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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


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