Chapter 13

Question 1

The Promotion Mix (Marketing Communication Mix):

• • Tools:
    
    • Advantages:
    • Disadvantages:
• • Tools:
    
    • Advantages:
    • Disadvantages:
• • Tools:
    
    • Advantages:
    • Disadvantages:
• • Tools:
    
    • Advantages:
    • Disadvantage:
• • Tools:
    
    • Advantages:
    • Disadvantage:

Answer 1

The Promotion Mix (Marketing Communication Mix):

• Advertising:
• Sales Promotion:
• Personal Selling:
• Direct and Digital Marketing:

Question 2

+Push vs. Pull Promotional Strategies

• *

Answer 2

Push vs. Pull Promotional Strategies

• Push Strategy: a promotion strategy that calls for using the sales force and trade promotion
  to push the product through channels. The producer promotes the product to channel members, which in turn promotes it to final consumers. (B2B)
• Pull Strategy: a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that “pulls” the product through the channel. (B2C)

Question 3

Advertising

4 important decisions must be made when developing an advertising strategy:

1.

2.
There are 4 common methods used to set the total budget for advertising:

• • Con:
• • Pros: (1)
    
    • Cons: (1)
• • *

3.

* * * *
* * ex;
* * * * * * *

4.

Answer 3

Advertising

4 important decisions must be made when developing an advertising strategy:

1. Setting Advertising Objectives: a specific communication task to be accomplished with a
specific target audience during a specific period of time. They must inform, persuade, or
remind.

• Informative advertising: used heavily when introducing a new product category. The objective is to build primary demand
• Persuasive advertising: becomes more important as competition increases. The objective is to build selective demand.
• Comparative (attack) advertising: when a company directly or indirectly compares its brand with one or more other brands.
• Reminder advertising: important for mature products; helps maintain customer relationships and keep consumers thinking about the product
• Usually, advertisings goal is to more people to immediate action.

2. Setting the Advertising Budget
There are 4 common methods used to set the total budget for advertising:

• A. Affordable Method: setting the promotion budget at the level management thinks the company can afford
  
  • Con: places promotion last among spending priorities
• B. Percentage-of-Sales Method: setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
  
  • Pros: (1) simple to use (2) helps management think about the relationships between promotion spending, selling price, and profit per unit
  • Cons: (1) wrongly views sales as cause of promotion rather than as the result (2) budget varied year to year, therefore long-term planning is difficult
• C. Competitive-Parity Method: setting the promotion budget to match competitors’ outlays.
• D. Objective-and-Task Method: developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
  
  • Can be difficult to figure out which specific task will achieve the state objectives

3. Developing Advertising Strategy

• STEP 1: Creating advertisement messages
  
  • Advertising clutter: today’s consumers, armed with an arsenal of weapons, can choose what they watch and don’t watch. Increasingly, they are choosing not to watch ads.
  • Madison & Vine: a term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages.
    
    • The aim of advertainment is to make ads so entertaining, or so useful, that people will want to watch them
    • Branded entertainment (brand integration): making the brand an inseparable part of some other form of entertainment. Examples: the hosts of Breakfast Television Montreal having a Tim Hortons mug, or a Modern Family episode when the family desperately searches for the latest iPad
  • Message Strategy
    
    • People will engage only if they believe they will benefit from doing so
    • Develop a creative concept (big idea): will bring an advertisement message strategy to life in a distinctive and memorable way
    • Advertising appeals should be meaningful, believable, and distinctive
  • Message Execution: “big” idea must turn into an actual ad execution using the following
    execution styles:
    
    • ex; Slice of life: typical, “real” people/Lifestyle/Fantasy/Mood/image/Musical
  • You can also use consumer-generated content
• STEP 2: Selecting advertising media
• There are 4 major steps:
  
  • A. Determining reach, impact, frequency, and engagement
  • B. Choosing among major media types
  • C. Selecting specified media vehicles (specific media within each general media type): TV vehicles would include Modern Family, Hockey Night in Canada etc.
  • D. Deciding on media timing (scheduling advertisements). Can be continuous, seasonal, or pulsing (scheduling ass unevenly over a given time period

4. Evaluating Advertising Effectiveness

• Measure the Return on Advertising Investment: the net return on advertising investment divided by the costs of the advertisement investment
• Measure pre and post communication effects
• Measure sales and profits effect

Question 4

Public Relations:

Perform any or all of the following functions:

Why Use PR and How

• • -Major PR tools:
    *

Answer 4

Public Relations:

Perform any or all of the following functions:

• Press relations or press agency: creating and placing newsworthy information in the news
  media to attract attention to a person, product, or service
• Product publicity: publicizing specific products
• Public affairs: building and maintaining national or local community relationships
• Lobbying: building and maintaining relationships with legislators and government officials to
  influence legislations and regulation
• Investor Relations: maintaining relationships with shareholders and other in the financial community
• Development: working with donors or members of nonprofit organizations to gain financial
  or volunteer support.

Why Use PR and How

• PR can have a strong impact on public awareness at a much lower cost than advertising can.
• -Major PR tools:
  
  • News/Speeches/Special events/Written materials/Audiovisual materials/Corporate identity materials (stationary)/WOM/Company website