Marketing test 3

Parts of an AD

-Headline = large type in an ad that is designed to draw attention -Subhead = a smaller headline provides more information about the alarm it is selling. Both of these should be short and use simple words, primary benefits name of brand, and interest provoking idea -Body copy = The main text portion of the ad, explains in more depth what headline and subheads introduced, provides enough info to move target consumer to action -Brand elements= characteristics that identify the sponsor of a specific ad usually though a logo.

Types of Sales promotions

1. Coupons - Offer a discount on the price of specific items when the items are purchased. Used to stimulate demand and are issued by manufacturers and retailers in newspapers, on products, on shelves, store kiosks, the internet, etc..Some retailers have linked coupons directly to their loyalty programs. New coupons offer up lots of data allowing advertisers to target their markets more closely, leading to higher redemption rates and expenses. Typically works better with perishable products to prevent stockpiling 2. Deals - generally a type of short term price reduction that can take several forms such as a featured price, a price lower than the regular price, a certain % "more free", a buy one get one free, or a limited time discount. Deals can alter perceptions of value 3. Premiums- Offer an item for free or at a bargain price to reward some type of behavior such as buying, sampling, or testing. Can be included in product packaging(toys in cereal boxes), placed on the packaging, delivered in the mail, they can be very effective if they are consistent with the brands message and image and highly desirable to the target market.

Steps in planning and executing ad campaign

1. Identify target audience 2. Set advertising objectives 3. Determine the advertising budget 4. Convey the message 5. Evaluate and select media 6. Create advertisements 7. Assess impact

Personal selling as a career

1.Many people love the flexible lifestyle and schedule. They are evaluated on the results they produce, so as long as they meet or exceed goals, they experience little day to day supervision. 2.Additionally, their job has lots of variety which is attractive to people. 3. It can also be a very lucrative career 4. Sales people are frontline emissaries for their firm and are very visible too management, making it easy for them to get promotions.

Desire

3rd stage of the AIDA model, after the firm has piqued interest of its target market, the goal of the subsequent IMC messages should have the consumer move from "I LIKE IT" to "I WANT IT".

Advertising

A paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future. Advertising is not free, someone has paid with money, trade, or other means to get the message shown. Secondly, advertising must be carried by some medium, television, radio, print, the web, t-shirts, etc.. Third, legally, the source of the message must be known or knowable, fourth, advertising represents a persuasive form of communication designed to get the customer to take some action. This is the most VISIBLE form of marketing communications so much so that people think of marketing and advertising synonymously. It can be difficult as consumers can screen out messages that aren't relevant to them.

Aided Recall vs Top-Of-Mind awareness

Aided recall is when consumers indicate they know the brand when the name is presented to them. Top of mind awareness is the highest level of awareness that occurs when consumers mention a specific brand name first when they are asked about a product or service(Harley Davidson when asked about motorcycles). Manufacturers and retailers build this with catchy names, exposure through advertising, and images/symbols.

Emotional Appeals

Aims to satisfy consumers' emotional desires rather than their utilitarian needs. These appeals therefore focus on feelings about the self. The key to a successful emotional appeal is the use of emotion to create a bond between the consumer and the brand. Mot common types of emotional appeals used: -Fear/Safety -Humor -Happiness -Love/Sex -Comfort -Nostalgia

Encoding

Role of the transmitter, it means converting the sender's ideas into a message which could be verbal, visual, or both. A picture can be worth a thousand words, but the most important facet of encoding is not what is sent, but what is received

Evaluate and Select Media

step 5 in designing and executing an ad campaign, the content of an advertisement is tied closely to the characteristics of the media that firms select to carry the message. Media planning is the process of evaluating and selecting the Media Mix. Media Mix = The combination of the media used and the frequency of advertising in each medium that will deliver a clear consistent compelling message to the intended audience.

Contests

type of sales promotion, refers to a brand sponsored competition that requires some form of skill or effort.

Rebates

type of sales promotion, which are a particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer in the form of cash. Many products like consumer-electronics offer significant mail-in rebates. Firms get lots of value from rebates because they generally boost sales but hardly anybody actually applies for them

Product Placement

when marketers use this, they have to pay to have their product included in nontraditional situations like a scene in a movie or tv show.

Franchising market entry strategy

A contractual agreement between a firm the franchisor, and another firm or individual, the franchisee. This contract allows the franchisee to operate a business using the name and business format developed and supported by the franchisor. EXS are McDonalds, Starbucks, etc.., this method contains lower risks and requires less investment but it has limited control over the market operations in the foreign country, its potential profit is reduced because it must split with the franchisee, an once the franchise is established, there is the threat that the franchisee will break away and operate as a competitor under a different name.

Distribution center vs Fulfillment centers

A distribution center is a facility for the receipt, storage, and redistribution of goods to company stores may be operated by retailers, manufacturers, or distribution specialists. -Fulfillment centers instead of shipping to stores, are used to ship directly to customers(Amazon)

Ship merchandise to stores

A method of delivering merchandise to consumers, Shipping merchandise to stores from a distribution center has become increasingly complex, to handle this problem, centers use sophisticated routing and scheduling computer systems that consider the locations of the stores, road conditions, and transportation operating constraints to develop the most efficient routes possible. This allows stores to be provided with accurate Estimated arrival times

Deliver merchandise directly to customer from fulfillment center

Amazon's subscription two day shipping has changed customers delivery expectations, as a countermeasure, retailers of all sizes now offer free expedited shipping. Another concern is how the merchandise may be delivered to customers in the future. Driverless vehicles and drones are currently being tested as well as other new methods

The Transmitter

An agent or intermediary with which the sender works to develop the marketing communications; for example, a firm's creative department or an advertising agency. They are responsible for encoding the message

BRIC countries

Brazil, Russia, India, and China, the largest and fastest growing of the developing countries with over 40% of the world's population. Likely to be the source of the most market growth, and companies are paying high attention to these countries. Changes in technology hav been a driving force for growth in global markets.

Similar product or service with minor adaptations

Campbells with soup in China and Russia. Glocalization can also be when firms standardize their products globally but use different promotional campaigns to sell them.(Pringles changing flavors for different countries)

Strategic alliance

Collaborative relationships between independent firms though the partnering firms do not create an equity partnership; they do not invest in each other. EX = Spotify and Uber

Advantages of direct store delivery

Direct store delivery gets merchandise to the stores faster, and is used for perishable goods(meat and produce), items that help create the retailers image of being the first to sell the lates product, or fads. Some manufacturers provide delivery direct store delivery to retailers to ensure that their products are on shelves.

Assessing global markets

Firms must assess the viability of carries potential market entries using 4 sets of criteria to assess a country's market: 1) Economic analysis 2) Infrastructure and technological analysis 3) Governmental actions or inactions 4) Sociocultural analysis

Totally new product or service

The level of economic and cultural tastes also effect global product strategy because they rate to consumer behavior, an example is Heinz introducing banana ketchup in the phillipines.

The communications channel

The medium—print, broadcast, the Internet—that carries the message. The media chosen must be appropriate to connect the sender with the desired recipients

Samples

Type of sales promotion that offers potential customers the opportunity to try.a product before making a buying decision. One of the most costly sales promotions, but one of the most effective

Designing marketing channels

When a firm is just starting out or entering a new market, they typically dot have the option of designing the bed marketing channel structure meaning they can't choose from whom it buys, or to whom it sells(New companies typically can't land in the big retailers). All marketing channels take the form of a direct channel, an indirect channel, or some combination of the two.

Economic analysis using metrics

First criteria for assessing a global market, the greater the wealth of the people in a country, general the better the opportunity a firm will have in that particular country. A firm conducting economic analysis of a country market must use 3 major economic factors using well established metrics such as the general economic environment, the market size and population growth rate, and real income. To determine the market potential for its particular product, firms should use as many metrics as it can obtain.

Flows of the marketing channel

Flow 1: Customer to store Flow 2: Store to buyer Flow 3: Buyer to manufacturer Flow 4: Store to manufacture Flow 5: Store to distribution center Flow 6: Manufacturer to distribution center and buyer

Target Marketing: Segmentation, targeting, and positioning

Global STP is more complicated than domestic because firms considering global expansion have much more difficulty understanding cultural nuances of other countries. Also subcultures within each country must also be considered, and consumers often view products and their role as consumers differently in different countries. When a firm identifies its positioning within the market, it must then decide how to implement its marketing strategies using the marketing mix.

Online Marketing

Made up of websites, blogs, and social media

Distribution centers vs Direct store delivery

Manufacturers can ship directly to retailers stores, or to its distribution centers. The ultimate decision is usually up to the retailer and depends on the characteristics of the merchandise and the nature of demand. To determine, retailers consider the total cost associated with each alternative, and the customer service criterion of having the right merchandise at the store when the customer wants to buy it. Advantages of distribution center

Trade agreements

Marketers must consider the trading agreements or trading bloc to which a country belongs. These are intergovernmental agreements designed to manage and promote trade activities for a specific region and they consist of those counties that have signed a particular trade agreement. Exs are the European Union(EU) NAFTA, CAFTA, ASEAN. The EU represents the highest level of integration across individual nations; the other vary in integration levels.

Exchange control

Refers to the regulation of a country exchange rate, the measure of how much one currency is worth in relation to another. A designated agency in one country(the central bank) sets the rules for currency exchange. When the dollar falls it has a twofold effect: for firms that depend on imports for raw materials and inputs, the cost of doing business goes up, but buyers in other countries find costs of U.S. goods much lower than before. Prices are nearly almost lower in countries of origin. Marketers must rives their pricing strategies to reflect current international conditions.

Flow 1(Customer to Store)

Sales associate at best buy scans UPC or RFID and customer receives a receipt.

Flow of merchandise through marketing channels

Similar to the flow of pertinent decision variables expect orders arrive from customers one at a time and go out in relatively small quantities. 1) Sony to Best Buy's distribution centers or 2) Sony directly to stores 3) If the merchandise goes through distribution centers, it is then shipped to stores 4) And then to the customer 5) Or fulfillment center ships to customer

Feedback Loop

allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly. This can take many forms: a customer's purchase of the item, a complaint or compliment, the redemption of a coupon, or rebate, a tweet about a product etc..

Informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase. Can help to determine some important early stages of a product's life cycle, particularly when consumers have little information about the specific product or type of product. Retailers use informative advertising to tell their customers about an upcoming sales event or the arrival of new merchandise.

Viral Marketing program

one that encourages people to pass along a marketing message to other potential consumers

Pretesting

part of step 7 in designing/executing an ad campaign, Refers to assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do.

Tracking

part of step 7 in designing/executing an ad campaign, includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium

Globalization

refers to the processes by which goods, services, capital, people, information and ideas flow across national borders.

Direct marketing channel

there are no intermediaries between the buyer and seller. Typically the seller is a manufacturer(carpentry business selling its bookcases through its own store). The seller can also be an individual. When the seller is another business(Boeing selling to JetBlue), the marketing channel is still direct, but in this case the transaction is a business to business one.

Indirect marketing channel

when one or more intermediaries work with manufacturers to provide goods and services to customers. In some cases only one intermediate might be involved. Automobile manufacturers often use this where dealers act as retailers. Wholesalers are more common when the company does not buy in sufficient quantities to make it cost effective for the manufacturers to deal directly with them.

Advantages of delivering to distribution center

1)More accurate sales forecasts because merchandise can be fed to retailers as they need it. 2)Distribution centers enable the retailer to carry less merchandise in the individual stores which results in lower inventory investments(they need to carry less extra merchandise as back up stock). 3) It is easier to avoid running out or having too much stock in a store because merchandise is ordered from dist center as needed. 4) Retail store space is typically much more expensive than distribution center space and they are better equipped to prepare merchandise for sale it is more effective to store and prep merchandise here. Distribution centers aren't appropriate for all retailers, if a retailer only has a few outlets the expense of a distribution center is probably unwarranted. Also if outlets are concentrated in metropolitan areas, merchandise can be delivered by the vendor directly to all stores in on area economically.

Analyzing governmental actions

3RD criteria for assessing a market, these can significantly influence firms' ability to sell goods and services because they often result in laws or other regulations that either promote the growth of the global market or close off the country and inhibit growth. TARIFFS(duty) are taxes levied on imports and are used to make imported goods more expensive and help domestic producers, but can also be used to penalize another country for unfair trade practices . QUOTAS designate a minimum or max quantity of imports that can be brought into a country(levels depend on annual consumption and production rates). Tariffs artificially raise prices and lower demand and quotas reduce the availability of imported merchandise, they benefit domestic producers.

Analyzing sociocultural factors

4th criteria for assessing a market, understanding another country's culture is crucial to the success of any global marketing initiative. Culture exists on two level: Visible artifacts(behavior, dress, symbols, physical settings, ceremonies) and underlying values(thoughts processes, beliefs, and assumptions). Visible artifacts are easy to recognize, but it is often harder to understand the underlying values of a culture(Porsche's failure with Chinese advertising). Another means of classifying cultures distinguishes them by the importance of verbal communication, contuse like South Korea and china focus more on nonverbal cues than what is written down(U.S.). Overall, culture effects all aspects of consumer behavior, why people buy, who is in charge of buying decisions and how, when, and where people shop.

Franchising

A popular and economically significant type of marketing channel that can be either direct or indirect. It is a contractual agreement between a franchisor and franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor. Top franchise opportunities are determined by financial strength, stability, growth rate, and size of the franchise system. In a franchise contract, the franchisee pays a lump sum plus a royalty on all sales in return for the right to operate a business in a specific location. The franchisee agrees to operate according to outlets set by the franchisor. Franchisor typically provides assistance in locating and building the business, developing products or services sold, training management, and coordinating advertising. To maintain the franchise's reputation, the franchisor makes sure all outlets provide the same level of quality. Franchise systems combine the entrepreneurial advantages of owning a business with the efficiencies of vertical marketing systems that function under single ownership.

Choosing a global entry strategy

After a firm concludes its assessment analysis of the most viable markets for its products and services, it must then conduct an internal assessment of its capabilities, including its access to capital, the current market it serves, its manufacturing capacity, its proprietary assets, and the commitment of its management to the proposed strategy, all of these contribute to the success of a market expansion strategy. Many firms follow a progression with which they start with the least risky strategies and move to riskier strategies. The different approaches ranked from least to most risk are: -Exporting -Franchising -Strategic Alliance -Joint Venture -Direct Investment

Purchasing Power Parity

Another frequently used metric of overall economy, this is a theory that states that if exchange rates of two countries are in equilibrium, a product purchased in one will be the same in the other if expressed in the same currency. The Big Mac INDEX is a novel metric used to assess the relative buying power among nations suggesting that exchange rates should adjust to equalize the cost ion a basket of goods and services wherever it is bought around the world. These metrics are used to understand the relative wealth of a particular country but may not give the full picture because they only incorporate solely material output.

Global Pricing strategies

Determining selling price in a global market is difficult, many counties still have rules governing the competitive marketplace including those that affect pricing. In most European countries retailers can't sell below cost and in others they can't advertise "before" prices. Other issues such as tariffs and quotas, antidumping laws, and currency exchange policies can also affect pricing decisions. Competitive factors do effect pricing, but prices must be adjusted to reflect the local pricing structure. Currency fluctuations effect pricing strategies.

Just In Time(JIT) Inventory systems

Developed by Toyota in the 1950s to avoid delivery conflicts, also known as quick response inventory systems. They are inventory management systems that deliver less merchandise on a more frequent basis than in traditional inventory systems. The firm gets merchandise just in time for out to be used in the manufacture of another product or for sale when the customer wants it. This works especially for sports teams who want to wear their teams gear immediately after big victories.

Marketing Channel adds value

Each participant in the channel adds value(consumer goes to the store and buys a steak, she needs to cook it, also needs a stove, she relies on a stove maker for the stove who must by raw materials from suppliers to make the stove, if the stove maker is not located near the consumer, the stove must be transported to where the consumer is )

Marketing Channel management affects other aspects of marketing

Every marketing decision is affected by and has an effect on marketing channels. When products are designed and manufactured, how and when the critical component ents reach the factory must be coordinated with production. The sales department must coordinate its delivers promises with the factory or distribution or fulfillment center. Additionally, advertising and promotion must be coordinated with those departments that control inventory and transportation, there is no faster way to lose creidiilty with customers than to promise deliveries or run a promotion and then not have the merchandise when the customer expects it.

Flow 4(Store to manufacturer)

In some situations, the sales transaction data are sent directly from the store to the manufacturer, and the manufacturer decides when to ship more merchandise to the distribution centers and the stores. In some situations when merchandise is reordered frequently, the ordering process is done automatically, bypassing the buyers. By working together, the retailer and manufacturer can better satisfy customer needs

Making information flow through marketing channels

Information flows from the customer to stores, to and from distribution centers, possibly to and from wholesalers, to and from product manufacturers, and then on to the producers of any components and the suppliers of raw materials.

Choosing a global marketing strategy

Just like any other marketing strategy, a global marketing strategy includes 2 components: Determining the target markets to pursue and developing a marketing mix that will sustain a competitive advantage over time.

Customer store pickup

Method of getting merchandise to customers, retailers that can offer the option of allowing customer to purchase online and pick up in store will benefit, as customers who come in to pick up their orders will often buy additional products. For retailers to be successful at this, they need to invest in technology that enables order allocation systems to locate every item in stock so as to fulfill the order in a timely manner. Retailers must ensure that products available online are also in stock in store. Retailers must equip themselves with MOBILE TASK MANAGEMENT to deliver outstanding customer experiences. This technology is a wireless network and a mobile device that receives demand notification and enables a speedy response. For this option to be successful, the retailer must be able to move the product along its supply chain smoothly with the intention of delivering a single order to an individual customer.

Same Product or service

Most typical method of introducing a product outside a home country is to sell the same product or service in other countries(Apple selling iPhones)

Exporting

Producing goods in one country and selling them In another, this entry strategy requires the least financial risk but also allows only a limited return to the exporting firm. Global expansion often begins when a firm receives an order for its product or service from another country, in which case it faces little risk because it has no investment in people, capital equipment, buildings, or infrastructure.

Evaluating Market Size and Population Growth Rate

One of the metrics for economic analysis, Growth is never equally dispersed, Today many less developed countries are experiencing rapid population growth while many enveloped countries are experiencing either zero or negative population growth. The countries with the highest purchasing power today may be less attractive in the future for many products and services because of stagnated growth. The BRIC countries are likely to be the source of the most market growth. Another important aspect off thsi relates to the distribution of the population within a particular region , whether the population is located In urban or rural areas, determining where and how products can be delivered. Long supply chains are needed to reach rural areas in less developed countries which add to a company's costs(India, even though they are moving towards urban)

Evaluating the general economic environment

One of the metrics for economic analysis, in general, healthy economies provide better opportunities for global marketing expansion. The relative level of imports and exports is an important metric to use. Trade deficits = country imports more than it exports(can signal the potential for greater competition from foreign producers) Firms would prefer to manufacture in a country that has a trade surplus( Exports more than it imports) because it signals a greater opportunity to export to more markets. For U.S. exporters, a weak dollar means greater demand for these products in foreign countries because they can sell at a lower price. It is very important to understand the general economic environment but it is equally as important to understand the economic metrics of market size and population growth rate

Evaluating real income

One of the metrics for marketing analysis, firms can make adjustments to an existing product or change the price to meet the unique needs of a particular country market. In settings which consumers earn very low wages, the market is known as the bottom of the pyramid meaning there is a large impoverished population that still needs and wants consumer goods but cannot pay the prices the the fewer, wealthier consumers in developed nations can. Pricing adjustments must be made in countries with low real incomes, price is not the only factor that companies can adjust to appeal to lower incomes.

Analyzing Infrastructure and Technological capabilities

Second criteria for assessing a global market, infrastructure is defined as the basic facilities, services, and installations needed for a community or society to function such as transportation and communication systems, water and power lines, and public institutions such as schools, post offices, and prisons. There are 4 key elements of a country;s infrastructure: TRANSPORTATION, DISTRIBUTION CHANNELS, COMMUNICATIONS, AND COMMERCE. There must be transportation to for goods throughout various markets(trains, roads, etc..), second, distribution channels must exist to deliver products in a timely manner and at a reasonable cost. Communications system must be sufficiently developed to allow consumer to find information about the products and services available in the marketplace, also the commercial infrastructure(legal, banking, and regulatory systems) allows markets to function.

Flow 5(Store to distribution center)

Stores also communicate with distribution centers to coordinate deliveries and check inventory status. When the store inventory drops to a specified level, more products are shipped to the store and the shipment information is shipped to the store computer system

Gross Domestic Product(GDP)

The most common way to gauge the size and market potential of an economy, it is a standardized metric of output. this is the most widely used of these methods, and it is defined as the market value of the goods and services produced in a country for a given year. Gross National Income(GNI) is equal to this plus the net income earned from investments abroad(minus any payments made to nonresidents who contribute to the domestic economy). These metrics are used to understand the relative wealth of a particular country but may not give the full picture because they only incorporate solely material output.

Flow 2(Store to buyer)

The point of sale(POS) terminal records the purchase information and electronically sends it to the buyer at Best Buy's corporate office. This sales information is incorporated into inventory management systems and used to monitor and analyze sales and decide to reorder more of a product, change a price, or plan a promotion, buyers also send information to stores about overall sales for the chain, ways to display the merchandise, upcoming promotions and so on

Flow 3(Buyer to manufacturer)

The purchase information from each store is aggregated by the retailer as a whole, which creates an order for new merchandise and sends it to the manufacturer. The buyer, Best Buy, may also communicate directly with the manufacturer(Sony) to get info, negotiate prices, shipping dates, promo events, or other merchandise related issues

Global product or service strategies

There are 3 potential strategies: 1)Glocalization- Sell the same product in both the home country and the new country 2) Sell a product or service similar to that sold in the home country but include minor adaptations 3) Sell totally new products or services The strategy a firm chooses depends on the needs of the target market, the level of economic development and as well as differences in product and technical standards help determine the need for and level of product adaptation. Cultural differences such as food preferences, language, and religion also play a role in product strategy.

Global distribution strategies

These networks form complex value chains that involve wholesalers, exporters, imports, and different transportation systems. These additional intermediaries typically add costs and ultimately increase the final selling price of a product, creating content pressure to simplify distribution channels wherever possible. The number of firms with which the seller needs to deal with to get the merchandisee to the consumer determines the complexity of a channel and in most developing countries, manufacturers must go through many types of dist channels to get their products to end users who often lack adequate transportation to to shop at large areas or malls.

Direct Investment

Typically for financially sound firms, these require a firm to maintain 100% ownership of its plants, operation facilities, and offices in a foreign country often through the formation of wholly owned subsidiaries. This strategy has the most risk including the loss of its operating or initial investments, but can also provide the most reward. With this strategy none of the potential profits must be shared with other firms and the firm has complete control over operations. Can typically flow the other way from more to less developed countries.

Universal product Code(UPC) and Radio frequency identification device(RFID)

UPC tag is the black and white bar code found on most merchandise, it contains a 13 digit code that indicates the manufacturer of the item, a description of the item, and information about special packaging and promotions. Radio Frequency identification is a tiny computer chip that automatically transmits to a special scanner all the information about a containers contents or individual products.

Hofstede's Cultural Dimensions

Used to avoid cultural issues, it is used to shed more light on underlying values of a culture and consists of 6 dimensions: 1) Power Distance = Willingness to accept social inequality as natural 2) Uncertainty avoidance = Extent to which society depends on orderliness, consistency and structure to address situations in everyday life 3) Individualism = Perceived obligation to and dependance on groups 4) Masculinity = The extent to which dominate values are male oriented, lower means less gender division, higher means men dominate 5) Time orientation = Short versus long term, countries who value long term orientation value Long term commitments and are willing to accept a longer time horizon for product introduction 6) Indulgence = Extent to which society allows for the gratification of fun and enjoyment needs or whether it checks and regulates such pursuits

Flow 6(Manufacturer to distribution center and buyer)

When the manufacturer ships the products to the distribution center, it sends an ADVANCED SHIPPING NOTICE, to the distribution center. This is an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment. The center then makes appointments for trucks to make the delivery at a specific time, date, and loading dock. When the shipment is received at the distribution center, the buyer is notified and authorizes payment to the vendor

Joint Venture

formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared. In addition to sharing financial burdens, a local partner offers the foreign entrant greater understanding of the market and access to resources such as vendors and real estate. Some counties require joint ownership of firms entering their domestic markets. Problems with this entry approach arise when partners disagree or if the government places restrictions on the firms ability to move its profits out of the foreign country and back to its home country.

Global Communication Strategies

the major challenge in developing a global communication strategy is identifying the elements that need to be adapted to be effective in the global marketplace. For instance literacy levels vary greatly across the globe(Brazil's is rising). Media availability also varies widely where some countries only offer state controlled media(china). Advertising and privacy regulations differ also leading to some contested choices. Differences in language, customs, and culture also complicate marketers' ability to communicate with customers in various countries. Language can be difficult for advertisers. To avoid language confusion, firms spend millions on developing brand names that have no preexisting meaning in any known language. Firms with global appeal can run global advertising campaigns and simply translate the wording in the advertisements and product labeling, wile other products require a more localized approach because of cultural and religious differences.

Value added by personal selling

Although it is very expensive(average cost of a B2B phone call is over $500), firms still use this method because it is worth more than it costs and it adds value by educating consumers and providing advice saving consumers time, making things easier for customers, and building long term strategic relationships with customers. This is typically used for very expensive items like houses or B2B sales, and selling teams are used to provide consumers with all of the technical information. Strong relationships are key to success, and salespeople are the best equipped to managing these relationships. The most successful salespeople are ones that build strong relationships with their customers, they take a long-term perspective.

ethical and Legal issues in personal selling

Although these issues are present in all aspects of marketing, these issues are particularly important for personal selling because it involves a one-to-one and often face-to-face encounter with the customer, making sellers' actions highly visible to customers and other stakeholders. Ethical and legal issues arise in 3 main stages: 1 = The relationship between the sales manager and the sales force 2 = Inconsistency between corporate policy(company) and the salesperson's ethical comfort zone(customer) 3 = Salesperson interaction with the customer To maintain trustworthy customer relationships, companies must take care that they respect customer privacy and respect the information comfort zone9the amount of info a customer is comfortable providing)

Mobile Marketing

An element of direct marketing, it is marketing through wireless handheld devices such as cell phones.

Handling reservations

An integral part of the sales presentation is handling reservations or objections that the buyer might have about the product or service. They can arise during each stage of the selling process, but are most likely to occur during the sales presentation, customers reservations usually will always relate to value such as that the price is too high for the level of quality or service. Good salespeople must know the types off reservations that buyers will raise and be able to anticipate and handle some. The best way to handle reservations is to relax and listen, then ask questions to clarify reservations

Rule of thumb methods

Another method of setting and allocating the IMC budget, these methods use prior sales and communication activities to determine the present communication budget. Although they are easy to implement, they have various limitations spread throughout the various methods which are: 1) Competitive parity = communication budget is set so that the firm's share off communication expenses equals its share of the market. It does not allow firms to exploit the unique nature or problems they confront in a market. If all competitors use this method to set communication budgets, their market shares will stay the same over time 2) Percentage-of-sales = The communication budget is a fixed percentage of forecasted sales. Limits: Assumes the same budgets used in the past or by competitors is still appropriate for the firm. Does not take into account new plans 3) Available budget= Marketers forecast their sales and expenses, excluding communication, during the budgeting period. The difference between the forecast sales and expenses plus desired profit is reserved for the communication budget. That is the communication budget is the money available after operating costs and profits have been budgeted. Limits: Assumes communication budget expenses do not stimulate sales and profit

The salesperson and the customer(Ethical Issue)

As the frontline emissaries for a firm, salespeople have a duty to be ethically and legally correct in all of their dealings with customers. Unethical behavior between salespeople and customers can deteriorate long term relationships. Formal guidelines on ethics can help, but the best way to ensure ethics is for sales managers to lead by example, if managers are known to cut ethical corners, it shouldn't surprise them that their salespeople do the same.

The Communication Process

As the number of communication media have increased, the task of understanding how best to reach target consumers has become far more complex. This process is made up of 6 components: 1) Sender(firm) 2) Transmitter(encodes message) 3) Communications Channel(Media) 4) Receiver(Consumer decodes message) 5) Noise from the environment 6) Feedback

Integrated Marketing Communications (IMC)

Consumers are not likely to come flocking to new products unless they are aware of them so marketers must determine how to communicate the value of a product and service. IMC represents the promotion dimension of the four P's and encompasses a variety of communication disciplines-advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media- in combination to provide clarity, consistency, and maximum communicative impact. IMC programs regard each of the firms' marketing communications as part of a whole. This integration of channels provides firms with the best means to reach the target audience with the desired message, and it enhances the value story by offering a clear and consistent message. There are 3 channels in IMC strategy: CONSUMER, CHANNELS OF COMMUNICATION, AND EVALUATION OF RESULTS

Marketing channel management/Supply chain management

Refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufactures, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right times as well as to minimize systemwide costs while satisfying the service levels their customers require . Marketing channel management adds value because it gets products to customers efficiently, quickly and at low cost. If a firm excutes everything correctly, they are still likely to fail if they cannot secure the placement of products in appropriate outlets in sufficient quantities exactly when customers want them.

Choosing the right medium

Each alternative has specific characteristics suitable for each situation. Television is used primarily for escapism and entertainment so most television messages rely on visual and auditory techniques. Radio is a good medium for grocery purchases or fast food because many consumers decide what to purchase either on the way to the or while in the store and many people listen to the radio in their cars. Advertisers can determine how effective their media mix has been using GRP. 1) TV - Wide reach, uses sound and video. Dis = expensive, lots of channels could increase awareness for competitors products 2) Radio - ADV = inexpensive, wide reach, selectively targeted. DISADV = No video, short exposure, less focus from consumers 3) Magazines - ADV = Very targeted, subscribers pass along DISADV = Inflexible, takes time for availability 4) Newspapers - ADV = Flexible, timely, localize, DISADV = expensive in some markets, short life span 5) Internet/Mobile - ADV =Linked to detailed content, highly flexible and interactive, specific targeting, DISADV = Becoming cluttered, ad may be blocked by software on computer 6) Outdoor/Billboard - ADV = Inexp, repeat exposure, DISADV = Not easily targeted, placement problems in some markets exposure time is short 7) Direct Marketing - ADV = highly personable, DISADV = Costs can vary depending on type of dm used, traditional media like mail is more expensive than newer media

Receivers Decode Messages Differently

Each receiver decodes a message in his or her own way, which is not necessarily the way the sender intended, senders often adjustst their message according to the medium used and the receivers' level of knowledge about the product or service. The sender has little, if any control over what meaning the individual receiver will take from the message.

Websites

Element of online marketing, firms have increased their emphasis on these and they use them to build their brand image, and educated customers about their products or services as well as where the can be purchased. They can also serve as Business resource centers providing lots of valuable information about a company. Many firms operate websites devoted to community building which offer an opportunity for customers with similar interests to learn about products and services that support their hobbies and share information with others. Visitors can also post questions seeking information and/or comments about issues, products, and services. Trying to be more interactive

Blogs

Element of online marketing, it contains periodic posts on a common web page. A well received blog can communicate trends, announce special events, create positive word of mouth, connect customers by forming a Community, allow the company to directly respond to customers' comments and develop a long term relationship with the company. By its very nature, a blog is supposed to be transparent and contain authors' honest observations which can help customers determine their trust and loyalty levels. Nowadays blogs are becoming more interactive as the communication between bloggers and customers has increased, they can also be linked to other social media

Action

Final stage of the AIDA Model, this is the ultimate goal of any form of marketing communications is to drive the receiver to a action. This corresponds to the "DO" part of THINK FEEL DO. The lagged effect is a delayed response to a marketing communications campaign, and it is when consumers don't act immediately after receiving a form of marketing communications. It generally takes several exposures to a campaign before a consumer fully processes its message, which makes measuring the effect of a current campaign more difficult

Wholesalers

Firms that buy products from manufactures and resell them to retailers; retailers sell products directly to consumers. Wholesalers have to convince retailers to stock their products. Suppliers often have to agree to the strict requirements of retailers like labeling and shipping requirements. Some retail chains can function as both retailers and wholesalers like Costco and Home Depot, they ac as retailers when they sell to consumers directly, and as wholesalers when they sell to other businesses such as building contractor or restaurant owners. When manufacturers like Avon sell to consumers directly they perform production as well as retail activities. They are prevalent in less developed economies in which large retailers are rare

Awareness

First stage of AIDA model, even the best marketing communications can be wasted if the sender doesn't gain the attention of the consumer first. Brand awareness refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service. It is the strength of the link between the brand name and the type of merchandise or service in the mind's of customers. There are several awareness metrics including aided recall and top-of-mind awareness.

Channels used in an Integrated Marketing Communications strategy

For any communications campaign to succeed, the firm must deliver the right message to the right audience through the right media, with the ultimate goal of profiting from long term customer relationships than just short term transactions. Reaching the right audience is becoming more difficult as the media environment grows more complicated. No single channel is necessarily better than another channel and the goal is to use the channels in conjunction so that the sum exceeds the the total of the individual channels. The proliferation of media have led firms to shift spending from advertisements to direct marketing, website development, product placements, and other forms of promotion. These channels can be viewed on two axes: passive and interactive(from the consumers perspective) and offline and online. The main channels are: 1)Advertising 2) Public relations 3) Sales promotinos 4) Personal selling 5) Direct Marketing 6) Online marketing

Frequency, reach, and Gross rating profits

Frequency = How often the audience is exposed to a communication within a specified period of time Reach = describes the percentage of the target population exposed to a specific marketing communication such as an advertisement at least once. Objectives are usually stated in terms of Gross Rating Points which re[resent (REACH X FREQUENCY). GRP measure can refer to print, radio, or television, but any comparisons require a single medium.

Web tracking software

Required for any assessing the effectiveness of any web based communication efforts in an IMC campaign, it measures how much time viewers spend on particular web pages, the number of pages they view, and how many times users click banner ads which website they came from, and so on. These can all be measured effectively using a variety of software such as google analytics

Regulatory and Ethical Issues in Advertising

In the US, the regulation of advertising involves a complex mix of formal laws and informal restrictions designed to protect consumers from deceptive practices. Many federal laws affect advertising, but sometimes state laws differ from federal law. The main federal agencies that regulate advertising activities are 1) Federal Trade commission = The PRIMARY enforcement agency for most mass media advertising. enforces truth in advertising laws, defines deceptive and unfair ads 2) Federal Communications Commission = Enforces restriction on broadcasting material that promotes lotteries, cigarettes, or perpetuates a fraud, as well as laws that prohibit or limit obscene language 3) Food and Drug administration = Regulates food, package labeling, defines terms like "light" and "organic" and requires disclosure statements, on food, medicine , etc.. Other agencies include the USPS and the Bureau of alcohol, tobacco, firearms and explosives. Advertising to children is regulated by the National Association of Broadcasters and the better business bureau's children's advertising review. Many state government and European restrictions are much more strict than the Curren US Federal restrictions.

Product focused advertisements

Inform, persuade, or remind consumers about a specific product or service.

Public Relations

Involves managing communications and relationships to achieve various objectives such as building and maintaining a positive image of the firm, handling or heading off unfavorable stores or events, and maintaining positive relationships with the media. PR activities support other promotional efforts by generating free media attention and general goodwill(get celebrities to wear your clothes). In recent years, the importance of PR has grown as the costs of other marketing communications have increased, and the influence has become more powerful as consumers become increasingly sketchy over paid advertising, PR media coverage is generally seen as more credible. Popular PR tools are event sponsorship(occurs when corporations support various activities) and Caste-Related marketing. Elements of a PR toolkit include Publications(brochures, etc..), Video and audio(PSA, programs), Annual reports, Media relations(press kits, news releases, speeches), Electronic media

Typical flow of manufactured goods

Manufactures ship to a wholesaler or to a retailer's distribution center or directly to stores. S

The sales Force and Corporate Policy(Ethical Issue)

Many face the issue of what they believe is ethical selling and what companies asks them to do to make a sale. Sales people as well as the company can both be held accountable for illegal actions that are sanctioned by employers(insurance example from book)

Sales Promotions in conjunction with other advertising or personal selling programs

Many of these like free samples or point of purchase(POP) displays, attempt to build SHORT-TERM sales, others like loyalty programs, contests, and sweepstakes, have become integral components of firms' long-term customer relationship management which they use to build customer loyalty. Sales promotion tools much like advertising can be focused on any channel member, if they are focused on end consumers = pull strategy, targets channel member = push strategy. Marketers must be careful when using sales promotions because they can lead to short erm benefits at the expense of long term stability. The goal of any sales promotion is too great value for the consumer and the firm, traditionally the role of sales promotion has been to generate short-term results while advertising has been to generate long term results.

Planning for and measuring IMC success

Marketers need to set strategic goal before they implement any IMC campaign, and after these are established, the budget can be set the marketing metrics for evaluation can be chosen to evaluate whether it has achieved its strategic objectives.

Inbound marketing and Trade

Marketing activities that draw the attention of customers through blogs, Twitter, LinkedIn, and other online sources, rather than using more traditional activities that require having to go out to get customers' attention, such as making a sales call.

Pull strategy

Marketing strategy targeted towards end consumers, the goal is to get consumers to pull the product into the marketing channel by demanding it

Push strategy

Marketing strategy targeted towards wholesalers/retailers, they are designed to increase demand by focusing on wholesalers, retailers, or salespeople. These campaigns attempt to motivate the seller highlight the product, rather than the products of the competitors, and thereby push the product to consumers(can use incentives like rewards to encourage retailers to sell these)

Mass and Niche Media

Mass Media = Channels include outdoor/billboards, newspapers magazines, radio, and television and are ideal for reaching large numbers of anonymous audience members Niche Media = Channels are more focused and generally used to reach narrower segments, often with unique demographic characteristics or interests.(Specialty tv channels and magazines like HGTV are examples). Direct mailers are examples of more targeted niche media and the internet has led to more opportunities through mass exposure own for niche media like amex business on WSJ

Traditional media

Method for measuring success using marketing metrics, when measuring IMC success, the firm should examine when and how often consumers have been exposed to various marketing communications. The firm uses measures of frequency and reach to gauge consumers' exposure to marketing communications. For most products and situations, a single exposure to a communication is hardly enough to generate the desired response

AIDA model

Often thought of as the THINK, FEEL, DO model. Consumers go through a series of steps before actually buying or taking some other action. There is not always a link between a particular form of marketing communications and a consumer's purchase. This model suggests AWARENESS leads to INTEREST, which leads to DESIRE, which leads to ACTION. Consumers always go through each of the AIDA steps to some degree but not always in the exact order(impulse buying)

The appeal

Part of the message, used by advertisers to portray products and persuade consumers to buy them, though advertising tends to combine the types of appeals into two categories: Informational, and Emotional Informational

The sales manager and the Sales force(Ethical Issue)

Sales managers must treat people fairly and equally in everything they do. With regard to the sales force, this fairness must apply to hiring, promotion, supervision, training assignment of duties and quotas, compensation incentives and firing. Federal laws cover most of these issues Equal employment laws make it illegal to discriminate on race, religion, nationality, sex or age.

Loyalty programs

Sales promotion that is specifically designed to retain customers by offering premiums or other incentives who make multiple purchases over time. These are growing in popularity

Interest

Second stage of the AIDA model, happens once the consumer is aware that the company or product exists, communication must work to increase the consumer's interest level. Consumers must be persuaded that it is a product worth investigating.

The message

Should convey the products ability to solve a problem that consumers face. Advertisers must remember that products and services solve problems, whether real or perceived. This must convey the products value proposition which is the unique value that a product or service provides to its customers, and how it is different from its competitors. Because it is difficult to convey a complex set of positive attributes in a time or space-constricted advertising message, firms often utilize an abbreviated value proposition using a unique selling proposition(USP) which is the common theme or slogan in an advertising campaign(Red Bull gives you wings) Good USP can communicate the most important unique attributes of the product or service and thereby becomes a snapshot of the entire campaign. The selling proposition communicated by the advertiser must be also meaningful to the consumer as well and sustainable over time, even with repetition.

Sales Promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays, that encourage the purchase of a product or service. These are typically designed as incentives for use in conjunction with other advertising or personal selling programs. These are typically designed to build short term sales like free samples and POP displays, others like contests and sweepstakes have become integral tactics of some firms CRM programs in efforts to build customer loyalty.

Determining the Advertising Schedule

Specifies the timing and duration of advertising, there are 3 types of schedules. 1) Continuous schedule = Runs steadily throughput the year, require steady level of persuasive/reminder advertising. EX = tooth paste 2) Flighting = Implemented in spurts, with periods of heavy advertising followed by periods of no advertising. Typically fluctuates for products whose demand fluctuates(eX = Easter candy) 3) Pulsing = Combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods(Airlines during spring break time)

Identify target audience

Step 1 in designing and executing an ad campaign, the success of an advertising program depends on how well the advertiser can identify its target audience. Firms conduct research to identify their target audience, then use the information they gain to set the tone for the advertising program and help them select the media they will use to deliver the message to that audience. It is very important for firms to keep in mind that their target audience MAY NOT BE THE SAME as their current customers

Generate and Qualify leads

Step 1 in the personal selling process, this is to generate a list of potential customers(leads) and assess their potential(qualify). Salespeople who already have an established relationship with a customer will skip this step, and it is NOT USED in Retail Settings as it can be seen as discrimination and you should not judge a book by its cover. It is vey important in B2B settings. Leads can be discovered by talking to current customers, doing internet research, or networking at events like trade shows, chamber of commerce meetings, or conferences. Leads can also be generated through Cold Calls and social media. After leads are generated, they must also be qualified by determining whether it is worthwhile to pursue them and attempt to turn them into customers. In B2B settings the cost of preparing and making a presentation are so substantial that the seller must assess a lead's potential. Considerations for qualification = Whether the potential customer's needs pertain to a product or service, and whether the lead can afford the offering.

Set advertising objectives

Step 2 in designing and executing an ad campaign, the objectives of an advertising campaign are derived from the overall objectives of the marketing program and clarify the specific goals that the ads are designed to accomplish. Generally, these objectives appear in the ADVERTISING PLAN- a subsection of the firms overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful. Advertising plans are crucial because they will later serve as the yardstick which advertising success or failure is measured. All advertising campaigns aim to achieve certain objectives: INFORM, PERSUADE, AND REMIND CUSTOMERS. Regardless of whether the advertising campaigns goal is to inform, persuade, or remind, each campaigns objectives must be specific and measurable.

Preapproach

Step 2 in the personal selling process, this occurs prior to meeting the customer for the first time and extends the qualifications of leads procedure described in step 1. Salespeople must conduct plans for meeting with the customer. The salespeople must try and learn everything possible about the customer. Salespeople should do additional research and use this research to establish goals for meeting with customer, it is important that the sales person knows ahead of time exactly what should be accomplished. It is offend a good idea to use role playing to practice the technique before the presentation wheree the salesperson acts out a simulated buying situation while a colleague acts as the buyer, afterwards it can be critiqued and adjustments can be made

Determine the advertising budget

Step 3 in designing and executing an ad campaign, the various budgeting methods for marketing communications also apply to budgeting for advertising. First firms must consider the role that advertising plays in their attempt to meet their overall promotional objectives. Second, advertising expenditures vary over the course of the product life cycle. Third, the nature of the market and the product influence size of advertising budgets. The nature of the market also determines the amount of money spent on advertising. Less money spent on advertising in B2B marketing than in B2C because personal selling is used more in B2B

Sales presentation and Overcoming Reservations

Step 3 in the personal selling process, once all the background information has been obtained and the objectives for the meeting are set, the salesperson is ready for a person-to-person meeting. During the first part of this meeting, the sales person needs to get to know the customer, get their attention, and create interest in the presentation to follow. The beginning of the presentation may be the most important part of the entire selling process because it is where the salesperson establishes where the where the customer is in the buying process. The salesperson must ask a series of questions to assess the customer's need for the product or service and adapt the presentation to match the customers need and stage in the decision process, salespeople must CAREFULLY LISTEN to the responses to these questions. Inexperienced salespeople believe that to be in control they must do all the talking which is wrong. After a good feel is gotten on the customer's position, the salesperson can use that knowledge to pitch the product and help solve the customers needs.

Convey the Message

Step 4 in designing and executing an ad campaign, in this step marketers determine what they want to convey about the product or service. First, the firm determines the key message it wants to communicate to the target audience. Second, the firm decides what appeal would most effectively convey the message. We present these decisions sequentially, but in reality they must be considered simultaneously.

Closing the Sale

Step 5 in the personal selling process, means obtaining a commitment from the customer to make a purchase. Many salespeople find this the most stressful part of the selling process. Although losing a sale is never pleasant, salespeople who are involved in a relationship with their customers must view any specific sales presentation as part of the progression toward ultimately making the sale or building the relationship. A no today can lead to a yes in the future. Good salespeople listen carefully to what potential customers say and pay attention to their body in order to achieve an earlier close

Follow-Up

Step 5 in the personal selling process, with relationship selling it is never really over, even after the sale is closed. Five service dimensions are used in this step 1)Reliability - Salesperson must deliver the right product on time 2)Responsiveness - Salesperson and support group must be ready to deal quickly with any issue, question, or problem that may arise 3) Assurance - Customer must be assured through adequate grantees that their purchase will perform as expected 4) Empathy - Salesperson must have good understanding of the problems and issues faced by their customers 5) Tangibles - Signal a product is of high quality, make sure it is physically and visually appealing The best way to eliminate a post sale problem is to check with the customer right after they take possession of the product or immediately after the service has been completed, this speed demonstrates responsiveness and empathy. Follow up efforts are VERY important

Create Advertisements

Step 6 in designing and executing an ad campaign,, after the advertise has decided on the message, type of ad, and appeal, its attention shifts to the actual creation of the advertisement. During this step, the message and appeal are translated creatively into words, pictures, colors, and/or music. The execution style for the ad will dictate the type of medium used to deliver the message. To demonstrate an image, tv should be used, to promote price, newspapers and radio should be use. When using multiple media to deliver the same message, they must maintain consistent and compelling message to the target audience. Although creativity plays a major role in the execution stage, advertisers must remain careful not to let their creativity overshadow the message. The execution style must match the medium and objectives

Personal selling process

Steps that must be followed for making a sale. Depending on the sales situation and the buyer's readiness to purchase, not all steps may be necessary, and the time required for each step varies with the situation. The 5 steps are 1) Generate and qualify leads 2) Pre-approach 3) Sales presentation and overcoming reservations 4) Closing the sale 5) Follow-up

Media Buy

The actual purchase of airtime or print pages, this is generally the largest expense in the advertising budget, these decisions must be made carefully. Television advertising is by far the most expensive

Advertising

The most visible of the IMC channels, this entails the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform/and or persuade members of a particular target market our audience about their products, services, organizations, or ideas. Advertising is extremely effective for creating awareness of a product and generating interest, but it does not require much action by consumers making it a passive technique. It is traditionally offline and passive but recently there is a surge to make it more online and interactive. Advertising must breakthrough the clutter of other messages to reach its intended audience.

Place

The third p in the marketing mix which includes all activities required to get the right product to the right customer, when that customer wants it. This is often overlooked because it happens behind the scenes

Personal Selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. It can take in various settings such as face-to-face, video teleconferencing, on the telephone, or over the internet. This is a very important channel in Business to Business settings. This is typically the most expensive channel compared to other forms of promotion, but it is the best and most efficient way to sell certain products and services, especially luxury goods.

Goals

These can be short-term, such as generating inquiries, increasing awareness, and prompting trial. They can also be long term In nature such as increasing sales, market share, and customer loyalty. Both should be explicitly defined and measured they constitute part of the overall promotional plan which is usually a subsection of the firm's marketing plan, another part of the promotional plan is the budget.

Direct Marketing

This is the IMC channel that has ereieved the greatest increase in aggregate spending, and it is marketing that communicates directly with target customers to generate a response or transaction. It contains a variety of traditional and new forms, traditional forms include mail and catalogs sent through the mail and also email and mobile marketing. Internet based technologies have had a profound effect on this channel. The increased use of customer databases like the use of credit and debit cards and loyalty cards, have enabled marketers to identify and track consumers over time and across purchase situations, which has contributed to the rapid growth of direct marketing. Mobile marketing is an element of this

Personal selling

This is the two way flow of communication between a buyer or buyer's and a seller, designed to influence the buyer's purchase decision. This can take place in various settings such as face toffee, the internet, teleconferencing or on the phone. Almost everyone is engaged in some form of selling. On a personal level, individuals sell their ideas or opinions to their friends."Death of A salesman" Willie Loman illustrates the loneliness of being a traveling salesman.

Trade Shows, Cold Calls, and Telemarketing

Trade Shows = Excellent forum for finding leads, where buyers who choose to be exposed to products and services of potential suppliers in an industry attend Cold Calls = A method of prospecting in which salespeople telephone or go to see potential customers without appointments. Salesperson is not able to establish customer's specific needs because the receiver is not expecting the call, and and may not be willing to participate Telemarketing = Similar to cold calling, but it always occurs over the phone. Cold Calls and telemarketing have become less popular over time, primarily because their success rate is fairly low, they can be expensive, and federal/state gov'ts are regulating the activities of telemarketers.

Sweepstakes

Type of sales promotion that offers prizes based on a chance drawing of entrants names, they do not require the entrant to complete a task other than buying a ticket or filling out a form. The key benefit of these is that they encourage current consumers to consume more if the sweepstakes form appears inside the packaging or with the product.

The receiver

Typically thought of as the consumer, this is the person who reads, hears, or sees and processes the information contained in the message, and/or advertisement. The sender hopes that the person receiving it will be the one for whom it originally intended. This person is responsible for decoding the message, which is the proves by which the receiver interprets the sender's message.

Impressions and Click through rate(CTR), and Relevance, and Return on marketing investment(ROMI)

Used to estimate reach the number of impressions is the number of times the ad appears in front of the user, while the click-through rate is calculated by dividing the number of times a user clicks on an ad by the number of impressions. Relevance describes how useful an ad message is to the consumer doing the search. Return on marketing investment Is calculated by Gross margin-Marketing expenditure/Marketing expenditure X 100.

Persuasive advertising

When a product has gained a certain level of brand awareness, firms use this to motivate customers to take action. This generally occurs in the growth and early maturity stages of the product life cycle, when competition is most intense, and attempts to accelerate the market's acceptance of the product. In later stages of the product life cycle, persuasive advertising may be used to reposition an established brand by persuading customers to change their existing perceptions of the advertised product

Cross-Promoting

When two or more firms join together to reach a specific target market. To be successful, the two products must appeal to the same target market and together create value for consumers.

Public Service advertising

a specific category of institutional advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups. Like institutional and product focused advertising, PSAs also inform, persuade, or remind customers, but the focus is for the betterment of society, as such, PSAs represent a form of social marketing defined as the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment. Due to the nature of PSA's, broadcasters often donate free airtime to them, also because they are often designed by top advertising agencies for nonprofit clients they are usually quite appealing. They are also required MANDATED airtime.

Institutional advertisement

a type of advertisement that promotes a company, corporation, business, institution, or organization. Unlike product focused advertisements, it is not intended to sell a particular product or service but rather to benefit an entire industry("Got Milk?"). A specific category of institutional advertising is public service advertising. PSAs focus on public welfare; generally they are sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups.

Search Engine Marketing

a type of web advertising whereby companies pay for keywords that are used to catch consumers' attention while browsing a search engine, Google AdWords, allows companies to measure the reach, relevance, and return on investment for each of the keywords that potential customers used during their internet searches

Objective and Task method

all methods of setting an IMC budget have advantages and disadvantages so no one method should be used in isolation. This method determines the budget required to undertake specific tasks to accomplish communication objectives. To use this method, marketers first establish a set of communication objectives, then determine which media best reach the target market and how much it will cost to run the number and types if communications necessary to achieve the objectives. This process- set objectives, choose media, and determine costs- must be repeated fort each product or service

Social media

an element of online marketing, it refers to online and mobile technologies that distribute content to facilitate interpersonal interactions=. 3 Most popular are youtube, facebook, and twitter. These allow consumers to review, communicate about, and aggregate information about products, prices and promotions. Social media also allows consumers to interact among themselves(form a community) as well as provide other like-minded consumers and marketers their thoughts and evaluations about a firm's products or services., it can help facilitate the decision process by encouraging need recognition, information search, alternative evaluation, purchase, and post purchaser reviews.

Noise

any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels. If there is a difference between encoding and decoding, it is probably due to noise

Reminder advertising

communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle. Definitely appears in traditional media like television or print commercials, but it also encompasses other forms of advertising. Many times this does not even give explicit details about a product, but it is meant to just remind consumers of its existence(Coke with McDonalds meal)

Informational Appeal

helps consumers make purchase decisions by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides. Well suited to the this type of product: By informing consumers about a potential source of its competitive advantage, including tangible features and images of science, the advertising copy directly deliver an informational, persuasive message.

Point of purchase displays

merchandise displays located at the point of purchase, such as the checkout counter in a supermarket. This is the most valuable re estate in the store because they increase product visibility and encourage trial.

Posttesting

part of step 7 in designing/executing an ad campaign, the evaluation of an IMC campaign's impact after it has been implemented. At this last stage, advertisers asses the sales and old communication impact of the advertisement or campaign.

Relationship selling

refers to a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties. Relationship-oriented salespeople work with their customer to find mutually beneficial solutions to their wants and needs.

Assess Impact Using Marketing Metrics

step 7 in designing and executing an ad campaign, the effectiveness of an advertising campaign must be asses before, during, and after the campaign has run. Uses pretesting, tracking and protesting. It can be difficult to asses the impact due to the many influences other than advertising on consumers choices such as the level of competitors' advertising, economic conditions in the target market, sociocultural changes, in-store merchandise availability, and even the weather. LIFT = additional sales caused by the advertising campaign

Puffery

the legal exaggeration of praise, stopping just short of deception, lavished on a product. EX = MATCH.com claims it leads to "better first dates" is puffery because "better" is subjective measure, if it claims it produces "more second dates" it must be able to back this claim up. This is determined by the FTC criteria that it "will not pursue cases involving obviously exaggerated or puffing representations, those that ordinary customers do not take seriously". The less specific the claim, the less likely it is to be considered deceptive

Public Relations

the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media. This tactic is also relatively passive in that consumers do not have to take any action to receive it. PR activities support the other promotional efforts by the firm by generating free media attention.

The Sender

the originator of the message in the communication process, this person must be clearly identified to the audience. Works with a creative department whether in house or from a marketing agency to develop communications