Marketing HW 8

Name and define the five promotion mix tools for communicating customer value.
Advertising- any paid for of non personal presentation and promotion of ideas, goods and services

Sales promotion- short term incentives to encourage the purchase of sale of a product of service

Personal selling- personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships

Public relations- building good relations with the company’s various publics by obtaining favorable publicity

Direct marketing- direct connections w carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships

Compare and contrast push and pull promotion strategies. Which promotion tools are most effective in each?
Pull strategy- a company spends a lot of money consumer advertising and promotions to induce final consumers to buy the product and create demand that pulls the product through the channel; advertising and consumer promotion

Push strategy- promotional strategy in which the sales force and trade promotion are used to push the product through the channels; trade promotion and personal selling

Name and describe the four common methods for setting total advertising budgets.
Affordable method- setting the promotion budget at the level management thinks the company can afford

Percentage-of-sales method- setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

Competitive-parity method- setting the budget to match competitors’ outlays

Objective-and-task method- defining the budget by specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing these tasks

Define the terms reach, frequency, and impact.
Reach- a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time

Frequency- a measure of how many times the average person in the tarot market is exposed to the message

Impact- the qualitative value of message exposure through a given medium and must be determined by the advertiser