An individual communication reaching one customer at a time
What is Advertising as a method of promotion?
Mass communication uses a mass media, a way to communicate with a lot of people at once
What is publicity?
This can be positive or negative because there is no control because it is not paid for, "news"
What is Public relations?
Paid promotion not using advertising , example paying Dr. Phil to plug your product on his show
What is Viral Promotion?
People that share your message without control, word of mouth can be on-line
What is Sales Promotion?
Everything else, all other types of promotion, example, premiums, gifts or special offer given in exchange for the purchase, contests or sweepstakes, coupons
What is the inform goal of the promotion?
Tell people about the product or business
What is the persuade goal of the promotion?
Usually buy the product
What is the remind goal of a promotion?
Keep the brand in people's minds
What is the Economic impact of the promotion?
Shifts demand curve outward, because it makes demand higher at every price
How is the promotional mix determined?
the mix decision is whether to use advertising more or personal selling more
What is the geographic size of the market factor?
Larger geographic market = more advertising
What is the types of customer in the market factor?
for business customer use more personal selling, for consumers use more advertising
What is the number of customers in the market factors?
more customers use more advertising
What is the unit value, price, of the product factors?
The more expensive the product the more personal selling
What is the degree of customization within the Product Factors?
The more customized, the more personal selling?
What is the presale and postsale service of the product factors?
The more service the more personal selling?
What are the funds available?
Advertising is cheaper per contact even though total cost of advertising could be high
What is the push promotional strategies?
To promote to next level in distribution chain, a producer promotes to retailer
What is the Pull in the promotional strategy?
The producer promotes to the consumer to get the consumer to ask the retailer to carry the product
What is the promotional allocation?
Deciding how much money to spend on promotion
How is the percentage of sales used in promotions?
Spend some percentage of sales on promotion, logic, if sales increase so does promotional spending, means you have great control over the amount spent on promotion, drawback is no strategy
What is the Use of All available funds in the promotions?
Any money not needed for anything else is spent on promotion, this will maximize your promotional allocation, only makes sense for new products or new companies
What is the competitive parity in promotions?
Copy the competition, problem is no control.
What are the three steps of the Objective and Task of the promotion?
1. Determine the objective of the promotion, example, promote to increase brand awarness by 20%
2. Determine the task to reach the objective, example, running 20 TV ad spots would increase brand awareness by 20%
3. set cost of task to equal promotional allocation
What are the advantages and disadvantages of the objective and task?
Advantage, very logicial, strategic, no waste so called zero base budget. The Disadvantage, step two is very difficult to figure out
What is the judgemental of the promotions?
What is the direct action of a product in advertising?
Expect a quick response from the audience, immediate effect
What is the indirect action of the product in advertising?
Try to convince the audience over time to buy the product, comulative effect, use with higher risk purchases like a car.
What is the patronage form of institutional advertising?
the ad gives reasons for buying from the business, example "We're rolling back prices" ad campaign from walmart
What is the public relations of institutional advertising?
try to build goodwill by saying something good the company does, bragging
What is the public service institutional advertising?
ad itself is the benefit to the community, like Ford with the buckle up to get people to wear seatbelts, or breweries running ads, don't drink and drive
What are National Advertising?
Ad from the producer of the product
What is the Retail or Local?
Ad from the a retailer
What is Primary demand?
Also known as Pioneering advertising, it is an ad for a product not a brand like, got milk
What is Secondary Demand?
Also known as selective demand and differential advertising, it is an ad for a brand like an ad for rutter's milk
What is Cooperative advertising?
2 or more companies get together to run an ad
What is vertical cooperative advertising?
The companies are at different levels in the distribution channel, usually a producer and a retailer, like coca cola and walmart message is buy this product a this store
What is advertising allowance?
Money given to a retailer by a producer to advertise the product as being available at the store
What is horizontal cooperative advertising?
The companies are at the same level of the distribution channel, lake an ad for a shopping center paid for by the stores in the shopping center, or got milk, paid for by dairies
What are the two rate cards for newspapers?
A price list for national advertisers and another for retailers, which is cheaper
Are newspaper ads, expensive or in expensive?
How long is the lead time?
What is a free standing insert in newspapers?
Ads circulated like the supermarket ads int eh Sunday paper?
Is Television expensive or in expensive?
What do you get when you buy advertising from an advertiser?
buy ad time from NBC, ESPN, MTV, probably a national distribution
What is an advertising spot?
ad time from a local station or cable company, a local distribution
What is a clutter?
lots of ads on TV which makes it hard for your ad to stand out
What is zapping?
people watch TV program but not the ads, DVR, channel surfing, netflix, leave room
What is the lead time on television ads?
Long, several days
What is demonstration potential of television ads?
can show how the product works
what is censoring?
In the US this is done by the stations and networks
What is direct mail?
junk mail, use the mail as an ad media, best targeting potential
What is a list broker?
A business that sells mailing lists
What is the positives of radio?
Inexpensive, short lead time, can be next day
What is a drawback of radio advertising?
What are the positives of magazine advertising?
Excellent color reproduction, good targeting
What are the outdoor advertising ways?
Billboards and transit
What are the ways to advertise on the internet?
Own website and ads on other websites
What are ads on other websites?
banner ads, ad on the page of another website, and popups, ads that opens as a new window
What is a production cost of an ad?
The cost of making an ad
What are the media buying costs of an ad?
costs of the media like airtime for TV or space in a magazine, or per click for internet
What are the per exposure costs for advertising?
The cost of the media per audience member, cost per thousand, or the cost of the ad divided by the number of thousands in the audience
What is the reach of an ad?
How many people are in the audience
What is the frequency of an ad?
How often the average audience member is exposed to the ad, so a frequency of 3.7 means the average person exposed to the ad was exposed 3.7 times
What are ad agencies?
a business that creates or produces ads
What is the differential of an ad?
Unique benefit of the brand, key to successful advertising is to stress the differential, could be tangible, physical like price or organic, or could be intangible, image like a lot of fashion advertising
What is the three techniques to writing ads?
Define a formula technique for writing an ad
Predicament + Solution = happiness
Define a testimonial for writing an ad?
have an outsider talk about your product, improves credibility, types of outsiders: celebrity, experts, satisfied customer
What is a vignette technique for writing an ad
Uses a series of ads to advance a plot line
What is the POP sales promotion?
Point of Purchase, ads or promotional material at the point of purchase, in store
What is the premiums sales promotion?
Gift or special offer for customers, like a toy in a box of cereal
What is the coupon sales promotion?
Price reduction at the time of purchase, cents off coupons
What is the rebate sales promotion?
Return of part of purchase price after purchase.
What is the cost and details of cost of personal selling?
It is a high cost per customer or per contact, because it is a personal communication so there is a labor cost
What is the flexibility of personal selling?
can make the presentation specific to the prospect
What are the closes of personal selling?
Can result directly in the purchase decision?
What is the feedback in personal selling?
the prospects, potential buyer, and customers respond to the sales person
What is a driver salesperson?
Delivery is part of the job, sales person actually has the product with them, capital meats
What is the inside order taker?
Sells at their employer's place of business, in store sales people
What is an outside order taker?
Sells at their customers place, traveling sales people
What is a detail sales person?
Also known as a missionary sales person or detailer, a sales person who doesn't sell, provide information about the product and promote the product but don't actually take orders
What is the sales engineer?
A sales person who cusomizes or designs the product for the constomer
What is the creative sales person?
Demonstrates the need for the product
What is the Prospecting step of the sales process?
looking for potential customers
What is the qualifying of the sales process?
deciding how likely the prospect is to buy, based on need, ability to pay, can they afford it, and authority to buy, B2B only, make sure you are talking to the correct person
What is the approach in the sales process?
Open communication, like Hi can I help you?
What is the presentation and demonstration of the product in the sales process?
Describing the product and show the product
What is a canned presentation and demonstration?
scripted and either read or memorized, used with new sales people and sales people who want a safety net, to provide consistent information, telemarketing
What is the AIDA model?
Awareness, Interest, Desire, and Action
What to do if the competition is mentioned?
Don't say negative things about the competition because it can hurt your credibility and could lead to an escalation, you also don't know the customer's prior relationship with the competition
How do you handle objections?
best way to handle is to turn it into a question in your ind and then answer the question, avoids an argument, you can win an argument with a customer but you won't get the sale
Allowing the customer to handle the product.
by handling the product the customer can visualize ownership
What is the on secondary point technique for closing a sale?
Give the prospect two choices, either choice is a sale, prospect stops thinking about the big decision, should I buy this and instead think about your choices
What is the emotional close?
Having an ethical issue with this, uses fear to close the sale
What is the assume the order close?
Act like the decision is already made.
What is the standing room only close?
It is an ethical close, use limited quantity or limited time to force a quick decision
What is the motivation in sales management?
try to get the sales people to sell more
What is the contest motivation of sales?
Have a prize or recognition for sales person who sells the most
What is the sales quotas motivation?
set minimum amount the sales person must sell to keep their job
What is the compensation motivation of sales?
Base pay on sales like commission
What is the personality testing of recruitment?
Actual multiple choice test and the answers are supposed to indicate a personality, looking for, aggressive outgoing, money motivated, honest
What is the interviewing of the recruitment?
If the person can sell themselves they can sell the product
What is the evaluation of the recruitment?
Call report, after the sales presentation, and work plan, before the sales presentation
What is the territory structure of recruitment?
Geographic, type of product, type of customer
What is the commission compensation of recruitment?
most common pay is based on quantity sold
What is the salary compensation?
pay is set per time period like $4,000 per month
What is wage compensation?
Pay is based on hours worked.
What is combination compensation?
Should be used if job involves non-selling duties.
What is the drawing account compensation?
A commission with a guaranteed minimum called the draw