters in the popular teen series Riverdale wear its newest line of sportswear during certain episodes. It hopes to familiarize viewers with its newest brand. The type of promotional activity used is based on _______.

characteristics of the target market

A company may advertise that customers can be better served by

coming in on certain days

proxemic communication

communicating by varying the physical distance in face-to-face interactions

kinesic communication

communicating through the movement of head, eyes, arms, hands, legs, or torso

promotion

communication used to build and maintain relationships by informing and persuading one or more audiences -Many organizations spend considerable resources on promotion to build and enhance relationships with current and potential customers as well as other stakeholders -For maximum benefit, marketers strive for proper planning, implementation, coordination, and control of communications -Effective management is based on information about and feedback from customers and the marketing environment, often obtained from an organization's marketing information system

Which of the following is a major goal of integrated marketing communications (IMC) in regard to its marketing messages?

consistency

Because customers derive information and opinions from many different sources, integrated marketing communications planning also includes

informal methods of communication, such as word of mouth and independent information sources on the internet

Integrated Marketing Communications

coordination of promotion and other marketing efforts for maximum informational and persuasive impact -Produce this synergistic effect requires a marketer to employ a broad perspective -A major goal is to send a consistent message to customers -Integrated marketing communications also enable synchronization of promotion elements and can improve the efficiency and effectiveness of promotion budgets

Public relations is a broad set of communication efforts used to

create and maintain favorable relationships between an organization and its stakeholders

Xuxez is a sports apparel retailer that targets the teen market. It has been having trouble reaching its target audience through traditional promotion. Readership of magazines and newspapers has declined among the teen market. Research also shows that when watching television, teenagers will often switch to a different channel whenever a commercial comes on. Xuxez decides to pay to have the main characters in the popular teen series Riverdale wear its newest line of sportswear during certain episodes. It hopes to familiarize viewers with its newest brand. Based on the scenario, what is Xuxez's most likely objective for the promotion of its new brand?

create awareness

primary demand

demand for a product category rather than for a specific brand

selective demand

demand for a specific brand •Requires singling out attributes important to potential buyers

A combative promotional objective is used most often by

firms in extremely competitive consumer markets

In order to maintain a sustainable competitive advantage, a firm

focuses on building strong relationships with resellers

If customers stall during the evaluation stage, marketers can use certain types of promotion—such as:

free samples, coupons, test drives, or limited free-use offers, contests, and games—to encourage product trial in order to move them through the product adoption process

Janice works for a business that sells safety equipment for engineering and construction firms. She has set up a booth at a trade show. Interested representatives from different firms can talk with Janice about the products her company offers. Janice encourages each person that stops by to fill out a form with their information on it, so her company can send them more information about their products as well as promotional opportunities. Janice is using this promotional technique to _______.

identify prospects

Xuxez is a sports apparel retailer that targets the teen market. It has been having trouble reaching its target audience through traditional promotion. Readership of magazines and newspapers has declined among the teen market. Research also shows that when watching television, teenagers will often switch to a different channel whenever a commercial comes on. Xuxez decides to pay to have the main characters in the popular teen series Riverdale wear its newest line of sportswear during certain episodes. It hopes to familiarize viewers with its newest brand. Xuxez is engaging in what type of promotion?

product placement

A _________ influences the composition of the promotion mix

products price •High-priced products call for personal selling •For low-priced convenience items, marketers use advertising

Individuals and organizations use advertising to

promote goods, services, ideas, issues, and people

John is highly critical of promotion. Recently his son has asked for a new bicycle even though the old one works fine. John believes all the ads for the bicycle on YouTube have convinced his son that he must have the bike to be happy. His wife Matilda, however, knows that many of the "cool" kids in her son's class use that bike. Despite her thoughts on the matter, John is convinced that promotion is negative. John believes that _______.

promotion creates needs

push policy

promotion of a product only to the next institution down the marketing channel normally stresses personal selling

new introductory promotion

promotion that informs consumers about a new product

Molly owns a small flower shop. She has recently expanded and would like to get more customers. Her ideal form of promotion would be a television advertisement. However, she decides it costs too much for her to go that route. She decides to place a smaller ad in on Facebook at half the cost. Molly's reasons for choosing this form of promotion is based on her________________-.

promotional resources

Rick works as a marketer at Hasbro. He recently designed an online contest using social media that encouraged fans to submit their own ideas for a new toy design. Participants would submit their ideas, and consumers would vote for them on the site. Those who garnered the most votes would see their idea designed as a new toy. The winner would be rewarded by receiving 2 percent of the proceeds from sales of the toy. The campaign was so successful that Rick decided to host a special event to announce the winner. On the day of the event he invited the media to film the event. The CEO of the firm named the finalists and then called out the winner. This all occurred with much fanfare. An illustration of the proposed product with a short description was provided to reporters to publish in the paper. This campaign is an example of _______.

public relations

A component of public relations is

publicity -which is nonpersonal communication in news-story form about an organization or its products, or both •Transmitted through a mass medium at no charge

A small store on the Santa Fe plaza is open six days a week from 9 a.m. to 6 p.m. The store usually has some type of sales promotion during the weekdays but rarely offers them on Saturdays. This promotional strategy is most likely because the owner wants to _______.

reduce sales fluctuations

During peak periods, a marketer may

refrain from advertising to prevent stimulating sales to the point at which the firm cannot handle all of the demand

A business cannot operate at peak efficiency when

sales fluctuate widely (e.g., holidays and seasonal products)

Rick works as a marketer at Hasbro. He recently designed an online contest using social media that encouraged fans to submit their own ideas for a new toy design. Participants would submit their ideas, and consumers would vote for them on the site. Those who garnered the most votes would see their idea designed as a new toy. The winner would be rewarded by receiving 2 percent of the proceeds from sales of the toy. What type of promotion is this online contest?

sales promotion

What do marketers of business products use to promote products

some advertising and occasionally sales promotion

Using promotion successfully to maintain positive relationships depends on

some extent on the quantity and quality of information the organization receives

Rick works as a marketer at Hasbro. He recently designed an online contest using social media that encouraged fans to submit their own ideas for a new toy design. Participants would submit their ideas, and consumers would vote for them on the site. Those who garnered the most votes would see their idea designed as a new toy. The winner would be rewarded by receiving 2 percent of the proceeds from sales of the toy. In order to communicate the message, Rick had to convert his message into writing that represented the ideas he was trying to get across. Rick is the _______ of the message, and he is involved in _______.

source; encoding

Planters nuts released an advertisement describing the health benefits and nutritional value of different nut varieties such as cashews and peanuts. Planters' objective for this promotion is most likely to _______.

stimulate primary demand

Promotional activities are often designed to

stimulate sales during slumps

Advantages of advertising:

•Is extremely cost-efficient when it reaches a vast number of people at a low cost per person •The source repeat can the message several times •Visibility gained from advertising can enhance an organization's image

Does promotion encourage materialism?

•Marketers assert that values are instilled in the home and that promotion does not change people into materialistic consumers

Does promotion create needs?

•Promotion does not create needs, but it does capitalize on them by making consumers aware of needs they already have

Does promotion help customers without costing too much?

•Promotion informs customers about product uses, features, advantages, prices, and locations where they can buy the products

factors of selecting a promotion mix

•Promotion resources, objectives, and policies •Characteristics of the target market •Push and pull channel policies •Cost and availability of promotional methods •Characteristics of the product

promotional methods that can help an organization maintain strong relationships with resellers:

•Sharing a portion of retailers' advertising expenses for promoting the products •Providing wholesalers and retailers with special offers and buying allowances •Working with retailers in the presentation and promotion of the products

Should potentially harmful products be promoted?

•Some critics of promotion, including consumer groups and government officials, suggest that certain products should not be promoted at all •Defenders argue that, as long as it is legal to sell a product, promoting that product should be allowed

Is promotion deceptive?

•Some promotions are deceptive, but not all promotion should be condemned •Laws, government regulation, and industry self-regulation have helped decrease deceptive promotion