marketing exam #3

Other advertising considerations

- Advertising agency- marketing services firm that assists companies in planning, preparing, implementing and evaluating all or portions of their advertising programs - International advertising decisions- complexities on how to adapt global advertising to unique characteristics of various country markets

Balancing customer and competitor orientations

- Competitor centered company- one that spends most of its time tracking competitors' moves and market shares & tries to find strategies to counter them - Customer centered company- focuses more on customer developments in designing its strategies - Market centered companies- watching both their customers and their competitors

social criticism of marketing (high prices, deceptive practices)

- High prices- critics say marketing system causes prices to be higher than they would under more sensible systems; 3 factors 1. High costs of distributions- greedy marketing channel members mark up prices beyond value of service → consumers pay for excessive costs in form of higher prices 2. High advertising and promotion costs- heavily promoted brands = seen as unneeded, doesn't add to functional value only psychological 3. Excessive markups- drug industry, auto repairs - deceptive practices- lead consumers to believe they will get more value than they actually do; 3 groups - Deceptive promotion includes practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock - Deceptive packaging- includes exaggerating package content through subtle design, using misleading labeling, misleading sizes - Deceptive pricing- practices falsely advertising factory or wholesale prices or a large price reduction from a phony high retail

how did walmart enter the Chinese Market? What were the restrictions?

- In order to comply with Chinese regulations, which at the time required foreign retailers to form a partnership with a domestic company in order to operate in the country, Walmart was able to comply with these regulations through the establishment of the joint venture - Walmart restrictions- stiff competition in seeking to conquer the most populous market; must reconsider strategies to succeed in china - logistics and distrubtion- US --> walmart cost advantage = supply chain efficiency; China --> bad infrusttructure (physical and attidunal --> china struggled to adapt to rigorous standards of modern supply chain management) - labor issues --> labor unions in china = common, US walmart fought against b/c drives up labor cost and damages competitive posision; power ibalance b/w walmart and suppliers = labor problems in factories - legitimacy - annual aduits on each factory but were described as fake b/c workers = coached on what to say; walmart = very demanding with suppliers --> threatens to take business elsewhere

advertising strategy: creating ads (execution)

- Message execution- must turn the big idea into an actual ad execution that captures target markets attention - Execution styles - creative team must find best approach, style, tone, words and format for executing message --> Slice of life- shows one or more typical people using the product in a normal setting ex. ikea --> Lifestyle- shows how a product fits in with a particular lifestyle --> Fantasy- creates a fantasy around the product or its use --> mood/ image- builds mood/ image around product or service like beauty, love, intrigue, pride --> Musical- employs music/ dance to engage viewers with brand --> Technical expertise- shows the company's expertise in making the product --> Scientific evidence- presents survey/ sci evidence that brand is better than others --> Testimonial evidence/ endorsement- features highly believable or likable sources endorsing product - Other factors: --> Tone- must choose tone for ad ex. Humor, funny --> Words- memorable and attention grabbing words --> Format- makes a difference in impact and cost --> Illustration- first thing reader notices --> Headline- must entice --> Copy- main block of text in ad = convincing - Consumer generated content- tapping consumers for marketing content, message ideas

digital marketing tools pt1 (online marketing, marketing websites, brand community websites, email marketing)

- Online marketing- refers to marketing via the internet using company websites, online advertising and promotions, email marketing, online video and blogs - Marketing websites- websites designed to engage customers and move them closer to a direct purchase or other marketing outcome - Brand community websites- do more than sell products, purpose is to present brand content that engages consumers & creates customer-brand community - Email marketing- sending highly targeted, highly personalized, relationship-building marketing messages via email

Value disciplines to deliver superior customer value (3)

- Operational excellence- company provides superior value by leading its industry in price and convenience- reduced costs efficient value delivery system, cheap reliable goods - Customer intimacy- provides superior value by precisely segmenting markets and tailoring p/s to exactly match needs of target customers; satisfies unique customer needs through close relationships - Product leadership- provides superior value by offering a continuous stream of leading-edge products or services, aims to make its own and competing products obsolete, open to new ideas, pursue solutions

Porter's basic competitive strategies (4)

- Overall cost leadership- company works hard to achieve the lowest production and distribution costs - Differentiation- concentrations on creating a highly differentiated product line and marketing program to come across as class leader in industry - Focus- focuses its efforts on serving a few market segments well rather than going after the whole market - Middle of the roaders- firms that do not pursue a clear strategy do the worse

promotion mix strategies (push or pull)

- Push strategy- using sales force and trade promotion to push the product through channels to final consumers; producer promotes the product (personal selling and trade promotion) to channel members who in turn promote it to final consumers Ex. john deere does little promoting of lawn mowers but it's salesforce works w/ home depot who push products to final consumers - Pull strategy- the producer directs its marketing activities (advertising, consumer promotion, direct/ digital media) toward final consumers to induce them to engage with and buy the product, creates demand vacuums that pulls product through channel ex P&G promotes tide products to consumers using promotion channels, if effective than consumers will demand tide from retailers like target which demands it from P&G

Evaluating advertising effectiveness and return on advertising investment

- Return on advertising investment- net return on advertising investment divided by costs of the advertising investment - Evaluate communication effects (measure the before and after effects of ads on products) - Evaluate sales and profit effects (affected by many factors like product features, price and availability; compare past sales/ profits with past ad expenditures or experiment- test effects of different ad spending levels

Describe Abercrombie's situation in the case and their target audience. Is targeting niche audiences ethical?

- Target = cool, sexy and younger consumers, using sex appeal - Exclusionary segmentation strategy- alienates and offends consumers not in the target market, estranged potential sales; but also allures customers bc they want to be a apart of it - Employees = expectation of being cool along with consumers, mandatory for them to maintain same standards expected from target consumers - targeting niche audiences can be ethical if its done transparantly and respectfuly. Ethical considerations often revolve around how companies use data, the transparency of their intentions, and the impact on the audience --> respect privacy, transparent, honesty in marketing, respectful engagement, impact --> ie LV = exclusionary via pricing, brands not easily attainable but highly desired --> ie. H&M large mannequins promote obesity

distribution channels

- Whole-channel view- designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network (distribution channel) - Channels between nations- moves company products from points of production to the borders of countries within where they're sold - Channels within nations- moves products from their market entry points to the final consumers - Distribution systems- can be scattered, inefficient, lacking in developing companies, can be complex, competitive and hard to penetrate due to differences in countries → poses a difficult challenge

advertising strategy: Creating ads (advertainment, brand integrations, native advertising, message & content strat, creative concept)

- break through clutter- marketers merge advertising & entertainment to create new avenues for reaching cons w/ engaging messages - Advertainment- make ads and brand content themselves entertaining/ useful so people want to watch them ex. Superbowl - Brand integrations- making brand inseparable part of some other form of entertainment or constant; product placements → embedding brands as props within other programing ex. TV shows have people drinking starbs - Native advertising- sponsored content, advertising or other brand-produced online content that looks in form and function like the other natural content surrounding it on a web or social media ex. paid video content on the Youtube app. This media is designed to match the visual design and function of natural content, appearing in your feed of recommended videos. - Message and content strategy- developing an effective message strategy begins with identifying customer benefits that can be used as content appeals, follows company's broader position and customer value-creation strategies - Creative concept- big idea that brings the message strategy to life in distinctive and memorable wat- simple message ideas become great ad campaigns

Global firm

- by operating in more than one country, gains marketing, production, research and development, and financial advantage, and financial advantages that are not available to purely domestic competitors

Integrated marketing communications Communication process

- carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the org & its products; Carefully blended mix of promotion tools: advertising, sales promotion, direct and digital marketing, PR, personal selling Ex. range rover campaign uses TV and print ads but also integrates web and social media content that enriches customer experience in ways traditional media can't - IMC involves identifying the target audience & shaping a well-coordinated promotional program to obtain desired audience response

Free market and legal system Individual companies and managers International marketers

- companies and managers are not responsible for making moral judgements → do what market and legal system allow - company should have a social conscious, companies and managers should apply high standards of ethics and morality when making corporate decisions regardless of system; Managers must look at personal integrity, corporate conscience, long-run consumer welfare - business standards and practice vary from countries, issue of ethics presents challenges ex. Bribes and kickbacks = illegal in US but standard in other countries

social criticisms of marketing (Planned obsolescence, perceived obsolescence, Poor service to disadvantaged consumers)

- companies cause their products to become obsolete before they actually should need replacement- accuse producers of using materials and components that break, wear, rust or rot sooner than they should - continually changing consumer concepts of acceptable styles to encourage more and earlier buying - urban poor have to shop in smaller stores with inferior goods and high prices, major chain retailers redline → draw redline around disadvantaged neighborhoods and avoid placing stores their

identifying competitors (industry and market POV) Assessing competitors (strategic group, benchmarking)

- company define competitors as all firms with the same product or class of products/ supply the same service --> Industry point of view- understand competitive patterns in its industry --> Market point of view- define competitors as companies satisfying customer needs/ build relationships with same customer group - what are their objectives strategies, strengths/ weakness, reactions to potential actions of company --> - Strategic group - group of firms in an industry following the same or a similar strategy in a given target market; may appeal to overlapping customer segments, customers may not see difference in each --> Benchmarking- comparing the company's products and processes to those of competitors or leading firms in other industries to identify best practices and find ways to improve quality and performance; increase company's competitiveness

Impact on other businesses

- company's marketing practices harm other companies and reduces competition --> acquisitions of competitors- competitors is shrinking; can lead to lower costs and prices plus better efficiency but can also be harmful --> marketing practices that create barriers to entry- large companies use patents and large promotion spending to drive out competition --> unfair competitive marketing practices- intentions of hurting/ destroying firms, set low prices, threaten suppliers, discourage buying of competitors products, use size and dominance to damage rivals

Direct response TV marketing kiosk marketing

- direct marketing via TV that persuasively describes a product and give customers a toll-free # or online site for ordering --> Infomercials- 30 min or longer ad programs for a single product; used to sell wares, refer customers to retailers, recruit members, attract buyers - placing information and ordering machines in stores, airports hotels, college campuses to improve shopping experience/ assist salespeople ex. home depot appliance finder kiosk help customers find and buy products they want on the spo

advertising budget (other considerations)

- dollars or other resources allocated to advertising a brand, specific factors include -> PLC- Depends on products life cycle, need large budget to build awareness and gain consumer trial (mature brands = lower budgets) -> High competition, undifferentiated brands (soft drinks)- needs heavy advertising to set them apart -> Economy- bad → cut advertising budget - little harm to short term sales but bad in long run to image and market share

Deciding to go global Deciding which markets to enter mode of entry choices

- domestic can be easier, must weight several risks and its ability to operate globally - must define its international marketing objectives and policies, decide what volume of foreign sales it wants, must choose how many countries it wants to market in, must decide on the types of countries to enter - exporting, joint venturing, direct investment

Joint venturing (4 types)

- entering foreign marketing by joining with companies to produce or market a product/ services; company joins with a host country partner to sell or market abroad; association is formed w/ someone in the foreign country 1. Licencing- simple way to enter int'l marketing, company enters into an agreement with a licensee in the foreign market; for a fee, the licensee buys the right to use the company's manufacturing process, trademark, patent, trade secret etc 2. Contract manufacturing- company makes agreements with manufacturer in the foreign market to produce its product/ service (decreased control over manufacturing process) 3. Management contracting- domestic firm supplies the management know-how to a foreign company that supplies the capital, the domestic firm exports management services rather than products 4. Joint ownership- consists of one company joining forces with foreign investors to create a local business where they share ownership & control

Environmental sustainability (types)

- generating profits while helping to save the planet; for customers' and company's well-being as well as planet's enviro future --> Greening activities- pay off for the firm and enviro in short run, focus on what companies already do to protect environment --> Beyond greening activities- pay off in the long term; look at the future --> Pollution prevention- eliminating or minimizing waste before it's created; internal green marketing programs → design and develop eco safer products, recyclable/ biodegradable packaging, better pollution controls, energy- efficient operations --> Product stewardship- not only minimizing pollution from production and product design but also all environmental impacts throughout the full product life cycle while also reducing costs --> Design for environment & cradle-to-cradle practices- thinking ahead to design products that are easier to recover, reuse, recycle, or safely return to nature after usage; can be highly profitable for the company --> New clean technology- develop and employ innovative new technologies (beyond greening)

Sustainability visitation Public actions to regulate marketing

- guide to the future, shows how company's products, services, processes and policies must evolve & what new technologies must be developed to get there - legislation laws cover issues like competition, fair trade practices, enviro-protection, product safety, truth in advertising, consumer privacy, packaging and labeling, pricing, selling

traditional direct marketing tools 6 digital direct marketing tools 3

- include face to face selling, direct mail marketing, catalog marketing, telemarketing, direct response TV marketing and kiosk marketing - online marketing (websites, online ads and promotions, email, online videos, and blogs), social media marketing, mobile marketing

digital marketing tools pt3 (social media, social media types, Mobile marketing)

- independent and commercial online social networks where people congregate to socialize and share messages, opinions, pictures, videos and other content ex. Facebook, Tik tok - markets can use existing social media (large, general interest social media networks grab most of the headlines) or interested bases conical media (cater to needs of smaller communities, target special interest groups ex. Goodreads) - features marketing messages, promotions and other marketing content delivered to on the go consumers through their mobile devices; Marketers use to engage customers anywhere and anytime during the buying and relationship-building process ex. Trip advisor "travel companion", mapmyrun, waze

economic environment political-legal environment cultutral environment

- international marketer must study each country's economy; two factors reflect country's attractiveness as a market --> industrial structure- shapes country's product and service needs, income levels, and employment levels --> income distribution- industrialized nations may have low, medium and high income households; must see who to target - must consider factors like the country's attitudes towards international buying, government bureaucracy, political stability and monetary regulation - sellers must understand the ways that consumers in different countries think about and use certain products before planning a marketing program; violating cultural norms - expensive/ embarrassing mistake

Direct and digital marketing direct to consumer brands (DTC)

- involve engaging directly with carefully targeted individual consumers and customer communities to obtain an immediate response and build lasting customer relationships --> Benefits- for buyers = convenient, easy and private, give buyers anywhere, anytime access to unlimited assortment of foods and a wealth of product and buying information --> for sellers: greater flexibility, allow marketers to make ongoing adjustments to prices and programs or to create immediate, timely and personal engagement offers ----> Real Time marketing- links brands to important moments in customers' lives - brands that avoid direct competition with established traditional brands by selling and shipping directly to consumers only through online and mobile channels; eliminates intermediaries, cutting costs and lowering prices → personalized offerings

Public policy issues consumer privacy government action

- irritation unfairness, deception and fraud --> Internet fraud- identity theft, financial scams --> phishing- type of identity theft that uses emails/ fraudulent web and online mobile sites to fool users into divulging personal data --> Online and digital security- fear snoopers eavesdropping on online transactions, social media postings, picking up personal/ financial info --> Access by vulnerable/ unauthorized groups- marketers of adult-oriented materials and sites found it difficult to restrict access by minors - invasion of privacy = toughest public policy confronting direct marketing industry; marketers know too much about consumers' lives → can take unfair advantage of consumers --> Big data- online behaviors entered into company's database --> Microtargeting- using big data analytics, direct marketers mine databases - gov agencies investigating do not call lists, do not mail lists, do not track online lists and can-spam legislations -->Fed gov- considering legislative actions to regulate how online, social media and mobile operations obtains/ use consumer info --> Advertising option icon- a little i inside a triangle that adds to behaviorally targeted online ads to tell consumers why they're seeing particular ads and allow them to opt out

social criticsims of marketing (False wants and too much materialism, Too few social goods, Cultural pollution)

- marketing system urges too much interest in material possessions → endless cycle of mass consumption - businesses oversell private goods at the expense of public goods = social costs Ex. private car ownership requires highways, traffic control, parking spaces (public goods) leads to social costs of traffic congestions - human sense being constantly assaulted by marketing and advertising; interruptions pollute people's minds with messages of materialism

Major advertising decisions

- objectives setting, budget decisions, message/ media decisions, advertising evaluation

social criticism of marketing (high pressure selling, unsafe products)

- persuades people to buy goods they had not thought of buying life insurance, real estate and used cars → sold not bought; Salespeople are trained to deliver smooth, canned talks to entice purchases → sell hard, but can damage relationships - poor product quality/ function, p/s not made well/ don't perform well; product safety = issue due to company indifference, increased product complexity & poor quality control; products deliver little benefit/ can be harmful → lead to liability suits

socially responsible marketing communication

- public policy makers have substantial body of laws and regulation to govern promotion tools --> Advertising and sales promotion- must avoid false/ deceptive advertising, sales must avoid bait and switch advertising that attracts buyers under false pretenses, cannot favor certain customers through use of trade promotions (resellers) --> Social and environmental causes - companies promote to relate to brands --> Personal selling- follow rules of fair competition, may not lie to consumers or mislead them about advantages of buying products, pitches must match advertising claims

Marketing concept societal marketing concept stratefic planning concept sustainable marketing concept

- recognizes that organizations thrive by determining the current needs and wants of target customers and fulfilling them more effectively and efficiently than competitors do - considers the future welfare of consumers - considers future company needs - calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company

Direct mail marketing catalog marketing telemarketing

- sending an offer, announcement, reminder or other item to a person at a particular address; uses highly selective mailing lists to send our letters, catalogs, ads, brochures, samples, videos - direct marketing through print, video, or digital catalogs that are mailed to select consumers, made available in stores or presented online - using phone to sell directly to consumers & business customers; Purchasing convenience, increased p/s info --> outbound- phone marketing to sell directly to consumers and businesses --> Inbound- toll-free numbers to receive orders referred from TV and print ads, direct mail, catalogs, websites or phone apps --> National do not call registry → legislation banned most telemarketing to restricted phone #s; business that break do not call laws = fined -> Junk phone calls → spam robocalls, damage to telemarketing industry

advertising objectives (3types)

- specific communication task to be accomplished with a specific target audience during a specific period of time, can be classified by their primary purpose to inform, persuade or remind 1. Informative- used heavily when introducing a new product category, objective = build primary demand; communicate customer value, build brand and company image, explain how a product works etc 2. Persuasive- becomes more important as competition increases, objective is to build selective demand; build brand preference, encourage brand switching, build brand community, create customer engagement --> comparative advertising = company compares brand with others 4. Reminder- important for mature products, helps maintain customer relationships and keep consumers thinking about product, objective is to help move consumers through buying process; maintain customer relationships, keep the brand in a customer's mind during seasons

selecting competitors to attack/ avoid design a competitive intelligence system

- strong or weak, good or bad, uncontested market spaces -> Customer value analysis- analysis conducted to determine what benefits target customers value and how they rate the relative values of various competitors' offers -> Blue ocean strategy- creating blue oceans of uncontested market space; By creating and capturing blue oceans, companies can largely take rivals out of the picture (red ocean = lots of competitors) --> Value innovation- creating all- new demand & rendering rivals obsolete - identifies vital types of competitive info needed and the best sources of info, collects info from the field and published data, checks info for validity and reliability, interprets, organizes it, and sends relevant info to decision makers

Advantages of social media marketing

- targeted and personal- allow marketers to create/ share tailored brand content with individual consumers and customer communities - Interactive- ideal for starting and participating in customer convos and listening to customer feedback - Immediate and timely- can reach customers anytime and anywhere with updates and relevant happenings - Real Time marketing - allows marketers to create and join consumer conversations around situations and events as they occur - Cost effective- free/ inexpensive to use - Engagement & social sharing capabilities- create customer engagement and community; customers involved with the brand & with each other

International trade system

- tariffs/ duties- governments may charge taxes on certain imported products designed to raise revenue or protect domestic firms - World trade organization- replaced GATT, reassess trade barriers and establish new results for int'l trade, imposes int'l trade sanctions, mediates global trade disputes - Regional free trade zones/ economic communities- group of nations organized to work toward common goals in the regulation of int'l trade ex. EU & NAFTA

Marketing ethics Corporate marketing ethics policies

- unethical marketing harms customers, society, damages company's reputation and effectiveness; sustainable marketing goals of long-term consumer and business welfare = achieved through ethical marketing conduct - broad guidelines that everyone in the organization must follow; Cover distributor relations, advertising standards, customer service, pricing, product development and general ethical standards

standardized global marketing adapted gkobal marketng

- uses the same marketing strategy and mix in all of the company's international markets - producer adjusts the marketing strategy and mix elements to each target market, results in more costs but larger share & return

how did walmart think global and act local? how did they adapt to local markets?

--> leadership- needed more local experience to take its chinese expansion to next level so got a new head that was a regional director of stores across asia --> labor unions: US Walmart = denies labor unions due to nature of them in US but in china they are organized so wal-mart china agreed to allow unions --> grocery section: originally offered meat and seafood american style in gorcery section (plastic wrapped) but fresh in china = pick it out yourself (live), wal-mart brough chinese wet markets indoors, allowed them to pick out their own dinner --> universities and governemnt work: promotes better training and educaton for china's burgeoning retail economy; walmart donated to china university to est china first institue for retailing research --> pricing: no more big discount store in china, targted chinas emerging middle class b/c poor cant afford their goods; walmart = more upscale in china, has luxury goods and cheap goods, more varied

5 major promotion tools

1. Advertising- any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor ex. broad cast, pring, online, mobile 2. Sales promotion- short term incentives to encourage the purchase or sale of a product or service Ex. discounts, coupons, displays 3. Personal selling- personal customer interactions by the firm's sales force to engage customers, make sales, and build customer relationships ex.sales presentations, trade shows 4. Public relations- activities designed to engage the company's various publics and build good relations with them 5. Direct and digital marketing- engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships Ex. mail, email, catalogs

5 sustainable markting principles

1. Consumer- oriented marketing- the company should view and organize its marketing activities from the consumer's POV; Work to sense, serve and satisfy needs of defined group of customers 2. Customer value marketing- company should put most of its resources into customer value- building marketing investments; Improve product's quality, features or convenience, build long-run consumers engagement, loyalty and relationships 3. Innovative marketing- requires that the company continuously seek real product and marketing improvements; never stop looking for new and better ways to create customer value

Approaches to marketing strategy and practice pass through three stages

1. Entrepreneurial marketing- companies started by individuals who live by their wits; visualize an opportunity, construct strategies and appeal 2. Formulated marketing- develop formal marketing strategies and adhere to them closely 3. Intrapreneurial marketing- large and mature companies lose marketing creativity and passion they started with as they become stuck in formulated marketing, need to build more marketing inistations

3 ways to manage int'l marketing activities (steps to becoming global)

1. Export department- firms gets into int'l market by shipping goods, company establishes export dept with a sales manager and assistance, can expand to include various marketing services 2. International divisions- companies get involved in several international markets and ventures (they may export to one country, license to another and have joint ownership to a third); create these to handle all its international activities; various operating units: --> Geographical orgs- country managers responsible for salespeople, sales branches, distributors, and licensees in their respective countries --> World product groups- operating units where each is responsible for worldwide sales of different product groups --> International subsidiaries- each responsible for their own sales and profits 3. Global organizations- top corporate management plan worldwide manufacturing facilities, marketing policies, financial flows and logistical systems, global operating units report to CEO of org not head of international division, trained in world wide operation

what were the 3 imperatives that walmart set out to accomplish?

1. Go global- generents 1/5th of global sales from its international division and aims to have 1/3rd of future revenues from overseas stores --> China's walmart operations are small in comparison with the rest of the world; walmart international = 2k stores 2. Go native- must adapt their model to the chinese market, walmart brought chinese wet markets in doors, allowed consumers to pick out own dinner → considered fresh to them --> Opens stores in a new city = walmart arrives early to research local consumption habits to fine-tune store merchandise --> Works with universities to promote better training and education for china's retail economy 3. Go up-market- US strategy = discount labels, targets china's middle class so their merchandise is more upscale and aligned with middle class materialism --> Luxury goods = liquor, duvets, variety of groceries (eel tanks) --> China's richest city has 12 wal-mart stores, in urban areas

Steps in developing effective marketing communication

1. Identifying target audience 2. Determining the communication objectives (Five As- marketing communications want to help build customer-brand relationships and guide customers through Five As of the customer journey --> Awareness, appeal, ask, act, advocacy) 3. Designing a message- must decide what to say (message content) and how to say it (message structure and format) --> Message content- rational appeals = audience self interest, emotional appeal = stir up pos/ neg emotions that motivate purchase, moral appeals = directed to audience's sense of what is right and proper (social cause) --> Message structure- Draw conclusion or leave it to the audience, Whether to present strongest arguments first or last, Whether to present one-sided argument or two sided argument --> Message format- headline, copy, illustration, eye catching, size

competitor analysis 3 steps

1. Identifying the company's competitors 2. Assessing competitors' objectives, strategies, strengths and weaknesses, and reaction patterns 3. Selecting which competitors to attack or avoid

competitive positions (4)

1. Market leader- the firm with the largest market share; Leads the other firms in price changes, new product introductions, distribution coverage and promotion spending ex. Amazon expand total demand, protect current market share through defensive/ offensive actions, expand market share further 2. Market challengers- runner-up firms that are fighting hard to increase their market share; must choose opponents careful; Observes what makes the market leader successful & improves it; Can launch full frontal attack (matching competitors product, ads, price, district. efforts)

major PR tools 7

1. News- PR professionals find or create favorable news about the company and its products/ people; occurs naturally or can suggest events to create news 2. Special events- ranges from news conferences and speeches, brand tours, and sponsorships to multimedia presentations/ educational programs designed to reach and interest target publics 3. Written materials- reach and influence their target markets, includes annual reports, brochures, articles and company newsletters/ magazines 4. Videos- used as communication tools 5. Corporate identity materials- help create a corporate identity that public immediately recognizes like logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, etc 6. Public service activities- improve public goodwill by contributing money and time 7. Web and social media- websites, blogs, etc

9 elements of communication

1. Sender- sends message to another party 2. Encoding- putting into symbolic form ex. Coke ad agency assembles pics into tv ad that will convey message 3. Message- set of symbols that sender transmits ex. Actual coke ad 4. Media- comm. Channels which message moves from sender to receive ex. TV program coke selects 5. Decoding- receiver assigns meaning to symbols encoded by sender ex. Consumer watches coke commercial and interprets it 6. Receiver- party receiving message ex. Customer watching ad 7. Response- reactions of the receiver after being exposed to message ex. Drink more coke 8. Feedback- receiver's response communicated back to sender ex. Coke research shows consumers like ad 9. Noise- unplanned static or distortion during comm. Process, results in receiver getting diff message than sent ex. Distracted consumer

product (3 strats) promotion (2 strats) price

1. Straight product extension- means marketing a product in a foreign market without making significant changes to the product Finding customers for the product 2. Product adaptation- involves changing the product to meet local requirements , conditions or wants; adapt to each new global culture 3. Product invention- consists of creating something new to meet the needs of consumers in a given country 1. Communication adaptation- rather than standardizing their advertising globally, companies will adapt their advertising messages to local markets 2. standardized communication- using same advertising messages globally, ex. Coca cola unifies "taste the feeling" theme - can set uniform price globally but could be too much for poor countries and not high enough for rich ones (economic and technological forces impact pricing); foreign prices usually higher than their domestic prices due to add costs; some companies make simpler versions of their products available that can be sold at lower prices

competitive positions (4)

3. Market followers- other runner- up firms that want to hold their share without rocking the boat; Learns from market leader's experience and copy/ improve with less investments, must know how to hold current customers and win new ones, right balance; tries to bring distinctive advantages to target market (location, services, finance), major target of attack by challengers; Must maintain customer value and enter new markets as they open 4. Market nichers- firms that serve small segments not being pursued by other firms; Smaller firms with limited resources, ends up knowing target customer group so well it meets needs better than other firms; Charges a lot due to added value (high margins), little interest to major competitors, key = specialization; Serves a given customer size group, focuses on specific customers, geographic market, quality price (low/ high end of market), service nichers (services not usually available)

Steps in developing effective marketing communication pt2

4. Choosing communication channels and media - Personal communication channels- two or more people communicate directly with each other and might communicate face- to face, OTP, mail, email, text, chat; good for feedback --> Channels: independent experts, neighbors, fam, word of mouth influence, opinion leaders --> Buzz marketing- cultivating opinion leaders and getting them to spread info about a p/s to others in their communities - Non personal- media that carry messages without personal contact or feedback; includes major media, atmospheres, events --> Major media- broadcast media (TV), print media, display media (billboards), online and digital media -->Atmospheres- designed enviro that create/ reinforce buyer's leanings toward buying a product -->Events- staged occurrences that communicate message to target audience

5 sustainable markting principles pt2

4. Sense-of-mission marketing- means that the company should define its mission in broad social terms rather than narrow product terms, serves best long-run interests of brand and consumers; clear sense of direction 5. Societal marketing- company makes marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests and society's long-run interests; societal classification of products: --> Deficient products- neither immediate appeal nor long run benefits ex. Bad tasting and ineffective medicine --> Pleasing products- give high immediate satisfaction but may hurt consumers in the long run ex. Cigarettes --> Salutary products- low immediate appeal but may benefit consumers in long run ex. Bike helmets --> Desirable products- both high immediate satisfaction and high long-run benefits ex. Nutritious and tasty fast-casual food

Steps in developing effective marketing communication pt3

5. Selecting message source- highly credible / popular = more persuasive; some hire celebs, must pick write spokesperson 6. Collecting feedback- must research effect on target audience, ask if they rem content, how many times they saw it, what they recall, how they felt about it and past/ present attitudes toward brand/ company; measure behavior → how many purchases, did they advocate it

Consumerism

an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers --> Sellers rights- right to introduce new safe products, charge any price, spend any amt to promote, use any product message, buy incentive program --> Buyers rights- right not to buy product offered for sale, expert the product to be safe, expect the product to perform as claimed --> Additional consumer rights- right to be well informed about product, protected against questionable products/ marketing practices, influence products and practices to improve quality of life, consumer in a way to preserve world for future generations

Environmentalism

an organized movement of concerned citizens and businesses, and government agencies designed to protect and improve people's current and future living environment; Want people and orgs to operate with more care for enviro, concerned with humanity's damage to ecosystem by global warming, resource depletion, toxic and solid wastes, air pollution, chemical foods

sustainable marketing

calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs

Public relations

consists of activities designed to engage the company's various publics and build good relations with them --> Press relations/ press agency- placing newsworthy info in media --> Product and brand publicity - publicizing specific products/ brands --> Public affairs- maintain national/ local comm. relationships --> Lobbying- maintain relationships with legislators/ gov officials to influence legislation and regulation --> Investor relations- maintain relationships with shareholders and others --> Development- working with donors/ members of nonprofits to gain support - Role and impact- stronger and less costly impact than ads; powerful brand building tool, interesting brand stores, events, content = picked up by media or shared by consumers virally giving

advertising strategy

consists of two major elements of creating advertising message and selecting advertising media; Creative dept creates good ads then media dept selects and purchases best media for carrying ads to desired target audience 1. creating ads 2. advertising media

exporting Direct investment

entering foreign markets by selling goods produced in the company's home country with little modification; produces all its goods in home country, involves the least change in the company's product lines, organization, investment or mission → simplest way to enter --> Indirect exporting- working through independent international marketing intermediaries --> Direct exporting- handling their own exports the development of foreign based assembly or manufacturing facilities, biggest involvement in foreign markets (very risky) --> Firm keeps full control over the investment and can develop manufacturing and marketing policies that serve its goals, develops deeper relationship with gov, customers, suppliers

setting total promotion budget (4 methods)

how much to spend on promotion budget; four methods: 1. Affordable method- set the promotion budget at the level they think the company can afford - small business use this 2. Percentage of sales method- setting their promotion budget at a certain percentage of current or forecasted sales or as percentage of unit sales price; relationship b/w promotion spending, selling price, profit per unit 4. Competitive parity method- setting promotion budgets to match competitors' outlays; monitor competitors' promotion activity or set budgets based on industry average 5. Objective and task- company sets its promotion budget on what it wants to accomplish with promotion; defines specific promotion objectives, determines tasks needed to achieve them and estimates costs of performing these tasks → sum of costs = budget

digital marketing tools pt2 (online advertising, blogs, videos)

online advertising- advertising that appears when consumers are browsing online, including display ads and search related ads; attracts visitors to internet, mobile and social media sites --> Online display ads- appear anywhere on an internet user's screen and related to information being viewed --> Search related ads- text and image based ads and links appear atop or alongside search engines results on sites such as Google (Search advertiser- buys search terms or keywords from the search site and pays only if consumers click thru to its site) - Online videos- posting digital video content on brand websites or on social media; engage consumers --> viral marketing- involves creating videos, ads and other marketing content that are so infectious that consumers will seek them out/ pass them along to their friends - Blogs- online forums where people and companies post their thoughts and other content usually related to narrowly defined topics

what role does corporate social responsibility play here?

refers to a company's initiative to take responsibility for its effects on environmental and social well-being; strategy to not just grow profits but also take an active and positive social role in the world around them --> no diversity and inclusivity, nonaccessible fashion, targets preteens/ is youth oriented company thus affecting their mental well-being, issues of body image and gener stereotypes, brand represented image teens should strive for --> ie. no XL or XXL for women --> ie. employee discrimination (hijab incident, muslim fired) --> ie. ads ft large beefy men and skinny tall women = unrealstic beauty standards and promoted unhealthy expectations

New marketing communications model

several major factors change the face of today's marketing communications - consumers (digital = better informed and more communications empowered) - Marketing strategies (shifting away from mass marketing, focusing more on engaging customers/ building relationships) - Digital tech- (caused changes in ways companies and customers communicate with each other and spawned new info/ comm. tools) ex. Online, social, mobile, email, video content on phone and TV - Content marketing- create, inspire, and share brand messages and conversations with and among customers across a fluid mix of paid, owned, earned and shared communication channels

promotion mix (marketing communications mix)

the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

advertising strategy: advertising media (4 steps)

vehicles to which advertising message are delivered to intended audience; four steps 1. Determining reach, frequency, impact and engagement: --> reach = measure of percentage of people in target market exposed to ad campaign during given time period --> Frequency= measure of how many times average person in target market is exposed to message --> Media impact- qualitative value of message exposure through given medium --> Engage- consumers rather than reach them, relevance of ad content for audience = more important than how many people it reaches, happens inside consumer head 2. Choosing among major media types of TV, digital, mobile and social media, direct mail, magazines, radio and outdoor --> Media multitaskers- people who absorb more than one medium at a time ex. Watch TV while being on phone 3. Selecting specific media vehicles- TV vehicles include modern family and abc world news tonight; magazine vehicles include people, espn; online vehicles include twitter, snapchat 4. Deciding on media timing- decide how to schedule ads over time