MKTG1000 Study Guide - Final Guide: Crisis Management, Web Banner, Unique Selling Proposition
MKTG1000 Exam
40 MCQ
6 Short Answer Questions (Theory, Explain, Apply)
Chapter 15
Main Topics
• Role of Promotion
- Pootioal stateg is the pla fo usig the eleets of podutio to eet the fis oeall
objectives and marketing goals
- Based on these objectives, the elements of the promotional strategy become a coordinated
promotion plan
- The promotion plan then becomes an integral part of the total marketing strategy for reaching the
target market along with the product, distribution and price
- Promotional strategies have changed a great deal over the years as many target customer
segments have become harder and harder to reach
- Forcing marketers to think more creatively, most modern campaigns utilise a variety of new tactics
– digital paid media, social media and influencer marketing
• Competitive Advantage
- Is the set of unique features of a company and its products that are perceived by the target
market as significant and superior to those of the competition
- Such features can include high product quality, rapid delivery, low prices, excellent service, or a
feature not offered by the competition
• The Communication Process
- Marketers are both senders and receivers of messages;
▪ As senders, marketers attempt to inform, persuade, and remind the target market to take
actions compatible with the need to promote the purchase of goods and services
▪ As receivers, marketers listen to the target market in order to develop the appropriate
messages, adapt existing messages, and spot new communication opportunities
- The communication process has several steps
- When an individual or organisation has a message, it wishes to convey to a target audience, it
encodes that message using language and symbols familiar to the intended receiver and sends the
message through a channel of communication
- Noise i the tasissio hael distots the soues iteded essage
- ‘eeptio ous if the essage falls ithi the eeies fae of efeee
- The receiver decodes the message and usually provides feedback to the source
- Normally, feedback is direct for interpersonal communication and indirect for mass
communication
- The internet and social media have had an impact on the communication model in two major
ways:
▪ Consumers are now able to become senders
▪ Marketers can personalise the feedback channel by initiating direct conversations with
customers
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• Goals of Promotion
- The fundamental goals of promotion are to induce, modify, or reinforce behaviour by informing,
persuading and connecting
- Seeks to modify behaviour and thoughts in some way
- Promotors may try to persuade
- Promotion strive to reinforce existing behaviour
- The source (the seller) hopes to project favourable image or to motivate purchase of the
opas goods ad seies
- Promotion can perform these tasks:
1. Inform the target audience
2. Persuade the target audience
3. Remind the target audience
4. Connect with the audience – the ability to connect to consumers is one task that can be
facilitated through social media
- Informing
▪ Informative promotion explains a goods o seies pupose ad eefits
▪ Promotion that informs the consumer is typically used to increase demand for general
product category or to introduce a new good or service
▪ Seeks to convert an existing need into a want or to stimulate interest in a new product
▪ More prevalent during the early stages of the product life cycle
▪ People typically will not buy a product or service or support a non-profit organisation
until they know its purpose and its benefits to them
▪ Informative messages are important for promoting complex and technical products such
as automobiles, computers and investment services
▪ Ifoatie pootio is also ipotat fo a e ad eig itodued ito a old
product class
▪ New products cannot establish themselves against more mature products unless
potential buyers are aware of them, value their benefits, and understand their positioning
in the marketplace
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▪ Increases awareness
▪ Explain how the product works
▪ Suggest new uses
▪ Build company image
▪ E.g. Google Glass
- Persuading
▪ Persuasive promotion is designed to stimulate a purchase or an action
▪ Promotion that persuades the consumer to buy is essential during the growth stage of
the product life cycle, when competition becomes fierce
▪ By this time, the target market should have general product awareness and some
knowledge of how the product can fulfil its wants
▪ The pootioal essage ephasizes the poduts eal ad peeied opetitie
advantage, often appealing to emotional needs such as love, belonging, self-esteem and
ego satisfaction
▪ E.g. Android-based smartphones try to persuade users to purchase an android phone
instead of an iPhone, highlight technological benefits.
▪ Persuasion is important when the goal is to inspire direct action
▪ E.g. Ice Bucket Challenge
▪ Persuasion can also be an important goal for very competitive mature product categories
such as household items and soft drinks
▪ Encourage brand switching
▪ Change customers perceptions of product attributes
▪ Influence immediate buying decision
▪ Persuade customers to call
▪ Provide incentives
- Reminding
▪ ‘eide pootio is used to keep the podut ad ad ae i the pulis id
▪ Promotions that remind are generally used during the mature stage of the product life
cycle
▪ It assumes that the target market has already been persuaded of the merits of the good
or service
▪ Its purpose is simply to trigger a memory
▪ Colgate toothpaste and other consumer products often use reminder promotion
▪ Remind people about the brands when they are looking to purchase
▪ Maintain customer awareness
- Connecting
▪ Connection promotion is used to form relationships with customers and potential
customers using social media platforms
▪ Connecting encourages customers to become brand advocates and share their
experiences via social media
▪ By facilitating this exchange of information through a transparent process, brands are
increasingly connecting with their customers in hopes they become brand advocates that
promote the brand through their own social networks
▪ Tools for connection include social networks, social games, social publishing tools, as well
as social commerce
▪ E.g. The AL“ Assoiatios Ie Buket Challege a also e osideed a eaple of
connecting since many people used videos posted to Facebook and Twitter to issue their
challenges
▪ Form relationships through social media
• AIDA
- This model proposes that consumers respond to marketing messages in a cognitive (thinking),
affective (feeling), and conative (doing) sequence
find more resources at oneclass.com
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Document Summary
P(cid:396)o(cid:373)otio(cid:374)al st(cid:396)ateg(cid:455) is the pla(cid:374) fo(cid:396) usi(cid:374)g the ele(cid:373)e(cid:374)ts of p(cid:396)odu(cid:272)tio(cid:374) to (cid:373)eet the fi(cid:396)(cid:373)(cid:859)s o(cid:448)e(cid:396)all objectives and marketing goals. Based on these objectives, the elements of the promotional strategy become a coordinated promotion plan. The promotion plan then becomes an integral part of the total marketing strategy for reaching the target market along with the product, distribution and price. Promotional strategies have changed a great deal over the years as many target customer segments have become harder and harder to reach. Forcing marketers to think more creatively, most modern campaigns utilise a variety of new tactics. Digital paid media, social media and influencer marketing. Is the set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition. Such features can include high product quality, rapid delivery, low prices, excellent service, or a feature not offered by the competition.
