Business Chapter 6

- Cost Per Mil - Cost Per Click - Cost Per Action

3 most common ways online advertising is purchased

- Manufacturer to Consumer - Manufacturer to Retailer to Consumer - Manufacturer to Wholesaler to Retailer to Consumer Manufacturer to Agent to Wholesaler to Retailer to Consumer

4 basic channel options

Pop-Under Ad

A new window that loads behind the current window and doesn't appear until user closes one or more active windows

Pop-Up Ad

A new window that opens in front of the current one, displaying an ad

Publicity

A non paid form of communication that calls attention to your business through good media coverage

Advertising

A paid form of communication sent out by a business about a product/service

Rebate

A refund offered to people who purchase a product

The features

A salesperson will build the presentation around what?

Public Relations

Act of establishing a favorable relationship with customers and the general public

Sales Promotion

Act of offering an incentive to customers in order to increase sales

Wallpaper Ad

Ad that changes the background of the page being viewed

Trick Banner

Ad that looks like a dialogue box with buttons ; Appears like an error message or alert

Floating Ad

Ad that moves across the screen or floats above the page content

- Less expensive than TV promotion - Can be more certain you're reaching target market

Advantages of radio ads

Benefits

Advantages that could result from the features

Communicate with potential customers

Advertising helps small companies do what?

Distribution

An important component of supply chain management that involves the locations and methods used to make products/services available to customers

Getting the product to the market in a timely manner

An important component of the distribution face

Rational Buying Decision

Based on logical reasoning of customers

TV Ads

Best type of ads to reach a large number of people quickly

Manufacturer to Agent to Wholesaler to Retailer to Consumer

Channel in which: - Manufacturer doesn't get involved in selling - Selling handled by agent - Often used in international marketing

Manufacturer to Consumer

Channel in which: - Product can be sold by manufacturer directly to the consumer - No intermediaries - Most cost-effective - Sales opportunities are limited

Manufacturer to Wholesaler to Retailer to Consumer

Channel in which: - Reach a large market - Manufacturer can sell large quantities to wholesaler - Wholesaler stores and and sells smaller quantities to retailers - More intermediaries involved - Prices cane lower

Manufacturer to Retailer to Consumer

Channel in which: - Sales force can sell manufactured goods to retail stores - Retail stores sell goods to consumer - More expensive option - More sales opportunities

Cost Per Mil (CPM)

Charge to advertiser is based on exposure of the message to a specific audience ; Costs priced per thousand viewers

Cost Per Click (CPC)

Charge to advertiser is based on the number of user clicks on the ad

Cost Per Action (CPA)

Charge to the advertiser is added on the user completing a form, registering for a newsletter, of taking some other action that will lead to a sale

- What are you shipping? - Where is it being shipped?

Factors to consider in making transportation decisions

Banner Ad

Graphic image or animation displayed within a rectangular box across the top or down the side of the webpage

Visual Marketing

Involves the use of visual media to promote, sell, and distribute a product/service to a targeted audience

Safe and adequate space to protect the product

It's important that storage facilities along the channel provide what?

A single, direct channel

Most who own a service business have what kind of channel of distribution?

Directly to customers

Most whole own a service business sell services how?

Direct Channels

Moves the product directly from the manufacturer to the consumer

Features

Physical characteristics and capabilities of the product/service

Supply-Chain Management

The coordination of manufacturers, suppliers, and retailers working together to meet a customers need for a product/service

Channels of Distribution

The routes that products/services take from the time they're produced to the time they're consumed

Promotional Mix

The strategy created by adopting a blend of some, if not all, of the techniques

TV Ads

Type of ad that usually comes in the form of commercials and paid advertising

Online advertising

Type of advertising that's : - Cost effective - Easier for customers to get the info they need - Let's businesses interact with customers through blogs, e-newsletters, etc.

Indirect Channels

Uses intermediaries, people, or businesses that move products between the manufacturer and the customer

Telemarketing

Using the phone to market your product/service

- Help a business convey a positive image - Create a sense of awareness

What advertising should do for a business

Mailing lists for target markets

What are available for purchase for those using direct mail ads?

Excellent way to aim products/services at specific markets

What are magazine ads good for?

- Saves time - Lowers cost for buyers and sellers

What channels of distribution can do if you use the right ones

Rational and emotional buying motives

What customers are influenced by

Benefits they'll receive

What customers are mainly interested in

Highly creative and effective, but costly, ads

What do ad agencies produce?

Use advertising companies

What do larger companies generally do when it comes to advertising?

- Make products and sell them to other businesses - Distribute products broadly and use all possible channels of distribution

What do manufacturers do?

Interviewing the customer to determine his/her specific needs/wants

What does a needs assessment involve?

Needs, issues, and concerns

What does a salesperson need to identify about the customer?

Create a unique image

What does visual marketing do?

Build and identify in the minds of customers

What does visual marketing help do?

Clearly communicate your message and image

What should advertising do?

It's largely out of a business's control

What's bad about publicity?

On a page close to listing of business placing the ad

Where are phone directory ads?

Cost Per Action

Which type of charge do advertisers prefer for banner ads?

The salesman

Who conducts a needs assessment?

Salesperson

Who is the business to many customers?

To satisfy needs

Why do customers purchase goods and services?

- It's relatively inexpensive - Targets limited geographic area - Reaches large numbers of people

Why small businesses may choose to use newspaper ads

Press Release

Written statement meant to inform media of an event/product

Food, water, & shelter

Examples of basic needs

Agents, Wholesalers, and Retailers

Examples of indirect channels

Safety, simplicity, quality, reliability, economy, service, etc.

Examples of rational buying motives

- Contests - Free Sample - Frequent-Buyer Rewards

Examples of sales promotions

The fee you have to pay the station to air the commercial

Expenses for TV ads include what?

False

T/F : Manufacturers usually sell directly to customers

False

T/F : Publicity is always good

- Advertising - Publicity - Personal Selling - Sales Promotion

Techniques involved with promotional mix

Need for esteem

Example of complex needs

Personal Selling

Direct communication between a prospective buyer and a sales rep in which the sales rep attempts to influence the prospective buyer in a purchase situation

Can be annoying

Disadvantage to telemarketing

- Spamming - Pop-Ups - Flashy Banners

Disadvantages of online advertising are the excessive uses of what?

- Cannot include much info - May not project image you're trying to convey

Disadvantages of outdoor ads

- People looking in directory are already in search of a particular type of business - Not easy to persuade customers to try your business

Disadvantages of phone directory ads

- Purely audio - Listeners may not remember what the hear - May need professional help when developing the ad

Disadvantages of radio ads

- Very expensive - Reaches too broad an audience to be effective for most businesses

Disadvantages of television advertising

- Reach large audience, but much of that audience may not be interested in your businesses - Ad will compete with many others

Disadvantages to newspaper ads

Online Advertising

Easiest form of advertising to determine the effectiveness

Farmers Market

Example of a direct channel

If people read it

How can direct mail ads be effective?

In keeping the name of your business in a place where people can see it

How can outdoor ads be effective?

If your market includes those who use public transportation

How can transit ads be effective?

Physical Distribution

Includes not only transportation, but also storage and handling of products and packaging within a channel of distribution

Their company as well as their company's competition

Salespeople should be familiar with what?

- Giving away hats and t-shirts displaying company name and logo - Distribute pens, notepads, coffee mugs, etc. with company info

Self-promotion activities include

As customers try to meet upper-level needs

Selling skills become important when?

Spamming

Sending mass emails to internet users

Self-Promotion

Simple way to generate free publicity

Newspaper Ads

Single largest form of ads in the US