MKT POST MIDTERM
Lead qualification involves determining the sales prospect's
(1) recognized need, (2) buying power, and (3) receptivity and accessibility. Companies must be diligent in ensuring that the lead offers potential
how are prices affecting the business market?
- more price sensitive -more adapted marketing information systems -now can compare price and accuracy -computer aided -competition in general is increasing
explain "Customers do not buy attributes, they buy benefits" "Sell the sizzle, not the steak."
-attribute is simply a feature of the product. -the benefit is what the consumer will receive or achieve by using the product sizzle -> how well its prepared, how it will taste steak -> just the tangible item. like uncooked it would jus be an inedible item
Just-in-time manufacturing (JIT)
-borrowed from jap -reqs manus to work closely with suppliers and transportation providers to get the items to the assembly line -means to supply the cx immedediately after completion -JIT means lowercosts, shorter lead times, and products that meet the needs of cx more closely
benefits of advertising compared to the other points in the promo mix
-can communicate to a lrg num of ppl at one time -cost per contact low -able to reach the masses -but can also microtarget smller groups -cost ber contact is low BUT cost to advertise is very high
pull strategy
-consumer demand to obtain product distribution. -manufacturer promotes to END CONSUMER instead of WHOLESALER -so that the cx demands from the retail, then retail demand from wholesaler, and then whole demand from manu
six categories of social media users:
-creators -critics -collectors -joiners -spectators -inactives As marketers come to understand how consumers engage with social media to the same extent that they understand consumer engagement with traditional media, they will be able to create integrative marketing communication campaigns
Comparative advertising
-either directly or indirectly compare 2+ competiting brands on 1+ specific attributes -used most when products are experiencing sluggish growth -when there are strong competitiors
price skimming
-high intro price alongside with heavy promotion -make the most $$ while it is new and cx perceieves the product unique with special benefits -then lower as time passes -ex: flat screen tvs -only/best used when the product is protected legally, is a tech breakthrough, or is blocked from competitiors -as long as demand is greater than supply this strat is doable
describe the demand thru a product life cycle
-intro stage: demand will orginate in the core market--cx who needs this product and so sometimes $ is inelastic -growth stage: $ start to stablize as competitiors enter the market and increase supply. also product now appeals to broader market--economies of scale -maturity stage: more $ decrease w comp while high cost businesses are eliminated distributions -if they do face $ increases, it ususally due to just costs and not demand instead -product price reductions also dont stipulate much change in demand anymore since more producers in the market by now -decline stage: further $ decrease, all producers in this market trying to salvage the little demand that is left -when the others retire and one/few are left in the market, the prices will stablize again and might even eventually rise dramatically if the goods become a "specialty good" like vinyl records
geographic pricing
-many ship worldwide and the cost of freight can greatly affect the total cost of a product -can use tactics to moderate impact of costs on distant cx -FOB shipping -Uniform delivered pricing; when they want costs to be equal for all purchases of identical products. seller pays the freight but bills every purchasers a same flat freight charge -zone pricing, divides into segement areas and charges depending on the region -freight absorption pricing seller pays for all/majority of freight -basing point pricing, desinating a location and charges all buyers the freight cost from that point
Sales-Oriented Pricing Objectives
-market share % of total sales for that industry many believe larger share = higher profits = greater economies of scale = more power to attract top quality employees but b/c of extreme competition, many dont actually reach target ROI or even lose money -sales maximization ignore profits, competition, and environment as long as sales are rising this is effective in cases where when the firm needs to generate a lot of cash in the short run (uncertain future) or to sell off excess inv should never be a long run, as it might means little/no profits
Status Quo Pricing Objectives
-passive policy in a way, just adopting to the existing prices that already exists in the market dictated by the competition -fewer price wars -managers often have to check regularly if $$ is comparable
Profit-Oriented Pricing Objectives
-profit maximization setting prices so ttl rev is as high as possible compared to costs does not mean unreasonable $ depend on competition -satisfactory profits reasonable > max often connected to CSR -target return on investment most common out of 3 [ROI] this measures the overall effectiveness in generating profits with INVESTORS assets use ROI as a pricing goal--usually 10~30%
the types of pricing objectives
-profit orientation -sales orientation -status quo
benefits of supply chain managment
-report lower costs of inv, transportation, warehousing, and packaging -imporved cx service -higher revs
advertising campaign
-series of related ads w a common theme, slogan, and set of ad appeals
Creating an effective social media plan has six stages:
-set SM objectives -listening stage -identify target audience -develop strats, citing results from the listening phase -select the tools and platforms -implement and montior
what is logistic managing in the supply chain
-the process of the strat managing in the efficient flow and storage of raw materials, in process inv - components: 1] sourcing and procurement of raw materials 2] production scheduling 3] order processing 4] inv control
competitive advertising
-to influence demand -less informative, appealing to emotions instead -stress subtle differences -emphasis on brand call
8 stages of effective listening
1 being without an objective 2 tracking brand mentions 3 identify market risks and opportunities 4 improve campaign efficiency 5 measure cx satisfaction 6 responding to cx inquires 7 understand cx better 8 be proactive, anticipate demands
what are the 3 key actions in facilitating a distribution process?
1 provding specialization and division of labour 2 overcoming discrepancies 3 providing contract efficiency
6 elements necessary for price discrimination to occur
1] 2 or 3 instances of discrim must have occurred over tiem 2] occured in a short time 3] must have been commodities or tangible goods 4] must have charged different $ to 2 or more buyers for the same prod 5] products must have been the same qual and grade 6] the buyers of the goods must be competitors
the four step pricing process
1] establish pricing objectives 2] estimate demand, costs, and profits 3] find a base price though a price strat 4] with price tactics fine tune that base price with a final $
You are an advertising manager for a company that sells health and fitness equipment to upscale professionals between the ages of 25 and 45. Your firm advertises during drive time on easy-listening radio stations and on television on the A&E and the Discovery channels. On what basis are you most likely to segment this market? a. stage of family life cycle b. region c. usage d. lifestyle
ANS: D Lifestyle segmentation in this instance is the right choice because the spending of leisure time is key when the advertising is employed
The AIDA model, if taken too literally, has its limitations.
Action as the end goal suggests a purchase (or a donation, in the case of a charity), but a single purchase or donation is not the end goal. Marketers are concerned about loyalty—continual purchase behaviour.
________ are the most productive promotion tools to use for routine decisions.
Advertising, social media, and sales promotion >>The promotional mix also depends on the type of buying
crowdsourcing
Crowdsourcing describes how the input of many people can be leveraged to make decisions that used to be based on the input of only a few people. Asking consumers to provide feedback on marketing campaigns and products and responding to the feedback increases the chances of success and also creates brand advocates. Crowdsourcing is the foundation of co-branding.
DAGMAR
Defining Advertising Goals for Measured Advertising Results -define the target audience -the desired percentage change in a specificed measure of effectiveness -and the time frame for the change
The Tools of Direct-Response Communication
Direct-response broadcast uses television and radio infomercials call-to-action tool (the phone number) to enhance the success of radio as a direct-response medium. Direct-response print includes newspapers, magazines, and inserts. decline in subscribers to these types of publications is affecting this tool Telemarketing Direct Mail Direct Response Using the Internet
Earned media
Earned media is a public relations term connoting free media, such as mainstream media coverage. In an interactive space, media are earned through word of mouth or online buzz about something the brand is doing. Earned media include viral videos, retweets, comments on blogs, and other forms of customer feedback resulting from a social media presence. When consumers pass along brand information in the form of retweets, blog comments, or ratings and recommendations, this is an example of earned media.
With the personal and targeted nature of customer relationship management, consumers spend more time making purchase decisions. a. True b. False
False
Feedback
Feedback may be verbal, as in saying, "Yes, I will buy," or nonverbal, as in nodding, smiling, frowning, or gesturing. Feedback can also occur digitally Because mass communicators are often cut off from direct feedback, they must rely on market research, social media, or an analysis of viewer responses for indirect feedback.
To leverage all three types of media, marketers must follow a few key guidelines.
First, they must maximize inbound media by reaching out beyond their existing websites to create portfolios of digital touchpoints. Second, marketers must recognize that aptitude at public and media relations no longer translates into earned media. Instead, marketers must learn how to listen and respond to stakeholders. This will stimulate word of mouth. Finally, marketers must understand that paid media are not dead but should serve as a catalyst to drive customer engagement.
which generation is the most proflicit users S/M
Gen Z users are the most prolific users of social media, clocking in an average of 48 minutes per day, most of it through a smartphone rather than any other device.
seven basic steps make up the personal selling process:
Generating leads Qualifying leads Approaching the customer and probing needs Developing and proposing solutions Handling objections Closing the sale Following up
Inbound media
Inbound media are online content that an organization creates and controls. This includes a brand's websites, blogs, and all social media channels. The purpose of inbound media is to develop deeper relationships with customers
consumer-generated content.
Internet has changed the landscape tremendously. Both the marketer and the consumer, sharing the communication space. Consumers can pass judgment on a brand or the brand's message in a public forum, through online posts and they can alter the communication message immediately or create their own.
key to successful SM marketing
Listening to customers and industry trends and continually revising the social media plan to meet the needs of the changing social media market
push strategy
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell their merchandise The wholesaler, in turn, must often push the merchandise forward by persuading the retailer to handle the goods. The retailer then uses advertising, displays, and other forms of promotion to convince the consumer to buy the pushed products
A highly effective tool for gaining new clients or referrals is
Networking is using friends, business contacts, co-workers, acquaintances, and fellow members in professional and civic organizations to identify potential clients.
what are 4 things that are putting pressure on price setting tasks?
Potential buyers carefully evaluate the price of each product against the value of existing products. Increased availability of bargain-priced private and generic brands puts downward pressure on overall prices. Firms try to maintain or regain their market share by cutting prices. Internet and mobile access makes comparison shopping seamless and in many cases results in downward pressure on price.
how does S/M effect co-marketing
Social media as communication tools provide marketers with the opportunity not only to respond immediately but also to listen. Marketers who listen can tap into co-marketing—capitalizing on consumer input to create message content. Co-marketing relies on a continual dialogue with the consumer, who is empowered to vocalize likes and dislikes.
DCS designed an excellent line of specialty barbecues, had good distribution, used effective promotion with its market, and within four years had a respectable market share. Yet financial losses every year have caused DCS to drop this line. What might this market segment, relative to the resources devoted to it, have lacked? a. substantiality b. accessibility c. reliability d. identifiability and measurability
Substantiality means the selected segment is large enough to warrant developing and maintaining a special marketing mix. Serving the specific needs of this segment must be commercially viable. Based on four years of losses, this one apparently was not.
Traditional selling and relationship selling
Traditional selling efforts are transaction oriented, focusing on generating as many leads as possible, making as many presentations as possible, and closing as many sales as possible. In contrast, the salesperson practising relationship selling emphasizes an upfront investment in the time and effort needed to uncover each customer's specific needs and wants and meet them with the product or service offering.
what are the 4 marketing channe;s for consumer products?
[direct] ex: producer -> cx [retailer] [wholesaler] [agent/broker] ex: producer -> ag/brokr -> whole -> retail -> ex listed from the least amount of transactions to the most
conflicts in distr channels
[horizontal] -conflict on the same level like among 2 warehousers who handle the same brands -this type is found most often when manufacturers practice dual or multiple distributiors -also occurs when channel members feel that other members of the same lvl are treated differently [vertical] -many refer to horizontal as healthy competition but its more serious when it is vertical -usually between producer vs. whole/retail
types of distribution intensities and why
[intensive distribution] -aimed at maximum coverage, ensure product in every outlet that a potential cx might buy at -used often for convenience goods-where it needs to be very accessible [selective distrib] -desire to maintain a superior product image by creating demand and make the cx seek out the product themself -charge a premium $$ [exclusive dist] -most restrictive -confined to consumer specialty goods and industrial equipment
what . are factors that affect the channel choice
[market factors] -who are the cx -when do they buy -how? -like those buy in bulk require more service -geographics? ->concentrated on one area = direct selling [product factors] -the more standarized the product is, the . LONGER the channcel can be and the GREATER number of intermedaries can be invovled -like gum -products life cycle: perish. like milk needs to have a fairly short marketing chnnl [producer factors] -smaller or weaker firms must rely on services of intermediaries -whereas companies with large . resources have the abilitiy to hire and train their own sales force to warehouse their own goods and extend credit . to their cx
types of the major medias used for ads +pros and cons
[newspaper] p: creditable, year round, geographic selective c: little demographic selectivity, low pass along rate [maga] p: good reproduction, demo, region, and local market selectivity is good, high pass along rate c: slow audience build up, limited demonstration, less urgency [radio] p: low $, immediacy, short notice schedule c: no visual, distraction from backgrounds, often cluttered [tv] [outdoor media] p: high creativity, geographic, flexibility c: short msg [direct response] p: one2one contact, personalized, contain multiple msg and offers c: low response rats, high $, poor image [digital and mobile] p: fastest growing, able to reach narrow targets, engaging c: not all consumers use social media, relies on 'click ads'
what are the main characteristics that determine what type of intermediary that should be used by producers?
[product characteristics] -is prod standard or custom? -if a prod is custom and complex like insurace, the intermediary that producers would want to use would be like an agent or broker that is specialized and represent multiple countries -vs. a candy bar, this is a 'standardized product' and would be sold to a wholesalers that would then be reshipped to retailers [buyer considerations] -these effect the wholesaler's choice -like how often the prod is purchased from retailers -a student would might be willing to wait a few days to buy a cheaper $ textbook. -like if there is high demand like txtbook is required day1 for assignments, student would not mind paying for it asap or even more! [market characteristics] -number of buyers in the market -general location? dispersed? -candy bars for example are prod in one location then spread out when retailing
what are some marketing channel functions performed by intermediaries?
[transactional] -contacting cx, promo -nego -risk taking by buying and owning inv [logistical] -physical distribution/storage -sorting -storage [facilitating] -research -finance, extending credits to cx
Sales promotion is
a communications tool that provides a short-term incentive to the consumer or members of the distribution channel as a motivation to try or purchase a good or service immediately. Sales promotion is used because it can have more effect on behaviour than on attitudes.
phehnomenon of advertising response function
a phenomenon in which spending for ad and sales promo increases sales or market share up to a certain lvl but then produces diminishing returns
A firm's marketing mix is intended to bring about a mutually satisfying exchange relationship with a market. a. True b. False
a. True
One of the trends that will lead to the continued growth of one-to-one marketing is the perception by consumers that they have more things to do and less time in which to do them. a. True b. False
a. True
The distinctions between products created through product differentiation can be either real or perceived. a. True b. False
a. True
What do we call a group of people or organizations that has wants and needs that can be satisfied by particular product categories, and has the ability to purchase these products? a. a market b. a target c. a base d. a firm
a. a market
Scenario 8-2 ProtecTV is a product that selectively mutes words and phrases some people find objectionable. It can be connected to a television, DVD player, or satellite TV system. The manufacturer of ProtecTV targeted parents who did not want their children exposed to what they consider to be offensive language. Refer to the scenario. By helping parents who want to protect the innocence of their children, which type of segmentation is ProtecTV using? a. demographic b. benefit c. competitive d. geodemographic
a. demographic
Every six months or so, some manufacturer introduces a new shape or colour for the boxes that house the hardware to run PCs. These manufacturers ignore the fact most people like their technology in plain wrappers. These bright colours and odd shapes have failed because the market segment to which they are targeted lacks which of the following? a. responsiveness b. reliability c. substantiality d. identifiability and measurability
a. responsiveness
What is the basic goal of one-to-one marketing? a. to reduce costs through customer retention and increase revenue through customer loyalty b. to increase visibility and locate new customers c. to increase the market for the product category to new and current customers d. to reduce the number of company employees and increase overall sales
a. to reduce costs through customer retention and increase revenue through customer loyalty
how to impact cx depending on the message u want to send?
ads CANNOT change deeply rooted values and attitdues but they might can negative -> positive attitudes to change negative, serious or dramatic ads humorous ads increase involvement even when u have a neutrual outlook, ads often postively influence them
If the buying decision is neither routine nor complex what promo mix to focus on?
advertising, social media, in particular branded content, and public relations help establish awareness for the good or service. An advertisement, a blog post by a hiker, a review on a website will help to establish the brand preference in the purchase decision.
unique selling proposition
after looking at criterias, after assessing the advetising appeals and choosing one, the appeal chose is the unique selling proposition--become all or part of the ad slogan
odd even pricing
aka psychological pricing 0.99 99.95
how is personal advs differentnet from advs, public relations, and sales promotions
are generally impersonal, one-way means of mass communication controlled by the marketer. Because these elements of the promotional mix provide no opportunity for direct feedback, altering the promotional message and adapting to changing consumer preferences, individual differences, and personal goals is difficult to do quickly. Personal selling, on the other hand, is personal, two-way communication offering the opportunity to adjust the message as required. Personal selling, however, is very slow in dispersing the marketer's message to large audiences.
AIDA concept
attention, interest, desire, and action—the stages of consumer involvement with a promotional message. but a repeat purchase or a low-risk purchase may not require the consumer to pass through all four stages.
Which of the following sayings best describes why marketers find geodemographic segmentation so effective? a. Every action has an opposite and equal reaction. b. Birds of a feather flock together. c. Don't put all of your eggs in one basket. d. A bird in the hand is worth two in the bush.
b. Birds of a feather flock together.
For a successful market segmentation, one marketing mix cannot be used for another market segment. a. True b. False
b. False
Ol' Roy (the Walmart store brand) dry dog food is sold at minimal cost with no promotion. KAL KAN Foods markets Pedigree dry dog food and spends time and money to develop ads to show the relationships between dogs and their owners. Since the two companies' products provide the same level of nutrients to dogs, these products are undifferentiated. a. True b. False
b. False
Single-variable segmentation is clearly more precise than multiple-variable segmentation a. True b. False
b. False
When making a purchase, satisficers consider numerous suppliers, solicit bids, and study all proposals carefully before selecting one. a. True b. False
b. False
What is one advantage of using a concentrated targeting strategy? a. It can reach customers in two or more segments that might otherwise be missed. b. It enables the use of a highly specialized marketing mix. c. It means that organizations can view the total market as receptive to its product. d. It avoids the danger of putting all resources in one micromarket.
b. It enables the use of a highly specialized marketing mix. Concentrated targeting focuses on one target market and develops a highly specialized mix.
What could Jell-O use to determine if consumers perceive a void in snacks that are easy to handle and wholesome, and if customers think Jell-O Pudding Pops would fill that void? a. product positioning b. a perceptual map c. a trend analysis d. predictive modelling
b. a perceptual map The attributes of "easy to handle" and "wholesome" would be perceived as significant attributes.
Why do consumer goods companies take a regional approach to marketing? a. because companies have the opportunity to take more time to react to competition b. because companies are introducing brands appealing to local preferences c. because baby boomers and seniors can be easily attracted using this approach d. because consumer markets lack intense competition
b. because companies are introducing brands appealing to local preferences
Wesley Electronics Inc. is a company that manufactures electronic gadgets. The marketing managers of the company spend a great deal of money on advertising in order to create awareness of the company's products among potential customers. They employ various methods of advertising, such as print, broadcast, and online advertising. According to the steps of market segmentation, what is Wesley Electronics Inc. most likely doing? a. selecting a market or product category for study b. designing and implementing marketing mixes c. selecting segmentation descriptors for a market d. profiling and analyzing market segments
b. designing and implementing marketing mixes
What is the term for the development of a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general, and is related to the place a product occupies in consumers' minds relative to competing offerings? a. combination marketing b. positioning c. market differentiation d. diversification
b. positioning
June LaVista owns a health and fitness gym. After dividing her customers into four segments based on income range, age, level of fitness, and other selected segmentation descriptors, she wrote out a description of each segment's size, expected growth, frequency of exercise, and overall profit potential. What did LaVista engage in? a. targeting promotions to her market segments b. profiling and analyzing her market segments c. positioning her products to her market segments d. differentiating her market segments
b. profiling and analyzing her market segments
Ten Thousand Villages is a nonprofit retail store that sells gift items made by artisans from over 30 different countries. This store provides employment to craftspeople in developing nations and markets their handiwork at a fair price. The store defines its market segment as people who believe in helping others and who feel good about helping others whenever possible. Which type of segmentation does the store use? a. ethnic segmentation b. psychographic segmentation c. demographic segmentation d. geodemographic segmentation
b. psychographic segmentation
What is the next step after selecting a market for study and choosing bases for segmenting that market? a. designing a marketing mix b. selecting segmentation descriptors c. implementing and maintaining a marketing mix d. profiling and analyzing segments
b. selecting segmentation descriptors The steps in segmenting a market are (1) select a market or product category for study; (2) choose a basis or bases for segmenting the market; (3) select segmentation descriptors; (4) profile and analyze segments; (5) select target markets; and (6) design, implement, and maintain appropriate marketing mixes.
media fragmentation
b/c media channels are increasing with new times, it forces companies to pay as much attention to where they place their advertising as to how often the ad is repeated
how does JIT have a significant impact on reducing inv levels?
b/c supplies are delivered exactly when they are needed on the factory floor, little inv is needed and they can order the materials in sml quantites -means more savings since $$ is less with reduced needs for storage facilities
why has advocacy ads have seen increased invovlement over the years
b/c the benefits of publicly supporting social issues and causes that their target consumer is committed to have proven valuable
bait pricing vs deceptive pricing
bait: tries to get a cx into the store with fake bargain prices they advertized and then use high pressured selling to get them to buy the more expensive merch instead deceptive: promoting a price/saving that is not actually avail. they promote on an item that has very little stock--or none at all. They make it look like they have a lot in stock. Then cx is forced to buy another alternative instead. another form can be where a prod can have double ticketing , selling prod at a price ABOVE THE ADVERTIZED $
types of discounts and allowances
base price lowered. these forms are used to encourage customers to do what they would ordinarily not do common tactics: -quantity disc: cumulative or non -cash discount 2/10, promt payment, avoid bad debt -functional discounts for distribution channels like whole/retailers. discounting a % -seasonal discounts, helps to maintain steady production
why is a marketing channel seen as an independent orgnaization?
because it is in charge of moving products to their final consumption destination transfer of ownership producter -> business owner/consumer
how can testing ad effectiveness be done before and after the actual campaign
before: managers use pre-tests to determine best appeal, layout, and media after: use several montioring techniques to see if it has met goals see what could have been done, which factors contributed to its success
what is BEP
break even point formula: Fixedcosts/(variable price per unit - variable cost per unit) deno represents the margin earn on each sale the result number is the UNITS SOLD that a firm must meet in order to cover its costs
markup
businesses always need to strive to make a profit so that results in a form of markup price
Companies that adopt a concentrated marketing strategy violate which of the following old sayings? a. The grass is always greener on the other side of the fence. b. Don't count your chickens before they hatch. c. Don't put all of your eggs in one basket. d. You can't bake a pie without breaking some eggs.
c. Don't put all of your eggs in one basket.
David is a vacuum salesman and is looking for a cell phone that will help him to keep in touch with family via texting, to keep in touch with his office while he is on the road, and a phone that will let him connect to the Web. What type of segmentation should be used here? a. value-added segmentation b. macrosegmentation c. benefit segmentation d. mass segmentation
c. benefit segmentation
Budweiser beer was one of the official sponsors of the 2010 World Cup soccer championship held in South Africa. As such, Budweiser beer was the only beer available in the soccer stadium where the games were played. South Africans were outraged because they equate drinking Bud to drinking water. In this case, which type of segmentation should have been primarily used? a. social b. usage-rate c. geographic d. economic
c. geographic Geographic segmentation includes segmenting markets by region of the country or world
The computer market can be divided in to laptops, personal computers, mainframes, and tablets. This market can also be broken down via the types of users who will use the above types of devices. What is this process of dividing markets called? a. micromarketing b. perceptual mapping c. market segmentation d. positioning
c. market segmentation
A mobile home manufacturer has decided to add food trailers to its product line. If all the current competitors in that market use a differentiated product market strategy, which strategy would make the most sense for the manufacturer to implement? a. undifferentiated product strategy b. concentrated targeting strategy c. product differentiation strategy d. multisegment targeting strategy
c. product differentiation strategy
NASCAR racing fans are some of the most diverse and loyal fans in the world. They will stand in the pouring rain, the freezing cold, or the blistering heat for hours to shake the hand and get the autograph of a NASCAR super driver. These fans are not concentrated in any one area, but are dispersed throughout the United States and Canada. Which type of segmentation would be most effective to determine a target market for a website designed to market NASCAR memorabilia? a. usage rate segmentation b. demographic segmentation c. psychographic segmentation d. geodemographic segmentation
c. psychographic segmentation
other than impacting customer attitudes, exposure, how else can ads effect a product?
can also affect the way consumers rank a brands attributes -cars used to emphasized on just speed and fuel efficiency but today ads outline more stuff like saftey, tech, customizations, etc and this set the standardsfor the general consumer
downsides to peneration pricing
can be disastorus for brand image esp with prestige brands might destry img by flooding the market w lower priced items
Transmission of a message requires a
channel—a voice, radio, newspaper, or other communication medium. A facial expression or gesture can also serve as a channel
step 4 of setting the right price for ur product
choosing a base price the general price lvl at which the company expects to sell the good or service '' after base, they can help fine tune it a bit along the way--does not change it significantly tho like only discounts, promos, etc like how apple is always gonna be expensive as f
last step in pricing
choosing a price strat first they did the frame work, then estimating $/demand, now they gotta assess the direction and price movements over the product life cycle
channel members vs supply chain
cm: all the parties that negotiate/buy/sell/ and facilitate the change of ownership sc: both internal and external to the company, the MEMBERS create this chain to preform the channe; functions
Before the advent of more sophisticated methods of lead generation, most sales prospecting was done through
cold calling—a form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status. Although this method is still used, many sales managers have realized the inefficiencies of having their top salespeople use their valuable selling time cold calling
consumer promotions vs trade promotions
consumers are for the customers--PUSH a product thru the distribution channel trade for manufacturers and intermediaries--PUSH a prod thru
media schedule is divided into 3 types:
continuous -to run steadily thruout the period -like boston pizza tv ad flighted -schedule ads heavily during specific times/dates -like movie ads more higher on wed and thrusdays nights to promote cx to want to go for the weekend pulsing -combined of both above.
media mix is based on what factors?
cost per contact -compare between media types reach -the number of cx who are exposed to a msg at least once during a time frame (usually 4 months) -generally reffered to as GRP [gross rating pts] to evaluate how much contact it does frequency -# of times of a cx see this audience selectivity -ex want females -> put ads on sephora flexibility of the medium noise level -the level of distraction the cx will get w that medium lifespan of the medium
mass customization va mass marketing
custom is growing in popularity--it is the production that is NOT SCHEDULED until and order specifics come in -tailors to the needs to maintain competitive edge -flexibility is critical to a manu success
Canon Cameras has developed a new camera for baby boomers with a fewer options and larger buttons. What would these baby boomers be to Canon? a. a heterogeneous segment b. a responsive segment c. an aggregated market d. a target market
d. a target market
People with diabetes who need to replenish electrolytes lost during activity or illness cannot drink Gatorade because it is high in sugar. As a result, a manufacturer has developed Champion Lyte, which contains no sugar. Which type of segmentation did the manufacturer of Champion Lyte use to identify its market? a. demographic segmentation b. geodemographic segmentation c. usage-rate segmentation d. benefit segmentation
d. benefit segmentation
E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians. At one time it used the same marketing mix for all of its customers, but it has discovered that it needs a different marketing mix to appeal to its ethnic customers. E&V studios are located in urban areas such as Toronto and Vancouver. Refer to the scenario. Which segmentation variable does the company rely on to identify its market? a. socio-cultural b. socioeconomic c. geographic d. demographic
d. demographic
What type of segmentation clusters potential customers into neighbourhood lifestyle categories and is a combination of geographic, demographic, and lifestyle segmentation? a. microsegmentation b. lifestyle segmentation c. socio-cultural segmentation d. geodemographic segmentation
d. geodemographic segmentation
Sure Fit Inc. has begun a rebranding strategy to let customers know it no longer produces only slipcovers, but also carries a line of rugs, window treatments, and bedding. What would it describe as women with average annual household income of $60,000 or more? a. its market differentiation b. its perceived market c. its market audience d. its target market
d. its target market
E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians. At one time it used the same marketing mix for all of its customers, but it has discovered that it needs a different marketing mix to appeal to its ethnic customers. E&V studios are located in urban areas such as Toronto and Vancouver. Refer to the scenario. What type of segmentation strategy does the wedding consultant use? a. concentrated targeting b. geographic marketing c. undifferentiated targeting d. multisegment marketing
d. multisegment marketing
E&V Bridal Studios is a wedding consulting business designed to appeal to East Asians. At one time it used the same marketing mix for all of its customers, but it has discovered that it needs a different marketing mix to appeal to its ethnic customers. E&V studios are located in urban areas such as Toronto and Vancouver. Refer to the scenario. E&V Bridal Studios markets its services to its customers by using ethnicity to divide its customers into segments. Which of the following would ethnicity be classified as? a. environmental control b. accessibility quotient c. perceived image d. segmentation base
d. segmentation base
Which of the following identifies correctly how often market segmentation should be done? a. is rarely done by consumer products companies b. should be done once a month c. needs to be done only once for each product d. should be redone periodically
d. should be redone periodically
Direct-response communication is hgihly dependant of
dependent on the medium used to reach the intended target.
what is flexible pricing
diff cx pay diff $ allows seller to adjust for competition dealing with price conscious customers like car dealers con would be price wars or consistent profit margins
predatory pricing
does againt the ethics of pricing company sets $ very low w the intention to drive its competition out of the market after extended time and they have left, they raise it back up
order processing is becoming more automated thru the use of
electronic data interchange EDI -idea of replacing paper documents -typical EDI msg would include the invoice, prod code, quantity, and transportation details
after establishing the pricing objectives--what to do next
estimate demand, costs, and profit -demand isnt structured, it fluctuates throughout a product's lifetime. -have to initally make assumptions about the price sensitivity and elasticity of demand
public relations in the promotion mix?
evaluates public attitudes, identify concerns, and executes grograms to gain public understanding and acceptance strive to maintain a positive img in the eyes of public
Characteristics of the product itself can influence the promotional mix
ex As business products are often custom-tailored to the buyer's exact specifications, they are typically not well suited to mass promotion. Therefore, producers of most business goods, such as computer systems or industrial machinery, rely more heavily on personal selling than on advertising The costs and risks associated with a product also influence the promotional mix. As a general rule, when the costs or risks of buying and using a product increase, persuasive personal selling becomes more important. The more expensive the item is, whether it be a consumer or business good, the more important it is that a salesperson be available to assure buyers that they are spending their money wisely and not taking an undue financial risk.
how has social media reshoped the natural instinct of promotioers
from one-way content production to two-way conversations and, ultimately, community-building
the marketing channel is all about
getting the right item to the right place and right time
advertising appeals and what are the criterias used for the evaluation on which appeal to focus on ?
identifies a reason for a person to buy a product typically plays off cx emotions or adress needs and wants ex: profit, health, love, etc --- desireability (positive), exclusiveness (unique so they can distiguish between competitiors), and believeability (not farfetched)
how can 'place' can be a source of competitive advantage?
if done right, a well operated channel of distribution is difficult and expensive to emulate where has price, product, promotion can be copied easier in comparison ex: amazon, known for its investments it makes and getting the products to cx in a timely matter this convience has helped them grow immensely
value based pricing
implemnted from quality movement instead of determining $ on the basis of competitors prices, it focused on customer -the price of the product is set at a lvl that seems to the cx to be a good $ compared to the other options
what does the term 'breaking bulk' mean?
in terms of intermedaries, this is reffering to how WHOLESALERS are usually the ones who buy so much inventory and they are the ones who need to organize and store them all term orginated from the olden times where cargo ships did them
different ways that interactive marketers can categorize media types, typically arriving at three distinct classifications:
inbound, earned, and paid media
Promotion can perform one or more of four tasks
inform the target audience, persuade the target audience, remind the target audience, or connect the target audience
To prevent this disjointed communication from happening, companies today have adopted the concept of
integrated marketing communications (IMC). IMC is the careful coordination of all promotional messages—traditional advertising, public relations, sales promotion, personal selling, direct-response communication, and social media—for a product or service to ensure the consistency of messages at every contact point where a company meets the consumer.
Communication can be divided into two major categories
interpersonal communication and mass communication. Interpersonal communication is direct, face-to-face communication between two or more people. can see the other's reaction and can respond almost immediately. Mass communication involves communicating a concept or message to large audiences. A great deal of marketing communication is directed to consumers as a whole, usually through a mass medium, such as television or magazines. generally does not personally know the people with whom it is trying to communicate
Decoding is the
interpretation of the language and symbols sent by the source through a channel. Effective communication requires a common understanding or common frame of reference between two communicators. Therefore, marketing managers must ensure a proper match between the message to be conveyed and the target market's attitudes and ideas.
Product Life Cycle and the Promotional Mix
introduction stage, -the basic goal of promotion is to inform the target audience that the product is available -heavy ad + public relation growth stage - sales promotion can be reduced because consumers need fewer incentives to purchase. The promotional strategy is to emphasize the product's differential advantage over the competition -Persuasive promotion is used to build and maintain brand loyalty maturity stage -competition becomes fiercer and thus persuasive; reminder advertising is more strongly emphasized. -Sales promotion comes back into focus as product sellers try to increase their market share. decline stage -All promotion, especially advertising, is reduced
advocacy advertising
is a form of institutional ads in which and organization expresses its views on an issue or cause
Publicity
is a mass communication tool that is not paid for by marketers but can be used to earn public understanding and acceptance. Publicity is often achieved by the execution of public relations strategies.
pros and cons with injecting humour into ads
is a popular and effective executional style -most often used in radio and tv because the other unspoke medias, its harder to communicate -used mainly for low risk, low involvement, routine purchases -need to make sure the brand itself is remembered! sometimes humor can take away from imporance
Sales promotion, in contrast to advertising
is easy to measure. Marketers know the precise number of samples handed out, the number of clicks through to a website, or the number of contest entries received
pioneering advertising
is intended to stimulate new product or product catagory -used in intro stage of prod life cycle -seek to create interest
what is loss leader pricing
is selling a prod near or even below cost in the hope that shoppers will BUY OTHER ITEMS ONCE THEY ARE IN THE STORE not limited to products, services could do this too like one mo free trial for gyms
The third need fulfilled by marketing channels is
is the contact efficiency provided by reducing the number of stores customers must shop in to complete their purchases. (Providing Contact Efficiency) -without a retail intermediary like best buy, each producer would have to make contact which each and every customer!! -so this reduces the required transactions!
Advertising
it is any form of impersonal ONE WAY MASS communication about a product or organization that is paid by the marketer
why do some cx prefer two-part pricing
like charging a membership fee then a flat fee afterwards depending what they use prefer cause some might be uncertain about the number and the types of activities they might use like EX, pay to get in, then pay for every ride u go on
resale price maintenance
manufacturer attempts to influence the retail price of its product on the sales floor illegal
price bundling
marketing 2+ prods in a single package for a special $ like microsoft bundle word, excel, etc
The Promotional Mix
may include advertising, publicity, sales promotion, personal selling, direct-response communication, and social media
promotional tactics can also be categorized according to
media types—paid, earned, or owned p -paid media have included television, magazine, outdoor, radio, or newspaper advertising. e -based on the traditional publicity model. The idea is to get people talking about the brand—whether through media coverage (as in traditional public relations) or through word of mouth o -often referred to as branded content. Owned media include a company's own website and its official presence on Facebook, Twitter, YouTube channels, blogs, and other platforms. These media are controlled by the brand but continually keep the consumer in mind.
Price can relate to anything with perceived value meaning
not just money. When goods and services are exchanged, the trade is called barter.
price lining
offering a product line with several items at specific price points offering dresses at 40 70 100 no inbetween $ helps reduce confusion, make fewer markdowns, carry smaller inv cons could be that if costs are rising, u cant leave these price points easily. may have to get cheaper quality items because of this, changes arent recieved well or causes confusion
what is single price tactic
offers all goods/services at the same price netflix, watch unlimited for single $ effective in ways it can remove COMPARISON from buyers decsiion making process how can u rly compare this unlimited feature? but a con is that in times of inflation they might have to frequently
penetration pricing
opposite of skimming, this charges a low price as a way to initally meet the mass market -one of the best ways to obtain a large market share -does not mean lower profit per unit but prod development cost recovery may be slow
In general, the cost per contact is very high for
personal selling, public relations, and sales promotions, such as samplings and demonstrations
channel power vs channel control
power: is a channel members capacity to control or influence the behaviour of other channel members control: intentionally affects another behavhoiur
types of public relation tools
product publicity -relese media, posts, etc to generate news about their new product product placement -reinforces personality and positioning -digital tech now can also enable firms to virtually place their products in any audio or video sponsorship -comapny spends $ to suporrt an issue, a cause, or an event that is consistent w corporate objectives -[cause related marketing] is a type which is the assoication with a non-profit organization bell lets talk -[ambush marketing] when firm tries to position them to be afflicated with a cause or event but IS NOT TRUE experiential -helps cx experience the brand and crease a more memorable and emotional connection company websites -website can intro new prods, provide info, obtain feedback etc -social media becoming more large
Direct-response communication is often referred to as direct marketing.. what is dis
provides the opportunity for one-to-one communication resulting in more targeted messaging and relationship building. successful because the targeted communication is often more appealing to the consumer than mass-market communication Not-for-profits, whose objective is to raise awareness and generate donations, rely heavily on this form of communication because it can be tailored, its effectiveness is measurable, and it builds relationships that are key to effective stewardship.
media buying
purchase media the rates depend on supply and demand like expensive during super bowl
example of a business that uses direct chnnles?
recall direct channel; selling directly to cx without any intermedaries ex: mail order cataloges, producer-owned stores like rocky mountain chco factory
H&R Block launched a $100 million marketing campaign to parlay the company's intimate knowledge of 20 million customers' finances into other services such as mortgages and investment advice. H&R Block has great brand recognition, but consumers care about it only four months out of the year. What do its executives believe they can use to make people think of it as a company offering services year-round? a. reengineering b. niche marketing c. demarketing d. repositioning
reposition **Repositioning means changing the customers' perceptions of a brand in relation to competing brands.
examples of sales promotions
samples contests sweepstakes premiums trade shows coupons
Even if a message has been received, it will not necessarily be properly decoded because
selective exposure, selective perception, and selective retention. When people receive a message, they tend to manipulate, alter, and modify it to reflect their own biases, needs, knowledge, and culture.
Marketers are both senders and receivers of messages. explain
send: attempts to inform, persuade, remind, connect reci: listen to the target marget so they can develop the appropirate msgs, spot new communication opportunities, connect w the target audience
overcoming discrepancies in distribtuion channels process
since now we have such a large production, our ecn of scale can aid with overcoming discrepanies [discrepancy of quantity] - amount produced (a lot) vs. the amount that a single cx needs - by storing the product they can make it avail in quantities that cx desires (warehouse) [discrepancy of assortment] - when a cx does not have all the items needed to receive full satisfaction from a product - like when buying cake batter, u cant buy this alone, u might need like icing, fruits, etc.. -this is why CHANNELS are needed, to assemble ONE place where they gather many related, complementary items together (like no-frills) [temporal discrepancy] - when product is made but cx is not ready to buy it rn - so seasonal manufactures can operate ALL YEAR ROUND since they can sell it to the wholesalers/retailers where these intermediaries can hold the inv in anticipation of demand! [spatial discrepancy] - mass production needs a lot of buyers and since they are spread out worldwide, channels are useful to be set up at various locations that are convenient to consumers
near field communication (NFC
small chips hidden in or behind products that, when touched by compatible devices, will transfer the information on the chip to the device.
Social Commerce
subset of e-commerce that involves the interaction and user contribution aspects of social media to assist in the online buying and selling of products and services. relies on user-generated content on websites to help consumers with purchases
Ideally, marketing communications from each promotional mix element (advertising, public relations, sales promotion, personal selling, direct-response communication, and social media) should be integrated
that is, the message reaching the consumer should be the same regardless of whether it is from an advertisement, a salesperson in the field, a magazine article, a Facebook page, or a coupon in a newspaper insert.
what is "medium" to advertisers
the channel used to convey a msg to the target market they need to plan for this to optimize the use of media and cost effectiveness and how long run
return on investment (ROI)
the greater your investment in time, money, and human resources, the greater return you can expect. (profit/SM investment)*100
personal selling becomes more important as
the number of potential customers decreases, as the complexity of the product increases, and as the value of the product grows a salesperson is needed to determine the prospective customer's needs, explain the product's basic advantages, propose the exact features and accessories that will meet the client's needs
how do distribution channels provide specialization and division of labour? y this useful?
the process of breaking down complex task into smaller, simpiler tasks, allocating them to specialized ppl to preform this has been proven creat greater efficiceny and lower production $$ -> economies of scale not only u get this from producing so much inv, you also get this as you have such a large division of labour
what determines what type of product advertising is used and what types?
the product's stage in its life cycle pioneering, competitive, comparative
why do some companies form [strategic channel alliances]
these are cooperative aggreements between firms to USE ONE OF THE MANFUACTORS ALREADY ESTABLISHED CHANNELS used whne the creation of a new channel is too expensive and time consumming ex starbucks contracted pepsi to develop a bottle for this RTD cofffee
shelf talkers vs shelf extenders
these are used as [shopper marketing] talker: signs attatched to store shelves extend: stand out by extensions
Executional styles of ads
these often DICTATE what type of media is used to convey the message message examples: -animated (telus) -mood/image (dior, expressing femininity and luxury) -demonstration (tide) like for -tide, the media chose would most likely be tv or some video! the media of radio would be less effective -doir would proabably use magazines where cx can stare at it and be induced!
experience curve
this term proposes that per unit costs will decrease as the firms production experience increases find cost advantages
when would u use institutional ads vs product ads
to determine the TYPE, look at the goal of the promo plan improve image -> inst enhance sales -> prod
what is an [agent/broker] channel
typically used by smaller manufacturers as they lack the resources to find others broker/agents help bring manu/whole/retailers together for negociations but DOES NOT TAKE TITLE TO THE MERCH
what is professional services pricing
used by ppl with a lot of exp, training and often certification laywer, dentist, etc charge at an houuuuurly rate or sometimes on a preformance of an act they have an ethical responsibility not to over charge but demand sometimes is highly inelastic
Shopper marketing
used to be referred to as point-of-purchase (P-O-P) promotion. focuses on the consumer from the point at which the need is stimulated through to selection and purchase of the item. Shopper marketing strategy leverages that knowledge to create effective point-of-purchase opportunities in the store to engage and influence the shopper.
programmatic buying
using an automated systems to make media buying decisions in real time -provides for a more efficient and effective buying, creating real time evluation
how has the internet forced traditional industrial distributord to change
web has enabled VIRTUAL DISTRIBUTORS to emerge. many industrial users or cx who used to use the tradtionial method now has dropped it and created [exchanges] which is making purchases online and saving them $$ additionally now there are [private exchanges] which are basically AUTOMATED internet supply chains -dell, ibm for exmaple uses this to save on distrib and frieght costs
disadvantage of status quo pricing
when u are charging a $ identical to the competition, u may have to ignore demand, cost, or borth u dont really have a say but this is sometimes the safestest long term method for survival
Relationship selling emphasizes a
win-win outcome and the accomplishment of mutual objectives that benefit both buyer and salesperson in the long term. Rather than focusing on a quick sale, relationship selling attempts to create a long-term, committed relationship that is based on trust, increased customer loyalty, and a continuation of the relationship between the salesperson and the customer
most media are cluttered by noise what noise
—anything that interferes with, distorts, or slows down the transmission of information. Transmission can also be hindered by situational factors in the physical surroundings, such as light, sound, location, and weather; the presence of other people; or the temporary moods consumers might bring to the situation.
