Business Chapter 6
- Cost Per Mil - Cost Per Click - Cost Per Action
3 most common ways online advertising is purchased
- Manufacturer to Consumer - Manufacturer to Retailer to Consumer - Manufacturer to Wholesaler to Retailer to Consumer Manufacturer to Agent to Wholesaler to Retailer to Consumer
4 basic channel options
Pop-Under Ad
A new window that loads behind the current window and doesn't appear until user closes one or more active windows
Pop-Up Ad
A new window that opens in front of the current one, displaying an ad
Publicity
A non paid form of communication that calls attention to your business through good media coverage
Advertising
A paid form of communication sent out by a business about a product/service
Rebate
A refund offered to people who purchase a product
The features
A salesperson will build the presentation around what?
Public Relations
Act of establishing a favorable relationship with customers and the general public
Sales Promotion
Act of offering an incentive to customers in order to increase sales
Wallpaper Ad
Ad that changes the background of the page being viewed
Trick Banner
Ad that looks like a dialogue box with buttons ; Appears like an error message or alert
Floating Ad
Ad that moves across the screen or floats above the page content
- Less expensive than TV promotion - Can be more certain you're reaching target market
Advantages of radio ads
Benefits
Advantages that could result from the features
Communicate with potential customers
Advertising helps small companies do what?
Distribution
An important component of supply chain management that involves the locations and methods used to make products/services available to customers
Getting the product to the market in a timely manner
An important component of the distribution face
Rational Buying Decision
Based on logical reasoning of customers
TV Ads
Best type of ads to reach a large number of people quickly
Manufacturer to Agent to Wholesaler to Retailer to Consumer
Channel in which: - Manufacturer doesn't get involved in selling - Selling handled by agent - Often used in international marketing
Manufacturer to Consumer
Channel in which: - Product can be sold by manufacturer directly to the consumer - No intermediaries - Most cost-effective - Sales opportunities are limited
Manufacturer to Wholesaler to Retailer to Consumer
Channel in which: - Reach a large market - Manufacturer can sell large quantities to wholesaler - Wholesaler stores and and sells smaller quantities to retailers - More intermediaries involved - Prices cane lower
Manufacturer to Retailer to Consumer
Channel in which: - Sales force can sell manufactured goods to retail stores - Retail stores sell goods to consumer - More expensive option - More sales opportunities
Cost Per Mil (CPM)
Charge to advertiser is based on exposure of the message to a specific audience ; Costs priced per thousand viewers
Cost Per Click (CPC)
Charge to advertiser is based on the number of user clicks on the ad
Cost Per Action (CPA)
Charge to the advertiser is added on the user completing a form, registering for a newsletter, of taking some other action that will lead to a sale
- What are you shipping? - Where is it being shipped?
Factors to consider in making transportation decisions
Banner Ad
Graphic image or animation displayed within a rectangular box across the top or down the side of the webpage
Visual Marketing
Involves the use of visual media to promote, sell, and distribute a product/service to a targeted audience
Safe and adequate space to protect the product
It's important that storage facilities along the channel provide what?
A single, direct channel
Most who own a service business have what kind of channel of distribution?
Directly to customers
Most whole own a service business sell services how?
Direct Channels
Moves the product directly from the manufacturer to the consumer
Features
Physical characteristics and capabilities of the product/service
Supply-Chain Management
The coordination of manufacturers, suppliers, and retailers working together to meet a customers need for a product/service
Channels of Distribution
The routes that products/services take from the time they're produced to the time they're consumed
Promotional Mix
The strategy created by adopting a blend of some, if not all, of the techniques
TV Ads
Type of ad that usually comes in the form of commercials and paid advertising
Online advertising
Type of advertising that's : - Cost effective - Easier for customers to get the info they need - Let's businesses interact with customers through blogs, e-newsletters, etc.
Indirect Channels
Uses intermediaries, people, or businesses that move products between the manufacturer and the customer
Telemarketing
Using the phone to market your product/service
- Help a business convey a positive image - Create a sense of awareness
What advertising should do for a business
Mailing lists for target markets
What are available for purchase for those using direct mail ads?
Excellent way to aim products/services at specific markets
What are magazine ads good for?
- Saves time - Lowers cost for buyers and sellers
What channels of distribution can do if you use the right ones
Rational and emotional buying motives
What customers are influenced by
Benefits they'll receive
What customers are mainly interested in
Highly creative and effective, but costly, ads
What do ad agencies produce?
Use advertising companies
What do larger companies generally do when it comes to advertising?
- Make products and sell them to other businesses - Distribute products broadly and use all possible channels of distribution
What do manufacturers do?
Interviewing the customer to determine his/her specific needs/wants
What does a needs assessment involve?
Needs, issues, and concerns
What does a salesperson need to identify about the customer?
Create a unique image
What does visual marketing do?
Build and identify in the minds of customers
What does visual marketing help do?
Clearly communicate your message and image
What should advertising do?
It's largely out of a business's control
What's bad about publicity?
On a page close to listing of business placing the ad
Where are phone directory ads?
Cost Per Action
Which type of charge do advertisers prefer for banner ads?
The salesman
Who conducts a needs assessment?
Salesperson
Who is the business to many customers?
To satisfy needs
Why do customers purchase goods and services?
- It's relatively inexpensive - Targets limited geographic area - Reaches large numbers of people
Why small businesses may choose to use newspaper ads
Press Release
Written statement meant to inform media of an event/product
Food, water, & shelter
Examples of basic needs
Agents, Wholesalers, and Retailers
Examples of indirect channels
Safety, simplicity, quality, reliability, economy, service, etc.
Examples of rational buying motives
- Contests - Free Sample - Frequent-Buyer Rewards
Examples of sales promotions
The fee you have to pay the station to air the commercial
Expenses for TV ads include what?
False
T/F : Manufacturers usually sell directly to customers
False
T/F : Publicity is always good
- Advertising - Publicity - Personal Selling - Sales Promotion
Techniques involved with promotional mix
Need for esteem
Example of complex needs
Personal Selling
Direct communication between a prospective buyer and a sales rep in which the sales rep attempts to influence the prospective buyer in a purchase situation
Can be annoying
Disadvantage to telemarketing
- Spamming - Pop-Ups - Flashy Banners
Disadvantages of online advertising are the excessive uses of what?
- Cannot include much info - May not project image you're trying to convey
Disadvantages of outdoor ads
- People looking in directory are already in search of a particular type of business - Not easy to persuade customers to try your business
Disadvantages of phone directory ads
- Purely audio - Listeners may not remember what the hear - May need professional help when developing the ad
Disadvantages of radio ads
- Very expensive - Reaches too broad an audience to be effective for most businesses
Disadvantages of television advertising
- Reach large audience, but much of that audience may not be interested in your businesses - Ad will compete with many others
Disadvantages to newspaper ads
Online Advertising
Easiest form of advertising to determine the effectiveness
Farmers Market
Example of a direct channel
If people read it
How can direct mail ads be effective?
In keeping the name of your business in a place where people can see it
How can outdoor ads be effective?
If your market includes those who use public transportation
How can transit ads be effective?
Physical Distribution
Includes not only transportation, but also storage and handling of products and packaging within a channel of distribution
Their company as well as their company's competition
Salespeople should be familiar with what?
- Giving away hats and t-shirts displaying company name and logo - Distribute pens, notepads, coffee mugs, etc. with company info
Self-promotion activities include
As customers try to meet upper-level needs
Selling skills become important when?
Spamming
Sending mass emails to internet users
Self-Promotion
Simple way to generate free publicity
Newspaper Ads
Single largest form of ads in the US