1. Distinguish between promotion and the promotional mix. Promotion, therefore, consists of communication activities that inform potential customers about goods, services, images, or ideas to achieve a desired outcome. The specific combination, or blend, of marketing communication channels that a business uses to send its messages to customers is known as the promotional mix 2. Explain the four elements of the promotional mix. Advertising. The most visible element of the promotional mix is advertising—any paid form of nonpersonal presentation of ideas, images, goods, or services. Personal selling. Personal selling is the form of promotion that determines client needs and wants and responds through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Publicity. Publicity is an identity-building tactic defined as any no personal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it. Like advertising, publicity is nonpersonal. o Sales promotion. Have you ever: o Seen a window display? o Used a coupon at a grocery store? o Watched a product demonstration? o Received an instant rebate? o Sampled food products at a grocery store? If so, you are familiar with sales promotion: promotional activities other than advertising, personal selling, and publicity that stimulate customer purchases. 3. What are the advantages and disadvantages of advertising? Advantages Can reach a large audience in a broad geographic area Per contact cost is low. Disadvantages Often tuned out Must be seen multiple times to mean anything Not good for complicated messages 4. In what situations does advertising typically work best? TV and radio commercials Print ads Out-of-home advertisements Catalogs Direct mail Product placement Online ads 5. What are the advantages and disadvantages of personal selling? Advantages Immediate feedback and flexibility Viewed as more credible Ideal for complicated messages and highly specialized, technical products Most effective form of promotion Disadvantages Most expensive form of promotion 6. What are the advantages and disadvantages of publicity? Advantages • Viewed as more credible • Seen as news • Builds goodwill and a positive image for a business Disadvantages • Non personal with little or no direct interaction • Businesses have little control over publicity. 7. What are the advantages and disadvantages of sales promotion? Advantages • Are measurable • Have a low cost per exposure • Attract new customers • Generate excitement • Encourage quick responses • Provide added value • Boost repeat purchases • Help to sell old stock • May help to extend declining product’s life cycle Disadvantages • • • • Are very short-term in nature Are not good for delivering complicated messages Can cheapen a company’s image May cause customers to develop a “no bonus, no buy” attitude 8. Why is the promotional mix important? • • • Plays a key role in obtaining customers Enables businesses to communicate effectively with customers Drives sales Helps company to reach objectives and goals 1. Explain two product considerations that can affect the choice of a promotional mix. Convenience products Specialty products 2. How do customers affect a business’s promotional mix? 3. Explain how channels of distribution can affect the promotional mix. Multiple intermediaries Direct to ultimate consumer Promotional strategies Push pull 4. Describe three company considerations that affect the mix of promotional elements. • Historical perspective • Available funds • Competition