MKTG Chapter 10
Reseller Support
1. Producers want to provide support to resellers to assist in selling their product 2. They expect resellers to support their products
Public Relations
A broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Goal is to create and enhance a positive image of the organization. Efforts to bypass the traditional media intermediary
A hybrid mix of a social networking site and a micro-blogging site that asks viewers one simple question Approximately 23 percent of users report that they follow businesses on Twitter. Being used to enhance customer service and create publicity about company products
Publicity
A nonpersonal communication in news-story form about an organization or its products, or both, transmitted through a mass medium at no charge.
Personal Selling
A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Involves more specific communication directed at one or several individuals. Used in the business-to-business market and also in the business to consumer market for high-end products such as homes, cars, electronics, and furniture.
Online Fraud
Any attempt to conduct fraudulent activities online, including deceiving consumers into releasing personal information
Podcasts
Audio or video file that can be downloaded from the Internet with a subscription that automatically delivers new content to listening devices or personal computers; podcasts offer the benefit of convenience, Giving users the ability to listen to or view content when and where they choose Create brand awareness, promote their products, and encourage customer loyalty 18 and 29 years of age makes podcasts a key tool for businesses marketing to this demographic Ex: CBC Radio, NPR, MSNBC, and PBS
Marketer's Digital Marketing
Catch all for capturing all digital channels for reaching customers.
Electronic Word of Mouth
Communicating about products through websites, blogs, e-mail, social networks, or online forums is particularly important to consumers staying abreast of trends. provide consumers with information on trends, reviews of products, and other information on what is new, exciting, and fashionable for consumers. These sites have become so influential in introducing consumers to new products and shaping their views about them that marketers are increasingly monitoring them to identify new trends
Source
Communication begins with a person, group or organization with a meaning it attempts to share with an audience. Ex: Electronics salesperson
Promotional Objectives
Create mass awareness of a new convenience good
Identify Prospect
Customers who respond to promotional efforts usually have higher interest in the product. Organization can respond with phone calls, email, and personal contact
Selective Demand
Demand for a specific brand, a marketer employs promotional efforts that point out the strengths and benefits of a specific brand. Requires singling out attributes important to potential buyers Stimulated by
Production Considerations
Digital Media provide an opportunity to add a service dimension to traditional products and create new products that could only be accessible on the Internet
Digital Media
Electronic media that function using digital codes. Media available via computers, cellular phones, smartphones and other digital devices that have been released in recent years.
Interactivity
Enables the firm to engage with its stakeholders Helps to solve this problem by focusing on the kinds of digital media that can make interpersonal connections possible Helps marketers maintain high-quality relationships with existing customers by shaping customer expectations and perceptions.
Mass Communication
Feedback is often slow and difficult to recognize. May take months/ years before effects of promotion is known.
Interpersonal Communication
Feedback occurs, through talking, touching, smiling, nodding, eye movement, and other body movements and postures.
Consumers rationalize pirating software
First, many consumers feel that they just do not have the money to pay for what they want. Second, because their friends engage in piracy and swap digital content, they feel influenced to engage in this activity. Third, for some, the attraction is the thrill of getting away with it and the slim risk of consequences. Fourth, to some extent, there are people who think they are smarter than others; engaging in piracy allows them to show how tech savvy they are
Apps
Important feature is convenience and cost savings they offer to the consumer enable customers to download in-store discounts. Shoppers using the Shopkick application can download rewards at Best Buy, Macy's, Target, and other retailers.
Virtual Sites
Include Second Life, Everquest, Sim City, and the role-playing game World of Warcraft User-created, three-dimensional worlds that have their own economies and currencies, lands, and residents who come in every shape and size
Pull Media
Internet is referred to this because users determine which websites they are going to view; the marketer has only limited ability to control the content to which users are exposed, and in what sequence.
Digital Media
Internet now allows consumers to form relationships with one another as well—through online chats, blogs, and electronic word of mouth Blogs and some social networks allow marketers to interact with prospective customers in real time
Create Awareness New Products
Introducing a product is crucial to initiating the product adoption process. Created quickly to generate revenues to offset the high costs of product development and introduction
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 consumers. Is just one part of the comprehensive area of promotion. improve the effectiveness of other promotion mix elements, especially advertising and personal selling Ex: free samples, games, rebates, sweepstakes, contests, premiums, and coupons.
Promotion
Is communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization positively and accept its products. Also is communication that can be managed
Receiver
Is the individual, group, or organization that decodes a coded message AUDIENCE: is 2 or more receivers
Encourage Product Trial
Marketers use free samples, coupons, test drivers, limited free-use offers, contests and games. Trial-inducing promotional efforts aim to make product trial convent and low risk for potential customers.
Mobile advertisements:
Mobile advertisements are visual advertisements that appear on mobile devices. Companies might choose to advertise through search engines, websites, or even games accessed on mobile devices. Orville Redenbacher has used mobile advertisements to promote its healthy snacks.
Mobile applications
Mobile applications are software programs that run on mobile devices and give users access to certain content.
Mobile websites
Mobile websites are websites designed for mobile devices. Mobile devices constitute 7 percent of Web traffic
Multimedia Messages:
Multimedia messaging takes SMS messaging a step further by allowing companies to send video, audio, photos, and other types of media over mobile devices. For instance, Motorola's House of Blues multimedia campaign allowed users to receive access to discounts, tickets, music, and other digital content on their mobile phones.
Personal Selling
Organizations selling to industrial markets and firms marketing products through only a few wholesalers frequently Company's customers are concentrated in a small
Advertising
Paid non personal communication about an organization and its products transmitted to a target audience through max media Promotes goods, services, ideas and issues Highly flexible Can reach extremely large target audience or focus on a small General communication aimed at a relatively large target audience, Ex: Television, Newspaper, video games, outdoor displays
Word of Mouth Communication
Personal, informal exchanges of communication that customers share with one another about products, brands, and companies Very important when people are selecting restaurants and entertainment along with automotive, medical, legal, banking, and personal services like hair care
Pull Policy
Promotes directly to consumers to develop strong consumer demand for its products Primarily through advertising and sales promotion
Create Awareness Existing Product
Promotion efforts are aimed to increase awareness of brands, product features, image-related issues,or operational characteristics
Retain Loyal Customers
Promotional efforts help an organization control its costs, because the costs of retaining customers are usually lower than those of acquiring new ones. Implement frequent-user programs and special offers
Reduce Sale Fluctuations
Promotional techniques are generated sales during slow periods, so a firm can use its resources more efficiently Used to stimulate sales during sale slumps
Internet
Provided unprecedented opportunities for marketers to forge interactive relationships with customers, stakeholders, employees and suppliers. Important component of firms' marketing strategy
Integrated Marketing Communication
Refer to the coordination of promotion and other marketing efforts to ensure maximum informational and persuasive impact on customers. Allow and organization to coordinate and manage its promotional effort to transmit consistent message Enable synchronization of promotion elements and can improve the efficiency and effectiveness of promotion budget. Goal: To send a consistent message to customers
Electronic Marketing "e-marketing"
Refers to the strategic process of distributing, promoting, and pricing products and discovering the desires of customers using digital media and digital marketing Goes beyond the Internet and includes mobile phones, banner ads, digital outdoor marketing and social networks Ability of marketers and customers to share information
Manufacturer Advertise a Product to Customer
Reseller should view this promotion as a form of strong manufacture support.
Decoding Process
Signs or symbols are converted into concepts and ideas.
Coding a Meaning
Source needs to use signs or symbols that the receiver or audience uses to refer to the concepts the source intends to convey
One in five Kenyans One in four Japanese adults participate in social networks.
Stats for adults participate in social networks?
Mobile Devices
Such as smartphones, mobile computing devices, and tablet computers, allow customers to leave their desktops and access digital networks from anywhere More than 80 percent of Americans have a mobile device E-commerce sales on smartphones totaled $5 billion in 2011, but marketers expect this number to rise in upcoming years
Connectivity
The ability for consumers to be connected with marketers along with other consumers Ex: The Avon Voices website encourages singers to upload their singing videos, which can then be voted on by other users for the chance to be "discovered"
Accessibility
The ability for marketers to obtain digital information Ex:Google can use Web searches done through its search engine to learn about customer interests
Interactivity
The ability of customers to express their needs and wants directly to the firm in response to its marketing communications Ex:Texas Instruments interacts with its customers on its Facebook page by answering concerns and posting updates
Addressability
The ability of the marketer to identify customers before they make a purchase Ex:Amazon installs cookies on a user's computer that allow the company to identify the user when he or she returns to the website
Control
The customer's ability to regulate the information they view as well as the rate and exposure to that information Ex: Consumers use Kayak.com to discover the best travel deals
Channel Capacity
The limit that each communication channel has on the volume of information it can handle effectively. Determined by the least efficient component of the communication process.
Face-to-Face Communication
The most adaptive and flexible type of communication. Verbal and Nonverbal feedback is immediate. Instant feedback lets communicators adjust messages quickly to improve effectiveness to their communications.
Push Policy
The producer promotes the product only to the next institution down the marketing channel. In a marketing channel with wholesalers and retailers, the producer promotes to the wholesaler because, in this case, the wholesaler is the channel member just below the producer Stresses personal selling
Feedback
The receiver's response to a decoded message to the source. Source usually expects and normally receives this. The receiver provides the original source with a response to the message. Is coded, sent through communication channel and decoded by the RECEIVER, the source of the original communication
Share Meaning
The source should use signs or symbols familiar to the receiver or audience
Communication Channel
To share a coded meaning with the receiver, a source selects and uses a medium of transmission that carries the coded message from the source to the receiver.
Coding Process "Encoding"
To transmit meaning, a source must confer the meaning into a series of signs or symbols representing ideas or concepts.
tactile communication
Touching A form of communication, although less popular in the United States than in many other countries
Communication
Transmission of information. A sharing of meaning through the transmission of information (symbols, words and pictures)
wiki
Type of software that creates an interface that enables users to add or edit the content of some types of websites
1.social networking sites, 2.blogs, 3.wikis, 4.media-sharing sites, 5.virtual reality sites, 6.mobile devices, 7.applications 8.widgets
Types of digital media in which Internet users are likely to participate include?
Pioneer Promotion
Used in the introductory stage of the product life cycle No competing brands and it neither emphasizes brand names nor compares brand names Informs potential customers about the product: What is it. What it does. How it can be used. Where it can be purchased.
Combat Competitive Promotional Efforts
Used to offset or lesson the effect of a competitors promotional or marketing program Does not increase and organizationals sale but prevents a sales loss. Used by firms in extremely competitive consumer market Ex: Fast-Food, Connivence Store and Cable/Internet.
Digital Marketing
Uses all digital media, including the Internet and mobile and interactive channels, to develop communication and exchanges with customers.
Blogs (short for "weblogs")
Web-based journals (short for "weblogs") in which writers editorialize and interact with other Internet users More than three-fourths of Internet users read blogs.
social network
Web-based meeting place for friends, family, coworkers, and peers that allow users to create a profile and connect with other users for purposes that range from getting acquainted, keeping in touch, and building a work-related network Also used to promote products, handle questions and complaints, and provide information to assist customers in buying decisions. Useful for relationship marketing, or the creation of relationships that mutually benefit the marketing business and the customer.
1. The increased tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions through blogs or digital media. 2.Consumers' tendencies to trust other consumers over corporations. Consumers often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions.
What 2 major trends have caused consumer-generated information to gain importance?
Climate Holidays Seasons
What 3 factors cause demand for many products to vary from one month to another
Size Geographic Distribution Demographic Characteristics
What 3 factors help dictate the methods to include in a products promotion mix?
Public Relations
What appears in promotion mix for both business and consumer productS?
Stop Online Piracy Act Protect Intellectual Property Act
What are 2 US government proposed bills?
1. Reached by the wrong Receivers 2. Embraced by the wrong receivers
What are 2 problems that can happen with inappropriate communication?
1. Has Flaws 2. Pervades our daily lives
What are 2 reasons why people criticize promotions?
1. Absolute dollar outlay can be high 2. Limit or preclude use of ads 3. Limited time to communicate
What are 3 disadvantages to Ads?
Printed Words Broadcast Media Digital Communication
What are 3 examples of transmission of media?
Kinesic Communication Proxemic Communication Tactile Communication
What are 3 types of interpersonal communication when a salesperson and customer meet face to face?
Cybercriminals typosquatting fake charities
What are 3 types of online fraud?
1. Cost efficient 2. Repeat the Message several times 3. Add to products value 4. Enhance Image
What are 4 benefits to Ads?
High Priced Intro stage Business products in G/M stage Exclusive Distribution
What are 4 characteristics of the product that Personal Selling is used for?
annual reports, brochures, event sponsorship, socially responsible programs
What are 4 types of tools used by Public Relations?
1. Deceptive 2.Increase Price 3. Create Needs 4. Encourage Materialism 5. Cost Too Much
What are 5 critics of promotion?
1. Differentiating the product from competing brands in the minds of potential buyers 2. Increasing the number of product uses and promoting them through advertising campaigns 3. Price Discount, Free samples, coupons 4.Encouraging existing customers to use more of the product 5. Promotions for large packaging size and multiple product use. increasing consumption
What are 5 ways selective demand can be stimulated?
Highly seasonal Toy Products Low-Priced Convience Products Introduction Stage Consumer products in G/M stage Intensive Distribution Personal Products
What are 7 characteristics of the product that Advertising is used for?
1. Privacy 2. Fraud 3. misappropriation of copyrighted intellectual property.
What are the 3 legal issues with online usage?
1. Information about customers and marketing environment forces 2. Integrated marketing communication plan 3. Customers 4. Feedback
What are the 4 characteristics of information flows that are important in integrated marketing communications?
1. Adverting 2. Personal Selling 3. Public Relations 4. Sales Promotion
What are the 4 elements of Promotion Mix?
1. Proper Planning 2. Implementation 3.Coordination 4. Control of Communication
What are the 4 steps for max. benefit from promotional efforts?
1. Addressability 2. Interactivity 3. Accessibility 4. Connectivity 5. Control
What are the 5 characteristics that distinguish online media from traditional markets?
SMS Multimedia Messages Mobile Advertisement Modbile Websites Location Based networks Mobile Applications
What are the 6 most common mobile marketing tools?
1. Creators 2. Conversationalists 3. Critics 4. Collectors 5. Joiners 6. Spectators 7. Inactives
What are the 7 segments of the Social Technographic Profile?
Create Awareness Stimulate Demand Encourage product trial identify prospects Retain loyal customers Facilitate reseller support Combat competitive promotional efforts Reduce sales fluctuations
What are the 8 promotional efforts?
Hair Care Eye Care Treatment Candy and Gum
What are the top 3 coupon categories?
Swag Bags
What doe celebrities donated to charity so they do not have to pay taxes?
Laws, government regulation, industry self-regulation
What has helped decrease deceptive promotion?
Handshaking
What is a common form of tactile communication both in the United States and elsewhere?
Internal Social networks
What is are a great way to capture knowledge and identify experts on different subjects within an organization?
Interactivity
What is main distinguishing characteristic of digital media?
Promotion Mix Elements
What is the basic components of appropriate Promotional programs?
Internet
What is the most common source for consumers between the age of 18 and 29? 65%
Television
What is the most common source for obtaining news? 66%
What is the most popular social networking site in the world?
Source Receiver Coding Process Communication Channel Decoding Process Noise Feedback
What is the process of Comunication
Advertising
What plays a major role in promoting consumer goods
Personal Selling
What type of promotion mix is used for business products?
1. The size of an organization's promotional budget affects 2. Objectives 3. Polices
What3 factors affects the promotional methods?
Promotion Mix
When an organization combines specific method to manage the integrated marketing communications for a particular product
Crisis
When should public relations not be viewed as a set of tools to be used?
Primary Demand
When the organization is the first to introduce and new product, it tries to stimulate a demand for a product category rather than for a specific brand of product.
Noise
When the result of decoding differs from what was coded. Anything that reduces the clarity and accuracy of the communication; has many sources and may affect any or all parts of the communication process. Can arise in the communication channel itself. Source uses signs or symbols that are unfamiliar to the receiver or have a different meaning from the one intended. Ex: radio transmission difficulties, slow internet connection.
55 and over
Who are the fastest-growing group on Facebook is consumers?
Israel
Who has the highest percentage of adults who use social networking sites?
Product Placement
a form of advertising that strategically locates products or product promotions within entertainment media to reach the product's target markets Ex: Apple, Reality programming, X Factor
Proxemic Communication
a less obvious form of communication used in personal selling situations, occurs when either person varies the physical distance separating them. When a customer backs away from a salesperson
CafeMom
a social networking site that offers mothers a forum in which to connect and write about parenting and other topics important to them Walmart, Playskool, General Mills, and Johnson & Johnson have all advertised through this site.
Media-sharing sites
allow marketers to share photos, videos, and podcasts but are more limited in scope in how companies interact with consumers firms can promote their products through videos or photos, they usually do not interact with consumers through personal messages or responses
Deal Websites
allow online shoppers to find the best deals, giving retailers a run for their money. E-marketers like Amazon.com, eBay, and Netflix have taken market share away from brick-and-mortar bookstores and movie rental stores.
Photo-sharing sites
allow users to upload and share their photos with the world Ex: Flickr, SmugMug, Picasa Web Albums, and Photobucket.
Video-Sharing Sites
allow virtually anybody to upload videos, from professional marketers at Fortune 500 corporations to the average Internet user give companies the opportunity to upload ads and informational videos about their products Ex:YouTube, Metacafe.com, and Hulu
Scraping
an activity where companies offer to collect personal information from social networking sites and other forum
Inactives
are online users who do not participate in any digital online media, but as more and more people begin to use computers as a resource, this number is dwindling
Critics
are people who comment on blogs or post ratings and reviews. an important component in a company's digital marketing strategy, because the majority of online shoppers read ratings and reviews to aid in their purchasing decisions
Widgets
are small bits of software on a website, desktop, or mobile device that enables users "to interface with the application and operating system." Marketers might use widgets to display news headlines, clocks, or games on their webpages.
Creators
are those consumers who create their own media outlets, such as blogs, podcasts, consumer-generated videos, and wikis
Buzz Marketing
attempt to incite publicity and public excitement surrounding a product through a creative event works best as a part of an integrated marketing communication program that also uses advertising, personal selling, sales promotion, and publicity.
hackers
break into websites and steal users' personal information, enabling them to commit identity theft
Location-based networks
built for mobile devices. One of the most popular location-based networks is Foursquare, which lets users check in and share their location with others. Businesses like Walgreens and Chili's Grill & Bar have partnered with Foursquare to offer incentives to consumers who check in at their venues.
Kinesic Communication
communication through the movement of head, eyes, arms, hands, legs, or torso. Winking, head nodding, hand gestures, and arm motions
online promotion
consumers are more informed, reading consumer-generated content before making purchasing decisions and increasingly shopping at Internet stores.
Cybercriminals
create profiles under a company's name. These fraudulent profiles are often created to either damage the company's reputation (this is particularly common with larger, more controversial companies) or as a way to lure that company's customers into releasing personal information
Federal Trade Commission (FTC)
created guidelines requiring influencers who are receiving pay for company tweets to disclose this fact to viewers
Joiners
growing dramatically. Anyone who becomes a member of Myspace, Twitter, Facebook, or other social networking sites to participate in these sites to connect and network with other users
Digital Connections
help the customer find the price of the product available from various competitors in an instant.
Privacy
involves the use of personal information that companies collect from website visitors in their efforts to foster long-term relationships with customers. Many of these breaches occur at banks, universities, and other businesses that contain sensitive consumer information.
Wikipedia
is an online encyclopedia that allows users to add or edit information in more than 250 languages. Consistently one of the top 10 most popular sites on the Web. Because Wikipedia can be edited and read by anyone, it is easy for online consumers to correct inaccuracies in content
purchase products
is interpreted broadly to encompass acceptance of ideas and issues
Collectors
least recognized group of the seven. gather information and organize content generated by critics and creators. Ex:Digg, del.icio.us, reddit, and RSS feeds
Distribution Considerations
make products available at the right time, at the right place, and in the right quantities elps businesses increase efficiency. The growth in popularity of e-readers has lead to a greater direct distribution of magazines, newspapers, and books.
SMS
messages are text messages of 160 words or less. SMS messages have been an effective way to send coupons to prospective customers.
North America
more than three-fourths of the population has Internet access
Yelp
one of the most comprehensive review sites on businesses.
Flickr
owned by Yahoo! What is the most popular photo-sharing site on the Internet.
Advertising and Sales Promotion
product's market consists of millions of customers customers are numerous and dispersed
QR scanning App
promote their companies scanning offers consumers the option of comparing prices between retailers, assuring the opportunity to get the best value.
breakfast cereal
promotion mix probably leans heavily toward advertising, sales promotion, and possibly public relations
New Bulgium
reating profiles on social networking sites to connecting with consumers
Conversationalists
regularly update their Twitter feeds or status updates on social networking sites. spend time at least once a week (and often more) on digital media sites posting updates.
Pricing
relates to perceptions of value and is the most flexible element of the marketing mix the demand for low-priced products has grown, leading to the creation of daily deal sites like Groupon, CrowdCut, and Living Social
Internet
represents a large resource to marketers for learning more about consumer wants and needs.
Viral Marketing
strategy to get consumers to share a marketer's message, often through e-mail or online video, in a way that spreads dramatically and quickly.
Dominos
taking advantage of virtual worlds like Second Life to increase consumer interest
Enterprise 2.0
term coined to describe firms' efforts to use cutting-edge technology associated with social networks and blogs to assist in workplace connections. It involves software modifications to contribute to traditional software platforms used by large companies
Distribution push-pull dynamic
the firm that provides a product will push to get that product in front of the consumer, while at the same time connectivity aids those channel members that desire to find each other
Spectators
the largest group in most countries. consumers who read what other consumers produce but do not create any content themselves.
South West Airlines
using Twitter to build customer relationships
