Marketing 380 Test 2

Sales promotion

(1) Use of incentive techniques. (2) Creates a perception of greater brand value. (3) Among consumers, trade, business buyers. (4) Generates short-term increase in sales by: -Motivating trial use. -Encouraging larger purchases. -Stimulating repeat purchases.

disadvantages of telemarketing

-Expensive on a cost-per-contact basis -Time available to convey information and request response is limited -Calls at inconvenient times can alienate customers -Customers who sign up for the Do Not Call Registry become inaccessible to marketers

Types of Sales Promotions

Consumer-market sales promotion, Trade-market sales promotion, and Business-market sales promotion.

Missionary salesperson

Calls on accounts to monitor the satisfaction of buyers and update buyers' needs. (May provide product information after a purchase.)

leveraging

Collateral activity reinforcing the link between a brand and an event.

short term promotional display

Used for six months or less.

Support media

Used to reinforce or supplement a message being delivered via some other media vehicle

Cause related advertising

Features a firm's affiliation with a social or societal cause. Takes place as part of the cause-related marketing efforts of a firm.

mailing list

File of names and addresses that an organization might use for contacting prospective or prior customers. ----Internal lists: Organization's records of its customers, subscribers, donors, and inquirers. ----External lists: Purchased from a list compiler or rented from a list broker.

Two types of premiums

Free and self liquidating

Merchandise allowances

Free products offered as payments to the trade for setting up and maintaining displays.

Trial offers

Induce consumer trial use of a brand, and are used for expensive items. -Amazon Prime uses a trial offer strategy. -Consumer annoyance when automatically renewed if they wouldn't have renewed.

consumer-market sales promotion

Induce household consumers to purchase a firm's brand.

Follow up letter

Thanks customers for their business or reminds them of the positive features of the brand. (Reinforces and recognizes the best customers.)

digital engagement

measures such as brand mentions during and post event.

identification of vulnerabilities

recognize areas where the firm has weaknesses that can negatively affect its relationships with constituents.

press release

Vital to community building and event marketing. Often synergize well with social media.

Viral marketing

consumers marketing to consumers via the web or through personal contact, stimulated by a firm marketing its brand.

advantages of transit adverting

-Effective for repetitive message exposure -Reach large numbers of individuals in a cost-efficient manner -Allows for demographic matching of vehicle with target audience

Disadvantages of direct mail

-Expensive (relative to other IBP tools) -Mail lists can be outdated -Mail delivery dates can be unpredictable -Outplacing by email

5 key T's to generate buzz

--Talkers: People who are predisposed to talk about brands in general. --Topics: Cool story or breaking news. --Tools: Should be linkable, portable, and should travel across the Internet. --Taking part: Become a part of the conversation. --Tracking: Measure the outcomes.

advantages of directory advertising

-Act as the final link in a buying decision -Supplement awareness-building

corporate advertising

-Aims to establish a favorable attitude toward a company as a whole. -Objectives: ---Build the image of the firm. ---Boost employee morale or attract new employees. ---Communicate an organization's views. ---Position the firm's products against competition. ---Play a role in integrated brand promotion.

Point of purchase advertising material used in the retail setting to

-Attract shoppers' attention to a brand. -Convey primary brand benefits. -Highlight pricing information.

disadvantages of directory advertising

-Availability of multiple directories make this a less effective medium -Require long lead times -Do not support creative execution -Advanced technology has overpowered this medium

The evolution of direct marketing

-Broad term as e-commerce is technically direct marketing. -Interactive system of marketing. -Uses one or more advertising media to affect a measurable response and/or transaction. -At any location (can be mobile, so lines blur). -Purposes: Close the sale with a customer. Identify prospects and provide information to customers. Engage customers, seek their advice, reward them for using a brand, and foster brand loyalty.

Limitations of contests and sweepstakes

-Complex legal issues. -Game gains focus and brand becomes secondary. -Communicating a meaningful message in the context of a game is not feasible. -Risk of errors in administration. -Can create negative publicity. -May not project a prestigious image for the brand.

Contest

-Consumers compete for prizes based on skill or ability -Winners are determined by judges or based on who comes closest to a predetermined criterion for winning -Expensive to administer

advantages of telemarketing

-Contacts can be selectively targeted -Impact of a program is easy to track -Facilitates experimentation with different scripts and delivery formats -Produces very high response rates

Packaging

-Container or wrapping for a product. -Promotional benefits to the advertiser (Helps create brand awareness; Can attract attention and induce the shopper to examine the product; Create a perception of value.) -Color, design, and shape of a package affect consumer perceptions of quality, value, and image.

reasons for the growth and popularity of direct marketing

-Convenience: Help save consumer's time AND Facilitate use of credit cards for easy payments. -Popularity of digital and email. -Technological advancements: ------For marketers: Facilitate database management and interaction with customers. ------For consumers: Facilitate comparison shopping.

convergence

-Convergence of advertising and entertainment industries. -Seen with event marketing, a non-traditional EXPERIENTIAL form of media.

Risk of sales promotion

-Creating a price orientation. -Borrowing from future sales. -Risk of alienating customers. -Managerial time and expense. -Legal considerations.

Customer Relationship Management (CRM)

-Cultivating long-term relationships with customers. -Salespeople are problem solvers (Work in partnership with customers, analyze their needs and propose solutions AND Take care of your best customers!)

Customer Relationship Management (CRM)

-Cultivating long-term relationships with customers. Salespeople are problem solvers. Work in partnership with customers, analyze their needs and propose solutions. Take care of your best customers!

Reasons for the growth of sales promotions

-Demand for greater accountability. -Short-term orientation. -Consumer response to promotions. -Proliferation of brands. -Increased power of retailers. -Clutter.

advertisement and branded entertainment

-Development and support of entertainment property. -Primary objective is to feature a firm's brand to effectively connect with consumers. -Works well with sport. -Power of experience and emotional connection with consumers.

telemarketing

-Direct marketer's most invasive tool. -Not well liked by consumers. -May be better suited to social media and phone Such as 1-800-Flowers.com. -Expensive on a cost per contact basis. -Has a relatively high response rate, about 13 %. -Why? Live person-person dialogue.

Point of purchase advertising objectives

-Draw attention to a brand in the retail setting. -Maintain purchase loyalty among loyal users. -Stimulate increased usage of the brand. -Stimulate trial use by other brands' users.

Advantages of a Coupon/Coupon Code

-Facilitates giving discount to price-sensitive consumers while selling at full price to others. -Induces brand switching and repeat purchases. -Timing and distribution can be controlled by the manufacturer. -Gets regular users to trade up within a brand array. -Coupon codes are great IBP tool for e-commerce brands.

Advantages of Direct Mail

-Facilitates targeted advertising -Allows message adaptations on a household-by-household basis -Facilitates testing and experimentation -Different formats can be used -Response rate is higher than that of email direct marketing

public relations

-Fosters goodwill between a firm and its many constituent groups. -Digital media enables firms to become part of the consumer dialogue and: ----Monitor the brand buzz. ----Get the brand into the day-to-day conversations of key consumers. ----Do damage control with crisis communications (e.g., Nike and Livestrong, Chipotle). ----Companies must plan how to handle bad news. ----No company is immune.

Gift cards

-Free or for-purchase debit cards that provide the holder with a preset spending limit. -Cards are designed to be colorful and memorable.

The coordination challenge

-Functional specialists focus on their specialty. -Lose sight of what others in the organization are doing. -Competition for budget within the organization. -Leads to rivalry between departments. Lack of alignment results in poor integration.

Push strategy objectives

-Gain initial distribution and shelf placement. -Increase order size. -Encourage cooperation with consumer-market sales promotions. -Increase store traffic.

Advertising Specialties

-Have a message placed on a useful item that is given free to consumers; With no obligation to make a purchase. -Help reinforce a company or brand name with the target customer.

Two types of sampling

-In-store sampling -Door-to-door sampling -Mail sampling -On-package sampling -Mobile sampling

direct marketing today

-Includes e-commerce. -Rooted in legacy of mail-order catalogs/retailers namely JC Penney and LL Bean (also Victoria's Secret). -Still involves a DIRECT attempt to interact or create a dialogue with the customer. -May have instant sale (e.g., online buy). -May identify prospects for future contact. -May initiate consumer engagement/digital engagement.

Rebate advantages

-Increases quantity purchased by consumers. -Consumer redemption rate is low, resulting in higher revenue for the manufacturers.

product placement consideration

-Integrate the placement within the IBP campaign. -Make the placement look authentic. -Develop the right industry relationships. -Do not expect quantifiable ROI.

infomercials

-Lengthy television ad made possible by the lower cost of ad space on cable and satellite channels. -Similar to a TV show from production aspect. -Often during cheaper media slots (2 a.m.). -Relies on testimonials from satisfied users. -Trend to feature infomercial products in stores "As Seen on TV!" sections.

event sponsorship

-Marketer provides financial support to help fund an event; and in return acquires rights to display a brand name, logo, or advertisement on-site at the event. -Media impressions Leveraging -Can Measure Event Social Responsibility. -Can Measure Sponsor Spillover (if applicable). -Provide opportunities for face-to-face contact with key customers. -Consumer-event congruity -Event Social Responsibility

Disadvantages of outdoor signage and billboard adverting

-Messages need to be very brief -Riding the boards to assess locations requires heavy investment of time and money -Expensive medium -Disapproved by environmentalists

event sponsorship and social media

-Native advertising: Form of paid, earned, or owned media. -The ad experience follows the natural form and function of the user experience. -Like events that are experiential are synergistic with social media. -Social Media native ads will dominate social media ads.

disadvantages of transit advertising

-Not suitable for lengthy messages -May go unnoticed

Frequency or contingency programs

-Offer discounts or free product rewards for repeat purchase or patronage of the same brand, company, or retailer. -Ranges of industries: pizza Airlines, retail, and B2B. -Well suited for social media.

product placement

-Placing a product into the content and execution of an entertainment vehicle. -On television: Provide implicit endorsement in soap operas and reality shows. -At the movies: Reach young consumers who are less reachable via traditional. -In video games: Repetitive brand exposures in game. affect

advantages of direct marketing

-Progressed to include e-commerce, so it is growing widely with developments in telecom. -Is broadening in scope: even includes vending machines for products besides snacks etc. but makeup or personal technology. -Company communicates directly with the consumers (including via digital). -CONVENIENCE to customers who lack time; very simple to buy online/from email/social media or ordering from a catalog/website via phone.

Objectives of public relations

-Promoting goodwill. -Promoting a product or service. -Preparing internal communications. -Counteracting negative publicity. -Lobbying. -Giving advice and counsel.

Sales training program

-Provide training for retail store personnel. -Ensure factual information and persuasive themes reach consumers at the P-O-P.

cooperative advertising

-Provides money directly to retailers for featuring company's brand in local advertising. -Manufacturers set specifications for the size and content of an ad or send the template for the ad.

Advantages of outdoor signage and billboard advertising

-Provides wide exposure in specific markets -Size of a display attracts more attention -Offer around-the-clock exposure -Effective at addressing an immediate need or desire

advertisement and branded entertainment consideration

-Risk of oversaturation. -Process break downs due to lack of predictability. -Disclosure of product-placement deals advocated by consumer rights groups.

influencer marketing

-Series of personalized marketing techniques directed at individuals or groups who have the credibility and capability to drive positive word of mouth. -Professional influencer programs: ----Attempt to influence professionals. ----May require long-term commitment. ----Must instruct the influencer of the influencer's responsibility for: disclosing material connections, monitor what the influencers are saying, & follow up to address improper or questionable practices. ----Some #s note if it is influencer sponsored but FTC compliant ones are only #sponsored or #ad. ----SEE FTC ENDORSEMENT GUIDES.

Objectives for Consumer-Market Sales Promotion

-Stimulate trial purchase. -Stimulate repeat purchases. -Stimulate larger purchases. -Introduce a new brand. -Combat or disrupt competitors' strategies. -Contribute to Integrated Brand Promotion.

Media Applications in Direct Marketing-Characteristics of Infomercials

-Testimonials from satisfied users or from celebrities. -Toll-free number or Web address featured throughout the length of the program. -Speedy follow-up and same-day response. -Can be quite engaging to watch and persuasive. -There is time to persuade and showcase the product.

promotional benefits of packaging to the advertiser

-The package carries the brand name and logo. -The package can communicate value. -The package can communicate image and quality.

Disadvantages of a Coupon/Coupon Code

-Timing of redemption control. -Heavy redemption by regular brand buyers reduces a firm's profitability. -Handling, processing, and distribution incur high costs. -Misredemption practices erode profitability.

Personal selling

-Use of 1-1 communication and persuasion for the purpose of selling, traditionally done face-to-face but now includes: Chats, Video sessions, Other emerging digital ways to interact to sell. Future may be within social media and direct selling therein.

Sweepstakes

-Winners are determined purely by chance -Consumers need only to enter their names as a criterion for winning

Closing the Sale with Direct Marketing and/or Personal Selling

-can be Face-to-face communications and persuasion process. -Can be Business to Business (B2B) as well as to consumers (B2C). -Most effective with products or services that are: ---Higher priced. ---Complicated to use. ---Tailored to users' needs. ---Offer a trade-in option. ---Judged at the point-of-purchase. -Functional specialists must be employed both inside and outside an organization. -A marketing communications manager must be established.

Cinema advertising

Ads that run in movie theaters before the film and other advertising appearing off-screen within a theater.

Price off deal Advantages and Disadvantages

Advantages: -Controllable by the manufacturer. -Affects a positive price comparison against competitors. Disadvantage: -May cause inventory and pricing problems for retailers.

Off invoices allowances

Advertisers allow wholesalers and retailers to deduct a set amount from the invoice they receive for merchandise.

Incentives

Awards given to retailers for reaching targeted sales levels.

RFM analysis

Calculates the value of each customer to the organization and identifies customers that have given the most business in the past. Recency. Frequency. Monetary.

guidelines for event sponsorship

Be socially responsible. Match the brand to the event. Tightly define the target audience. Stick to a few key messages. Develop a plot line. Deliver exclusivity. Deliver relevance. Use the Internet. Plan for the before and after. Integrate with social media.

Green marketing

Corporate efforts that embrace a cause or a program in support of the environment.

Premiums and advertising specialties

Create awareness and add to the satisfaction of a transaction

media impressions

Creating a metric to judge sponsorship spending to spending in the traditional measured media.

Incorporating information from external databases into a house list, including:

Demographic data. Geo-demographic data. Psychographic data. Behavioral data.

Slotting fees

Direct cash payments made to induce food chains to stock an item.

Cost per inquiry or cost per order

Divide the number of responses to a program by that program's cost. (Help determine what works and what doesn't.)

corporate image advertising

Enhances the overall image of a firm among important constituents.

Coupon/Coupon Code

Entitles a buyer to a designated reduction in price for a product or service.

Advocacy advertising

Establishes an organization's position on important social or political issues. Meant to influence public opinion.

Door-to-door sampling

Expensive but effective if aimed at target segments in well-defined geographic areas.

Business gifts

Help build and maintain a close working relationship with suppliers

Business-market sales promotion

Help cultivate buyers in organizations or corporations who make purchase decisions.

event social responsibility

How an event gives back to the local community.

omnichannel strategy

Hybrid commerce where the consumer can have the best of both digital and in-store channels -Two-way free shipping is important.

Cross selling

Identifying existing customers and creating marketing programs for them, featuring other products. Also, finding prospects who share characteristics and interests with current customers.

POP advertising

In relation to mobile or location marketing; P-O-P offers can be sent through mobile devices. AND. In relation to trade and business markets; Encourage retailers to support one manufacturer's brand over another; P-O-P display can enhance the atmosphere of a store and make the shopping experience easier for customers.

aerial advertising

Involves airplanes pulling signs or banners, skywriting, or blimps.

Premiums

Items offered free, or at a reduced price, with the purchase of another item.

Mobile sampling

Logo-emblazoned vehicles dispense samples to consumers at various locations.

Trial offers

Lower buyer's risk of making a commitment to a brand and help attract new customers

Push money

Monetary reward offered to salespeople for featuring a marketer's brand with shoppers.

Rebate

Money-back offer requiring a buyer to mail in a form requesting the money back from the manufacturer.

Trade-market sales promotion

Motivate distributors, wholesalers, and retailers to stock and feature a firm's brand in their store.

consumer event congruity

Occurs when an event sponsor fits a consumer's image and sense of self.

Price off deals

Offers cents off merchandise at the P-O-P through specially marked packages.

Permanent long term display

P-O-P presentation for more than six months.

Marcom manager

Plans an organization's overall communications program and oversees the various functional specialists to ensure that they deliver the desired message to the customer.

In-store sampling

Popular for food products and cosmetics.

Chaos scenario

Predicted a mass exodus from the traditional broadcast media due to: -Audience fragmentation. -Consumers' desire to control their information environment. -Availability of ad-avoidance technology (pop-up blockers; Netflix type subscription models).

Sampling

Provide a consumer with an opportunity to use a brand on a trial basis with little or no risk.

frequency market programs

Provide concrete rewards to frequent customers. Elements: Database, a benefit package, and a communication strategy.

bill-back allowances

Provide retailers a monetary incentive for featuring a brand in advertising or in-store displays.

Free premium

Provides consumers with an item at no cost

Push strategy

Push a brand into the distribution channel until it reaches the consumer.

Trade show

Related products from different manufactures are displayed and demonstrated to members of trade

self-liquidating premium

Requires consumers to pay most of the cost of the item received as a premium.

On-package sampling

Samples are attached to another product package, targeted to current customers.

Mail sampling

Samples are delivered through the postal service.

System selling

Selling a set of interrelated components that fulfill all or a majority of a customer's needs in a particular area. (Emphasizes customer relationship management.)

Creative selling

Selling where customers rely heavily on the salesperson for technical information, advice, and service. (Providing services customized to the unique needs of each buyer.)

POP advertising and display options

Window and door signage. Counter/shelf unit. Floor stand and shelf talker. Mobile/banner. Cash register. Full line merchandiser. End-of-aisle display or gondola. Dump bin. Illuminated sign. Motion display. Interactive unit. Overhead merchandiser. Cart advertising and aisle directory. Retail digital signage.

Order taking

accepting orders for merchandise or scheduling services. Dealing with lucrative existing customers where the cost of generating extra revenues is low.

CAN-SPAM Act

accurate return email address, transparent nature of email content, provide opt-out options or face stiff penalties

Buzz marketing

firms marketing activities gain widespread media coverage and become a source of conversation in households, between friends, or at work.

reactive public relations strategy

focuses on problems to be solved rather than the opportunities. it requires a company to take defensive measures.

Proactive public relations strategy

guided by marketing objectives. it seeks to publicize a company and its brands. it aims to build goodwill for the brand.

Frequency programs

ideal form of promotion due to the high degree of travel associated with business professions.

Public relations audit

identifies the characteristics of a firm or the aspects of the firm's activities that are positive and newsworthy. Gives a firm information to issue public statements based on current and accurate data.

Public relations plan

identifies the objectives and activities related to the public relations communications issued by a firm; situation analysis, program objectives and program rationale, communications vehicles, and message content.

cultivating connectors

identifying and developing agents who positively tout a firms brand, thus creating a buzz.