Directions: Please answer each of the following questions and provide examples from the text, if applicable.
Each response should be written in complete sentences and be at least 1-2 paragraphs in length. 1. What is a promotional strategy? Explain the concept of a competitive (differential) advantage in relation to promotional strategy. Promotional strategy is the way a company or business goes about choosing the most appropriate mix of personal selling, advertising, sales promotion, and public relations.Its main function is to convince its target market that the goods and services it offers provide a competitive advantage over its competitors. Competitive advantage as explained by Lamb, Hair, and McDaniel, “is the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition,” (p.
472). This explanation sufficiently explains the relation between promotional strategy and competitive advantageHow do the different stages of the AIDA concept of consumer involvement affect the promotional mix?The different stages of the AIDA (Attention, Interest, Desire, and Action) concept of consumer involvement affect the promotional mix by the sales person being more affective at creating customer interest for goods and/ or services and at creating desire. A good example of this is the success of the iPod by Apple as explained by Hair, Lamb, and McDaniel where the iPod, with each step of its innovation regenerated the cycle of attention, desire, interest, and action by consumers (p.484). Another way that the AIDA concept can affect promotional mix is by using public relations.
In doing so, a business stands to gain or attract attention and build goodwill with its target market. This can be done by sponsoring events that benefit a worthy cause such as breast cancer thereby projecting a positive image of the business in the minds of its target market.Explain the Integrated Marketing Communication concept.The Integrated Marketing Communication (IMC) concept according to the lecture notes for this module is the careful coordination of all promotional messages for a product or service to assure consistency of messages at every contact point where a company meets the consumer. This therefore tells me that IMC is a marketing process designed to ensure that all messaging and communication strategies are unified and spread the same message across all channels (be they traditional or nontraditional) and most importantly, are centered around the target market/ consumer/ customer.Discuss the reasons why new brands with a smaller market share spend proportionately more on advertising than brands with a larger market share.
New brands with a smaller market share spend more because unlike older larger brands, they are advertising to gain their target market’s attention whereas the older brands are simply advertising to maintain their share of the market. Lamb, Hair, and McDaniel provide us an excellent example where, “a market leader like Johnson & Johnson spends proportionately less on advertising than a newcomer like Jergens.” (p. 491).The other reason why new brands tend to spend more in advertising is because it is a necessary step in gaining the exposure needed to penetrate their target market’s perceptual defense and gain their attention, and ultimately affect their actions.
5. At what stage in a product's life cycle are pioneering, competitive, and comparative advertising most likely to occur? Give a current example of each type.Pioneering advertising would be suitable early in a product’s life cycle, preferably while it is still in development and way prior to its release date since its purpose is to inform consumers of the arrival of a completely new product or service and explain how it would benefit its target market. Good examples that come to mind would be Apple’s pioneering advertising of the first generation iPad back in 2010, or the recently launched Xbox One gaming console.
This method of advertising is also very prevalent with movies.Competitive advertising would be suitable during the growth phase of a product’s life cycle since its goal is to influence demand for a specific brand. My favorite examples of competitive advertisement would be Coke versus Pepsi (I prefer Coke,J) and the iPhone versus Galaxy phones. Comparative advertising would be suitable during a products maturity phase of a products life cycle since this is where products experience strong competition from their competitors.
My favorite example of this form of advertising is the one provided by Lamb, Hair, and McDaniel about Mac versus PC where Apple uses comparative advertising to portray the PC (and everything and everyone associated with it) as stodgy and constantly losing to the hip, cool Mac, (p. 495). Another comparative form of advertising that still amuses me to this day is Barack Obama versus Mitt Romney where each one was trying to sell themselves as the better candidate while bashing each other. And to imagine the millions of dollars they spent.
