Exam 16: Using Effective Promotions

Direct mail is usually the best advertising medium to reach specific target markets and ranks number one in overall advertising expenditures.

It is important to design promotional efforts specifically for individual countries since sometimes the brand is not appealing in the targeted country. For example, a Japanese company tried to use English words to name a popular drink and called it Pocari Sweat.

As a salesperson in the B2B market, Patty regularly calls on clients to stay informed of their needs or problems. Her objective is to develop solutions to meet their needs and resolve their problems. The Internet allows Patty to track products in the supply chain and to learn about pricing and promotions that would be of interest to her clients. When Patty works with her existing clients there is no need for the step of the B2B selling process.

The strategy of directing advertising and sales promotion toward consumers to stimulate them to request the products from their local retailers is called a:

Which of the following media enables firms to quickly change their advertising message?

Personal selling provides the most efficient element of the promotion mix for a firm attempting to reach a large, homogeneous group of consumers.

A allows B2B buyers to see products on the Internet 24 hours a day, 365 days a year without having to leave their office.

The purpose of institutional advertising is to create an attractive image for an organization.

changes the relationship between buyers and sellers from a monologue to a dialogue in which information is shared to create mutually beneficial exchanges.

Mini-Case The Xer-Wise Corporation manufactures and markets high quality home exercise equipment. The firm has just developed a new piece of equipment that top executives believe will be a big seller if promoted correctly. The new product uses a system of adjustable weights that can be arranged in various ways to allow the user to perform exercises that tone all major muscle groups. Additionally, unlike other strength building machines, this equipment also incorporates a recumbent bicycle to provide a complete aerobic workout. The entire piece of equipment is easy to assemble, and when not in use it can be folded into a compact unit that is easy to store. A group of fitness experts have tested the equipment and have provided rave reviews. Company executives believe that this product, called the MuscleMaster, will appeal to busy young adults living in relatively small apartments. Melody Fitt and Tom Trym have been assigned the responsibility of developing a promotion mix for this product. The team of Fitt and Trym is convinced that they can develop a successful promotion mix for this outstanding product. -Tom and Melody are considering the extensive use of ads in fitness magazines and a direct mail campaign targeted at people who have bought other products made by Xer-Wise. Since these messages are geared directly to customers, it is clear that Tom and Melody want to implement a strategy.

The effectiveness of magazine advertising is reduced by its:

Magazines such as People, Sports Illustrated, and Business Week pay for much of the cost of producing their publications by selling advertising space in the magazines.

Compared to other promotional tools, publicity:

Newspapers, radio, and the Yellow Pages are especially attractive to local advertisers.

Personal selling involves the face-to-face presentation and promotion of goods and services.

refers to any paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message.

Online advertising allows advertisers to see how many people have clicked on an advertisement and how much of it the potential customer has read or watched.

Magazine advertising main strengths are high visibility, repeat exposures, and basically very low cost.

Firms with a very limited advertising budget would be very unlikely to use advertising.

Television (broadcast and cable) and direct mail are the top two advertising media when ranked by total expenditures.