Marketing Final Ch. 18-20

Personal Selling Process

1) Generate and qualify leads 2) Pre approach 3) Sales presentation and overcoming reservations 4) Closing the sale 5) Follow-up

Communication Process: Sender

1) Where the process originates, must be clearly identified with the audience.

Communication Process: Transmitter

2) The creative department or advertising agency.

Communication Process: Encoding

3) Converting the sender's ideas into a message, verbally, visually, or both. Makes consumers want it. What the sender intends to say (on billboard).

Communication Process: Receiver

5) The person who hears, sees, or reads and processes information contained in the message.

Telemarketing

Always occurs over the telephone. Sometimes professional telemarketing firms make these calls rather than the firm's salespeople.

Qualify

Asses customer's potential.

Non financial Rewards

Awards, plaques, pens, rings, and free trips or days off are all effective nonfinancial rewards. Should be publicized in order to be symbolic.

Professional Selling as a career

Can be beneficial b/c of lifestyle, autonomy, and flexibility

Leads

Generate a list of potential customers

Product placement

Marketers pay to have their product included in nontraditional situations, such as in a scene in a movie or tv program. Increase visibility of their products.

Point-of-purchase displays

POP- merchandise displays located at the point of purchase, such as at the checkout counter in a supermarket. Impulse buying.

Decoding

Process by which the receiver interprets the sender's message. What the receiver hears.

Direct Marketing

Received the greatest increase in aggregate spending recently. Marketing that communicates directly with target customers to generate a response or transaction. Mail catalogs, E-mails, and online databases.

ROI

Return on investment. Sales rev - Advertising cost / advertising cost

Measures of Sales Rep Performance

Sales per hour, Total sales, Orders per call, number of orders received, & profit per customer.

Federal Agencies that Regulate Advertising

The FDA, FCC, and FTC are the three major agencies regulating advertising; however, other agencies (including the U.S. Postal Service) have some regulatory responsibility as well.

Media buy

The actual purchase of airtime or print pages is generally the largest expense in the advertising budget, marketers must make their decisions carefully.

Competitive Parity

The communication budget is set so that the firm's share of communication expenses equals its share of the market.

Headline

The large type in an ad that is designed to draw attention.

Puffery

The legal exaggeration of praise, stopping just short of deception, lavished on a product.

Available Budget

To set the difference between forecasted sales and forecasted expenses, less desired profits.

Rebates

a particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer in the form of cash. Paid at a later time.

Emotional Appeals

aims to satisfy consumers' emotional desires rather than their utilitarian needs. Feelings about the self. Creates bond between consumer and brands. Ex: love (sex), humor, happiness, fear and safety.

Sales people

are very hard to train

Niche Media

channels are more focused and generally used to reach narrower segments, often with unique demographic characteristics or interests.

Mass Media

channels include national newspapers, magazines, radio, and television and are ideal for reaching large numbers of anonymous audience members.

Pulsing

combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods. Increase during low demand periods.

Informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase. HElp determine some important early stages of products life cycle. Used to tell customers about an upcoming sales event or arrival of new merchandise

Blog

contains periodic posts on a common webpage. A well-received blog can communicate trends, events, a positive WOM, and much more.

Social Marketing

defined as the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or specific population segment.

Reach

describes the percentage of the target population exposed to a specific marketing communication.

Sales support personnel

enhance and help with the overall selling effort.

Order getter

A salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale.

Push Strategies

designed to increase demand by focusing on wholesalers, retailers, or salespeople. They motivate the seller to highlight the product, rather than the products of competitors and thereby push the products to consumers.

Objective-and-task method

determines the budget required to undertake specific tasks to accomplish communication objectives.

Commission

money paid as a percentage of the sales volume or profitability.

Contest

refers to a brand-sponsored competition that requires some form of skill or effort.

Body Copy

represents the main text portion of the ad

Continuous Schedule

runs steadily throughout the year and therefore is suited to produce and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and or reminder advertising.

Order taker

salesperson whose primary responsibility is to process routine orders, reorders, or re-buys for products. Writes new orders, sets up displays, and checks inventory.

Advertising Schedule

specifies the timing and duration of advertising.

Selling teams

that combine sales specialists whose primary duties are order getting, order taking, or sales supports but who work together to service important accounts.

Lagged Effect

A delayed response to a marketing communication campaign. When consumers don't act immediately after receiving a marketing communication.

Advertising

Most visible of the IMC. Entails the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and persuade members of a target market.

PSA

Public service advertisement. Insitiutional advertising that focuses on public welfare; generally sponsored by nonprofit institutions, civic groups, religious organizations, trade assosciations, or political groups. Betterment of society.

Sweepstakes

Sales promotion that offers prizes based on a chance of drawing an entrants; name. They do not require entrant to complete a task other than buying a ticket or filling out a form. Dolphin Tale- entered.

Sales contest

Short-term incentive designed to elicit a specific sales force. Prizes may be cash or other types of financial incentives.

Sales Promotion

Special incentives of excitement-buliding programs that encourage the purchase of a product or service, ex: coupons, rebates, contests, free samples, and point-of-puchase displays. Built for short-term sales.

cause-related marketing

St.Judes- commercial activity in which business and charities form a partnership to market an image, product, or service for their mutual benefit.

Impressions

The number of times an ad appears in front of the user.

Personal Selling

Two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. Can be in various settings: Face to face, skype, phone, or internet. Popular in B2B selling

USP

Unique selling proposition- differentiates a product by establishing its unique benefits. The value proposition which is often the common theme or slogan in an advertising campaign. Becomes a snapshot of the entire campaign. "Red bull gives you wings"

Aided recall

When consumers indicate they know the brand when the name is presented to them.

Cold calls

a method of prospecting in which salespeople telephone or go to see potential customers without appointments. Have become less popular due to the success rate, regulation, and costs.

Advertising Plan

a subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation., identifies the objective of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful.

Subhead

an additional smaller heading

GRP

gross rating points. Reach x Frequency

Informational Appeals

help consumers make purchase decision by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides.

Frequency (of exposure)

how often the audience is exposed to a communication within a specified period of time.

Brand elements

identify the sponsor of the ad, typically through a logo and a unique selling proposition.

Tracking

includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium.

Institutional advertising

inform, persuade, or remind consumer about issues related to places, politics, or industry. "Got milk?" Which promotes an entire industry (raisin production in California) rather than any particular brand.

Sales management

involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, corresponding, and evaluating, as they apply to the sales force.

Reminder advertising

is a communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of life cycle. Traditional media as seen in TV or print and other forms of advertising.

Bonus

is a payment made at management's discretion when the salesperson attains certain goals.

Closing the Sale

obtaining a commitment from the customer to make a purchase. Without a successful close, the salesperson goes home empty handed.

Preapproach

occurs prior to meeting the customer for the first time and extends the qualification of leads procedure described in step 1. Although the salesperson has learned about the customer during the qualification stage, he or she must conduct additional research and develop plans for meeting with the customer.

Event Sponsorship

occurs when corporations support various activities, usually in the cultural or sports and entertainment sectors.

Coupons

offer a discount on the price of specific items when they're purchased. Issued by manufacturers and retailers, over the Internet and through the mail to stimulate demand.

Trade shows

offer an excellent forum for finding leads. Attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry.

Premium

offers an item for free or at a bargain price to reward some type of behavior such as buying, sampling,or testing. Build good-will among consumers, who perceive high value in them.

Sampling

offers potential consumers the opportunity to try a product or service before they make a buying decision.

Public relations

organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with media. "free media attention" More credible than marketing and does not buy media slots. PR toolkit: press kits, new releases, annual reports, and brochures.

Brand Awareness

potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service. The strength of the link between the brand name and the type of merchandise or service is in the minds of customers.

Deal

refers generally to a type of short-term price reduction that can take several forms, such as a "featured price", a price lower than regular price; BOGO. Deals encourage trial and reduce consumer risk but they may reduce perception of value.

Relationship Selling

refers to a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties.

Fighting

refers to an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising. Happens with fluctuating demands (seasonal).

Pretesting

refers to assesments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they intended to do.

Media Planning

refers to the process of evaluating and selecting the media mix.

Independent Agents/ Manufacturer's representatives/ "reps"

salespeople who sell a manufacturer's products on an extended contract basis but are not employees of the manufacturer.

Sales Promotions

special incentives or excitement-building programs that encourage consumers to purchase a particular product or service. Typically used in conjunction w other advertising or personal selling displays.

AIDA model

suggests that Awareness leads to Interest, which leads to Desire, which leads to Action. At each stage the consumer makes judgements about whether to take the next step in the process. Ultimate goal is to drive receiver to action.

Media mix

the combination of the media used and the frequency of advertising in each medium. It will deliver a clear, non-consistent, compelling message to the intended audience.

Posttesting

the evaluation of the campaign's impact after it is has been implemented. At this last stage, advertisers asses the sales and or communication impact of the advertisement campaign.

Pull Strategy

the goal is to get consumers to pull the product into the marketing channel by demanding it.

Top-of-mind Awareness

the highest level of awareness, occurs when customers mention a specific brand name first when they are asked about a product or service. Ex: Harley Davidson- known for motorcycles.

Cross-promoting

when two or more firms join together to reach a specific target market. To achieve successful cross-promotion, the two products must appeal to the same target market and together create value for consumers.

Salary

A fixed sum of money paid at regular intervals.

Community Manager

A community manager is responsible for handling corporate forums and blogs, increasing traffic to the company website, and broadening the company's community.

Steps in Planning and Executing an Ad Campaign

1) Identify Target Audience 2) Set advertising objectives 3) Determine the advertising budget 4) Convey the message 5) Evaluate and select media 6) Create advertisements 7) Asses Impact

B2B Process

1) Need recognition 2) Product specification 3) RFP process 4) Proposal analysis and supplier selection 5) Order specification 6) Performance assessment

Communication Process: Communication Channel

4) What carries the message through TV, radio, internet, or print. Must be the appropriate media chosen to connect itself.

Communication Process: Noise

6) Any interference that stems from competing messages. Creates the difference between Encoding and Decoding.

Communication Process: Feedback Loop

7) Allows the receiver to communication with the sender and informs sender whether message was received and decoded properly. For example: a customer's purchase, a complaint or compliment, a coupon or rebate use, or a tweet on twitter.

CTR

Click through rate. To calculate, you take the number of times a user clicks on an ad and divides it by number of impressions.

Company Sales Force

Comprises people who are employees of the selling company

Relevance

Google provides a measure of relevance through its AdWords system using a Quality Score. The relevance of the ad describes how useful an ad message is to the consumer doing the search.

Product-focused advertisements

Inform, persuade, or remind consumers about a specific product or service.

IMC

Integrated Marketing Communication: extend the message delivered by all the other elements. Represents the Promotions of the 4 P's. Variety of communication disciplines- Advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing (social media). 3 elements; Consumers, Channels through which message is communicated and evaluation of results.

Loyalty programs

Part of a sales promotion program. Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.

Persuasive advertising

used to motivate consumers to take action. occurs in the growth and early maturity stage of the product life cycle. Later in cycle, may be used to reposition an established brand by persuading consumers to change their existing perceptions of the advertised product.

Rule-of-thumb methods

used to set budgets. Use prior sales and communication activities to determine the present communication budget. Various limitations.

Role playing

when the salesperson acts out a simulated buying situation while a colleague or manager acts as the buyer.