Marketing 301 Exam 3
marketing website
Engages consumers to move them closer to a direct purchase or other marketing outcome - Seamless, automates key tasks, enhances retail experience
PR tools
News Speeches Special events Written memories Videos Public service Buzz marketing Corporate identity marketing
Media vehicles
Specific programs that can carry miche ads/commercials - sports illustrated, brides, reader's digest
The big idea for ad message decisions
The advertiser must develop a compelling creative concept—or big idea—that will bring the message strategy to life in a distinctive and memorable way. At this stage, simple message ideas become great ad campaigns. The creative concept may emerge as a visualization, a phrase, or a combination of the two.
Object and task method for budget decisions
The company sets its promotion budget based on what it wants to accomplish with promotion. This budgeting method entails (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.
blog
online journals of narrowly defined topics where people and companies post their thoughts and other content
Branded community
presents brand context that engages consumers and creates customer- brand community - Thumb braker- what will it take for you to pause and engage with content instead of continuing to scroll?
reach
% of target market exposed to an ad during period of time
What is public relations used for?
Building good relations with the company's various publics; NOT DIRECT MARKETING - Obtain favorable publicity - Build up a good corporate image - Handling unfavorable rumors, stories, events - Credible?
online marketing domains
Business to consumer (B2C) Business to business (B2B) Consumer to consumer (C2C) Consumer to business (C2B)
horizontal marketing systems
- 2 or more companies at one level join together to follow a new marketing opportunity - Want to give you reasons to stay longer --If you get Starbucks in Target you will stay longer
informative advertising objectives
- Build primary demand - Good for introducing a new product category - Communicating customer value - Suggesting new uses for a product - Building a brand and company image - Informing the market of a price change - Telling the market about a new product - Describing available services and support - Explaining how a product works - Correcting false impressions
Persuasive advertising objectives
- Building secondary brand preference - Good for direct or indirect brand comparisons - Persuading customers to purchase now - Encouraging switching to a brand - Creating ongoing customer engagement - Changing customer perceptions of product value - Building brand community
Types of vertical marketing systems
- Corporate VMS: --Corporation owns production and distribution --Coordination and conflict through regular organizational channels --Grocery stores often own their own ---Bakery ---Dairy ---Ice cream plant ---Food processing plants --Advantages= you can immediately jump on new opportunities because there are fewer people involved in decision making ---Zara -Contractual VMS: --Individual firms join through extensive contracts --Includes franchise organizations --Sometimes a parent company ---Ex: Luxottica owns target, Sears, Sunglass hut Oakley, etc. ---Hertz has contract with a car company -Administered VMS: --Leadership through the size and owner of dominant channel members --Channel captains ---P&G
Price adjustment strategies
- Discount pricing: cash, quantity, functional, seasonal - Segmented pricing: Customer-segment, product-form, location, time - Psychological pricing: price ending in... 9- bargain, 8- bigger bargain, 7- doesn't hep sales because number is angular and jarring 00- higher quality, etc. - Promotional pricing: Loss leaders (Coca-cola liters) --2 liter cheaper than a small 20 oz - Geographical pricing: Different price points for different regions (delivery fees depending on how far from store) - Dynamic pricing: Things that fluctuate in price (Ubers, hotels on football weekends)
Disintermediation ON THE RISE
- Eliminating marketing intermediaries from a channel - Radically new types of intermediaries that displace traditional ones --Ex: music/movies/TV went digital ---No more Blockbuster
Reminder advertising objectives
- Increase frequency of purchase for people who already use them - Maintaining customer relationships - Reminding consumers where to buy the product - Reminding consumers that the product may be needed in the near future - Keeping the brand in a customer's mind during off-seasons o Good for mature products § Ex: coca cola, old spice
Ad message decisions
- Slice of life- showing typical person/people using product in normal setting (could be a problem-solution format like the mcdonalds coffee makes people less grumpy example) - Lifestyle- showing how product fits with particular lifestyle - Fantasy- creates a fantasy around the product or its use - Build mood or image around product - Musical- shows someone singing about product - Personality symbols- character that represents the product o James Franklin not an example because he won't be here forever. But the Nittany lion WILL be here forever so he represents Penn State. - Technical expertise- show company expertise at making the product - Scientific evidence- present survey or scientific data showing that the brand is better than other brands - Testimonial- highly believable or likeable source endorsing the product
What are the goals of the promotions mix?
- To persuasively communicate customer value and build customer relationships. - To deliver a clear, consistent, and compelling message
Key Trends in Retailing
-Growth of non-store retailing --Amazon -Retail convergence and the rise of mega-retailers --Super Target, Super Walmart -Global expansion of major retailers -Growing importance of technology -Retail stores as communities and hangout places, importance of experiential retailing
marketing channel decisions
-Marketing channel design -Marketing channel management -Marketing logistics (physical distribution)
outside vs. inside sales force
-Outside- sales people who travel to call on customers in the field -Inside- sales people who conduct business from their offices via telephone, internet, or perspective buyers
Digital marketing process
-Understanding Digital Marketing -Preparing for a digital marketing campaign -Employing digital channels in an omni-channel strategy -Addressing public policy issues in digital marketing
Conventional vs. vertical marketing systems
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Steps in selling process
1. Prospecting and Qualifying Obtain leads and scout out qualified prospects Use: Referrals Directories Cold calling Qualify leads through a screening process 2. Pre-approach Learn as much as possible about a prospective customer before making a sales call Establish your call objectives: To make an immediate sale? To gather info only? To qualify the prospect? Decide on the best approach How and when to contact the person 3. Approach Salesperson meets the customer for the first time Iron out the following Salesperson's appearance Opening lines Key questions about buyer's needs Show a display or sample to attract attention or curiosity 4. Presentation and Demonstration Salesperson tells the product "story," highlighting customer benefits Needs-satisfaction approach: Show solutions/results Good listening skills "customer solution approach" Magic wand question How does customer feel about _____? 5. Handling Objections Salesperson seeks out, clarifies, and overcomes customer objections to buying Seek out hidden objections Ask buyer to clarify objections 6. Tactics: Salesperson is in control (knows which questions to ask, etc.) Establish a relationship (similarities between salesperson/buyer) Use emotion Refer to buyers core values Reduce risk of buying Give sense of urgency 7. Closing The sales person asks the customer for the order Recognizing closing signals Tactics: Directly ask for the order Review points of agreement Offer help to write up order Ask whether the buyer wants this model or that one Give a sense of urgency to buy 8. Follow-up after the sale to ensure customer satisfaction and repeat business
Promotion mix tools
1. advertising 2. sales promotion 3. personal selling 4. public relations
Roles of intermediaries in channels
Act as agents between the original creator of the merchandise and the consumer who makes the last purchase
What is advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Broadcasting/Narrowcasting
Broadcasting: sending out a radio or TV signal to be received by many people. Narrowcasting: sending out signal to a select area of people.
Publicity
Publicizing specific products and brands.
7 C's of effective website deisign
Context: layout and design Content: text, pictures, video Customization: user can customize site Communication: user-site communication Community: user-user communication Connection: site is linked to other sites Commerce: site enables transactions
consumer omni-channel behavior
Create a seamless cross-channel experience that integrates in-store, online, and mobile shopping
Direct marketing
Direct communications with carefully targeted individual consumers to obtain an immediate response - Direct mail & catalog marketing: sending an offer, reminder, announcement, or booklet to a person at a particular address - Direct-response TV: direct marketing via television, which elicits an instant response (i.e., to order the product) (not QVC bc QVC segments are longer)
Social Criticisms of marketing on individuals
High prices Deception High pressure selling Planned obsolescence Harmful products
AMA Ethical Values
Honesty- be truthful and forthright in our dealings with customers and stakeholders Responsibility- accept the consequences of our marketing decisions and strategies Fairness- to try to balance justly the needs of the buyer with the interests of the seller Respect- to acknowledge the basic human dignity of all stakeholders Openness- to create transparency in our marketing operations Citizenship- to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner
Why do we need channels?
Improves efficiency, intermediaries help, specializes the selling process
Talents of Successful Salespeople
Intrinsic motivation Disciplined work style Ability to close a sale Ability to build relationships with customers
Traditional price approaches
Many companies rely on one of two approaches: - Cost-based pricing --Calculate cost, add markup ---> price - Competition-based pricing --Loot at what competition is doing, copy ---> price The underlying assumptions are problematic
Value based pricing
Market skimming: Charge a high premium for the product but hoping to sell to a small top % of market Market penetration: Sell for barely above cost to make but hoping to sell to a lot of people
AMA statement of ethics
Marketers must do no harm Marketers must foster trust in marketing system Marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system
Undercover marketing
Marketing to people who do not know they are being marketed to - AKA stealth marketing - Marketing when you don't know you are being marketed to
Social criticisms of marketing on society
Materialism Unreal expectations and desires Cultural pollution Taking advantage of children, lower socioeconomic, etc. Few social goods
Sales force evaluation
Most info about sales force's activities comes from reports: sales reports, call reports, expense reports Salespeople are typically good at reporting some things, not others - Good at sales reports, contact report (part of call reports) - Bad at competitive into, complete expense reports, details of promises made (in call reports) - Management uses this info to evaluate, then offers feedback both informally and formally
Sales force structure
Outside and inside sales forces Territorial: salesperson assigned to exclusive area and sells full line of products Product sales force sells only certain product lines Customer: sales force organized by customer or industry Complex: combination of several of the above is most common for nationwide companies
earned media
PR media channels, such as television, newspapers, blogs, online video sites, and other media not directly paid for or controlled by the marketer but that include the content because of viewer, reader, or user interest.
Public policy and pricing:
PROTECT COMPETITORS FROM: Price fixing- talking with competitors to set prices Predatory pricing- selling below cost with the intention of punishing a competitor or putting them out of business PROTECT CONSUMERS FROM: Price discrimination- ensure same price to customers at given level of trade Retail price maintenance- requiring dealers to charge a specified retail price Deceptive pricing- seller states price that may mislead customers
What is personal selling
Personal selling consists of interpersonal interactions with customers and prospects to make sales and maintain customer relationships. "Salesperson" covers a wide range of positions from order takers to order getters
What is price?
Price= customer cost= sum of everything customer gives up for having and using the product - Time, convenience, travel, delivery, installation, training, opportunity cost
Product mix pricing strategies
Product line pricing- management must determine the price steps to set between the various products in a line. The price steps should take into account cost differences between products in the line. More important, they should account for differences in customer perceptions of the value of different features. Optional-product pricing- pricing optional or accessory products along with the main product. For example, a car buyer may choose to order a remote engine start system and premium sound system. Refrigerators come with optional ice makers. And when you order a new laptop, you can select from a bewildering array of processors, drives, docking systems, software options, and service plans. Pricing these options is a sticky problem. Companies must decide which items to include in the base price and which to offer as options. Captive-product pricing- Companies that make products that must be used along with a main product are using captive-product pricing. Examples of captive products are razor blade cartridges, video games, printer cartridges, single-serve coffee pods, e-books, and video games. Producers of the main products (razors, e-readers, printers, single-cup coffee brewing systems, and video game consoles) often price them low and set high markups on supplies and supplemental products. By-product pricing- the company seeks a market for these by-products (ex: chicken feet aren't eaten in America but eaten in China) to help offset the costs of disposing of them and help make the price of the main product more competitive. Product bundle pricing- sellers often combine several products and offer the bundle at a reduced price. For example, fast-food restaurants bundle a burger, fries, and a soft drink at a "combo" price.
Growth of sales promotion
Rapid growth because - Pressure to increase current sales - Companies face more competition - Advertising efficiency has declined - Trade demands more support - Consumers have become more deal-oriented
Sales promotion tools
Sampling: provide sample to introduce new product or create new excitement for existing product Couponing: Promote early trial of new brand or stimulate sales of mature brand; good short term incentive to buy - Redemption rate has declined (not sharply but gradually); coupons target more carefully (through cell phones) Geofencing and Geoconquesting: More than half of 13-17 year olds use coupons and coupon codes Geofencing- Sending you coupons when you get close to location; creates a virtual geographical boundary that triggers a marketing action to a mobile device when a user enters or exits that boundary. Geoconcquesting- a technique that uses location data to identify a brand's competitors in an effort to promote a competing or competitive offering to their customers. Premiums- Freebies (cereal box toy) Advertising specialties- Branded freebies (J&J pen at a career fair) Patronage rewards- Rewards systems (ex: airlines miles; For products that you purchase often like food) Point of purchase promotions- Coupon right on shelf next to product Contests and sweepstakes- Enter to win
Affordable method for budget decisions
Setting promotion budget at the level they think the company can afford. Small businesses often use this method, because company cannot spend more on promotion than it has. They start with total revenues, deduct operating expenses and capital outlays, and then devote some portion of the remaining funds to promotion.
Percentage of sales method for budget decisions
Setting their promotion budget at a certain percentage of current or forecasted sales/ they budget a percentage of the unit sales price. The percentage-of-sales method is simple to use and helps management think about the relationships between promotion spending, selling price, and profit per unit.
Competitive parity method for budget decisions
Setting their promotion budgets to match competitors' outlays. They monitor competitors' promotions or get industry promotion spending estimates from publications or trade associations and then set their budgets based on the industry average. Basically based on what competitors do.
viral marketing
Videos, ads, other marketing content that customers seek out or pass along to friends
Marketing logistics functions
Warehousing Inventory management transportation Logistics info management
Digital marketing persona
a VERY detailed character with key traits of your target market (ex a 19 year old girl who attends a university, interested in fitness cooking and seeing friends, etc etc more detailed than that)
Madison & Vine
a term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages o Cost effective and higher reach o Apple- 23% of product placement
sustainable marketing concept
calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company
concept of value
customers must believe that the value delivered is greater than the price before they will buy: Must define what is being sold - A better future vs. education - Business recovery vs. data backup Financial value - Cost savings, earnings opportunities Emotional value - e.g., status, safety, sense of belonging
social media marketing
independent and commercial online communities where people congregate, to socialize and share messages, opinions, pictures, videos, and other content advantages- targeted and personal, interactive, immediate and timely, cost effective, engagement and social sharing capabilities challenges- effective usage is uncertain, difficult to measure results, largely user controlled
integrated social media marketing
large companies design social media efforts that blend with and support other elements of a brand's marketing strategy and tactics
shared media
media shared by consumers with other consumers, such as social media, blogs, mobile media, and viral channels as well as traditional word-of-mouth.
frequency
number of times a person in target market is exposed
The proper way for budgeting decisions is
objective and task method - but this is difficult to do without data
owned media
promotional channels owned and controlled by the company, including company websites, corporate blogs, owned social media pages, proprietary brand communities, sales forces, and events.
paid media
promotional channels paid for by the marketer, including traditional media (such as TV, radio, print, or outdoor) and online and digital media (paid search ads, web and social media display ads, mobile ads, or email marketing).
mobile marketing
promotional content delivered to consumers through their mobile devices - 97% of all Americans now own a mobile device - 67% of users feel inspired to make a purchase on TikTok - Americans spend nearly 4 hours a day on their mobile devices micro moments: i want to know moment, i want to go moment, i want to do moment, i want to buy moment
media impact
qualitative value of exposure through a given medium
email marketing
sending highly targeted marketing messages via email - Return= $42 for every $1 spent - Back to school, black Friday, etc. are sent close to those calendar dates
Media scheduling
setting the timing and sequence for a series of advertisements - flighting- seasonal items like christmas products - continuity- consistent all the time like cleaning products - pulsing- a little fluctuation but never goes to 0 (like flighting) such as candy around halloween
What is sales promotion?
short-term incentives to encourage the purchase or sales of a product or service. Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.
search related (contextual) ads
text- based ads and links that appear alongside search engine results Search related ads: - Sponsored ads come up first - Above the fold aka above the scroll
Promotions mix
the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships
Moderate incongruity
we don't want ads to be too easy or hard to understand
