MkGT 330 exam 3

What some reasons why business would put out a new release

-Changes in anyone at the top of the business to someone else because we want to notify management and want to make sure it's documented, and for investors. You want to be a leader with your company and make sure it is put out first before the new releases it. Entering a new product or product line. Want to control the story and be transparent.

Personal Selling Goals

-Finding prospects, determining their needs, persuading prospects to buy, following up on the sale, and keeping customers satisfied. Identifying potential buyers interested in the firms' products is critical. • Salespeople can help buyers with information and help encourage their purchase with them • Sales personnel must be well trained regarding both their products and the selling process in general • Developing ongoing customer relationships today requires sales personnel with high levels of professionalism as well as technical and interpersonal skills • Customer Relationship Management (CRM) is a technology used to store customer data to better serve customers

Discounts

-Quantity discounts: deductions from the list price for purchasing in large quantities -Cumulative discounts: Quantity discounts aggregated over a stated time period. -Noncumulative discounts: One-time price reductions based on the number of units purchased, the dollar value of the order, or the product mix purchased. -Cash discounts: A price reduction given to buyers for prompt payment or cash payment -Seasonal Discounts: A price reduction given to buyers for purchasing goods or services out of season -Allowance: A concession in price to achieve a desired goal. -Geographic pricing: Reductions for transportation and other costs related to the physical distance between buyer and seller. -F.O.B. factory: The price of merchandise at the factory before shipment -F.O.B. Destination: A price indicating the producer is absorbing shipping costs.

Advertising Message

-The basic content and form of an advertising message are a function of several factors: • Product features, uses, and benefits • The intensity of the advertising • Characteristics of people in the target audience • The advertising campaign's objectives and platform • Choice of media

Transfer Pricing

-Uniform geographic pricing: Charging all customers the same price, regardless of geographic location -Zone pricing: Pricing based on transportation costs within major geographic zones -Base-point pricing: Geographic pricing that combines factory price and freight charges from the base point nearest the buyer -Freight absorption pricing: Absorption of all or part of actual freight costs by the seller. -Transfer pricing: Prices charged in sales between in organization's unis.

1.Dell introduces a new voice-activated personal computer that does not require a keyboard. Dell charges the high price of $2,500 per unit, thus generating large profits because it has a 20% market share. Dell's major problem in the future will most likely be 2.What type of pricing objective would an organization use if it were in a favorable position and desired nothing more? 3.If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur 4.After selecting a pricing strategy, what is the next step in the establishment of prices? 5.A Kohl's manager designs the casual clothing department such that one of Kohl's private label pairs of jeans, priced at $44.99, is positioned next to a national brand of jeans, such as Levis, priced at $59.99. What is the manager attempting to accomplish? 6.Amtrak is considering two pricing strategies for its service. One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel, which illustrates _____ pricing. The second is to price its train tickets so that the further away the travel date, the greater the discount, which is best described as _____. 7.A certain location of Hamish's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must Hamish's serve per year in order to break even? 8.Customers always interpret a higher price to mean higher quality. 9.Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of 10.Reference pricing is

1.Competition 2.Status quo 3.a marginal cost 4.Determining a specific price​ 5.Reference pricing strategy 6.demand-based; differential pricing 7.5,000 (200,000/40) 8.F 9.Product price 10.pricing a product at a moderate level and positioning it next to a more expensive model or brand.

1.Before contacting a prospect, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called 2.Developing a list of potential customers is called prospecting. 3.Listening on the part of a salesperson is a major component in making a presentation. 4.It is never good to ask customers questions while giving the sales presentation, as the customer may raise objections that the salesperson cannot overcome 5.A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) 6.A sales rep's actual sales relative to sales potential are relevant to the sales manager in which of the following phases of the sales management process? 7.Following up is the part of the sales presentation in which hidden objections are discovered. 8.Because salespeople are an expense to the company, yet they are the ones who generate revenues for the company, management must strive to achieve optimality in the size of its sales force. 9.A salesperson's performance is often compared with the performance of other salespeople operating under similar conditions. 10.During the personal selling process, a salesperson, if possible, should handle objections when 11.Although 80% of clients are willing to give referrals, __ are ever asked. 12.A new soap manufacturer wants to get its product into national retail stores. It recently developed a product that executives think will be able to compete against top brands such as Dove and Dial. However, they know that retailers are often skeptical of carrying new products when their success is not known. The soap manufacturer therefore offers a price reduction to the retailers for each case of soap they buy. The soap manufacturer is most likely using a

1.Preapproach 2.True 3.True 4.False 5.Technical salesperson 6.Controlling and evaluating sales force performance 7.False 8.True 9.True 10.They arise 11. 20% 12.buying allowance

General Steps in the Sales Process

1.Prospecting- Developing a database of potential customers. Meeting a potentially new client at a trade show and exchanging contact information. 2.Preapproach- Find and analyze information about each prospect -Identify key decision makers, review account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature. 3.Approach- Initial formal contact with a potential client. You have your first formal meeting with a client to discuss their needs. 4.Making the presentation- Attract and hold the attention of the potential client • Provide information about their products and services • Listens to potential clients needs • Attempts to persuade potential client 5.Overcoming objections- Anticipate any possible objections and counter them before the prospect raises them. After pitching your products and services, the potential client comes back with concerns and issues. 6.Closing the sale- negotiate final terms (product specific, financing, delivery, support, dates, etc.) and ask the potential client to sign a contract or make a purchase 7.Following up-You visit a client after selling a product to them and make sure their everything is working out. • In the follow-up stage, the salesperson determines whether the order was delivered on time and installed properly • He or she should contact the customer to learn if any problems or questions regarding the product have arisen • The follow-up stage is also used to determine customers' future product needs • This stage is vital to establishing a strong relationship and creating loyalty on the part of the buyer How many steps are in the sales process=7.

1.Abbot Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new drug. This example illustrates Abbot's use of which one of the following elements of the promotion mix? 2.A breakfast cereal maker most likely will not use personal selling to promote its product 3.A consumer contest is an example of 4.Advertising can be cost efficient but only if it 5.A new soft drink company took out a national advertisement announcing its new butterscotch-flavored soda. However, while people in one part of the country recognized they were talking about a soft drink, others believed it was an ice cream drink. Still, others use the term to refer to something mixed with alcoholic drinks. Therefore, there was much confusion about the term and what it means. The mistake here lies with the 6.A news story about a product is an example of sales promotion. 7.Before the release of the newest iPhone by Apple Inc., an Apple juice brand used an actor dressed up like an apple to hold a sign encouraging those waiting in line to try its juice. The brand thought this would be a creative event that would spark an interest in Apple iPhone fans as they stood waiting in line with little else to do. This is an example of 8.By promoting the fact that avocados are good for you and can be used to make tasty snacks, the California Avocado Grower's Exchange attempted to stimulate 9.Coupons are a form of sales promotion. 10.Dyson is known for product innovation and the creation of products that go beyond consumer expectations, such as the AirBlade hand dryer, AirMultiplier bladeless fan, and the Supersonic hair dryer. In order to develop and deliver products to consumers that are high in value and successful, the firm implements a variety of ________ activities in order to stay abreast of consumer trends and preferences and to determine the potential for success of new products

1.Sales promotion 2.True 3.Sales promotion 4.reaches a vast number of people at a low cost per person. 5.source 6.False 7.Buzz marketing 8.Primary demand 9.True 10.Marketing research

1.Amazon.com, eBay, Zappos, and a number of other companies engage in e-tailing through their websites. 2.Social media should be included only in marketing strategy. 3.A new trend in video marketing is the use of amateur filmmakers. 4.______ do not engage in paid internet advertising as much due to smaller budgets. 5.Addressability allows customers to respond to a company's marketing communications by expressing their reactions and desires directly to the company 6.The fact that most companies in the United States do not routinely monitor consumers' postings to online social networking sites represents a missed opportunity to gather information. 7.Smartphones contain ____ that help consumers access more information about businesses. 8.Zeke is new to the realm of digital marketing. Recently, he saw a blog post about his company that was just untrue. He demanded the blogger remove the post. Much to his surprise, however, the post had already spread to other sites. Zeke immediately released content on the corporate website and social media pages with information that refuted the post. Nevertheless, the original post continued to spread. Zeke does not understand why users are spreading the post when his organization has posted information claiming that the post is untrue. Zeke has failed to realize that 9.____ allows customers to express their needs and wants directly to a company in response to its marketing communications. 10.Earned media is the use of traditional print and broadcast advertising as well as advertising on social networks.

1.True 2.False 3.True 4.small businesses 5.False, Addressable marketing refers to the ability to use media to target specific individuals, rather than large groups of anonymous third-party 6.True 7.Applications 8.consumer-generated digital content is often trusted over corporate content. 9.Interactivity 10.False

1.A car dealership is altering how it determines its advertising appropriation. It is moving from an approach where it sets its budget based on projected revenue for the coming year to one in which it identifies the cost required to meet certain goals. It is switching from the _____ approach to the _____ approach. 2.Ad agencies usually work jointly with the firms to develop the ad campaigns. 3.Advertising appropriations are largest for which type of product? 4.Almost all advertising campaigns are aimed at producing immediate sales. 5.Artwork, a major part of most advertisements, consists of the 6.Comparative advertisements mention the actual names of competing brands. 7.If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy advertising. 8.Lack of control over the content and timing of public relations is a limitation in using publicity-based public relations tools. 9.Which of the following statements is true about public relations? 10.Advertising is paid nonpersonal communication transmitted through mass media.

1.percentage-of-sales; objective-and-task 2.True 3.Convenience goods 4.False 5.illustration and the layout. 6.True 7.False 8.True 9.Marketers cannot control whether the media choose to publish their public relations material. 10.True

1.Hotels strive to price rooms to maximize resources by quickly adapting to changes in demand. Part of this involves anticipating consumer behavior and calculating a number of different factors, including demand for rooms during a particular time period, likely length of stay, types of rooms likely to be requested, etc. They want to be able to sell rooms at the right price to the right people. This pricing strategy is an example of 2.Myrna's company just purchased $600 worth of supplies from Staples. The terms for payment are 2/10 net 30. If Myra's firm pays in the next week, it will pay ___________. If Myrna's company waits three weeks to pay Staples, it will pay _____________. 3.A firm can survive in the long run only if its products are sold below cost. 4.A company trying to position itself as value oriented should NOT 5.Profit margins for marketing channel members must be considered when determining the price of a product. 6.Costs are a major issue when establishing price. 7.Barter is the oldest form of exchange. 8.Knowing the target market's evaluation of price allows the marketer to know how much emphasis to place on price and how to price a product relative to competition. 9.Pricing objectives should be stated explicitly, stated in measurable terms, and specify a 10.If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

1.yield management. 2.$588;$600 3.F 4.use premium pricing for its products. 5.T 6.T 7.T 8.T 9.time frame for achieving them. 10.2,000

publicity

A news-story type of communication about an organization and/or its products transmitted through a mass medium at no charge. • News release (press release) - A short piece of copy publicizing an event or a product • Feature article - A manuscript of up to 3,000 words prepared for a specific publication • Captioned photograph - A photo with a brief description of its contents • Press conference - A meeting used to announce major news events *Facebook is the most popular social network worldwide of January 2022

Communication Process

A sharing of messages through the transmission of information Source: A person, group, or organization with a meaning it tries to share with a receiver or an audience Receiver: The individual, group, or organization that decodes a coded message Encoding/coding process: Converting meaning into a series of signs or symbols Message channel/communication channel: The medium of transmission that carries the coded message from the source to the receiver. Decoding: Converting signs or symbols into concepts and ideas Noise: Anything that reduces a communication clarity and accuracy Feedback: The receiver's response to a decoded message Ted is watching TV with his best friend Sally. During a commercial break Sally begins to talk. Ted is very interested in the Cheeto's commercial. Ted ignores Sally and focuses on the commercial. What role is Ted playing? =Receiver Ted is watching TV with his best friend Sally. During a commercial break Sally begins to talk. Ted is very interested in the Cheeto's commercial. Ted ignores Sally and focuses on the commercial. What role is TV playing? =Noise

Personal Selling Advantages & Disadvantages

Advantages: • Gives marketers the greatest freedom to adjust a message to satisfy customers' information needs • Is the most precise of all promotional methods, enabling marketers to focus on the most promising sales prospects • Is the most effective way to form relationships with customers Disadvantages: • Is generally the most expensive element in the promotion mix

Promotion Mix

Advertising - any paid form of presenting information about a good or services Direct Marketing - reaching customers directly without any intermediaries or any paid medium. Sales Promotion - Short term incentives given to a customer to increase sales for a period. Public Relations - building a favorable image of your company and getting out information to the public. Personal Selling - Interaction with a salesperson to influence a customer's purchase of a product or service. You run a car dealership and you talk directly to customers about which cars they would like to buy. Which form of promotion would you use? =Personal selling Your company wants to remind people of the Bubble Gum your company sells. What form of promotion would you use? =Advertising You build heavy manufacturing equipment and sell it to factories. What form of promotion would you use? =Personal selling Your business is at an event, and you are handing out can cozies with your logo on them. What form of promotion would you use? =Sales promotion Your company is excited to announce that it is expanding its operation in the next two years and you want the community to know through local news. What form of promotion would you use? =Public relations

Advertising advantages and disadvantages

Advertising Advantages: · Extremely cost-efficient when it reaches a vast number of people at a low cost per person. · Let's the source repeat the message several times. · Visibility gained can enhance an organization's image. Advertising Disadvantages: · Absolute dollar outlay can be high. · Rarely provides rapid feedback. · Often difficult to measure the effect on sales. · Less persuasive than personal selling · Has a limited time exposure. *Advertising is not advertising when it's in their own store*

Advertising appropriations:

Advertising appropriations for business products are usually quite relative to product sales, whereas consumer convenience items generally have large advertising expenditures relative to sales. o Geographic size of the market o Distribution of buyers within the market o the type of product. o the firm's sales volume relative to competitors' sales volumes.

Institutional Advertising

Advertising that promotes organizational images, ideas, and political issues • May deal with broad image issues, such as organizational strengths or the friendliness of employees • May aim to create a more favorable view of the organization in the eyes of noncustomer groups, such as shareholders, consumer advocacy groups, potential shareholders, or the general public • Advocacy advertising - Advertising that promotes a company's position on a public issue

Where do we see communication from businesses?

Advertising, personal selling, store/website (owned channels), public relations, social media, events, partners, sales promotion, email/member. (Earned channels), and internal communications.

Sales Promotion

Aimed at final consumers or users Aimed at wholesalers or retailers Aimed at company's own sales force *The free stuff to promote you to buy their stuff*

Costs and their relationships Break-even equation

Average FC: Fixed costs/quantity Average total cost: FC+VC Total cost: Average total cost x quantity Total Revenue: Quantity x Price Profit: Total Revenue-Total cost -Fixed costs/per-unit-variable costs -We start making profit once our fixed costs are paid off. -Break-even point-The point at which costs of producing a product equals the revenue made from selling the product Examples: It costs the producer of a coffee maker $44 to make each one. The producer charges wholesale distributors $55 for each coffee maker purchased. The producer's markup in dollars is ____$11____, (55-44) and in percentage terms, is ____20%____. (11/555) A clothing retailer charged $300 for a man's suit after getting it from the wholesaler for $150. The retailer's markup percentage is: 50% (150/300)

B2B vs B2C

B2B: lower volume, higher price, education, efficiency, interpersonal relationships, logic and features, long-term goals, and long sales cycle. B2C: Higher volume, lower price, entertainment, convenience, transactional relationships, desires and benefits, short-term goals, and short sales cycle.

Bait Pricing Price Lining Psychological pricing Reference pricing Bundle Pricing

Bait Pricing: Pricing an item in a product line low with the intention of selling a higher-priced item in the line. Price Lining: Setting a limited number of prices for selected groups or lines of merchandise. Psychological pricing: Pricing that attempts to influence a customer's perception of price to make a product's price more attractive. Reference pricing: Pricing a product at a moderate level and displaying it next to a more expensive model or brand. Bundle Pricing: Packaging together two or more complementary products and selling them at a single price.

Public relations advertising

Communication efforts are used to create and maintain favorable relations between an organization and its stakeholders. • Can be directed at either internal or external stakeholders • Can be used to promote people, places, ideas, activities, and even countries • Is often used by nonprofit organizations • Focuses on enhancing the image of the total organization

PR Tools

Companies use a variety of tools to convey messages and create images. • Written materials such as brochures, newsletters, company magazines, news releases, blogs, managed social media sites, and annual reports • Corporate identity materials such as logos, business cards, stationery, and signs • Speeches • Event sponsorships • Unique events

Competitive advertising

Comparative advertising - Compares the sponsored brand with one or more identified brands based on one or more product characteristics. Reminder advertising - Advertising is used to remind consumers about an established brand's uses, characteristics, and benefits. Reinforcement advertising - Advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it. Native advertising: Digital advertising that matches the appearance and purpose of the content in which it is embedded.

Competion Based Pricing Differential Pricing Secondary-Marketing pricing Periodic Discounting Random Discounting

Competition Based Pricing - Competition Based Pricing: Pricing influenced primarily by competitors' prices Differential pricing -Differential pricing: Charging differential pricing to different buyers for the same quality and quantity of product. Secondary-marketing pricing -Secondary-marketing pricing: Setting one price for the primary target market and a different target market and a different price for another market Periodic Discounting Periodic Discounting: Temporary reductions of price on a patterned or systematic basis Random Discounting Random Discounting: Temporary reduction of prices on an unsystematic basis

Type of sales promotion

Consumer Sales Promotion-Techniques that encourage consumers to patronize specific stores or try products. Trade show-Methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively. Sales force promotion-designed to encourages sales team to sell certain levels or products.

Integrated Marketing Communications (IMC):

Coordination of promotion and other marketing efforts for maximum informational and persuasive impact on customers. Integrated marketing communications also enable synchronization of promotion elements and can improve the efficiency and effectiveness of promotion budgets.

Cost Based Pricing Demand-Based Pricing

Cost-Based Pricing -Cost-based pricing: Adding a dollar amount or percentage to the cost of the product -Cost-plus pricing: Adding a specified dollar amount or percentage to the seller's cost Markup pricing -Marketing pricing: adding to the cost of the product a predetermined percentage of that cost Demand-Based Pricing -Demand-based pricing: Pricing based on the level of demand for the product

Types of salespeople

Current Customer Sales New-Business Sales Support Personal - Support selling but are not involved solely in making sales. Missionary Salespeople - Employed by a manufacture and assist other salespeople in selling their product. Trade Salespeople - Help to promote a product and assist customers. Technical Salespeople - Provide technical assistance to current customers.

Creating the advertisement

Determine goals of the advertisement • Develop written copy -The verbal portion of advertisement • Storyboard-A blueprint that combines copy and visual material to show the sequence of major scenes in a commercial. -Spoken (Script) -Text/Print • Creation elements -Artwork / Graphics =An advertisement illustration and layout -Illustrations/images-photos, drawings, charts, tables used to spark audience interest in an advertisement. -Video -Layout-The physical arrangement of an advertisement illustration and copy • Complete final production • Regional issues-versions of a magazine that differ across geographic regions

advertising campaigns

Executing the Campaign - Requires extensive planning and coordination, because many tasks must be completed on time and several people and firms are involved. • Pretest-Evaluation of advertisement performed before a campaign begins • Consumer Jay-a panel of a product's existing or potential buyers who pretest ads • Posttest-Evaluation of advertising effectiveness after the campaign • Recognition test-a poster in which respondents are shown the actual ad and are asked if they recognize it. • Unaided recall test-A posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues. • Aided recall test-A posttest that asks respondents to identify recent ads and provides clues to jog their memories. Evaluating Advertising Effectiveness - Before, during and after campaign Who Creates Advertising? • An employee of your company • An (advertising) department in your company • An ad agency hired by your company • Actual design and production may be independently contracted

Price decisions factors Value

In the context of price, buyers can be characterized by their degree of value consciousness, price consciousness, and prestige sensitivity. - Value-conscious - Concerned about price and quality of a product - Price-conscious - Striving to pay low prices - Prestige-sensitive - Drawn to products that signify prominence and status Consumers purchase on "Value" more than price. • Worth / Use • Importance • Longevity • Benefits or Perceived Value

Inside vs outside sales

Inside Sales: Salespeople who handle orders placed inside of the business, follow up on deliveries and provide technical information. Outside Sales: Salespeople who travel to meet with customers at their business or industry events.

Sales Force

Manage Salespeople and Client Flow • Sales Territories-breaking up sales by geographical areas and needs of a customer. • Delivery/Service • Products • Geographic Split Areas • Business Types -Average number of calls per day, average sales per customer, actual sales relative to sales potential, number of new-customer orders, average cost per call, and average gross profit per customer.

Marginal Analysis

Marginal analysis examines what happens to a firm's costs and revenues when production (or sales volume) changes by a single unit. • Fixed costs - Costs that do not vary with changes in the number of units produced or sold • Average fixed cost - The fixed cost per unit produced • Variable costs - Costs that vary directly with changes in the number of units produced or sold • Average variable cost - The variable cost per unit produced • Total cost - The sum of average fixed and average variable costs times the quantity produced • Average total cost - The sum of the average fixed cost and the average variable cost • Marginal cost (MC) - The extra cost incurred by producing one more unit of a product • Marginal revenue (MR) - The change in total revenue resulting from the sale of an additional unit of a product

Changes in messaging

Market introductions: "This new idea is good." Promote marketing messages. Market growth: "Our brand is best." Our option is the best options stage. Market maturity: "Our brand is better, really." Marketing less on what our product is but instead on how it's the best option/value. Sales decline: Reminder: "Stick with our brand." In this stage we want people to keep buying our product. Innovators (3-5%): Early adopters (10-15%): Early majority (34%): Late majority (34%): Laggards or non-adopters 5-16%:

Advertising campaigns media plans:

Media Plan - A plan that specifies the media vehicles to be used and the schedule for running the advertisements. Cost comparison contributor: A means of comparing the costs of advertising vehicles in a specific medium in relation to the number of people reached • Determines how many people in the target audience will be exposed to the message and the effects on those specific target markets • The media planner's primary goal is to reach the largest number of people in the advertising target that the budget will allow. • The secondary goal is to achieve the appropriate message reach and frequency for the target audience while staying within budget. • Reach - The percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period • Frequency - The number of times these targeted consumers are exposed to the advertisement

Multiple-unit pricing Everday low pricing odd-even pricing customary pricing Prestige pricing Professional pricing

Multiple-Unit Pricing: Packaging together two or more identical products and selling them at a single price. Everyday Low Pricing: Pricing products low on a consistent basis. Odd-even pricing: Ending the price with certain numbers to influence buyers' perceptions of the price or product. Customary pricing: Pricing on the basis of tradition. Prestige pricing: Setting prices at an artificially high level to convey prestige or a quality image. Professional pricing: Fees set by people with great skill or experience in a particular field. Price leaders: Products priced near or even below cost.

The advantages and disadvantages of traditional and digital advertising

Newspaper: Advantages: Reach large audience purchased to be read; geographic flexibility; short lead time; frequent publication; favorable for cooperative advertising; merchandising services. Disadvantages: Not selective for socioeconomic groups or target market; short life; limited reproduction capabilities; large advertising volume limits exposure to any one advertisement. Magazines: Advantages: Demographic selectivity; good reproduction; long life; prestige; geographic selectivity when regional issues are available; read in leisurely manner. Disadvantages: High costs; 30-to-90-day average lead time; high levels of competition; limited reach; communicates less frequently Radio Advantages: Reaches 93% of U.S. Adults; highly mobile and flexible; very low relative costs; ads can be changed quickly; high level of geographic and demographic selectivity; encouraged use of imagination. Disadvantages: Lacks visual imagination; short life on message; listeners' attention limited because of other activities; market fragmentation; difficult buying procedures; limited media and audience research. Television - Broadcast Advantages: Reaches large audiences; high frequency available; dual impact of audio and video; highly visible; high prestige; geographic and demographic selectivity; difficult to ignore. Disadvantages: Very expensive; highly perishable message; size of audience not guaranteed; amount of prime time limited; lack of selectivity in target market. Billboard/Outdoor Advantages: allows frequent repetition; low cost; message can be placed close to point of sale; geographic selectivity; operable 24 hours a day; high creativity and effectiveness Disadvantages: Messages must be short and simple; no demographic selectivity; seldom attracts readers' full attention criticized as traffic hazard and blight on countryside; much wasted coverage; limited capabilities. Websites / Apps / social media Advantages: Immediate response; potential to reach a precisely targeted audience; ability to track customers and build databases; highly interactive medium real-time analytics. Disadvantages: Cost of precise targeting are high; inappropriate ad placement; effects difficult to measure; concerns about security and privacy.

Advertising Budgets

Objective-and-task approach - Budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them. Percent-of-sales approach - Budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage. Competition-matching approach - Determining an advertising budget by trying to match competitors' advertising outlays. Arbitrary approach - Budgeting for an advertising campaign as specified by a high-level executive in the firm.

Advertising

Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media. For example: Buying space in the local newspaper to promote a new business • Advertising spread throughout our daily lives. • Advertising can have a profound impact on how consumers view certain products. • Many nonbusiness organizations—including governments, churches, universities, and charitable organizations—employ advertising to communicate with stakeholders. • Advertising is used to promote goods, services, ideas, images, issues, people, and anything else advertisers want to publicize or foster. *Advertising is a growing expense and we are spending more money on it than ever before because their more options out there to choose from.

Personal Selling

Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation. • Millions of people earn their living through personal selling. • Sales careers can offer: • High income • A great deal of freedom • A high level of training • A high degree of job satisfaction

Selling

Personal selling is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation. • Advantages: Involves more specific communication than advertising; has greater impact on customers; provides immediate feedback • Limitation: Expense • When a salesperson and a customer meet face to face, they use several types of interpersonal communication: • Kinesic communication - Communicating through the movement of head, eyes, arms, hands, legs, or torso • Proxemic communication - Communicating by varying the physical distance in face-to-face interactions • Tactile communication - Communication through touching

Price Skimming Penetration pricing Product-line pricing Captive pricing Premium pricing

Price Skimming: Charging the highest possible price that buyers who most desire the product will pay. Penetration pricing: Setting prices below those of competing brands to penetrate a market and gain a significant market share quickly. Product-line pricing: Establishing and adjusting prices of multiple products within product line. Captive pricing: Pricing the basic product in a product line is low, while pricing related items higher. Premium pricing: Pricing the highest-quality or most versatile products higher than other models in the product line.

Pricing Decisions Factors

Pricing decisions can be complex due to the number of factors to consider. · Organizational and Marketing objectives: Marketers should set prices consistent with the organization's goals and mission. Pricing decisions should be compatible with the firm's marketing objectives. · Pricing objectives: The types of pricing objectives a marketer uses have considerable bearing on the determination of prices. · Costs: A marketer should be careful to analyze all costs so they can be included in the total cost associated with a product. · Other marketing mix variables: All marketing-mix variables are highly interrelated. Pricing decisions can influence evaluations and activities associated with product, distribution, and promotion variables. · Channel member expectations: When making price decisions, a producer must consider what members of the distribution channel expect, such as discounts for large orders, prompt payment, and support activities such as sales training and sales promotion. · Customer interpretation and response: When making pricing decisions, marketers should address a vital question: How will our customers interpret our prices and respond to them? o Interpretation refers to what the price means or what it communicates to customers. o Customer response refers to whether the price will move customers closer to purchase and the degree to which the price enhances their satisfaction with the purchase experience and with the product after purchase. · To some degree, this is determined by customers' assessment of value, or what they receive compared with what they give up making the purchase. o Customers consider product attributes, benefits, advantages, disadvantages, the probability of using the product, and possibly the status associated with the product. o Customers will likely consider its price, the amount of time and effort required to obtain it, and perhaps the resources required to maintain it after purchase. · Competition: A marketer needs to know competitors' prices so it can adjust accordingly. The structure that characterizes the industry to which a firm belongs affects the flexibility of price setting. When an organization operates as a monopoly and is unregulated, it can set whatever prices the market will bear; if the monopoly is regulated, the regulatory body lets it set prices that generate a reasonable but not excessive return. · Legal and regulatory issues: o Price fixing - An agreement among competing firms to raise, lower, or maintain prices for mutual benefit. o Deceptive pricing - The use of false or misleading statements or practices to persuade buyers that a product is a better deal than it really is o Price discrimination - Employing price differentials that injure competition by giving one or more buyers a competitive advantage. o Predatory pricing - Also called undercutting, involves the intent to set a product's price so low that rival firms cannot compete and, therefore, withdraw from the marketplace. A global problem affecting business pricing strategies is the growing market for

Product Advertising

Product advertising - Advertising that promotes the uses, features, and benefits of products. Two types of product advertising: Pioneer advertising - Advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product. Used most often for products before they hit the market and for products in the introductory stage of the product life cycle. Competitive advertising - Tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands.

Promotion

Promotion: Communication to build and maintain relationships by informing and persuading one or more audiences. For maximum benefit from promotional efforts, marketers strive for proper planning, implementation, coordination, and control of communications. Possible objectives of promotion: Create awareness, stimulate demand, encourage product trial, identify prospects, stimulate word of mouth, retain loyal customers, facilitate reseller support, combat competitive promotional efforts, reduce sales fluctuations, and generate positive social media posts. Stimulate demand: Primary demand: demand for a product category rather than for a specific brand Selective demand: demand for a specific brand New inventory promotion: promotion that informs consumers about a new product.

Public relations

Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. • A component of public relations is publicity—nonpersonal communication in news-story form about an organization, its products, or both. • Public relations should be viewed as an ongoing program rather than a set of tools to be used only during crises. Examples: Annual reports, brochures, event sponsorships, sponsorship of socially responsible programs, and publicity (news releases, press of conferences, feature articles.

Push vs Pull promotional strategies

Push policy - Promoting a product only to the next institution down the marketing channel. Normally stresses personal selling. Going from Producer, wholesalers, retailers, and then finally to consumers is the flow of communications. Pull policy - Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel. Done primarily through advertising and sales promotion. Going from producer to directly to consumers in the flow of communications. Word-of-mouth communication: personal informal exchanges of communication that customers share with one another about products, brands, and companies. Buzz marketing: an attempt to incite publicity and public excitement surrounding a product through a creative event. Viral marketing: A strategy to get consumers to share a marketer's message, often through email or online videos, in a way that spreads dramatically and quickly.

Sale promotions

Sales promotion is an activity or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or customers. Examples: Free samples, games, rebates, sweepstakes, contests, premiums, and coupons.

Special-event pricing Comparison discouting

Special-event pricing: Advertised sales or price cutting linked to a holiday, a season, or an event. Comparison Discounting: Setting a price at a specific level and comparing it with a higher price.

Sales Compensation

Straight salary-paying salespeople a specific amount per time period, regardless of selling effort. · Advantages: Gives salespeople security; gives sale managers control over salespeople; easy to administer; yields more predictable selling expenses. · Disadvantages: Provides no incentive; necessitates closer supervision of sales people; during sales declines, selling expenses remain constant. Straight commission-paying salespeople according to the amount of their sales in a given time period. · Advantages: Provides maximum amount of incentive; by increasing commission rate, sales managers can encourage salespeople to sell a certain amount item; selling expenses relate directly to sales resources. · Disadvantages: Salespeople have a little financial security; sales managers have minimum control over sales force; may cause salespeople to give inadequate service to smaller accounts; selling expenses less predictable. Combination- paying salespeople according to the amount of their sales in a given time period. · Advantages: Provides a certain level of financial security; provides some incentive; can move sales force efforts in a profitable direction. · Disadvantages: Selling expenses less predictable; may be difficult to administer.

Advertising Target audiene

Target audience - The group of people at whom advertisements are aimed at. Creating the Advertising Platform - Basic issues or selling points to be included in an advertising campaign. Sales-Based Objectives • Increase absolute dollar sales or unit sales • Increase sales by a certain percentage • Increase the firm's market share Communication Objectives • Increase product or brand awareness • Make consumers' attitudes more favorable • Heighten consumers' knowledge of product features • Create awareness of positive, healthy consumer behavior Advertising Appropriation - The advertising budget for a specific time

Team Selling

Team selling - The use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process. • May be created to address a particular short-term situation or may be a formal, ongoing team • Is advantageous in situations calling for detailed knowledge of new, complex, and dynamic technologies • Can be difficult for highly competitive salespersons to adapt to a team selling environment Relationship selling - The building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time Is especially used in business-to-business marketing. • Finding solutions to customers' needs by listening to them • Gaining a detailed understanding of their organizations • Understanding and caring about their needs and challenges • Providing support after the sale

Advertising Campaign

The creation and execution of a series of advertisements to communicate with a particular targeted audience 1.Identify and analyze target audience 2.Define advertising objectives 3.Create advertising platform 4.Determine advertising appropriation 5.Develop media plan 6.Create advertising message 7.Execute campaign 8.Evaluate advertising effectiveness

Price

The value paid for a product in a marketing exchange. Money - Actual currency form used to pay for an item. Barter - The trading of something for an item. Price Competition - Emphasizing price as an issue and matching or beating competitors' prices • To compete effectively on a price basis, a firm should be the low-cost seller of the product. • A seller competing on price may change prices frequently, or at least be willing and able to do so. • A major drawback of price competition is that competitors have the flexibility to adjust prices. Nonprice Competition - Emphasizing factors other than price to distinguish a product from competing brands.

Types of Demand Oriented Pricing

Value-in-use, auctions, reference, leader & bait, freemium, psychological, odd-Even, subscription, price lining, demand-backward, and prestige.

Factors that affect pricing decisions

• Customers compare prices with internal or external reference prices. - Internal reference price - A price developed in the buyer's mind through experience with the product - External reference price - A comparison price provided by others - To arrive at an internal reference price, consumers may consider one or more values: What they think the product "ought" to cost, the price usually charged for it, the last price they paid, The highest and lowest amounts they would be willing to pay, The price of the brand they usually buy, The average price of similar products, The expected future price, and The typical discounted price

Traditional vs Digital

• Traditional advertising - Original forms of advertising that are not connected specifically to the internet • Billboard-out of home-signs/posters • Print Ads-newspapers, magazines • Television (broadcast) • Radio station (broadcast) • Phone Book •Telemarketing • Digital advertising - The use of all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers. Traditional is before the internet. • Websites • Apps • Social Media • Streaming Devices *Digital advertising: Has been only increasing in spending, now at 278.53 billion dollars *Social media advertising mobility has increased by 357.92 billion dollars What are the Advantages / Disadvantages to using these types of media? Why are yellow page advertisements different sizes? -You had options to buy bigger ad spots or because you had a characteristic that made you listed towards the top.