AEM 2400

Extensive Decision Making

-High levels of involvement -High cost goods -Evaluation of many brands -Long time to decide -May experience cognitive dissonance.

Marketing Implications of Involvement

-High-involvement purchases require: extensive and informative promotion to target market. -Low-involvement purchases require: in-store promotion, eye-catching package design, good displays, coupons, cents-off, 2 for 1 offers

Opinion Leaders

-Individuals who influence the opinions of others. -Marketers are looking to web blogs to find opinion leaders. -Also teenagers, movie stars, sports figures, celebrities

Promotion

-Informs, educates, persuades, and reminds of product or service. -Advertising -Public Relations -Sales Promotions -Personal Selling

Information Search

-Internal Information Search: Recall information in memory. -External Information Search: Seek information in outside environment. (both nonmarketing controlled and marketing controlled.)

Hispanics

-Largest minority group -14.4% of population -Many backgrounds -Very brand loyal

Stimulus Discrimination

-Learning to differentiate among similar products. -Ex: use promotions to point out brand differences may not recognize.

Routine Response Behavior

-Little involvement in selection process -Frequently purchased low cost goods may stick with one brand. -Buy first/evaluate later -Quick decision

Limited Decision Making

-Low levels of involvement -Low to moderate cost goods -Evaluation of a few alternative brands -Short to moderate time to decide

Place

-Making products and services available when and where customers want them. -Also refers to physical distribution

Product/Market Classification

-Market Penetration Strategy = existing market and existing product. -Market Development Strategy - new market and existing product. - Product Development Strategy = Existing market and new product. -Diversification Strategy = New market and new product

Growing Ethnic Marketing

-Minority population of the U.S. reached 110 million in 2011. -$1.4 trillion hispanic purchasing power.

Postconventional Morality

-Morality of mature adult. -Less concerned about others and more concerned about how they see and judge themselves over the long run.

Price

-Most flexible of 4 Ps. -Quickest element to change -Important as a competitive weapon

Conventional Morality

-Moves from egocentric viewpoint towards the expectations of society. -Loyal obedience to organization.

Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large

cold calling

approaching a potential buyer with no prior knowledge about them

competitive intelligence

assess competitors and vendors

factors that affect elasticity

availability of substitutes, price relative to purchasing power, durability, other uses of the product, rate of inflation

Sustainable supply chain management

balances economic and environmental thought in supply chains

universal product codes

bar code

core service

basic service provided by a firm

distinctions between businesses and nonprofits

benefit complexity, benefit strength, involvement

advantages on online focus groups

better participation rates--cost effectiveness-broad geographic scope--accessibility--honesty

microblog

blogs with character limits, ie twitter

zero percent financing

borrow money with no interest

Owned media

brands publish their own content on websites, social media pages, etc.

management decisions problem

broad, overarching decisions

public affairs

building and maintaining local, national, or global community relations

competitive advertising

builds demand for a specific brand

loyalty marketing program

builds longterm, mutually beneficial relationships between companies and their key consumers (ie: Amex and their rewards)

marketing channel

business structure of independent organizations that reaches from the point of production to the consumer

franchise

business where operator is granted a licence to operate and sell products under a larger supporting organization (ie subway)

FOB Origin Pricing

buyer absorbs cost from the shipping point (free on board)

packaging functions

containing and protecting products--promoting products--facilitating storage, use, and convenience-- facilitating recycling and reducing environmental damage

encoding

conversion of sender's ideas into a message

cost per click

cost associated with a customer clicking an ad online

escalator pricing

final selling point reflects increase in cost between the start and end of the process

needs assessment

find out as much as possible about the potential client's position

cycle stocks

finished products stored that are expected to be sold in a given demand period

business analysis

firm generates preliminary demand, cost, sales and profitability for a new product

mall intercept interview

firm rents space in mall and asks people about what they are buying: about as effective as telephone interviews

Level 1 CRM

firm uses incentives to encourage customers to continue doing business with it

big data

exponential growth in volume, variety etc of data

consumer penalites

extra fees paid by consumers who violate terms of purchase agreement

safety stocks or buffer stocks

extra products stores just in case

interpersonal communication

face to face communication between two or more people

agents and brokers

facilitate movement of products down the channel, but never take title to the product

product development and commercialization process

facilitates the join development and marketing of new offerings among a group of supply chain partner frims

average fixed cost

fixed cost/quantity of output

unfair trade practice act

floored wholesale and retail pricing

cross-tabulation

looking at responses to one questions relative to the responses to another

bait pricing

low pricing ads then highly persuasive personal selling to get customers to buy more expensive item

discount store types

full line (limited service, broad range of products: walmart), supercenters (target), specialty discount stores (best buy), warehouse membership club

pricing during maturity stage

further price decreases as there is more competition, and it becomes harder to maintain all the channels necessary

Gap 3

gap between service quality specifications and service that is provided

Gap 5

gap between the service people receive and the one they want

Gap 1

gap between what customers want and what management think customers want

Gap 2

gap between what management thinks customers want and quality specifications

Gap 4

gap between what the company provides and what the customer is to it provides

product line

group of closely related products. Benefits include Advertising economies, Package uniformity, Standardizing components, Efficient sales and distrubution, and evaluation of quality.

flighted media schedule

heavy ads every other month or every two weeks.

intro promotional strategy

heavy advertising and pr to build awareness, sales promotion to induce trial, personal selling to obtain distribution

growth promotional strategy

heavy advertising and pr to build loyalty,decreasing use of sales promotion, personal selling to obtain distribution

pricing during the introductory stage

high prices recover developmental cost

preapproach

homework a salesman does before meeting the client

elasticity of demand

how consumers' demand for a product changes with price. =%change in quantity demanded/%change in price

gross margin

how much the retailer make as a percentage of sales

employee and investor relations

maintaining positive relationships with employees, shareholders, and others in the financial community

inventory control system

maintains assortment of materials and products to meet customer demand

supplier relationship management process

maintains relationships with valued suppliers to streamline process

manufacturing flow management

makes sure companies have the resources and flexibility to move products through the stages in the chain

returns management process

manage volumes of returned products efficiently

cooperative advertising

manufacturer and retailer split cost of ads (ie estee lauder and macy's)

outsourcing

manufacturer contracts out its logistics to an outside company

push strategy

manufacturer promotes to wholesaler, who buys then promotes, etc

store demonstrations

manufacturers perform in-store examples of their product

business meetings, conventions, and trade shows

manufacturers show off their goods

maturity stage

market approaches saturation as growth slows

factors that affect channel choice

market factors, product factors, producer factors

direct marketing

marketing to customers at their home or office

price bundling

marketing two or more products together for a special price

keystoning

markups based on experience

patronage oriented pricing for services

maximizes number of customers by having different prices

revenue oriented pricing for services

maximizes surplus of income over costs

intensive distribution

maximum market coverage, very accessible to buyers (who may be unwilling to search)

supply chain resiliency

measures that ensure a problem won't derail the supply chain for too long

consumer generated media

media created and shared among other consumers

convenience stores

mini supermarkets , usually more expensive due to increased level of convenience

Relationship integration

two or more companies develop a social connection that guide their professional relationship

persuasive labeling

i. Focuses on promotional theme ii. Consumer information is secondary

informational labeling

i. Helps make proper selections ii. Lowers cognitive dissonance iii. Includes use/care

lead generation

identification of customers most likely to buy a product or service

Gap model

identifies gaps in service delivery

generic product name

identifies product by class or type and can't be trademarked

advertising appeal

identifies the reason a person should buy the product

advertising objective

identifies the specific communication task the a campaign should accomplish

Behavioral targeting

ie: using cookies to see websites visited

three defenses for price discrimination

if the cost varies to different customers, market conditions dictate it, or to stay even with competition in a certain area

institutional advertising

improves the image of the firm/industry

noncorporate blogs

independent of corporate agendas, blogs that review products are perceived to be more authentic

channel power

influence one channel member has on the rest of the channel

lobbying

influencing legislators

Primary Data

information collected for the first time for your purpose

infoScan

information gathered from scanning barcodes

goals of promotion

informing, persuading, reminding, connecting

Order of adaptation to product

innovators-->early adopters-->early majority --> late majority --> laggards

order fulfillment process

integrating the supply in such a way that time between order and receipt is minimized

Integrated Marketing communications

integration of promotional mix to guarantee consistency in the messages associated with a product or firm

nontraditional channels

internet, infomercial, mail order, etc.

decoding

interpretation of language and symbols sent by the source

Executive interviews

interviewing business people at their offices

product life cycle

introductory stage, growth stage, maturity stage, decline stage

work-in-process inventory

inventory that is being assembled

in-transit inventory

inventory that is moving from one stage in the chain to another

seasonal inventory

inventory to accommodate seasonal spikes in demand (ie: xmas)

channel partnering

joint effort of all channel members to satisfy customers

test marketing

limited introduction of a product to determine initial reactions

things to consider when setting social media objectives

listen and learn, build relationships and awareness, promote products and services, manage your reputation, improve customer service

stages in making a social media plan

listen to customers, set social media objectives, define strategies, identify target audience, select the tools and platforms, implement and monitor strategy

People Processing

types of services directed directly at the customer (healthcare)

nueromarketing

understanding people's response to promotion and purchase motivations

zone pricing

uniform pricing within zones, but zones at different prices

implied warranty

unwritten guarantee that product is good

search quality

a quality that can be assessed before purchase

experience quality

a quality that can only be assessed after use

intangibility

a quality that distinguishes services from goods, cannot touch it

Open-ended question

a question that encourages multi-word answers in the respondent's own words

referral

a recommendation one customer makes to an associate about a product

independent retailer

a retailer owned by an individual entity and is not associated with with a larger network

chain store

a retailers part of a group of stores owned and operated by the same company

advertising

any form of impersonal paid communication where company is identified

electronic distribution

any kind of delivery of a product over the internet

noise

anything that interferes with, distorts, or slows the transmission of information

unitary elasticity

demand is elastic in such a way that price change wont change total profits

media schedule

designates the media to be used and the dates to use them

direct retailing

retailers sell at the customers home or office

marginal revenue

revenue gained by adding one more unit of output

profit

revenue-cost

Retaining customer loyalty

rewarding loyal customers with things like free birthday coffee from starbucks

frequent buyer program

rewards people who make multiple purchases

Pyramid of Corporate Social Responsibility

(From bottom to top) -economic -legal -ethical -philanthropic

CRM management system

(cycle) identify customer relationships-->understand interactions with current customer base--> capture customer base-->store and integrate customer data using information tech-->identify best customers-->leverage customer info

materials requirement planning

(materials management) system that makes sure the right inventory is held by all parties of the chain

Benefits of creating ethical guidelines...

-Helps identify acceptable business practices. -Helps control behavior internally. -Avoids confusion in decision making. -Facilitates discussion about right and wrong.

Evaluating the set

-analyze product attributes -use cutoff criteria -rank attributes by importance

Corporate Social Responsibility

-A business's concern for society's welfare. -Consider both long-range interests of company and company's relationship to society. -CSR

Benefits of a Marketing Plan

-Helps employees and managers work toward common goals. -Allows you to examine the marketing environment. -Serves as a reference point for the success of future activities.

Baby Boomers

-1946-1964 -working longer -$1 trillion in spending power -active and affluent -willing to try new brands -growing incomes

Generation X

-1965-1978 -40 million consumers -independent, rebellious, entrepreneurial, anti-establishment, skeptical, ecology-minded, anti-consumerist, short attention span, multi-career minded

Generation Y

-1979-1994 -millennial generation -60 million -Children of boomers -Impatient -Family oriented, inquisitive, opinionated, diverse (most ever), good time management, savvy, aware, sophisticated.

Conditions of Exchange

-2 parties -Each party has something of value -Each party is capable of communication and delivery -Each party is free to accept or reject the exchange offer -Each party believes it is appropriate or desirable to deal with the other party

Tweens

-8-12 years old -20 million -Spend $50 billion annually -90% online

Social Class

-A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms. -Indicates which medium to use for advertising and helps determine the best distribution for products

Attitude

-A learned tendency to respond consistently toward a given object. -If Positive: reinforce positive attitudes toward the product or service. -If Negative: try to change the market's attitude.

Value

-A strongly held and enduring belief. -Formed through interaction with family, friends, and influences such as teachers, religious leaders, and politicians. Also shaped by environment. -American values: self-sufficiency, upward mobility, work ethic, conformity.

External Stimuli

-Advertisements -brand Image -Package -Design

Beliefs

-An organized pattern of knowledge that an individual holds as true about his or her world. -Develop beliefs about product's attributes--> form brand image --> brand image shapes consumers' attitudes toward the product.

Three Target Market Strategies

-Appeal to the entire market with one marketing mix. -Concentrate on one market segment. -Appeal to multiple market segments using multiple marketing mixes.

Social Factors

-Attitudes, values, lifestyle -Social change is the most difficult external variable to forecast.

Marketing to Boomers

-Big spenders!! -Monthly or quarterly cash-back savings programs that reflect spending levels -Pursue the "up-sell" opportunities -Big on-line shoppers and Twitter users...reach them

Women...

-Bring in half or more of household income. -Control 51.3 % of the private wealth in the U.S. -Control 80% of household spending.

4 Strategies for Products

-Build - grow the SBU if potential to be a star. -Hold - preserve market share if successful cash cow. -Harvest - increase short-term cash flow without concern for long run. Used when cash needed from cash cow. -Divest - get rid of the SBU. Usually dog or problem child

Changing Beliefs and Attitudes

-Change the relative importance of beliefs about an attribute. -Change beliefs about attributes -Add new beliefs

Preconventional Morality

-Childlike and self-centered -Based on punishments/rewards

Selective Distortion (perception)

-Consumer changes or distorts information that conflicts with feelings or beliefs.

Economic Factors

-Consumer incomes -Purchasing Power -Inflation -Recession

Selective Exposure (perception)

-Consumer notices certain stimuli and ignores others. -Color and packaging are important stimuli. -Vividness and shock value are also important -ExL exposed to 2500 advertisements a day but only notice 10

Selective Retention (perception)

-Consumer remembers only that information that supports personal beliefs.

Elements of Consumer Decision-Making Process

-Cultural -Social -Individual -Psychological

A market-oriented firm...

-Defines business in terms of benefits others seek. -Aims at specific groups of people -Recognizes importance of product place, promotion, and pricing decisions. -Marketing is responsibility of whole organization.

A sales-oriented firm...

-Defines business in terms of goods and services. -Targets product to everyone -Place higher premium on sale than customer -Generates volume through intensive promotional activities

Marketing Myopia

-Defining a business in terms of goods and services rather than in terms of the benefits customers seek. -Narrow-minded mission statement -Executives fail to realize broad scope of business -Avoid by being customer focused -Ex: Smith Corona typewriters, Blockbuster

External environment consists of...

-Demographics -Social change -Economic conditions -Political and legal factors -Technology -Competition

Market Opportunity Analysis(MOA)

-Describe and estimate the size and sales potential of the market segments that are of interest to the firm. -Assessment of key competitors in these market segments.

Reference Groups

-Direct: Primary (family, friends, coworkers) and Secondary (clubs, professional groups, religious groups). -Indirect: Aspirational (organizations you would like to join) and Nonaspirational (groups you want to avoid being associated with).

Motivation

-Driving forces that cause a person to take action to satisfy his or her needs. -Maslow's Hierarchy of Needs

Food and Drug Administration (FDA)

-Enforces regulations against selling and distributing adulterated food and drug products.

3 Approaches to Ethical Decision Making

-Examine the consequences of the decisions. -Relies on rules and laws to guide decision making. -Relies on the level of moral development.

Types of Learning

-Experiential: An experience changes behavior. -Conceptual: Not learned through direct experience.

Technological Factors

-External technology allows managers to operate more efficiently or create a better product. -May render products obsolete.

Mission Statement

-Foundation of a marketing plan -What business is the company in? -Forms boundaries for all decisions, objectives, and strategies of marketing plan.

Marketing to Greatest Generation

-Freebies and discounts -special packs for smaller households -Better signage -More forgiving package design -Sharpen on-line content because they are on line!

Lifestyle Changes

-Growth of dual income families = increased purchasing power. -Approximately 59% of work-age females are in workforce -Women now have different expectations. -Single households outnumber married households with kids -Greater effect on marketing than any other social change.

External Information Search

-Need less information = less risk, more knowledge, more product experience, low level of interest, confidence in decision. -Need more information = more risk, less knowledge, less product experience, high level of interest, lack of confidence.

Competitive Factors

-Number of competitors/size of competitors -Competition for market share and profits. -Global competition

Measurements of Social Class

-Occupation -Income -Education -Wealth

Stimulus Generalization

-One response is extended to a second stimulus similar to the first. -Ex: extend brand name to new products (iPod)

Greatest Generation

-Parents of Boomers -WWII -Work together to change world -Moral sense of right and wrong -Frugal - lived through Great Depression

Need Recognition

-Present status vs. preferred state. -Marketing helps consumers recognize an imbalance between present status and preferred state.

Federal Trade Commission (FTC)

-Prevents persons from using unfair methods of competition in commerce. -Regulates advertising on the internet as well as internet abuses of consumer privacy.

Factors Determining Level of Consumer Involvement

-Previous Experience = Quick Decisions -Greater Interest = Greater Involvement -Greater Perceived Risk of Negative Consequences = Greater Involvement -Situation= everyday wine, limited involvement...company...more involvement -Greater Social Visibility = Greater Involvement

Product

-Product offering and strategy -Physical unit -Packaging -Warranty -After sale service -Brand name -Company image

4 Marketing Management Orientations

-Production -Sales -Marketing -Societal

How do social factors influence purchase behavior?

-Products purchased -Prices paid for products -Effectiveness of specific promotions -How, where, and when people expect to make purchases.

Foreign Corrupt Practices Act (FCPA)

-Prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries. -Criticized for putting U.S. businesses at a competitive disadvantage.

Consumer Product Safety Commission (CPSC)

-Protects the health and safety of consumers in and around their homes. -Sets safety standards for almost all products consumers use.

Marketing Objectives

-Realistic -Measurable -Time Specific -Consistent with and indicating the priorities of the organization -Should motivate employees, provide management direction, communicate marketing management philosophy, force executives to think clearly, and allow for better evaluation of results.

Social Influences

-Reference Groups -Opinion Leaders -Family Members

Learning

-Reinforcement (positive-repeat behavior, negative-avoid behavior, neutral-activity needed.) -Repetition leads to increased learning

Types of Consumer Buying Decisions

-Routine response behavior -Limited decision making -Extensive decision making

Morals

-Rules people develop as a result of cultural values and norms. -Culture is a socializing force that dictates what is right and wrong. -Morals are the foundation of ethical behavior.

Influence of Reference Groups

-Serve as information sources and influence perceptions. -They affect an individual's aspiration levels. -Their norms either constrain or stimulate consumer behavior.

Sustainability

-Socially responsible companies will outperform their peers. -It is in business's best interest to find ways to attack society's ills.

Ethics

-The moral principles or values that generally govern the conduct of an individual or group. -A standard of behavior by which conduct is judged. - Morals are the foundation of ethical behavior

Component Lifestyles

-The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle. -Custom-made life

Perception

-The process where we select, organize, and interpret stimuli into a meaningful and coherent picture. -How we see the world around us.

Marketing to Generation X

-Time precious commodity... SO make shopping easy for them -Child care centers and activities -In store cooking/ crafting classes for family fun -Deliver quick hit information and offers using new media for fast results

Psychological Influences

-Tools we use to recognize feelings, gather and analyze information, formulate thoughts and opinions and take action. -Perception, motivation, learning, beliefs & attitudes.

The Marketing Mix (4 Ps)

-Unique blend of product, place, promotion, and pricing. -Marketing manager can control each element but all must be blended to achieve optimal results.

Marketing to Generation Y

-Use current music in store -Coffee stations with battery chargers and in-store WiFi -Convert the need for immediate gratification into impulse buy sales with great end caps and front of store bins

Recognition of Unfilled Wants

-When a current product isn't performing properly. -When the consumer is running out of a product -When another product seems superior to the one currently used

Internal Stimuli

-sight -smell -taste -touch -hearing

Culture

-what we eat, how we dress, what language we speak.... Includes social class.

Types of Brands

1) Generic 2) Private Label - band name owned by wholesale or retailer. - individual, family, or combo. 3) Manufacturers - brand name of manufacturer. - Family or individual 4) Captives - only sold at one store, but no evidence of affiliation to store

Steps in Segmenting Markets

1) Select Market 2) Choose bases 3) Select descriptors 4) Profile and Analyze segments

Elements of A Marketing Plan

1. Business mission statement 2. Situation or SWOT analysis 3. Objectives 4. Market Strategy, Target Market Strategy, Marketing Mix (Product, Promotion, Price, Distribution)

Consumer Decision-Making Process

1. Need Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase 5. Postpurchase Behavior

Marketing Implications of Perception

1. What are important attributes consumers want in products? 2. Design signals to communicate these attributes: Price, brand names, quality/reliability, product changes/repositioning.

exchange utility

when a retailer swaps the product for a reasonable amount of money

stockout

when customers buy all of a stock of a product

Competitive Advantage

A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. -cost, product/service differentiation(longer lasting than cost), niche(good for small companies w/ limited resources)

BCG Portfolio Matrix

A tool for allocating resources among products or SBUs on the basis of relative market share and market growth rate. - High market share/ high market growth rate = star - High market share/ low market growth rate = cash cow - Low market share/ high market growth rate = question mark/problem child - Low market share/ low market growth rate = dog

Marketing Plan

A written document that acts as a guidebook for marketing activities.

Sustainable Advantage

An advantage that cannot be copied by the competition.

Types of Channel Relationships

Arms length, Cooperative, Integrated

issues relating to target markets of nonprofits

apathetic or strongly opposed targets, pressure to adopt undifferentiated segmentation strategies, complementary positioning.

Relationship Marketing

Building lasting relationships with customers through: -customer-oriented personnel -great employee training -empowering employees to solve customer problems

Parts of business processes

CRM, Customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development and commercialization, returns management

Post Purchase Behavior

Cognitive Dissonance-Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. Marketing reduces by follow-ups guarantees, and warranties. Reduce Dissonance by: -Seeking info that reinforces positive ideas about the purchase. -Avoiding information that contradicts the purchase decision. -Revoking the original decision by returning the product.

Environmental Scanning

Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. Ususally includes social, demographic, economic, technological, political, legal, and competitive.

Environmental Scanning

Continually collecting and evaluating environmental information.

Exchange

Desired outcome of marketing - give up something to receive something you'd rather have.

Positioning

Developing a specific marketing mix to influence poteintial customer's overall perception of a brand, product line, or organization.

Marketing Orientation

Focuses on customers' wants and needs while meeting organizational objectives. Can be too customer focused/must also be able to understand the competitive arena.

Production Orientation

Focuses on the internal capabilities rather than on the desires and needs of the marketplace. This orientation looks at what the company is best at making at.

Evoked Set

Group of brands, resulting from an information search, from which a buyer can choose.

Marketing Research Process

Identify and formulate the problem/opportunity --> Plan the research design and gather secondary data-->Specify the sampling procedures-->collect primary data-->analyze the data-->prepare and present report-->follow up

SWOT Analysis (situation analysis)

Identifying internal strengths and weaknesses and external opportunities and threats.

Differences between services and good

Inseperability, intangible, heterogeneity, perishable.

Political and Legal Factors

Laws and regulations protect: -new technology -society -businesses -consumers

Focusing on customer value...

Offer products that perform, earn trust, avoid unrealistic pricing, give the buyer facts, offer organization wide commitment in service and after sales support

Maslow's Hierarchy of Needs

Part of Psychological factors for decision making (From bottom to top) 1. Physiological 2. Safety 3. Social 4. Esteem 5. Self-Actualization

Marketing Research

Process of planning, collecting, and analyzing data relevant to a marketing decision

computer assisted personal interviewing

Researcher conducts in person interview with help of computer prompted questions

Societal Orientation

Satisfying customers' wants and needs while benefiting society. Can be costly/inefficient.

Level 2 CRM

Seeks to buils social bond with customer

ways personal selling affects Aida

Sorta: attention. Yes: everything else

Level 3 CRM

Structural bonds between firm and customer

Target Market Strategy

Take a group of individuals or organizations and segment them into groups that share one or more characteristics who need similar products.

Sales Orientation

The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. Can lead to lack of understanding of wants and needs of the marketplace. Also inward focused.

Green Marketing

The development and marketing of products designed to minimize the negative effects on the physical environment.

Strategic Planning

The managerial process of creating and maintaining a fit between the organization's objectives and resources, and evolving market opportunities. Goal- long term growth and profit

Demographic Factors

The study of people's vital statistics, such as their age, race and ethnicity, and location.

Functions by intermediaries

Transactional(promotion), Logistical, Faciliatating

audience selectivity

a medium's ability to reach the target market

Marketing Research problem

What information is needed and how to obtain it

Environmental Management

When a company implements strategies that attempt to shape the external environment within which it operates.

rebate

a price reduction after the purchase

United Nations Global Compact (UNGC)

World's largest global citizenship initiative.

corporate blog

a blog sponsored by a company and disseminate marketing controlled info

push money

a bonus intermediaries receive for promoting a certain product

scaled-response question

a close-ended question designed to measure intensity

functional discounts

a discount given to a wholesaler who provides a function for the manufacturer

training

a manufacturer will train an intermediary's personnel to handle and promote product

destination store

a store customers seek out, often in isolated location

Types of Products

a) Convenience -relatively inexpensive, merits little shopping efforts b) Shopping - usually a little more expensive, found in fewer stores. homogeneous (tvs, washers) or heterogeneous (universities) c) Specialty - particular item, difficult to substitute. d) Unsought - product buyer does not actively seek (insurance, burial plots)

Brand footprint

a) Essence b) personality c) core values.

Bases for Segmentation

a) Geography b) Demographics(Age, Gender, Income, Ethnicity, Family Life Cycle) c) Psychographics(Basis of personality and lifetsyle) d) Benefits sought(cluster customers based on benefits they seek from product) e) Usage rate(80/20 principle: 20 percent generate 80 percent of demans

Criteria for Market Segmentation

a) Substantial b) Measurable and Identifiable c) Accessibility d) Responsiveness

Undifferentiated Targeting Strategy

a. 1 Big Market b. 1 Marketing Mix c. What are the advantages? i. Potential savings on production and marketing costs d. What are the disadvantages? i. Unimaginative product offerings ii. Company more susceptible to competition

Multi-segment Targeting Strategy

a. A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each b. Advantages i. Greater financial success ii. Economies of scale c. Disadvantages i. High costs ii. Cannibalizations

Concentrated Targeting Strategy

a. A strategy used to select one segment of a market for targeting marketing efforts. A company selects a niche for targeting its marketing efforts b. Advantages i. Concentration of resources ii. Meets narrowly defined segments iii. Small firms can compete iv. Strong positioning c. Disadvantages i. Segments too small or changing ii. Large competitors may market to niche segment

seasonal media schedule

ad schedule used for seasonal goods

product line extension

add to an existing product line

comparative advertising

ads that compare two competing brands

decline promotional strategy

advertising and pr drastically decreased, sales promotion and personal selling maintained at low levels

benefits from organizing related items into product lines

advertising economies--package uniformity--standardized components--efficient sales and distribution--equivalent quality

continuous media schedule

advertising runs steadily through the period

maturity promotional strategy

advertising slightly decreased, more persuasive and reminding in nature. increased sales promotion to build marketshare. personal selling to obtain distribution

touch points

all areas of a business where customers have contact with the company

product category

all brands that satisfy a particular type of need

sales promotion

all marketing activities not explicitly stated in the mix

product mix

all products a firm sells

media sharing site

allows users to upload and distribute multimedia content (youtube, flickr)

Automatic replenishment programs

an automatic trigger to send goods to a certain location

premium

an extra item offered to the consumer after purchase

quantity discounts

buying lots of units can results in discounts, either cumulative or not

social media metrics

buzz, interest, participation, search engine ranks and results, influence, sentiment analysis, web site metrics

department store

carries wide variety of shopping and specialty goods

marginal cost

change in cost associated with one additional unit produced

product modification

changes of one or more of a products characterisictics

channel captain

channel member with the most power

arms length relationship

channel members who treat the relationship as a onetime thing

medium

channel used to convey a message

credence quality

characteristic people may have difficulty assessing even after use

prestige pricing

charging a high price to promote high quality image

penetration pricing

charging low prices to gain market share

predatory pricing

charging very low prices for a product with the intent on driving another firm out of the market

channel conflict

clash of goals within the channel

integrated relationship

closely bonded relationship between channel members with a wirtten contract. Can be vertical (all channel members owned by an entity) or supply chain (different companies act as 1)

pulsing media schedule

combines continuous and flighted media schedules

location based social networking sites

combines social media and gps tech (ie foursqaure)

mass communication

communicating to large audiences, usually through social or traditional media

merchant wholesalers

companies that facilitate movement of products from manufacturers to purchasers. they take title of the goods

sponsorship

company spends money to promote an idea or cause

family branding

company that makes several different products under one brand name

product characteristics that affect rate of adoption

complexity, compatibility, relative advantage, observability, "trial-ability"

horizontal conflict

conflict between channel members on the same level, ie different retailers.

vertical conflict

conflict between different levels of a channel

cost per contact

cost of reaching a member of the target audience

fixed cost

cost that does not change regardless or production

variable cost

cost that varies with the level of output

Transportation criteria

cost, transit time, reliability, capability, accessibility, traceability

joint costs

costs shared by manufacturers and marketers

fourth party logistics firms

create and manage entire solutions for getting products

corporate communication

creating internal and external messages to promote a positive image

social media users

creators, critics, collectors, joiners, spectators, inactives

ways to make demand more inelastic

cultivate demand, create unique offerings, change the package design, heighten buyer dependence

pull strategy

customer demands from retailer, who demands from wholesaler, etc.

value based pricing

customers determine price based on value

receivers

customers getting the message

secondary data

data previously collected for different purposes

Electronic data interchange

data that replaces invoices or receipts that allow everything to be streamlined

commercialization

decision to make a product

price strategy

defines initial price and gives direction for movement throughout the life cycle

dynamic prices

different prices are charged for the same service (ie: airline tickets)

types of industrial channels

direct to industrial, direct to government, industrial distributor, agent/broker, agent/broker industrial distributors.

types of consumer channels

direct, retailer, wholsalers, agent/broker

seasonal discount

discount for buying merchandise out of season

cash discounts

discounts for prompt payment of a bill

decline stage

drop in sales

traits in salespeople

ego strength, sense of urgency and competitiveness, assertiveness, sociable, risk takers, capable of understanding complex concepts and ideas, creativity, empathetic

pricing during decline stage

either price drastically falls as demand plummets or they get higher like vinyl records

product screening

eliminates ideas that are inconsistent with the new-product strategy

relationship selling

emphasizes person to person interaction and empathy in creating long term clients

factors for a store's atmosphere

employee type and density, merchandise type and density, fixture type and density, sound, odors, visual factors.

point of sale interactions

enables customers to provide information about themselves without feeling violated

Customer integration

enables firms to offer long lasting, distinctive, value added to customers who represent greatest value to the firm

product development

engineers or r&d create prototype of product (simultaneous if all aspects like engineering and marketing are all working at the same time instead of sequentially)

new product line

established market, but firm is entering it for the first time with new products

two part pricing

establishing two separate charges associated with a good or service

concept test

evaluates an idea before a prototype has been made

Public Relations

evaluates public attitudes, conducts internal reviews of how the company could be viewed, takes action to increase company's standing

repositioned products

existing products now being targeted at new markets

service distribution focuses

minimizing wait times, managing service capacity, improving service delivery, establishing channel-wide network coherence

media mix

mix of different media used in ad strategy

co-opetition

mixes elements of cooperation and competition between two firms

Social Media Monitoring

monitor buzz and chatter online about a product

campaign management

monitoring and leveraging customer interactions to sell a company;s products and to increase customer service

supply chain team

moves goods, services, and information from source to customer

Materials handling systems

moves inventory into, within, and out of a warehouse as quickly as possible

Customer Service Management

multi company, unified response to the customer

brand

name, term, symbol, design, or combo that identifies a product

factors affecting promotional mix

nature of the product, stages in life cycle, target market characteristics, available funds, push and pull strategies

return on investment

net profit after taxes/ total assets

new product development process

new product strategy--> idea generation--> idea screening --> business analysis --> development --> test marketing --> commercializiation

new to the world products

new products create entirely new market

advertising response function

no matter how much is spent on ads, marketshare and growth slow

product mix width

number of product lines offered by a firm

product line depth

number of products in a line

reach

number of target customers who are exposed to a commercial at least once during a given period

frequency

number of times an individual is exposed to an ad in a given period

global brand

obtains one third or more of its earnings outside its home country

price lining

offering different products in the same line with distinct price points

single price tactic

offers all goods and services at same (or similar) prices

thee options when sending brand global

one brand name everywhere--adaptations and modifications--different brand names in different markets

exclusive distribution

only one or a few retailers in a given area carry the product. usually expensive luxury goods that customers have to search extensively to find

specialty store

only sells a given type of merchandise

sender

originator of message

supplementary service

other services provided by a firm to further the core goal

factory outlet

owned an operated by manufacturer, sells surplus

personal selling

paid for communication between two people in an effort to convince a customer to buy a product

Behavior Scan

participants have an id card that they swipe when the shop so their purchases are recorded

demand-supply integreation

parts of firm who generate demand are in constant communication with the people who generate supply

promotional allowances

payment to a dealer for promoting a product

introductory stage

period immediately after product launch, usually recovering losses from r&d.

Press relations

placing positive, news worthy information in the news media

co-branding

placing two or more brand names on a product

promotional strategy

plan for optimal use of promotion (advertising, PR, personal selling, sales promotion and social media)

planned obsolescence

practice of modifying new products so old products are no longer relevant

delayed quotations pricing

price is not set until product is finished or delivered

revenue

price of a product * number of units sold

coupon

price reduction at the point of purchase

trade allowances

price reduction offered by manufacturers to intermediaries

retialing mix

price, promotion, product, place, presentation and personnel

pricing during the growth stage

prices begin to stabilize because competitors enter the market, new markets with lower income want the product, and economies of scale

odd-even pricing

pricing at odd number prices to imply a bargain (99.95)

Pricing differences between businesses and nonprofits

pricing objectives, non-financial prices, indirect payment, separation between payers and users, below cost pricing

CRM process

prioritize certain customers with different relationship to the firm

extranets

private electronic networks

negotiation

process in which both the salesperson and prospect offer concessions to complete the sale

knowledge management

process in which consumer info is centralized and shared

direct channel

producers sell directly to consumers. ie: catalog shopping

postponement

product is partially produced based on forecast, then updated based on demand patterns

things to know about a needs assessmemt

product or service, customers and their needs, the competition, the industry

special promotional resources for nonprofits

professional volunteers, sales promotion activities, PSAs

trade sales promotion

promotional strategies geared at wholesalers and retailers

supply chain security

protecting key materials and assets from damage

Marketing Research Objective

provide insightful decision-making information

product publicity

publicizing specific products or services

blog

publicly accessible web page that functions as an interactive journal

basing point pricing

purchasers are charged for all freight cost from a certain point

types of product modificiation

quality modification-- functional modification-- style modification

sales presentation

the formal meeting where the salesman gives his pitch

advantages of internet surveys

rapid development, real time reporting--dramatically reduced cost--personalized questions and data--improved respondent participation-- contact with the hard to reach

lead qualification

recognized need, buying power, receptivity and accessibility

Technology and Planning Integration

refers to the creation and maintenance of info-tech systems that connect managers across the firms in a supply chain

Measurement Integration

reflects idea that performance assessments should be transparent and measurable across borders of different firms

ways to evaluate services

reliability, responsiveness, assurance, empathy, tangibles

Material and Service Supplier Integration

require firms to link seamlessly to outsiders who provide goods and services

central location telephone facilitiy

research facility made specifically for conducting phone research

survey research

researcher interacts with people to obtain facts and opinions about products.

mystery shoppers

researches posing as ordinary shoppers to gather info about a store.

crisis management

responding to crisis regarding the company's image

advocacy advertising

safeguards against negative consumer attitudes and enhances company's credibilty

growth stage

sales grow at increasing rate, many competitors enter market, large companies acquire pioneering firms

consumer sales promotion

sales promotion geared at customers

frame error

sample drawn from population differs from target population

Smart RFID

scannable elements on goods to make it easy to manage incoming and outgoing goods

selective distribution

screens dealers to eliminate all buy a few in a certain area. consumer must seek out the product

demand management

seeks to align supply and demand throughout the chain by anticipating customer demand

status quo pricing

seeks to maintain existing price or meet competitor's pricing

operations oriented pricing for services

seeks to match supply and demand

focus group

selected by phone, most participants are paid and conduct a discussion about a product where their responses are monitored

third party logistics firm

sell logistics solutions to corporations

freight absorption price

seller pays actual shipping cost

uniform delivered pricing

seller pays freight charge, bills all purchases flat fee

leader pricing

selling at near or even below cost to attract customers

offprice retailer

sells at 25% below usual price, come across their inventory in unconventional ways

mail survey

send card and return envelope, very low cost but low response rate

offshoring

sending logistics aspects overseas

nearshoring

sending operations abroad but still close, ie mexico

media planning

series of decisions advertisers make regarding their selection of media for their ads

advertising campaign

series of related ads for a common theme

logistics information system

serves as the link connecting all of the operational components of the supply chain

mental stimulus processing

service directed at people's minds (theater, educations)

Possession Processising

service is directed at customer's possessions (dry cleaning)

information processising

services directed at a customers assets (insurance, consulting)

sales maximization pricing

sets price to maximize sales, often ignores profits

product line pricing

setting one price for an entire line of products

price skimming

setting price high initially and lowering over time

satisfactory profit

setting price so profits are reasonable but necessarily maxed

price equilibrium

setting the price so supply equals demand

profit maximization pricing

setting the price so the total revenue is as large as possible

non-store retailing

shopping without visiting a store

preintro promotional strategy

small amounts of advertising near intro

mobile marketing tools

sms, mms, mobile web sites, mobile ads, bluetooth marketing, apps

ways sales promotion affects Aida

sorta: attention, interest. yes: desire. No: action

field service firm

specializes in interviewing respondents on a subcontracted basis.

Research design

specifies which questions must be answered, how and what the data will be gathered and how the data wil be analyzed

quota

statement of the salesperson's goals

sales process

steps a sales person goes through to sell a product

pioneering adveritisng

stimulates primary demand for a new product or product category

promotion strategy for services

stress tangible cues, using personal information sources, creating a strong organizational image, engaging in postpurchase communication

ethnographic research

studying people in person

computer assisted self interviewing

subject reads questions and directly input responses to computer

cross selling other products

suggesting related products after a person buys one

supply chain agility

synchronization of the supply chain to make movement through it as fast as possible

Scanner based research

system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion and pricing they are exposed to and the things they buy

built-to-order

tailoring mass-market goods to the buyer

promotional mix

the combo of advertising, PR, sales promotion, personal selling and social media

supply chain risk

the risk of an outside or internal event happening and disrupting the supply chain

order processing system

the system that sends the customers needs up the chain and sends the directions to meet the order

social networking site

things like facebook

average total cost

total cost/quantity of output

average variable cost

total variable cost/quantity of output

internal marketing

treating employees as customers to get them to buy in

product advertising

tries to raise awareness/interest in a product

yield management systems

use computer software to fill unused capacity

Distribution resource Planning

use data to signal when inventory or materials should be sent up or down the chain

simulated market testing

use experiments or observational research instead of actually releasing product

price shading

use of discounts to stimulate demand

social news site

users post stories and users decide what stays on the site, ie reddit or digg

markup pricing

uses the cost of buying the product from the producer and adds amount for profits and expenses

free merchandise

using extra goods as payment for promotion

networking

using friends and business associates to identify potential clients

nonprofit organization marketing

using promotion to raise awareness of an issue that they hope to help through events, services or products

crowdsourcing

using the input of many people to influence decisions

mass customization

using the internet to allow customized services to be delivered on a mass goal

cooperative relationships

usually administered by a formal contract, companies want set terms to agreement but do now want long term investment of integrated relationship

closed-ended question

usually multiple choice, true/false, yes or no.

observation research

watching what people do, how they react to certain things/situations

transmission channel

way a message is delivered (radio, tv, etc)

AIDA

ways promotional strategy should affect people: Attention, interest, desire, action

review sites

websites where customers can review products and services (yelp)

unique selling proposition

what advertisers call their advertising appeal

break-even analysis

what sales volume must be reached to breakeven (total fixed cost/fixed cost contribution)

customer-centric

when a company creates its product based on what its data suggests the consumer wants

advergaming

when a company puts ads into games

dual-distribution

when a producer has two channels to sell the same product

supply chain integreation

when multiple firms or one firm's multiple areas have one coordinated business plan

strategic channel alliances

when one manufacturers uses elements of another manufacturer's established channel

channel control

when one member's power affect another's behavior

earned meida

when people talk about the brand and the media space is free

build-to-stock

when production begins because because forecasts call for additional demand

individual branding

when products made by one firm vary greatly in use of perfomance

selling against the brand

when retailers purposefully make it hard to sell a brand (putting higher priced goods next to cheaper store brand goods)

place utility

when the channel delivers the product close to the consumer

time utility

when the channel minimizes time from production to consumption

form utility

when the channel turns raw materials into finished products

feedback

when the receiver can respond to the source about the message

price fixing

when two firms collude to charge the same price for a product

paid media

where a company pays for media space

sales proposal

written document that outlines how the product will fit the prospect's needs

express warranty

written gurantee

ways social media affects Aida

yes: attention, interest. Sorta: desire, action

ways PR affects Aida

yes: attention, interest. Sorta: desire. Action: no

ways advertising affects aida

yes: attention, interest. Sorta: desire. Action: no