Marketing Final
"cost of goods sold"
- .75P - costs you .75 to produce each product
Where does advertising fit into the principles of marketing
- Promotion (4 P's) - one small part of promotion, just like it's one small part of marketing
What are some of the evolutions of advertising
- Romans had highways and "billboards" for travelers - industrial and transportation revolution (mid 19th century) when marketing started to be needed
Contribution Margin
- extra revenue that exceeds extra cost if you sell one more unit - .25P - gain .25 for each extra unit you sell
shared media
- overlap of earned and shared on social media - attracts audience because it's easier to make connections (new media)
3 requirements of traditional advertising
- paid message - identified sponsor - impersonal medium
Differences between New and Old media
- relative lack of control - effect on word of mouth - listening potential - measurement issues
What's an important thing to remember when promoting a product
- what you do is more important than what you say - if you don't make a good first impression it's hard to come back from it - Toothpaste: you get people to buy it (great) but if they don't enjoy the product they won't keep using it
Measurement issues in New vs. Old media
- when/how/why marketing works which makes it hard to measure - online is so new but social media will make it easier to measure this (advantage)
P&G Tremor
1. Identified "cool kids" in schools then sent them products to spread the word about the product 2. Switched to "cool moms" to send products because high school students are only around for so long
3 ways universities know if a student is coming to their college
1. If they're alumni children 2. How early they apply to University 3. If they have had an on campus visit
Challenges in reaching young adults in advertising
1. Less conventional media attention (print media) 2. Multi-tasking and Multi-media exposure (too many distractions- studying for 4 hours example) 3. Receptive to contemporary "media" events, sponsorships, etc, 4. Buzz-viral communication (word of mouth online)
What are some cons to Prime Time TV 30 second spot
1. Limited impact- impact on average is 0 2. Waste- people not in our market are exposed to your ads making them not effective 3. Inflexible- mostly seen in old media when a news paper goes to everyone and not a specific market
What are other issues that come with advertising
1. most new products fail 2. effects of ads is usually hard to measure 3. arbitrary burnets- budgets are oversimplified because advertising is so difficult to measure
What typically happens with ads trying to reach their audience
1. screened out 2. cluttered out 3. competed out
What century does traditional media come from
20th century
Percent of ad expenditures for New vs. Old in 2018
60% in old 40% in new
What movie unexpectedly became popular after media exposure by the people/word of mouth online?
Blaire Witch Project
CBS is the highest rated network for the past 9/10 years, so why can't they charge higher prices for partners?
CBS only attracts an older demographic so they can't charge higher prices because they don't have an outreach to young adults
____ links the purchase of an organization's products to support of philanthropic organizations favored by the target market. a.Cause-related marketing b.Charity-related promotion c.Selective demand promotion d.Promotion e.Charitable nonprofit marketing
Cause-related marketing
A sharing of meaning defines a. promotion. b. noise. c.interference. d.information. e.communication.
Communication
marginal cost in advertising
Extra cost associated with some kind of change (spending more money on advertising- how much extra money going out)
Combination of TV and Radio advertisement
Gives you the most bang for your buck - TV ads are expensive - radio ads echo TV ads/repeat first basic message for less
________ that can allow almost real-time measurement and evaluation should be embedded at the onset of a social media strategy. a.Strategic performance indicators b.Click-through rates c.Hashtags d.Key performance indicators e.Google Analytics
Google analytics
A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of a.stimulating demand. b.encouraging product trial. c.retaining loyal customers. d.creating awareness. e.identifying prospects.
Identifying prospects
Illusion VS. reality for advertising (or increase of)
Illusion- People will notice if we start advertising more Reality- out of the 3000 ads seen a day, a very minimum amount is actually noticed by their audience (think huge zit on your nose- you think everyone will notice but people will only notice if they want to or already know you/are invested in you)
What are some of the first brands when marketing started in mid 19th century
Ivory soap, quaker oatmeal, borden milk
How is advertising actually used/seen in the full picture/different parts of marketing
Marketing is like a tool box, and each aspect is a tool. - Advertising is like the first tool you think of (hammer- very small factor) - You can't use a hammer to solve all your needs (need a paint brush to paint, screwdriver for screws)
Listening potential in New vs. old media
New: lots of challenges to get information on market research but there's still potential
Effect on word of mouth in New vs. Old media
New: once online it becomes more popular which can be a positive or negative (multiple communication)
Relative lack of control in New vs. old media
New: social media has dialogue (multiple communications), space is shared with other markets, embarrassing things get out easier (news) Old: one way communication, environment is more controlled
earned media
Organizations earn the attention that they are getting (+/-) - news stories on TV or article in paper
Why at first glance marketing looks inexpensive example
Prime TV 30 Second Spot Cost- 400,000 Outreach- 20 million people = 2 cents per person BUT there's almost never that much impact/those 20 million may not all be your respective audience
Combination of TV media and Social media
TV media is still the biggest outreach and social media allows you to zero in on specific audiences
Why is there price discrimination in the 3 criteria for a student to go to a University
When a University knows that a student will most likely come to the college they will sometimes give them less scholarships because they know they have a higher chance of coming (give other people scholarships as incentive)
The fact that consumers tend to trust other consumers over corporations and often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions has fostered the growth of sites like a.Reddit. b.Google+. c.Tumblr. d.Yelp. e.Pinterest.
Yelp
A special form of licensing in which one company grants another company the right to market its product and name in accordance with its standards in exchange for a financial commitment is called a.franchising. b.a joint venture. c.a strategic alliance. d.direct licensing. e.contract manufacturing.
a franchising
An informed guess or assumption about a certain problem or set of circumstances is known as a.managerial intuition. b.a hypothesis. c.good research design. d.a description of the situation. e.a reliable guess.
a hypothesis
The feasibility and degree of globalization is determined by the a.degree of similarity among the various environmental and market conditions. b.laws of the nation. c.degree of adoption of Western culture. d.culture of the nation. e.degree of commitment by local managers.
a.degree of similarity among the various environmental and market conditions.
When products are introduced into one nation from another, acceptance is far more likely a.if there are similarities between the two cultures. b.if packaging is adjusted to match local preferences. c.when retailers are given incentives to push the products. d.if prices are set very low. e.when bribes are paid to local officials to aid distribution.
a.if there are similarities between the two cultures.
Location is important to a retailer because a.location determines the trading area from which the store must draw its customers. b.suppliers charge more to service stores in certain trading areas. c.a desirable location appeals to consumers' emotions. d.location is the major determinant of store image. e.convenient location is an essential customer service element.
a.location determines the trading area from which the store must draw its customers.
Buyers who focus on purchasing products that signify prominence and status are a.prestige-sensitive buyers. b.status-conscious consumers. c.price-conscious consumers. d.value-conscious consumers. e.socially-elite buyers.
a.prestige-sensitive buyers.
Although telephone surveys can be conducted very quickly, a major limitation is a.that only a small portion of the population likes to participate in telephone surveys. b.that few companies prefer this survey method. c.the expense compared to in-home interviews. d.the difficulty in asking probing questions. e.the ability to gain rapport with respondents.
a.that only a small portion of the population likes to participate in telephone surveys.
The amount of profit a channel member expects depends on a.what the intermediary could earn if it were handling a competing product instead. b.the amount of discounts for large orders provided by the producers. c.the number of channel support activities provided by the producers. d.the amount of effort required to carry the product. e.the type of distribution channels involved.
a.what the intermediary could earn if it were handling a competing product instead.
When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. a.institutional b.issue c.product d.competitive e.advocacy
advocacy
Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's a.location. b.decor. c.atmospherics. d.services. e.environment.
atmospherics
An advertising platform is the a.consumer advertising research conducted. b.basic issue or selling point that an advertiser wishes to include in an advertising campaign. c.objective of the advertising campaign, stated in precise and measurable terms. d.broad objectives of the advertising campaign. e.form in which the basic issues of the campaign should be presented.
b.basic issue or selling point that an advertiser wishes to include in an advertising campaign.
Designing research procedures that produce reliable marketing data means that a.sampling must be done in a completely random manner. b.others using the same procedure will get almost identical data. c.the procedure may give results that contradict other research studies. d.the procedure must give results that support the hypothesis. e.the procedure must not give results that contradict other research studies
b.others using the same procedure will get almost identical data.
Retailing is best characterized as a.arrangements whereby a supplier grants a dealer the right to sell its products. b.transactions in which the buyer intends to consume the product through personal, family, or household use. c.exchanges that take place only in a store or service establishment. d.large organizations that carry wide and deep product mixes. e.transactions in which the purchaser intends to use the product for resale or for business operations.
b.transactions in which the buyer intends to consume the product through personal, family, or household use.
The types of prices that appear most often in ads are ___, while the types of prices that occur least often in ads are ____ prices. a.sale; reference b.comparison; cost-plus c.discount; cost-plus d.bargain; premium e.reference; comparison
bargain; premium
How do inexpensive products advertise?
by getting people to buy and try their products - Toothpaste: you get people to buy it (great) but if they don't enjoy the product they won't keep using it
how do expensive products advertise?
by getting people to think about the product - Do I need or want this expensive car?
Pricing the basic product in a product line low while pricing products that go with the basic product at a higher level is called a.price skimming. b.price lining. c.captive pricing. d.premium pricing. e.bait pricing.
captive pricing
The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. a.trial b.proposal c.overcoming objections d.closing e.approach
closing
Stealth Marketing
consumers are completely unaware that they are being marketed to
The federal government often uses ____ pricing when it grants defense contracts. a.markup b.cost-plus c.competition-based d.differential e.breakeven
cost-plus
Customer density and distribution are important factors in a.prospecting. b.establishing sales force objectives. c.creating sales territories. d.motivating salespeople. e.compensating salespeople.
creating sales territories
buzz marketing
cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities
Brands that are promoted through comparative advertising are most likely to be a.competing in a less competitive market. b.attempting to compete on a nonprice basis. c.market leaders. d.brands that are attempting to compete with market leaders. e.primarily services rather than tangible goods.
d.brands that are attempting to compete with market leaders.
One trend that has caused consumer-generated information to gain importance is a.the globalization of companies. b.the increase in consumer buying power. c.the recession. d.the increase of consumers using digital media to publicize their own product reviews. e.the increase in store brands.
d.the increase of consumers using digital media to publicize their own product reviews.
Has advertising increased or decreased in the total of promotion expenditures since 1980?
decreased*** slide 162
Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ____ research. a.primary b.experimental c.exploratory d.descriptive e.secondary
descriptive
Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a.Direct marketers b.Discount stores c.Department stores d.Traditional specialty retailers e.Warehouse showrooms
discount stores
One of the biggest mistakes a marketer can make when engaging in digital marketing is to a.focus on technology. b.focus on competitors' digital marketing efforts. c.focus on price. d.fail to devote sufficient resources to it. e.treat it like a traditional marketing channel
e.treat it like a traditional marketing channel
Why can companies benefit from mixing different forms of promotion (advertisement)
each form has different strengths and weaknesses so combining them can allow for more effective outreach
Public relations focuses on a.reaching the firm's target market. b.diminishing the image of rival firms. c.enhancing the image of the total organization. d.improving employee morale. e.boosting product sales.
enhancing the image of the total organization
the forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy. a.environmental analysis b.social audit c.political analysis d.regulatory analysis e.marketing analysis
environmental analysis
A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n) a.neighborhood shopping center. b.off-price mall. c.strip mall. d.factory outlet mall. e.lifestyle shopping center.
factory outlet mall
The final stage of the selling process is a.presentation. b.overcoming objections. c.following up. d.closing. e.trial closing.
following up
competed out ads
having to keep up with other companies and their marketing EX. auto insurance ads don't need to advertise because it doesn't help their sales but they do it bc everyone else is
Advertising is ____ and ____ but not as much as people think
important; powerful
As a result of the escalating use of digital media, some of the marketer's control over dispensing product information has been placed a.in danger. b.in the hands of the consumer. c.under the authority of the government. d.in the hands of the company's competitors. e.in the hands of the stockholders. Hide Feedback
in the hands of the consumer
A product under nonprice competition would most likely NOT succeed in the market if a.a new advertising campaign is established for it. b.it is priced near the competitors' price. c.it is easy to duplicate. d.its quality has been upgraded. e.it is packaged differently from similar products.
it is easy to duplicate
Cluttered out ads
it's like being in a loud room, it's hard to hear the person next to you and as more people come in it gets harder and harder
How much money do B2B companies spend on advertising
less than 1%
How much money do B2C companies spend on advertising
less than 6-8%
What do companies mean when they say we don't do much marketing?
means they don't do much advertising
Intensity-percentage of sales spent on advertising
measure of importance of advertising in a business
Owned media
media an organization completely controls (websites, building signs) - have less credibility
A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) a.media plan. b.media platform. c.advertising media appropriation. d.advertising plan. e.media audit
media plan
paid media
media that a company pays to have
How many marketing tacts are we exposed to daily?
more than 3000 - more than it use to be but harder to get message through now that there are so many messages
Sellers that emphasize distinctive product features to encourage brand preferences among customers, rather than price, are practicing a.price competition. b.competitor differentiation. c.brand differentiation. d.product competition. e.nonprice competition.
nonprice competition
A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time. a.periodic discounting b.penetration pricing c.random discounting d.reference pricing e.everyday low pricing
periodic discounting
Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is a.advertising. b.personal promotion. c.individual promotion. d.public relations. e.personal selling.
personal selling
Which of the following is the most precise, enabling marketers to focus on the most promising sales prospects? a.Advertising b.Public relations c.Personal selling d.Sales promotion e.Publicity
personal selling
All of the following are forms of psychological pricing except a.customary pricing. b.prestige pricing. c.odd-even pricing. d.price skimming. e.reference pricing.
price skimming
The two basic types of sampling that marketing researchers use are a.probability and nonprobability. b.even and odd. c.random and nonrandom. d.planned and spontaneous. e.stratified and quota.
probability and nonprobability
What is a marketing student's first response to a marketing situation
put more money into advertising (this is wrong)
______ that generates loyal long-term customers is likely to be extremely profitable in repeat sales as well as the money saved in trying to find new customers. a.Missionary selling b.Relationship selling c.Tactical selling d.Team selling e.Creative selling
relationship selling
A consumer contest is an example of a.sales promotion. b.social media. c.personal selling. d.direct selling. e.public relations.
sales promotion
Bzz Agent
sign up clients to help them market products by offering free trials of products when people provide feedback and spread the word about the product
Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective. a.market share b.survival c.profit d.status quo e.product quality
status quo
marginal revenue in advertising
the change in total revenue generated by some kind of change (spending more money on advertising- how much extra money is coming in)
breakeven point
the point at which the costs of producing a product equal the revenue made from selling the product
Preconceived glamor behind advertising jobs
trying to break into advertising is like trying to break into show biz: not as glamorous as it looks
Young adults and advertising
very skeptical, cynical re mainstream advertising, etc.
Screened out ads
we simply block things out due to lack of interest - not noticing someone's clothes in class next to you
A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction. a.direct marketer b.retailer c.wholesaler d.offshorer e.franchisor
wholesaler
Why is it risky for a company to invest in advertising
you have to put money in upfront and there's no guarantee that you'll get that money back/the ad will pay off