MKT - Final
Decision Making Unit (Buying Center) roles: Buyer
arranges terms of sale, makes the purchase
what is the goal of a brand?
brand equity: the amount more you are willing to spend for the brand
mass selling
communicating with large numbers of customers at the same time one-to-many
GRPs
gross rating points = reach x frequency
The first step in the sales process is:
Prospecting for potential customers
Missionary salespeople:
Are a unique type of sales representative that do not sell the product but rather encourage people who influence a buying decision to recommend it
vertical integration
: taking on another aspect of supply chain; cutting out the middle-man (ex. open up a retailer instead of using one that already exists) this may or may not be a good idea - sometime's it's worth it to save money or gain more control
Public Relations is:
Any activity designed to create and maintain goodwill toward an organization
A firm generally realizes profitability during which stage of the Product Life Cycle?
Growth
PPC
Pay Per Click - Google gives you free impressions, only paying for clicks - Facebook is getting paid regardless of clicks
During the introductory stage of the product life cycle:
The company is trying to recoup its marketing expenditures, such as promotions, research and development
publicity
any unpaid form of nonpersonal presentation of ideas, goods, or services any publicity is good publicity
Bottled water is sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and vending machines. This is an example of a(n) _____________ distribution strategy.
intensive
types of sales transactions: consultative/relational
involves custom-tailored solutions; need and benefit are inherent, emotional, and variable (ex. meat in burgers at BrewLab)
organic SEO
not paying for placement
Stage of product life cycle: Growth
stress differentiation competition: more product: more versions price: gain market share (incr. prices), deal promo: stress differences b/w other brands place: more outlets
logistics
the transporting, storing, and handling of goods in ways that match target customers' needs
Decision Making Unit (Buying Center) roles: User
use the purchased product or service
What is a brand?
sum of a customer's experiences with a company or product visual rep of brand: logo, color scheme, and slogan
positioning
A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer.
Stage of product life cycle: Decline
deletion competition: reduced product: best sellers price: stay profitable, prices/sales decrease promo: minimal place: fewer outlets
inside salespeople
depends on the marketing department to produce prospects use a script upselling is common ex.) me at Altar'd State
Purchase situations: New buy
lots of research, request of proposal, take time making decision, new/present suppliers
branding strategy: family branding
product assortment, product line, individual product (ex. NIKEFOOTBALL vs. NIKERUNNING)
universal functions of distribution: storing
production doesn't match consumption - store extra in inventory always use estimates builds channel flexibility keeps prices steady
Decision Making Unit (Buying Center) roles: Initiator
requesting purchase for first time
types of sales transactions: strategic alliance
requires leveraging the full assets of the company, investments go well beyond the sales force; need is strategic, beyond product/money transfer (ex. specific local bread producer on menu at BrewLab)
missionary salespeople
spread the good word, travel to distributor and retailer, equipping other sales staffs, don't actually sell the product
frequency
the average number of times a person in the target audience is exposed to a message or advertisement
brand awareness
the extent to which consumers are familiar with the qualities/image of a brand
Personal selling is the most expensive form of communication in marketing, costing more to reach each individual customer than other forms of advertising and promotions. However, the unique advantage personal selling provides is:
Flexibility and control
Manufacturers/producers are buyers who:
Purchase component parts and raw materials that will be used to create finished products
The document that states the amount and price of a good or service that a company is willing to sell is called a(n):
Quote
Ron Jon's Surf Shop has 36,400 followers on their Facebook page. This is a measure of the page's:
Reach
T or F: The most common objection heard during the sales process is price.
True
T or F: Traditional forms of media, such as newspapers, radio and television have declined in use in recent years as more unusual forms of media have been created to break through clutter and offer advertisers a more cost effective, and sometimes more measurable, way to promote their brands.
True
When the ABC Corporation first opened their doors for business, they had no idea how much to allocate to promotional expenditures. They decided that if they wanted to be as successful as their leading competitors, they needed to invest in the brand to the same level. After tracking the marketing tactics of the competition, they were able to estimate the costs and develop a realistic budget that the marketing director was able to spend throughout the year to achieve their communications goals. This is an example of a(n) _____________ approach to budgeting.
competitive parity
Traditional brick-and-mortar retailers may evaluate a possible store location based on: a)The amount of pedestrian or vehicular traffic b)Zoning and legal restrictions c)Presence of competitors d)Accessibility to their target market e)All of the above
e) All of the above
All of the following are disadvantages associated with advertising, EXCEPT: a)Low credibility b)Inability to tailor messages on an individual level c)One way communication, which prevents consumers from providing immediate feedback d)High absolute costs e)The advertiser has little control over the timing of the message
e)The advertiser has little control over the timing of the message
Before launching into his sales presentation, John conducted a(n) _____________ so that he could customize his presentation to this specific prospect.
needs analysis
The stage in the sales process in which the salesperson discusses a product feature, links it with the product benefit and then ties it back into an identified customer need is the:
presentation
The Target Corporation markets its own brands of merchandise, called Market Pantry and Up & Up, which include hundreds of consumer packaged goods products available only in Target retail stores. This is an example of:
private label branding
After Richard provided a brief demonstration of how the product worked and responded to all questions from the buyer, he proceeded to obtain commitment from the buyer by asking for the company's business. During this stage of the sales process, the buyer provided a signed _____________ acknowledging acceptance of the terms of the offer so that the order could be delivered to meet the buyer's deadlines.
purchase order
When a potential customer expresses concerns during a sales presentation, or reasons why they do not wish to buy, the salesperson needs to move to the step in the sales process known as:
responding to objections
_____________ is defined as all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use or consumption.
retailing
Sandra is in the market for a new PC computer. She plans to go online to Dell's website, visit her local Best Buy and Walmart store locations, and even see if she can find options on Amazon.com. She is able to shop around for the best product and price to meet her needs, since most computer manufacturers use a(n) _____________ distribution intensity when bringing a product to market.
selective
If a B2B customer is satisfied with an existing supplier, it will probably engage in a(n) _____________ to purchase additional quantities of the item.
straight rebuy
the sales process
1. prospecting - cold calls 2. planning the call/the approach - ask about you 3. needs analysis and making the presentation - understand your needs 4. responding to objections 5. closing 6. post sales activities
As Misty designed the banner ad that would be used for their paid online media buy, she decided to promote the company's special discount currently being offered to online users. The ad simply invited customers to "click here for 25% off and free shipping," at which point the user was redirected to her company's website. Once implemented, she found the campaign to yield a much better click through rate than a typical online banner campaign. It was likely due to:
A good "call to action"
Richard has been in sales for several years and has learned that customers are unique. Different customers respond differently to different sales presentations. He often asks probing questions and listens for clues that will allow him to modify his presentation during the sales calls so that it is more effective at gaining a client's attention. He is using:
Adaptive selling
T or F: The B2B buying process happens at a faster pace than the B2C buying process.
False
T or F: The majority of retail sales today take place online rather than in physical stores.
False
T or F: When Victoria's Secret posted a new product photo on Instagram, they received 25,000 likes. This number represents the conversion rate for this social media post.
False
Coordinating all of a firm's promotional activities and media to produce a consistent, customer-focused message is known as
Integrated marketing communications
The idea that meeting a customer's expectations will lead to trust, which will lead to long term satisfaction and loyalty, can be identified as the concept of:
Relationship selling
When a customer comes into Best Buy to purchase a cellular phone, the sales staff reminds him that he should also consider buying a charger for his car as well as a protective carrying case for the device. This is an example of:
Suggestive selling
A local radio commercial costs $600 and reaches an estimated 10,250 listeners. A local cable commercial costs $1000 and reaches an estimated 18,500 viewers. Which medium provides the lowest CPM?
The cable commercial
Why is it important for a website to be easy to navigate?
To reduce frustration and allow users to easily find what they are looking for
5 universal functions of distribution
add value and add expenses - buying and selling - transporting - storing - standardization, grading, and sorting - assorting/bulk breaking
advertising appeals: sex
appealing to someone's sense of attraction grabs our attention, but actually detracts from brand recognition extremes - people feel very strongly about it or strongly negative lost a lot of power because it's so prevalent
The purpose of a company's website may include all of the following EXCEPT: a)Build a brand and create an image b)Provide a credible source of unbiased information c)E-commerce / sales d)Information and communication with an audience e)Engagement and entertainment functions
b)Provide a credible source of unbiased information
scheduling methods: pulsing
constant advertising but increase marketing at certain times of the year (ex. retail companies - back to school, Black Friday)
FAO Schwarz is unique children's toy store where customers can play with toys in each department prior to purchasing them, can step on an oversized piano, can walk through elaborate Lego castles, and can meet characters from their favorite cartoons during their visit. Families typically visit the store together and stay for several hours to get the complete experience. The store can best be described as a:
destination store
market exposure strategies: selective
don't have to be everywhere, but want to be where my target market it being hard to get adds value
Which of the following circumstances might lead to a modified rebuy instead of a straight rebuy? a)Dissatisfaction with the performance of the current supplier b)Changing quality levels needed in the product or service c)A price increase from the vendor requiring negotiations d)A change in the required performance features e)All of the above
e) All of the above
Kellogg's markets each of its cereals under unique brand names, such as "Special K", "Pops" and "Fruit Loops". These unique names, such as "Special K", would be considered a(n):
individual brand
advertising appeals: humor
key: humor is subjective high recall scores best practice: try to make the humor relate specifically to the key product benefit
organic social
listings - branding (develop relationships), audience cultivation, primary demand (coupon, special, etc.)
Decision Making Unit (Buying Center) roles: Decider
makes the call; someone higher in the management structure of the company
promotion varies over life cycle
market introduction - to inform: advertising, sales promo (free samples) growth - to persuade: personal selling, advertising to distribute from competing brands maturity - to remind: reminder advertising, sales promo (discounts and coupons) decline - to phase out: little money spent on advertising
supporting sales tasks
missionary salespeople, technical specialists, and customer service reps
derived demand
next person wants it, demand passes through me - a demand for something which is a consequence of the demand for something else (ex. demand for Jeeps result in demand for the parts to make them)
The measure of the number of individual pages that users click on during a given period of time is known as the number of:
page views
New to You is a small resale shop located in a busy shopping center between Old Navy and Pet Supermarket. They hope to attract guests who may be shopping in the center at some of the larger stores and see the beautiful window displays and signage of their store. New to You can be classified as a(n):
parasite store
marketing concept
philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition
It is common during certain holiday seasons, such as Halloween and Christmas, to see small stores utilize unoccupied space within shopping centers to sell holiday merchandise temporarily, while demand is high. Due to the seasonality of these products, the business cannot sustain the high cost to operate the store throughout the year, so they opt for the following store format:
pop-up store
paid search
primarily direct response ads, not used for branding catches potential customers searching for content similar to yours scalable, customizable, and quickly changeable
market exposure strategies: intensive
put product anywhere you can buy it (ex. Coke)
guerrilla marketing
small budget against large competitor; unconventional that makes people take notice - display character/personality, generate awareness, publicity
When customers become a company's brand advocate, they often voluntarily market the company on their own by telling their friends about it, usually on social media sites. This is called
viral marketing
When users save and organize links to online resources, they are using the type of social media commonly referred to as a:
Bookmarking site
Public relations includes all techniques involving contacting and influencing prospects using such means as telemarketing, mail, and email.
False
sales promotion
Short-term incentives to encourage the purchase or sale of a product or service (coupons and other deals, prize for best sales person) making primary demand happen NOW, not necessarily about building brand
T or F: Rejection is an inevitable part of making initial contacts with potential customers.
True
T or F: The B2B buying process is more formal than the B2C buying process.
True
Purchase situations: straight rebuy
don't spend time researching different vendors, same each month
The two broad categories of expenses related to advertising are:
Media buying and production expenses
rating
OPS - opportunity to see how many people can see your ad
steps to building brand equity
1. customer has broad awareness 2. customer learns differentiations, both cognitive and emotional 3. customer experiences emotional and intellectual influence 4. customer feels a brand relationship
A website retailing children's clothing received 100,000 page views last month and 42,000 unique users. 13,000 orders were placed. What is the conversion rate for the site?
31%
Characteristics of an effective website include all of the following EXCEPT: a)Aesthetically pleasing design b)A place for users to interact with each other c)Intuitive navigation d)A clear purpose e)Current and well-written content
A place for users to interact with each other
total logistics cost factors
- materials handling and warehousing costs - transportation - stockout - inventory - order processing
Pareto's Law (80/20 Rule)
20% of sales reps make 80% of the sales calls; 80% of sales revenue comes from 20% of a company's customers
behavioral segmentation
Segmenting consumers on the basis of what they do.
objective for ad campaign
communications (subtle, not tied to sales) sales (increase market share by certain %) SMART objective
_____________ is a system of computing the cost of production or of running a business by allocating expenditures to various stages of production or to different operations of a firm.
costing
A lead is converted into a prospect once the seller establishes: a)Buying authority b)Financial capability c)Willingness to buy d)All of the above e)None of the above
d)All of the above
T or F: Non-traditional retail channels are growing at a slow pace compared to traditional, physical store locations, since they are generally more expensive to operate.
false
skimming pricing
used in intro phase, initial high price before aiming at more price-sensitive customers (i.e. Gillette)
personal selling
The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. one-to-one
branding strategy: individual branding
ex.) P&G has multiple individual brands, such as Dawn, Febreeze, Crest, etc. used to target different markets
advertising appeals: scarcity
"almost gone" - encourages you to act
The Chief Marketing Officer of the Kimberly-Clark Company will be using a percentage of sales method to set the advertising budget for the year. Historically, the company uses 7% of sales for promoting their brand of toilet paper each year. Based on market data, the company estimates to achieve $2.8 million dollars in sales this coming year. What will their budget be for promoting the brand?
$196,000
In order to compare the efficiencies of media, Derek calculates the CPM for each. For Golf Digest, the circulation is 500,000 and the cost for a full page ad is $40,000. The CPM for Golf Digest is:
$80
storing function: total inventory cost
- interest expense and opp. cost - cost of inventory becoming obsolete - cost of storage facilities - handling costs - cost of risks - cost of damage while in inv.
combined (non-differentiated) targeting
A strategy in which an organization designs a single marketing mix and directs it at the entire market for a particular product for widely consumed items (ex. toothpaste)
Compared to business-to-consumer transactions, business-to-business transactions:
Are much higher in volume
single (niche) targeting
Concentrating all marketing efforts on a small but specific and well-defined segment of the population.
owned media
company controls the channel a new category of promotional tactic based on brands becoming publishers of their own content in order to maximize the brands' value to customers
paid media/advertising
company pays to leverage the channel to prospects mediums used to be tv, radio, and print -> moved towards social media, search engines, and streaming
In the maturity stage of the product life cycle, profits level off and may begin to decline because:
competition has increased
scheduling methods: continuity
constantly using the same amount of advertising throughout the year (ex. Coca Cola)
outside salespeople
pursue prospects outside of the place of business
Luxury brands are known to set high price points in an attempt to develop an image of quality and exclusivity and to be perceived as a status symbol. The pricing strategy used is a:
skimming strategy
An interactive platform where content is created, distributed, and shared by individuals on the web is called:
social media
physical distribution (PD)
these activities typically make up half or more of total marketing mix; is ultimately about customer satisfaction
aligning a supply chain with marketing strategy
understand the customer and the supply chain - harmonize the two channel-selection decision - marketers ask 3 ?s when selecting the type and location of retail outlets: 1. target market coverage - Which retailers will provide the best coverage of the target market? 2. Buyer requirement satisfaction - Which retailers will best satisfy the target market's buying requirements? How do they like to shop? 3. Profitability - which channel members will be the most profitable?
universal functions of distribution: transporting
adds value to a marketing strategy water transportation - slowest shipping mode, low cost, can handle a wide variety of goods, often the only practical approach to international distribution airfreight is expensive but fast
direct marketing
direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships direct-to-consumer messaging
Stage of product life cycle: Introduction
gain awareness competition: few product: one price: skimming or penetration promo: inform, educate place: limited
Which pricing strategy is most commonly used in the introductory stage of the product life cycle, particularly in high-tech industries?
skimming
In order to recover research and development costs rapidly and earn high initial high profits, Samsung set a high price for its 3D TVs to establish it as the highest quality product on the market. The pricing strategy Samsung used is called:
skimming pricing
Major corporations within the travel industry, such as Expedia, Marriott and Trip Advisor, have realized the growing importance of ________ and now offer consumers the option of purchasing directly from their cellular phone by installing the company's app.
M-commerce
paid social
primary demand, lead generation (get you interested enough to get your information), influencer/affiliate (branding, primary demand)
push-pull strategy
promotion and place strategies synced - producer's promotion blend personal selling, sales promo, advertising, and publicity promotion to channel members (wholesalers and retailers) - push promotion to business/final consumers - pull
A new microbrewery is impressed that they are receiving 40,000 page views a month on their website. Upon closer inspection of the site statistics, they notice that each unique user views 10 pages on average before leaving the site. How many unique users does the site attract per month
4,000
Post-sale activities employed by salespeople that are critical to strengthening customer relationships are known as:
Follow-up activities
T or F: A company's website often serves as a digital brochure and a virtual storefront for the firm.
True
T or F: Any point of contact between a buyer and a seller is a brand "touch point".
True
T or F: Companies focused on the business-to-business market identify other companies who will use their products to create their own products, to operate their own business, or to resell to other customers.
True
T or F: Twitter is an example of a microblog that provides short online journals that are pushed out to subscribers.
True
When buying media, there is always a tradeoff between:
b)The cost of the ad placement and the number of people exposed to the message
The riskiest and most time intensive type of decision for the buyer is the _____________.
new purchase
The document that states the price and the amount of a good or service that the buyer has agreed to purchase is called a(n):
purchase order
A sales practitioner whose job consists primarily of bringing in new clients by making sales calls on customers at their places of business is involved in:
field selling
Each week on Monday morning, Claire pours through her website statistics to track the effectiveness of their online campaigns. This Monday, she notices that although 3,500 users came to the site, they experienced a bounce rate of 30%. How many users left the site after landing on one page of the site?
1,050
Manufacturer's Sales Representatives:
Connect buyers and sellers and represent the seller in the sales process in exchange for a commission
When baby products (such as formula, diapers and bottles) portray a smiling, happy baby in the visual of the advertisement rather than the product features, they are utilizing a(n) _____________, fill in the blank, creative appeal to get the customer's attention.
Emotional
The chance of obtaining a straight rebuy from a buyer increases if the salesperson has:
Established an effective relationship with the buyer, based on good communication and providing value
T or F: Due to the high visibility of advertising, it is a very credible source of information for most consumers.
False
T or F: Since the business-to-business market is smaller and more personal than the business-to-consumer market, B2B buyers rarely utilize online information sources, such as search engines and social media, when gathering information about a potential supplier.
False
T or F: Since the percentage of shoppers who use mobile devices for viewing websites is still relatively low, optimizing a website for mobile platforms is not imperative as long as the site functions well from a desktop computer.
False
T or F: The B2B buying process only applies to buyers for businesses in for-profit industries.
False
Mr. Smith employs a team of sales representatives whose primary task is to answer calls from prospective and current customers who have received their company catalog and are interested in making a purchase. He compensates his team using a competitive hourly rate, and he is able to keep costs low since these salespeople do not meet with clients and therefore have no expense account for travel, meals, etc. His salespeople are most likely:
Inside sales representatives`
Similar to the consumer decision making process, the B2B buying process begins with the _____________, fill in the blank, step and ends with _____________, fill in the blank,.
Need recognition; Post purchase evaluation
Once a salesperson has identified leads, he/she next must engage in the process of _____________ in order to establish whether the lead has the authority, resources and willingness to buy.
Qualifying
The salesperson for the local radio station WOMX states that their listening audience is made up of 120,000 people in the coverage area. This number can also be referred to as the station's:
Reach
The measure of the amount of traffic referred to a site through search engines, affiliate programs, and display advertising is called:
Referral traffic
Owned media
Refers to a media channel that the company controls, such as a corporate website, giving it a way to interact extensively with its customer base
As a bartender of a local restaurant, you ask if a customer would like top shelf liquor, like Grey Goose, in his martini, instead of the standard brand. This is a form of:
Selling up
Closing is the point in the sales presentation when:
The seller obtains commitment from a buyer and finalizes the details of the sale
T or F: A traditional brick-and-mortar store can chose an independent store, planned shopping center or unplanned shopping district for its physical store location.
True
T or F: The easiest form of advertising to track and measure is online digital advertising.
True
T or F: The elements of the promotional mix that an advertiser can use to communicate with a customer include advertising, public relations, professional selling, sales promotions, direct marketing, and online/digital marketing.
True
T or F: The majority of consumers' time spent online with retailers takes place on their mobile devices.
True
Genesis Worldwide, Inc. purchases fragrances and cosmetics in bulk from major European manufacturers and resells them in smaller quantities to beauty store retailers throughout the Caribbean and Latin America. Genesis Worldwide, Inc. is acting as a _____________ in the channel of distribution.
Wholesaler
E-commerce is growing at a rapid pace in today's marketplace for all of the following reasons, EXCEPT: a)Consumer demand for accessibility to retailers at times and locations that are convenient for them b)Consumer confidence in the protection of their privacy and security of their financial information c)Low barriers to entry and low overhead costs, allowing companies to easily create an online storefront d)The ability to track purchases and offer selections and promotions tailored to the taste of each individual customer
b)Consumer confidence in the protection of their privacy and security of their financial information
When Elizabeth was asked to develop a promotional budget for the year, she planned out every marketing activity, researched the cost involved for each, and added it up to determine a total budget that would be needed to implement new marketing initiatives for the upcoming year. She submitted it to her supervisor for final approval before implementing the plan. This is an example of a(n) _____________ approach to budgeting.
bottom up
For traditional brick-and-mortar retailers, such as grocery stores and gas stations, the most fundamental decision in their distribution strategy is:
convenient locations
If a buyer is in a new buy situation, the seller will need to collaborate extensively with _____________ to make sure that the proposal includes the most detailed and accurate information possible. a)The seller's internal production team for information regarding capacity and costing b)The seller's internal financial and accounting departments to determine the terms of sale and possible trade discounts c)Salespeople from competitive firms who can provide insight into what the final selling price should be d)Both A & B e)All of the above
d) Both A & B
Triple Net (NNN) leases are often quoted to businesses BUT DO NOT include: a)Real estate taxes b)Building insurance c)Maintenance d)All of the above
d) all of the above
All of the following are advantages associated with advertising, EXCEPT: a)The advertiser can control the message b)The cost to reach each individual customer can be very low c)Mass audiences can be reached through widely used media d)Ability for the consumer to give immediate feedback through two-way communication e)Advertisers can target a particular market utilizing specific media choices
d)Ability for the consumer to give immediate feedback through two-way communication
A marketing channel in which the producer/manufacturer sells to consumers with no intermediaries involved is called a(n):
direct channel
Online exposure received on forums, rating/review sites, and consumer-generated viral marketing are considered to be:
earned/organic media
Jennifer Lopez and Marc Anthony have established fashion lines developed for and sold only through Kohl's department stores nationwide. Kohl's secured these lines to attract a particular market segment and build loyalty to these product lines, which will ultimately generate repeat traffic to the store since these brands cannot be purchased elsewhere. Their distribution arrangement can best be described as:
exclusive distribution
When a commercial for men's razor blades demonstrate how the blades work to create the closest shave, the brand is using a _____________ creative appeal to get the customer's attention.
informational
Maria's current vendor has announced an across-the-board rate increase that will increase the cost of doing business with this vendor by 10%. She cannot afford to pay the increase as it will cut too deeply into her profit margin, so she has two choices: buy less from the current vendor or look for a new vendor to supply a similar product at a more competitive price point. Either way, she will engage in a _____________ buying situation.
modified rebuy
Sephora is a large cosmetic retailer offering customers the opportunity to shop in their independently operated stores, smaller leased stores within major department stores, online on their website, through a mobile app and through their catalog. This is a prime example of:
omnichannel distribution
The benefit of a(n) _____________ is the degree of control the company has over the message a salesperson provides to a prospect.
standardized presentation
The percentage of customers who click on an ad or link of interest to them is called:
the click through rate
customer service factors
- dependability - communication - convenience - time
The buyer at a major paper plant is in need of new machinery to replace outdated technology. They have issued a(n) _____________, fill in the blank, to the manufacturers of this type of machinery to help them find the best product at the best price.
Request for proposal
demographic segmentation
Segmenting consumers on the basis of age, gender, ethnicity, etc.
Psychographic segmentation
Segmenting consumers on the basis of their attitudes, opinions, and lifestyle.
SMART + communication/marketing objectives
Specific Measurable Achievable Realistic Timely positioning, stimulate primary demand (persuading), market preparation (informing), branding (reminding - recall, likability, preference, insistence, advocacy (share))
What does the SMART acronym stand for regarding setting objectives?
Specific, Measurable, Agreed-upon, Realistic, Time-sensitive
Edgar is a research assistant who has been tasked with keeping the Purchasing Manager informed about potential vendors for a component needed for a new product. All vendor phone calls are referred to Edgar, who decides whether to forward the calls on to the Purchasing Manager. Edgar is:
a gatekeeper
multiple (differentiated) targeting
a strategy through which a firm targets several market segments with a different offering for each
display network
ad on a website - banner ads, rich media contextual (relating ad to content - ex.) new car ad on autoblog.com) road block (blocking out most of page) sponsorship broad strategic use: direct response or brand building
Business-to-business marketing involves buying and selling goods or services by all of the following except:
consumers
CPM
cost per thousand cost to reach 1,000 people - TV advertisements are the most expensive measure effectiveness of budget
As sales and profits decline significantly due to competition and low price points, marketers face the difficult decision about whether or not to stop selling a product and focus their efforts on other products that have more potential for success. This happens during the _____________ stage of the product life cycle.
decline
direct vs. indirect distribution
direct (ex. Dell) = manufacturer -> consumer vs. indirect = manufacturer -> wholesaler -> retailer -> consumer
types of sales transactions: transactional
emphasis on eliminating costs, avoiding delays, need and benefit are function, just need the thing - understand their own product needs, product can be easily substituted - ex.) paper towels at BrewLab
Purchase situations: modified rebuy
in between the two of straight rebuy and new buy - business purchases goods that have been purchased previously but changes either the supplier or some other elements of the previous order
Decision Making Unit (Buying Center) roles: Influencer
internal and external influencers
Product life cycle
introduction -> growth -> maturity -> decline
Stage of product life cycle: Maturity
maintain brand loyalty, highest total industry sales, can last a long time (ex. Microsoft) competition: many, monopolistic comp. product: full product line price: defend market share (highest prices), profit, sales level off promo: reminder oriented place: max outlets
Brew Lab has been purchasing grains by the bag from Midwest Brewing Supply for 3 years, with a great deal of satisfaction, but received a call from another firm that sells the same grains promising better shipping conditions and rates. Charles, the head brewer, calls Midwest Brewing Supply to ask if they can match the offer, and starts researching some other suppliers, now that he's aware that things could be better. Charles is engaging in a:
modified rebuy
Decision Making Unit (Buying Center) roles: Gatekeeper
most critical role, controls the flow of information; decides if information continues up the chain of management (nothing else happens without them)
channel conflict
occurs when: - channel member bypasses another member and sells/buys direct - dispute over how profit margins are distributed among channel members - manufacturers believe wholesalers/retailers aren't giving their offerings enough attention - manufacturer engages in dual distribution - when diff. retailers carry the same brands
penetration pricing
penetrating market with low price (i.e. Nintendo Wii)
When Hyundai introduced the Elantra, it priced the sedan at $3,000 less than the Toyota Corolla and Honda Civic, the leading competitors. This is an example of the pricing strategy called:
penetration pricing strategy
advertising appeals: fear
scare you away from something (ex. cigarettes)
scheduling methods: flighting
some times of the year don't advertise at all (ex. grass seed company)
brand preference
the degree of brand loyalty in which a customer prefers one brand over competitive offerings
reach
the number of people exposed to an advertisement with Facebook you could reach almost the entire planet, but how many can you afford to reach? -> budget
market exposure strategies: exclusive
very selective in where they choose to put their products (ex. BMW) if they have too many locations, it takes away some of your product's "mystique" more high-end, luxury items
earned media
word-of-mouth or buzz using social media where the advertiser has no control - company's customers become the channel self created, user generated, collaboration
keywords
words that describe the information the user is trying to locate in page content, embedded in HTML code tags, in the URL, links with reputable sites