Exam #3 Study Guideo Understand the definition of promotion, what it is, what the purpose isPromotion is communicating information between a seller and potential buyerGoals: Influence attitudes and behaviorsTell customers they can get the right PRODUCT, at the right PLACE, for the right PRICEo Know the different types of promotionPersonal 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 purchaseo Understand the pros and cons of personal selling, advertising, publicity, and sales promotionsPersonal selling is like what car dealerships haveAdvertising is getting your message out through an ad campaign of sortsPublicity is getting exposure of your brand in some waySales 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 15o Know the different roles in promotion and understand the responsibilities of each role- Sales managers Often in the sales department rather than marketingBuilding distribution channels, territory design, etc.- Advertising managersDesign ad content or coordinate with outside agencyChoose the right media for delivering ads- Public relations managersCoordinate company communication with non-customers (ex. Press, government, unions, etc.)MKT 305 1st Editiono Understand the three basic promotion objectives – informing, persuading, remindingInforming – tell customers about a productFeatures and benefits of the productHow it can meet their needsPersuading-Convince customers your product meets their needs better than an alternativeOften appeals to the influences we discussed earlier (economic, psychological, social, personal)RemindingUseful when most of your customers use straight rebuys or routinized buying to buy your productUsed as a defensive measure when customers already have positive attitudes about youReminds 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 objectiveso Understand the AIDA model and know how it applies to promotion objectivesGet their AttentionBuild InterestArouse DesireObtain Actiono Understand the encoding/decoding concept and the challenges associated with the processThe 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 wayo Understand the differences between company initiated and customer initiated communicationCompany 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 communicationThe 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 informationo Understand the concept of the Adoption CurveInnovatorsEarly adoptersEarly majorityLate majorityLaggards 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 Promotiono Advertising Understand what it is, pros, cons, and challenges vs. other forms of promotionAdvertising 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 togetherAwareness – informing with teaser campaigns, catchy jingles, viral marketing, pioneering adsInterest – informing with product description or information, use endorsements, demonstration of benefits, psychological influencesDesire – persuasion with competitive/comparative ads, economic influencesAction – 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 advertisingInstitutional 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 brandGenerally appropriate during early stages of the PLC– Competitive Develop selective demand – focuses on you and your strengthsImportant during growth and later stages of PLCComparative Advertising – Competitive advertising the makes brand comparisons by name– ReminderReinforces 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 advertisingo Publicity- Promotion’s ability to influence buying decisions depends on how much customers trust the source Understand what it is, pros, cons,