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Market Promotion Exam 1 Essay

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promotion
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the communications process in marketing that is used to create a favorable predisposition toward a brand of product of service
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Promotional mix
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a blend of communications told used by a firm to carry out the promotion process and communicate directly with audiences
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advertising
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a paid mass mediated attempt to persuade
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common promotional tools
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advertising is the most widely used promotional tool but it is still just one part of the promotional mix. it may be combined with contests and websites
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integrated marketing communications
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the process of using a wide range of promotional tools working together to create widespread brand exposure
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advertising campaign
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a series of coordinated promotional efforts that communicate a single theme or idea about the brand
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mass-mediated communication
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communication delivered through a medium designed to reach more than one person, typically a large number- or mass- of people. advertising is mass mediated
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production
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the creation of the message content: 1 the company’s message 2 expectations and assumptions about the target audience 3 the rules and regulations of the medium used
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accommodation
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audiences accomodate competing meanigns and agendas to negotiate a meaning
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limitations
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any mass audience will have different contacts backgrounds, knowledge and goals. therefore, no ad contains a single meaning for all audience members; although they generally yield similar meanings
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audience
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a group of individuals who may receive and interpret promotional messages
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target audience
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a particular group of consumers singled out for an advertising or promotion campaign
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household consumers
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the most conspicuous audience for advertising. under the very heading of consumer adverting, companies can make very fine audience distinctions
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members of business organizations
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an advertising audience that buys business and industrial goods and services. while products and services targeted to this audience often require personal selling, advertising is used to create awarenedd and a favorable attitude among potential buyers
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members of a trade channel
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an advertising audience that includes retailers, wholesalers, and distributers. the promotional tool used most often to communicate with this group is personal selling, because this target audience represents a relatively small easily identifiable group
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professionals
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an advertising audience that includes workers with special training or certification. advertising to professionals is predominantly carried out through trade publications
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trade journals
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magazines that publish technical articles for members of trade
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government officials and employees
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advertising audience that includes employees of government organizations at the federal, state, and local levels. promotion to this target audience is dominated by direct mail, catalogs, and web advertising
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global promotion
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this is typically used for brands that are considered citizens of the world and who’s manner of use does not vary tremendously by culture
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international promotion
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this occurs when firms prepare and place different messages in different national markets outside their home market. often each international market requires unique or original promotion due to product adaptations or message appeals tailored specifically for that market
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national promotion
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this reaches all geographic areas of one nation. it is the kind of promotion we see most often in the mass media in the US market
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regional promotion
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this is carried out by producers, wholesalers, distributers, and retailers that concentrate their efforts in a relatively large, but not national, geographical region
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local promotion
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like regional, this is directed at an audience in a single trading area, wither a city or state
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cooperative promotion
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this is a team approach to promotion in which national companies share promotion expenses in a market with local dealers to achieve specific objectives
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marketing
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the business process of planning and executing the conception, pricing, promotion, and distribution of goods and serves to create an exchange that benefits the consumer and the company
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marketing mix
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balancing the four areas of marketing responsibility and decision making (conception, pricing, promotion and distribution) to achieve the best possible balance
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brand
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a name, term, sign, symbol, or any other feature that identifies one sellers good or service as distinct from those of other sellers
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brand management
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1 information and persuasion 2 brand extension 3 brand loyalty/equity 4 creating image/meaning 5 building and maintaining loyalty in trade channels
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market segmentation
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the process of breaking down a large market into submarkets that are more similar
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differentation
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the process of creating a perceived difference, in the mind of the consumer, between an organization’s brand and the competitions. this definition emphasizes that brand differentiation is based on CONSUMER PERCEPTION
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posititoning
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the process of designing a brand so it can occupy a distinct and valued place in the target consumer’s mind relative to other brands and then communicating this distinctiveness through advertising. positioning depends on a perceived image of tangible or intangible features
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external positioning
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the niche brand will pursue relative to all the competitive brands on the market
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internal positioning
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the niche brand will occupy with regard to other similar brands within the firm
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economies of scale
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this occurs when costs per unit become lower due to lower volumes of production
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inelasticity of demand
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a situation in which consumers are relatively insensitive to price increases for the brand
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primary demand stimulation
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promotion aimes at creating demand for an entire product category. challenging and costly and research evidence suggests that it is likely to have an impact only for products that are totally new not for brand extensions or mature product categories
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selective demand stimulation
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promotion aimed at pointing out a specific brand’s unique benefits compared with the competition
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direct response promotion
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promotion that asks the receiver of the message to act immediately
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delayed response promotion
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promotion that relies on imagery and message themes to emphasize a brand’s benefits and positive qualities to encourage customers to purchase the product at a later date
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brand advertising
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communicates the specific features, values, and benefits of a particular brand offered for sale by a particular organization
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corporate advertising
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meant to create a favorable attitude toward a company as a whole
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impact on gross domestic product
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as a part of the marketing mix, promotion increases GDP indirectly by working with product, pricing, and distribution decisions to stimulate sales
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GDP
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the measure of the total value of goods and services produced within an economic system
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impact on business cycles
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promotion can have a stabilizing effect on downturns in business activity. for this reason many companies choose to increase advertising during times of recession
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impact on competition
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promotion can stimulate competition and therefore motivate firms to strive for better products, better production methods, and other competitive advantages that ultimately benefit the economy as a whole. promotion can also act as a barrier to competition because it can be cost-prohibitive
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impact on pricing
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the cost of advertising is built into product costs, which are ultimately passed on to consumers. however, this should be considered with cost savings that lower the price- the reduced time and effort a consumer spends searching for a product or service and economies of scale
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impact on value
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promotion helps create value in the minds of consumers so tha they will purchase the brand. value in turn helps determine what we invest in the economy
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value
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refers to consumers perception that a brand provides satisfaction beyond the cost incurred to obtain that brand
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symbolic value
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refers to what a product or service means to consumers in a nonliteral way. a brand can symbolize a person’s idea about their personality
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consolidation
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into giant full service advertising agencies to provice a large array of fully integrated services. limitations of these giant agencies include a possible lack of specialization and creativity of smaller shops, conflicts of interest with multiple businesses, unwieldy size and debt. the unconsolidation of some of these agencies seems inevitable
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narrower media control
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due to relaxed FCC regulations and media consolidation
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media clutter
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due to new and increased media potions and resulting in fewer focused media outlets to reach target audiences
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consumer control
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has increased due to interactive media such as internet, social media, DVRs, etc
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marketers
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are business, not-for-profit, and government organizations that use advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for their brands
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Marketers include
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manufactuerers and service firms; trade resellers; federal, state, and local governments, social and not for profit organizations
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marketers are responsible for
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who hire advertising and promotional agencies are responsible for defining and managing the brand values and abjectives as well as the market position, target and supply/demand chains
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advertising agency
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is an organization that provides creative and business services to clients in planning, preparing and placing advertisements
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promotion agencies
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handles specific promotional efforts, including sampling event promotions or promotional tie ins
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external facilitators
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organizations or individuals that provide specialized services to marketers and agencies that may beed more expertise in areas such as research, consulting, production and software
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media organizations
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own and manage the media access to consumers
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target audience
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are the consumers advertising and promotional efforts are directed towards, if there is no audience no communication can take place
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full service agencies
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include an array of advertising professionals to meet all the advertising needs and even more promotional needs of their clients. these firms can be large medium or even mall in size
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creative boutiques
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emphasize creative concept development, copywriting, and artistic services. a marketer can employ this alternative for the strict purpose of infusing greater creativity into the message theme or individual advertisement
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interactive agencies
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help advertisers prepare communications for new media such as the internet, podcasting interactive kiosks css and interactive TV. they focus on ways to use web based solutions for direct marketing and target market communications
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in house agencies
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advertising departments in a firm that take responsibility for the planning and preparation of advertising materials. this offers greater coordination and control of all phases of the IMC process, marketer’s personnel have direct control over and knowledge of marketing activities and the ability to cut ours ode spening. initiations include a possible lack of objectivity, resources and specialized expertise
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media specialists
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organizations that specialize in buying media time and space and that offer media strategy consulting to advertising agencies and advertisers. strategic coordination of media and promotional efforts has become more complex because of the proliferation of media options and extensive use of promotional tools beyond advertising
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direct marking agencies and database agencies
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maintain and manage large databases of mailing lists to target customers. they also develop direct-marketing campaigns and promotional materials and execute campaigns
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fulfillment centers
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ensure consumers receive products ordered in response to direct marketing efforts
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E-commerce agencies
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handle a variety of planning and execution activities related to promotions using electronic commerce. they differ from intereative agencies. rather than creating websites or banner ads they help firms conduct all forms of promotion (sweepstakes, coupons etc) though electronic media particularly the internet
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sale promotion agencies
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design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers
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consumer sales promotion
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focues on price-off deals, coupons, sampling, rebates and premiums
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trade market sales promotions
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designed to help advertisers use promotions aimed at wholesalers, retailers, vendors, and trade resellers, such as incentive programs, trade shows, sales force contests, in store merchandising, and point of purchase materials
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event planning agencies
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are experts in finding locations, securing dates, and putting together a team of people to pull of a promotional event
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design firms
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provide experts such a designers and graphics specialists
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designers
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specialize in the execution of creative ideas and efforts by designing logos and other visual promotional pieces
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public relations firms
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manage an organization’s relationships with the media, the local community, competitors, industry association and government organizations. their tools include press releases, feature stories, lobbying, spokespersons, and company newsletters
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account services
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workt with clients to determine how the brand can benefit most from promotion and then to develop a complete promotion plan. account service managers work with the creative and media services to ensure the best promotional message is delivered via most effective media strategy. account services also woks to keep various agency teams on budget and schedule
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marketing research serves
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locate studies (conducted by research agencies and organizations) that relate to the clients market or promotional objectives. this department also helps translate research data for the client or other departments and may engage in some consumer testing to check the efficacy of the promotional message
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account planners
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coordinate research efforts to ensure that the input is included at each stage of the campaign development
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creative services
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come up with the concepts that express the value of a company’s brand in interesting and memorable ways. clients will push their agencies hard to come up with interesting and expressive ways to represent the brand
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production servies
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include producers (and sometimes directors) who take creative ideas and turn them into advertisements, direct mail pieces or events materials
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media planning and buying serves
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full service advertising agencies also provide media planning and buying serves similar to those of the specialized agencies to determine how a clients message can most effectively and efficiently reach the target audience
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administrative services
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manage the agency’s business affairs. agencies have personnel departments, accounting, and billing departments and sales staffs that go out and sell the agency to clients. the traffic department is responsible for monitoring projects to be sure that deadlines are met
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commission system
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based on agreed upon percent (traditionally 15%) some agencies and clients wonder if this system encourages agencies to choose the most expensive method rather than the most effective
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markup charges
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based on adding percentage change to a variety of services the agency purchases from outside suppliers. typical markup is 17.65 to 20 percent
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fee systems
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an agreed upon hourly rate across all services. fixed fee or contract set between client and agency. advertising agencies are often opposed to this system arguing that creativity cannot be measured in work hours
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pay for results
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programs use results criteria of communications objectives such as the target audiences brand aware sales volumes are not used as result criteria because they are also related to factors ouside the agency’s control
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marketing and advertising research firms
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marketing research firms perform original research for marketers have data available for a fee
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consultants
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specialize in areas related to the promotional process. can provide expert advice on marketing planning etc
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production facilitators
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provide the elements to produce a broadcast production or print advertising . this is the area where advertisers rely most heavily on external facilitators
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software firms
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provide software that gathers and analyzes data on the behavior of web surfers, streams audio and video files and manages relationships with trade partners
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broadcast media
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include television and radio
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support media
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include outdoor ads, directories, premiums, point of purchase displays, event sponsorships and brand placements in entertainment
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media conglomerates
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own multiple media outlets usually including broadcast cable, film, print, and internet organizations