MKTG455 Exam 3: Marketing Communications and Strategy Exam

strengths of sales promotions - ans stimulates demand (in the short run) flexibility weaknesses of sales promotions - ans clutter consumers are not actually loyal to the brand promotion wars easily duplicated Waste different types of sales promotions - ans premiums , price-offs, bonus packs, games, refunds and rebates, sweepstakes and contests, continuity and tie-ins premiums - ans free with purchase mail-in or online offers in or near pack premiums self-liquidating offers (SLOs) Price-offs - ans rewards present brand users establishes repeat purchase obtaining off shelf space bonus packs - ans provides customer with the additional quantity at the regular price of one item games - ans Activities engaged in for pleasure that include rules and often competition with one or more . coca-cola bottle caps refunds and rebates - ans Offers by the manufacturer to return a portion of the product purchase price entices interest few customers actually redeem sweepstakes and contests - ans requires proof of purchase plus some activity or playing involved continuity promotion (loyalty or point programs) - ans allow customers to earn points or credit toward free or discounted merchandise Over lay program - ans combines 2 or more offers ex. discount coupom plus two for one packaging tie-in programs - ans combines complementary brands ex toothpaste plus tooth brush retailer promotions - ans ex khols cash or belk rewards objective of sales promotions - ans Short term stimulus on behavorial response Targets of sales promotions - ans consumers trade (distributors, wholesalers, retailers) company's sales force Functional rewards - ans monetary (savings) Reduced need for search and decision precieved product quality provided by a discount on superior products Hedonistic rewards - ans sense of being a wise shopper need for stimulation and variety obtaining entertainment value (sweepstakes and contests) 10 Things Sales Promotions CAN Accomplish - ans stimulate the sales force for new, improved and mature products invigorate the sale of mature products facilitate introduction of new product to the trade increase on and off shelf merch space obtain trail purchase by customers (get them to try it) neutralize competitive advertising hold on to current users by encouraging repeat purchase increase product usage by loading consumers up with product preempt competition from loading consumers Reinforce advertising Sales promotion CANNOT accomplish - ans compensate for a poorly trained sales team no long term reason to engage with the brand wont stop declining sales of general non acceptance of a brand rebate pros - ans effective at stimulating demand for a product rebates cons - ans easily copied, steals sales from the future, reduced precieved product value customers do not redeem Key feature of continuity programs - ans encourages brand loyalty benefit of direct marketing - ans highly selective audience Public Relations (PR) - ans building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events Feature articles - ans designed to get the paper's reader interested in a new product. is a detailed description of the product features for interested readers. View Model - ans visibility, information, emotional appeal, workability visability - ans does the package get the customers attention Information - ans does it communicate the benefits, use of the product Emotional appeal - ans does it make the consumer feel something Workability - ans how well does it function does it protect the contents or display the right amount of info Different kinds of billboards - ans posters bulletins digital boards specialty "showings" - ans percentage of people who see the billboard in a day usually in increments of 25 Strengths of billboards - ans broad reach high frequency geographic flexibility Low CMP (cost per thousand) based on traffic count high brand identification weakness of billboards - ans non-selectivity- only a finite number of available locations short exposure time environmental concerns In store media - ans in store radio and tv, shelf talkers, shopping cart ads, floor graphics, coupon dispensers, signage Brand lift - ans increase in the interaction with the brand Proactive PR - ans Used for product releases and introductions of new products takes and offensive position seeks opportunity and is effective because it can build credibility Reactive PR - ans Takes defensive approach. does damage control caused by outside sources prevents the market from eroding and attempts to regain lost customers must be quick and positive in response commercial rumors - ans unverified rumors -may of may not be true Conspiracy Rumors - ans involve supposed company policies or practices that are threatening or undesirable to consumers Contamination rumors - ans deal with undesirable or harmful product or store features word of mouth - ans most influential informal communication about products and services that circulates between customers complex and hard to control Buzz - ans organized effort to encourage favorable talk about a brand. get people to talk about them on their social network Viral marketing (works like a virus) - ans customer talk about a product or service via the internet law of the few, the stickness factor and the power of context are some rules Urban legend - ans crazy rumors about a brand that were never true Anti-Rumor Campaign STEP 1 - ans focus on the specific points of the rumor that need to be addressed Anti-rumor Campaign STEP 2 - ans emphasize that the conspiracy or rumor is untrue or unfair Anti-Rumor Campaign STEP 3 - ans choose the appropriate media and vehicle for the message to be delivered Anti-Rumor Campaign STEP 4 - ans Select a credible spokerperson to deliver the PR message on behalf of the company Manufacturers role on sales promotion - ans collaborate with retailers, provide the product the promotion idea and the coupons. Pay for the clearing house Retailers role on sales promotion - ans put it in the store and are trained to sell the product Consumer role on sales promotion - ans understand how the promo works and how to interact SAles force role on sales promotion - ans encourages consumers to interest trail and eventual purchase Largest use of sales promotion - ans consumer packaged goods P&G Slotting - ans money paid by the manufacturer to the retailer as a cost incurred for providing a slot or location in the retailers warehouse to accommodate the new brand is money given to the retailer to put your brand on the shelf Sampling - ans try it before you buy it The primary goal is to encourage trial ex. direct mail, online sampling, in-store sampling How are promotion ideas evaluated (pre) - ans Identify your objective (Primary is a short term spike in sales) Achieve agreement on objectives Evaluate the idea- is it unique and different? Evaluation of promotions (post) - ans Five Es Expense- what did it cost us? Efficiency- was the cost per unit moved Formula CPU=Total cost/units sold Execution- what was the ease of execution Equity enhancement- did we enhance brand image? Effectiveness- did we accomplish what we set out to do? Calculate ROI - ans Incremental sales/incremental cost Functions of Product Packaging - ans Draws attention to a product Breaks through competitive clutter Justifies price and value to the customer Signifies or represent the brand features and benefits Conveys emotion Motivates consumers brand choices