ARE-312 Exam 1 Study Guide

Personal Appeal Marketing

1 on 1 sales, usually involves asking for the purchase. Usually seen in higher priced categories like cars, houses, etc

The Value Proposition

A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased

Heuristics

A mental rule of thumb that leads to a speedy decision by simplifying the [decision] process

What is the goal when integrating communication and using multiple mediums to convey your message?

A unified voice, very difficult to achieve.

Mass Appeal Marketing

Advertising, Sales Promotions, Public Relations

Institutional Advertising

Advocacy advertising, Public Service Advertisements

Market is...

All the customers and potential customers with a desire for a product, and the capacity, willingness, and authority to obtain it

Buzz Appeals Marketing

Artificial word of mouth, Viral marketing, Guerilla Marketing, only works when customers believe the buzz is authentic

Hierarchy of Effects Sequence

Awareness -> Knowledge -> Desire -> Purchase -> Loyalty

Why is integrating communication so important?

Because no single medium dominates, so many media are necessary. The type of communication you focus on may depend on your target market.

Retail / Local Advertising

Build awareness about the businesses presence, functional by providing location, hours, etc.

Public Relations

Communication function that seeks to build good relationships with an organization's publics, including customers, stockholders and legislators.

Communication Strategy

Consumers see the variety of messages they receive from a firm... as a whole, as a single company speaking to them but in different places and different ways

Relationship Selling

Focus on establishing long-term relationships with repeat sales (brand loyalty)

Transactional Selling

Focus on immediate sales

Advertising

NON-PERSONAL communication an identified sponsor pays for that uses mass media to persuade or inform an audience, the key is NON-PERSONAL

Sales Promotions

Programs designed to build the interest in or encourage purchase of a product during a specific period. Giveaways, coupons, special events

What is considered to be the first modern marketing effort?

Quaker Oats, to convince humans to eat horse food

Communication Model/ Path

Source->Message->Medium->Receiver Encoding occurs between source and message Decoding occurs between medium and receiver

Integrated Communication

Strategic use of marketing communication through numerous different mediums

Product Advertising

TV commercials, magazine ads, brand placement

Target Marketing is...

The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts

Hierarchy of Effects

This marketing communication model, suggests that there are six steps from viewing a product advertisement (advert) to product purchase. The job of the advertiser is to encourage the customer to go through the six steps and purchase the product.

The amount of control the marketer has on each aspect of the promotion mix from least to greatest:

Word of Mouth, Public Relations, Direct Marketing, Personal Selling, Sales Promotion, Advertising

Advertising Campaign

a coordinated, comprehensive plan that carries out promotion objectives and results in a series of ads

Noise in Marketing

anything that interferes with effective communication

Benefits...

are what the customer gets when purchasing a service or good. Predominately qualitative and also are things people may disagree with.

Marketing is...

communicating value to increase demand for a product.

The key to marketing is to...

create needs

Demand is...

customers' desire for products coupled with the capacity to obtain them

Features...

describe a product or service. Often quantifiable and generally are the things no one disagrees with

Business success depends...

on communicating the value provided, or the benefits a customer receives from buying a good or service

Accuracy in Marketing

regards communicating what the marketer wants to have communicated

Want is...

the desire to satisfy needs in specific ways that are culturally and socially influenced

Utility is...

the measure of benefits received, the benefits are subjective to the individual

Need is...

the recognition of any difference between a consumer's actual state and some ideal or desired state

Only the promotion mix is (ideally)...

under the control of the marketer