HRTM 450 FINAL- SOMANG plus more
if you contract for $1,000 worth of advertising for your restaurant, how much more in dollar sales do you have to generate to pay for the advertising? assume a contribution margin of 20%.
$5,000
The Marketing Mix
*The Four-P framework calls for marketing to decide: -PRODUCT: the product and its characteristics -PRICE: set the price -PLACE: decide how to distribute the product -PROMOTION: choose methods for promoting the product
reference groups, aspirational groups, opinion leaders, selective attention/distortion/retention.
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what are the 5 promotion tools?
- advertising - sales promotion - PR - personal selling - direct marketing
who is considered marketing intermediaries?
- agents - wholesalers - distributors
what are the 3 terms under channel organization?
- alliances - horizontal marketing systems - multichannel marketing
who is considered a specialist?
- broker - motivational house - junket reps
internal marketing tools
- communication - collaboration/unity - motivation - interaction and feedback - personal evaluation system
what are the 4 general pricing approaches?
- cost-plus pricing - break-even analysis - value-based pricing - competition-based pricing
what goes into the marketing approach to HR?
- create jobs that attract good people - improve the hiring process - promote teamwork - emphasize the importance of initial training - train continuously - manage emotional labor - implement a reward and recognition system
internal marketing process
- establishment of a service culture - development of a marketing approach to HR - dissemination of marketing information to employees
what are the major functions of marketing intermediaries?
- information - promotion - contact (access) - matching - negotiating
factors to consider when setting price
- internal factors - external factors
internal factors to consider when setting price
- marketing objectives - marketing mix strategy - costs - organization for pricing
external factors to consider when setting price
- nature of the market and demand - competition - other environmental factors (economy, resellers, government)
what are the 3 new product pricing strategies?
- prestige pricing - marketing skimming pricing - market penetration pricing
what are the 4 existing product pricing strategies?
- product bundle pricing - price adjustment strategies - BAR pricing - non-use of revenue management
what are the 3 psychological pricing strategies?
- reference prices - promotional pricing - value pricing
establishment of a service culture
- service culture - organizational culture ( = service marketing program)
marketing objectives
- survival - current profit maximization - market share leadership - product quality leadership - other objectives
price adjustment strategies
- volume discounts - discounts based on time of purchase - discriminatory pricing - revenue management
Demographic Environment
-Age Structure -Diversity -Family Structure -Geographic Shifts -Education
Economic Environment
-Global Economic Development -Changes in Income -Changing Consumer Patterns
Natural Environment
-Growing shortage of resources/raw materials -Increased pollution (recycle/reduce waste, ecotourism) -Increased government intervention
Political Environment
-Increasing Legislation -Changing Government Agency Enforcement -Increased Emphasis on Ethics and Socially Responsible Actions
Characteristics of Service
-Intangibility -Inseparability -Variability -Perishability
The Service Profit Chain
-Internal service quality -Satisfied and productive service employees -Greater service value --> Satisfied and loyal customers --> Healthy service profits and growth
Capacity Management
-Involve the Customer in the Service Delivery System -Cross-Train Employees -Use Part-Time Employees -Rent or Share Extra Facilities and Equipment -Schedule Downtime During Periods of Low Demand -Change the Service Delivery System
Demand Management
-Use Price to Create or Reduce Demand -Use Reservations -Overbook -Revenue Management -Use Queuing -Shift Demand -Create Promotional Events
Resources
-align resources with organization - determine necessary sources to be successful and who can provide them
Baby Boomers
-born 1946-1964 -one of the most powerful forces shaping the marketing environment -30% of population
Gen X
-born 1965-1976 -more skeptical -cynical of frivolous marketing pitches promising easy success
Gen Y
-born 1977-1994 -fluent and comfortable with computer, digital, and Internet technology
Hospitality Industry
-composed of businesses that offer accommodations and/or prepared food or beverage service and/or ENTERTAINMENT for traveler -dependent on TRAVEL INNDUSTRY -world's largest industry -CREATING CUSTOMER VALUE and SATISFACTION are at the heart of hospitality and travel industry marketing
Cultural Environment
-cultural values impact marketing -subcultures
Processes
-determine the optimal mix of segments -create cross functional team leaders
Stars
-high growth & share -profit potential -may need heavy investment to grow
Question marks
-high growth, low share -build into stars or phase out -require cash to hold market share
Dogs
-low growth & share -low profit potential
Cash cows
-low growth, high share -established, successful SBU's -product cash
Diversification
-new products, new markets
Stakeholders
-set strategies to satisfy
Nature of High-Performance Businesses
-stakeholders -processes -resources -organization
Organization
-structure, policies, and culture
Steps in Strategic Planning
1. Defining the company mission 2. Setting company objectives and goals 3. Designing the business portfolio
Steps in developing effective communication
1. ID target 2. determining the communication objectives 3. Designing the message 4. Select communication channel (personal and non-personal) 5. Select the message sources 6. measure the communications
PR PROCESS
1. Research the vehicle that will be most effective with your marketing objectives, mission, and culture. 2. Establish maketing objectives: build awareness, build credibility, stimulate the sales force and channel intermediaries. 3. Define the target audience. 4. Choose the PR message and vehicles: identify newsworthy events. 5. Publications: brochures, magazines, events or in house signage 6. Implement: relationship with media editors, crisis plans. 7. Evaluate results: exposure-how many mags were sold, how many flyers were distributed/no indications of how many people read, heard or remembered your message
what are the 6 steps to developing effective communication?
1. identifying the target audience 2. determining the communication objectives 3. designing the message 4. select the communication channel 5. select the message sources 6. measure the communications' results
what are the 5 major decisions of advertising?
1. setting the objectives 2. setting the budget 3. message decisions 4. media decisions 5. campaign evaluation
the communication process
1. source 2. encode 3. channel message 4. decode 5. receiver 6. response 7. feedback
Strategic Business Units (SBUs)
A single business or a collection of related businesses that can be planned for separately from the rest of the company -It has its own set of competitors -It has a manager who is responsible for strategic planning and profit performance
Mission Statement
A statement of the organization's purpose - what it wants to accomplish in the larger environment
nonroutine transactions
A unique guest transaction that occurs periodically, that a employee may experience
Understand the benefits and issues of digital direct marketing.
Advantages/Benefits: targeted and personal, interactive, immediate and timely, high engagement and social sharing capabilities Challenges/issues: user controlled, need to stay engaged and active, security and privacy issues
what does BAR pricing stands for?
Best Available Rate
Marketing research process:
Defining the problem and research objectives- exploratory research: gathers preliminary info that will help define the problem and suggest hypotheses * descriptive research: describes things as market potential for a product or the demographics and consumers attitudes * causal research: test hypotheses about cause-and-effect relationships. Developing the research plan: determining specific into needs- translate research objectives into specific info needs... gathering date- collect info that is already in existence. Implementing the research plan: collecting data- processing the data- analyzing the data Interpreting and reporting findings: interpret the findings- draw conclusions- report to management
What is direct marketing and its benefits to customers and companies?
Direct marketing consists of connecting directly with carefully (targeted) individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Benefits to customers: convenient/easy and private, ready to access to a wealth of products. Systems and products that better serve guest needs, interactive and immediate Benefits to companies: powerful tool for buildings customer relationships, can target small groups or individual consumers, con tailor products and services to specific customer tastes, low cost/efficient and speedy, alternative for reaching markets
3 types of Advertising
Informative, persuasive, reminder
Discuss the major forms of direct marketing, their features, and new methods/approaches.
Messages can be targeted, customer service tool, traffic, manage online reputation, low cost
1. Define hospitality marketing and discuss its core concepts (4 Ps).
Product: the product and its characteristics, Place: distribution- decide how to distribute the product, Price, Promotion: sales and advertising- choose methods for promoting the product Marketing is the process by which companies create value for customers and society, resulting in strong customer relationship which capture value from the customers in return.
Understand sales tasks.
Prospecting: finding and cultivating new customers Targeting: sales reps decide how to allocate their scarce time among prospects and customers Communicating: information about the company's products and services Selling: approaching, presenting, answering, objections, and closing sales Servicing: services to the customers, consulting, technical assistance, arranging, financing, and expediting delivery Information gathering: market research and intelligence work and filling in call reports Allocating: deciding to which customers to allocate scarce products to during product shortages Maintain strategic partnerships: senior salespeople and sales manager provide valuable planning assistance to clients
sampling, qualitative vs. quantitative research
Quantitative research- that places heavy emphasis on using formal standard questions and predetermined response options in questionnaires or surveys administered to large numbers or responders. Qualitative research- relies on the collection of data in the form of text using open-ended interview questions and observations. The results of qualitative research are descriptive rather than predictive (focus groups, interviews, and case studies). Sampling plan: a sample is a segment of the population selected to represent the pop as a whole. To design a sample four decisions must be made: who... how many... how will they be chosen... when will be given...? Methods: questionnaires- factual surveys, opinion surveys, interpretive surveys. Personal interview telephone, mail, electronic. Research method: *focus groups- exploratory, rich data but often hard extrapolate data bc it is not in-dept *in-dept interview- explanatory, in-dept, understand why and how *experimental method- scientific test, hard to control are variables *survey methods Research plan- gathering data: primary vs secondary-
Explain the role and nature of personal selling and the role of the sales force.
Sales personnel serve as the company's personal link to customers. The most expensive communication tool used by the company, but often the most effective tool. Sales orders are seldom written on the first call and often require five or more calls, particularly for larger orders.
Selling Concept
Starting Point - Factory Focus - Existing Products Means - Selling and Promoting Ends - Profits through Volume
The Marketing Concept
Starting Point - Market Focus - Customer Needs Means - Integrated Marketing Ends - Profits through Satisfaction
customer solution, customer cost, convenience, and communication
The 4 C's
Technological Environment
The most dramatic force affecting tourism and hospitality -Robots and machines -Computerized video checkout services -Electronic guest room locking systems -The development of the Internet
new focus of organizational team (in order)
^ customers ^ line employees ^ supervisors ^ department heads ^ general manager ^ corporate (everyone working to serve customers)
sample
a segment of population selected for marketing research to represent the population as a whole
marketing information systems (MIS)
a structure of PEOPLE, EQUIPMENT, and PROCEDURES to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers
Explain factors that affect the design of the promotion mix.
a) Advertising- paid, non-personal b) Sales promotion- short-term incentives c) Public relations- personal presentation, relationship building d) Direct marketing- individual consumers, interactive communication, direct mail, phone, email, internet, etc. e) Factors in setting the promotion mix: *type of product and market. *push-manufacturer/channels/consumers. Offering incentives to channels to push purchase. *pull- consumers/channels/manufacturer. Induce consumers to purchase from channel members. *buyer readiness state *product life-cycle stage
Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
a) Create awareness, stimulate demand, selective demand, encourage product trail, identify prospects, retain loyal customers, facilitate seller support-us foods, combat competitive promotional efforts, reduce sales fluctuations b) Advertising- paid, non-personal c) Sales promotion- short-term incentives d) Public relations- personal presentation, relationship building e) Direct marketing- individual consumers, interactive communication, direct mail, phone, email, internet, etc.
Explain the four planning activities of corporate strategic planning.
a) Defining the company mission: mission statement, can't be too narrow or broad, operate on core competencies, motivating, life-span of mission b) Setting company objectives and goals: a hierarchy of objectives (detailed supporting objectives) for each level of management, based on guest wants, create broad strategies and then add details c) Designing the business portfolio: design to satisfy customer needs (customer-satisfying process), not product, focus on growth
Outline the steps in developing effective marketing communications.
a) Identify the target audience b) Determining the communication objectives- buyer readiness stages: awareness, knowledge, liking, preference, conviction, purchase c) Designing the message: *message content-rational appeals, emotional appeals, moral appeals *message structure-draw conclusions, argument type, argument order *message format- headline, illustration, copy, color, body language d) Select the communication channel- personal and non-personal channels e) Select the message sources f) Measure the communications results- evaluate memory, feeling, attitude
Explain the steps involved in the business strategy planning process. (customer-driven marketing strategy and marketing mix)
a) Marketing segmentation, market targeting, market differentiation, market positioning b) 4 Ps: product, price, place, promotion c) 4 C's customer solution, customer cost, convenience, communication d) Analysis - Planning - Implementation - Control e) SWOT: Internal environmental analysis- strengths/weaknesses. External environmental analysis- opportunities/threats
Explain company-wide strategic planning.
a) Planning is the managerial process of developing and maintain a feasible fit between the organization's objectives, skills, and resources and its changing market opportunities. Strategic plan provides a roadmap of where to go.
Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high-performing business.
a) Stakeholders: Traditionally, most businesses focused on their stockholders. Today businesses increasingly recognize that they must nurture other stakeholders, including customers, employees, suppliers, and the communities where their businesses are located b) Processes: Companies are increasingly refocusing their attention on the need to manage processes even more than departments. They are studying how tasks pass from department to department as well as the impediments to creative output. They are now building cross-functional teams that manage core business processes c) Resources: To carry out processes, a company needs such resources as personnel, materials, machines, and information. More companies today have decided to outsource less critical sources d) Organization: Companies must work hard to align their organization's structure, policies, and culture to the changing requirements of business strategy
1. Understand the major trends of the world tourism development (for example, top destinations, new fast-growing markets, 2020 vision, etc.), as well as the U.S. tourism market (top international markets and marketing organizations at different levels).
a. 1. France 2. United States 3. Spain top destinations 2016 b. 1. Canada 2. Mexico 3. United Kingdom top international markets to the US c. Middle East expected to rise in international tourists arrivals
Describe the four levels of competition using an example.
a. A company can view its competitors as other companies that offer similar products and services to the same customers at a similar price b. A company can see its competitors as all companies making the same product or class of products c. A company can see its competitors more broadly as all companies supplying the same service d. A company can see its competition even more broadly as all companies that compete for the same consumer dollars
1. Discuss the benefits and negative impacts of tourism.
a. Benefits: direct employment, support industries and professions, multiplier effect, source of state and local taxes, stimulates exports or place-made products b. Negative: economic over-dependence= lack of diversity. Social-cultural impact- increases local cost of living. Environment impact- it can hurt the recourses that attrract
1. Understand the different marketing intermediaries in the hospitality/tourism.
a. Direct booking: account for 54.3% of a hotels reservations but only 46.% like to encourage direct booking. b. Online travel agencies: account about 6.5% of a hotels reservation. People often search through hotel choices and then go to brand.com to book the reservation
1. Describe the nature of distribution channels, and their functions.
a. Distribution channels: set of individual organizations involved in the process of making a product or service available to the user. b. Marketing-moves good from producers to consumers. Hospitality/tourism: moves customer to product. Upstream: raw materials, info to create a product service. Downstream: distribution channel-wholesalers/retailers c. Help complete transactions: information, promotion, contact, matching, negotiating d. Help fill orders: financing, risk taking, physical distribution
1. Understand how to conduct effective crisis management.
a. Focus on communication not on the crisis b. Sudden crisis comes without warning c. Smoldering crisis can be eliminated with good management i. Sexual harassment, food poisoning d. Good communication can reduce the impact e. Appoint a spokesperson i. Reports the FACTS ii. Timely statements iii. Notify press if there is a crisis-don't wait iv. Feed the media f. What crisis plans do you/should you have in place?
1. Identify four service characteristics that affect the marketing of a hospitality or travel product.
a. Intangibility- cannot be seen, tasted, felt, heard, or smelled before purchase b. Inseparability- cannot be separated from service providers c. Variability- quality depends on who provides them and when, where, and how d. Perishability- cannot be store for later sale or use
1. Explain the internal factors and external factor affecting pricing decisions,
a. Internal factors: marketing objectives, marketing mis strategy, costs, organization for pricing b. External factors: nature of the market and demand, competition, other environmental factors(economy, resellers, government)
1. Explain market segmentation, and identify the four bases for segmenting consumer markets.
a. Market segmentation: dividing a market into direct groups of buys who might require separate products or marketing mixes. *an identifiable component group of an overall market whose members have some common characteristics which a specific service appeals. b. Geography segmentation: region, types of settlement, media, consumption c. Demography segmentation: gender, age, income, job d. Psychological segmentation: social class, lifestyle, personality characteristics e. Behavior segmentation: share of customer frequency of purchase/usage patterns of usage
1. Understand the concept of market targeting and positioning.
a. Market targeting: evaluating each market segments attractiveness and selecting one or more segments to enter. *evaluating market segments-segment size & growth, segment structural attractiveness, company objectives and resources *selecting market segments- undifferentiated; differentiated, concentrated, micromarketing *choosing a market-coverage strategy...company resources...degree of product homogeneity...market homogeneity...competitors strategies b. Market positioning: a products position is the way the product is defined by consumers on important attributes. Products can be positioned- *on specific product attributes *on the needs they fill or the benefits they offer *for certain classes of users *against an existing competitor *against another product class
1. Explain the four marketing management philosophies and the differences between marketing and sales concept.
a. Marketing offerings (products): Customer wants and needs are fulfilled through some combination of tangible and intangible products and services b. Marketing process: 1. INVESTIGATION- understand the marketplace and customer needs and wants. 2. THOUGHTS- Design a customer-driven marketing strategy. 3. ACTION- Construct an integrated marketing program that delivers superior value. 4. RELATIONSHIP-Capture value from customers to create profits and customer equity.
personality and self-concept, Maslow's theory of motivation, Herzberg's theory
a. Maslow's theory of motivation: sough to explain why people are driven by particular needs at particular times b. Herzberg's theory: a two-factor theory that distinguishes dissatisfiers (factors that cause satisfaction) c. Personality is a person's distinguishing psychological characteristics that lead to relatively consistent and lasting responses to his or her environment d. Self-concept is the complex mental pictures people have to themselves, also known as slef-image. e. Lifestyle: a persons pattern of living as expressed in his or her activities, interests, and opinions. *values and lifestyles (VALS) framework- 8 segments
List and discuss the elements of the company's microenvironment, and macro-environmental forces that affect the company's ability to serve its customers.
a. Micro: the company (internal), suppliers, marketing intermediaries, customers b. Marco: competitive, demographic, economic, natural, technological, political, and cultural c. Internal: various departments
1. Understand the various pricing approaches and strategies.
a. New product: prestige pricing, market skimming pricing, market penetration pricing b. Existing product price strategies: product-bundle pricing. Price-adjustment strategies *volume discounts, based on time of purchase, discriminatory pricing, revenue management. BAR pricing, non-use of revenue management c. Psychological pricing: reference prices, rounding, length of field(past vs present), promotional pricing-loss leaders to sell other items-hotel rooms in Vegas, value pricing- offering a price below competitors permantly which differs from promotional pricing, in which price may be temporally lowered during a special promotion - example, taco bell d. Pricing approaches: cost-plus pricing, break-even pricing, value-based pricing, competition- based pricing
1. Understand the five stages of the product cycle and their characteristics in sales and profit in each stage.
a. Phase one and two: 1. product development: beings when the company finds and develops a new product idea *during development, sales are zero and the company's investment costs add up. 2. Introduction is a period of slow sales growth as the product is being introduced into market *profits are nonexistent at this stage due to high product expenses b. Phase three, four, and five: 3. Growth is a rapid market acceptance and increasing profits. 4. Maturity is a period of slowdown in sales growth bc the product has achieved acceptance by most of its potential buyers. *profits level offer decline due to increased marketing outlays to defend product against competition 5. Decline is the period when sales fall of quickly and profits drop
1. Know how the different PR tools are used (publications, events, news, speeches, public service activities, and identity media) and how to build PR in hospitality industry.
a. Press release: news story written by an organization to promote a product, organization, or person b. PR TOOL: Sponsorship: involves paying a fee to have your name associated with different things c. PR TOOL: Product placement: getting a company's product included as part of a television show, movie, video game, special event, or book d. PR TOOL: Internet and social media
1. Define the concept product, explain the core, facilitating, supporting, and augmented product, and give example for each concept.
a. Product: is anything that can be offered to a market for attention acquisition, use or consumption that might satisfy a want or need. Includes physical objects, services, places, organizations, and ideas. b. Core product: actual product-what are they buying c. Facilitating products: services that must be presented for the core product to be in places- security, register, check in/out d. Supporting products: extra products at add value to core product, to differentiate from competitors- area maps, spa, valet service e. Augmented products: delivery piece of the products- accessibility, atmosphere, customer interaction
1. Understand the different public relations activities: press relations, product publicity, corporate communications, lobbying, and counseling.
a. Public relations: create a positive image and customer preference through third-party endorsements. * strategic communication process that builds mutually beneficial relationships between organizations and their publics b. Press relations: place newsworthy information into the news media to attract attention ex. Food review write up in newspaper c. Product publicity: special events ex. Food festivals, newly renovated hotel d. Corporate communication: internal and external ex. Employee newsletter e. Lobbying: dealing with legislators and government officials to promote or defeat legislation f. Counseling: advising management about public issues and company positions and image
1. Explain the different segmentation for tourism (medical tourism, agri-tourism, etc.) and classification of visitor segments (GIT, IT, VFR, and other types).
a. Segmenting tourism markets: agritourism, space tourism, volunteer vacation, medical tourism b. Visitor segments: most commonly used- group inclusive tour, independent traveler, business vs. leisure traveler c. Plog's psychographic categorization: allocentric- backpackers or explores, adventures. Psychocentric- least adventurous groups, prefers the familiar and is not open to new experiences
1. Understand how sales promotion campaigns are developed and implemented.
a. Short term incentives to encourage the purchase or sale of a product or service b. Why doing promotions? Boost sales during slow periods, increase traffic at your location vs competitors, collective promotions ex. Restaurant week c. Most effective with advertising or personal selling... decrease in price and increase in perceived value (must have either) d. Phrasing... hurry in, limited time only, only two more days, special offer
Horizontal integration growth
acquiring a competitor
Backward integration growth
acquiring a supplier
Forward integration growth
acquiring distributor of your product
cost-plus pricing
adding a standard markup (ex: using markup rules of thumb such two and one-half times cost)
Horizontal integration
an integrative growth strategy in which one business acquires another business at the same supply chain level
Vertical integration
an integrative growth strategy in which one business acquires another business in its own supply chain
Product Development
an intensive growth strategy in which businesses develop new products or enhance theirs existing products (new products, existing markets)
Market Penetration
an intensive growth strategy that emphasizes more intensive marketing of existing products; sell more to existing customers and sell to new customers in existing markets (existing products, existing markets)
sources of competitive competition
annual reports, trade magazine articles, press release, brochures, and advertisements
Product
anything that can be offered to SATISFY a NEED or a WANT
define alliances
are contractual agreements developed to allow two organizations to benefit from each other's strengths
marketing dashboards
are like the instrument panel in a car or plane, visually displaying real time indicators to ensure proper functioning
define horizontal marketing systems
are two or more companies at one level that join to follow a new marketing opportunity
Buyer Readiness Stages
awareness, knowledge, liking, preference, conviction, purchase
Public relations
building relationships + crisis management; most commonly used is press release
Relationship Marketing
building strong ECONOMIC relationships between social TIES by following through on PROMISES
marketing objectives: current profit maximization
choose the price that produces the maximum current profit, cash flow or ROI
data warehouses
collect data from variety of sources and store it in an accessible location
Macro Environment
competitive, demographic, economic, natural, technological, political, and cultural
internal data
consists of electronic databases and non electronic information and records of consumer and marketing information obtained from within the company
markup formula
cost x markup= selling price (or) dollar cost / target cost percentage = selling price
Customer Satisfaction
depends on a product's PERCEIVED performance in delivering value relative to a buyer's expectations
if price increases and demand changes greatly =
elastic demand
why is internal marketing important?
enables employees to deliver satisfying products to the guests (increases employee engagement with the company's goals and brand advocacy) (Moment of Truth)
marketing intelligence
everyday information about developments in the marketing environment that help managers prepare and adjust marketing plans
Market Development
existing products, new markets; an intensive growth strategy that focuses on reaching new target markets
break-even analysis formula
fixed costs / (sale price - variable cost)
marketing objectives: market quality leadership
high prices to cover higher quality and guest service levels
mystery shoppers
hospitality companies often fire disguised shoppers to pose as customers and repost back on their experience
moves customers to product
hospitality/tourism
Discuss the process and advantages of integrated marketing communications in communicating customer value.
image- ch 13
1. Understand the major characteristics affecting consumer behavior, and some of the specific cultural, social, personal, and psychological factors that influence consumers.
image- ch 6
1. Understand the destination concept at different scales and types.
image-ch 17
Direct marketing
individual consumers, interactive communication; direct mail, phone, email, internet, etc.; no 3rd party, sent straight to consumer (email, mail, phone call etc.); builds relationship between company and consumer
if price increases and demand does not change =
inelastic demand
primary data
information collected for the specific purpose at hand
secondary data
information that already exists somewhere, having been collected for another purpose
define junket reps
intermediaries for premium players for casinos
define promotional mix
is a company's total marketing communications program and it consists of a specific blend of tools
define advertising
is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
consumer perceptions of price and value
is based on consumers motivations for buying the product (set the price based on value perceptions)
define internal marketing
is the promotion of a company's objectives, products and services to employees within the organization (employees = internal customers)
define persuasive advertising
is used as competition increases and a company's objective becomes building selective demand
define reminder advertising
is used for mature products since it keeps consumers thinking about the product
define informative advertising
is used to inform consumers about a new product or feature to build primary demand
big data
large volume of data
marketing objectives: market share leadership
low as possible prices to become the market share leader
marketing objectives: survival
low prices to cover variable costs and some fixed costs to stay in business
An internal marketing program requires a strong commitment from ________.
management
marketing skimming pricing strategy
marketers setting a products price relatively high at first and then lowering the price over time
moves goods from producers to consumers
marketing
descriptive research
marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
exploratory research
marketing research to gather preliminary information that will help to better define problems and suggest hypotheses
casual research
marketing research to test hypotheses about cause and effect relationships
Transaction
marketing's unit of MEASUREMENT and consists of a trade of values between two parties
What do you look at when you measure the communications?
memory, feelings, attitudes
What do you look at when designing the message?
message content, message structure, and format; also Attention, Interest, Desire, Action (AIDA)
define multichannel marketing
occurs when a single firm sets up two or more marketing channels to reach one or more customer segments
Advertising
paid; non-personal; large audiences; repeat many times
personal selling
personal presentation, relationship building; most expensive tool!!!
marketing objectives: other
prevent competition & attracting attention
promotional pricing strategy
reducing a product's or service's price for a short term to attract more customers and increase sales volume
define broker
resells to a retailer or consumer but does not actually acquire the product. brings buyers and sellers together for a commission
Intensive Growth
seeking opportunities for current businesses; focuses on cultivating new products or new markets, and sometimes both
Integrative Growth
seeking opportunities related to current businesses; emphasizes blending businesses together through acquisitions and mergers -Backward integration (acquiring a supplier) -Forward integration (acquiring distributor of your product) -Horizontal integration (acquiring a competitor)
Diversification growth
seeking opportunities unrelated to current businesses -Concentric diversification strategy -Horizontal diversification strategy -Conglomerate diversification strategy
Reference pricing strategy
sellers setting prices in relation to their competitors
cross selling
selling a different product or service to an existing customer
product bundle pricing strategy
selling a package or set of goods and services at a lower price than if they would charge if the customer bought them all separately
an internal marketing program flows out of a ___________ ___________
service culture
Market
set of ACTUAL and POTENTIAL buyers of a product
define distribution channels
set of individual organizations involved in the process of making a product or service available to the user
value pricing strategy
setting a price for a product or service based on what customers believe the item is worth
market penetration pricing strategy
setting the price of a product low to rapidly reach a wide fraction of the market and create word of mouth
Sales promotion
short term incentives; happens for short period of time to get attention
Execution styles
slice of life, fantasy, mood or image, lifestyle, musical, testimonial evidence, feature employees in the advertising, technical expertise
define motivational house
specializes in handling incentive travel
Exchange
the act of OBTAINING a desired object from someone by OFFERING something in return
Intangibility
the characteristic of service that Can't be seen, tasted, felt, heard, or smelled before purchase
Inseparability
the characteristic of service that Can't be separated from service providers
Perishability
the characteristic of service that Can't be stored for later sale or use
Variability
the characteristic of service that Quality depends on who provides them and when, where and how
Micro Environment
the company (internal), suppliers, marketing intermediaries, customers
Customer Value
the difference between the benefits that the customer gains from owning and/or using a product and the COSTS of obtaining the product
survey research
the gathering of primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
experimental research
the gathering of primary data by deleting matched groups of subjects, giving them different treatments controlling related factors
observational research
the gathering of primary data by observing relevant people, actions, and situations
Market-Oriented Strategic Planning
the managerial process of developing and maintaining a feasible fit between the organization's objectives, skills and resources and its changing market opportunities (provides the roadmap of where to go)
Interactive Marketing
the perceived service quality depends heavily upon the buyer-seller interaction during the service encounter
prestige pricing strategy
the practice of pricing a product or service at a high price in order to give the appearance of quality
Marketing
the process by which companies create value for customers and society, resulting in strong customer relationships which capture value from the customers in return
organizational culture
the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
marketing research
the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company
ethnographic research
trained observers interact with and/or observe consumers in their natural habitat
persuasive advertising
used as competition increases and a company's objective is attract customers from their competitors
reminder advertising
used for mature products since it keeps consumers thinking about the product
informative advertising
used to inform consumers about a new product or feature to build primary demand
Internal Marketing
using marketing principles on employees, effectively train and motivate customer contact employees
Internal Environment
various departments
up-selling
when a seller induces the customer to purchase more expensive items, upgrades or other add-ons in an attempt to make a more profitable sale
