Marketing 400 exam 4 KSU

promotion decision process

(1) developing, (2) executing, and (3) assessing the promotion program

personal selling process

(1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up

sales management

(1) sales plan formulation, (2) sales plan implementation, and (3) salesforce evaluation

development (promotion decision process)

- Who is the target audience? - What are (1) the promotion objectives, (2) the amounts of money that can be budgeted for the promotion program, and (3) the kinds of promotion to be used? - Where should the promotion be run? - When should the promotion be run?

pulse (burst) schedule

A flighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion, or introduction of a new product.

social network

A single social media site with millions of users interacting with each other, like Facebook, Twitter, and LinkedIn

competitive advertising (product advertisements)

Advertising that promotes a specific brand's features and benefits. - The objective of these messages is to persuade the target market to select the firm's brand rather than that of a competitor. - A form is comparative advertising: shows one brand's strengths relative to those of competitors.

traditional vs social media

Both: Ability to reach both large & niche audiences Traditional Media: - Expensive, restrictions on who can access - Normally requires team of people, high-skill - Take a long time to communicate information Social Media: - Cheap, no restrictions on who can access - Anyone can do it, low-skill - Instantaneous information

receiver (communication process)

Consumers who read, hear, or see the message sent by a source during the communication process

push strategy

Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. Manufacturer --> Wholesaler --> Retailer --> Consumer

introduction stage (product life cycle)

Informing consumers in an effort to increase their level of awareness is the primary promotional objective in this stage of the product life cycle. In general, all the promotional mix elements are used at this time, although the use of specific mix elements during any stage depends on the product and situation.

product life cycle

Intro: To inform Growth: To persuade Maturity: To remind Decline: To phase out

automatic vending (non-store retailing)

Non-store retailing includes vending machines, or v-commerce, which make it possible to serve customers when and where stores cannot. Machine maintenance, operating costs, and location leases can add to the cost of the products, so prices in vending machines are often higher than those in stores.

independent retailer

One of the most common forms of retail ownership is the independent business owned by an individual. Independent retailers account for most of the 3.7 million retail establishments in the United States and include hardware stores, convenience stores, clothing stores, and electronics stores. In addition, there are 90,600 furniture stores, 113,500 gas stations, and 278,700 car dealerships. For the independent retailer, the advantage of this form of ownership is simple: The owner is the boss. For customers, the independent store can offer convenience, personal service, and lifestyle compatibility.

Flighting (intermittent) schedule

Periods of advertising are scheduled between periods of no advertising to reflect seasonal demand.

news conference

Representatives of the media are all invited to an informational meeting, and advance materials regarding the content are sent. This tool is often used when new products are introduced or significant changes in corporate structure and leadership are being made.

Success

Success in social media marketing relies heavily on the ability of a marketing program to convert "passive receivers" of the message to active "evangelists" who will spread favorable messages about the brand.

growth stage (product life cycle)

The primary promotional objective of this stage is to persuade the consumer to buy the product rather than substitutes, so the marketing manager seeks to gain brand preference and solidify distribution. Sales promotion assumes less importance in this stage, and publicity is not a factor because it depends on novelty of the product. The primary promotional element is advertising, which stresses brand differences. Personal selling is used to solidify the channel of distribution

retail utilities

The utilities provided by retailers create value for consumers. Time, place, form, and possession utilities are offered by most retailers in varying degrees, but one utility is often emphasized more than others.

continuous (steady) schedule

When seasonal factors are unimportant, advertising is run at a continuous or steady schedule throughout the year.

wheel of retailing

a concept that describes how new forms of retail outlets enter the market

public relations

a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

gross ratings points (GRPs)

a reference number used by advertisers that is obtained by: reach x frequency.

sales promotion

a short-term inducement of value offered to arouse interest in buying a product or service. Used in conjunction with advertising or personal selling, sales promotions are offered to intermediaries as well as to ultimate consumers. Coupons, rebates, samples, contests, and sweepstakes, such as the M&M's promotion pictured above, are just a few examples of (this term) discussed later in this chapter.

product advertisements

advertisements that focus on selling a product or service; forms include pioneering (informational), competitive (persuasive), and reminder

promotional elements (fig 17-2)

advertising, personal selling, public relations, sales promotion, and direct marketing. 3 of these: advertising, sales promotion, and public relations—are often said to use mass selling because they are used with groups of prospective buyer. 2 of these: personal selling uses customized interaction between a seller and a prospective buyer. Personal selling activities include face-to-face, telephone, and interactive electronic communication. Direct marketing also uses messages customized for specific customers.

manufacturer's agents

agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Manufacturers' agents act as a producer's sales arm in a territory and are principally responsible for the transactional channel functions, primarily selling.

online retailing (non-store retailing)

allows consumers to search for, evaluate, and order products through the Internet. For many consumers, the advantages of this form of retailing are the 24-hour access, the ability to comparison shop, in-home privacy, and variety.

advertising

any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition is important because the space for the advertising message normally must be bought. A full-page, four-color ad in Time magazine, for example, costs $366,600. An occasional exception is the public service announcement, where the advertising time or space is donated. The non-personal component of advertising is also important. Advertising involves mass media (such as TV, radio, and magazines), which are non-personal and do not have an immediate feedback loop as does personal selling

brokers

are independent firms or individuals whose principal function is to bring buyers and sellers together to make sales. Brokers, unlike agents, usually have no continuous relationship with the buyer or seller but negotiate a contract between two parties and then move on to another task. Are used extensively by producers of seasonal products (such as fruits and vegetables) and in the real estate industry.

hypermarket

are large stores (often more than 200,000 square feet) based on a simple concept: Offer "everything under one roof," thus eliminating the need to stop at more than one location. These stores provide variety, quality, and low prices for groceries and general merchandise items.

truck jobbers

are small wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers. They usually handle limited assortments of fast-moving or perishable items that are sold for cash directly from trucks in their original packages. Truck jobbers handle products such as bakery items, dairy products, and meat.

drop shippers (or desk jobbers) (limited-service wholesailers)

are wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it. They simply solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer. (this term) is used for bulky products such as coal, lumber, and chemicals, which are sold in extremely large quantities.

pull strategy

by directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. Seeing demand from ultimate consumers, retailers order the product from wholesalers and thus the item is pulled through the intermediaries. Manufacturer <-- Wholesaler <-- Retailer <-- Consumer

intertype competition

competition between very dissimilar types of retail outlets ex: A local bakery may compete with a department store, discount outlet, or even a local gas station.

news release

consisting of an announcement regarding changes in the company or the product line. The objective of this is to inform a newspaper, radio station, or other medium of an idea for a story.

merchandise line

describes how many different types of products a store carries and in what assortment

full service agency

does research, selects media, develops copy, and produces artwork; also coordinates integrated campaigns with all marketing efforts

direct mail and catalog retailing (non-store retailing)

eliminates the cost of a store and clerks, "the store that comes to the door"

Figure 18-3

figure 18-3

figure 18-6

figure 18-6

public service announcement

free space or time donated by the media. For example, the charter of the American Red Cross prohibits any local chapter from advertising, so to solicit blood donations local chapters often depend on PSAs on radio or television to announce their needs. - non-profit organizations rely heavily on these

rack jobbers (limited-service wholesailers)

furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers, which means they retain the title to the products displayed and bill retailers only for the merchandise sold. Familiar products such as hosiery, toys, housewares, and health and beauty items are sold by them

buyer turnover

how often new buyers enter the market to buy the product

pre-purchase (stage of consumer purchase)

in this stage advertising is more helpful than personal selling because advertising informs the potential customer of the existence of the product and the seller. Sales promotion in the form of free samples also can play an important role to gain low-risk trial. When the salesperson calls on the customer after heavy advertising, there is some recognition of what the salesperson represents. This is particularly important in industrial settings in which sampling of the product is usually not possible.

full service

include most specialty stores and department stores, provide many services to their customers.

noise

includes extraneous factors that can work against effective communication by distorting a message or the feedback received. (this term) can be a simple error, such as a printing mistake that affects the meaning of a newspaper advertisement or the use of words or pictures that fail to communicate the message clearly. (this term) can also occur when a salesperson's message is misunderstood by a prospective buyer, such as when a salesperson's accent, use of slang terms, or communication style make hearing and understanding the message difficult.

types of ownership

independent retailer, corporate chain, contractual systems

merchant wholesaler

independently owned firms that take title to the merchandise they handle. They go by various names, including industrial distributor. Most firms engaged in wholesaling activities are merchant wholesalers.

contractual system

involve independently owned stores that band together to act like a chain.

corporate chain

involves multiple outlets under common ownership. Macy's, Inc., for example, operates 670 Macy's department stores in 45 states. Macy's also owns 38 Bloomingdale's, which compete with other chain stores such as Saks Fifth Avenue and Neiman Marcus. Finally, Macy's recently acquired Bluemercury, which includes 124 specialty beauty and spa services stores.

telemarketing (non-store retailing)

involves using the telephone to interact with and sell directly to consumers. Compared with direct mail, (this term) is often viewed as a more efficient means of targeting consumers. Insurance companies, brokerage firms, and newspapers have often used this form of retailing as a way to cut costs but still maintain access to their customers.

television home shopping (non-store retailing)

is possible when consumers watch a shopping channel on which products are displayed; orders are then placed over the telephone or via the Internet. Currently, the three largest programs are QVC, HSN, and Evine. QVC ("quality, value, convenience") broadcasts live 24 hours each day, 364 days a year, and reaches 360 million homes in the United States, United Kingdom, Germany, Japan, Italy, and China

encoding (communication process)

is the process of having the sender transform an idea into a set of symbols. During the communication process.

reminder institutional advertisements

like reminder ads for products, simply bring the company's name to the attention of the target market again. Ex: The Army branch of the U.S. military sponsors a campaign to remind potential recruits of the opportunities available in the Army.

pioneering institutional advertisements

like the pioneering ads for products discussed earlier, are used for announcements about what a company is, what it can do, or where it is located.

source (communication process)

may be a company or person who has information to convey.

publicity tools

methods of obtaining non-personal presentation of an organization, product, or service without direct cost

nonstore retailing

occurs outside a retail outlet through activities that involve varying levels of customer and retailer involvement. Figure 16-6 shows six forms of non-store retailing: automatic vending, direct mail and catalogs, television home shopping, online retailing, telemarketing, and direct selling

scrambled merchandising

offering several unrelated product lines in a single store, is common. For example, the modern drugstore carries food, cosmetics, magazines, paper products, toys, small hardware items, and pharmaceuticals. Supermarkets sell flowers, DVDs, and pharmaceuticals, in addition to selling groceries.

social media

online media where users submit comments, photos, and videos—often accompanied by a feedback process to identify "popular" topics.

limited service

outlets provide some services, such as credit and merchandise return, but not others, such as clothing alterations. General merchandise stores such as Walmart, Kmart, and Target are usually considered limited service outlets. Customers are responsible for most shopping activities, although salespeople are available in departments such as consumer electronics, jewelry, and lawn and garden.

stages of the consumer purchase

pre-purchase, purchase, post-purchase

order taker

processes routine orders or reorders for products that were already sold by the company.

competitive institutional advertisements

promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers. Ex: America's milk processors and dairy farmers use their "Milk Life" campaign to increase demand for milk as it competes against other beverages.

in-house agency

provides range of services, depending on company needs

types of limited-service wholesailers

rack jobbers, cash and carry wholesalers, drop shippers (or desk jobbers), truck jobbers

Cost per thousand (CPM)

refers to the cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000)

breadth of product line

refers to the variety of different items a store carries, such as appliances and books.

self service

requires that customers perform many functions during the purchase process

order getter

sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service. Like order takers, order getters can be inside (an automobile salesperson) or outside (a Xerox salesperson).

direct selling (non-store retailing)

sometimes called door-to-door retailing, involves direct sales of products and services to consumers through personal interactions and demonstrations in their home or office. A variety of companies, including familiar names such as Avon, Fuller Brush, Mary Kay Cosmetics, and World Book, have created an industry with more than $36 billion in U.S. sales, and $184 billion worldwide, by providing consumers with personalized service and convenience

limited-service agency

specializes in one aspect of creative process; usually provides creative production work; buys previously unpurchased media space

category killers

specialty discount stores that heavily dominate their narrow merchandise segment

advocacy institutional advertisements

state the position of a company on an issue.

cash and carry wholesalers (limited-service wholesailers)

take title to merchandise but sell only to buyers who call on them, pay cash for merchandise, and furnish their own transportation for merchandise. They carry a limited product assortment and do not make deliveries, extend credit, or supply market information. This type of wholesaler is common in electric supplies, office supplies, hardware products, and groceries.

pioneering advertising (product advertisements)

tell people what a product is, what it can do, and where it can be found. The key objective of (this term) (such as the Mercedes-Benz ad introducing its self-driving car) is to inform the target market. Informational ads, particularly those with specific message content, have been found to be interesting, convincing, and effective.

retailing mix

the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise

frequency

the average number of times a person in the target audience is exposed to a message or advertisement. Like reach, greater (this term) is generally viewed as desirable. Studies indicate that with repeated exposure to advertisements consumers respond more favorably to brand extensions.

promotional mix

the combination of one or more of the communication tools used to inform, persuade, or remind prospective buyers. Five communication tools: advertising, personal selling, sales promotion, public relations, and direct marketing

integrated marketing communications

the concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences

level of service

the degree of service provided to the customer from three types of retailers

response

the impact the message had on the receiver's knowledge, attitudes, or behaviors.

purchase (stage of consumer purchase)

the importance of personal selling is highest, whereas the impact of advertising is lowest. Sales promotion in the form of coupons, deals, point-of-purchase displays, and rebates can be very helpful in encouraging demand. In this stage, social media can play an important role in the final decision by delivering promotions and giving consumers control of the process.

message (communication process)

the information sent by a source to a receiver during the communication process

channel of communication (communication process)

the means of conveying a message to a receiver during the communication process

maturity stage (product life cycle)

the need is to maintain existing buyers, and advertising's role is to remind buyers of the product's existence. Sales promotion, in the form of discounts and coupons offered to both ultimate consumers and intermediaries, is important in maintaining loyal buyers

reach

the number of different people or households exposed to an advertisement.

traffic generation

the outcome of an offer designed to motivate people to visit a business. Ex: Home Depot's opt-in email alerts

rating

the percentage of households in a market that are tuned to a particular TV show or radio station. In general, advertisers try to maximize reach in their target market at the lowest cost.

communication

the process of conveying a message to others. Requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding

decoding (communication process)

the process of having the receiver take a set of symbols, the message, and transform the symbols into an idea. During the communication process.

lead generation

the result of an offer designed to generate interest in a product or service and a request for additional information. Ex: Four Seasons Hotels now sells private residences in several of its properties and sends direct mail to prospective residents asking them to request additional information on the telephone or through a website

direct orders

the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. Ex: Zulilly.com asks customers to create a list of their favorite brands and then sends them a message and a link to make the purchase when the brands are on sale

post-purchase (stage of consumer purchase)

the salesperson is still important. In fact, the more personal contact after the sale, the more the buyer is satisfied. Advertising is also important to assure the buyer that the right purchase was made. Advertising and personal selling help reduce the buyer's post-purchase anxiety. Sales promotion in the form of coupons and direct marketing reminders can help encourage repeat purchases from satisfied first-time triers. Public relations plays a small role in this stage.

feedback

the sender's interpretation of the response and indicates whether the message was decoded and understood as intended.

forgetting rate

the speed with which buyers forget the brand if advertising is not seen.

depth of product line

the store carries a large assortment of each item, such as a shoe store that offers running shoes, dress shoes, and children's shoes

personal selling

the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. Unlike advertising, personal selling is usually face-to-face communication between the sender and receiver.

institutional advertisements

to build goodwill or an image for an organization rather than promote a specific product or service. Ex: Texaco, Pfizer, and IBM to build confidence in the company name. - Often this form of advertising is used to support the public relations plan or counter adverse publicity. - Four alternative forms of institutional advertisements are often used:

reminder advertising (product advertisements)

used to reinforce previous knowledge of a product. - good for products that have achieved a well-recognized position and are in the mature phase of their product life cycle. Ex: The Duracell ad reminds consumers not to forget that those Christmas toys will need batteries. - A form is reinforcement which is used to assure current users they made the right choice.

direct marketing

uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. Can take many forms: face-to-face selling, direct mail, catalogs, telephone solicitations, direct response advertising (on television and radio and in print), and online marketing

decline stage (product life cycle)

usually a period of phaseout for the product, and little money is spent in the promotional mix. The rate of decline can be rapid, as is the case when a product is replaced by an improved or lower-cost product, for example, or slow, as often happens when a group of loyal customers exists.

hierarchy of effects

which is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action. Five stages: - Awareness —the consumer's ability to recognize and remember the product or brand name. - Interest —an increase in the consumer's desire to learn about some of the features of the product or brand. - Evaluation —the consumer's appraisal of the product or brand on important attributes.Page 493 - Trial —the consumer's actual first purchase and use of the product or brand. - Adoption —through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand.