MKT 300 Eaton Exam 4 ASU
Increase spending if
the increased
Budget Approaches
- Affordable method - Arbitrary allocation method - Percentage of Sales Method - Competitive parity method - Return on Investment method
What affects Price?
- Competition - Distribution strategy - Promotion strategy - The relationship of price to quality - Substitutes - Compliments
Media Scheduling
- Continuous Media schedule - Flighted MS - on/off randomly - Pulsing MS - fluctuate, but always run a few ads - Seasonal MS
Alternate Advertising
- Even creation - Product placement - Guerilla Marketing - unconventional - Stealth Marketing - undercover baiting - Viral marketing
Ethical Ad Issues
- False Testimonials - Bait and Switch - Misleading Demo (Campbell's) - Puffery/Outrageous lie (Tropicana)
Major Media Types
- Institutional (image) - Product (product)
IMC
- Integrated Marketing Communication - carefully crated marketing (snickers)
Factors influencing complaining
- Level of dissatisfaction - Personality/attitude - Amount of benefit to be gained - Attributions - "Customer is King"
New product pricing
- Market-Skimmering (high initial price) - Market-Penetration (low initial pricing) - Status-Quo
Compliment
- Needed with the thing
Advertising and Market Shares
- New brands with a small mkt share spend more on ads - At a certain level of spending, returns diminish - ... higher...
Product Advertising types
- Pioneering - Competitive - Comparative
Market Response
- Redemption rate - displacement rate - Acquisition rate - Conversion rate - product line effects
Primacy effect
- Remember things better at the beginning
Recency Effect
- Remember things better when most recent (end)
Common Executional Stylesf
- Scientific - Slice of life - spokes-person/testimonial - fantasy - humorous -real or animated - mood or image - demonstration - musical
External Factor of Pricing
- The Marketing Objectives - The Marketing Mix Strategy - The Cost
Internal Factor of pricing
- The Marketing Objectives - The Marketing Mix Strategy - The Cost
What is price?
- The value that you exchange for getting the goods/service - Could be money or something else
Product Advertising
- Touts the benefits of a specific good or service
AIDA Concept
- attention (cognitive/thinking) - interest (affective /feeling) - desire (conative /doing) - action
Price bundling
- combine related goods into package deal - phone, internet, cable
marketing is all about _____ with your customer
- connecting
Substitutes
- could replace the thing
Marketing is solving customer problems by
- creating, communicating, and delivering value.
4 Cs
- customer value - cost - convenience - communication
- flexible (variable) pricing
- different segments pay different prices - kids eat free, off peak, senior citizen or students
Price adjustments
- discounts - flexible (variable) pricing
Media types
- efficiency - clutter - impact - engagement
Persuasive promotion
- encourage brand switching - change customers perceptions of product attributed - influence immediate buying decision - persuade customers to call
Institutional Advertising
- enhances company image, not product
Objective and Task Method
- establish objectives - determine specific tasks - estimate costs associated with tasks
If there is a time wiht zero ads it is If ther is a time with few ads it is probably
- flighted - pulsing
Prospecting
- generating leads - qualifying leads - recognized need - buying power - receptivity and accessibility
Lifetime Value of a Customer
- identify most likely to purchase again - rank "best" customers - Identify most profitable customer
S-Shaped Response Function
- little spending, not much change - over spending not much marginal increase - middle spending = just right
Status Quo
- maintain price - meet competitor price
Sales oriented
- market shares - sales maximum
Marketing Objectives
- maximize profits - gain market share - infer a level of quality - survive
Conversion rate
- number of future purchases by new customers (number who stay)
Pyschological
- odd/even pricing - 99 principle - Reference pricing (what you expect)
Personal Selling Advantages
- personal message - controllable - more effective -high cust. satisfaction - detailed demonstration
Profit -Oriented
- profit maximization - satisfactory products - return of investment
Personal Selling best when
- push strat - complex product - expensive - negotiate - custom product - infrequent purchase
Captive product prcing
- razor + blades mentality - get you to buy the main thing, and you will buy the auxillary shit
Advertising
- reason to buy
Reminder promotion
- remind customers that product may be needed - remind customers where to buy product - maintain customer awareness
External Factors of Price
1. Demand for product 2. Competition - competitor prices - strength of competition 3. Economy - cost of components - Economic conditions
Unique Selling Proposition
desirable, exclusive, believable theme (sometimes a slogan)
Marketing =
segmentation, targeting, and positioning
Elastic demand
- change price a little, people run to or away
Inelastic Demand
- change price, people still need it
experimental Marketing
- connect with the customer - provide the total product experience
Sales promotion
- incentive to buy - impacts behavior, not attitude
Informative promotion
- increase awareness - explain how product works -
Audience selectivity
The ability of advertising to reach a defined market
Reach
The number of exposed targets
Pioneering
- Used in PLC intro stage, stimulate primary demand for prod category
Markeitng Mix Strategy
price consistent with product, price, people
Household using TV
(HUT) Percentage of homes in an areas watching TV at a given time
Competitive
- "I'm a great product, buy me"
Acquisition rate
- % of purchases by those who wouldn't buy anyway (most important part of any sales promo)
Displacement rate
- % of those who would buy anyway
Redemption rate
- % responding to incentive
Average business loses what percent of customers each year?
- 10%
Most business dont hear form what percent of its unhappy customers?
- 96%
Comparative
- Actually calling out and comparing to someone
Attribution Theory
- Affects cust sat/dissat in terms of: - Stability? - frequency - Focus - internal or external - Control-ability - preventable?
Marketing is developing your brand with 55 minutes of _______ and 5 minutes of tactics
- strategy
Product line effects
- the impact the promotions have on related products
Sales promotions
- try to change behavior
Customer Relationship Mgmt
- used to establis, develop, help, maintain customer sales
Product mix pricing strategies
-Portfolio Pricing (Pay more for Extras) -Captive-Products Pricing (Razor and Blades) -Price Bundling (package deals)
... coefficient
... 1
Methods of COst-based pricing
1. Markup pricing - keystoning (double the cost) 2. Break even pricing
Marketing communication process
1. source 2. encoding 3. the message (comm channels) 4. decoding 5. receiver
Marketing orientation
Acquire market info -> assess Info -> Respond (adjust 4 Ps)
You stay _____ SunDevils
Classy
Personal Selling Process
Company rep sells to you - prospect - research - approach - sales pres - overcome objections - close the sale - follow up
________ are more likely to do business again than non complainers
Complainers
CPM
Cost per thousand ((Cost of ad space)/impressions)*100 $400 to reach 2000 people = 400/2000
Share
HH tuned to show/HH using TV
Rating
HH tuned to show/total TV HH
Impact
How credible is the medium?
Benefit
How it will help
Clutter
How many other ads will people see at the same time?
Engagement
How much do people connect
Efficency
How much does each impression cost?
medium amount of money spent on
Media adverts and consumer promos
Frequency
Number of times some one will hear soemthing
share of audience
Percentage of HUT tuned to a show
Program Rating
Percentage of TV HH tuned to a show - rating point - 1%
Attribute
What you bring to the table
Source control vs Credibility
high control / low credibility - advertising - sales promo - personal selling - public relations - word of mouth Low control / high credibility
Demographics suck because
physchographics reveal more
Tradition selling vs Relationship selling
trad = lots of people and lots of nos rel = a few very important people, very personal
Most money spent on
trade promotions