academicexperts

Part 1: 
In your opinion, can a business or organization survive only using digital promotion (social media)? Please defend your answer and present examples.
Part2: 
Please read and answer questions at least a paragraph 
1. Identify and briefly describe the four promotional methods an organization can use in its promotion mix. 
(Please read to answer question 1) 
Title:The Promotion Mix 
Several promotional methods can be used to communicate with individuals, groups, and organizations. When an organization combines specific methods to manage the integrated marketing communications for a particular product, that combination is the product promotion mix for that product. The four possible elements of a promotion mix are advertising, personal selling, public relations, and sales promotion. For some products, firms use all four elements; for others, they use only two or three. In this section, we provide an overview of each promotion mix element; they are covered in greater detail in the next two chapters.  
-Advertising 
Advertising is a paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media, including television, radio, the internet, newspapers, magazines, video games, direct mail, outdoor displays, and signs on mass transit vehicles. Advertising is changing as consumers’ mass media consumption habits are changing. Companies are striving to maximize their presence and impact through digital media; ads are being designed that cater to smaller, more personalized audiences; and traditional media like newspapers are in a decline due to a drop in readership. Individuals and organizations use advertising to promote goods, services, ideas, issues, and people. Being highly flexible, advertising can reach an extremely large target audience or focus on a small, precisely defined segment. For instance, Sonic’s advertising focuses on a large audience of potential fast-food customers, ranging from children to adults, whereas advertising for Gulfstream jets aims at a much smaller and more specialized target market. 
Advertising offers several benefits. It is extremely cost-efficient when it reaches a vast number of people at a low cost per person. For example, the cost of a 4-color, full-page advertisement in the national edition of TIME magazine costs $366,600. With a circulation of 3 million, this makes the cost of reaching roughly a thousand subscribers $122. Advertising also lets the source repeat the message several times. For example, Subway promotes a different 6-inch sub of the day for $3.50 in its “Life’s Important Days” campaign which relates significant life changes to the Subway Sub of the Day. Furthermore, advertising a product a certain way can add to the product’s value, and the visibility an organization gains from advertising can enhance its image. For instance, incorporating touchable elements that generate positive sensory feedback in print advertising can be a positive persuasive tool. At times, a firm tries to enhance its own or its product’s image by including celebrity endorsers in advertisements. Peyton Manning, former quarterback for the Denver Broncos, does celebrity endorsements for Oreos, Gatorade, Direct TV, Nationwide Insurance, and Buick. Garnier partnered with actress Mandy Moore to endorse its Nutrisse Nourishing Color Creme hair dye. The advertisement shows Moore happily showing off her hair and notes that the actress uses shade #53 Medium Golden Brown. By using Moore as an endorser, Garnier is able to capitalize on her status as a celebrity. On the other hand, there are downsides to using celebrity endorsers when they act inappropriately. Nike has terminated or suspended contracts with celebrity endorsers for domestic violence allegations. Advertising has disadvantages as well. Even though the cost per person reached may be relatively low, the absolute dollar outlay can be extremely high, especially for commercials during popular television shows and those associated with popular websites. High costs can limit, and sometimes preclude, the use of advertising in a promotion mix. Moreover, advertising rarely provides rapid feedback. Measuring its effect on sales is often difficult, and it is generally less persuasive than personal selling. There are online sources, like RetailMeNot, that house coupon codes for many retailers. The use of a coupon code allows retailers to track the use and appeal of varying promotional offers. 
Personal Selling 
Personal selling is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation. The phrase purchase products is interpreted broadly to encompass acceptance of ideas and issues. Personal selling is most extensively used in the business-to-business market and also in the business-to-consumer market for high-end products such as homes, cars, electronics, and furniture. Personal selling has both advantages and limitations when compared with advertising. Advertising is general communication aimed at a relatively large target audience, whereas personal selling involves more specific communication directed at one or several individuals. Reaching one person through personal selling costs considerably more than through advertising, but personal selling efforts often have greater impact on customers. Personal selling also provides immediate feedback, allowing marketers to adjust their messages to improve communication. Such interaction helps them determine and respond to customers’ information needs. 
When a salesperson and a customer meet face-to-face, they use several types of interpersonal communication. The predominant communication form is language, both spoken and written. A salesperson and customer frequently use kinesic communication, or communication through the movement of head, eyes, arms, hands, legs, or torso. Winking, head nodding, hand gestures, and arm motions are some forms of kinesic communication. A good salesperson can often evaluate a prospect’s interest in a product or presentation by noting eye contact and head nodding. Proxemic communication, a less obvious form of communication used in personal selling situations, occurs when either person varies the physical distance separating them. When a customer backs away from a salesperson, for example, he or she may be displaying a lack of interest in the product or expressing dislike for the salesperson. Touching, or tactile communication, is also a form of communication, although less popular in the United States than in many other countries. Handshaking is a common form of tactile communication both in the United States and elsewhere. Sales managers need a variety of skills to oversee the sales force. These skills include interpersonal, technical, and strategic skills. The importance of these different types of skills depends largely on the level of management. For instance, sales managers need strong leadership skills and must be able to use sales management technology to track and control sales strategies. A salesperson, however, needs extremely strong interpersonal skills, product knowledge, and needs to be likeable and responsive to customer needs.  
Public Relations 
Although many promotional activities focus on a firm’s customers, other stakeholders—suppliers, employees, stockholders, the media, educators, potential investors, government officials, and society in general—are important to an organization as well. To communicate with customers and stakeholders, a company employs public relations. Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Maintaining a positive relationship with one or more stakeholders can affect a firm’s current sales and profits, as well as its long-term survival. When United Record Pressing LLC announced its expansion in Nashville, it sent many signals for the company which produces 30 to 40 percent of all vinyl records available in stores. It signaled a resurgence in the sales of vinyl record albums to consumers; a strengthening business model and growth mode for this privately held company; and a commitment to the rich history, dating back to 1949, to retain the original building on Chestnut Street as “an important place in musical history.” 
Public relations uses a variety of tools, including annual reports, brochures, event sponsorships, and sponsorship of socially responsible programs aimed at protecting the environment or helping disadvantaged individuals. The goal of public relations is to create and enhance a positive image of the organization. Increasingly, marketers are going directly to consumers with their public relations efforts through social media. Pampered Chef placed content on YouTube that shows consumers how to make certain recipes. This content familiarizes consumers with Pampered Chef and positions the organization as a helper in the kitchen. 
Other tools arise from the use of publicity, which is a component of public relations. Publicity is nonpersonal communication in news story form about an organization or its products, or both, transmitted through a mass medium at no charge. A few examples of publicity-based public relations tools are news releases, press conferences, feature articles, and social media sites such as YouTube and Twitter. For example, General Motors made headlines as the first automaker to broadcast on Facebook Live when they gave its Facebook fans an up-close look at a new car model. To generate publicity, companies sometimes give away products to celebrities in the hope that the celebrities will be seen and photographed with the product, and those photos will stimulate awareness and product trial among their fans. Grammy nominees receive a gift bag known as the “Swag Bag.” These bags can be worth around $30,000 and can consist of luxury products such as a 10-year supply of Oxygenetix Breathable Foundation and Oxygenated Moisturizer worth up to $13,400, a week-long trip to the Golden Door spa, worth $8,850, as well as other high-end products and services. Donors of the gifts count on the publicity to create awareness of their products and also hope high visibility entertainers will use their products. Public relations efforts may be the responsibility of an individual or of a department within the organization, or the organization may hire an independent public relations agency. 
Unpleasant situations and negative events, such as product tampering or an environmental disaster, may generate unfavorable public relations for an organization. Subway gained significant negative press for employing spokesperson Jared Fogle who lost around 200 pounds eating Subway sandwiches. Although the company made millions from the partnership, Subway had to sever ties with Fogle when he was charged with the possession and distribution of child pornography among other charges and was sentenced to 16 years in prison for his misconduct. To minimize the damaging effects of unfavorable coverage, effective marketers have policies and procedures in place to help manage any public relations problems. Often these plans are called crisis management plans and attempt to anticipate what can go wrong and how to respond. 
Public relations should not be viewed as a set of tools to be used only during crises. To get the most from public relations, an organization should have someone responsible for public relations either internally or externally and should have an ongoing public relations program. 
Sales Promotion 
Sales promotion is an activity or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers. Examples include free samples, games, rebates, sweepstakes, contests, premiums, and coupons. Sales promotion should not be confused with promotion; sales promotion is just one part of the comprehensive area of promotion. Marketers spend more on sales promotion than on advertising, and sales promotion appears to be a faster-growing area than advertising. Coupons and coupon codes are important to retailers and manufacturers. Brands such as Werther’s Original use coupons to promote their products as shown in the Werther’s Original Sugar Free ad. The advertisement encourages consumers to try the product with a 50 cents off coupon. Generally, when companies employ advertising or personal selling, they depend on these activities continuously or cyclically. However, a marketer’s use of sales promotion tends to be less consistent. Many products are seasonal. Toys may be discounted in January after the holiday selling season to move excess inventory. Marketers frequently rely on sales promotion to improve the effectiveness of other promotion mix elements, especially advertising and personal selling. Coupons appear to be more effective for food and packaged goods marketers. Nine out of ten Millennials use coupons, using coupon code websites such as coupons.com, Ebates, and traditional paper coupons. Mobile devices are a personal technology, so they pose an unusual opportunity to reach consumers wherever they go. Mobile internet usage recently surpassed desktop usage. Mobile apps are used as tools to engage the consumer through sales promotion items such as coupons in close proximity to the consumer and retailer. An effective promotion mix requires the right combination of components. To see how such a mix is created, we now examine the factors and conditions affecting the selection of promotional methods that an organization uses for a particular product. 
2. Should organizations be allowed to promote offensive, violent, sexual, or unhealthy products that can be legally sold and purchased?  
Why?  Support your answer.   
(please read to answer question 2)  
Title: Should Potentially Harmful Products Be Promoted 
Finally, some critics of promotion, including consumer groups and government officials, suggest that certain products should not be promoted at all. Primary targets are products associated with violence and other possibly unhealthy activities, such as handguns, alcohol, and tobacco. Cigarette advertisements, for example, promote smoking, a behavior proven to be harmful and even deadly. Tobacco companies, which spend billions on promotion, have countered criticism of their advertising by pointing out that advertisements for red meat and coffee are not censured, even though these products may also cause health problems. Consider the advertisement for Natural American Spirit. The company uses big letters to emphasize its American origins, organic tobacco, and lack of additives. The image of hands depicted as holding dirt reinforces this sustainability image. It also states in large letters that these benefits do not mean that its products are safer than other cigarettes. Despite these disclaimers, critics believe the marketing of these positive claims could deceive people into believing the cigarettes are safer because they are more eco-friendly. On the other hand, those who defend such promotion assert that, as long as it is legal to sell a product, promoting that product should be allowed. 
3. Compare and contrast price and nonprice competition.  
Describe the conditions under which each form works best. 
(please read to answer question 3) 
Title: Price and nonprice competition 
The competitive environment strongly influences the marketing-mix decisions associated with a product. Pricing decisions are often made according to the price or nonprice competitive situation in a particular market. A product offering can compete on either a price or a nonprice basis. Price competition emphasizes price as the product differential. Prices fluctuate frequently, and price competition among sellers is aggressive. A price war involves two or more companies engaging in intense price competition. Nonprice competition emphasizes product differentiation through distinctive features, service, product quality, or other factors. Establishing brand loyalty by using nonprice competition works best when the product can be physically differentiated and the customer can recognize these differences. 
Price Competition  
When choosing to engage in price competition, a marketer emphasizes price as an issue and matches or beats competitors’ prices. Planet Fitness, for example, has experienced dramatic growth by offering $10/month gym memberships when other sport club memberships average $50 a month. Although Planet Fitness offers fewer amenities, its lower price is appealing to consumers who won’t use most gym amenities. To compete effectively on a price basis, a firm should be the low-cost seller of the product. If all firms producing the same product charge the same price for it, the firm with the lowest costs is the most profitable. Consider the advertisement for The Dump furniture store, which boasts that it can sell products for 50–75 percent less than other firms by having very low overhead and buying below manufacturers’ prices. By focusing on overstocks, showroom models, design samples, and one-of-a-kinds, The Dump can pay significantly below famous brand manufacturer prices and pass the savings along to customers. Firms that stress low price as a key marketing-mix element tend to market standardized products. A seller competing on price may change prices frequently, or at least must be willing and able to do so. In a competitive pricing environment, whenever one firm changes its prices, its rivals usually respond quickly and aggressively. Price competition gives marketers flexibility. They can alter prices in response to changes in their costs or demand for the product. If competitors try to gain market share by cutting prices, a company competing on a price basis can react quickly to such efforts. A major drawback of price competition is that competitors have the flexibility to adjust prices, too. If they quickly match or beat a company’s price cuts, a price war may ensue. A price war involves two or more companies engaging in intense price competition, often in an effort to boost market share. For instance, the introduction of two German low-price grocers—Aldi and Lidl—has sparked a grocery price war in U.S. markets where the new chains have opened stores. Additionally, competition from extreme-value stores such as Dollar General along with lower prices from Amazon-owned Whole Foods have forced Walmart and traditional supermarkets to lower prices and cut into profit margins in order to remain competitive. Chronic price wars often benefit consumers in the form of lower prices in the short run, but the constant price cutting is seldom sustainable, so they can substantially weaken organizations by slashing profit margins for everyone. 
Nonprice Competition 
Nonprice competition occurs when a seller decides not to focus on price and instead emphasizes distinctive product features, service, product quality, promotion, packaging, or other factors to distinguish its product from competing brands. Thus, nonprice competition allows a company to increase its brand’s unit sales through means other than changing the brand’s price. Mars, for example, not only markets Snickers and M&M’s but also has an upscale candy line called Ethel’s Chocolate. With the tagline “eat chocolate, not preservatives,” Ethel’s Chocolate competes on the basis of taste, attractive appearance, and hip packaging, and, thus, has little need to engage in price competition. A major advantage of nonprice competition is that a firm can build customer loyalty toward its brand. Nonprice competition is effective only under certain conditions. A company must be able to distinguish its brand through unique product features, higher product quality, effective promotion, distinctive packaging, and/or excellent customer service. Chanel commands a premium price due to its status as a luxury brand. Notice the advertisement showing model Lily-Rose Depp peering through a large bottle of ‍ L’Eau perfume with the tag line, “You know me and you don’t.” The price of the perfume is never mentioned in the advertisement. Buyers must not only be able to perceive these distinguishing characteristics but also deem them important. The distinguishing features that set a particular brand apart from competitors should be difficult, if not impossible, for competitors to imitate. Finally, the firm must extensively promote the brand’s distinguishing characteristics to establish its superiority and set it apart from competitors in the minds of buyers. 
Even a marketer that is competing on a nonprice basis cannot ignore competitors’ prices. The organization must be aware of them and sometimes be prepared to price its brand near or slightly above competing brands. Therefore, price remains a crucial marketing-mix component even in environments that call for nonprice competition. 
4. Why do most demand curves demonstrate an inverse relationship between price and quantity?  
(please read to answer question 4) 
For most products, the quantity buyers demand goes up as the price goes down, and the quantity demanded goes down as the price goes up. Case in point, prices have fallen precipitously for flat-screen television sets in recent years. This change in price is largely due to strong competition and newer technologies such as 4K and curved screens. In order to compensate, most makers of flat-screen televisions responded by continuing to lower prices. Thus, an inverse relationship exists between price and quantity demanded. As long as the marketing environment and buyers’ needs, ability (purchasing power), willingness, and authority to buy remain stable, this fundamental inverse relationship holds. The classic demand curve (D1) is a graph of the quantity of products a firm expects to sell at various prices if other factors remain constant. As you can see, as price falls, quantity demanded usually rises. Demand depends on other factors in the marketing mix, including product quality, promotion, and distribution. An improvement in any of these factors may cause a shift to demand curve D2. In such a case, an increased quantity (Q2) will be sold at the same price (P). Demand Curve Illustrating the Price/Quantity Relationship and Increase in Demand 
Many types of demand exist, and not all conform to the classic demand curve shown in Figure 19.1. Prestige products, such as selected perfumes and jewelry, tend to sell better at higher prices than at lower ones. This advertisement for Dooney & Bourke handbags provides a close-up of the high-priced Cowboys Zip Zip Satchel handbag to demonstrate its style and craftsmanship. These products are desirable partly because their expense makes buyers feel elite. If the price fell drastically and many people owned these products, they would lose some of their appeal. The demand curve in Figure 19.2 shows the relationship between price and quantity demanded for prestige products. Quantity demanded is greater, not less, at higher prices. For a certain price range—from P1 to P2—the quantity demanded (Q1) goes up to Q2. After a certain point, however, raising the price backfires. If the price goes too high, the quantity demanded goes down. The figure shows that if price is raised from P2 to P3, quantity demanded goes back down from Q2 to Q1.