Marketing Communication Exam

Marketing Communication Exam marketing communication to promote and protect product and brand sustained communication & engagement with target market - protect against competition/rivalry methods: advertising, sales promotion, personal selling, PR, direct and digital marketing - Correct Answer Recent changes: - less broadcasting, more narrowcasting - mass marketing - segment/target marketing - IT: consumers are better informed - new media - reach and engage smaller targets - lower TV popularity (except for cable, sports, Spanish, y'all TV) - ^ internet, interactive and mobile - best: integrated (all channels) MC Factors shaping the promotion methods 1) nature of the method - Correct Answer - advertising: massive reach, can be repeated, attractive BUT costly & no interaction - PS: personable, LT relations, BUT MOST expensive - sales promotion: include to buy, BUT short lived - PR: believable, BUT underestimated - digital: target to segment, interactive, growing Factors shaping the promotion methods 2) strategy - Correct Answer - "push"- to resellers, who "push" product (B2B) - "pull"- to customers, create demand, pull product downstream (B2C) - hybrid - push and pull Important decisions for strategy - Correct Answer 1) objective - inform: during product introduction - persuade: when market is competitive - remind: maturity: retain/sustain loyalty 2) budget - not easy task. Methods: - affordability- small business, BUT under-spending - % of sales- simple, BUT promotion is source of sales, not result! - competitive parity- disregards CO's niche - objective-and-task - depends on objective, difficult (cause-effect) Factors shaping the promotion methods 3) advertising strategy - message and media - Correct Answer The message - capture attention and engage, BELIEVABLE, BENEFICIAL - today, it is entertaining, ADVERTAINMENT Appeal/execution - slice of life: "typical/normal" people - lifestyle: fits lifestyle (healthy living) - musical or personality: songs, celebrity endorsement - expertise or evidence (scientific, testimonial) New consumer generated messages The media - issues: reach (% of people exposed) Frequency Impact (goal) - types: TV, print, mail, outdoor, internet/digital (google search) - growth of "alternatives" - timing: all year, seasonal, time of week/day, pulsing Advertisinf strategy: the message - Correct Answer Capture attention and engage, believable, beneficial Today, it is entertaining, advertainment Advertising strategy: appeal/execution - Correct Answer Slice of life- "typical/normal" people Lifestyle- fits lifestyle (healthy living) Musical or personality- songs, celebrity endorsement Expertise or evidence (scientific, testimonial) Advertising strategy: the media - Correct Answer Issues: - reach (% people exposed) - frequency - impact (goal) Types: - tv, print, mail, outdoor, internet/digital (google search) - growth of "alternatives" Timing: all year, seasonal, time of week/day, pulsing Factors shaping the promotion methods 4) evaluate effectiveness and ROI - Correct Answer Sales and profits- difficult to measure. 76% do not measure Effects: customer survey, attitudes Additional strategy decisions: organizing (in house or external agency), and international adaption International advertising- standardizing is efficient, adapting is necessary PR - Correct Answer Purpose: company/brand image, region (VisitPA.com), social cause, etc. Tools: community events (Pittsburgh race), press release, co. "Materials/things", social media, blog, lobby Sometimes similar to advertising Appeal to public - vulnerability PR (dominos pizza) Marketing promotion also includes: - Correct Answer Personal selling- interpersonal relationship w/ customer Sales promotion- short term inducements to buy personal selling - Correct Answer done by all organizations past - stereotype - status Present - competent, account manager, educated, customer focused Important - more than advertising (in complex situations) Roles of sales rep - Correct Answer Advocate of employer- negotiate on behalf of seller Advocate of client Work w/ client to solve problem and build relation - directly w/ client for industrial (non-consumer) products (medical equipment) - directly w/ client for household services (real estate) - w/ re-sellers for consumer products (Nike, Heinz, Kraft) possible conflict w/ marketing: PS typically represent customers first, marketing people focus on product, brand, 4Ps Personal selling process - Correct Answer Prospecting/qualifying - identifying new prospects (referrals, internet, cold call) Pre-approach- research client, products, current supplier, barriers Approach- meet for the first time, begin the relation Presentation and demonstration- solutions, listen to customer, efficient presentation - do not: aggression, unpreparedness, deceit, tardiness Objections- questions, clarification - persuasion Closing the sale- agreement, inducements, writing order Follow up- client satisfaction, installation, servicing CRM- relations not transactions, client's on-going needs Managing the sales force - Correct Answer 1. Structure - depends on product line/mix - geography/territory - sales rep per area: fixed responsibility, less travel cost (sporting goods, real estate) - product- SR's product competency; many reps per customer (product reps at hospital) - customer- for large customers (auto producer or WM - dedicated customer relation 2. Size/composition of sales force- depends on account - outside: in the field - service existing accounts and build new ones - inside: by telephone $ internet - continuous contact - support field reps and offer tech support - some customers prefer electronic communication (less time consuming) - growing in importance (EDI) - team: for complex accounts (P&G w/ CVS) - drawbacks: SR's evaluation and reward Human resource management - Correct Answer Recruiting & selecting: important - 30% of SRs generate 60% of sales - qualifications: education, motivation, discipline, personality Selection methods: interviews, exams, simulations, personality, presentation skill, etc. Training - costly, but worthwhile - objectives: product, customer relation, PS process, etc. - E-learning (less costly)- web simulation Compensation- mix (fixed 60 + %, variable 30 + %) - recently more fixed- reduce quick-sale, emphasize CRM Supervision- electronic call plans: weekly/monthly (customers, times, tasks, etc.) A) time management- 30% administrative, 11% selling, 15% travel, etc. b) motivation- quotas, company support, promotion C) evaluation- for reward and feedback - many methods - client feedback is important