is any paid form of nonpersonal presentation of ideas

7.8 Marketing Strategy and Promotion

Learning objectives.

• Understand the role of promotion in the marketing mix and its importance to a company.
• Understand the different ways that a small business can promote its products or services.
• Explain the differences and similarities in the marketing communications mix of online and onground businesses.

Promotion The means by which firms attempt to inform, persuade, and remind customers—directly or indirectly—about the products and brands they sell. , the fourth P in the marketing mix, is now more commonly referred to as marketing communications A more contemporary word for promotion. . Marketing communications can be defined as “the means by which firms attempt to inform, persuade, and remind customers—directly or indirectly—about the products and brands they sell. In a sense, marketing communications represent the ‘voice’ of the company and its brands and are a means by which it can establish a dialogue and build relationships with consumers.” Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 470. Marketing communications are all about getting the word out about a company’s products and services because customers cannot buy what they do not know about, and, in the process, creating more of a two-way relationship with customers than was typical of the more traditional notion of promotion. A further conceptual iteration is the term integrated marketing communications (IMC) The coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program designed to maximize the communication impact on consumers, businesses, and other constituencies of an organization. , which is “the coordination and integration of all marketing communication tools, avenues, and sources within a company into a seamless program designed to maximize the communication impact on consumers, businesses, and other constituencies of an organization.” Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 380. Small-business owners should be familiar and comfortable with all three terms because at least one of them will be the basis of conversations with vendors, employees, and other businesses. However, from a small business management perspective, IMC should be the guiding philosophy for a company.

Prior to selecting and designing any communications, however, objectives must be established for the marketing communications program.

IMC Objectives

Every small business must decide what it wants to accomplish with its IMC plan. Although many IMC plans may be oriented toward a single objective, it is possible for a program to accomplish more than one objective at a time. The problem is that this may be confusing to potential customers. Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 393. IMC objectives can fall into seven major categories: increase demand, differentiate a product (stressing benefits and features not available from competitors), provide more information about the product or the service (more information seen as being correlated with greater likelihood of purchase), build brand equity The value added to a brand by customer perceptions of quality and customer awareness of the brand. (the value added to a brand by customer perceptions of quality and customer awareness of the brand), reduce purchase risk (important for new products and gaining new customers of current products), stimulate trial (to build new brands and rejuvenate stagnant brands), Adapted from Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 393–96. and brand recognition. As with all objectives, IMC objectives must meet the SMART (specific, measurable, achievable, realistic, and time-based) criteria that are described in Section 7.2 "The Marketing Strategy Process" .

Marketing Communications Mix

The marketing communications mix Advertising, sales promotion, events and experiences, PR and publicity, direct marketing, interactive marketing, word-of-mouth communication, and personal selling. for a small business, either pure-play or brick-and-click, will consist of some combination of the following major modes of communication: advertising, sales promotion, events and experiences, public relations (PR) and publicity, direct marketing, interactive marketing, word-of-mouth communication, and personal selling. Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 470. Each mode of communication has its own advantages and disadvantages, which should all be considered carefully before any final selections should be made.

Figure 7.7 The Marketing Communications Mix

Source: Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 473.

Advertising

Advertising Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. is “any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.” Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 472. Advertising is around us all the time—for example, ads are on television and radio, in newspapers and magazines, in train stations and on trains, on the sides and inside of buses, in public restrooms, in taxis, on websites, and on billboards. Ads can also be found in other places, and the locations are limited only by the creativity of the company placing the ads.

Small businesses must choose advertising media Radio, television, newspapers, billboards, the Internet, and magazines. (e.g., radio, television, newspapers, billboards, the Internet, and magazines) based on its product, target audience, and budget. A local travel agency selling spring getaways to college students, for example, might post flyers on campus bulletin boards, run ads in the campus newspaper (for the students) and local newspapers (for the parents), and run ads on the college radio station. [citation redacted per publisher request] . Examples of tried and true advertising media for small businesses include the yellow pages, newspaper and magazine advertising, direct mail, business cards, vehicle advertising, radio and cable television advertising, bench/bus stop advertising, local website advertising, e-mail advertising, eBay listings, community involvement, and cross-promotion (joining forces with other businesses). Susan Ward, “17 Advertising Ideas for Small Businesses,” About.com , accessed December 1, 2011, sbinfocanada.about.com/od/advertising/a/17adideas.htm . Lanee Blunt, “Small Business Advertising: Low Cost Flyers,” Advertising @ Suite 101 , February 11, 2011, accessed December 1, 2011, lanee-blunt.suite101.com/small-business -advertising-low-cost-flyers-a346278 . Even advertising in the big leagues is not out of the question for a small business. Salesgenie.com decided to advertise during Super Bowl XLII in February 2008, choosing to risk major capital to connect with the huge Super Bowl customer base. The Street, “Small Shops Aim for Super Bowl Edge,” MSN Money , February 1, 2011, accessed December 1, 2011, money.msn.com/how-to-invest/small-shops-aim-for-a -super-edge-thestreet.aspx .

Advertising on the Internet is also a consideration for the marketing communications mix of any business with a web presence. According to Lorrie Thomas, author of Online Marketing , Lorrie Thomas, Online Marketing (New York: McGraw-Hill, 2011), 157. online advertising “can rocket your web marketing into the stratosphere” if it is done correctly. If not done correctly, however, it will “blast a giant crater in your budget.” Online advertising includes the following entities: banner ads Image ads that range in size and technical capability. (image ads that range in size and technical capability); e-mail advertising Ads in newsletters, an ad in another company’s e-mail, e-mailing a list with a dedicated message, or a company advertising to its own customers with its own e-mail list. (ads in newsletters, an ad in another company’s e-mail, e-mailing a list with a dedicated message, or a company advertising to its own customers with its own e-mail list); news site advertising Placing ads on news, opinion, entertainment, and other sites that the audience frequents. (placing ads on news, opinion, entertainment, and other sites that the audience frequents); blog advertising Buying ads directly on popular blogs. (buying ads directly on popular blogs); social media advertising Advertising on sites such as Twitter, Facebook, and LinkedIn. (advertising on sites such as Twitter, Facebook, and LinkedIn); and affiliate marketing Company A places an ad for its product on the site of company B. (company A places an ad for its product on the site of company B; company A then pays company B an agreed-on fee when a customer clicks on the ad and buys something.) Lorrie Thomas, Online Marketing (New York: McGraw-Hill, 2011), 159–61. Another possibility is Google AdWords. A small business can promote itself alongside relevant Google search results and on Google’s advertising network. This allows a business to reach people who are already looking online for information about the products and services that a business offers. “Google AdWords: Advertise Your Business on Google,” accessed January 24, 2012, accounts.google.com/ServiceLogin?service=adwords&hl=en&ltmpl=regionalc &passive=true&ifr=false&alwf=true&continue=https://adwords.google.com/um/gaiaauth?apt%3DNone%26ltmpl%3Dregionalc&sacu=1&sarp=1&sourceid=awo& subid=us-en-et-bizsol .

Video Link 7.5

Attracting Consumer Attention through Advertising

Relating ads to the target market, making ads appealing, and including the element of surprise.

videos.smallbusinessnewz.com/2011/01/31/attracting-consumer-attention-through-advertising

Advertising offers several advantages to the small business. For example, advertising is able to reach a diverse and geographically dispersed audience; it allows the seller to repeat a message many times; and it provides the opportunity for dramatizing the company and its products through the artful use of print, color, and sound. However, the audience does not feel obligated to pay attention or respond to an ad. Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 487. Whether the advantages of advertising outweigh the costs and disadvantages is something that must be decided by each small business.

Sales Promotion

Given the expense of advertising and the fact that consumers are exposed to so many advertising messages every day, many companies correctly believe that advertising alone is not enough to get people to try a product a product or a service. Enter lower-cost sales promotion techniques. Sales promotion The variety of short-term incentives to encourage trial or purchase of a product or a service. refers to the variety of short-term incentives to encourage trial or purchase of a product or a service. Examples of commonly used sales promotions include contests, sweepstakes, coupons, premiums and gifts, product samples, rebates, low-interest financing, price discounting, point-of-sale displays, and frequent user or loyalty programs. Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 472; “Sales Promotion Strategy,” Small Business Bible , accessed December 1, 2011, www.smallbusinessbible.org/salespromotionstrategy.html . These promotions can be used by and offer several advantages to small businesses: Chris Joseph, “Sales Promotion Advantages,” Chron.com , accessed December 1, 2011, smallbusiness.chron.com/sales-promotion-advantages-1059.html .

• Attracting new customers with price. A reduced price could lure customers away from the competition. For example, a small electronics store that is competing with a large retailer could offer a discounted price on a popular cell phone for a limited time.
• Gain community favor. By offering a promotion that helps a worthy cause, you can create a good name for the business. Donate a portion of sales to the local food bank, buy clothing for the homeless, or donate to the local animal shelter to help pay veterinarian bills.
• Encourage repeat purchases. Rewards and loyalty programs can be very successful for small businesses. Coffee clubs are popular (buy so many coffees at the regular price and you get one cup free), but this approach can work for sandwiches at a deli, bags of bird food or dog food at the local pet store, shoe repairs at the local cobbler, dry cleaning services, and virtually any other kind of business.
• Entice reluctant customers. Giving away a free product or service is usually a good way to get people to try a product or a service for the first time, the hope being that it will lead to a purchase. However, the product or the service has to be good enough to stand on its own so that when the “free” unit is gone, the person will come back to buy.
• Providing information. It can be very effective if you run a promotion that helps provide information to potential customers to help them make a decision. This works especially well for products or services that are complicated or unfamiliar to customers, for example, software or product usage (particularly for business-to-business [B2B] customers), financial services, investment services, or estate planning. Free onground seminars or webinars or webcasts Seminars or presentations that are delivered online and that are typically an hour in length. (seminars or presentations that are delivered online and that are typically an hour in length) can be very effective at gaining new customers or clients.

Sales promotions can be delivered to the customer in a variety of ways, such as snail mail (US Postal Service), in person, in local new newspapers and regional editions of national magazines, on television and radio, in e-mail, on websites, and in electronic coupons that are sent to a customer’s mobile device. Groupon (see Note 7.132 "Video Clip 7.19" ), which is described as the hottest thing in retail marketing right now, offers customers coupons at local businesses: everything from restaurants to spas to painting lessons to sleigh rides.

Video Clip 7.19

Learn How Groupon Works!

A hot new source of coupons for local businesses.

Events and Experiences

Events and experiences are “company-sponsored activities and programs designed to create daily or special brand interactions.” Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 472. A small business could choose to sponsor a Halloween costume event for pets Jerry Robertson, “Secrets to Low Cost PR for Small Businesses,” Yahoo! Voices , February 14, 2007, accessed December 1, 2011, voices.yahoo.com/secrets-low-cost -pr-small-businesses-193968.html . or an entertainment event, such as a battle of the bands, to raise money for local scholarships. Participation in a local business fair could provide exposure for a product or a service and the opportunity to experience the product if that is possible. A local restaurant could participate in a chili competition. Factory tours and company museums, both of which can also be virtual, can offer great experiences for customers.

There are several advantages to events and experiences: Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 489. (1) A well-chosen event or experience can be very effective because the consumer gets personally involved. (2) Experiences are more actively involving for consumers because they are real time. (3) Events are not hard sell, and most consumers will appreciate the softer sell situation.

Events and experiences also tap into the importance of the customer experience, discussed in Chapter 6 "Marketing Basics" . Today, customers “want products, communications, and marketing campaigns to deliver experiences. The degree to which a company is able to deliver a desirable customer experience—and to use information technology, brands, and integrated communications and entertainment to do so—will largely determine its success.” Bernd H. Schmitt, Experiential Marketing (New York: The Free Press, 1999), 22, 24. By having special events, a small business will stand out from the rest, Jerry Robertson, “Secrets to Low Cost PR for Small Businesses,” Yahoo! Voices , February 14, 2007, accessed December 1, 2011, voices.yahoo.com/secrets-low-cost-pr -small-businesses-193968.html . and they will create desirable publicity for the company.

Public Relations and Publicity

Public relations (PR) Designed to promote a company’s image or its individual products. and publicity An outcome of PR that is produced by the news media and not paid for or sponsored by the business involved. are designed to promote a company’s image or its individual products. Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 472. A small business can also use PR to clarify information in response to negative publicity. (Publicity usually being “an outcome of PR that is produced by the news media and is not paid for or sponsored by the business involved.”) Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 382. Traditional PR tools include press releases and press kits that are sent to the media to generate positive press on behalf of the business. A press kit, the most widely used PR tool, pulls together company and product information to make a good, solid first impression. “Developing a Press Kit for Your Small Business,” AllBusiness , accessed December 1, 2011, www.allbusiness.com/print/445-1-22eeq.html . (Be sure to print the company’s website address on everything.) A press kit can be particularly useful for small businesses, although the smallest of businesses may not see the need. Other common platforms include speeches, seminars (online and offline), brochures, newsletters, annual reports, charitable donations, community relations, and company magazines. Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 472. Increasingly, companies are using the Internet: interactive social media, such as blogs, Twitter, and Facebook; home-page announcements for specific occasions (e.g., messages of sympathy for the victims of a disaster); and e-mail.

Social media services such as Google Alerts and TweetBeep can be very helpful for managing a company’s reputation. Reputation management The process of tracking opinions and comments about a company’s actions and products and reacting to those opinions and comments to protect and enhance the company’s reputation. “is the process of tracking other’s opinions and comments about a company’s actions and products, and reacting to those opinions and comments to protect and enhance the company’s reputation.” Erica DeWolf, “Social Media Tools Should Be Used for PR,” eMarketing & New Media , May 4, 2009, accessed December 1, 2011, ericadewolf.wordpress.com/2009/05/04/social-media-tools-should-be-used-for-pr . Both services notify the business when the company name is mentioned. Addressing extremely negative comments immediately is very important for any small business with a web presence.

Most small businesses are not likely to have PR departments. Instead, there will be one person whose job includes—among many other things—PR and publicity. The key is for PR and marketing to work closely together so that “every piece of communication produced by the company speaks with one voice.” Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 444.

Getting publicity for a small business is usually free. Stories about events and experiences might be of interest to the media. One great idea is to have a group of people outside the business with positive picketing, holding signs such as “Low prices” or “Beware of friendly employees.” This was actually done by a small business, and it resulted in the business being on the front page of the local paper. Jerry Robertson, “Secrets to Low Cost PR for Small Businesses,” Yahoo! Voices , February 14, 2007, accessed December 1, 2011, voices.yahoo.com/secrets-low-cost-pr -small-businesses-193968.html .

Video Link 7.6

Obtaining Publicity for a Business

Information and tips for small businesses.

videos.smallbusinessnewz.com/2009/08/28/obtaining-publicity-for-your-business

PR and publicity tend to be underused by all businesses. However, PR and publicity should be particularly appealing to the small business because of the following three distinct qualities: Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 488–489.

• High credibility. News stories and features are more authentic and credible to readers.
• Ability to catch buyers off guard. PR can reach prospects who prefer to avoid salespeople and advertisements.
• Dramatization. PR has the potential for dramatizing a company or a product.

Direct Marketing

Direct marketing The promotion of a product from the producer directly to the consumer or business user without using any type of channel members. is the “promotion of a product from the producer directly to the consumer or business user without the use of any type of channel members.” Erica DeWolf, “Social Media Tools Should Be Used for PR,” eMarketing & New Media , May 4, 2009, accessed December 1, 2011, ericadewolf.wordpress.com/2009/05/04/social-media-tools-should-be-used-for-pr . Common direct marketing platforms include catalogs; direct mailing; telemarketing; television shopping; electronic shopping; fax mail; voice mail; blogs; websites; Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 473. e-mail; direct response radio, television, and Internet; Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 505. social media, such as Facebook and Twitter; and mobile devices. Because channel members are bypassed, direct marketing normally allows for greater profitability; perhaps more importantly, however, it can develop stronger brand loyalty with customers. Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 504.

Video Link 7.7

What Is Direct Marketing?

A brief explanation of direct marketing.

www.videojug.com/expertanswer/small-business-advertising/what-is-direct-marketing

Direct marketing is about using information to educate, establish trust, and build a company (or someone in it) as an authority. This can be accomplished in multiple ways, such as website copy, a one-time piece of direct mail, a series of articles that build on one another, Lisa Barone, “Webcast: Direct Marketing for Small Businesses,” Outspoken Media , April 16, 2009, accessed December 1, 2011, outspokenmedia.com/online-marketing/webcast-direct-marketing-for-small-businesses . a webcast or webinar, or a blog. There is no one more qualified to educate the market about a need than a small business owner: “They’re the ones who will know their audience and what they’ll find unique, irresistible and compelling. They’re the best people to craft the message. Everything else in the organization can be outsourced, but the knowledge that a small business owner has about the people they serve, that can’t be replicated.” Lisa Barone, “Webcast: Direct Marketing for Small Businesses,” Outspoken Media , April 16, 2009, accessed December 1, 2011, outspokenmedia.com/online-marketing/webcast-direct-marketing-for-small-businesses .

Direct marketing offers several advantages to both the business-to-consumer (B2C) and B2B small businesses: Kris Carrie, “Advantages of Direct Marketing,” Article Dashboard, accessed December 1, 2011, www.articledashboard.com/Article/Advantages-of-Direct-Marketing/587894 .

• Flexible targeting. A business can identify, isolate, and “talk” with well-defined target markets. This can translate into a higher conversion and success rate than if you tried to communicate with everyone in the mass market.
• Customized messages. Can be prepared to appeal to the addressed individual.
• Up-to-date. Messages can be prepared quickly.
• Multiple uses. Direct marketing can be used to sell, but it can also be used to test new markets, trial new products or customers, reward existing customers to reward loyalty, collect information for future campaigns, or segment a customer base.
• Lower cost per customer acquisition. The cost can be significantly less than other marketing methods.
• Control and accountability. Direct marketing offers great control and accountability than other marketing methods.
• Swift and flexible. Direct marketing is swift and flexible in achieving results.

Interactive Marketing

Interactive marketing Online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services. refers to “online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services.” Philip Kotler and David Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 472. Everything is personalized and individualized—from the website content to the products being promoted. Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 558. The audience is engaged with the brand, with customers getting the chance to reshape and market it in their own unique way. Mike Yapp, “10 Best Interactive Marketing Practices,” iMedia Connection , January 9, 2006, accessed December 1, 2011, www.imediaconnection.com/content/7764.asp . Forrester Research forecasts that interactive marketing expenditures will reach $55 billion by 2015, accounting for 21 percent of all expenditures on marketing. The greatest growth is projected to come from social media, with the next biggest growth sector being mobile marketing. Joe Mandese, “Forrester Revises Interactive Outlook, Will Account for 21% of Marketing by 2014,” MediaPost News , July 8, 2009, accessed December 1, 2011, www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=109381 .

Common interactive marketing tools include e-mail, websites, online shopping, videos, webinars and webcasts, blogs, and social media such as Facebook and Twitter. Because e-mail, websites, online shopping, webinars and webcasts have been mentioned previously, the focus here will be on videos, blogs, and social media. Using online videos has become an increasingly popular strategy in small business marketing. Consumers are much more likely to visit a company after viewing its video, and they can be up to 40 percent more likely to make some sort of contact. Karen Scharf, “Small Business Marketing with Video,” Business Know-How , accessed December 1, 2011, www.businessknowhow.com/internet/videomarketing.htm . Online video content is becoming increasingly popular with avid Internet users, so a small business should consider creating a video for its website. The content can be created easily, and it can be posted on the company’s website as well as in other locations on the Internet (YouTube or on the company’s blog, for instance) to get more page views. Sean Rasmussen, “Using Online Videos to Increase Popularity,” Aussie Internet Marketing Blog , July 30, 2009, accessed December 1, 2011, seanseo.com/internet-marketing/using-online-videos . According to Ad-ology’s 2011 Small Business Marketing Forecast, 45 percent of US small businesses with fewer than 100 employees plan to use online video. This reflects the fact that small businesses are becoming increasingly savvy about how to use the Internet to market their products and services. Mike Sachoff, “Small Businesses Plan to Focus on Mobile Marketing and Online Video in 2011,” SmallBusinessNewz , January 18, 2011, accessed December 1, 2011, www.smallbusinessnewz.com/topnews/2011/01/18/small-businesses-plan-to -focus-on-mobile-marketing-and-online-video-in-2011 . Paul Bond Boots , a small US maker of custom-made cowboy boots that are individually handmade to fit, features five really cool videos on its website. Recently, the company has turned to the Internet for most of its sales.

A blog A web page made up of usually short, frequently updated posts that are arranged chronologically. “is a web page made up of usually short, frequently updated posts that are arranged chronologically—like a what’s new page or a journal.” Business blogs, as opposed to personal blogs, are used as a company communication tool to share a company’s knowledge and expertise, build additional web traffic, connect with potential customers, develop niche markets, give the business a human face, help reputation management, and provide a free avenue for press releases. Lorrie Thomas, Online Marketing (New York: McGraw-Hill, 2011), 73–74. For an example, visit Michael Chiarello’s blog at www.michaelchiarello.com . If his name is not familiar, he is the founder of NapaStyle, a high-end small business retailer with both an onground and online presence.

Blogs are fairly simple to set up, and they are a great way to keep website content fresh. However, even though small businesses hear much about blogs these days, creating one must be considered carefully. Blogs today “have evolved into multimedia communities where bloggers (and the blogging community) have grown in size, stature, and impact to eclipse all but the largest media outlets.” Lorrie Thomas, Online Marketing (New York: McGraw-Hill, 2011), 72. But this does not mean that it is essential for every small business to have a blog. Maintaining a blog takes a lot of time and energy—and then there need to be people to read it. After careful consideration, it may be better to focus a company’s promotional efforts elsewhere.

Social media Websites that feature user-generated content or material created by visitors rather than the website publishers and encourage visitors to read and respond to that material. “generally refers to websites featuring user-generated content or material created by visitors rather than the website publishers. In turn, these sites encourage visitors to read and respond to that material.” Robbin Block, Social Persuasion: Making Sense of Social Media for Small Business (Breinigsville, PA: Block Media, December 2010), 2. Social media is changing the way that people communicate and behave. Social media outlets such as Facebook, LinkedIn, and Twitter are, among other things, driving purchases—and they should be seen “like a virtual cocktail party where all attendees can discuss [a company’s] products, services, experiences, and new ideas.” Lorrie Thomas, Online Marketing (New York: McGraw-Hill, 2011), 99.

The top four social media networks are Twitter, Facebook, LinkedIn, and YouTube. This is true in general and for small businesses in particular. Lisa Barone, “Which Social Media Sites Are Most Beneficial?,” Small Business Trends , January 26, 2011, accessed December 1, 2011, smallbiztrends.com/2011/01/which-social-media-site-most-beneficial%E2%80%99.html . Overall, small businesses use social media sites for lead generation, monitoring what is being said about their businesses, keeping up with the industry, improving the customer experience, and competitive intelligence. Lisa Barone, “Which Social Media Sites Are Most Beneficial?,” Small Business Trends , January 26, 2011, accessed December 1, 2011, smallbiztrends.com/2011/01/which-social-media-site-most-beneficial%E2%80%99.html . Many small businesses in the B2B sector are already using social media for business as a resource, to engage in initiatives, or both. However, companies with more than one hundred employees are more active than smaller companies. Lisa Barone, “Study: How Are B2Bs Using Social Media,” Small Business Trends , November 25, 2009, accessed December 1, 2011, smallbiztrends.com/2009/11/b2bs-social-media-study.html .

Despite the hype surrounding social media, and the fact that many small businesses are already connected, small businesses must still consider the use of social media just as carefully as the other modes of marketing communications. Social media has not worked out well for some small businesses that have used it, so each business must decide what social media is expected to do for the company, and then it must be used well and strategically. When considering whether or how to factor social media into an IMC strategy, consider these words from Lisa Barone, cofounder and chief branding officer at Outspoken Media , “In 2011, if you’re not using social media to gain attention over your competitors, you can bet they’re using it to gain attention over you.” Lisa Barone, “Which Social Media Sites Are Most Beneficial?,” Small Business Trends , January 26, 2011, accessed December 1, 2011, smallbiztrends.com/2011/01/which-social-media-site-most-beneficial%E2%80%99.html . This will undoubtedly continue to be the case.

Video Clip 7.20

Social Media

The top five things you should know about social media.

Personal Selling

A small business owner needs to connect with customers before a sale can take place. Sometimes personal selling is the best way to do that. Personal selling The process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a product or a service. , “the process of communicating with a potential buyer (or buyers) face-to-face with the purpose of selling a product or service,” “Personal Selling,” eNotes , accessed December 1, 2011, www.enotes.com/personal-selling-reference/personal-selling-178681 . is absolutely essential in the marketing communications mix of a small business. History has shown that the most successful entrepreneurs have been skilled salespeople who were able to represent and promote their companies and products in the marketplace. “Personal Selling,” eNotes , accessed December 1, 2011, enotes.com/personal -selling-reference/personal-selling-178681 . It stands to reason that successful small business owners should have the same sales skills.

Although personal selling plays an important role in the sale of consumer products, it is even more important in the sale of industrial and business products. More than four times as many personal selling activities are directed toward industrial and business customers than toward consumers. John M. Ivancevich and Thomas N. Duening, Business Principles, Guidelines, and Practices (Mason, OH: Thomson Learning, 2007), 431. Regardless of the type of customer or consumer, however, the objectives of personal selling are the same: “Objectives of Personal Selling,” KnowThis.com , accessed December 1, 2011, www.knowthis.com/principles-of-marketing-tutorials/personal-selling/objectives-of -personal-selling .

• Building product awareness. A salesperson should educate customers and consumers on new product offerings.
• Creating interest. Because personal selling is a person-to-person, and often a face-to-face, communication, it is a natural way for getting customers and consumers to experience a product for the first time. Creating interest goes hand-in-hand with building product awareness.
• Providing information. A large part of the conversation with the customer focuses on product information.
• Stimulating demand. The most important objective of personal selling by far is persuading customers and consumers to make a purchase.
• Reinforcing the brand. Most personal selling focuses on building long-term relationships with customers and consumers. However, strong relationships can be built only over time, and they require regular communication.

Like all other forms of marketing communications, personal selling offers both advantages and disadvantages. On the plus side, personal selling is flexible and dynamic, providing companies with the best opportunity to tailor a message to satisfy customers’ needs. Personal selling’s interactive nature also makes it the most effective promotional method for building relationships with customers, particularly in the B2B market, and it is the most practical promotional method for reaching customers who are not easily reached through other methods. “Advantages of Personal Selling,” KnowThis.com , accessed December 1, 2011, www.knowthis.com/principles-of-marketing-tutorials/personal-selling/advantages -of-personal-selling . Personal selling can help a small business build strong, loyal relationships with customers and consumers.

On the minus side, the biggest disadvantage may be the negative perceptions that many people have of salespeople: pushy, annoying, slippery, and willing to do anything for the sale—whether legal or not. The reality, of course, is that most salespeople (unfortunately, not all) do not fit this stereotype. The successful salesperson is the person who focuses his or her efforts on satisfying customers over the long term as opposed to his or her own selfish interests. Also on the negative side is the high cost of personal selling. Personal sales contacts are very expensive, with the costs incurred (compensation plus sales support) whether the sale is made or not. “Disadvantages of Personal Selling,” KnowThis.com , accessed December 1, 2011, www.knowthis.com/principles-of-marketing-tutorials/personal-selling/disadvantages-of-personal-selling . Then there are the costs of training the sales staff on product knowledge, industry information, and perhaps selling skills. “Disadvantages of Personal Selling,” KnowThis.com , accessed December 1, 2011, www.knowthis.com/principles-of-marketing-tutorials/personal-selling/disadvantages-of-personal-selling . Depending on the size of the company, small businesses will have varying numbers of salespeople, so some of the costs will vary as well.

The traditional sales process is typically seen as a series of six steps: John M. Ivancevich and Thomas N. Duening, Business Principles, Guidelines, and Practices (Mason, OH: Thomson Learning, 2007), 435; Philip Kotler and Kevin Lane Keller, Marketing Management (Upper Saddle River, NJ: Pearson Prentice Hall, 2009), 560–561; Dana-Nicoleta Lascu and Kenneth E. Clow, Essentials of Marketing (Mason, OH: Atomic Dog Publishing, 2007), 489–98.

• Prospecting and qualifying. Locating potential customers who have a need for a product and the ability to pay for it. For example, prospects for a small electric motor company would be all the businesses that use small electric motors. Prospects can be found through a variety of sources, including current customers, trade directories, business associates, and newspaper or magazine articles.
• Preapproach. It is important to learn as much about a prospect as you can. For example, you want to know about the prospect’s needs, attitudes about available products and brands, critical product attributes and benefits desired, and current vendor(s).
• Presentation and demonstration. This is where the salesperson tells the product “story” to the buyer: the product’s features, advantages, benefits, and value. It is important not to spend too much time on product features because benefits and value will most directly influence the purchase decision. It is also important to ask questions and listen carefully to a prospect’s answers because they will provide valuable insights into the prospect’s needs.
• Overcoming objections. You should expect customers to pose objections. The key to overcoming these objections is to maintain a positive approach, ask the prospect to clarify the objections, and respond to the objections by reiterating the major benefits of the product or the service and pointing out additional features, guarantees, service, and anything else that would address the objections.
• Closing. This is when the salesperson asks the prospect to buy the product. The request can be direct, or the salesperson can encourage the purchase by using a trial closing approach like asking, “Would you like us to finance product A for you?” Closing the sale is understandably the most difficult step for many salespeople because of the fear that the prospect will say no.
• Follow-up and maintenance. These activities are necessary for customer satisfaction and repeat business. They are key to establishing the strong long-term relationships that every small business desires and needs. The salesperson should schedule a follow-up call to ensure proper installation, instruction, servicing, and troubleshooting and resolution should any problems be detected. Always remember that unhappy customers will defect to competition—and they will spread negative comments about the company. Because it is much cheaper to retain an old customer than to obtain new ones, it is in a company’s best interests to provide good follow-up and maintenance services.

Although these steps are helpful as a way to summarize the kinds of things that are relevant to personal selling, the Internet has revolutionized the selling process. Thomas Young, “A Selling Revolution: How the Internet Changed Personal Selling (Part 1),” Executive Street , accessed December 1, 2011, blog.vistage.com/marketing/a-selling-revolution-how-the-internet-changed-personal-selling . The traditional process just described has become largely obsolete, with roles changing. Web searches and online content help prospective customers or clients do their own prospecting and qualifying. This eliminates the most time-consuming part of the traditional sales process. A company’s website becomes the first sales presentation and, as a result, is critical in moving a prospect toward a sale. In short, all employees must be fully integrated into web marketing because web marketing is the primary driver of the sales process. The more web-savvy you are, the greater the chances that your selling will beat the competition. Thomas Young, “A Selling Revolution: How the Internet Changed Personal Selling (Part 1),” Executive Street , accessed December 1, 2011, blog.vistage.com/marketing/a-selling-revolution-how-the-internet-changed-personal-selling .

Video Link 7.8

Small Business Selling

An overview of personal selling.

www.videojug.com/interview/small-business-selling

Key Takeaways

• Promotion and marketing communications are relatively synonymous terms.
• IMC is about pulling all the marketing communications together to convey a consistent message.
• Small-business owners should be familiar and comfortable with the terms promotion , marketing communications , and integrated marketing communications (IMC) .
• There are multiple categories of IMC objectives.
• The marketing communications mix for a small business will consist of some combination of advertising, sales promotion, events and experiences, PR and publicity, direct marketing, interactive marketing, and personal selling. This mix is applicable to both pure-play and brick-and-click businesses.
• There is a lot of hype about blogs and social media. They can be very effective, but they have not worked well for all small businesses that have used them. They should be considered carefully before inclusion in a company’s IMC strategy.
• Frank’s All-American BarBeQue has historically taken a very low-key approach to promoting the business, choosing to rely on word-of-mouth communication. Robert believes that Frank needs to increase the sophistication of the marketing communications. Design an IMC plan for Frank’s BarBeQue. Keep the following in mind: (1) Frank’s is a small business with a very limited IMC budget; (2) advertising in prime time and national television are not options; and (3) Frank’s is selling both food and its BBQ sauces.
• Choose two products or services that you purchased recently from small businesses, one from an online business and one from an onground business. The products should be different from those chosen for price. For each product or service, identify the various media that were used to promote the product or the service and analyze the marketing communications mix. Do you agree with the marketing communications mix that was used? What recommendations would you make for change? Adapted from David L. Kurtz, Contemporary Business (Hoboken, NJ: John Wiley & Sons, 2011), 488. Tip : If you are not sure whether an online business can be considered a small business, type in the name of the business plus “corporate HQ” into Google or your preferred search engine. The search should return results that include the number of employees. As long as the company has fewer than five hundred employees, you are all set.

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chapter 12 Flashcards

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing

C) Advertising

Greentech is launching a line of miniature solar chargers for laptops, cell phones, and other electronic devices. The chargers are compact and affordable, and the green energy technology is a value-added benefit for both the company and consumers. Which of the following would qualify as an advertisement for Greentech’s new solar chargers? A) a front-page notice of the release of Greentech’s solar chargers in all leading newspapers B) a press conference to discuss the various benefits, including environmental features C) the use of dedicated sales personnel to explain the qualities of the new solar chargers to retailers D) an endorsement by a national environmental organization to tout the benefits of the new solar chargers E) an online lottery where interested buyers have a chance to win a prize

A) a front-page notice of the release of Greentech’s solar chargers in all leading newspapers

In a company’s total promotion mix, ________ refers to any short-term incentive that encourages the purchase or sale of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations

B) sales promotion

Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling

D) sales promotion

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations

E) public relations

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying in with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue’s products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television

D) holding a press conference to explain the remedial steps that ColaBlue has taken

In a promotion mix, ________ occurs when a firm’s sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling

E) personal selling

Window Concepts has introduced a new line of windows that offer the same benefits as solar panels in reducing heating and cooling costs in homes. The state-of-the-art windows will also contribute to the slowing of global warming while providing energy reliability. The company sends a team of representatives to the National Doors and Windows Trade Show to promote the new line of windows. Which promotion mix tool has Window Concepts used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting

D) personal selling

Which of these activities is NOT designed to engage the firm’s various publics and build good relations with them? A) stories B) sponsorships C) demonstrations D) events E) webpages

C) demonstrations

Jakarta Tankers Inc. transports fossil fuels all over the United States. Recently one of Jarkarta’s trucks wrecked and released thousands of gallons of oil into a freshwater stream near a housing development. Which of these components of the promotion mix should the firm use to handle this problem? A) sales promotion B) advertising C) public relations D) predictive analytics E) personal selling

C) public relations

Which of the following types of promotion tools requires a considerable degree of personal interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

B) personal selling

Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own.

E) They are better equipped to find product and brand information on their own.

Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past.

C) Consumers rely less on marketer-supplied information than in the past.

Rather than just creating and placing “TV ads” or “print ads” or “Snapchat branded stories,” many marketers now view themselves more broadly as ________ managers. A) social media marketing B) content marketing C) integrated marketing communication D) direct marketing E) multi-media marketing

B) content marketing

Lush Lawns, a new landscaping company, uses the same logo and shade of green in all forms of communication including its online ads, truck signage, website, and business cards. Which technique is being used by Lush Lawns to promote its business? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management

D) integrated marketing communications

Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.

A) They are more targeted, social, and engaging.

Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions.

A) Advertisers are increasingly shifting toward digital media.

Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a clear, consistent, and compelling message on the product to each brand contact E) sharing company forecasting details with shareholders

D) delivering a clear, consistent, and compelling message on the product to each brand contact

________ tends to legitimize products, is very expressive, allows brand or company dramatization, and can build up a long-term image for a product. A) Direct mailing B) Telephone marketing C) Door-to-door selling D) Television advertising E) Printed-catalog marketing

D) Television advertising

Which of the following is a disadvantage of advertising? A) It does not allow dramatization of the brand or company. B) It often only provides one-way communication with customers. C) It can be too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.

B) It often only provides one-way communication with customers.

Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company’s offerings. She demonstrates the Dell line of products including desktop computers, laptops, and tablets and fields questions from teachers and administrators alike. This is an example of which promotion tool? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm’s message as news rather than as a sales-directed communication.

C) It is the most expensive promotional tool for companies to utilize.

Surf’s Up, a family-owned business, offers a free surf lesson with the purchase of any surfboard over $200 during the month of May. This is an example of which promotion mix element? A) direct and digital marketing B) public relations C) advertising D) personal selling E) sales promotion

E) sales promotion

Which of the following is most often a difference between advertising and sales promotion? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions.

B) Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived.

When a company issues a press release to announce a sizable donation to a national charity, it is using ________ to generate goodwill and maintain a positive corporate image. A) personal selling B) sales promotion C) public relations D) direct and digital marketing E) advertising

Which of the following is true of public relations? A) It provides quick incentives to make product purchases. B) It emphasizes news and events rather than sales. C) It involves training a dedicated sales force to meet customers. D) It cannot be used to dramatize a product or company. E) It is the most widely used promotional tool.

B) It emphasizes news and events rather than sales.

Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company’s sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season

E) a company sending an e-mail to a customer about a discount on a product during a holiday season

Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration

B) a push strategy

A pharmaceutical manufacturer offers monetary incentives to its sales representatives to promote a new drug to the medical professionals in their respective geographic territories. This is an example of a ________ strategy. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe

Chic Eyewear, a producer of designer eyeglass frames, promotes their new line in national fashion magazines. Chic Eyewear lists the select optical retailers that carry their line at the bottom of their ads. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing

A recent study showed that more than two-thirds of advertisers and their agencies are planning video ad campaigns that ________. A) will only be used for television ads B) tap into televisions core strength of vast reach C) will be seen on multiple viewing platforms D) will only be shown on local television stations E) focus solely on national media outlets

C) will be seen on multiple viewing platforms

In general, digital media can ________ relative to television advertising. A) be more costly B) be more targeted C) be less engaging D) reach more people E) be overutilized

B) be more targeted

Jerry Springer’s Ice Cream Shop is planning a media blitz that will use television ads, print ads in magazines, Facebook ads, Twitter, and other social media platforms. This type of ad campaign is known as a(n) ________ campaign. A) social media B) accelerator C) multiple outlet D) cross-platform E) blitzkrieg

D) cross-platform

Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns

D) setting advertising objectives

“Informing the target market about a price change for a signature cookie dough product through a national TV campaign within three months” is an example of a(n) ________ objective. A) reminder B) comparative C) informative D) advertising E) persuasive

D) advertising

The objective of ________ advertising is to build primary demand. A) reminder B) comparative C) personal D) informative E) persuasive

D) informative

Inglast, a chocolate producer, is faced with a class action suit when customers found pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder

B) informative

The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive

E) persuasive

________ advertising often results in attack ads between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified

B) Comparative

________ advertising primarily maintains brand relationships and is important for mature products. A) Comparative B) Persuasive C) Personalized D) Reminder E) Classified

D) Reminder

Trendy Appliances has introduced a new product, Minute Yogurt, into the yogurt maker appliance market. Minute Yogurt differs from competitive offerings because it takes a minute to blend and a minute to clean. Which type of advertising would be best for promoting Minute Yogurt? A) informative advertising B) reminder advertising C) classified advertising D) comparative advertising E) personalized advertising

A) informative advertising

Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. B) Spending on advertising is calculated after operating expenses and capital outlays are deducted from total revenues. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. D) Spending on advertising is calculated as a percentage of the unit sales price. E) Spending on advertising is based on a competitor’s advertising outlays.

B) Spending on advertising is calculated after operating expenses and capital outlays are deducted from total revenues.

The ________ method of setting an advertising budget typically overlooks how promotion affects sales. A) affordable B) percentage-of-sales C) objective-and-task D) competitive-parity E) adaptive-control

A) affordable

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method

E) percentage-of-sales method

In the competitive-parity method of setting an advertising budget, the budget is set based on A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by the average company in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales

C) the amount spent by the average company in the same industry

According to the text, the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales

B) objective-and-task

Walgreens’ “Red Nose Day” is an example of ________. A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) corporate social responsibility

E) corporate social responsibility

The aim of ________ is to make ads and brand content so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising

B) advertainment

Which of the following is an example of branded entertainment? A) a company placing its product in a movie scene B) a company using a celebrity to endorse a product C) a company airing its advertisements in movie theaters D) a company using an acclaimed movie director to film an advertisement E) a company using a famous song in its advertisement

A) a company placing its product in a movie scene

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example? A) geofencing B) advertainment C) product placement D) vertical integration E) subliminal advertising

C) product placement

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. A) personality symbol B) slice of life C) mood or image D) testimonial evidence E) technical expertise

B) slice of life

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising methods most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle

E) lifestyle

Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement

C) using an animated character or mascot to represent a product in an advertisement

A TV ad promoting how an ordinary person’s life has changed due to considerable weight loss is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy

B) testimonial evidence

Crest toothpaste has used a ________ style of advertising to convince buyers that Crest is better than other brands at fighting cavities. A) testimonial evidence B) technical expertise C) scientific evidence D) mood or image E) fantasy

C) scientific evidence

Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard

A) television

Which of the following media is most suitable for having consumers provide input on product design or features? A) television B) radio C) magazines D) social media E) billboards

D) social media

Marketers need to know how customers connect with an ad and brand idea as a part of the broader brand relationship. This can be achieved by measuring ________ levels. A) media engagement B) reach C) frequency D) listenership E) readership

A) media engagement

Which of the following is a limitation of using digital, mobile, and social media for advertising? A) The costs are high. B) Audience selectivity is low. C) The audience controls content and ad exposure. D) The interactive capabilities are low. E) There is little scope for personalization.

C) The audience controls content and ad exposure.

Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction.

B) It involves high costs.

Which of the following is an example of a firm utilizing public relations as a promotion tool? A) a firm using its personal sales force at an expo to sell its products B) a firm sending its catalog directly to customers through e-mail C) a firm informing customers of special discounts on its website D) a firm providing interesting information about a product to the news media E) a firm using a celebrity to endorse a product in a television commercial

D) a firm providing interesting information about a product to the news media

Which of these functions would fall under the domain of public relations? A) product development B) advertising C) lobbying D) personal selling E) media integration

C) lobbying

CVS Health announced it would no longer sell tobacco products. The firm’s campaign “CVS Quits for Good” is an example of ________. A) a public relation campaign B) self-serving advertising C) bombardment D) community engagement E) a profit-seeking campaign

A) a public relation campaign

A public relations campaign can result in ________. A) loss of revenue B) higher stock prices C) a smaller customer base D) lost market share E) consumer ire

B) higher stock prices

Public relations can have a strong impact on consumers ________. A) if it is backed by political opinion B) if the company uses social media as its primary communication mode C) but typically reaches a smaller audience D) at a much higher cost relative to other promotional activities E) at a much lower cost relative to other promotional activities

E) at a much lower cost relative to other promotional activities

Historically, the use of public relations was often limited ________. A) and primarily used to influence potential stockholders B) because it was ineffective C) since it was often handled by a third-party agency D) since PR employees viewed their primary job as branding E) and used only to create advertising content

C) since it was often handled by a third-party agency

Which of these is NOT a commonly used public relations tool? A) news B) corporate identity materials C) press release D) value proposition E) financial contributions

D) value proposition

One key to a successful PR department is to ________. A) focus the public relations department on more lobbying efforts B) devote approximately 30% of the firm’s advertising budget to PR C) ensure it is integrated into the company’s other marketing and promotion activities D) provide staff with unlimited resources E) have the PR department all engage in volunteer work

C) ensure it is integrated into the company’s other marketing and promotion activities

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marketing management ch 17 Flashcards

1) ________ refers to the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands they sell.

• B) Marketing communications

Page Ref: 476

2) Which of the following elements of the marketing communications mix refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print, broadcast, network, electronic, and display media?

• A) advertising

Page Ref: 478

3) Which of the following elements of the marketing communications mix involves a variety of short-term incentives to encourage trial or purchase of a product or service?

• E) sales promotion

4) Which of the following is an example of a trade promotion?

• C) display allowances

5) Which of the following is an example of a business and sales force promotion?

• C) contests for sales reps

_______ refer to the marketing communications element that involves company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers.

• E) Events and experiences

7) Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications?

• B) public relations and publicity

8) Which of the following elements of the marketing communication mix involves use of mail, telephone, fax, e-mail, or Internet to communicate with or solicit response or dialogue from specific customers and prospects?

• C) direct marketing

9) ________ is an element of the marketing communications mix that involves online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services.

• D) Interactive marketing

10) ________ is an element of the marketing communications mix that involves people-to-people oral, written, or electronic communications that relate to the merits or experiences of purchasing or using products or services.

• C) Word-of-mouth marketing

11) Which of the following elements of the marketing communications mix involves face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders?

• E) personal selling

12) Which of the following is an example of an advertising platform?

• A) posters and leaflets

Page Ref: 479

13) Which of the following is an example of an events and experiences platform?

• C) factory tours

14) Which of the following is an example of a public relations and publicity communication platform?

• A) lobbying

15) Which of the following is an example of an interactive marketing communication platform?

• D) TV shopping

16) Which of the following is an example of a word-of-mouth marketing communication platform?

• A) chat rooms

17) Which of the following is an example of a personal selling communication platform?

• A) sales presentations

18) The starting point in planning marketing communications is a ________ that profiles all interactions customers in the target market may have with the company and all its products and services.

• B) communications audit

19) Along which of the following parameters should marketers evaluate communication options when building brand equity?

• D) efficiency

20) Which of the following factors found in the macromodel of the communications process refers to random and competing messages that may interfere with the intended communication?

Page Ref: 480

21) Which of the following represents one of the major tools for effective communication in the macromodel of the communications process?

22) Which of the following is the correct order of stages that a buyer is assumed to pass through, by the four classic response hierarchy models?

• A) cognitive stage-affective stage-behavioral stage

23) LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers, for both individual consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products?

• C) do-feel-learn

24) All response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence?

• C) real estate

25) When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer choose on which to base the communications model?

• D) learn-do-feel

Page Ref: 481

26) Which of the following steps in the innovation-adoption model of marketing communications corresponds to the cognitive stage that a buyer passes through?

• D) awareness

27) According to the hierarchy-of-effects model, which of the following corresponds to the behavioral stage that a buyer passes through?

• C) purchase

28) According to the hierarchy-of-effects model, which of the following corresponds to the affective stage that a buyer passes through?

• E) conviction

29) Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications?

• C) awareness-knowledge-liking-preference-conviction-purchase

30) Which is the first step to be performed by a marketer in developing effective marketing communications?

• A) identifying a target audience

Page Ref: 482

31) Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________.

• A) brand knowledge

32) Which of the following is the marketing communications objective for a new-to-the-world product, such as electric cars?

• E) establishing category need

33) When Apple introduced the iPod in October, 2001, it was the first-of-its-kind product that offered sizable storage capacity for songs and a portable device that was not seen before in the market. Which of the following is most likely to have been the marketing communications objective for the iPod at the time of its introduction?

• D) establishing product category

34) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a negatively oriented relevant brand need?

• A) normal depletion

Page Ref: 483

35) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need?

• B) social approval

36) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is emphasized by an advertisement for dish-washing gloves?

• C) problem removal

37) One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following relevant brand needs is most likely emphasized by an advertisement for a luxury car?

• B) sensory gratification

Creative strategies refer to _______.

• A) the way marketers translate their messages into a specific communication

Page Ref: 484

A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits.

• B) informational

A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image.

• B) transformational

41) Which of the following ads depict a transformational appeal?

• D) Pringles advertised "Once You Pop, the Fun Don't Stop" for years

42) Which of the following ads depict an informational appeal?

• A) Thompson Water Seal can withstand intense rain, snow, and heat

43) ________ is one of the sources of a spokesperson's credibility that refers to the specialized knowledge that he or she possesses to claim.

• B) Expertise

Page Ref: 485

44) ________ is a source of a spokesperson's credibility that describes how objective and honest the spokesperson is perceived to be.

• D) Trustworthiness

45) Which of the following sources of a spokesperson's credibility describes his or her attractiveness?

• C) likability

46) Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience?

• D) principle of congruity

Page Ref: 486

Which of the following is an example of a personal communications channel?

• C) interactive marketing

Page Ref: 487

48) Which of the following personal communication channels consist of company salespeople contacting buyers in the target market?

advocate channels

) Which of the following personal communications channels consist of family members, neighbors, friends, and associates talking to target buyers?

• C) social channels

50) Top Gear is an award-winning British television series about motor vehicles, mainly cars. It is presented by a set of hosts who test drive new cars and provide reviews on the cars' performance, their prices, and other factors. Which of the following personal communications channels is Top Gear closest to in description?

• A) expert channel

Which of the following is a form of earned media for marketing communication messages?

social network discussions about products

Personal influence in marketing communications carries great weight when ________.

• C) the product suggests something about the user's status or taste

Which of the following is a form of mass communications channel?

public relations

54) Which of the following statements is true of the two-step approach to mass communications?

• D) According to the two-step flow, people interact primarily within their own social groups and acquire ideas from opinion leaders in their groups.

Page Ref: 488

55) Which of the following is a characteristic of the affordable method of establishing a marketing communications budget?

• D) calculated to reflect what the company can spare for marketing communications

Page Ref: 489

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Kelly and Trent use to arrive at the marketing communications budget?

percentage-of-sales method

Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget?

The percentage-of-sales method encourages stability when competing firms spend approximately the same portion of their sales on communications.

Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget?

Dependence of the percentage-of-sales method on year-to-year sales fluctuations interferes with long-range planning.

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They pore over the sales reports and other financial records and determine the amount of resources they can spare for marketing communications, after resources have been allocated to other functions, such as R&D, logistics, etc. What method did Kelly and Trent use to arrive at the marketing communications budget?

affordable method

Kelly is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. They decide to trust in the prevailing collective wisdom of the industry as a whole, and not wanting to instigate a communications war, settle on spending only as much as their nearest market rival does on marketing communications. What method did Kelly and Trent use to arrive at the marketing communications budget?

competitive-parity method

Marketing communications budgets tend to be higher when ________.

there are differentiated products and nonhomogeneous customer needs

Page Ref: 490

Which of the following benefits is offered by sales promotion tools?

Sales promotion tools incorporate some concession, inducement, or contribution that gives value to the consumer.

Page Ref: 491

Which of the following statements correctly reflects a characteristic of public relations as a marketing communications tool?

Public relations can reach prospects who prefer to avoid mass media and targeted promotions.

Janet is a marketing manager with a Injoos, a company that manufactures packaged fruit juices. Knowing that there exist several other companies in the market that offer similar products, Janet decides to build a customer base from among those who prefer to avoid mass media and other targeted promotions. Which of the following marketing communications tools would be her best option to build a favorable impression among the prospective customers?

Which of the following marketing communications tools is most effective at the later stages of the buying process?

personal selling

Page Ref: 492

Which of the following statements is true of the role of advertising in business markets?

Sales representatives can use copies of the company's ads to legitimize their company and products.

Which of the following circumstances are best suited for the use of personal selling?

when the market has fewer and larger sellers

Which of the following marketing communications tools is most effective at influencing customers at the conviction stage of buyer readiness?

Page Ref: 493

Advertising and publicity tools play the most important roles in influencing buying decisions at the ________ stage of buyer readiness.

awareness-building

Which of the following tools or combinations of tools is most influential at the comprehension stage of buyer readiness?

advertising and personal selling

Which of the following marketing communications tools has the highest cost-effectiveness in the introduction stage of the product life cycle?

events and experiences

Which of the following marketing communications tools is most influential at the maturity stage of a product's life cycle?

advertising

Luke is considering the various options available to him to promote an energy-drink, Turbozade, that is seeing decreasing sales volumes after having peaked some time back. Which of the following marketing communications tools should Luke focus marketing efforts on to keep the sales volume up?

sales promotions

Which of the following marketing communications tools is most influential at the reordering stage of buyer readiness?

sales promotion

________ is a measure of communications effectiveness that describes the percentage of target market exposed to a communication.

Page Ref: 494

________ refers to a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.

Integrated marketing communications

Page Ref: 495

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Marketing MCQ chapter 6

Business, professional development.

9 questions

Introducing new   Paper mode

No student devices needed.   Know more

A company's total marketing communications mix consists of a specific blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools?

A) the product mix

B) product line filling

C) the promotion mix

D) the price mix

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________ and includes broadcast, mobile, print, and online forms.

A) sales promotion

B) advertising

C) direct and digital marketing

D) personal selling

E) public relations

The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.

A) direct and digital marketing

B) sales promotion

C) personal selling

D) public relations

Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events?

B) personal selling

Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations?

B) direct and digital marketing

C) horizontal diversification

7) ________ includes sales presentations, trade shows, and incentive programs.

A) Direct and digital marketing

B) Sales promotion

C) Personal selling

D) Public relations

Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________.

C) public relations

D) direct and digital marketing

Which major promotion category uses catalogs, direct mail, e-mail, mobile marketing and social media?

D) advertising

Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information.

A) push strategies

C) the Internet

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