marketing final
how does IMC influence consumer behavior? are the results immediate and why?
- IMC attempts to gain the consumer's attention and eventually moves to convince a consumer to take action - lagged effect; often takes multiple exposures before a consumer fully processes a message
what is price elasticity, why does it matter to marketers and how do marketers use this information?
- a measurement of how sensitive the quantity demanded is to price - important because marketers need to know how to adjust prices according to what consumers are actually demanding
what are the six core promotional channels, how and why might they be selected?
- advertising (passive, offline) - personal selling (interactive, offline) - sales promotion (interactive/passive, offline) - public relations (passive, offline) - direct marketing (all 4 quadrants) - online marketing (interactive, online)
define each of the standard promotional categories and know what sets them apart from each other
- advertising: a paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future - personal selling: the two-way flow of communication between a buyer & a seller that is designed to influence the buyer's purchase decision - sales promotion: special incentives or excitement-building programs that encourage the purchase of a product or service - public relations: the organizational function that managers a firm's communications to achieve a variety of objectives - direct marketing: sales & promotional techniques that communicate directly with target customers to generate a response or transaction - online marketing: websites, blogs, social media
what are the components of a break-even analysis and what information can marketers gain from this analysis?
- break even analysis = FC / (P-VC) - tells marketers the minimum number of units they must sell to cover costs
five C's of pricing
- company objectives - customers - costs - competition - channel members
how do the five C's influence pricing strategy & decisions?
- company objectives: influence orientation (profit, sales, competitor, customer) - pricing strategies / sales - cost based, competition based, value based
know the difference between push and pull strategies and why they may be employed and how they relate differently to demand
- consumer advertising is usually part of a pull strategy, in which the goal is to have consumers demand the product - a push strategy promotes a product to members of the supply chain by focusing on wholesalers, retailers, or salespeople
name the three basic scheduling methods and their marketing purpose
- continuous: runs steadily throughout the year - flighting: implemented in spurts, with periods of heavy advertising followed by periods of no advertising - pulsing: combines continuous & flighting schedules
understand and describe the role of intermediaries as either business to business or business to consumer
- direct channel: manufacturer to consumer (B2C) - indirect channel (one inter.): manufacturer to retailer (B2B) retailer to consumer (B2C) - indirect channel (two inter.): manufacturer to wholesaler (B2B) wholesaler to retailer (B2B) retailer to consumer (B2C)
what are the three distribution intensities and when are they applicable how do they align with product positioning strategies and brand equity?
- intensive: a strategy designed to get products into as many outlets as possible (positioned as a convenience/general product) - exclusive: strategy in which only selected retailers can sell a manufacturer's brand (positioned as a luxury good) - selective: lies between the intensive & exclusive strategies (positioned as a high quality, more exclusive good) should be used when trying to maintain an image & controlling the flow of merchandise; increase brand equity
retailers and manufacturers work together to meet the needs of the target; what do each need to know about the customer and how does this benefit the customer?
- manufacturers need to know where their target customers expect to find their products or they will not know which retailers to consider as partners - retailers need to know who their customer is, how their product is positioned in the market, & the distribution intensity - benefits the customer with convenience
what are marketing channels & who are potential intermediaries and what is their purpose?
- marketing channel: the people, organizations, & activities necessary to transfer the ownership of goods from the point of production to the point of consumption - intermediaries: wholesalers, retailers, distribution centers, fulfillment centers - purpose: creating value by providing the customer with convenience & satisfaction
what are the two basic categories of advertising media channels and how the strategies for these categories differ?
- mass media channels are ideal for reaching large numbers of anonymous audience members - niche media segments are more focused & generally used to reach narrower segments
how are IMC efforts measured within the different communication channels, what are some of the advantages and challenges related to effective measurements of IMC efforts?
- measuring goals with metrics - efficacy (feedback loop)
define media planning and media mix, how are they related and how are each of them used by marketers?
- media planning: the process of evaluating & selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience - media mix: the combination of the media used & the frequency of advertising used in each medium
problems and cost challenges that retailers and other intermediaries solve for manufacturers as it relates to the supply chain
- more accurate sales forecasts - lower inventory investments systemwide - easier to avoid running out of stock - retail store space is expensive - provides a storage function
what are the variables used to determine the elasticity of demand?
- price levels - type of product or service - income levels - availability of substitutes
what product attributes influence the elasticity of demand?
- price sensitivity - substantive change in value - substantive change in market - inelasticity
what are the four levels of competition?
- pure competition: many sellers who follow the market for identical, commodity products - monopolistic competition: many sellers who compete on nonprice factors - oligopoly: few sellers who are sensitive to each other's prices - pure monopoly: one seller who sets the price for a unique product
how do the four levels of competition impact a new product?
- pure competition: market sets price; identical products; little advertising - monopolistic competition: some price competition; differentiated products; a lot of advertising - oligopoly: some price competition; product differentiation depends on industry; some advertising - pure monopoly: no price competition; no other producers; little advertising
understand and describe the purpose for the components of the supply chain
- raw materials - transportation - manufacturing - warehousing: acts as a storage unit - distribution centers: enable the retailer to carry less merchandise in individual stores, which results in lower inventory investments systemwide - fulfillment centers: warehouse facilities used to ship merchandise directly to customers - wholesaling: buys products from manufacturers & resells them to retailers - retailing: buy in quantity from manufacturers or wholesalers, then sell single items to consumers
what is the definition of retail & how does the retail marketing channels relate to value creation and delivery?
- retailing: the set of business activities that add value to products & services sold to consumers for their personal or family use - when a manufacturers has a partnership with the retailer, this helps create value by providing the customer with convenience & satisfaction
understand the different power bases used in marketing relationships; how they may be leveraged by participants for their individual and mutual advantage
- reward: power to grant rewards - coercive: using threats/punishment - referent: power from association - expertise: power from knowledge - information: power from withholding information - legitimate: power from contracts leveraged by parties to create/break trust, open communication, common goals, interdependence, & credible commitments
describe the steps in the communication process
- sender: who sends the message - transmitter: who creates the message - encoding: converting the sender's ideas into a message - receiver: who receives the message - decoding: how the receiver interprets the message - feedback loop: communication between the sender & receiver
what is the marketing objective for sales promotions used, what form do they take?
- special incentives or excitement-building programs that encourage the purchase of a product or service - customer retention, loyalty building, reminder - coupons, deal, premium, contest, sweepstakes, sampling, loyalty programs, point of purchase display, rebate, product placement
what is a supply chain & how does the supply chain relate to value creation and delivery?
- the chain that occurs when wholesalers buy products from manufacturers & resells them to retailers, industrial, or business users - value creation: JIT, quick response, marketing channels (number of intermediaries) - value delivery: allows the retailer to carry less merchandise in individual stores, therefore less backup stock (that no one wants)
what is the marketing purpose for public relations, how does public relations differ from other methods of promotion when influencing consumers, and what forms does public relations take?
- the organizational function that manages the firm's communications to achieve a variety of objectives, including building & maintaining a positive image, handling or heading off unfavorable stories or events, & maintaining positive relationships with the media - pr is not paid for - event sponsorship, philanthropy, press releases, articles
why does the communication process matter to marketers & how do they use this knowledge in IMC messaging?
- the promotion of the 6 P's, the method by which the firm communicates value to target customers - use feedback to know that the intended audience received the message & it was decoded properly (or uses the knowledge to make adjustments for next time)
what is vertical integration as it relates to the supply chain & what are opportunities and challenges created by vertical integration as it relates to getting products to market?
- vertical integration: the parent company has complete control & can dictate the priorities & objectives of the marketing channel because it owns multiple segments of the channel - opportunities/challenges: trust, open communication, common goals, interdependence, & credible commitments
the channel structure, customer expectations and how these concepts relate to product positioning in the market
?
what is the AIDA model, describe the value of IMC messaging aligning with the principles of the model.
AIDA model: - awareness: aided recall, top of mind - interest: persuade to learn about added value - desire: from "i like" to "i want" - action: lagged effect if the consumer's attention is not gained & brand awareness does not result, the marketing communications channel cannot achieve its desired results
in terms of a pricing strategy, ________ adds value by reducing consumers' search costs; consumers can spend less of their valuable time comparing prices, including sale prices, at different stores.
EDLP
when companies enter into agreements that allow them to obtain economies of scale and coordination to reduce conflict, it is an example of
a contractual vertical marketing system
in ________, one firm provides the product or service in a particular industry, which results in less price competition.
a monopoly
sometimes reactions to prices in oligopolistic markets can result in ________, which occurs when two or more firms compete primarily by lowering their prices.
a price war
as the dominant member of the channel of distribution, coca-cola holds a lot of power in the relationship with independent grocery stores, and as such, it performs the functions of restocking merchandise, setting up special displays, and rotating merchandise. this is an example of a(n)
administered vertical marketing system
the value of omnichannel strategy and the value points for consumers and manufacturers
advantages: - selection - personalization - expanded market - customer relationship management disadvantages: - image - pricing - supply chain
the u.s. government promoted public participation in the 2020 census during the televised super bowl game in its efforts is to raise awareness of when and how the census works. this is an example of which of the following promotional elements?
advertising
why do supply chain decisions matter to marketers?
affects all parts of the marketing mix - product: is it problem-solving - price: socio-economic influences - place: location of facilities (cost consideration) - promotion: behavior of target consumer & cost effectiveness
the office zone electronics store has advertised a very low price for a printer it carries. once customers arrive at the store to purchase the low-priced printer, the salesperson aggressively pressures these customers into purchasing a higher-priced model by disparaging the low-priced item, comparing it unfavorably with the higher-priced model, or professing an inadequate supply of the lower-priced item. the store is engaging in a ________ tactic.
bait-and-switch
to create strong partnering relationships, marketing channel members must develop mutual trust, openly communicate, have common goals, recognize the benefits of interdependence, and
be willing to invest in each other's success
________ involves determining the point at which the number of units sold generates just enough revenue to equal the total costs.
break-even analysis
are businesses exclusively retailers or wholesalers?
can be both (costco)
in what ways may marketers utilize demand curves?
can be used to adjust prices/pricing strategies
in order to ensure that inventory stock is kept at a certain level, each store should
communicate with the distribution centers on inventory status
which of the following is one of the five Cs of pricing?
company objectives
some big box retailers have invested in their own private brands, charging just slightly lower than national brands to signal the quality of the products is good, involving the use of
competition-based pricing
________ pricing methods do not recognize the role that consumers or competitors' prices play in the marketplace.
cost-based
when two or more firms join to reach a specific target market, it is referred to as
cross-promoting
for the sake of expediency, marketers creating a ________ assume that the firm will not increase its expenditures on advertising and that the economy will not change in any significant way.
demand curve
the AIDA model represents a series of mental stages a consumer goes through and includes awareness, action, interest, and
desire
when developing strategies for working with retailers, manufacturers must consider whether they should sell in more than one outlet (e.g., store, catalog, and Internet). which of the following factors for establishing a relationship with retailers deals with this?
determining whether or not to use an omnichannel strategy
omaha steaks sending email coupons for items that customers have purchased previously and mailing slick pictures of gourmet steaks and meal packages to addresses that have received orders in the past is an example of
direct marketing
the IMC channel that has received the greatest increase in aggregate spending recently is ________, or marketing that communicates directly with target customers to generate a response or transaction.
direct marketing
luxury goods firms such as coach use a(n) ________ distribution strategy to limit sales to one or only a few select, higher-end retailers in each region, because selling its product in full-line discount stores or off-price retailers would weaken its image.
exclusive
although the number of their physical stores is limited, l.l.bean is widely known for offering unique, high-quality merchandise. adding an Internet channel was particularly attractive because it allowed the company to ________ without having to build new stores.
expand its market presence
when using a penetration pricing strategy, as sales continue to grow, the costs continue to drop, allowing even further reductions in the price. this is due to
experience curve effects
the ________ enforces truth in advertising laws and defines deceptive and unfair advertising practices.
federal trade commission
target is conducting marketing research to determine whether or not its advertising message could be clearly understood by its customers. this relates to which component of the communication process?
feedback loop
coppertone uses a ________ advertising schedule, where it advertises heavily in the months leading up to and during the summer, with no advertising after the season ends.
flighting
walmart, target, and kmart offer a broad variety of merchandise, limited service, and low prices, which would classify them as
full-line discount stores
when is it most beneficial and appropriate for a retailer to use a distribution center?
if the retailer wants less inventory investments systemwide
the market for a product is generally viewed as ________when its price elasticity is greater than −1.
inelastic
the brinton clothing company wants to create and build brand awareness. It would use ________ advertising.
informative
what has amazon done to change customers' delivery expectations?
instituted an expedited shipping subscription service
what is the relationship between the value proposition, the six Ps, and integrated marketing communication messaging?
integrated marketing communications is the promotion element of the six Ps, the method by which the firm communicates value to target customers
if kleenex produced a new, ecofriendly personal-sized package of tissues, which it intended to get into as many retail outlets as possible, it should choose a(n) ________ distribution strategy.
intensive
quick response inventory system
inventory management system designed to deliver less merchandise on a more frequent basis than traditional inventory systems
which of the following are aspects of advertising?
it must be carried by some medium
vertical integration
larger, more sophisticated channels members are likely to perform many channel functions for themselves instead of using intermediaries
generally, the ________ and ________ sophisticated the channel member, the less likely that it will use supply chain intermediaries.
larger; more
supermarket chains often implement ________, a pricing tactic of selling leading brands of products below their own cost to build store traffic.
leader pricing
the cvs extra care card is an example of a ________, which is specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time.
loyalty program
just in time inventory system
manufacturers make products closer to when they will be sold & shipped to retailers, thus reducing inventory levels needed since it is no longer necessary to manufacture far in advanced & stockpile goods
how do marketers assess the efficacy of their IMC messaging success?
metrics: frequency, reach, impressions, clicks, advertising buy return
JIT inventory systems are associated with
more inventory to warehouse
how does brand loyalty impact a product's demand curve?
often shifts the demand curve because consumers don't care about price, only the brand name
since her firm's sales have increased from 3.5 to 4 percent, tanya has determined she would set her share of communication expenses at 4 percent of sales, which is an example of the use of the ________ method.
percentage of sales
________ advertising generally occurs in the growth and early maturity stages of the product life cycle, when competition is most intense, and attempts to accelerate the market's acceptance of the product.
persuasive
wang wants to purchase a new computer from best buy. after he purchases the computer, the local best buy store notifies the buyer at corporate headquarters through the
point of sale terminal
a coupon for free milk on a box of cheerios is a ________ offer.
premium
________ is a tactic in which a firm deliberately prices a product above the prices set for competing products to capture those customers who always shop for the best or for whom price does not matter.
premium pricing
with ________ products and services, a higher price might lead to a greater quantity sold, but only up to a certain point.
prestige
a hair products manufacturer packages its shampoo and conditioner together for a price lower than what it would cost to buy the products separately. this tactic is referred to as
price bundling
when all-in-one technology offers its customers a discount for ordering their television, internet, and phone service all with all-in-one technology on just one bill, it is an example of
price bundling
for ________ to work, the product or service must be perceived as breaking new ground in some way, offering consumers new benefits currently unavailable in alternative products.
price skimming
variable costs are affected by
production volume
in break-even analysis, when the break-even point is reached ________ is (are) zero.
profits
the slogans "better ingredients, better pizza," and "world's best hamburgers" are examples of ________, which is the legal exaggeration of praise, stopping just short of deception, lavished on a product.
puffery
nat gauged the level of exposure to his marketing campaign using the percentage of the target population exposed at least once to his advertisement, representing its
reach
manufacturers like ________ because it allows them to offer price cuts to consumers directly, rolling them out and shutting them off quickly.
rebates
as a product in the maturity stage of its life cycle, chewing gum brands would most likely require the use of ________ advertising to prompt purchases.
reminder
________ distribution helps a seller maintain a particular image and control the flow of merchandise into an area which makes this approach attractive to many shopping goods manufacturers, such as most apparel items, home items like branded pots and pans or sheets and towels, branded hardware and tools, and consumer electronics.
selective
what is the relationship between SMART goals and advertising campaigns? how does this relationship guide marketing efforts?
setting goals is the second step in developing an advertising campaign
what is the primary messaging focus for advertising, what is the importance of this focus?
should focus on how the product solves the consumers' problems
what is a demand curve?
shows how many units of a product or service consumers will demand during a specific period at different prices
________ tailor their retail strategy toward very specific market segments by offering deep but narrow assortments and sales associate expertise.
specialty stores
what market entry strategies may overcome pure competition?
strong value proposition: what needs your product meets that your competitor's does not
both walmart and jcpenney initially had separate organizations for their Internet channel but subsequently integrated them with stores and catalogs to address the ________ challenge of omnichannel retailing.
supply chain
in thinking about the channel structure, the level of difficulty a manufacturer experiences in getting retailers to purchase its products is determined by
the degree to which the channel is vertically integrated
what is the importance of scheduled advertising, how is this practice used to influence demand?
the demand schedule shows how many units of a product will be purchased at a specific point in time; need to correspond advertising with rises in demand
which of the following is an example of the value provided by a supply chain in the production of kitchen stoves?
the stove maker turns the components into the stove
how might IMC channels be categorized as it relates to how messages transmitted and received & what are the advantages and challenges of each method?
there is no one right communication channel; the media chosen must be appropriate to connect the sender with the desired recipients - advertising must break through the clutter of other messages to reach its intended audience
what is the eventual goal of IMC?
to get the consumer to take action
Disney starts off its stars with Disney Channel shows, records them on the Disney-owned Hollywood Record label, plays the songs in heavy rotation on Radio Disney and Disney movie soundtracks, organizes concert tours with Disney-owned Buena Vista Concerts, and sells tie-in merchandise throughout Disney stores. The goal of each of these elements is
top of mind awareness
harley-davidson has ________ if a consumer responds "harley" when asked about american-made motorcycles.
top of mind awareness
lowe's hired an advertising agency to develop television ads for its grand opening in southern massachusetts. the advertising agency represents which of the following components of the communication process?
transmitter
when supply chain members that buy and sell to one another are not in agreement about their goals, roles, or rewards ________ channel conflict can occur.
vertical