MKT 3401 : Marketing Test 3 Study Guide
Marketing Test 3 Study Guide
Chapter 16
ʽ Promotion- communication by marketers that informs, persuades, and reminds potential buyers of a
product in order to influence an opinion or elicit a response
ʽ Promotional strategy- plan for the optimal use of the elements of promotion
o Main function:
▪ Competitive advantage- set of unique features of a company and its products that are
perceived by the target market as significant and superior to the competition
▪ Ex: high quality, rapid delivery, low prices, etc.
ʽ Promotional mix- combination of tools used to reach the target market and fulfill goals:
o Advertising- any form of impersonal paid communication in which the sponsor or company is
identified
▪ Traditional media- TV, radio, newspaper, magazines, billboards, mail, etc.
▪ Nontraditional- Websites, email, blogs, interactive video
▪ Advantages:
• Reach large number of people at a time
• Cost per contact is low
• Can be micro targeted to small groups
▪ Disadvantages:
• Total cost is high
• National reach is expensive
o Public relations- evaluates public attitudes, identifies areas within the organization the public
may be interested in and executes a program of action to earn public understanding and
acceptance
▪ Helps organization communicate with customers, suppliers, stockholders, gov, and
community
▪ Maintains positive image
▪ Educate the public about the company’s objectives
▪ Introduce new products
▪ Support the sales effort
▪ Generate favorable publicity (public info about a company)
o Sales promotion- all marketing activities, other than personal selling, advertising, and public
relations, that stimulate consumer purchasing and dealer effectiveness
▪ Aimed at→ end consumers, trade customers, or company employees
▪ Includes:
• Free samples, contests, premiums, trade shows, giveaways, coupons
o Personal selling- involving a personal, paid for communication between 2 people in an attempt
to influence each other
• Traditional selling- persuade buyer into a specific point of view
o Win-lose outcome
o Car sales person- tries to persuade that a car is superior to another
• Relationship selling- long-term committed relationship based on trust and
loyalty
o Win-win→ benefit both for long term
ʽ Communication- the process by which meanings are exchanged or shared through a common set of
symbols
o Interpersonal- direct, face-to-face; people see the other person’s reaction and respond almost
immediately
o Mass- communicating concept or message to large audiences
o As senders→ inform, persuade, remind
o As receivers→ develop and adapt messages, spot new communication opportunities
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ʽ Promotion can perform→ inform the audience, persuade the audience, or remind the audience
o Inform- convert an existing need into a want or to stimulate interest in a new product
▪ Early, introduction stage
▪ Increase awareness, explain how it works, build company image
o Persuade- designed to stimulate a purchase or an action
▪ Growth stage
▪ Encourage brand switching, change customers’ perception of attributes, influence
immediate buying decision
o Remind- keep product and brand name in the public’s mind
▪ Maturity stage
▪ Remind customers where to buy product, maintain customer awareness
ʽ AIDA concept- Attention, Interest, Desire, Action- the stages of consumer involvement with a
promotional message; outlines process for achieving promotional goals
o Attention- must gain attention of target market, make it known
o Interest- create interest, demonstrations and target messages
o Desire- create brand preference, convince customers that your product is better than the
competition
o Action- motivate to take action, communicate features and benefits
▪ Cognitive (thinking), affective (feeling), conative (doing)
ʽ Factors affecting the choice of promotion mix
o Nature of the product- characteristics of product
o Stage in product life cycle
▪ Introduction- basic goal is to inform,
▪ Growth- promotion blend shifts; advertising/ PR still major, promotions are reduced,
persuasive promotion
▪ Maturity- competition more fierce, persuasive/reminder advertising, more promotions
trying to increase market share
▪ Decline- everything, esp. advertising, is reduced
o Target market characteristics
▪ Widely scattered market, informed buyers, brand loyal repeat purchasers→ requires
advertising, sales promotion, less personal selling
o Type of buying decision
▪ Routine- advertising, sales promotion
▪ Neither routine nor complex- advertising, public relations
▪ Complex- personal selling, print advertising
o Promotion funds
▪ Trade-offs with funds available
▪ Number of people in target market
▪ Quality of communication needed
▪ Relative costs of promotional elements
o Push and pull strategies
