Final Exam Outline

Final Exam Outline - CHAPTER 16 Promotion: communication by...

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CHAPTER 16 Promotion : communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response o Necessary for survival in the marketplace o Promotional strategy : a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion Marketing manager determines the goals of the company’s promotional strategy in light of the firm’s overall goals for the marketing mix Function: to convince target customers that the goods and services offered provide a competitive advantage over the competition Competitive advantage : the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition Promotional Mix : combination of advertising, public relations, sales promotion, personal selling, etc. that most promotional strategies use o Proper if management believes it will meet the needs of the target market and fulfill the organization’s overall goals o Wherever more funds and managerial attention are allocated is seen to be as the most important element of the mix o Advertising : any form of impersonal paid communication in which the sponsor of company is identified Traditional media are most commonly used to transmit advertisements New methods like Web sites, email, blogs and interactive vide kiosks are being used Internet poses problems with consumer privacy Benefit: ability to communicate to a large number of people at one time (low cost per contact, but total cost to advertise is high) o Public Relations : the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interest in, and executes a program of action to earn public understanding and acceptance Helps an organization communicate with its customers, suppliers, stockholders, government officials, employees and the community Can generate favorable publicity : public information about a company, product, service, or issue appearing in the mass media as a news item Companies do not directly pay for publicity, but do spend money on preparing news releases, staging special events and persuading media personnel to broadcast or print publicity messages o Sales promotion : consists of all marketing activities—other than personal selling, advertising and public relations—that stimulate consumer purchasing and dealer effectiveness Usually a short-run tool used to stimulate immediate increases in demand Include free samples, contests, premiums, trade shows, vacation giveaways and coupons Complements advertising by yielding faster sales responses o Personal selling : a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other
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Buyer and seller have specific objectives—buyer may need to minimize cost or assure a quality product, while the seller may need to maximize revenue
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This note was uploaded on 03/14/2011 for the course BMGT 350 taught by Professor Boyd during the Fall '08 term at Maryland.

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Final Exam Outline - CHAPTER 16 Promotion: communication by...

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