MARKETING EXAM 3

L13 PROMOTION
5 Elements of the Promotion Mix: APPSS
= combination of promotional tools used to reach Target Market and fulfill organization’s goals
1. Advertising – paid Ad spots
o Same message to all audiences
2. PR – Unpaid coverage (Ex: News, Critics)
o LEAST FLEXIBLE: no control over what others are saying
o Does not identify sponsor
3. Personal Selling – Sales people
o MOST FLEXIBLE: tailored to individual buyer
4. Sales Promotion – On Sale/Discounts
o Same message to varied audiences
o Promoting SALES = pricing tactics (ex: discounting)
5. Social Media – Social Networks
o Some of the most targeted opportunities

3 Promotion Mix Choice Factors

= Factors determining which promotional tools to use
1. Market Factors
 Customer Profiles – BU3G
 Size – of market
 Routine vs Complex buying decision
1. Routine – Advertising, Sales Promotion (Ex: toothpaste)
2. Neither Routine nor Complex – Advertising, PR (Ex: Clothing)
3. Complex – Personal Selling, Print Advertising (Large amounts of information needed)
(Ex: Car)
2. Product Factors
 Complexity
 Nature of Product – what kind of product is it
 PLC
1. Intro – Ads/PR/Sales Promo
o Goal is to inform target audience of product availability
o Ads/PR inform target audience; sales promotion encourages trial
2. Growth – Ads/PR/Personal Selling (+PS, -SP)
o Reduce Sales Promo because customers need fewer incentives to purchase
o Get retailers to distribute product through Personal Selling
o Emphasize product’s competitive advantage, build brand loyalty
3. Maturity – Ads/Sales Promo/Personal Selling (-A, -PR, +SP)
o More competition  persuasive/reminder advertising
o Increase sales promotion to increase market share
4. Decline – Sales Promo/Personal selling (-A)
 o Reduce all promotion, especially ads
o Continue sales promo/personal selling to retail for distribution
3. Producer Factors
 Resources
 Control
 Push vs. Pull Strategies – WHO do we promote to?
1. Push – producer promotes to channel member; pushing product down the channel
o Often uses personal selling
o Ex: Pharmaceutical salespeople tell doctors to prescribe their medicine
2. Pull – producer promotes directly to consumer; pulling product up the channel
o use advertising or other methods to reach large audience, incl. opinion leaders
o more consumer demand  more retailers will carry product
o Ex: Pharmaceutical ads: ask your doctor today

3 Goals of Promotion & PLC

= promotion is intended to influence consumer opinion and elicit consumer response
1. Inform – Introductory Stage – goal: information/awareness (Ex: iPhone X)
a. Increase awareness, explain how product works, suggest new uses, build company image
2. Persuade – Growth – goal: brand differentiation (Ex: Apple Watch)
a. Encourage brand switching, change consumer perceptions of product attributes, influence
immediate buying decision, persuade customers to call
3. Remind – Maturity – goal: remind customers to re-purchase (Ex: insurance)
a. Remind customers that product may be needed, where to buy product, main awareness
 Focus on company’s competitive advantages (=unique aspects causing target consumers to patronize firm
over competitors)
 High quality, rapid delivery, low prices, excellent service, unique features

AIDA Concept (Promotion/Sales/Ad Funnel)

 Attention, Interest, Desire, Action
o Cognitive (thinking)  affective (feeling)  Conative (doing)
 Consumer interpretation of Promotional message (how consumer makes decision to buy product)
 Use no matter which promotion goal

L14 ADVERTISING
2 Major Types of Advertising
1. Institutional Advertising – promote company’s image (Ex: P&G Mom Ad)
a. Corporate Identity – promoting company’s image as a whole
b. Advocacy advertising – advocate for an idea or cause (Ex: Chevron supports butterflies)
2. Product Advertising – promotes specific good or service
a. Pioneering – stimulates primary demand for new product category - Intro Stage (Ex: Tablets)
b. Competitive – influences secondary demand for a brand – growth (Ex: iPad is the BEST)
i. Does not directly reference competitors by name; benefits of specific brand
 c. Comparative – compares two or more directly competing brands’ products – sluggish growth
i. Ex: iPad is better than Samsung Galaxy Tab; T-Mobile vs AT&T coverage
ii. Directly reference competitors’ names

4 Major Media Types (only when PAID)

1. Print – Newspapers, Magazines, Outdoor Media (incl. billboards)
2. Broadcast – Radio, TV
3. Digital – Internet, mobile, video games, social media
4. Experience – event sponsorship, spokespersons, paid product placement, trade shows/conventions
a. Ex: Heineken tent at Coachella

4 Media Mix Choice Factors

Media mix = combination of media to be used for promotional campaign
1. Cost – cost of reaching one member of the target market
2. Reach – number of target consumers exposed to commercial at least once during specific period
a. High reach: digital/broadcast. Low reach: Experience
3. Frequency – number of times an individual is exposed to given message during specific period
a. High frequency: digital (social media). Low reach: experience (ex: concert)
4. Selectivity – how well targeted a given media is
a. Highest selectivity: digital

4 Media Schedules
1. Continuous – ads are run non-stop throughout the period (Ex: Tide detergent)
2. Flighted – ads run heavily from time to time (every other month/two weeks) (TV ads on specific nights)
3. Pulsing – combines continuous scheduling with flighting (Ex: T-Mobile: two benefits in one campaign)
a. Heavier advertising during best sales periods (Ex: back to school sales)
4. Seasonal – ads only run when product is likely to be used (Ex: Christmas, Halloween)

L15 SALES PROMOTION AND PERSONAL SELLING

Sales Promotion
Sales Promotion = Purchase Incentive – incentive to buy product/service
 Cheaper and easier to measure than advertising
 Low value, standardized, many customers, simple product, geographically dispersed customers
 Use for Simple product
 Lower funnel of AIDA (Attention/Interest)
2 Types:
1. Consumer Sales Promotion – targets consumers
a. Coupons and rebates (=cash refund given for the purchase of a product during a specific period)
b. Premiums – extra free prod. Included in purchase (ex: Shampoo includes little conditioner)
c. Loyalty Marketing Programs – for customer retention
d. Contests & Sweepstakes – using consumers to promote product (Ex: Lays flavor competition)
e. Sampling – giving away free samples
 f. Point-of Purchase promotion – retailer places product so more customers will buy it
i. Ex: Five hour energy cardboard box at checkout stand)
2. Trade Sales Promotion – targets other channel members
a. Trade Allowances – discounts offered by producer to channel members to lower retail price
b. Push Money – producer gives channel member money to push product down the channel
c. Training – training sales people how to properly sell products
d. Free Merchandise – giving away free merchandise to the store
e. Store Demonstration – producer sends own salesperson to retailer/wholesaler
i. Ex: Vacuum seller at Costco
f. Conventions & Trade shows – making new announcements, producer connecting w/ channel
members

Personal Selling
2 Types:
1. Traditional Selling – focused on short term sales (Ex: Wolf of Wallstreet bank)
a. Focuses on closing sales; short term sales follow up
2. Relationship Selling – focused on long-term satisfaction (Ex: Nordstrom)
a. focuses on customer satisfaction; long-term sales follow up
b. emphasizes up-front investment in uncovering each customer’s needs and wants

7 Step Personal Selling Process

[Gen/Qual, Probe/Sol, Hand/Clos/Foll]
1. Generate Leads – create opportunity to get in contact with customers (Ex: Ads/sales  enter store)
a. incl getting referrals and obtaining contact information for potential clients
2. Qualify leads – finding out if customer is willing/able to pay; are they a good lead?
3. Probe Needs – find out what they’re looking for
4. Develop Solutions – Discuss options that meet their needs
5. Handle Objections – what is keeping them from buying product and find solution
6. Close the sale – ring up at register, handle paperwork
7. Follow-up – send email, phone call, etc

5 Sales Force Management Structures

Sales Force Structure: Organize sales teams based on…
1. Geographic region (LA Sales team vs NY sales team)
2. Product line (man bags vs. wallets)
3. Marketing function (function of sales people, ex: handling objections)
4. *Market or industry (sales teams targeting specific markets)
5. Individual client/account (wealthy clients)
Motivating the sales team: Recognition is the most important, not only financial means

L16 SOCIAL MEDIA

3 Types of Social Media (POEM)
Social Media = any tool/service that uses internet to facilitate conversations
1. Paid Media – content paid for by a company to be placed online
a. should serve as catalyst to drive customer engagement
2. Owned media – online content that an organization creates and controls
a. Reach beyond existing web sites to create digital touch points
3. Earned media – PR team connoting free media such as mainstream media coverage
a. Learn how to listen and respond to stakeholders

2 Trends in Consumer Influence

1. Social Commerce – e-commerce that involves interaction and user contribution of social media to
assist online buying and selling products
a. Consumers online helping each other shop
b. Amazon reviews, Yelp reviews, Check in on Facebook
2. Crowdsourcing – using consumers to develop and market products
a. Lays competition for consumers to create own chip flavors

3 Areas of Measurement (SPS)

1. Social Media Measurement – measuring specific engagement
a. Clicks, Likes, Shares from consumers
2. PR Measurement – measuring increases in PR coverage (earned media)
a. RT’s, Shares, posts by the press, opinion leaders, or influencers
3. Social Media Monitoring – measuring brand mentions by typical users
a. Hashtags, @’s, tags

4 Categories of Social Media Users

20-40% are:
 Creators – make and share online content (blogs, websites, articles, memes, videos)
 Critics – post comments, ratings, and reviews of products/services on blogs/forums
 Conversationalists – discussions (comment on posts, etc.)
 Collectors – use RSS feeds to collect information and vote for website content online (save posts,
subscribe, bookmark)