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What is the purpose of Public Relations?
• Used to generate goodwill for an organization
• Helps an organization and its publics relate to each other
• Creates free publicity
• Do something good, then tell about it (media)
What causes do consumers prefer a company to support?
• Improve public schools (52%)
• Dropout prevention (34%)
• Scholarships (28%)
• Cleanup environment (27%)
• Community health education (25%)
What do Public Relations people seek from the media?
• Public relations people seek to persuade media gatekeepers to carry stories about their companies
• This aspect of PR is called publicity and free publicity
What is the primary difference between advertising and PR?
• Public relations people are at the mercy of the media gatekeeper (to run free information)
• Advertising runs exactly as the client who paid for it has approved
What is crisis management?
• Planning and preparing for the unexpected
• Financial (cash problems – bankruptcy)
• Strategic (changes that impact the product – laws)
• Public Relations (negative publicity – internet)
What is the apology strategy in crisis management?
• If company is at fault, this is the best strategy to use – Five elements
• Expression of guilt, regret (BIG MEA CULPA)
• Recognize bad behavior, accept penalties
• Reject inappropriate behavior
• Approve right behavior and promise not to conduct bad behavior again
• Offer compensation to correct wrong
What is the proactive strategy in crisis management?
• React immediately
• Get involved in local communities
• Use the print and electronic media
What can a company do to maximize publicity for socially responsible activities?
- To maximize positive impact:
- • Identify areas where the firm can make a positive difference.
• Make sure local media are aware.
• Inform and involve employees.
• Invest in advertising and public relations to highlight the firm’s efforts.
What is concept testing?
• Aimed at content of a marketing piece.
• Focus groups (8-10 people in room with moderator)
• Concept testing instruments
• Comprehension tests (do they understand it)
• Reaction tests (what will they do as a result of it)
What is a portfolio test?
• Show respondent a folder of different ads and ask questions for recall after the person has looked at them
• Used for print ads
What is a theater test?
• A method used in testing the viewer responses of a large, randomly selected audience after being exposed to an ad
• Used for electronic (TV) ads
What are types of recall tests?
• Day-after recall (DAR)
• Unaided recall (no mention of brand)
• Aided recall (prompted with mention of brand)
What is direct marketing?
• Advertisers approach consumers directly with products or services without use of intermediary or via other media
• For products with very well targeted markets, traditional media may not always be the best, and definitely not the most economical
What are the two key parts in the success of a direct marketing campaign?
• The right list
• The right message
• Approximately 30% of names on a list will be obsolete in a year
What are the various lists used in direct mailing?
• House list – (keeping list of own customers, the crown jewel of lists)
• Response list – (may have responded to an ad or mailing – have expressed an interest)
• Compiled list – (bought from a list broker or publication)
What are the advantages of catalogs used in mailings?
• Viewed as low-pressure sales tactics.
• Catalogs saved for a longer period of time.
• Catalogs often passed along to others or viewed by others.
• Key is the use of enhanced database and targeting of catalogs.
What are the goals of direct response ads?
Goal is to move the person to action
What is a coupon?
• Price reduction to a consumer (cuts revenue to company)
• 80% are distributed by manufacturer
• Can lead to abuses like counterfeiting or mistakes by store employees
• 64% are willing to switch brands with coupons
• Commonly distributed via FSI (Free Standing Inserts)
• Most effective when they have a high face value
What are the different types of coupons?
• Instant redemption coupon – (most common - consumer redeems it when making the purchase)
• Bounce-back coupon – (included in package to encourage repeat purchases)
• Scanned-delivered – (used at cash register when checking out)
• Cross-ruffing – (place coupon for one product on another product used with it)
• Response offer – (consumer makes request for coupon)
What is a refund or rebate?
• Cash award given to consumers after they purchase a product
• Returns an amount of money, or could be a coupon to encourage more purchases
~ Careful not to make it a standard or customers will always wait for the rebate before buying
What is sampling?
Allowing the consumer to try the product or service
What is the difference between a contest and sweepstakes?
• Create excitement by promising something for nothing
• Contests based on skill or ability
• Sweepstakes based on luck
What is a premium?
• Tangible reward for a particular act
• Work by adding value to the product
• Store premiums
• In-pack premiums
• On-pack premiums
• Container premiums
• Self-liquidating (consumer pays some of cost)
What is a specialty advertisement?
• Presents the brand’s name on something that is given away as a reminder
• Work better when related to product, like this shoe bag for exercise company
What are POP’s?
- Point-of-purchase (POP) ads
- • Display ads located in stores, usually at the end of an aisle
• Works best for impulse items
• Can have effective influence on consumer decisions
What are trade contests?
• Designed to reward those that sell the most product (within time frame)
• Could be between stores, salespeople, brokers, wholesalers, agents (channels of distribution)
• Used to achieve sales targets.
• Funds known as “spiff money.”
• Rewards can be prizes or cash.
• Can be designed for various channel members.
• Some organizations do not allow trade contests because of possible conflict of interests.
What are slotting fees?
• Money paid to retailers to stock a new product
• Retailers will give product prime shelf space
• Particularly the case with supermarkets
• It’s possible for supermarket to make more money on slotting fee than on sales of product
• New products involve risk, so this system offers some compensation for failures
• System favors large companies with deep pockets
What are push and pull strategies?
• Pull strategy – using a consumer promotion to encourage buyers to visit stores and buy, even ask for product, so a coupon or other incentive is used
• Push strategy – aimed at the wholesale or retail stores – run a promotion to the seller, such as in store sales people, so they will “push” product to consumers
What is coop advertising?
• Manufacturer reimburses retailer for a percentage of advertising costs for promoting the manufacturer’s product
• Mfg. Must approve ad
• Usually tied to sales
What are trade shows?
When companies in the same industry gather to present and sell merchandise and demonstrate products
What is a sponsorship?
• Sponsorships are lending marketing support to associate the company name or product to support an event
• Event marketing is building a program around a sponsored event
Explain ambush marketing?
Promotions used at events by companies that are not official sponsors
What is co-branding?
Two companies work together to offer a product
What is licensing?
Giving another company right to use brand or trademarked products.
What would be considered public opinion?
• What a group of people think
• Opinion leaders
• One primary goal of PR is to influence public opinion
Name the different types of advertising other than product?
• House ads
• Public service announcements
• Corporate advertising
What is a news release?
• Focus is on the product
- • Find something “newsworthy” to expect any coverage (don’t send out too many or they will be ignored)
- - something new
- - something unusual
- - solved a problem
- - no guarantees it will appear
- - have contact person
What is the goal of retail advertising?
• Retail marketing is about selling and shopping
• Occurs on local, national, and international levels
• Accounts for nearly half of all advertising dollars
• Primary goal is to build store traffic
What is the difference between a promotional and institutional ad?
- Promotional Retail ad
- • Emphasizes price
- Institutional Retail ad
- • Advertises the store as the brand
What is the NAICS code?
• North American Industry Classification System
• Replaced the SIC (Standard Classification System) several years ago
• Offers businesses info to segment target markets by industry
• Uses 6 digit code vs. old SIC of 4 digit
Who are the target buyers in a business?
• Usually not made individually
- • Higher the cost, more likely a group decision
- - Users (actually use the product)
- - Buyers (may be purchasers, but can be others here too)
- - Influencers (don’t buy, but could write specs for what is bought)
- - Deciders (decision makers)
- - Gatekeepers (point of contact – must work through them since they shield the seller from others in company)
What is the most effective media to reach business buyers?
• Also need to identify right media
• Reaching the right person may be critical, since a designer may be key person
What is social or nonprofit marketing?
The use of marketing programs and marketing communication tools for the good of society
What is cause marketing?
• Adopting a good cause and sponsoring community and fund-raising efforts
• Links a company’s mission and core values to a cause