Marketing Communication Exam
2 extremes for global marketing strategies
Global companies use STANDARDIZED global marketing, essentially using the same marketing strategy approaches and marketing mix worldwide Adaptive global marketing
Most international marketers suggest that companies should seek a balance between
Globally standardized strategies and local adapted marketing mix tactics
Personal selling disadvantages
High cost Labor intensive Limited "reach"
Direct marketing is ___, allowing buyers to create exactly the configuration of info, products, or services buyers desire and then order them on the spot
Immediate and interactive
Second major decision in international marketing
Deciding on internationalization - motives: global competition at home, stagnant local market, follow major customer, sell inventory, continue production - familiarity w/ foreign environments (regulations!) - company's preparedness: managers/staff, past experiences, gov support
6 major sales force management steps
Designing sales force strategy and structure Recruiting and selecting salespeople Training salespeople Compensating salespeople Supervising and motivating salespeople Evaluating salespeople
True or false: traditional direct marketing forms
Direct-mail marketing is rarely used today b/c it had been replaced by e-mail - false Marketers use both outbound and inbound telemarketing - true - outbound to sell directly to consumers and businesses - inbound toll-free numbers to receive orders from tv and print ads, direct mail, or catalogs
As an element of the promotion mix, the sales force is ________ and carrying out such activities as prospecting, communicating, selling and servicing, and information gathering.
Effective in achieving certain marketing objectives
Marketers tend to underuse PR or use it as an afterthought. PR has the power to ___ and ___
Engage consumers Make them a part of the brand story and it's telling
Online shopping
Even in small towns, not for city people only 73% of rural people buy online 30% of them are members of amazon prime Expensive to deliver $4 fee for delivery to rural address And, Denise of retail in little town America
Factors shaping the promotion methods 2) strategy
- "push"- to resellers, who "push" product (B2B) - "pull"- to customers, create demand, pull product downstream (B2C) - hybrid - push and pull
Factors shaping the promotion methods 1) nature of the method
- advertising: massive reach, can be repeated, attractive BUT costly & no interaction - PS: personable, LT relations, BUT MOST expensive - sales promotion: include to buy, BUT short lived - PR: believable, BUT underestimated - digital: target to segment, interactive, growing
6 major decisions in international marketing
1) evaluating the global environment - international trade system - economic environment/market attractiveness - political/legal environment - cultural environment 2) deciding on internationalization 3) which markets to go? - evaluation of countries - company's capacity 4) market entry strategy - exporting - joint venture - direct investment 5) marketing program, the 4Ps 6) organization
Marketers use mobile marketing to engage customers anywhere, anytime during the ___
Buying and relationship-building processes
Personal selling advantages
Customer attention Customized message/service LT relation Interactive Close the sale (you get paid)
What are the 5 promotion mix tools used by marketers to communicate customer value?
Advertising PR Personal selling Sales promotion Direct and digital marketing These tools are used to engage consumers, communicate customer value persuasively, and build customer relationships
Online/digital domains
B2C: business to consumer (e-commerce) - most common B2B: business to business C2C: consumer to consumer C2B: consumer to business - product info, place orders, complaints Blogs: > 30m Social media - online communities. Cos use them - low cost customer engagement - measurable - risk: user/consumer controlled. Bad info travels fast
Marketers should work to measure the returns on their sales promotion investments What is the most common time to perform the evaluation
Before, during and after a promotion
For sellers, direct and digital marketing are powerful tools for building ___ and ___
Customer engagement Close, personalized, interactive customer relationships
Direct marketing
Digital (web) and non-digital (catalogs, mail, tel., etc) a) independent (Amazon, netflix) b) or (mostly) part of multi-channel (office depot) % of retail sales growing faster
Spurred by the surge in Internet usage and buying, and by rapid advances in ________, ________ has undergone a dramatic transformation.
Digital tech and direct marketing
Firms seeking immediate response from targeted individual consumers and consumer communities use ______________________ marketing tools to engage consumers and cultivate relationships with them.
Direct and digital
A company may use the promotion mix, also called its marketing communications mix, to ___
Engage customers Persuasively communicate customer value Build customer relationships
With companies becoming more market-oriented, the sales force plays a key role in ________ and __________________________.
Engaging customers Developing and managing profitable customer relationships
First major decision in international marketing
Evaluating the global environment A) international trade system - restrictions - tariff, quota, non-tariffs product regulations - institutions - GATT in 1947: reduce tariffs - WTO in 1994: liberalization and enforcement - economic communities/free trade agreement - EU- 27 (w/out UK) members, half billion consumers - NAFTA in 1994, increased US exports by 140% - re-negotiated 2018: USMCA ratification B) economic environment/market attractiveness - economies (industrial structure) - subsistence - product and consume agriculture - raw material exporters (Saudi Arabia's oil) - industrializing- 20% manufacturing, rising middle class - industrial- major producers, investors and traders - income distribution - depends on Econ development (more common in Econ environment) C) political/legal environment - attitude toward foreign MNCs - stability- for long term investment - monetary controls- for hard currencies - growth of counter-trade: non-cash, barter - US: 400,000 cos do non-cash trade - >20% of world trade is counter trade D) cultural environment - impact of culture on marketing - cannot disregard - sometimes must adapt (Disney in Europe) - globalization and national culture- Americanization!
PR
Purpose: company/brand image, region (VisitPA.com), social cause, etc. Tools: community events (Pittsburgh race), press release, co. "Materials/things", social media, blog, lobby Sometimes similar to advertising Appeal to public - vulnerability PR (dominos pizza)
Direct and digital marketing
involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
Viral marketing
the digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends
Important decisions for strategy
1) objective - inform: during product introduction - persuade: when market is competitive - remind: maturity: retain/sustain loyalty 2) budget - not easy task. Methods: - affordability- small business, BUT under-spending - % of sales- simple, BUT promotion is source of sales, not result! - competitive parity- disregards CO's niche - objective-and-task - depends on objective, difficult (cause-effect)
How do companies use online marketing?
1. Create website - corporate/branded site: info - marketing site: info, sell 2. Ads/promotions - search ads. Most web shopping starts with search 3. Networks - existing networks - 77% claim found customers on Facebook - start own network (Nike) 4. Email-fast growing > 92% of cos. - target marketing; risk spam - high ROI: $40 to $1 - best in digital marketing 5. Blogs - over 40% of cos blog - 92% claim getting customers
Managing the sales force
1. Structure - depends on product line/mix - geography/territory - sales rep per area: fixed responsibility, less travel cost (sporting goods, real estate) - product- SR's product competency; many reps per customer (product reps at hospital) - customer- for large customers (auto producer or WM - dedicated customer relation 2. Size/composition of sales force- depends on account - outside: in the field - service existing accounts and build new ones - inside: by telephone $ internet - continuous contact - support field reps and offer tech support - some customers prefer electronic communication (less time consuming) - growing in importance (EDI) - team: for complex accounts (P&G w/ CVS) - drawbacks: SR's evaluation and reward
Which of the following statements is true regarding the promotion mix?
Advertising is a personal form of marketing communication - false Personal selling is not used to engage customers - false Direct and digital marketing cannot be used to target individual consumers - false Sales promotions are long- term incentives to encourage the purchase or sale of a product or service - false The entire marketing mix must be coordinated for greatest impact - true - although the promotion mix is the company's primary engagement and communications activity, the entire marketing mix-promotion and product, price and place-must be coordinated for greatest impact
Evaluation calls for evaluating the communication and sales effects of advertising and other brand content before, during, and after it is placed and measuring _____________________.
Advertising return on investment
Roles of sales rep
Advocate of employer- negotiate on behalf of seller Advocate of client Work w/ client to solve problem and build relation - directly w/ client for industrial (non-consumer) products (medical equipment) - directly w/ client for household services (real estate) - w/ re-sellers for consumer products (Nike, Heinz, Kraft) possible conflict w/ marketing: PS typically represent customers first, marketing people focus on product, brand, 4Ps
Advertisinf strategy: the message
Capture attention and engage, believable, beneficial Today, it is entertaining, advertainment
What are the 3 major factors changing the face of today's marketing communications?
Changes in consumers Changes in marketing strategies Sweeping changes in digital tech
Integrated marketing communications must deliver company and brand messages that are ___
Clear, consistent, and compelling
Depending on the type of promotion, a marketer develops and implemented the sales promotion program by using 3 key promotion tools
Consumer promotion Trade promotion Business promotion
Sales promotion campaigns call for setting sales promotion objectives. In general. Sales promotion should be ___
Consumer relationship building
Social media has many pluses, but on the down side, ___. This makes social media difficult for marketers to control
Consumers largely control social media content On the plus side, social media is targeted and personal, interactive, immediate and timely, and cost effective
Benefit of direct and digital marketing for buyers
Convenient, easy and private
The internet and digital age have given marketers a whole new way to ___
Create customer value Engage customers Build customer relationships The internet and digital age have fundamentally changed customers' notions of convenience, speed, price, product info, service and brand interactions
Although the fast-growing digital marketing tools have grabbed most of the headlines lately, ___ are very much alive and still heavily used
Traditional direct marketing tools
Closing a sale with a particular customer is a short-term ________ orientation, but the selling process must also take a ________ orientation and look at the long term.
Transactional Relationship The steps in the selling process are transaction oriented - their aim is to help salespeople close a specific sale w/ a customer But in most cases, the company is not simply seeking a sale. Rather, it wants to engage the customer over the long haul in a mutually profitable relationship
Digital media to seller
Use online communities to identify trends, prospects Online dialogue w/ buyer throughout process Use multimedia (chat, conferencing, video)
Digital selling
Using online/Social media technologies
___ selling requires listening to customers, understanding their needs, and carefully coordinating the whole company's efforts to create lasting relationships based on customer value
Value
Which of the following statements is true regarding social media marketing?
Very few companies use social media for marketing - false Social media can be used for real-time marketing - true - due to the rapid growth in social media usage, there has been a surge in real-ziti me marketing, allowing marketers to create and join consumer conversations around situations and events as they occur Social media cannot be targeted or personalized - false There are very few niche online social media networks - false Social media is not interactive - false
Third major decision in international marketing
Which markets to go? - evaluation of countries: geographic, demographic, economic, political, legal, ease of doing business - company's capacity- depends on SWOT (export or licensing)
True or false: global marketing environment today
A free trade zone is an area where products are trade free - false Since the world has become a global community, culture has become an unimportant consideration when conducting business in foreign countries - false Most nations are very similar in their political-legal environments - false Monetary regulations is no longer an important consideration in deciding whether to do business in a particular country - false The world trade organization (WTO) helps promote trade between nations - true - by reducing tariffs and other international trade barriers - also imposes international trade sanctions and mediates global trade disputes
What do marketers need to adjust when using an adaptive global marketing strategy
Adjust the marketing strategy and mix to each target market
A firm normally gets into international marketing by simply shipping out its goods. If it's international sales expand, the company will establish ___ with a sales manager and a few assistants
An export department
Each company must decide whether it wants to go abroad and consider the potential risks and benefits. Key areas of assessment include ___, ___, and ___ environments
Cultural Political-legal Economic
The biggest involvement in a foreign market comes through ________ of the development of foreign-based assembly or manufacturing facilities.
Direct investment
The market entry strategy that has the greatest amount of commitment, risk, control, and profit potential
Direct investment The main disadvantage of direct investment is that the firm faces many risks, such as restricted or devalued currencies, falling markets, or gov changes In some cases, a firm has no choice but to accept these risks if it wants to operate in the host country Direct investment also entails the greatest commitment, control, and profit potential
Most companies ___ when first deciding on a global marketing organization
Establish an export department And graduate to an international division
In ___ the company enters a foreign market by sending and selling products through international marketing intermediaries (indirect exporting) or the company's own department, branch, or sales representatives or agents (direct exporting)
Exporting
The simplest way to enter a foreign market is through ________.
Exporting
3 approaches to entering the international market
Exporting Joint venturing Direct investment
Traditional direct marketing tools
Face-to-face selling Direct mail marketing Catalog marketing Telemarketing Direct-response tv marketing Kiosk marketing
3 alternative ways an international division's operating units can be organized
Geographical organizations World product groups International subsidiaries
Which of the following statements regarding sales promotions is correct?
In the current economy, consumers have become more deal oriented - true - consumers are demanding lower prices and better deals. Sales promotion can help attract today's more thrift-oriented consumers Sales promotions are offered only to consumers - false Sales promotions offer buyers long-term incentives to purchase a good or service - false The use of sales promotions has declined in recent years - false Sales promotions are not used by non-for-profit organizations - false
Digital marketing
Increase internet use: most people, around 88% US Types of online marketers: (online only) - content sites (Wikipedia) - E-tailer (Amazon) - portals (yahoo) - transaction (craigslist) In store and online - most, integrated marketing, more successful than online only Problem: abandoned "shopping cart" w/out completing purchase, 73% of online sales - low/non profit
___________ are the 2 economic factors that reflect the country's attractiveness as a market
Industrial structure and income distribution The international market must study each country's economy
Digital media to the buyer
Initiate and complete 60% of process w/out rep More control of process Get knowledge about seller, products, competitors Other buyer's feedback, reviews, advice
To deliver a clear and compelling message, each tool in the promotion mix must be carefully coordinated under the concept of ___
Integrated marketing communications
To prevent creating a communications hodgepodge, companies are adopting the concept of ___
Integrated marketing communications Guided by overall IMC strategy, the company works out the roles that the various promotional tools will play and the extent to which each will be used
Personal selling can be very effective in complex selling situations b/c it involves ___ interactions and engagement between salespeople and individual customers
Interpersonal Personal selling is the interpersonal arm of the promotion mix Salespeople can probe customers to learn more about problems, adjust the marketing offer, and fit each presentation to a customer's special needs
What is the toughest public policy issue now confronting the direct marketing industry ?
Invasion of privacy
Advertising strategy: the media
Issues: - reach (% people exposed) - frequency - impact (goal) Types: - tv, print, mail, outdoor, internet/digital (google search) - growth of "alternatives" Timing: all year, seasonal, time of week/day, pulsing
Which of the following statements about PR is correct?
It is difficult to integrate PR into social media - false PR is not used to engage consumers - false The lines between advertising and PR are becoming more blurred - true The impact of PR on public awareness comes at a much higher cost that advertising - false PR is used only to promote products - false
For most companies, digital and social media marketing will remain ___ to the marketplace that works alongside other approaches in a ___
Just one important approach Fully integrated marketing mix
Forms of direct marketing
Mail - generates 30% of DM - all kinds of products/services, including charities - tangible, personalized, high ROI (12:1) relatively low cost Catalogs - very popular - attractive, emotional connection w/ customers - motivate subsequent online purchases Telemarketing/telephone - outbound (to customers), inbound (from customers) - 15% of DM 65% of telemarketing in B2B - do not call legislation Direct response tv advertising & infomercials - tv ad w/ phone # or web - track viewers Home shopping channels - used entirely to sell (QVC) - sales: double amazon, prominent products, retailtainment Kiosks - product info and ordering In stores/hotels/ airports Mobile devices - in us: 77% smartphones (cell 95%) - for shopping: product info, price comparison - risk: ad-weary customers
The sales force sells products by engaging customers, presenting its offerings, answering objections, negotiating prices and terms, closing sales, servicing accounts, and ________.
Maintaining account relationships
Fourth major decision in international marketing
Market entry strategy 1. Exporting - indirect exporting- intermediaries (*first strategy*) - direct - export department on foreign distributors - more revenue, greater potential 2. Joint venture: contracting or joint ownership - contracting - licensing - license in return for royalties (coke) - less investment, but less control - contract manufacturing (Peer1 Imports) - management contracting (Hilton Hotels) - joint ownership- partnering w/ foreign (local) partner 3. Direct investment - own foreign subsidiaries; highest involvement - full profits, control, but - risks, conflict, expensive, currency risk
When designing global ___ strategies, companies must understand how culture affects each of its world markets, and how their strategies affect local cultures
Marketing
An international division's corporate staff consists of:
Marketing Manufacturing Research Finance Planning Personnel specialists
Fifth major decision in international marketing
Marketing program, the 4Ps - standardize: efficient/low cost, convergence - customize/adapt to local culture (McDonalds in France, 2nd most profitable market****) - Product: extension (black and decker), adapt (no beef in India) - promotion: culture sensitive - adapt communication - price: international costs increase price. Dumping: less than home price - distribution: between and w/in nations. Major variation in infrastructure
___ must be closely coordinated for maximum campaign effectiveness
Message decisions and media decisions These 2 steps go hand-in-hand in achieving success
Which form of direct and digital marketing do companies use to stimulate immediate buying, make shopping easier, enrich the brand experience, or all of these?
Mobile marketing
As marketers adopt richer but _____________________ to reach their diverse markets, they risk creating a communications hodgepodge for consumers.
More fragmented media and promotion mixes
Direct marketers know that, if left unattended, direct marketing abuses will lead to increasingly negative consumer attitudes, lower response and engagement rates, and calls for ___
More restrictive state and federal legislation
The new digital and social media have given birth to a _________________________.
More targeted, social, and engaging marketing communications model
The ___ are providing salespeople with powerful tools for identifying and learning about prospects, engaging customers, creating customer value, closing sales, and nurturing customer relationships
New digital tech
Which of the following statements is correct regarding marketing communications today?
New media formats have allowed marketers to reach smaller communities of consumers in more engaging ways - true (ex. Some programs, ads, and videos are being produced only for online viewing) Consumers have changed very little in the past 50 years - false Marketers are shifting toward mass marketing communication strategies - false Digital tech have not yet had an impact on marketing communications - false Tv advertising is growing rapidly - false
Companies that have traditionally operated offline have created their own online sales, marketing, and brand community channels. In fact, ___ retailing companies are having as much online success as their online-only competitors
Omni-channel
The concern about ___ is an area where consumers fear that unscrupulous snoopers will eavesdrop on their online transactions and social media postings, picking up personal info or intercepting credit and debit card numbers
Online and digital security
Ultimately, ___ tech are helping to make sales force more efficient, cost effective and productive
Online, mobile, and social media
Sixth major decision in international marketing
Organization - initially: export department - international division - subsidiaries - autonomous but part of the MNC - global corporation - geocentric (Microsoft)
In developing advertising strategies, marketers must make decisions regarding ___
Organizing the advertising function Adaptation to international markets
The firm's PR should be blended smoothly with other promotion activities w/in the company's ____
Overall integrated marketing communications effort
Which of the following statements about personal selling is correct?
Personal selling is a fairly new profession - false The role of personal selling is very consistent from company to company - false Salespeople sell; they do not have a role in creating value for the customer - false Many customers are unable to distinguish the salesperson from the company - true - to many customer, the salesperson is the company- the only tangible manifestation of the company that they see The sales force should work separately from other marketing functions - false
Marketing promotion also includes:
Personal selling- interpersonal relationship w/ customer Sales promotion- short term inducements to buy
A company wanting to do international business should consider factors in the ________________ environment such as the country's attitudes toward international buying, government bureaucracy, political stability, and monetary regulations
Political-legal
Direct marketing benefits to seller
Potential low cost Global reach Targeting and engaging Customized product (Dell)
Functions of PR
Press agency Product publicity Public affairs Lobbying Investor relations Development
Personal selling multiple step process
Prospecting and qualifying Preapproach Approach Presentation and demonstration Handling objections Closing Follow up
What is the first step in the personal selling process?
Prospecting during which sales people identify qualified potential customers
Personal selling process
Prospecting/qualifying - identifying new prospects (referrals, internet, cold call) Pre-approach- research client, products, current supplier, barriers Approach- meet for the first time, begin the relation Presentation and demonstration- solutions, listen to customer, efficient presentation - do not: aggression, unpreparedness, deceit, tardiness Objections- questions, clarification -> persuasion Closing the sale- agreement, inducements, writing order Follow up- client satisfaction, installation, servicing CRM- relations not transactions, client's on-going needs
Companies use ___ to build good relations with consumers, investors, the media, and their communities
Public relations
Promotional tools used to attract consumers
Rebates Coupons Price packs Samples
marketing communication to promote and protect product and brand sustained communication & engagement with target market - protect against competition/rivalry methods: advertising, sales promotion, personal selling, PR, direct and digital marketing
Recent changes: - less broadcasting, more narrowcasting - mass marketing -> segment/target marketing - IT: consumers are better informed - new media - reach and engage smaller targets - lower TV popularity (except for cable, sports, Spanish, y'all TV) - ^ internet, interactive and mobile - best: integrated (all channels) MC
Human resource management
Recruiting & selecting: important - 30% of SRs generate 60% of sales - qualifications: education, motivation, discipline, personality Selection methods: interviews, exams, simulations, personality, presentation skill, etc. Training - costly, but worthwhile - objectives: product, customer relation, PS process, etc. - E-learning (less costly)- web simulation Compensation- mix (fixed 60 + %, variable 30 + %) - recently more fixed- reduce quick-sale, emphasize CRM Supervision- electronic call plans: weekly/monthly (customers, times, tasks, etc.) A) time management- 30% administrative, 11% selling, 15% travel, etc. b) motivation- quotas, company support, promotion C) evaluation- for reward and feedback - many methods - client feedback is important
Factors shaping the promotion methods 4) evaluate effectiveness and ROI
Sales and profits- difficult to measure. 76% do not measure Effects: customer survey, attitudes Additional strategy decisions: organizing (in house or external agency), and international adaption International advertising- standardizing is efficient, adapting is necessary
After sales promotion campaign objectives are set, the next steps are __________________, and then __________________________.
Selecting tools Developing and implementing the sales promotion program
In considering when and how to use product PR, the best thing management should do is ___
Set PR objectives Choose the PR messages and vehicles Implement the PR plan Evaluate the results
Advertisers should first ___ to determine whether the advertising is supposed to inform, persuade, or remind buyers
Set clear objectives
What are the 4 important decisions made when developing an advertising program in order?
Setting objectives Setting the budget Developing strategy Evaluating effectiveness
Sales promotion
Short term incentives to consumers, resellers Growth- 60% marketing & for consumers Reasons: pressure to sell, competition, low impact of advertising, consumer price/value minded Objectives- consumers (short term buy) - resellers (endorse & shelf space) Methods: - to consumers- print or digital coupons, samples (most effective/expensive), price packs, free shipping, reward cards, rebates - to resellers- discounts, free supplies, trade shows, conventions, contests, gifts - important decisions: size of incentive, duration, method of delivery, and ROI evaluation
Advertising strategy: appeal/execution
Slice of life- "typical/normal" people Lifestyle- fits lifestyle (healthy living) Musical or personality- songs, celebrity endorsement Expertise or evidence (scientific, testimonial)
The fastest-growing sales trend is the explosion in ___ , which is using online, mobile, and social media selling
Social selling New digital sales force tech are creating exciting new avenues for connecting with and engaging customers in the digital and social media age
Strategies used to adapt product strategies to a global marker
Straight product extension Product adaptation Product innovation
Strong relationships with the salesperson will result in ___
Strong relationships with the company and it's products
4 sales force structures that companies use in sales force design are ___
Territorial Product Customer Complex
adapted global marketing
The company adjusts the marketing strategy and mix to each target market, bearing more costs but hoping for a larger market share and return
Factors shaping the promotion methods 3) advertising strategy - message and media
The message - capture attention and engage, BELIEVABLE, BENEFICIAL - today, it is entertaining, ADVERTAINMENT Appeal/execution - slice of life: "typical/normal" people - lifestyle: fits lifestyle (healthy living) - musical or personality: songs, celebrity endorsement - expertise or evidence (scientific, testimonial) New consumer generated messages The media - issues: reach (% of people exposed) Frequency Impact (goal) - types: TV, print, mail, outdoor, internet/digital (google search) - growth of "alternatives" - timing: all year, seasonal, time of week/day, pulsing
International market: extent of globalization
There are >60,000 MNCs: larger than country GDPs 8,000 US MNCs w/ 35m. Employees (FedEx, KFC, Boeing) 1/3 of world GDP is international Growth of international trade = 2 times GDP growth Advantages: - product and source diversification - growth: revenue & large scale efficiencies - a good source for a company's strength - new opportunities - global competitiveness
Marketers can engage in social media in two ways:
They can use existing social media or they can set up their own
main forms of online advertising
display ads and search-related ads
personal selling
done by all organizations past - stereotype - status Present - competent, account manager, educated, customer focused Important - more than advertising (in complex situations)
Joint venturing
joining with foreign companies to produce or market products or services Differs from exporting in that the company joins with a host country to sell or market abroad