Marketing Exam 3

What are marketers trying to accomplish through promotion (informing, persuading, reminding, and building relationships)?

A customer to buy the product and be a returning customer

Why is Supply Chain beneficial

As customers have increasing power in the marketplace, firms will benefit from a supply chain that exists to enhance customer value

Disintermediation

Channel members bypass another member and sells/buys products directly Process by which traditional intermediaries are eliminated as companies question the value added by layers in the distribution channel

Post-Testing

Conducting research on consumers' responses to advertising messages they've seen or heard o Unaided recall: What do you remember being exposed to o Aided recall: What do you remember about the sheetz commercial last night o Attitude Tests o Inquiry tests o Sales tests o Does it work? Does it accomplish the goal

levels of distribution intensity

1) Exclusive Distribution- only one retailer in a specific geographic area carries the firm's products a. Fewest locations, rare and special brand so they want to convey a special image 2) Selective Distribution- Relies on few retailers in an area to sell products a. Middle amount of locations 3) Intensive Distribution- designed to place products in as many outlets as possible a. Most locations

steps in planning and executing an ad campaign

1. Identify target audience 2. Set advertising objectives 3. Set the advertising budget 4. Design the message 5. Evaluate and select the right media 6. Schedule the advertisement 7. Execute the campaign 8. Assess the campaign

steps in setting your social media strategy

1. Listen 2. Analyze 3. Do a. Identify strategy and goals b. Identify target audience c. Develop budget d. Develop the campaign e. Implement the campaign f. Monitor and change

The process of developing an IMC program

1. Planning: Developing the promotion program a. Identify target audience b. Specify the objectives c. Set the budget d. Select the right promotional tools e. Design the promotion f. Schedule the promotion 2. Implementation: Executing the promotion program a. Pretest the promotion b. Carry out the promotion 3. Evaluation a. Posttest the promotion b. Make needed changes

steps in the selling process

1. Prospecting: develop list of leads and assess their potential 2. Preapproach: further research and develop plan for how to approach 3. Approach: first contact- gain attention, stimulate interest, transition to presentation 4. Presentation: needs assessment, customize presentation, be prepared for common objections, listen and ask questions 5. Close the Sale: gain commitment of purchase, but realize when NOT to push now, in order to deepen relationship for future 6. Follow up: check with customer, get feedback (proactive complain handling), offer support-great tools for relationship selling

Pull Strategy

Directing communications to the end customer o Must understand the target market and other audiences

Push Strategy

Directing communications to the marketing channel

Two types of discrepancies

Discrepancy of Quantity Discrepancy of Assortment

Social Media allows marketers to

Have conversation with consumers Forge deeper relationships Build brand loyalty

Types of Channel relationships

Independent/Conventional Vertical Horizontal

Designing the message

Informational - offer fractal information and strong arguments Emotional - satisfy audience's emotional desires rather than utilitarian needs

What influences channel strategy

Market Factors Product Factors Producer Factors Cost vs Profitability Adaptability

What traits tend to be found in successful sales people?

Motivation, dependability/trustworthiness, ethical behavior, customer and product knowledge, interpersonal communication skills, flexibility, emotional intelligence, enthusiasm

Dual Distribution System

Multiple channel usage, either to the same or different target markets. Ex: Pharmaceutical companies sell to hospitals and consumers

Factors Affecting the promotion mix

Nature of the product product life cycle target market characteristics types of buying decision Funds available Push or Pull Strategy

Product Placement

Paying (not always) to have product featured in nontraditional promotional status

Scheduling Metrics

Reach Frequency Gross Rating Points

Gross Rating Points

Reach * Frequency

Channel captains have some sort of influence relative to other members

Reward - ability to give and take away Identification - firms want to be associated with you Expertise - Firm has greater expertise Legitimate - Legal Authority, based on contracts

Supply Chain should be

Should be CUSTOMER DRIVEN (should coordinate and integrate the customer the highest possible value)

the communication process (and the components that comprise the process)

Source > Encoding Message > Communication Channel > Decoding Message > Receiver o Encoding message= encoder turns source's idea into a message, what you say and how you say it o Communication channel= where you say it o Decoding message= how the receiver interprets it Hoping they interpret it as intended Why you should be pre-testing everything before it goes out o NOISE can happen at any time

Types of Presentation

Stimulus-Response Format Formula Selling Format Need-Satisfaction Format

Key Processes of SCM

Supplier Network= raw materials > parts suppliers > manufacturer

What functions do/can channel members perform?

Transactional Functions- buying, selling, and risk taking Logistics Functions- storing, assorting, sorting, and transporting Facilitating Functions- financing, grading-inspecting, testing, marketing information and research This is specialization and division of labor Can add a distributor, provides contact efficiency

How does the channel of distribution produce contact efficiency?

Using a distributor will provide contact information because the producers only have to coordinate selling to one entity instead of many

Public Relations

a form of communication management that seeks to influence the feelings, opinions or beliefs held by stakeholders o Ex: especial events, lobbying, annual reports, press conferences, social media, etc.

Formula Selling Format

a presentation consists of information that must be provided in an accurate thorough, and step-by-step manner to inform the prospect Canned Sales Presentation= memorized, standardized message conveyed to every prospect

Marketing Channel/ Channel of Distribution

a set of firms and individuals involved in the process of making a product or service available for use or consumption It is the end part of supply chain

Horizontal

channel members at the same level work together through formal arrangements o Ex: Meeting of the Marked Tattoo convention in Pittsburgh

Independent/Conventional

channel members mostly work independent of one another

Discrepancy of Assortment

channel members provide a variety of products in one location o Ex: Beer distributors also have cigars, candy, and other beverages

Discrepancy of Quantity

channel members purchase large quantities from manufacturers and break them down into smaller quantities their customers can handle o Ex: When sheetz sells beer, they can't hold whole pallets of beer

Pulse Schedule

combines continuous and flighting o Steady base level throughout the year but increasing during certain periods

Public Relations

communication management that seeks to influence feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees and other publics about a company and its products o Evaluates public attitudes o Identifies issues of public concern o Executes programs to gain public acceptance

Presentation

convert a prospect into a customer by creating a desire for the product or service

Integrated Marketing Communications

designing marketing communications programs that coordinate all promotional activities to assure a consistent message at every contact point where a company meets the consumer o Media advertising, personal selling, sales promotion, public relations, direct marketing, social media o CUSTOMER FOCUSED

Direct Marketing

direct communication with consumers to generate a response in the form of an order, request for more information, or visit to the store o Ex: Face to face, direct mail, catalogs, telephone solicitations, online, etc.

Form Utility

enhancing the good to make it more appealing to buyers o Ex: steam, hang, display a shirt nicely

Stimulus-Response Format

given the appropriate stimulus by a salesperson, the prospect will buy Needs a lot of trial and error, hoping to hit the right button Suggestive selling

Possession Utility

helping buyers take possession of a good or service so they can enjoy the product

Media Scheduling

is when you run your ads and such

Pretesting

make sure people are interpreting the message as intended o During creation of the ad to assess execution techniques o Are elements working together to accomplish what they're intended to

Channel of Distribution

manufacturer > resellers > consumers

Listen on Social Media

monitor what is being said about the brand o Rich source of marketing research

Technical concerns in direct marketing

most marketers get their information from databases to collect info about consumers; many places have opt-in requirements

PR Activities

news/press releases, news/press conferences, media relations, sponsorships (events, issues/causes), lobbying, consumer education, crisis management (needs to start before a crisis happens

Publicity

non-personal, indirectly paid presentation of an organization, product, person, or idea o Publicity is generated by an ad, a product, etc. o Ex: A lot of publicity was generated from Volvo commercial of man doing split o Publicity is NOT free Cost is indirect

Reach

number of different people or households exposed to an advertisement; often expressed as a percentage of the total target market

Vertical

o Administered- no common ownerships or contractual relationships, dominant channel member controls the relationship o Contractual- independent firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone o Corporate- Parent company owns multiple levels of channel and can control and dictate the priorities of the channel

4 Types of channels for consumer products:

o Direct Channel: Producer to Consumer o Retail Channel: Producer to Retailer to Consumer o Wholesaler Channel: Producer to Wholesaler to Retailer to Consumer o Agent/Broker Channel: Producer to Agents/Brokers to Wholesalers to Retailers to Consumers

What comprises Promotion P

o Includes: advertising, sales promotion, personal selling, public relations, and direct marketing o Must think big picture about what you're trying to accomplish with the communications program (will be a combo of big picture goals) o Customer is the center of the marketing strategy

appropriate/critical to use personal selling as a promotion tool

o Push strategies o B2B Products o Complex and expensive products o Products requiring a "personal touch"

Vertical Conflict

occurs between different levels in a marketing channel 1. Channel member bypasses another member and sells/buys products directly (DISINTERMEDIATION) 2. Disagreements over how profit margins are distributed among channel members 3. Manufacturers believe wholesalers/retailers are not giving their products adequate attention

Horizontal Conflict

occurs between intermediaries at the same level in a marketing channel (between two or more retailers) 1. A manufacturer increases its distribution coverage in a geographical area 2. Different types of retailers carry the same brands

Advertising

paid form of non-personal communication about an organization, good, service, person, or idea by an identified sponsor • Execution must accomplish what it wants to o Ex: LGTV advertising on magazine spine

Global concerns in direct marketing

privacy is an issue

Time Utility

providing products when customers want to purchase them

Place Utility

providing products where customers want to purchase them

Flighting Schedule

runs in spurts throughout the year o Periods of heavy advertising followed by periods of no advertising to reflect seasonal demand o Could be school year, holiday, season

Continuous Schedule

runs steadily throughout the year

Consumer-Oriented Sales Promotions

sales tools used to support a company that are direct at the ultimate consumers o Coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point-of-purchase displays, rebates, and product placements

Trade-Oriented Sales Promotions- s

sales tools used to support a company's advertising aimed at the wholesalers, retailers, or distributors o Allowances and discounts: merchandise allowance, case allowance, and finance allowance o Cooperative advertising: manufacturer pays a percentage of the retailer's advertising expense o Training of distributors' salesforce

Sales Promotion

short term inducement of value offered to arouse interest in buying o Ex: coupons, sales, contests, sweepstakes, etc.

Guerrilla Marketing/Alternative Media

techniques use low-cost unconventional means to convey the message and break through the clutter of traditional media o Ads on non-traditional items o Advertainment: looks exactly like entertainment (BMW short films) o Advergaming: executing and creating games (Warhol Museum hiding books)

Logistics

the activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

Frequency

the average number of times a person in the target audience is exposed to a message or advertisement

Appeals

the different emotions markets try to target o The common ones are Fear, Sex, and Humor

Supply Chain Management

the integration and coordination of all activities across firms in a supply chain for the purpose of producing

Relationship Selling

the practice of building ties to customers based on a salespersons' attention and commitment to customer needs over time o Involves mutual respect and trust among buyers and sellers o Creates long-term customers

Logistics Management

the practice of organizing the cost effective flow of raw materials, in-process inventory, finished goods and related info from point of origin to point of consumption to satisfy consumer requirements (Efficient flow of materials)

Need-Satisfaction Format

the salesperson dominates the conversation by probing and listening to the needs and interests of the prospect Adaptive Selling= adjusting the presentation to fit the selling situation Consultative Selling= focuses on problem identification

Hierarchy of Effects

the sequence of stages a prospective buyer goes through from initial awareness to eventual action 1. Awareness: consumer's ability to recognize and remember the product 2. Interest: increase in consumer's desire to learn about some features of the product 3. Evaluation: consumer's appraisal of the brand on important attributes 4. Trial: consumer's first purchase and use of the product 5. Adoption: through a favorable experience on the first trial, the consumer's repeated purchase and use of the product

Supply Chain

the various firms, both internal and external to the company, involved in performing the activities required to produce and deliver the product to consumers or industrial users o Refers to all the firms as the product moves through from raw materials to the end consumers

Personal Selling

two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision o Face to face, video conferencing, phone or internet o Advantages: answer questions, create relationship, most flexible method of promotion, market information o Disadvantages: most expensive per contact, can't script and completely control

Personal Selling

two-way flow of communication between buyer and seller designed to influence a person's or group's purchase decision

Owned Media

whatever the brand puts out without paying o Brands publish own content to maximize brand value

Earned Media

when an outside source reports on the brand o Public relations/publicity model

Consumer Generated Media

when consumers speak out about the product o Social media makes it easier for consumers to connect and have a bigger impact

channel conflict (vertical and horizontal)

when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals

primary motivations for mobile app use

• "Me time"- relaxation and entertainment • Socializing • Shopping • Accomplishing- managing finances, health, and productivity • Preparation- planning for upcoming activities • Discovery-seeking news and information • Self-Expression- hobbies and interests **Must think about how customers spend time on apps to see if you can be effective with social media

value added by personal selling

• Allows the marketer to create a relationship and have a conversation • Gives customer a lot of information

What are important characteristics of IMC?

• Begins with the customer • Creates a single unified voice • Seeks to develop relationships • Involves 2-way communication • Generates a continuous stream of communication • Measures results based on actual feedback

Control Continuum

• Companies want control over the message, but control is expensive • You can't control how people interpret things, so you must try to give the best image Advertising Sales Promotion Personal Selling Public Relations Word of Mouth (order of high control to low control) • Personal Selling=can't script a conversation • PR= a lot of publicity and you can't control what reporters/magazines say

Criteria/concerns for selecting modes of transportation

• Cost • Transit Time • Reliability- consistency • Capability- abilities and skills, proper equipment • Accessibility- access to particular routes or networks • Traceability- can shipments/items be located easily

why direct marketing is growing so quickly

• Direct marketing uses direct communication with consumers to generate a response in the form of an order, request for info, or a visit to the store o Can be face to face, direct mail, catalogs, telephone, direct response advertising, and online communications • The ability to customize messages to create one-on-one interactions is appealing because it leads to more favorable attitudes

Comparative Advertising

• Form of competitive advertising • Direct Comparative- comparing with another brand o Ex: Orville Redenbacher throwing shade at PopSecret • Indirect Comparative- comparison to "the leading product on the market"; doesn't target a particular brand • Comparative advertising is good when it is clear that our product is better

how the promotion mix changes over the four life-cycle stages

• Introduction Stage- create awareness; all promotional mix elements are used • Growth Stage- Want to persuade the consumer to buy; advertising and personal selling are used • Maturity Stage- maintain existing buyers; advertising and sales promotions are used • Decline Stage- little money is spent here

Main Objectives for Social Media

• Listen and Learn: monitor what is being said about the brand; develop a listening strategy • Build relationships and awareness: open dialogues with stakeholders; answer customer questions candidly • Promote products and services: get customers talking about products and services • Manage reputation: respond to comments and criticisms; participate in forums and discussions • Improve customer service: seek out displeased customers and engage them directly to solve issues

the considerations to evaluate and select the right media

• Problem solving approach designed to select the best communication media given the specific objectives • Outlines the planner's best estimate of which media and vehicles will be most effective in attaining campaign objectives o Target market profile o People reached by different vehicles o Advertising patterns of competitors o Capability of medium to convey desired info o Compatibility of product with editorial content • Must realize the advantages and disadvantages of different types of media • Must select the right media o For complexity: tv, print ads (especial magazine) Billboards would be bad for complexity

importance of customer relationship management to direct marketing

• This is sending catalogs to certain customers • Concerns with direct marketing: o "Opt-in" and "Opt-out" regulations Some place have systems where you have to opt in to receive messages, others must allow people to opt out o Tracking Concerns o Ethical concerns vs regulatory requirements

4 types of utilities

Time, Place, Form, Possession

Institutional Advertising

advertisements that build goodwill or an image for an organization o Advocacy- position of the company on an issue Ex: Coca Cola billboard with WWF and Rainbow Absolut Bottle o Pioneering- what a company is, what it can do, where it is located o Competitive- promote advantage of a product class (primary demand) Ex: "Beef for Dinner", Cotton commercials o Reminder- bring company's name to the attention of the target market again

Product Advertising

advertisements that focus on selling a particular good or service o Pioneering/Informational- what it is, what it can do, where it can be found o Competitive/Persuasive- promotes specific brand's features and benefits o Reminder- reinforce previous knowledge of a product

Promotion in the promotion mix

any communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response

Advertising

any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor

Paid Media

anything the brand pays for to be put out o Advertising, personal selling, direct marketing, sales promotions