MKT 305 1st Edition Exam 3 Study Guide o o o Understand the definition of promotion what it is what the purpose is Promotion is communicating information between a seller and potential buyer Goals Influence attitudes and behaviors Tell customers they can get the right PRODUCT at the right PLACE for the right PRICE Know the different types of promotion Personal Selling Direct spoken communication between sellers and customers Good for gathering VOC Flexible More credible than advertising Expensive Cant control the message Mass Selling Communicating with large numbers of potential customers at the same time More cost effective than personal selling Message can be carefully contrasted Hard to adapt to specific customer needs Inefficient Expensive Advertising is paid promotion Publicity is unpaid promotion Sales Promotions any promotion activities that aren t personal selling or mass selling The goal is to stimulate interest trial and purchase Understand the pros and cons of personal selling advertising publicity and sales promotions Personal selling is like what car dealerships have Advertising is getting your message out through an ad campaign of sorts Publicity is getting exposure of your brand in some way Sales promotions are aimed at getting short term action from the customer Know when using each is most advantageous Understand how to classify activities into each category Note Some of this content is also covered in Chapter 15 o Know the different roles in promotion and understand the responsibilities of each role Sales managers Often in the sales department rather than marketing Building distribution channels territory design etc Advertising managers Design ad content or coordinate with outside agency Choose the right media for delivering ads Public relations managers Coordinate company communication with non customers ex Press government unions etc o Understand the three basic promotion objectives informing persuading reminding Informing tell customers about a product Features and benefits of the product How it can meet their needs Persuading Convince customers your product meets their needs better than an alternative Often appeals to the influences we discussed earlier economic psychological social personal Reminding Useful when most of your customers use straight rebuys or routinized buying to buy your product Used as a defensive measure when customers already have positive attitudes about you Reminds them of the satisfaction they have with your product and discourages them from shopping around Know when to use each Know how they differ from each other Be able to analyze a scenario and determine which objective is being pursued Think about the different buying influences you might appeal to with different objectives o Understand the AIDA model and know how it applies to promotion objectives Get their Attention Build Interest Arouse Desire Obtain Action o Understand the encoding decoding concept and the challenges associated with the process The designer of a promotion encodes a message in the promotion there is a particular message they want the viewer to take away Viewers decode the promotion they interpret the promotion in some way o Understand the differences between company initiated and customer initiated communication Company Initiated Communication is what we typically see in advertising where a company actively communicates their message Customer Initiated Communication occurs when the customer seeks out information about the company o Identify challenges with customer initiated communication how companies position themselves to handle customer initiated communication The disadvantage is that the company cannot control the message SEO and SEM are critically important you need to show up when the customer searches for information o Understand the concept of the Adoption Curve Innovators Early adopters Early majority Late majority Laggards What it represents How it relates to the PLC What the different personas are how to identify each how to adjust marketing strategy for each etc o Understand key terms such as Encoding decoding primary demand selective demand personal selling mass selling etc Primary Demand is demand for the general product idea not your specific product The goal of Selective Demand is to persuade your customers that your product is the best option Advertising Publicity and Sales Promotion o Advertising Understand what it is pros cons and challenges vs other forms of promotion Advertising is paid promotion and a form of mass selling Be able to identify good or bad advertising objectives Understand how advertising and the AIDA model fit together Awareness informing with teaser campaigns catchy jingles viral marketing pioneering ads Interest informing with product description or information use endorsements demonstration of benefits psychological influences Desire persuasion with competitive comparative ads economic influences Action point of purchase ads reminding ads pricing offers Act now for 20 off Be able to identify techniques used to achieve each step of the AIDA model ex Using humor is a means of getting attention Understand the difference between Institutional and Product advertising Know the focus for each Understand the difference between Pioneering Competitive and Reminder product advertising Institutional Advertising is focused on the company rather than the products the company sells Pioneering Focused on primary demand for a product category rather than a specific brand Generally appropriate during early stages of the PLC Competitive Develop selective demand focuses on you and your strengths Important during growth and later stages of PLC Comparative Advertising Competitive advertising the makes brand comparisons by name Reminder Reinforces brand familiarity and preference Be able to identify competitive vs comparative advertising Based on a provided description or sample ad be able to categorize the primary focus for an ad Understand what the different advertising mediums are and factors that help you choose the appropriate medium for an ad Understand some of the changes that have come about with digital advertising o Publicity Promotion s ability to influence buying decisions depends on how much customers trust the source Understand what it is pros cons and challenges vs other forms of promotion Understand the difference between owned and earned media Owned media a publishing channel owned or controlled by the company Company