Marketing Final

"cost of goods sold"

- .75P - costs you .75 to produce each product

Where does advertising fit into the principles of marketing

- Promotion (4 P's) - one small part of promotion, just like it's one small part of marketing

What are some of the evolutions of advertising

- Romans had highways and "billboards" for travelers - industrial and transportation revolution (mid 19th century) when marketing started to be needed

Contribution Margin

- extra revenue that exceeds extra cost if you sell one more unit - .25P - gain .25 for each extra unit you sell

shared media

- overlap of earned and shared on social media - attracts audience because it's easier to make connections (new media)

3 requirements of traditional advertising

- paid message - identified sponsor - impersonal medium

Differences between New and Old media

- relative lack of control - effect on word of mouth - listening potential - measurement issues

What's an important thing to remember when promoting a product

- what you do is more important than what you say - if you don't make a good first impression it's hard to come back from it - Toothpaste: you get people to buy it (great) but if they don't enjoy the product they won't keep using it

Measurement issues in New vs. Old media

- when/how/why marketing works which makes it hard to measure - online is so new but social media will make it easier to measure this (advantage)

P&G Tremor

1. Identified "cool kids" in schools then sent them products to spread the word about the product 2. Switched to "cool moms" to send products because high school students are only around for so long

3 ways universities know if a student is coming to their college

1. If they're alumni children 2. How early they apply to University 3. If they have had an on campus visit

Challenges in reaching young adults in advertising

1. Less conventional media attention (print media) 2. Multi-tasking and Multi-media exposure (too many distractions- studying for 4 hours example) 3. Receptive to contemporary "media" events, sponsorships, etc, 4. Buzz-viral communication (word of mouth online)

What are some cons to Prime Time TV 30 second spot

1. Limited impact- impact on average is 0 2. Waste- people not in our market are exposed to your ads making them not effective 3. Inflexible- mostly seen in old media when a news paper goes to everyone and not a specific market

What are other issues that come with advertising

1. most new products fail 2. effects of ads is usually hard to measure 3. arbitrary burnets- budgets are oversimplified because advertising is so difficult to measure

What typically happens with ads trying to reach their audience

1. screened out 2. cluttered out 3. competed out

What century does traditional media come from

20th century

Percent of ad expenditures for New vs. Old in 2018

60% in old 40% in new

What movie unexpectedly became popular after media exposure by the people/word of mouth online?

Blaire Witch Project

CBS is the highest rated network for the past 9/10 years, so why can't they charge higher prices for partners?

CBS only attracts an older demographic so they can't charge higher prices because they don't have an outreach to young adults

____ links the purchase of an organization's products to support of philanthropic organizations favored by the target market. a.Cause-related marketing b.Charity-related promotion c.Selective demand promotion d.Promotion e.Charitable nonprofit marketing

Cause-related marketing

A sharing of meaning defines a. promotion. b. noise. c.interference. d.information. e.communication.

Communication

marginal cost in advertising

Extra cost associated with some kind of change (spending more money on advertising- how much extra money going out)

Combination of TV and Radio advertisement

Gives you the most bang for your buck - TV ads are expensive - radio ads echo TV ads/repeat first basic message for less

________ that can allow almost real-time measurement and evaluation should be embedded at the onset of a social media strategy. a.Strategic performance indicators b.Click-through rates c.Hashtags d.Key performance indicators e.Google Analytics

Google analytics

A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of a.stimulating demand. b.encouraging product trial. c.retaining loyal customers. d.creating awareness. e.identifying prospects.

Identifying prospects

Illusion VS. reality for advertising (or increase of)

Illusion- People will notice if we start advertising more Reality- out of the 3000 ads seen a day, a very minimum amount is actually noticed by their audience (think huge zit on your nose- you think everyone will notice but people will only notice if they want to or already know you/are invested in you)

What are some of the first brands when marketing started in mid 19th century

Ivory soap, quaker oatmeal, borden milk

How is advertising actually used/seen in the full picture/different parts of marketing

Marketing is like a tool box, and each aspect is a tool. - Advertising is like the first tool you think of (hammer- very small factor) - You can't use a hammer to solve all your needs (need a paint brush to paint, screwdriver for screws)

Listening potential in New vs. old media

New: lots of challenges to get information on market research but there's still potential

Effect on word of mouth in New vs. Old media

New: once online it becomes more popular which can be a positive or negative (multiple communication)

Relative lack of control in New vs. old media

New: social media has dialogue (multiple communications), space is shared with other markets, embarrassing things get out easier (news) Old: one way communication, environment is more controlled

earned media

Organizations earn the attention that they are getting (+/-) - news stories on TV or article in paper

Why at first glance marketing looks inexpensive example

Prime TV 30 Second Spot Cost- 400,000 Outreach- 20 million people = 2 cents per person BUT there's almost never that much impact/those 20 million may not all be your respective audience

Combination of TV media and Social media

TV media is still the biggest outreach and social media allows you to zero in on specific audiences

Why is there price discrimination in the 3 criteria for a student to go to a University

When a University knows that a student will most likely come to the college they will sometimes give them less scholarships because they know they have a higher chance of coming (give other people scholarships as incentive)

The fact that consumers tend to trust other consumers over corporations and often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions has fostered the growth of sites like a.Reddit. b.Google+. c.Tumblr. d.Yelp. e.Pinterest.

Yelp

A special form of licensing in which one company grants another company the right to market its product and name in accordance with its standards in exchange for a financial commitment is called a.franchising. b.a joint venture. c.a strategic alliance. d.direct licensing. e.contract manufacturing.

a franchising

An informed guess or assumption about a certain problem or set of circumstances is known as a.managerial intuition. b.a hypothesis. c.good research design. d.a description of the situation. e.a reliable guess.

a hypothesis

The feasibility and degree of globalization is determined by the a.degree of similarity among the various environmental and market conditions. b.laws of the nation. c.degree of adoption of Western culture. d.culture of the nation. e.degree of commitment by local managers.

a.degree of similarity among the various environmental and market conditions.

When products are introduced into one nation from another, acceptance is far more likely a.if there are similarities between the two cultures. b.if packaging is adjusted to match local preferences. c.when retailers are given incentives to push the products. d.if prices are set very low. e.when bribes are paid to local officials to aid distribution.

a.if there are similarities between the two cultures.

Location is important to a retailer because a.location determines the trading area from which the store must draw its customers. b.suppliers charge more to service stores in certain trading areas. c.a desirable location appeals to consumers' emotions. d.location is the major determinant of store image. e.convenient location is an essential customer service element.

a.location determines the trading area from which the store must draw its customers.

Buyers who focus on purchasing products that signify prominence and status are a.prestige-sensitive buyers. b.status-conscious consumers. c.price-conscious consumers. d.value-conscious consumers. e.socially-elite buyers.

a.prestige-sensitive buyers.

Although telephone surveys can be conducted very quickly, a major limitation is a.that only a small portion of the population likes to participate in telephone surveys. b.that few companies prefer this survey method. c.the expense compared to in-home interviews. d.the difficulty in asking probing questions. e.the ability to gain rapport with respondents.

a.that only a small portion of the population likes to participate in telephone surveys.

The amount of profit a channel member expects depends on a.what the intermediary could earn if it were handling a competing product instead. b.the amount of discounts for large orders provided by the producers. c.the number of channel support activities provided by the producers. d.the amount of effort required to carry the product. e.the type of distribution channels involved.

a.what the intermediary could earn if it were handling a competing product instead.

When a company promotes its position on a public issue, this is specifically referred to as ____ advertising. a.institutional b.issue c.product d.competitive e.advocacy

advocacy

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's a.location. b.decor. c.atmospherics. d.services. e.environment.

atmospherics

An advertising platform is the a.consumer advertising research conducted. b.basic issue or selling point that an advertiser wishes to include in an advertising campaign. c.objective of the advertising campaign, stated in precise and measurable terms. d.broad objectives of the advertising campaign. e.form in which the basic issues of the campaign should be presented.

b.basic issue or selling point that an advertiser wishes to include in an advertising campaign.

Designing research procedures that produce reliable marketing data means that a.sampling must be done in a completely random manner. b.others using the same procedure will get almost identical data. c.the procedure may give results that contradict other research studies. d.the procedure must give results that support the hypothesis. e.the procedure must not give results that contradict other research studies

b.others using the same procedure will get almost identical data.

Retailing is best characterized as a.arrangements whereby a supplier grants a dealer the right to sell its products. b.transactions in which the buyer intends to consume the product through personal, family, or household use. c.exchanges that take place only in a store or service establishment. d.large organizations that carry wide and deep product mixes. e.transactions in which the purchaser intends to use the product for resale or for business operations.

b.transactions in which the buyer intends to consume the product through personal, family, or household use.

The types of prices that appear most often in ads are ___, while the types of prices that occur least often in ads are ____ prices. a.sale; reference b.comparison; cost-plus c.discount; cost-plus d.bargain; premium e.reference; comparison

bargain; premium

How do inexpensive products advertise?

by getting people to buy and try their products - Toothpaste: you get people to buy it (great) but if they don't enjoy the product they won't keep using it

how do expensive products advertise?

by getting people to think about the product - Do I need or want this expensive car?

Pricing the basic product in a product line low while pricing products that go with the basic product at a higher level is called a.price skimming. b.price lining. c.captive pricing. d.premium pricing. e.bait pricing.

captive pricing

The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product. a.trial b.proposal c.overcoming objections d.closing e.approach

closing

Stealth Marketing

consumers are completely unaware that they are being marketed to

The federal government often uses ____ pricing when it grants defense contracts. a.markup b.cost-plus c.competition-based d.differential e.breakeven

cost-plus

Customer density and distribution are important factors in a.prospecting. b.establishing sales force objectives. c.creating sales territories. d.motivating salespeople. e.compensating salespeople.

creating sales territories

buzz marketing

cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities

Brands that are promoted through comparative advertising are most likely to be a.competing in a less competitive market. b.attempting to compete on a nonprice basis. c.market leaders. d.brands that are attempting to compete with market leaders. e.primarily services rather than tangible goods.

d.brands that are attempting to compete with market leaders.

One trend that has caused consumer-generated information to gain importance is a.the globalization of companies. b.the increase in consumer buying power. c.the recession. d.the increase of consumers using digital media to publicize their own product reviews. e.the increase in store brands.

d.the increase of consumers using digital media to publicize their own product reviews.

Has advertising increased or decreased in the total of promotion expenditures since 1980?

decreased*** slide 162

Research that is conducted to clarify the characteristics of certain phenomena to solve a particular problem is called ____ research. a.primary b.experimental c.exploratory d.descriptive e.secondary

descriptive

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume? a.Direct marketers b.Discount stores c.Department stores d.Traditional specialty retailers e.Warehouse showrooms

discount stores

One of the biggest mistakes a marketer can make when engaging in digital marketing is to a.focus on technology. b.focus on competitors' digital marketing efforts. c.focus on price. d.fail to devote sufficient resources to it. e.treat it like a traditional marketing channel

e.treat it like a traditional marketing channel

Why can companies benefit from mixing different forms of promotion (advertisement)

each form has different strengths and weaknesses so combining them can allow for more effective outreach

Public relations focuses on a.reaching the firm's target market. b.diminishing the image of rival firms. c.enhancing the image of the total organization. d.improving employee morale. e.boosting product sales.

enhancing the image of the total organization

the forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful ____ a critical part of a successful international marketing strategy. a.environmental analysis b.social audit c.political analysis d.regulatory analysis e.marketing analysis

environmental analysis

A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n) a.neighborhood shopping center. b.off-price mall. c.strip mall. d.factory outlet mall. e.lifestyle shopping center.

factory outlet mall

The final stage of the selling process is a.presentation. b.overcoming objections. c.following up. d.closing. e.trial closing.

following up

competed out ads

having to keep up with other companies and their marketing EX. auto insurance ads don't need to advertise because it doesn't help their sales but they do it bc everyone else is

Advertising is ____ and ____ but not as much as people think

important; powerful

As a result of the escalating use of digital media, some of the marketer's control over dispensing product information has been placed a.in danger. b.in the hands of the consumer. c.under the authority of the government. d.in the hands of the company's competitors. e.in the hands of the stockholders. Hide Feedback

in the hands of the consumer

A product under nonprice competition would most likely NOT succeed in the market if a.a new advertising campaign is established for it. b.it is priced near the competitors' price. c.it is easy to duplicate. d.its quality has been upgraded. e.it is packaged differently from similar products.

it is easy to duplicate

Cluttered out ads

it's like being in a loud room, it's hard to hear the person next to you and as more people come in it gets harder and harder

How much money do B2B companies spend on advertising

less than 1%

How much money do B2C companies spend on advertising

less than 6-8%

What do companies mean when they say we don't do much marketing?

means they don't do much advertising

Intensity-percentage of sales spent on advertising

measure of importance of advertising in a business

Owned media

media an organization completely controls (websites, building signs) - have less credibility

A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n) a.media plan. b.media platform. c.advertising media appropriation. d.advertising plan. e.media audit

media plan

paid media

media that a company pays to have

How many marketing tacts are we exposed to daily?

more than 3000 - more than it use to be but harder to get message through now that there are so many messages

Sellers that emphasize distinctive product features to encourage brand preferences among customers, rather than price, are practicing a.price competition. b.competitor differentiation. c.brand differentiation. d.product competition. e.nonprice competition.

nonprice competition

A problem associated with ____ is that consumers can predict when prices will be lowered and delay purchases until that time. a.periodic discounting b.penetration pricing c.random discounting d.reference pricing e.everyday low pricing

periodic discounting

Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is a.advertising. b.personal promotion. c.individual promotion. d.public relations. e.personal selling.

personal selling

Which of the following is the most precise, enabling marketers to focus on the most promising sales prospects? a.Advertising b.Public relations c.Personal selling d.Sales promotion e.Publicity

personal selling

All of the following are forms of psychological pricing except a.customary pricing. b.prestige pricing. c.odd-even pricing. d.price skimming. e.reference pricing.

price skimming

The two basic types of sampling that marketing researchers use are a.probability and nonprobability. b.even and odd. c.random and nonrandom. d.planned and spontaneous. e.stratified and quota.

probability and nonprobability

What is a marketing student's first response to a marketing situation

put more money into advertising (this is wrong)

______ that generates loyal long-term customers is likely to be extremely profitable in repeat sales as well as the money saved in trying to find new customers. a.Missionary selling b.Relationship selling c.Tactical selling d.Team selling e.Creative selling

relationship selling

A consumer contest is an example of a.sales promotion. b.social media. c.personal selling. d.direct selling. e.public relations.

sales promotion

Bzz Agent

sign up clients to help them market products by offering free trials of products when people provide feedback and spread the word about the product

Maintaining a certain market share, meeting competitors' prices, maintaining a favorable image, and achieving price stability are all associated with a ____ pricing objective. a.market share b.survival c.profit d.status quo e.product quality

status quo

marginal revenue in advertising

the change in total revenue generated by some kind of change (spending more money on advertising- how much extra money is coming in)

breakeven point

the point at which the costs of producing a product equal the revenue made from selling the product

Preconceived glamor behind advertising jobs

trying to break into advertising is like trying to break into show biz: not as glamorous as it looks

Young adults and advertising

very skeptical, cynical re mainstream advertising, etc.

Screened out ads

we simply block things out due to lack of interest - not noticing someone's clothes in class next to you

A trading company acts like a ______, taking on much of the responsibility of finding markets while facilitating all marketing aspects of a transaction. a.direct marketer b.retailer c.wholesaler d.offshorer e.franchisor

wholesaler

Why is it risky for a company to invest in advertising

you have to put money in upfront and there's no guarantee that you'll get that money back/the ad will pay off