Marketing Management, Millenium Edition - epiheirimatikotita.gr

media by establishing the ad’s desired reach, frequency, and impact and then choosingthe media that will deliver the desired results in terms of circulation, audience,effective audience, and effective ad-exposed audience; and (e) evaluate the communicationand sales effects of advertising.3. Sales promotion consists of a diverse collection of incentive tools, mostly short term,designed to stimulate quicker or greater purchase of particular products or servicesby consumers or the trade.4. Sales promotion includes tools for consumer promotion (samples, coupons, cashrefund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties,tie-in promotions, cross-promotions, point-of-purchase displays, and demonstrations);trade promotion (prices off, advertising and display allowances, and freegoods); and business- and sales force promotion (trade shows and conventions,contests for sales reps, and specialty advertising).5. In using sales promotion, a company must establish its objectives, select the tools,develop the program, pretest the program, implement and control it, and evaluatethe results. Most people agree that sales promotion works to increase sales and marketshare in the short run, but does not have much effect in the long run. In addition,marketers face a series of challenges in most forms of sales promotion,especially the high costs of supporting them.6. A public is any group that has an actual or potential interest in or impact on a company’sability to achieve its objectives. Public relations (PR) involves a variety of programsdesigned to promote or protect a company’s image or its individual products.Many companies today use marketing public relations (MPR) to support their marketingdepartments in corporate or product promotion and image making. MPRcan affect public awareness at a fraction of the cost of advertising, and is oftenmuch more credible. The main tools of PR are publications, events, news, speeches,public-service activities, and identity media.7. In considering when and how to use MPR, management must establish the marketingobjectives, choose the PR messages and vehicles, implement the plan carefully,and evaluate the results. Results are usually evaluated in terms of number ofexposures and cost savings; awareness, comprehension, or attitude changes; andsales-and-profit contribution.A P P L I C A T I O N SC O N C E P T S1. Your company knows that bad publicity could have a lasting negative effect on itsfuture, yet it wants all levels of management to feel comfortable meeting the presswith both good news and bad news. Individually or with a group, assist the public-relationsstaff in developing a 10-point media interview checklist. This checklistwill be used by all managers who might possibly be questioned by either theprint or electronic media.Two points to get you started:■ If a reporter calls, determine the reason for the call and the information sought. If youcan’t talk at the time or if you need additional information, promise to call the reporterback before his or her deadline. Then make sure you do it.■ Don’t expect the news story to be exactly the way you would have reported it or writtenit. Expect some confusion in the facts, but if the mistakes aren’t major, don’t askfor a correction.2. Suppose a brand of aftershave lotion will be marked down $.09 for a limited period.(In other words, the manufacturer will sell the item to retailers or wholesalersfor 9 cents less than its normal price.) The item sells regularly for $1.09, of which$.40 represents a contribution to the manufacturers’ profits before marketing 611