MKTG 321 Final Exam Review
Product-related ethical issues
generally arise when marketers fail to disclose risks associated with a product or information regarding the function, value, or use of a product. Example: Chipotle's E.coli outbreak.
The power of the 9
when we see a 9 as customers, we feel like we are getting a really big deal, prices that end with 9 tend to outperform the products that don't
Pricing is actually not innovative.
False. Pricing is actually extremely innovative.
Demand based pricing
Hotels, airlines Football game in cstat, hotel across from kyle field prices go WAY up then a normal day Bar in barcelona sells drinks based on demand based pricing - throughout the night, depending on the popularity of certain drinks the prices go up and down - using pricing as a competitive advantage News talks about pricing of different toll roads in cities, based on traffic the prices can change
Pricing issues
In pricing, common ethical issues are price fixing, predatory pricing, and failure to disclose the full price of a purchase. Example: pharmaceutical companies have been accused of price gouging (pricing products at exorbitant levels, and taking advantage of customers who must purchase the medicine to survive or to maintain their quality of life). Example: bait-and-switch pricing schemes attempt to gain consumer interest with a low-priced product, but then switch the buyer to a more expensive product or add-on service.
Advertising
One tool we have in our promotion mix to generate conversation and create value for that customer. Includes things like traditional mass media such as television, radio, internet, newspapers, magazines, billboards, signs on mass transit and even advertising in video games. Also includes non traditional media that we can choose from as a marketer (This can be a wide variety of things like seeing advertisements on steps going up to a building or on benches on the side of a street).
Value =
benefits received - burdens endured (non-monetary and monetary)
YouTube
consumers far outnumber businesses on the platform, making it challenging for brands to control messaging about their products on the platform
Price...
does play an important role in how our customers determine their value perceptions. It is directly related to revenue generation and quantities sold. Key component of the profit equation (Profit = (quantity*price) - costs). Price is very important when it comes to the profitability of our business.
Digital media:
electronic media that function using digital codes - media available via computers, cellular phones, smart phones, and other digital devices that have been released in recent years
Goals that companies should implement:
eliminate the concept of waste, reinvent the concept of a product, make prices reflect the cost, and make environmentalism profitable.
Greenwashing
firms claim to protect the environment but fail to demonstrate their commitment.
Promotion issues
include false or misleading advertising and manipulative or deceptive sales promotions, tactics, and publicity. (greenwashing is a big issue here)
Mobile advertisements:
mobile advertisements are visual advertisements that appear on mobile devices. Companies might choose to advertise through search engines, websites, or games accessed on mobile devices. Mobile accounts for over half of digital advertising spending.
Mobile applications:
mobile applications, or 'apps,' are software programs that run on mobile devices and let users communicate, work, play games, or carry out tasks. Businesses release apps to help consumers access more information about their company or to provide incentives.
Mobile websites:
mobile websites are websites designed for mobile devices. Over 50% of e-commerce website traffic now comes through mobile devices.
Multimedia messages:
multimedia messaging (MMS) takes SMS messaging a step further by allowing companies to send video, audio, photos, and other types of media over mobile devices. The MMS market is estimated to be a $20 billion market. Approximately 98% of all US cell phones can receive MMS.
PWYW
pay what you want. Panera bread introduced turkey chili on menu and didn't put a price, just listed the product, they wanted customers when they ordered it to pay whatever they perceived it was worth, no one purchased it because they didn't know how much it cost - they were scared to purchase it Greentoe - pull up product, has a description but no price, you name your own price on the website, they send an offer to retailers they have partnerships with and the retailer gets back to them on if they can take this price or not - if you put in price it will tell you the likelihood that you will get the product at that price(meter).
Rentals
stability of this is helpful on the business side so we are starting to see this across more product categories. Rent the runway - buy memberships starting at $69 and you can rent different pieces of clothing each month, they have designer brands, the average member rents $34000 in a year, wear it and send it back, encouraging people to reuse products (used more for this reason = product sustainability).
Connectivity:
the ability for consumers to be connected with marketers along with other consumers
Accessibility:
the ability for marketers to obtain digital information
Interactivity:
the ability of customers to express their needs and wants directly to the firm in response to its marketing communications
Addressability
the ability of the marketer to identify customers before they make a purchase
Strategic philanthropy:
the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits. Strategic philanthropy involves employees, organizational resources and expertise, and the ability to link those assets to the concerns of key stakeholders, including employees, customers, suppliers, and social needs. It involves both financial and nonfinancial contributions to stakeholders, while also benefiting the company. Example: Wargy parker donates one pair of eyeglasses to the nonprofit VisionSpring for each pair that is sold.
Digital marketing:
the use of all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers
Steps in Developing Effective Marketing Communication
1. Identifying the target market 2. Determining the communication objectives Possible objectives: awareness, consideration,, purchase, retention, advocacy Creating objective statements: must be specific, what you want to do and how you're gonna do it, must be measurable (to see the effectiveness), must have a time frame 3. Designing a Message Where you identify what features, uses or benefits you want to communicate through this promotional activity 4. Choosing a Media Example: using social media Should be based on marketing research 5. Selecting the Media Source Example: which social media platform will you use Should be based on marketing research 6. Collecting Feedback SMART framework for each activity = specific, measurable, attainable, relevant, time based Example: anthropology ran an instagram campaign that encouraged uses to enter the competition for a chance to model for the brand, users had to post photos of themselves wearing anthropology clothes with a hashtag Objective statement: increase awareness of by 500 instagram followers through a social media campaign throughout the month of october
Two major trends have caused consumer-generated information to gain importance:
1. The increased tendency of consumers to publish their own thoughts, opinions, reviews, and product discussions through blogs or digital media 2. Consumers' tendencies to trust other consumers over corporations. Consumers often rely on the recommendation of friends, family, and fellow consumers when making purchasing decisions.
Marketing Ethics
A dimension of social responsibility that involves principles and standards that define acceptable conduct in marketing.
Public service activities
A way to generate conversation so that they are aware of you and your brand
Media-Sharing Sites
Allow marketers to share photos, videos, and podcasts but are more limited in scope in how companies interact with consumers Tend to be more promotional oriented Flickr, shutterfly, snapfish, and instagram Provides opportunities to gather information and promote brands Brands are turning to influencers to promote their products
Smart user at press releases:
Amazon. Anytime that they're going to introduce something new they send out a press release like when they introduced drones to deliver packages to try to generate conversations. When they were going to open up a new headquarters, they used a creative way and said they were looking for a place to open a new headquarters so if any cities were interested in having it there then they should contact amazon = generate conversation, thinking outside of the box to do this.
Community Relations
Avoiding harmful actions that could damage the community, examples include: pollution, urban sprawl, and exploitation of the workforce Example: Burlington Gives Back donates sample merchandise to local nonprofits and organizations in Burlington store communities nationwide. Example: century link hosts a food drive every summer to help local food banks that see a spike in traffics as a result of kids no longer receiving school lunches.
Social Responsibility:
An organization's obligation to maximize its positive impact and minimize its negative impact on society. In marketing, social responsibility includes the managerial processes needed to monitor, satisfy, and even exceed stakeholder expectations and needs. Ample evidence demonstrates that ignoring stakeholders' demand for responsible marketing can destroy customers' trust and even prompt government regulation.
Corporate identity materials:
Anything that you as a company are creating in terms of brochures or even websites, things you put out there to offer information about what you're doing in your company. Example: Texas A&M, they have a brand guide so that anyone in the university engaging in public relation activities, then everyone is using the brand in a consistent way. Tamu says their brand is their most valuable asset and they must all be brand ambassadors. Logos, licensing and trademarks, covid 19 toolkit, order stationary are different sections they can click on on home page. Creating value and maintaining consistency, using things in an integrated way (IMC).
Linking to social cause
Bring awareness to the cause and the brand/company. Example: Burger King did a commercial interviewing people about bullying at schools; in the store, they sold burgers that were "bullied" and customers complained - 95% of customers complained, asked if people would have saw him bullying that burger would they tell him to stop, they said yes, yet a child was being bullied at the restaurant at the same time and no one said anything - only 12% of customers stood up to the High School Jr being bullied - generated conversation. Example: McDonalds - in sweden, they post their signs with jumbled up letters in support of dyslexia, they wanted to bring awareness to the issue.
stakeholder orientation
Companies that consider the diverse perspectives of stakeholders in their daily operations and strategic planning are said to have a stakeholder orientation, an important element of social responsibility. Example: Panera's Day-End Dough-Nation where they donate leftover items to food banks, homeless shelters, and other charitable organizations to help those in need.
Payment plans
Example: Affirm - work with retailers and provide payment plans to their customers - over 900 fashion brands are offering some kind of flexible payment plans to customers Oscar de la renta - dress for $7200, starting at $659 a month with plan Not just on high end designers, also on lower priced items like GAP and banana republic They are beginning to raise concern - is it okay to make it easy for a customer to go into debt for an item like a dress, if they can't afford it then as marketers we shouldn't make it easy for them (ethically wrong); other people don't see a problem with it, no one is making them make that purchase - both sides can be fought but think of the implications as a marketer Used to just be for extremely large purchases but now we see it for everyday products.
Referencing and Anchoring:
Example: Apple website shows price comparison = this is done for a reason, if you were going to buy a MacBook Air and you looked at the site and you can see that just for $100 more you could have a 13" vs an 11" = you might consider it now that you've seen the comparison, without it you probably would of just bought the 11"; referencing and anchoring pricing strategies
Different levels of pricing: are more levels of pricing better? And if so how many should you have?
Example: Beer - a $1.80 and $2.50 version, the more expensive sold more (80%), if these two levels worked than maybe 3 levels could be even better Now we introduce a cheaper third version, $1.60, now 80% purchased the middle one and only 20% bought the most expensive, no one bought the cheapest Adding a third pricing level was not preferable in this example - we may have added the wrong anchor point Try again but now the third level is $3.40 = this time 85% purchased the 2.50, 10% purchased the premium and 5% purchased the cheapest one = in this scenario the third pricing level was preferable, great choice we just had to make sure we chose the correct anchors. Example: economist subscription plans, $59 for one, $125 for one, or $125 for both types of subscriptions = most people would choose the combo plan He reprinted it without the middle choice, and now the cheaper plan was more popular We are susceptible to influences because we do not know our preferences that well.
Sponsoring special events
Example: Burger King - at the Belmont Stakes, a very important horse race where American Pharoah, a horse that was about to win the triple crown (big deal), burger king paid the owner of that horse $150,000 just to stand next to him in his box for 2-3 minutes, he did that because they knew this horse was supposed to win, it was going to be a record thing, so there were probably going to be a lot of news cameras in that box, so they were willing to spend that money in hopes that when the cameras were panning by they would catch the burger king man and it would generate conversations. Example: fiji water was a sponsor for the golden globes and they were providing water to celebrities, so when celebrities got together to take photos the fiji water girl would photobomb; celebrities actually got really upset with fiji for taking their attention = people were talking a lot about the fiji water girl.
The tools need to be used in an integrated way - all should send out same message
Example: Central Market - different marketing activities integrated in their video Example: August 18, 2017 - Taylor swift removed everything from all her social media, unfollowed everyone, over next 6 days she posted random snake videos - her wiping everything generated conversation, then she generated more conversation by posting the random snake videos (kept conversation going), people came up with their theories, at the end of 6 days she announced her rebirth and announced new album with clean slate - all of this promotion was free, but she used it in an integrated way Example: McDonalds wanted to support international women's day so they flipped the M's on their signs and on social media flipped the logos along with the packaging and employee uniforms - all consistent
Example of odd and even pricing:
Example: Loreal Product Options: garnier fructis, redken, kiehl's Garnier - drugstores, redken - hair salons, kiehl's - high end stores like nordstrom They use odd pricing for garnier and redken For the high end product they utilize even pricing
Reference pricing
Example: Williams Sonoma Bread Maker - had it in catalog priced at $275, had trouble getting people to buy it, so they decided on the same page in the catalog they put a similar breadmaker worth $429 = as soon as they did this, the sales for the original breadmaker doubled, when they placed the more expensive one next to the cheaper one, it made the cheaper one look like a great value, but when it was by itself we couldn't make that judgement. This is called reference pricing.
price comparisons
Example: Yale study - a group of respondents were shown two sticks of gum that cost the same amount, one was green and one was blue, and they were given the money to make a purchase decision, 46% made the purchase. They ran it again and this time the green product was 0.62 and the blue was 0.64, this time 77% made the purchase = when the prices were similar they were inclined to defer their decision instead of actually making one, but then the price difference was enough to help people feel comfortable to make a decision; this can help us as a marketer because imagine we are selling two t shirts on our website, the only difference between the shirts is the crew neck and v neck, the cost for them is the same and they have the same quality and colors, if we fill out equation then the price should be the same for both shirts (a lot of people make this decision but it may not be the best), if two products are too similar they may choose to get neither, so you may want to charge a bit more for the v neck than the crew neck to help people make decisions, won't affect margin too much but may really influence if people purchase or not.
Personal selling:
Face to face selling, and traditionally this is what we think whenever we think of business to business marketing; Also seeing it a lot with consumer goods - especially beauty and health image related products (virtual parties).
Example
Fortnite - Battle Royale When this was introduced it was free, it got everyone playing it, within 11 months so many people were playing the game (the entire population of Mexico is roughly equal to the number of people), you did have to pay for battle passes If they would have made you pay for it from the beginning they would not have gained as big of a following They got consumers, and if you wanted to play well you needed the battle passes so this was how they made their money It is said they made $300 million dollars a month just off battle passes Would they have been as successful if they charged for the initial game? Or were they successful because of their pricing strategy?
Distribution issues
Serious ethical issues with regard to distribution include manipulating a product's availability for purposes of exploitation and using coercion to force intermediaries to behave in a specific manner. Example: channel stuffing, which involves shipping surplus inventory to wholesalers and retailers at an excessive rate, typically before the end of a quarter Another ethical issue that has become a worldwide problem is counterfeiting.
Left digit effect
The left digit can be very important in cultures where we read left to right Apple macbook price comparisons - 899 is doable, but 900 is not, so we list 899 to the left, makes us feel better
IMC
Integrated Marketing Communications (use the tools in an integrated way - when used together these tools send out a consistent, clear, and compelling company and brand messages)
Sales Promotion
Just one part of the promotion mix; very short term strategy, can't build loyalty off of coupons = won't help you build long term relationships. Sales promotions are good for certain things like generating trial. Example: Taco Bell - winner of their sweepstakes made a dress made out of Taco Bell wrappers and sent in picture of her eating taco in the dress - Taco bell had just opened up a wedding chapel in their taco bell in las vegas - she won.
prestige pricing
Kanye West t shirt, plain white, 100% cotton, no labels to identify brand, when he introduced it, within hours the product was out of stock - the retail price $120 - how is this possible? He set this price high because he's engaging in prestige pricing - he let people know it was special and unique so it was worth the money. Had nothing to do with calculating costs, margins, etc, it was set with the prestige pricing strategy in mind because they knew what image they wanted to project for the brand and the product
Example of creative advertising:
LL Bean put a flier in the newspaper (NY Times) - It says "just bring this outside" - goes with campaign called 'Be an outsider" - Used photochromic ink, so when you take it outside the special ink appears in the sunlight and it talks about the product. They were creative and made a newspaper ad fun.
Consumerism
The efforts of independent individuals, groups, and organizations to protect the rights of consumers. Rights include: the right to safety, the right to be informed, the right to choose, and the right to be heard.
Location-based networks
Location-based networks are built for mobile devices. One of the most popular location-based networks is Foursquare, which lets users check in and share their location with others. It introduced a new advertising network called Pinpoint specifically for marketers. Samsung galaxy, olive garden, and jaguar land rover are examples of companies that have used its new service.
Snapchat
Marketers are looking at snapchat as an opportunity to reach their young, highly engaged audience - brands like taco bell, sour patch kids, and birchbox have taken to snapchat to engage with their audience
Buzz Marketing
Marketing activities that marketers come up with but they take on a life of their own - they create buzz, they just take off; Example: Old Spice; old spice was a brand that was around for years and years, it was marketed towards an older target market and they wanted to attract a younger target market, so they had to reposition their brand. They did this by going on twitter and asked people what kind of man they want their man to smell like, Old Spice used the responses to create YouTube videos. Over 2 days, they posted over 100 YouTube videos, and in the 6 days following they had over 100 million followers on Youtube watching these, after this ran their sales increased by 106%. Example: In my feelings challenge, influencer came out with this video day after Drake released his album and it became so popular around the world; so many people recreated this video across the world, people would get out of their cars and start creating traffic so police had to get involved sometimes, like in Mumbai where the police tweeted about the danger the trend was causing with a video of a guy walking into a pole; it even reached children in schools so teachers made an educational poster based on the song "Kiki are you reading, are you writing.."
When setting price we think about:
Our costs - variable and fixed, we have to know all costs before we finalize our retail price Retail price $ Our margin (% and $) - difference between costs and retail price - what we actually make on the sale of a product Our break even point - how many units do we need to sale to break even given our costs and our retail price (should we increase our price or decrease our costs to increase our margin and lower our break even point) Identifying pricing strategy - take into account the role that consumer behavior/psychology plays in marketing - a lot of businesses will use multiple pricing strategies at one time
Major PR tools:
Press release, corporate identity materials, public service activities, product placement and gifts to celebrities, buzz marketing, sponsoring special events, and linking to social cause
Marketing ethics:
Principles and standards that define acceptable marketing conduct as determined by various stakeholders (including the public, government regulators, private-interest groups, consumers, industry, and the organization itself).
pricing transparency
Push for more pricing transparency due to lack of trust from dynamic pricing Everlane - website looks typical, they also offer transparent pricing though, they show what the product cost to make (good graphical representation to make it easy to understand), show materials, hardware, labor, duties and transport costs for one piece of clothing - trying to make customer trust them, show what their price is versus other competitors price for a sweater that cost the same amount to make (they do this for every product)
SMS messages:
SMS messages are single text messages of 160 characters or less. SMS messages can be used to send coupons to prospective customers
Examples of sales promotion
Samples, Coupons, Refunds, Premiums, Point-of-purchase displays, Contests, Sweepstakes
Social Media Marketing
Social media marketing enables firms to promote a message and create online conversations through multiple platforms Social media can be used to monitor target market competitors and understand the social and economic environment as a whole Social media has the ability to build campaigns that produce advocates and enthusiasts of a firm's products Example: Dodge uses social media to release product reasers and new to its engaged fans, the brand rewarded its most engaged social media fans by inviting a limited number to the unveiling of the 2018 Dodge Challenger SRT Demon
Example
Starbucks - wanted to increase the price of one drink size, which one would you increase the price on? Which sizes had the highest margin? Which size does starbucks make the most money off of? Starbucks makes more money when you buy the medium or the larger (margin higher), starbucks chose to increase the size of the small, the price difference is smaller so it may increase the likelihood of people buying mediums - use pricing to guide customers to more profitable products
Example of traditional mass media advertising: TV commercial
Super bowl TV commercial by Apple - Apple used this commercial to introduce a new product. They bought a minute and 30 seconds of ad time to run at the super bowl, they hired an ad agency to create commercial, but what ended up happening was the ad agency finished the commercial and showed it to the board, and the board hated it and refused to use it, they scrambled to sell back the time that they had purchased, but they were only able to sell about a minute of it, they still had 30 seconds of ad time left (worth about $800,000), Steve jobs disagreed with the board, he really liked the commercial and thought it was really cool, so he paid for the commercial himself and this ran; after this commercial ran, it was so random and out there, that immediately after all the news stations and talk shows were talking about this commercial - wondering what it was, what the product was like, etc - it was equivalent to $5 million in free publicity because it was talked about so much = Steve Jobs was pretty smart, he knew it would generate conversation. It was about the release of a new product, yet they never even showed the product.
Used interchangeably with demand based pricing
Surge pricing Real Time pricing Dynamic pricing Because of the popularity of this, there is a lot of discussion about the ethics of it - should a mac user browsing a travel website pay more than someone with a PC, or you're planning a spring break trip and you go online and find a trip that everyone can afford but then you go back to the website a few days later and the price is increased - all the data companies are collecting on you (they can see where you live from your IP address and information of people who live in those areas) and they use that information to guess what you can afford and that is the price that you receive, if you look at something twice they can know and raise the price because they know you really want it Example: Orbitz - travel company, they found Mac users will pay more for a hotel than windows users so they would make Mac prices 30% higher Example: Delta - they were charging their frequent flyers more for a ticket ($300), they did this because if you are a frequent flyer you are flying for business typically so you have to go on that flight - they knew these customers would have to pay regardless so they jacked up the price Masters of dynamic pricing: Amazon - they change their prices every 10 minutes based on the data they collect in real time, it does overtime increase their sales even though the price increases are small Dynamic pricing is good for increasing profits
Direct Marketing
Telemarketing, direct mail
Managing supply chains is one of the greatest difficulties of marketing ethics
True
Social media is a part of corporate communication and brand-building strategy
True
The results should be positive relationships with customers and increased financial performance. A direct association exists between corporate social responsibility and customer satisfaction, profits, and market value.
True
The most important feature of apps is the convenience and cost savings that they offer to the consumer
True.
When we as marketers look at price we take an accounting perspective of price and understand the symbolic value of the price with our customers.
True. Consumer behavior and psychology will go into determining the symbolic value. Customers do not always think rationally - have to try to get into their minds and understand the symbolic value. As marketers, we determine the price.
Supply chains require constant vigilance on the part of marketers as well as the need to anticipate unforeseen circumstances.
True. Example: Costco has lawsuits filed against them alleging it had sold farmed prawns from thailand that made use of slave labor.
Social responsibility activities can improve employee performance and customer loyalty to the organization. They can also generate positive publicity and boost sales.
True. Example: Post-it's 3Mgives program to contribute to education, community, and the environment in areas with 3M operations. Example: American Airlines partnered with the organization Stand up to Cancer to support cancer research, and they did a commercial about it with Bradley Cooper.
To remain competitive, companies are beginning to use mobile marketing to offer additional incentives to consumers
True. Example: Starbucks app
Price does not equal value
True. Price is only a part of value.
One of the most important benefits of e-marketing is the ability of marketers and customers to share information
True. Today's marketers can use the internet to form relationships with a variety of stakeholders, including customers, employees, and suppliers Example: IBMs digital assistant allows IBM customers to identify and digitally interact with key experts through a variety of platforms
Product placement and gifts to celebrities
Trying to get a product placed in a movie or in the video so that people see it, or you give gifts to celebrities in hopes that they're going to be wearing it when they're walking down the street and paparazzi takes a picture of them. Example: Kim and Kanye went to a wedding, Kim wore a lime green dress, but Kanye got more attention by wearing shoes that were way too small for him(look like slides) - this is what generated conversation; Kanye did not respond for a full week(this was smart he let them talk about it), then he says he did it intentionally because the shoes were similar to Japanese inspiration and that's the way they wear this type of shoe; he was just about to launch a new line of shoes for his yeezy line and this was one of them (he did not mention this to the public though), he did not have to pay a thing for promotion.
Even Pricing
Typically used to communicate quality $35 Example: Nike's website for mens golf shirts is all even pricing - $55
Odd Pricing
Typically used to communicate value $34.99 Example: Under armour has mix of odd and even pricing in their men's golf shirt section of the website - used to be all odd pricing, but over the past couple semesters they have begun introducing even pricing (may be testing which ones work better for them), they include .00 whereas nike just left the whole number with a dollar sign ($55.00) - why are they doing this when nike is not?
Subscriptions
Very good business model for a lot of companies. Menlo Club - for guys who don't like to shop, go onto site and fill out quiz on your style, pay $60 a month and they shop for you and send you clothes every month that you can keep. Amazon - buy la croix water once for $19.22, but if you purchase subscription it is the same price but you never have to order it again = very attractive to business because they will continue to receive $19.22 every month versus just once, the ease is attractive to the customer. BK Cafe Subscription - introduced $5 a month subscription for as much coffee as you want all month, if you purchase one cup its $1 - they didn't do this to make a lot of money but instead to get people into burger king to eat breakfast over competitors like mcdonalds or starbucks (get people into their store and hope that they will purchase other things).
Public Relations (PR):
Very powerful, but not easy to control.
Social network
a website where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication
Characteristics of online media
addressability, interactivity, accessibility, connectivity, control
The different tools that we have to use for our promotion decisions in the marketing mix:
advertising, personal selling, sales promotion, public relations, and direct marketing (these tools are referred to as the promotion mix)
Ethical issue:
an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical. Any time an activity causes marketing managers or customers in their target market to feel manipulated or cheated, a marketing ethical issue exists, regardless of the legality of that activity. Example: GT's Kombucha faced criticism for using misleading labels that claimed its fermented tea was nonalcoholic.
Podcasts:
audio or video files that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers Through podcasting, many companies hope to create brand awareness, promote their products, and encourage customer loyalty
Blogs:
short for "weblogs," these are web-based journals in which writers editorialize and interact with other internet users. Bloggers can post whatever opinions they like about a company or its products, although companies have filed lawsuits against bloggers for defamation, they usually cannot prevent the blog from going viral Many corporations have created their own blogs or encourage employees to blog about the company - this can help companies answer consumer concerns or defend their corporate reputations, drive web traffic, provide product education, and encourage loyalty Example: Bill Marriott maintains a blog called "Marriott on the Move"
Marketing citizenship:
the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders. Also defined as CSR (corporate social responsibility)
Control:
the customer's ability to regulate the information they view as well as the rate and exposure to that information
the most popular social networking site in the world Example: Doritos released 11,500 limited-edition rainbow chip bags in support of the LGBTQ community, only the chips were never available for sale. To receive a bag, customers has to donate a sum of $10 or more to the It Gets Better Project and post a supportive quote on social media using #boldandbetter. This not only engaged customers, resulting in 30x more Facebook shares than the brand's average, but also made Doritos brand appear more authentic to the public
Sustainability:
the potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies. Example: MorningStar farms uses advertising to promote its veggie patties, stating that eating less meat and more vegetable-based protein is good for consumer health and the environment.
Cause-related marketing:
the practice of linking products to a particular social cause on an ongoing or short-term basis (well-designed programs will increase sales and create feelings of respect and admiration for the companies involved). Example: BMW Ultimate Drive program involves specially marked BMWs that drive across the United States to increase breast cancer awareness and raise funds for breast cancer research.
Electronic marketing(E-marketing)
the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing Digital marketing and electronic marketing are often used interchangeably Etailing = online retailing
Press Release:
to hopefully create publicity, you have an event coming up or a new thing you have introduced that you want people to know about so you write up a press release, which is typically a one page write up of that event or thing you want to announce and you send it out to media such as news stations or radios and you hope and pray for slow news that day so that maybe they mention your event = not a lot of control. Often Times they are used to make announcements or say if something negative has happened you will send out a press release to address that. Example: Disney sent out a tweet, they wanted this tweet to be around the theme of Alice and Wonderland, it said "A very merry and birthday to you," they did this in Japan, when you translate this it actually says "Congratulations on a not special day," the day they tweeted this out happened to be the 70th anniversary of the US atomic bombing of Nagasaki. Disney sent out a press release to try to address their mistake. Celebrities use press releases if they're getting married, if they're getting divorced, etc.
top networking site for businesses and business professionals
Wiki:
type of software that creates an interface that enables users to add to or edit the content of some types of websites
Free shipping or lower prices?
vase for $18 with free shipping, or $15 plus $2.99 shipping = do you incorporate it into price or charge for shipping later? Consumers will view these very differently When ecommerce began it included a lower retail price and then add in cost of shipping Then came zappos - they were a bit of a disruptor, chose not to use this pricing strategy - they offer free shipping, this was their competitive advantage, they did make their retail prices slightly higher to incorporate the shipping price and then telling the customer that it was free Which option is the best way to go? It depends on your target market - what does your customer expect, what will your target market perceive the most value in? What will go on in the mind of the target market - the customer. May even depend on the product, for some the target market may feel differently
Price skimming:
we have a new product, we set a price really high at the beginning and then overtime we lower the price of the product (skim). Example: iPhone - classic example, this strategy is typical for products that are very expensive to make (typically high tech products or products that require a lot of research).
Price penetration:
when you're introducing the product, you start with a low price to try to penetrate the market and get a lot of people to purchase the product, overtime you will begin to increase the price