AICE Business Chapter 19
What is branding and brand extension?
Branding- Strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about a product. Brand extension- Using the brand name to market another product to create value
What factors should media consider when choosing advertisements?
Cost, size of audience, legal constraints, target audience, and other factors of the marketing mix
How has internet marketing impacted what companies do to promote their products?
Good: - Pop up ads - Accessibility - Dynamic pricing - Lower fixed costs Bad: - Some countries/people lack internet access - Product returns could increase
What is sponsorship and what are some advantages and disadvantages?
Payment by a company to the organizers of an event or team/individual so the company name becomes associated. Advantages: - Good PR and exposure Disadvantages: - Hard to measure effectiveness
Why are place decisions an important part of the marketing mix? Explain channels of distribution.
Place decisions affect channels of distribution. Channels of distribution refer to the chain of intermediaries the product passes through to eventually end up with a consumer
What is PR? What is the purpose of PR?
Public relations ; uses free publicity provided by newspapers, tv, and other media outlets to communicate with and achieve understanding by the public
What is the promotional mix?
The combination of promotional techniques that a firm uses to sell a product
What is the difference between above the line and below the line production?
Above the line- Promotion that's undertaken by a business by paying for communication with consumers Below the line- Promotion that's not a directly paid for mean of communication, but is based on short term incentives to purchase
What are some advantages and disadvantages of personal selling?
Advantages: - Sales success rates are often high - Long term relationships Disadvantages: - Expensive - Customers feel pressured into buying
What is sales promotion? Give 3 examples.
Incentives such as special offers or deals directed at consumers or retailers to achieve short-term sales increases and repeat purchases by consumers. Examples- Price deals, loyalty programs, and money-off coupons
What are the two types of advertising classifications? Explain.
Informative provides information about a product ; applies more specifically to a product in the introductory stage in the business cycle. Persuasive aims to create a perceived image of a brand or product
What are the different types of promotions that will occur during the product life cycle?
Introduction- Incentives to try the product Growth- Incentives to repeat purchases Maturity- Incentives for loyalty and continuity Decline- Little to no promotion
