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MARK 453 Final: MARK-453-Study-questions
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Department
Marketing
Course
MARK 453
Professor
Caroline Roux
Semester
Winter

Description
MARK 453 – Marketing Communications Study questions Week 1 – Chapter 1 – Integrated Marketing Communications (IMC)  How does noise negatively impacts the effectiveness of different types of ads? Give examples and explain your reasoning.  Noise is anything that distorts or disrupts a message. Might occur at any stage of the communication process Exists when customers are exposed to hundreds of marketing messages per day Sender → Encoding → Transmission Device → Decoding → Receiver  Clutter remains most common form of noise  Explain what IMC are and how they differ from traditional marketing communications. What are the different reasons why marketing communications should be integrated?  IMC : The coordination and integration of all marketing communication tools, avenues, and sources in a company into a seamless program designed to maximize the impact on customers and other stakeholders at a minimal cost.  Traditional marketing communications  Focused mainly on advertising  Division of labor Integrated marketing communications  Uses multiple communication channels  Unified strategy  Need IMC to:  Grab attention  Reach consumers through different channels  Convey a clear and consistent message across platforms Week 2 – Chapter 2 & 3 – Branding and Buyer Behavior  Why does brand image matters?  Summarizes what the company stands for Made of tangible and intangible elements Consumers’ beliefs > Firms’ beliefs Negative perceptions > Positive  Create specific impression in the minds of clients and customers Varies from consumer to consumer or for each B2B buyer Combined views (overall brand image) can be positive/negative Holds true for individual brands  What are the different roles that a brand can play?  Customer perspective o Provides confidence regarding purchase decisions o Gives assurance about the purchase when the buyer gas little or no previous experience o Reduces search time in the purchase decision o Provides psychological reinforcement (wise choice was made) and social acceptance (others are likely to purchase same brand) of the purchase  Company perspective - Quality image = basis for development of new goods and services - Useful benefits for the firms: o Extension of positive customer feelings to new products o Ability to charge a higher price or fee leading to better profits o Consumer loyalty leading to more frequent purchases o Positive WOM endorsements o Higher level of channel power due to positive customer attitudes creating stronger positive feelings about the brand o Ability to attract quality employees o More favorable ratings by financial observers and analysts  Why would a brand feel the need to rejuvenate its image? What would the brand need to take into account in order to increase the success of its image rejuvenation?  Rejuvenating a brand’s image - To sell new products and attract new customers - To retain loyal patrons and those who are comfortable with original version - Remain consistent with previous image while incorporating new elements to expand the target - Key areas: o Help former customers rediscover the brand o Offer timeless consumer value o Stay true to original, but contemporize o Build a community  Who are the different types of people that could play a role in the consumer purchasing process?  ROLES RESPONSIBILITY  User  Actually uses product/service  Buyer  Makes purchase  Influencer  Influences purchase decision  Decider  Authorizes purchase decision  Gatekeeper  Controls information about product/service  How can IMC attempt to impact each step of the purchase decision making process?  Step 1: Need recognition  Know when consumers are most likely to experience needs  Step 2: Information search  Provide relevant information about your brand  Step 3: Evaluation of alternatives  Ensure that your brand is recalled  Step 4: Purchase decision  Make it easy to complete the purchase  Step 5: Post-purchase decision  Provide post purchase reassurance  What are the different types of needs? What are the different situations where a need for a product/service could be identified?  TYPES  Physical  Social  Psychological  When are needs recognized ? When there is a gap between your actual and your ideal state. WHEN…  Out of stock  Replacement  Lifestyle change  Market-induced need  Dissatisfaction  Complementary product  What are the different ways consumers can search for information? Which sources of information can they consult during each type of information search?  INTERNAL SEARCH  Habitual recall  Previous experience  Set of alternatives  EXTERNAL SEARCH  Personal sources  Marketer controlled sources  Public sources  Others’ personal experiences  Variety of sources: friends, relatives, experts, books, magazines, newspapers, advertisements, in-store displays, salespeople, internet, social media  Which attitude sequence is the most appropriate for which type of products/services?  ATTITUDES  Cognitive (Think) / Think ð Feel ð Act /  Affective (Feel) / Feel ð Act ð Think /  Conative (Act) / Act ð Think ð Feel / (products with little thought, have a low price)  What would be an example of an evoked set? What could be potential inert and inept brands in this set? Why is it important for brands to be part of the evoked set? Example of dishwashers The brands considered in purchasing situation Inept set: brands not considered in memory because negative feelings (bad experience, negative comments from friends..) Inert set: brands you know about but neutral feelings (lack of knowledge)  Based on the multiattribute model, how could different brands try to impact your evaluation of alternatives?  Highlight performance of the brand / non-performance of a competing brand  Highlight the importance of each attribute to the consumer  Why would a consumer evaluate alternatives through affect referral rather than the multiattribute approach?  Consumers choose brands they like the best or the ones with which they have emotional connections Usually have low level of involvement or frequently purchased products Affect referral model saves mental energy Prevent from redoing multiattribute model  repurchase based on positive feelings Consumers often develop emotional bonds with brands  Why is it still important to communicate to consumers at the post-purchase stage?  What happens after the purchase?  Compare level of performance with expectations  Dissatisfied  Satisfied  Cognitive dissonance  Feeling of doubt  Due to conflicting attitudes  Marketers need to reduce post-purchase regret Week 3 – Chapter 4 – Planning Process  Why should marketers perform communications research? What are the different types of communications research they could perform? Understand  Product sold : Benefits > Attributes  Potential buyers : Usage > Segments  Types Product-specific research  Identifying key product characteristics that become selling points  Understanding of attributes or characteristics  Understanding of benefits that a product provides Consumer-oriented research  Identifying the context of a product’s use  Anthropological approach: Direct observation of consumers using the good or service  Sociological analysis of social class issues, trends and family life cycle change  Psychological motives for product purchases (feeling sexy, powerful or intelligent) Target-market research  Identifies who will be the recipient of the planned communications campaign  Looks at the best market for a particular benefit of a good or service  Use of focus group and customers insights  What are the different criteria marketers can use to identify market segments? What are the characteristics of a viable market segment?  How do you identify market segments?  Demographics  Psychographics  Generations  Geographic  Geodemographic (geographic, demographic and psychographic)  Benefit  Usage (how often do people do they buy a product)  CRITERIA  Homogeneous (similar within)  Differentiated (from other group of people)  Size  Reachable (difficult when too specific or too narrow segment)  What is positioning? Why does it matter? What are the different positioning approaches?  POSITIONING  Summarizes the perception in the consumer’s mind of the nature of a company and its products  Features variables such as quality of products, price, methods of distribution, packaging, image..  Customer perception & product’s standing relative to the competition  Marketing communications reinforce what consumers already belive or try to shift consumer views  APPROACHES  Product attributes  Competitors  Use or application (set of use for a product, eg: milk)  Price-quality relationship  Product user: identify ideal stereotype consumer / specify who might use it and then address message to them  Product class (more in term of product category)  Cultural symbol  What are the main components of a marketing communications objective? Write a marketing communications objectives that would be appropriate for an ad of your choice. Explain.  Guide the development and delivery of message Aligned with overall marketing objectives Supported by other marketing functions  SPECIFIC COMPONENTS Target audience Tasks (what is it I am trying to achieve) Changes (%) Time  Increase brand knowledge (tasks) from 25% to 50% (changes) among health conscious women aged 25-55 (target audience) over 12 months (time)  What are the different types of marketing communications budgets? Is there a type of budget that is superior to the others?  TYPES OF BUDGETS  Percentage of sales  “Meet the competition”  Affordability – “What we can afford”  Objective and task  Best compromise to budget on marketing communications  Identify and list the objectives and calculate the associated costs  Communication budget = cumulative sum of estimated costs for all objectives  Payout planning  Quantitative models  What are the different types of marketing communications schedules? Give examples of product categories that would be most likely to use the different types of schedules.  CONTINUOUS  Regular continuous pattern  Every [day/week/month]  Products consumed on an ongoing basis  Tissues, soap, coffee, detergents..  DISCONTINUOUS/FLIGHTING  On and off  During peak times  Seasonal products  Skis, winter tires, suncreams  PULSATING/PULSING  Combination of continuous and flighting  Increase number of advertisement around high buying times  Chocolate, cars Week 4 – Chapter 5&6 – Creative Strategy  What are the different goals an IMC campaign can try to accomplish? 1. Build brand awareness: People need to recognize you when making a purchase. Successful brands possess 2 characteristics: A) Top of mind: Brands that come up to mind when asked to name brands from specific product category B) Top choice: first or second pick when evaluating alternatives 2. Provide information: Typical info includes store hours, location, more detailed product specifications (make purchase process appear simple/convenient) 3. Persuasion: Convince customer of superiority 4. Supporting Marketing Efforts: accompanies promotions 5. Encouraging Action: behavioral goals (ex: encourage to call – shamwow)  How can marketers use variability theory to improve the effectiveness of their marketing communications? Variability Theory: Variable encoding occurs when a customer sees the same advertisement in different environments. Increase recall and effectiveness by encoding it into the brain through various methods. Can use more than one medium or just change ads within same media.  What are the different factors that can impact the effectiveness of the money spent on an IMC campaign? 1. The communications Goal: If the goal is to create awareness, won’t necessarily yield high return. 2. Threshold effects: Early effects of advertising may be minimal. At first, few responses but over time, as consumer gets repeatedly exposed to communication message, recalls the brand and more likely to purchase. Threshold effects occur at the point where the advertising begins to have significant impact on reponses. 3. Diminishing returns: When campaign has saturated the market, further expenditure will produce a minimal impact 4. Carryover Effects: Promotions for products that are only purchased when needed (ex: washing machine) should be designed to create brand recall (consumer exposed to company for so long that when time comes to buy they choose them). 5. Wear out effects: When campaign becomes old or boring (tend to ignore or tune out or even develop negative attitude). 6. Decay Effects: When the company stops advertising, consumers slowly forget (should always engage in some form of mark communications to keep brand in people’s mind).  How can IMC attempt to impact each step of the hierarchy of effects?  Helps to clarify the objectives of an advertising campaign  6 sequential steps a consumer moves through when making a purchase: o Awareness o Knowledge o Liking o Preference o Conviction o The actual purchase  Helps building brand loyalty  Responses that IMC should stimulate  Cognitive-oriented asachieving brand awareness and brand knowledge  Affective-oriented asinspiring liking, preference and convictions  Conative-oriented ad facilitating product purchases or other actions  But, six steps not always route taken by customer  Make purchase and then develop knowledge, liking, preference and conviction  Coupon, discount, or purchase incentive  Might not remember name of brand purchased previously  What is the means-end chain? How can a brand use it to develop its creative strategy?  Advertisement should contain a message/means that leads consumer to a desired end state End states are personal values A means-end state should start a process in which viewing the advertising message leads consumer to believe that using the product will help them achieve a personal value.  The Meccas model explains ways to move consumers from product attributes to personal values by highlighting product benefits. Marketers need to link product attributes to specific benefits which lead to personal value for consumer. (Ex:product attribute is calcium in milk, benefit of healthy bones and value is feeling wise for using product that betters your life)  What are the main components of a creative brief? A document prepared by advertising agency to guide the production of an advertising campaign or for a specific commercial. 1. The objective: main goal of campaign (ex: increase brand awareness) 2. Target Audience: specific (ex: male,, 20-35, hobbies, lifestyle, interests) 3. Message theme: Key ideas (benefit or promise advertiser uses to reach people – ex: car industry could be safety,luxury,fun,fuel effeciency)  can be oriented to rational (left side of brain) or emotional processes (right) or both. 4. Support: facts that substantiate the message theme 5. Constraints: legal or mandatory restrictions placed on ad.  When and why should a brand use (vs. not) crowdsourcing to help develop their marketing communications?  Crowdsourcing: outsourcing creative aspect of adv. or campaign to the public. Pros: - Increase involvement - Generates buzz - Customer retention - Relatedness (sharing background information increases persuasive and credibility)  Cons: - Costly - Stable customer base - Lack of consistency - Lack of linkage  What are the different types of message strategies? When is each type of message strategy most appropriate to use? 1. Cognitive Message strategies: rational arguments/info. Describes attributes or benefits obtained through product. i. Generic Messages: Directly promotes attributes/benefits without any claim of superiority (works best for brand leaders). Contains little info bu instead tries to link to product category in brain. ii. Preemptive Messages: claim of superiority based on attributes/benefits with intent of preventing competition from making a similar statement. (Need to be the first one to use it or else you’re a copycat even if your brand does it too ex: crest cavity fighter) iii.Unique selling proposition: What makes you unique or superior to competition (testable and concrete claim) iv. Hyperbole: Untestable claim based on attribute or benefit (ex: best radio station) v. Comparative Advertising: compare product to the competition on some product attribute/benefit (less believable because info thought to be exaggerated and misleading) – comparing low market share brand to leaders works better (people listen more for message/content) 2. Affective Message Strategies: Evoke feelings or emotions and link it to the brand (attempt to enhance likeability and recall). Want emotions to turn to action. i. Resonance: Connecting brand with a consumer’s experiences in order to develop stronger ties between the product and consumer. ii. Emotional: Attempts to elicit powerful emotions that lead to product recall and choice (trust, reliability, happiness, security…) – help build stronger brand name 3. Conative Message strategies: seek to lead directly to a consumer response (can support other promotional efforts such as coupon redemption programs). Knowledge or liking may come after purchase.  What are the pros and cons of using a comparative message strategy? What does a marketer need to take into consideration when doing so?  PROS - Captures attention - Increases awareness - Message retention  CONS - Believability - Negative attitudes - Trait transference  OTHER - Viable competition - Misleading claims - Market share (shooting out > bullying) *Choose appropriate comparison and use caution when using negative comparison format (must be viable competing brand and can’t make misleading statements).  What are the different types of creative appeals? What are the pros and cons of using each type of appeal? When is each type of creative appeal most appropriate to use? 1. Fear Appeals: Pros- increase viewer interest and can increase persuasiveness. Can also make people remember. - Severity and Vulnerability: Picture of severity of issue if don’t buy product or how vulnerable you will be if you don’t get it. - Rewards to response efficacy: What rewards will you get by engaging in behavior/product (intrinsic and extrinsic). What is the cost of engaging (response cost –not just monetary). Degree of self efficacy (belief in ones self). Make decision based on all components put together. - Appeal strength: powerful to capture attention but not scary that people avoid. 2. Humor Appeals: Pros- High recall scores, consumers enjoy ads that make them laugh, makes ads more likeable, cuts through clutter. Cons – harder for global campaigns because humor changes depending on culture *don’t let humour overpower the message. Humour should link back to product benefits (means-end chain) 3. Sex Appeals: - Subliminal approach: placing sexual cues or icons in attempt to affect viewers subconscious (cons: don’t pay much attention to adds to definatelt don’t register small cues - ineffective) - Sensuality: More sophisticated (pros: women respond better to this than overly sexual approach) - Sexual suggestiveness: Hints that sex is about to take place - Nudity or partial nudity - Overt Sexuality: Becomes controversial when used for product unrelated to sexuality. - Decorative models: ex: beer or car commercials Pros: Increase attention, deemed more interesting, increase arousal response Cons: Recalls lower then with other appeals (don’t notice brand name), people feel is perpetuated dissatisfaction with one’s body 4. Music Appeals: Connects with emotions, memories and experiences. Can be intrusive (grab attention). Increases retention of information. Can increase persuasiveness of an argument. Brand equity/awareness/loyalty become easier when people know and like the song you use. Can create partnerships with musicians so cost you less/ be cool/ musician gets known. 5. Rational appeals: Follows the hierarchy of effects stages of awareness, knowledge, liking, preference, conviction, purchase. 1. Pros: Stronger conviction about product’s benefits (consumer must pay attention to commercial, understand message and compare info to what they already know. 2. Usually work when customers have high levels of involvement and willing to pay attention to ad (need to have interest in brand or product) 6. Emotional Appeals: 3. Pros: Can capture a viewer’s attention and create an emotional attachment between the consumer and the brand. Increases brand loyalty. 4. Works best on TV and can be linked with other appeal (ex: humor, fear…) 7. Scarcity Appeals: Urge consumers to buy because of limitation 5. Pros: increases perceived value  What are the different types of executional frameworks? When is each type of executional framework most appropriate to use? 1. Animation Executions: 2. Slice of life: provide solutions to everyday problems  encounter-problem-interaction-solution. Allows advertiser to highlight the ways brand can meet needs. 3. Storytelling: 30 second movie with a plot. This takes away the hard sell approach (product isn’t center of ad). Form our own conclusions about product. 4. Testimonial: Add credibility to claims (especially in business-to-business and service sectors). Service sector isn’t tangible so can’t feel before you buy. Most credible come from everyday people because not paid like celebrities or actors. 5. Authoritative: Seek to convince viewers regarding brand’s superiority. Have experts back up the brand’s advantages. Creates credibility if consumer is using cognitive processes and pays attention to ad + info conveyed. 6. Demonstration: How does product work? Effective way to communicate benefits 7. Fantasy: Lift beyond real world to a make believe experience. People often recall the most irrational/illogical ads. Fits with target audience that have preference for a tamer presentation (instead of raw sexuality, it will focus on romantic make believe). Ex: perfume make woman feel more sensuous 8. Informative: Give info in straightforward manner. Usually used more when only verbal communication takes place (radio). Works better with people who are highly involved. Placement is everything (ex: restaurant add right before noon will catch more attention than at 3pm)  What are the different types of sources and spokespersons that can help convey a message in marketing communications? What are the pros and cons of using each type of source or spokesperson? Spokespersons 1. Celebrity: May enhance brand’s equity (transfers bond between celebrity and audience onto brand – usually work better for younger consumers), helps with brand awareness and brand personality. Unpaid spokesperson enhances credibility for cause. Cons: Is expensive, and might not work as well for new products. If only a voiceover, may be distracting as people try to identify the voice. May be slightly overused. If celebrity has negative image it transfers onto brand. If celebrity endorses too many products it tends to reduce likeability. 2. CEO: Can become major asset for company, become local celebrities. Cons: not professional actor so might come off awkward in commercial. 3. Experts: Backup testimonials, serve as authoritative figures, demonstrate products, enhance credibility. More believable then celebrities for high tech products= Better at reducing perceived risk in purchasing. 4. Typical Person: Either paid actors/models that portray everyday people or actual everyday people. Less boring then celebrity (less overused).  What are the different characteristics that a source can possess? How do these characteristics correspond with the different types of sources and spokespersons? 1. Credibility: Everything below affects credibility which in turn affects receiver’s acceptance of spokesperson + message. Celebrities usually possess the most elements below. 2. Attractiveness: physical and personality characteristics (helps form emotional bonds with the people) 3. Similarity: Influenced more by people similar to us because we identify with them (ex: stay at home mom). They probably have similar beliefs, values, preferences… 4. Likeability: You like the character that actor played, will then like product. Use well liked actors. 5. Trustworthiness: Celebrity may be likeable and attractive but not trustworthy. If you are liked, you tend to be more trusted and vice versa. 6. Expertise: Become more believable if show expertise. This is when CEO or expert in field is practical. * Celebrities: score well on trust, believability, persuasiveness and likeability (even more when celebrity fits with product) * CEO may not be likeable or attractive but trustworthy, expertise and credible. *Experts should be credible (usually seek attractive, likeable and trustworthy experts). *Typical person: trustworthy, similarity and credibility rise for bald/overweight but attractiveness and likeability may be lower (double edged sword) Week 5 – Chapter 7 - Advertising  What information do marketers need when starting the media planning process?  Media planning commences with an analysis of the target market. They need to understand the processes customers use in making purchases and what influences their final decisions (role of media in customers purchasing process).  Media plan includes marketing analysis (4 Ps), advertising analysis (IMC planning process), media strategy, media schedule, and then justification and summary  What are reach and frequency? How do they differ from effective reach and effective frequency? What are the different approaches that can help you determine the optimal level of reach and frequency for an IMC campaign? What are the different elements that can impact the optimal level of reach and frequency for an IMC campaign?  Reach: number of members of your target audience exposed at least once to a particular advertisement during a specific period of time Frequency: average number of times a member of your target audience is exposed to a particular advertisement during a specific period of time  Effective Reach = % of an audience that must be exposed to a particular message to achieve a specific objective.  Effective Frequency = # of times a target audience must be exposed to a particular message to achieve a specific objective.  To determine optimal level of reach and frequency : 6. Theories: three-exposure hypothesis / recency theory / variability theory  Element that impact optimal levels: 7. Objective (brand recall/brand recognition) 8. Size, placement of an ad 9. Number of media used 10. Synergy between media  What is “opportunity to see”? How is OTS calculated? What is the main problem with OTS?  OTS (=frequency) (cumulative exposures achieved in given period). When company places two ads on a weekly tv show, eight OTS (four shows x two ads per show) occur during the four week period.  Main problem: OTS is most of the time above the actual exposure We assume that OTS = exposure  What are “gross rating points”? What are their main purpose? How are GRPs calculated?  GRP = measure impact or intensity of a media plan. Vehicle rating x OTS or Reach(%) x Frequency Provide advertiser with better idea of the odds that members of the target audience actually viewed the commercial (by increasing OTS or frequency, chances of buyer seeing the ad rises).  What is “cost per thousand”? What is its main purpose? How is CPM calculated?  CPM = (cost of media buy / Total audience) x 1000. Cost measures the overall expensitures associated with an advertising program or campaign. To see how cost-effective one medium or ad placement is compared to another CPM can be calculated. CPM identifies the dollar cost of reaching 1000 members of the media vehicles audience.  What are “rating” and “share”? How do they differ? How are they calculated?  Rating and share are terms that calculate media audience  Rating (%)= measure the percentage of a firm’s target market exposed to a media (television show or readers of a print medium). (# of H tuned into a program/total # of households) Rating = target market exposed to media / total target market  Share (%) = Number of H tuned into a program/total # of H with a TV on  Cost per rating point = cost of media buy / vehicle rating  measures relative efficiency of a media vehicle relative to firm’s target market  What are the pros and cons of the different types of advertising media?  TELEVISION Pros:  High reach  High frequency potential  Low cost per contact  High intrusion value  Creative opportunities  Segmentation Cons:  High level of clutter  Lower recall  Channel surfing  Ad skipping  Short amount of copy  High cost per ad  RADIO Pros:  High recall  Narrower target markets  Match ad & audience  High segmentation  Flexible  Fit local conditions  Intimacy  Mobile  Creative opportunities Cons:  Short exposure time  Low attention  Hard to reach national audience  Target duplication  Information overload  NEWSPAPERS Pros :  Geographic selectivity  High flexibility  High credibility  Strong audience interest  Longer copy  Volume discount  Responses features Cons :  Poor buying procedures  Short life span  Clutter  Poor quality  Internet competition  Aging readership  MAGAZINES Pros :  Market segmentation  Audience targeting  Direct-response  High color quality  Special features  Long-life  Longer attention  Special features Cons :  Declining readership  Clutter  Long lead time  Little flexibility  High cost  OUT-OF-HOME Pros :  Select geographic areas  Accessible for local ads  Low cost per impression  Broad reach  High frequency potential  Large visuals possible  Digital capabilities Cons :  Short exposure time  Brief messages  Little segmentation  Clutter  What type of advertising mix would work best for different IMC objectives, target audiences, and/or product categories?  Select right advertising media mix : analysis market scale, characteristics, media choices + message content  Multiplier effect: combined impact of using 2 or more media will be stronger than using either media alone.  Question asked with example in support Week 7 – Chapter 12 – Sales promotion  What are [depending on the type] the goals, pros and cons, and/or keys for successfully using the different types of consumer promotions? Goals Pros Cons Keys to success Coupons Offer price reductions to consumers Premiums Prizes, gifts, or Match the premium other special to the target offers received market + for free when Carefully select the purchasing premiums (avoid products fads, try for exclusivity) + Pick a premium that reinforces the firm’s product and image Contests and Increase Extrinsic value: sweepstakes customer traffic Actual May or may not attractiveness boost sales of the prize Intrinsic value: Values associated with participating Sampling Trial Effective Most effective method of when new product getting or new version consumers try introduced and purchase a Targeting right particular brand audience at right Effective way to venue at the right introduce new time item, generate interest in it and collect information about consumers Price-offs Temporary Stimulate sales Negatively Appeal of monetary reduction of of existing impact profits savings price products Encourage price- Grand immediate Entice new sensitivity rewards products trial Negative impact Encourage on brand image customers to switch in brand parity situations or when no strong brand loyalty When customer has preference, encourages stockpiling of the product and increased consumption of the item (not true for deodorant or toothpaste) Refunds & Low-response When new or rebates rates original Too many steps or long waiting times Negative effects when rebate level is reduced Bonus packs Reward Rarely attract customer new customers loyalty by presenting free merchandise Consumers may opt for brands that offer more product at regular or special price Helps maintain brand loyalty and reduces brand switching at a minimal cost  How do different types of consumers respond to sales promotions?  Promotion-prone consumers - Regularly respond to various consumer promotions - Like to purchase products that are on-deal  Price-sensitive consumers - Price remains primary criterion used in purchase decision - Take advantage of any type of promotion that reduces price - Consumers purchase cheaper brand whether on-deal or off-deal  Brand-loyal consumers - Purchase only one particular brand and do not substitute regardless of any deal being offered  Brand-preference consumers - Consider a small set of brands for which they have strong attachment - When promotions are offered for one of chosen brands, it becomes the one to be purchased - Consumers ignore promotion for brands not in the brand preferred set, regardless size or type of promotion  How can the different types of trade promotions help support an IMC campaign? What are the concerns associated with using trade promotions? Trades promotions  Incentives designed by members of trade channel to entice another member to purchase goods for eventual resale  Companies select trade promotions techniques based on:  Nature of business (manufacturer vs distributor)  Type of customer to be influenced (retailer vs wholesaler)  Company preferences  Objectives of IMC plan  4 types: trade allowances, trade contests, trade incentives, trade shows  Concerns : - Strong brand image causing retailers to stock the product, making trade promotions useless - High costs of trade promotions  higher prices of the product for the consumers - Situation when merchandise does not move until trade promotion incentive offered - Constant use of deals = manufacturer margins on products & compe
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