MKT 337 Exam 3

Social Media

"Word of mouth was always the best way to find a customer. The problem was that it didn't scale. With ______ _____, it does"

Share of Voice

A brand's marketing communications spending as a percentage of the total such spending in the product category - equal to the company's share of market. Firms looking to grow sales may strive to achieve this that is greater than their current market share to reflect an investment beyond competitors'. This approach is often problematic as well. If competitors are not acting strategically in setting their marketing communications budgets, following their lead may be a fool's errand

Impact

A metric that measures the qualitative value of the advertisement appearing in a certain media vehicle or in a certain location in a media vehicle - for instance, the back cover of a magazine has this being higher than a page in the middle One way marketers can increase this metric is to deliver an ad to a consumer at the right time in the right place

Hierarchy of Effects

A model with six stages (Awareness, Knowledge, Liking, Preference, Conviction, and Purchase) that depicts the process that consumers go through before purchasing a product. This is often presented as a funnel

Straight Commission

A type of sales force compensation; a salesperson gets paid based on how much they sell. Provides maximum amount of selling incentive. May not motivate investing in long-term sales or skills development Would be the most motivated to close a sale at a large company that just relocated here

Straight Salary

A type of sales force compensation; flat salary no matter how many sales are commissioned. Easy to administer and give sales manager a large amount of control (employees will do tasks that don't necessarily lead to sales). Does not dissuade important but non-sales producing customer service activities Would be the most motivated to help his boss calculate the company's market share

Combination Compensation Plan

A type of sales force compensation; salary + commission = total compensation Would be most motivated to follow-up with a customer to ensure the product fulfilled their needs

Coupons

A type of sales promotion; certificates that give buyers a saving when they purchase specified products. The objective is to promote early trial or stimulate demand Advantage is a temporary "price decrease" Disadvantage is that consumers may delay purchases

Contests

A type of sales promotion; contestants apply their skill or analytical or creative thinking to try to win a prize. The objective is to create mindshare for the brand (people will think about the product / brand) Advantage is that it encourages consumer involvement with product Disadvantage is that it can require substantial effort

Point of Purchase Displays

A type of sales promotion; displays and demonstrations that take place at the point of sale. The objective is to increase product trial; provide in-store support for other promotions Advantage is that it provides good product visibility (and impulse purchases) Disadvantage is that it's hard (or expensive) to get retailer to dedicate high-traffic space

Premium

A type of sales promotion; merchandise offered free or at a significant savings. Objective is to build goodwill and encourage customer to purchase more or more frequently Advantage is that it attracts attention Disadvantage is that consumers may buy for premium, not product

Samples

A type of sales promotion; offering a sample amount of a product for free or reduced price. The objective is to encourage new product trial Advantage is that their is low risk for consumers Disadvantage is the high cost for the company

Rebates

A type of sales promotion; offers the return of money based on proof of purchase. Occurs AFTER the point of sale. The objective is to lower the perceived purchase price Advantage is that redemption rate is often < 100% so the companies benefit by focusing customer on discounted price but realizing the full price Disadvantages is that these are easily copied and may reduce perceived product value

Sweepstakes

A type of sales promotion; participants submit an entry, but requires no analytical or creative effort. The objective is to create awareness; obtain names of potential customers (gather data) Advantage is to get customer to use product or retailer more often Disadvantage is that sales may drop after this

Loyalty Programs

A type of sales promotion; program to acknowledge purchases and offer a premium as purchases accumulate. The objective is to encourage repeat purchases Advantage is that it can help create loyalty Disadvantage is that it can be very expensive for a company to offer

Outbound Marketing

Communication between a firm and consumer that is initiated by the firm Companies pay content or space providers for advertising placement that delivers their stories to a captive audience; providers are, generally, TV or radio programmers, magazine or newspaper publishers, or websites In digital marketing, this takes the form of search ads and display ads

Promotion

Communication by marketers that informs, persuades, or reminds the targeted audience in order to influence an opinion or elicit a response

Inbound Marketing

Communication initiated by a consumer. The firm sets out to make itself available to consumers when they are ready to talk. It includes a set of marketing strategies and techniques focused on creating content that functions as a magnet, pulling relevant prospects toward a business and its products as they are actively searching for information during their decision-making process These marketers publish and provide content that offers their potential audiences tools and resources, then use retail placement, SEO, and search engine marketing to attract people to that content

Asynchronous Communication

Communications with both parties participating but at different times Ex: Communication between a firm and a customer it reaches through direct mail

Synchronous Communication

Communications with both parties participating in real time Ex: Store clerk and customer conversation

Global Marketing

Describes a company's effort in applying the principles learned from its domestic marketing to create an integrated global marketing strategy, not on a country-by-country basis but with a global perspective on all aspects of the marketing mix

Message Delivery

How widely and deeply the marketing communications message has spread through a population

Addressable Media

Media that allows marketers to fully customize their pitch to the particular needs of an individual customer Ex: Personal Selling

Mass Media

Media viewed by a mass audience and no customization of message is possible Ex: TV advertising

Media

One of the 6 M's; these decisions focus on choosing where and how brand messages will be told

Develop Sales Strategy

One of the steps in the Eight-Step Process for Key Account Selling; once a prospect has been qualified, the sales person should develop a plan that specifies all necessary contacts and selling tasks. In general, the goal of strategic selling is to grow connections and gather data that will not only facilitate a single transaction but contribute to a more sustained relationship

Create Solution

One of the steps in the Eight-Step Process for Key Account Selling; part of the salesperson's job is to help the prospective customer cost-justify a purchase. This means developing a deep understanding of the buying organization's needs and challenges, in order to convince decision makers that the seller's product will save money, boost profits, or otherwise improve their operation

Qualify Leads

One of the steps in the Eight-Step Process for Key Account Selling; prospects differ in the likelihood that they can be converted to sales. To avoid wasting time on low- or no-potential leads, salespeople must determine if the buying organization has a demonstrated need for their product; and if so, whether their offering can realistically compete with alternatives or how likely it is that the buyer would consider switching vendors

Nurture

One of the steps in the Eight-Step Process for Key Account Selling; skilled salesmanship continues to play a critical role long after the sale has closed. In addition to supporting the account by providing such services as installation, training, and trouble-shooting, the salesperson can continually reinforce the buyer's confidence in the seller - and set the stage for future sales

Present

One of the steps in the Eight-Step Process for Key Account Selling; the salesperson has an opportunity to summarize and reinforce prior agreements made individually with each decision maker. This is also the time to formally ask for the order

Coordinate Resources and Personnel

One of the steps in the Eight-Step Process for Key Account Selling; the salesperson is responsible for identifying, mobilizing, and coordinating all of the selling company's resources necessary to facilitate the sale Ex: A prospective customer might have specific product design requirements. An effective salesperson thoroughly understands who or what is involved in addressing such needs

Generate Leads

One of the steps in the Eight-Step Process for Key Account Selling; the salesperson's first step is to determine what individual or group in the buying organization is most appropriate to approach - and most likely to respond positively

Close

One of the steps in the Eight-Step Process for Key Account Selling; this is a process, not a single event. Months or even years may elapse between making the initial contact and obtaining the final go-ahead, the salesperson cannot wait until the end to get a final, collective agreement. He or she must get and reaffirm a commitment from every decision maker along the way

Post Purchase

One of the steps in the customer decision making process; in this phase, a consumer's liking for the purchased product and loyalty to the company that sold it are by no means guaranteed. Buyers may be disappointed if the offering doesn't fulfill their expectations, or they might think they made a mistake if they hear other consumers rave about an alternative Marketers care about managing this phase because consumers who are happy with their purchases are more likely to buy again and spread positive word-of-mouth to others A business may also anticipate - and prompt - the next purchase of the same product. For instance, to encourage consumer to replace products or renew services, companies sometimes add special features that indicate when it's time to buy again

Trigger

One of the steps in the customer decision making process; something that plants the thought in a consumer's mind that they need to buy a product. This happens in the pre-purchase phase Examples: "Other movies you might enjoy", toothbrush looking out of whack, turning 30 and wanting a new car to mark the milestone

Evaluation of Alternatives

One of the steps in the customer decision making process; this happens in the pre-purchase phase. As a consumer considers which product to buy, they conceivably could choose from the total set of alternatives in the marketplace: a selection of all possible options, no matter how obscure on ill-suited to their needs More realistically, they likely hone in on an awareness set- that subset of alternatives that they know and have heard of The consumer receives feedback from friends, does research, and takes in account their own preferences and liking and pare the list down to a consideration set - offerings that meet the consumer's initial buying criteria and that they will consider in more detail This eventually leads to a choice set - strong contenders for purchase - and ultimately to the decision to buy a specific product

Search and Consideration

One of the steps in the customer decision making process; this happens in the pre-purchase phase. This process may include soliciting advice from various options - through conversations, emails, or social networking sites. Can also include reviewing ads, visiting product websites, perusing guides, and visiting retailers. As this process unfolds, the consumer may start earmarking funds to pay for the new product In order of most persuasive to least: personal experience, personal sources, public sources (reviews), marketer controlled sources

Purchase

One of the steps in the customer decision making process; this phase may entail making choices about which brand to buy, from whom to buy it (from a brick and mortar retailer or an online retailer), how many items of the offering to buy (one or several if a volume discount is offered), when to buy (during a holiday sale or on a weekday when stores won't be crowded), and how to pay (by cash, check, credit, or financing)

Develop Sales Strategy

One of the steps in the selling process; assess needs and craft the selling approach. Information sources may include research, networking contacts, and sometimes the prospect themself Who to call on, key points in proposal, effective sales tactics, competitors to defend against

Present

One of the steps in the selling process; communicate the superior value of solution vs. alternatives. Must address all members of the buying center, ideally who have bought in during the selling process

Qualify Leads

One of the steps in the selling process; confirm the lead is worth expending sales resource on. Must assess the leads (1) need, (2) buying power, and (3) receptivity (are they open to our proposal, do they like us, do we have a way to meet them) AI can predict which lead is ready to buy, it alerts a human sales rep, handing off useful tips, like the best contact number or time of day to call

Create Solution

One of the steps in the selling process; develop proposed solution and cost justification. Proposal must be mapped to customer needs and decision criterion

Close

One of the steps in the selling process; ensure all objections are addressed and all decision makers are committed. Often complex sales processes involve a series of closes with multiple decision makers

Coordinate Resources

One of the steps in the selling process; ensure all required internal and external resources are synthesized into a compelling solution. May include include technical experts, intermediaries, consultants, customer references, etc

Nurture

One of the steps in the selling process; ensure the customer receives the expected value to motivate repeat sales and word of mouth. In this phase, the customer can tell if you are demonstrating a commitment to their success. This is the best opportunity to demonstrate commitment to a relationship, not just a sale

Generate Leads

One of the steps in the selling process; search for leads or "prospects" (those most likely to buy). Leads typically are produced by referrals, networking, promotion, or cold calls Can buy leads like through Salesgenie.com

Advocacy

One type of advertisement; get the consumer to like the company & build brand equity so that later the consumer will care more

Pioneering

One type of advertisement; making the consumer aware

Competitive

One type of advertisement; this occurs mainly in the Growth phase

Reminder

One type of advertisement; this occurs mainly in the Maturity phase --> not a lot new to say

Advertising

One type of media vehicle Strengths: - Efficient means for reaching large numbers of people quickly - Low cost per contact Weaknesses: - High absolute costs - Usually not very selective - Often one-way; difficult to receive good feedback

Events and Sponsorships

One type of media vehicle Strengths: - Can "borrow" brand equity of another brand - If exclusive, can cut through competitive noise Weaknesses: - Not very selective - Cannot deliver detailed information

Direct Marketing

One type of media vehicle Strengths: - Can be very selective - Can be personalized Weaknesses - Often expensive per contact

Sales Promotion

One type of media vehicle Strengths: - Can create urgency - Very controllable and selective - Good alternative to a permanent price reduction Weaknesses: - Limited long-term effectiveness --> probably the biggest setback to this kind of promotion - Easily copied by competitors - Easily abused by customers

Personal Selling

One type of media vehicle Strengths: - Can select audience & tailor message - Can give complex information - Immediate feedback - Very persuasive Weaknesses: - Extremely expensive per exposure - Limited reach - Requires long-term commitment Arguably the most persuasive form of promotion media

Social Media

One type of media vehicle Strengths: - Enables relationship building - Allows marketers to listen - Extremely credible - Low cost (in theory) - Very measurable Weaknesses: - Can be difficult to control - Reaches a demographically skewed audience - Rapidly changing technology

Public Relations

One type of media vehicle Strengths: - Often the most credible form of promotion - Can be relatively low cost Weaknesses: - Difficult to get influencer cooperation

Event Marketing and Sponsorships

One type of media vehicle; companies often associate their brands with entertainment or sporting events or with social causes in an effort to generate earned media and to cement associations between the brands and popular culture. These can help enhance a company's reputation as a responsible, thoughtful member of the community and can work to engage consumers' desire to form a relationship with it

Sales Promotion

One type of media vehicle; includes a host of activities, such as in-store or on-shelf messaging, prominent displays in stores or on websites, and special inducements such as coupons for first-time buyers. All of these are intended to influence consumer behavior at or near the point of purchase

Advertising

One type of media vehicle; refers to the paid placement of non-personalized messages by an identified sponsor intended to inform and persuade people about a product or service. Total spending worldwide is estimated to be more than $500 Bn annually Usually, this is delivered to consumers as an interruption of their media viewing; for example, in TV, this interrupts the flow of a TV show

Personal Selling

One type of media vehicle; specialized salespeople actively promote the products of one particular manufacturer and serve as experts to answer consumers' questions. They help diagnose consumers' problems and actively customize product or service solutions for them. They can either serve as order takers or they can actively cross-sell or upsell consumers (promoting additional or more expensive items) to increase their purchase size. They can serve customers who are already at the point of purchase or they can prospect for new customers by seeking them out and approaching them

Social Media

One type of media vehicle; the use of web-based and mobile technologies through which users create online communities to share information, ideas, personal messages, and other content. Rather than talking AT consumers, this vehicle offers companies an opportunity to talk WITH consumers. Two-way communication between the company and its consumers is encouraged on these platforms

Direct Marketing

One type of media vehicle; this allows for customized marketing communications delivered directly to consumers. This comprises unmediated appeals to customers that encourage and elicit an immediate or quick response. These tactics include email marketing, direct mail campaigns, telemarketing outreach, catalog drops, direct-response TV advertising, or online click-through banner advertising This is also used to nurture and manage ongoing relationships with customers. Some examples include special offers for customers who hold retail store credit cards and members or frequent buying clubs and other types of rewards programs

Public Relations

One type of media vehicle; when companies are ready to release information about their products, services, and firm activities to the press and greater public, they turn to these professionals. These activities include the production and dissemination of a special type of marketing communication designed to influence the influencers, or people who have the cultural capital to spread the word about the company's offerings The aim of these activities is to achieve earned media, but they also often require marketers to relinquish control over a brand's message once it has been taken up by the influencer. The loss of control is compensated for with an uptick in consumers' perceptions of the credibility of the message when it is delivered via an objective third party, a news source, or by word of mouth

Pull Strategies

Promotion tactics that are designed to build demand with end consumers so they have a desire for the product that brings them to the point of sale. These tactics pull the product through the distribution channel from the bottom

Push Strategies

Promotion tactics that are designed to motivate distribution channel partners or intermediaries to sell the product to consumers. These tactics push the product down through the distribution channel from the top

Optimizing Decision Making

Purchase decisions in which consumers are motivated to purchase the best alternative they can. As a general rule, the greater the expense (a car, a house, an insurance plan), the more likely consumers will use this kind of decision making. Similarly, the greater the variance in quality and price, the more likely they will seek to do this

Compensatory Decision Making

Purchase decisions in which consumers consider (or attempt to consider) all of the attributes that are relevant, making trade-offs between and among those attributes A product's shortcomings on a particular attribute, such as a price that is high, can be compensated for by its strengths on another attribute, such as exceptional styling, which results in a product that consumers still find desirable

Noncompensatory Decision Making

Purchase decisions in which consumers consider some, but not all, of a product's attributes, and ignore potential trade-offs between those attributes; a product's failure to reach an acceptable threshold on one attribute cannot be compensated for by high performance on other attributes Example: When flying from Boston to San Fran, some travelers may only consider nonstop flights. Even if a flight with a stop in Chicago is $500 cheaper, the traveler may not consider it because it does not meet the threshold of being a nonstop flight. As a result, such consumers may consider only the 4 out of 30 flights that meet the required nonstop criterion

Satisficing Decision Making

Purchase decisions in which consumers settle for an alternative that is "good enough" or that passes some acceptable threshold. In such cases, there may be a more optimal alternative available that additional research could uncover. However, the decision maker feels that the added benefit does not warrant the added cost of the search

High Involvement Decision Making (High involvement stems from factors such as expense, the risk inherent in making a bad choice, and uncertainty around which alternative is best)

Purchase decisions in which the buyer is fully engaged, the decision making tends to be effortful, the time frame tends to be relatively long, and the consequences of making a good versus a bad choice tend to be great and visible For a purchase that is largely cognitive, such as buying a widescreen TV, a consumer may research the various makes and models on the market, visit several retailers to see which has the best prices, talk to friends to get their recommendations, and scan the newspaper for temporary price promotions Similarly, for a purchase that is largely emotional, such as buying a prom dress, a consumer also may visit many stores, get feedback from friends, and make sure that the dress chosen is distinctive enough that it doesn't match another prom-goer's dress

Cognitive Decision Making

Purchase decisions that entail a deliberative, information-based processing of relevant product characteristics Consumers seek out a number of options and compare and contrast those options on the product characteristics they deem most important

Emotional Decision Making

Purchase decisions that entail a subjective liking for one option over another

Low Involvement Decision Making

Purchase decisions that require little effort, happen quickly, and are perceived by consumers as having low risk Examples: Purchasing gum, buying soda with lunch, or extending a monthly fitness club membership This could be due to any one of several factors. Perhaps it is due to cost - the price is so small that the purchase does not warrant careful and elaborate consideration. Or it could be routine - long ago, the consumer decided which paper towels were preferred or which gym best met his or her needs, and now the decision to repurchase is automatic Or may the available alternatives are largely similar - the person has come to believe that all gasoline is the same product and chooses a gas station based solely on price and convenience

(Profit - Cost) / Cost

ROI =

Inside Sales

Selling that is done from the seller's place of business. This is much less expensive than selling outside the seller's place of business

Outside Sales

Selling that is done outside the seller's place of business. Always want to use this kind of sales for really large profit potentials (greater than $250K). Would love to use this all the time but because its expensive we limit it towards the larger profits

Promotion

Some challenges to this include: 1. Consumers besieged with over 5,000 promotional messages daily 2. Consumers increasingly avoiding conventional promotion: DVRs, Ad-free streaming, Ad-blocking software 3. Consumers' media habits are rapidly changing: decrease in TV, newspapers, magazine, radio; increase in social media and mobile 4. Difficulty in measuring promotion effectiveness 5. With social media, companies have lost much control 6. Exploding number of promotion media

Transactional Selling ("Traditional")

The characteristics of this kind of personal selling include: - Opportunity is defined as short-term revenue capture - Focus on generating leads and closing sales - Limited sales planning - Most needs discovery and proposals based on product information - Any sales follow-up is short-term, focused on product delivery Salesperson: communicate product / place / price info --> show up & throw up Customer: assess value provided to customer (this can be a lot of work) and make a decision

Relationship Selling ("Consultative" "Key Account Sales")

The characteristics of this kind of personal selling include: - Opportunity is defined long-term customer lifetime value maximization - Focus on improving customer business results of targeted accounts - Sales planning is a top priority - Most needs discovery and proposals based on customer profit and strategic impact - Follow-up is long-term, focused on long-term relationship enhancement Salesperson: communicate product / place / price info and assess value provided to customer Customer: makes the decision

Reach

The media metric that measures the number of people exposed to an advertisement. It is expressed as a percentage that indicates how much of the target market is exposed to the advertisement --> Ex: 80% of women and girls aged 12-24

Decision Making Unit (DMU)

The set of individuals who affect, influence, and take part in a decision to buy

Ad Blockers

These are advertisers' responses to this: - More repetition - Innovative style - Product placement - Fewer ads - Paying ad watchers - Native ads - Better targeting

Pull Strategies (which pulls it through the distribution channel from the bottom up)

These are designed to build demand with end consumers so that their desire for the product brings them to the point of sale. These strategies thus target the users of the product as the audience Ex: A company uses advertising to attract the attention and interest of customers to a new product. The customers then go to their local retailer and requests it. This causes retailers to request the product from the manufacturer

Push Strategies (This pushes the product down through the distribution channel from the top)

These are designed to motivate distribution channel partners or intermediaries to sell the product to consumers and thus target the sellers of a product (e.g., retailers, wholesalers, or distributors) as the audience Ex: Companies pay their retailer partners trade promotion fees to push their products to consumers by placing them in prominent locations on store shelves, featuring them in end-aisle displays, or encouraging salespeople to feature them when talking with customers

Consumer Markets

These kinds of markets are characterized by: - Target customers: Large number of small buyers; dispersed throughout population - Product: Mass-produced products - Place: Generally longer channels - Promotion: Promotion emphasizes advertising and other mass communication channels - Price: Most relatively low cost and risk; most purchased at list price with cash or credit cards - Demand: Based on consumer wants and needs; relatively stable - Decision Process: Often emotional; decision made by the ultimate user of the product for personal consumption - Relationship: Buyers often engage with many different sellers

Business Markets

These kinds of markets are characterized by: - Target customers: Relatively small # of large buyers; geographically concentrated - Product: Customized products - Place: Generally shorter channels - Promotion: Promotion emphasizes personal selling and more direct communications - Price: Most high cost and risk; may involve complex bidding, price negotiations, and financial arrangements - Demand: Derived from consumer demand; relatively inelastic and less stable - Decision Process: Usually cognitive; decision made other than the user of the product, often by several people - Relationship: Interdependencies between buyers and sellers favor long-term relationships

Bottom Up Budgeting

This kind of budgeting involves a process of defining the strategic goals for marketing communications first, and then figuring out how much it will cost to achieve them. In the common objective and task method of allocating funds, the budget is aligned with the jobs that the firm needs the marketing communications to do, making the budget a more realistic estimate of what it will take for the company to achieve its sales goals

Inbound Marketing

This kind of digital marketing requires two key actions; First, the company must ensure that its website has the content, keywords, and meta tags that improve its relevance to a particular search query - thereby achieving a high rank in an organic search engine results listing. To do this, it needs to anticipate the keywords and search queries consumers may be using. Second, the firm needs to find ways to garner inbound links from other websites to build its authority. It can do this by savvy content creation

Hierarchy of Effects

This model outlines six stages of marketing activities designed to incite customers to various Think-Feel-Do outcomes First, the company must grab consumers' attention to make them aware of the product, competing in a crowded advertising environment to stand out. Second, the company must deliver information about the product's features, benefits, and values so that consumers develop a set of associations that they relate to the product and/or brand. Third, the company must encourage a positive impression about the product or service in consumers' hearts by forging emotional connections. Fourth, the company must help consumers generate a preference for the product and/or brand by favorably comparing it to other competitive products. Finally the company must strengthen consumers' preference so that it yields to conviction, the point at which they are convinced that the product and/or brand is the right one for them Funnel: Awareness --> Knowledge --> Liking --> Preference --> Conviction --> Purchase

Top Down Budgeting

This type of budgeting is when firms set their marketing communications budgets by default, based on how much money they believe they have available, given their revenue projections and other expenses. They then take this amount of money as a given and decide what can be done with it

Firm Controlled Media

This type of media includes a company's website, its social media channels, its company-owned retail stores, and its catalogs. These elements are often referred to as owned media Also includes paid media such as TV, print, radio, outdoor, or online advertising in which the company maintains complete control of message content and delivery by contracting for specific media placement and providing the creative execution of the message

Consumer Controlled Media

This type of media includes consumer blogs, rating sites, social media feeds, or online communities. The firm relinquishes power over its message and its placement, relying on others to tell its story when and where they want to Often referred to as earned media; they are not purchased, but literally earned through public relations outreach to the press, social medial outreach and viral campaigns, and event marketing

Other Controlled Media

This type of media includes media provided by important cultural gatekeepers, such as writers who feature a company's products in magazine or newspaper articles or producers who feature a company's products in TV or movie programming. The firm relinquishes power over its message and its placement, relying on others to tell its story when and where they want to Often referred to as earned media; they are not purchased, but literally earned through public relations outreach to the press, social medial outreach and viral campaigns, and event marketing

Consumer Sales Promotion

Type of sales promotion; important because they can be the deciding factor in the purchase decision. Include short-term inducements (coupons, free samples, free gifts w purchase) that help reduce the cost of a purchase and encourage consumers to try a product for the first time, to repurchase, or to stock up on the product Reassurances such as warranties, guarantees, and price protection programs help reduce the risk of a purchase for consumers

Trade Promotion

Type of sales promotion; producers offer to intermediaries to also create urgency. Money provided to retailers and other distribution channel partners in exchange for special services Examples: - Slotting fees - Display allowances - Cooperative advertising: producers and retailers split the cost of the advertisement - Temporary price reduction allowances - Push money: producer (Samsung) will give a bonus to the sales people that work at a retailer (Best Buy) - Training: producers will train retail sales people - Free merchandise - Store demonstrations: companies will go to retailers and set up shop to bring attention to the product These are important given that more than two-thirds of purchase decisions are influenced by in-store deliberations

Business To Business (B2B)

When a business markets its good or services to another business and/or to governments or nonprofits (rather than directly to individuals) Characterized by: - Fewer customers - Larger value transactions - Customized products - Negotiated price - Lengthy, complex selling process - Usage determines value - Multiple buying decision makers - Derived demand

Company Influences

When deciding whether or not to go global, organizations need to consider the forces operating within this basic category; at its core, the decision of whether to go global depends on the organization's growth strategy. Growth can come through a variety of strategies such as consolidation, acquisition, diversification into related or unrelated business, vertical integration either forward or backward in the supply chain, or geographic expansion. Geographic expansion most often occurs following saturation of the domestic market The advantages of globalizations are many: increased customer bases, potential to achieve economies of scale and scope through skill and technology transfers, lower costs, ability to leverage a common brand name and marketing collateral, opportunities to expand products and services, and ability to combine resources to create new competitive strengths and capabilities. Even so, executives must determine whether the org's products, brands, skills, experience, tech, etc, are truly transferable

Industry Influences

When deciding whether or not to go global, organizations need to consider the forces operating within this basic category; what is the organization's competitive advantage? How does its product or service differ from those of the competition? Typically, it is either a similar product that can be offered at a lower price, or a superior product that delivers additional benefits and can command a premium price When considering global, this competitive analysis should also include high-level, local-market analysis. The nature of consumer demand for products in any global industry varies along several dimensions: by country, product, product characteristics. Variation across geographies can lead to a significant # of product variants at any one time, which, in turn, can lead to manufacturing and economies of scale issues Are the factors which allowed us to be successful in our home region also present in target regions? Are our strengths sufficient to create a sustainable competitive advantage in the target regions? --> Need to conduct 5 Cs + 5 Forces + SWOT

Message Impact

Whether and how a marketing communication influenced consumers' purchase behavior