MARK 3000 Final Ch 17, 18, 19, 15, 8 - McManus

method of promotion: public relations

-"free" media attention -importance of PR has grown as cost of other media has increased -credibility -consumers becoming more skeptical about marketing -not directly paid

channel intermediary: merchant wholesaler

-buys and takes title to goods from manufactured final good -stores ships and sells to other businesses

method of promotion: sales promotion

-can be aimed at both end user consumers or channel members -special incentives -used in CONJUNCTION with other forms of IMC

channel intermediary: agent/broker

-facilitates sale between manufactured final good and others -does not take title (legal ownership)

method of promotion: direct marketing

-growing element of IMC -delivery of promotional materials individually -includes email and mobile marketing -database tech improves

persuasive advertising

-growth and early maturity stages of the PLC -compares your brand to other brands -should focus on features, advantages -could lose sight of who is sending the message

informative advertising

-intro. phase of the life cycle -create and build brand awareness -push the consumer through the buying cycle -focus on education or creating buzz

value/demand chain: marketing channel

-manufactured final good -resellers -consumers

method of promotion: digital/social media/online marketing

-marketing through wireless handheld devices -websites, blogs, social media

reminder advertising

-mature stage of PLC -used to remind or prompt repurchases -doesn't include a lot of information

closing the sale

-obtaining a commitment from the customer to make a purchase -most stressful part of sales process -a "no" one day may be the foundation for a "yes" another

method of promotion: advertising

-paid communication -most visible element of IMC -extremely effective at creating awareness and generating interest

what value does personal selling add

-provide information and advice -act as consultants -are often entrepreneurs

value/demand chain: physical supply network

-raw materials -components -manufactured good

method of promotion: personal selling

-some products require the help of a salesperson -more expensive than other forms of promotion -salespeople can add significant value, which makes the expense worth it

personal selling

-two-way flow of information -real time interaction between buyer and seller -costly

how do you measure and plan IMC success

-understand the outcome they hope to achieve before they begin -short term or long term goals -should be explicitly defined and measured

3 types of advertising schedules

1. Continuous 2. Flighting 3. Pulsing

5 steps to the personal selling process *think of car salesman

1. Generate and qualify leads 2. Pre-approach 3. Sales presentation and overcoming reservations 4. Closing the sale 5. Follow-up

7 Steps in Planning and Executing an Ad Campaign

1. Identify target audience 2. Set advertising objectives 3. Determine the advertising budget 4. Convey the message 5. Evaluate and select media 6. Create advertisements 7. Assess impact

6 methods of promotion

1. advertising 2. public relations 3. personal selling 4. sales promotion 5. direct marketing 6. online/social media

what considerations are made in determining the advertising budget?

1. choose method: % of sales or competitive parity 2. expenditures may vary over the course of the PLC 3. nature of the market and product influence the size of the budget

what are 4 methods marketing is used through a search engine?

1. clicks 2. impressions 3. click through rate 4. ROI

3 rule of thumb methods

1. competitive parity 2. percentage of sales 3. available budget

examples of direct marketing

1. customer data bases 2. items mailed to home 3. emails to individuals

what makes up integrated marketing communications (IMC)?

1. customers 2. communications channel 3. results

2 goals of pre-approach

1. determine customer's specific needs 2. determine range of options most likely acceptable to customer

what are the 3 methods of measuring success using marketing metrics?

1. frequency 2. reach 3. gross rating points

what are the methods of personal selling?

1. internet 2. telephone 3. face-to-face (best)

when does personal selling make sense?

1. item is expensive 2. item is complex or needs explanation 3. customer is a business or organization (B2B)

3 methods to evaluating and selecting media

1. media planning 2. media mix 3. media buy

4 standards when conveying a message

1. meet standards 2. be truthful 3. puffery (exaggerated commendation especially for promotional purposes) 4. avoid frivolous law suits

3 necessities for a customer

1. need for an item or service 2. ability to buy 3. willingness to buy

what are 2 methods of setting and allocating the IMC budget?

1. objective and task method 2. rule of thumb methods

3 methods to assess impact using marketing metrics

1. pre-testing 2. tracking 3. post-testing

2 types of focus for advertisements

1. product focused advertisements 2. institutional advertisements

5 forms of public relations

1. publicity 2. company tours 3. speakers 4. sponsorship 5. annual reports

5 service quality dimensions of follow up

1. reliability 2. responsiveness 3. assurance 4. empathy 5. tangibles

Ethical and Legal Issues in Personal Selling

1. sales manager and sales force (HR type issues) 2. sales force and corporate policy 3. salesperson and customer

4 steps to the communication process

1. sender 2. transmitter encodes message 3. communications channel 4. receiver decodes message *noise from the environment and *feedback are involved

2 methods to convey messages

1. through information 2. through emotion

Handling Reservations

An integral part of the sales presentation is handling reservations or objections that the buyer might have about the product or service.

The AIDA model

Awareness (Think) Interest Desire (Feel) Action (Do)

indirect marketing channel

a marketing channel containing one or more intermediary levels ex: producer to retailer to consumer ex: producer to wholesaler to retailer to consumer

direct marketing channel

a marketing channel that has no intermediary levels ex: producer to consumer

rule-of-thumb method: competitive parity method

a promotion budgeting method in which an organization matches whatever competitors are spending

gross rating points (GRP)

a reference number used by advertisers that is obtained by multiplying: GRP = reach (% of the total market) x frequency

senders in communication:

adjust messages according to the medium and receivers' traits

institutional advertisements

advertisements designed to build goodwill or an image for an organization, rather than promote a specific product or service

objective and task method

an IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs

unique selling proposition

an advertising appeal that focuses on one clear reason why a particular product is superior ex: Nike: "Just Do It" State Farm Insurance: "Like a good neighbor, State Farm is there"

advertising schedule: fighting

an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising

cross-promotion

any form of communication through which one industry relies on another industry to promote its product

What are the limitations to the available budget method?

assumes communication expenses do not stimulate sales and profit

What are the limitations to the percentage of sales method?

assumes the same percentage used in the past and does not take into account new plans/products

rule-of-thumb methods

budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted

who is the push strategy aimed at?

channel members

advertising schedule: pulsing

combines the continuous and fighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods

rule-of-thumb method: available budget method

communication budget is the money available after operating costs and profits have been budgeted

corporate advocacy

company takes a position on social issue ex: stop smoking, fight hunger, funding cancer research

what do marketing channels improve?

contact efficiency

4 sources of leads

current customers, trade shows, the internet, networking events

spatial discrepancy

difference between where something is produced and where it is purchased

temporal discrepancy

difference in when something is produced and when it is purchased

What are the limitations to the competitive parity method?

does not allow firm to exploit the unique opportunities to problems they confront in a market if all firms use this, then market shares will be the same

What is pre-approach?

doing homework on customer, done before interacting with customer

FTC (Federal Trade Commission)

enforces truth in advertising laws; defines deceptive and unfair advertising practices

who is the pull strategy aimed at?

final consumers

professional selling career

flexibility, variety, lucrative, very visible to management and good for promotions

rule-of-thumb method: percentage of sales method

funds are allocated to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold

pull strategy

goal to get consumers to pull product through marketing channel by demanding it & forcing vendors to take notice

push strategy

increase demand by motivating vendors to highlight a product over competition & push onto consumers (pushy salesman, personal selling, B2B)

what are product-focused advertising goals/objectives?

inform, persuade, remind

supply chain management

integration of vertical operations to get product in the right place in the right qty at the right time and at the right price

channels management

managing the relationships between manufacturers and other companies involved in selling products to consumer

discrepancy of quantity

manufacturer produces in large volume and consumers buy in small volume

discrepancy of assortment

manufacturer produces many of one item. consumers buys one of many items

FDA (Food and Drug Administration)

package labeling and inserts; definition of terms; required disclosure/warning statements

pros and cons: internet

pro: highly flexible and interactive, specific targeting, can be linked to detailed content con: becoming cluttered, ad may be blocked by software

pros and cons: direct marketing

pro: highly targeted con: cost can be high; can be easily ignored

pros and cons: radio

pro: inexpensive con: short exposure periods and no visual

pros and cons: outdoor ads (billboard)

pro: relatively inexpensive con: not easily targeted

pros and cons: newspapers

pro: timely, flexible con: can be expensive

pros and cons: magazine

pro: very targeted con: inflexible, takes a while to produce

pros and cons: television

pro: wide reach con: high cost

FCC (Federal Communications Commission)

prohibits indecent language; regulates tobacco advertising

trade sales promotion

promotion activities directed to members of the marketing channel, such as wholesalers and retailers -must offer fairly -can create conflict in the channel

consumer sales promotion: sweepstakes

promotion in which prize winners are selected by chance

consumer sales promotion: contests

promotions in which participants use some skill or ability to compete for prizes

contact efficiency

reducing the number of stores customers must shop in to complete their purchases

ROI

return on investment ROI = net profit/cost of investment

advertising schedule: continuous

runs steadily throughout the year; for products and services that are consumed continually and require a steady level of persuasive or reminder advertising

channel intermediary: retailer

sells mainly to final consumers

Issues for the Sales Force and Corporate Policy

the firm may have a policy to sell goods or services to people who cannot afford them or to people who should not have them.

click through rate

the percentage of viewers that click on an ad CTR = clicks/impressions

logistics

the physical movement of goods and information from point of raw material supply to point of consumption

value/demand chain

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

what is the goal of integrated marketing communications

to ensure your message is the same across the board

issues for sales person and customer

treating customer unethically; trying to sell them something they don't need