Marketing Final
Policy issues exist with respect to direct and digital marketing?
1. Irritation, Unfairness, Deception, and Fraud phishing- type of identify theft that uses deceptive emails and fraud online sites to fool users into divulging their personal data online and digital security access by vulnerable and unauthorized groups 2. Consumer Privacy worry marketers know too much about consumers lives and that they may use this knowledge to take unfair advantages of consumers ready availability of infromaiotn may leave consumers open to abuse 3. Need for Action do not call lists, do not mail lists, do not track online lists, and Can Spam legislation concerns call for strong action by marketers to monitor and prevent privacy abuses before legislators step in to do it for them Children's Online Privacy Protection Act COPPA-
Three Ways Intermediaries Add Value to Cusomter Experience
1. Product utility: bridge the discrepancy between the assortment of goods produced and demanded; manufactures produce large quantity of a limited variety of goods consumers generally desire a small quantity of a wide variety of goods 2. Time Utility: can reduce search time, increase delivery speed 3. Place Utility- can reduce distance between consumer and product
Buyer Readiness Stages
1. awareness 2. knowledge 3. liking 4. preference 5. conviction 6. purchase
4 E Framework for Social Media
1. excite customers with relevant offers offer must be relevant to target customer relevance can be achieved through personalization 2. educate them about offering opportunity to educate consumer about value proposition education may be new or a reminder can emphasize and expand overlap between firm's offered benefits and the benefits consumers requires 3. help them experience products directly or indirectly provide vivid experience information about firm's goods and services how they work, where they can be obtained, etc. 4. give them opportunity to engage with social network engage the customer to prompt action positively engaged consumers purchase 20-40% more
Types of Distribution
1. intensive distribution: socking products in as many outlets as possible; convenience products 2. selective distribution: the use of more than one, but fewer than all of the intermediaries who are willing to carry the product; shopping products 4. exclusive distribution: extreme form of selective; giving a limited number of dealers the exclusive right to distribute the company's products in their territories; specialty or luxury products
Four Decision when Developing an Advertising Program
1. setting advertising objectives 2. setting advertising budgets 3. developing advertising strategy (message decisions and media decisions) 4. evaluating advertising effectiveness
Elements of Promotion Mix (identify them and know their key characteristics)
Advertising- is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor most visible element; creates awareness and generating interest Public Relations- involves building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events free media attention, importance has grown, consumers less skeptical Sales Promotion- is a typically short term incentive to encourage the purchase or sale of a product or service Personal Selling- is the personal presentation by the firm's sales force for the purpose of making sales and building customer relationships can add significant value, some products require help of a salesperson Direct and Online Marketing- making direct connections with targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Benefits of direct and digital marketing to both buyers and sellers
Benefits to Buyers: convenience ready access to many products access to comparative information about companies, products, and competitors interactive and immediate gives consumers control to pull in info when they need/ want it Benefits to Sellers: tool to build customer relationships low-cost, efficient, fast alternative to reach markets huge growth in B2B flexible access to buyers not reachable through other channels
What Makes Consumers Pay Attention?
Characteristics of the Consumer AND of the stimulus whether stimulus is personally relevant (what does the consumer find interesting stimulus factors (characteristics of the ad, product, etc.) - color - size - volume - pleasant (sex sells) -surprising/ unexpected
Contrasting Views of Global Segmentation
Conventional Wisdom (Traditional): amuses heterogeneity between countries assumes homogeneity within a country focuses on macro level of cultural differences relies on clustering of national markets less emphasis on within country segments Unconventional Wisdom assumes emergence of segments that transcend national boundaries recognizes existence of within courtly differences emphasizes micro level differences segments micro markets with and between countries
Determinants of Price
Costs: (variable and fixed) competition stage in product lifestyle promotion strategy perceived quality distribution strategy target market's demand (and how will this change as price goes up or down)
Legal and Ethical Aspects of Pricing
Deceptive Price Advertising Predatory Pricing Price Fixing Price Discrimination
Price Adjustment Strategies
Discount and Allowance Pricing: reducing prices to reward customer responses; discount (cash discount, price reduction to buyers who pay bills promptly); allowances (reduction from list price, given for turning in old item or participating in advertising and sales support) Segmented Pricing: sells a product or service at two or more prices even though difference is not based on differences in costs Psychological Pricing Promotional Pricing- temporarily reducing prices to spur short run sales to create buying excitement and urgency Geographical Pricing: FOB origin (customer pays freight), uniform delivered pricing (charges same price to all), zone pricing (more distant the zone the higher the price), basing point pricing (given city as basing point), freight absorption (seller absorbs all the charges) Dynamic Pricing: adjusting prices continually to meet the characteristics and needs of individual customers and situations International Pricing
Three Stages of Marketing Strategy
Entrepreneurial Marketing- companies started by individuals; visualize opportunities, construct flexible strategies, and knock on every door to gain attention Formulated Marketing- as small companies achieve success they inevitably move toward more formulated marketing; develop formal marketing strategies and adhere to them closely Intrapreneurial Marketing- many large and mature companies get stuck in formulated marketing; sometimes lose the marketing creativity and passion they had at the start
Three Primary Ways to Enter International Marketing: exporting, joint venturing, direct investment
Exporting- entering foreign markets by selling goods produced in the company's home country often with little modification Joint venturing- joining with foreign companies to produce or market products and services company joins with a host country partner to sell or market abroad Direct Investment- entering a foreign market by developing foreign based assembly or manufacturing facilities
Exporting
Exporting- entering foreign markets by selling goods produced in the company's home country often with little modification simplest way to enter a foreign market indirect exporting- working through independent international marketing intermediaries involves less investment and less risk direct exporting- company handles their own exports investment and risk are somewhat greater but so is potential return
Ethical and Legal Concerns with respect to advertising
FTC- enforces federal consumer protection laws; enforces truth in advertising, defines deceptive and unfair advertising practices FCC- regulates interstate and international communications by radio, television, wire, satellite, and cable; enforces restrictions on broadcasting material that promotes lotteries, cigarettes, or tobacco products or fraud; enforces laws that prohibit or limit obscene, indecent, or profane language Food and Drug Admin: regulates food, dietary supplements, drugs, cosmetics, medical devices, biologics, and blood products; regulates package labeling and inserts, and required disclosure statements
How can marketing negatively impact society?
False Wants and Too Much Materialism Too Few Social Goods Cultural POllution
How can marketing negatively impact consumers?
High prices- critics claim marketing system cause prices to be higher than they would under more sensible systems due to high costs of distribution, high advertising and promotion cost, excessive markups Deceptive Practices High Pressure Selling Shoddy, harmful, or unsafe Products planned obsolescence- companies causing their products to become obsolete before they actually should need replacement poor service to disadvantaged consumers redlining- major chain retailer drawing a red line around disadvantaged neighborhoods and avoiding placing stores there
Identifying Competitors at the Market vs Industry Level
Identify by Industry Point of View: understand competitive patterns in its industry if it hopes to be an effective pliers Identify by Market Point of View: define competitors as companies that are trying to satisfy the same customer need or build relationships with the same customer group opens company's eyes to a broader set of actual and potential competitors
Culture Impact Marketing Strategy
Impacts of Culture on Marketing Strategy must understand the ways that consumer in different counties think about and use certain products before planning marketing companies that violate cultural norms and differences can make expensive mistakes business norms and behaviors differ if you understand cultural nuances you can use them to your advantage in global markets Impact of Marketing Strategy on Cultures some people worry the impact of marketing strategies on global cultures (Americanizing the world" McDomination countries worried they are losing their individual cultural identities creating backlash against American globaliztitona and companies globalization is a two way street
Key Advertising Objectives: inform vs persuade vs remind
Inform- create awareness and generate primary demand for product; is used heavily when introducing a new product category; the objective is to build primary demand Persuade- their brand is the best; create selective demand; is important with increased competitive to build selective demand Remind- is important with mature products to help maintain customer relationships and keep customers thinking about the product; important for seasonal products
Promotional Goals across the Product Life Cycle
Introduction: goal is to inform Growth: goal is to persuade Maturity: goal is to persuade Decline: goal is to remind
Critique of Marketing
Marketers Manipulate Needs and Wants Marketers tell people what they should want response: marketers recommend ways to satisfy basic biological needs advertisers simply do not know enough about people to manipulate them failure rate for new products = 40% - 80%
Public Service Advertising
PSA: focus on public welfare and betterment of society under FCC rules, broadcasters must devote a specific amount of free airtime to PSAs
Pricing Tactics
Price Bundling (group products or services sold as a single unit) Price Matching Guarantees Loss Leader Pricing
Channel Members add Value
Producers use intermediaries because they create greater efficiency in making goods available to target markets distributors reduce the number of channel transactions role of marketing intermediaries is to transform the assortment of products made by producers into the assortments wanted by consumers (buy large quantities and break them down into assortments desired) Key functions include: information, promotion, contact, matching, negotiation, physical distribution, financing, risk taking provide time and place utility, provide assortment utility, adapt product or service, can return or have warranty service, may be knowledgeable about product and offer advice
Product Decisions and Promotional Decisions when Entering International Market
Product Decisions Straight Extension: sell the same product in the new market Product Adaptation: modify the product for the new market Product Invention: develop a brand new product for that new market Promotional Decisions Will the same promotional message work in the different markets? Things to Consider: language culture Standardized strategies are more likely to work when cultural factors are similar, and when target customers are in cosmopolitan urban areas
Price Ceiling and Price Floor
Product costs are price floor: no profits below this price consumer perceptions of value are price ceiling: no demand above this price
Retailer Type Based on Product Line
Product line: length and breadth of product assortments specialty store: narrow product line with deep assortment department stores: wide variety of product line convenience store: limited line of high turnover goods superstores: non food goods plus food goods category killers: deep in category with sales staff service retailer
Price Discrimination
Robinson Patman Act protects against this cannot charge a different price to different retailers, discounts must be equitable not illegal if products are physically different, retailers diff prices are not competitors, price differences are due to differences in supplier costs
Two Types of Attention
Voluntary Attention: personal relevance --> attention; if you want consumers to voluntarily attend to your message, it must contain information that is important and relevant to them; stems from having motivation and involvement involuntary attention: occurs when a consumer is exposed to something surprising or that stands out from surrounding context; doesn't have to be something they inherently care about
Product Mix Pricing Strategies
When the product is part of a product mix the firm looks for a set of prices that maximizes its profits on the total product mix
Comparative Advertising/ attack Advertising
a company directly or indirectly compares its brand with one or more brands
Odd-even pricing
a psychological pricing tactic in which numeric value is utilized to affect the customers' perception of product value odd pricing seen as more of a deal perception of $20 vs $19.99 even pricing often used to distinguish luxury
Porters Five Forces
a way to outline your competitive landscape 1. threat of entrant 2. power of buyer 3. treat of substitutes 4. power of supplier 5. competitie rivalry Step 1: Identify the Competition (how do you compare in terms of value delivered) Step 2: identify substitutes for you product or what might be a substitute in the future; Key points in Developing Competitive Advantages (avoiding competitor myopia) Step 3: Consider the Power of Buyers Step 4: Consider the power of Suppliers Step 5: Consider Barriers to Entry: every business is at risk of gaining new competitors
Setting Advertising Budget
advertising budget- the dollars and other resources allocated to a product or a company advertising program brands advertising depends on its stage in the product life cycle new products need large advertising budgets to build awareness and to gain consumer trial; mature brands require lower budgets asa ratio to sales brands in a market with many competitors and high advertising clutter must be advertised more heavily
Advertising Strategy
advertising strategy: consists of two major elements: creating advertising messages and selecting advertising media Creating Message and Content: - break through clutter -merge advertising and entertainment (Madison and Vine- a term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages ) -advertainment: make ads an brand content themselves so entertaining people want to watch them - brand integrations: involves making the brand an inseparable part of some other form of entertainment or content; product placement, native advertising (sponsored content; advertising or other brand produced online content that appears to eb native to the web or social media site in which it is placed ) Message Content and Strategy - message strategy: the general message that will be communicated to consumers; beings with identifying customer benefits -creative concept- big idea; that will bring the message strategy to life in a distinctive and memorable way (should be meaningful, believable, and distinctive - meesage execution: the approach, style, tone, words, and format used for executing an advertising message (lifestyle, fantasy, slice of life)
Economy Affecting Price
after a recession more value conscious, marketers increase emphasis on value for the money pricing strategies, and redefine the value in their value proposition price tiers: offer affordable and premium lines for different customers segments
Competitive Advantage
an advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices
Salespeople
an individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building sales people add value for customers and maintain long term customer relationships listen to customers, assess customer needs, and organize the company's efforts to solve customer problems Sales force serves as a critical link between a company and its customers; serve two masters (seller and buyer) represents company to customers and customers to the company
Marketing
an organisation function and a set of processes for creating, communicating and delivering value to customer and for managing customer relationships in ways that benefit the organization and its stakeholders
Advertising
any form of non personal communication paid for by an identified source used to persuade, inform, or remind an audience most visible form of marketing Key concept to understand Advertising: Exposure Exposure success depends on how well advertiser identifies target audiences (using insights gained from research to select appropriate media outlet) consumers, advertising departments, and advertising agencies make ads advertisements should consider objectives, target segment, value prop, and coordination with IMC elements; creativity plays major role in execution but should NOT overshadow message
Social Marketing
application of marketing principles to social issue to bring about behavioral and attitudinal change among general public or specific segment
Benefits of Combining Media
by supplementing your owned and earned media efforts with paid media, brands can often realize a positive effect lift in brand affinity lift in brand recall lift in purchase intent higher response rates lower cost (per click) higher fans engagement rates best strategy: use paid media as a catalyst to drive visits to owned media and spur people to create earned media
Channel Design Decisions
calls for analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives Analyzing Consumer Needs: designing the marketing channels starts with finding out what target consumers want from the channel Setting Channel Objectives: companies should state their marketing channel objectives in terms of targeted levels of customer service; which segment to serve and best channels to use in each case Evaluating Major Alternatives: based on economies criteria (compares likely sales, costs' and profitability); control issues, adaptability criteria (which one is best for long term commitments)
Sustainable Marketing
calls for socially and environmentally responsible actions that meet the present needs of consumers and business while also preserving or enhancing the ability of future generations to meet their needs the sustainable company = caring about future generations goes beyond caring for the needs of today's customers and has concern for tomorrow's customers and the broader world 3 pillars of sustainability: environmental societal economic (planet, people, profits)
Preference Maps
can tell you about consumers' ideal beer a map of consumers ideal points cluster of points on the map represent market segments segmenting by benefits desired
Dynamic Pricing
charging difference price based on type of customer, time od day, day of week, season or demand illegal if based on race, gender, religion easier in online contexts
Price Fixing
colluding with other firms to control prices horizontal price fixing- competitors work together to control prices vertical price fixing- marketing channel members work together to control prices
Video Convergence
combines TV's core strength with digital's better targeting, interaction, and engagement
Promotion Changes in International
communication adapatation- fully adaption their advertising messages to local markets down change product but change the communication (promotion) dual adaptation- changing the product and the promotion
Comparative Advertising
comparative ad claims: must be backed up by research/ data good rules of thumb for competitive advertising: the comparing brand should have an inferior position in the marketplace (should be a market challenger or follower) must have research to back up comparative claims (about consumer preferences) not all comparative ads based on consumer data can also compare product features
Market Follower Strategies
compete with modest strategic objective often use innovative imitation compete in selective few segments play along with competitors and not rock the boat copy or improve on leader's products and programs with less investment doesn't typically bear costs of developing new products, educating market must keep costs and prices low or quality and services high
Market Challenger Strategies
concentrate on a single target: attacking the leader challenge the leader with an aggressive bid for more market share second mover advantage- challenger observes what has made the leader successful and improves it
Marketing Ethics and Inherent Conflict
conflicts often arise between the goal to succeed in the marketplace and the goal to maximize consumer well being by providing them with safe and effective products and services businesses often have to face tradeoffs between their responsibilities to stakeholders with conflicting desires have to balance persuade customers and don't manipulate kids or elderly have to balance manufacture cheaply and don't pollute air and water have to balance between segment customers and don't discriminate stakeholders can be the community in which you do business
Strategic Planning Concept
considers future company needs
Conventional Distribution Channels
consists of one or more independent producers, wholesalers, and retailers have lacked leadership and power often resulting in damaging conflict and poor performance each separate units seeks to maximize its own profits
Vertical Marketing Systems
consists of producers, wholesalers and retailers acting as a unified system; provides channel leadership Corporate VMS- integrates successive stages of production and distribution under a single ownership Contractual VMS- consists of independent firms at different level of production and distribution that joint together through contracts to obtain more economies or sales impact than each could achieve alone (franchise organization is most common type) Administrered VMS- leadership is assumed nth through common ownership or contractual ties but through size and power of one or a few dominate channel members
IMC/ Promotion Mix by Business Type
consumer goods: advertising, public relations, sales promotion industrial goods: personal selling
Communication Process Model
consumers are changing (better informed and more communication empowered) marketing strategies changing (shifting away from mass marketing but now focused to engage customers and build customer relationships in more narrowly defined micro markets) digital tech is advancing- new info and communication tools, more targeted, social, and engaging marketing communications model relying more on digital and social media marketing (more engaging ways) rather than old media collapsing need to shift to a mix of both traditional mass media and online media that engage more targeted consumer communities in a more personalized way KEY is to integrate all of these media in a way that best engages customers, communicates the brand messages, and enhances the customer's brand experiences
Showrooming
consumers examine products in physical stores and go online to find the lowest price What do retailers have to offer over online? 1. immediacy 2. service 3. experience
Reference Prices
consumers have a set price or price range in their mind if the actual price is higher, consumer will feel the product is overpriced if it is too low below reference price consumers may assume its quality is inferior high renumbers mean worse perception of price
Marketing Ethics
corporate marketing ethics- are broad guidelines that everyone in the organization must follow that cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards What responsibilities does a business have? provide value to customers? earn profits for owners/ shareholders? compensate employees fairly? be a responsible corporate citizen? improves the lives of ALL stakeholders? Obey the law; the rest is a matter of ethics
Price Chnages when going International
could set a uniform price globally (too high in poor countries and too low in rich ones) could charge what consumers in each country would bear (ignores differences int eh actual costs form country to coutrny) could use a standard markup of its costs everywhere can make simpler or smaller versions of their products that can be sold at lower prices in less affluent countries
Informative Advertising
create and build brand awareness important in early stages of product life cycle (used heavily when introducing a new product and inform customers) communicate customer value build a brand and company image tell the market about a new product suggest new uses, inform the market, correct false impression)
Content Marketing
creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels include media that are both traditional and new as well as controlled and not controlled mapping customer journey to start a conversation with consumers, one that leads to engagement, purchase, loyalty, and advocacy at different touchpoint
Deceptive or Illegal Price Advertising
deceptive reference prices- reference prices that have been inflated or are fictitious and could harm consumers bait and switch- lure customer in with low price and then pressuring them to a higher priced option predatory pricing- setting very low price for purpose of driving competitors out of business
Products classified according to their degree of immediate consuerl satisfaction and long run consumer benefit
deficient products- products that have neither immediate appeal nor long run benefits pleasing products- give high immediate satisfaction but may hurt consumers in the long run salutary products- have low immediate appeal but may benefit consumer in the long urn desirable products- give both high immediate satisfaction and high long run benefits companies should try to turn all of their products into desribael products
Demand Curves and Pricing
demand curves show how much customers will buy at different prices downward sloping demand curve means as price decreases demand increases (normal demand curve) prestige products have an upward sloping curve due to perceived quality, state, and exclusivity
Whole channel View
designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network intenrational seller --> channels between nations --> channels within nations --> final user or buyer
Perceptual Maps
developed from consumer survey data tell you how your brand and your competitors brands are currently perceived
Direct and Digital Marketing
direct and digital marketing- involved engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships is the fastest growing form of marketing Direct Marketing: a marketing channel without intermediaries; an element of the promotion mix; fastest-growing form of marketing; can have it without the internet Digital Marketing: 3 Types of Media 1. paid: consists of print advertising, television, web banners, paid search, media deals attracts strangers 2. owned: consists of corporate website, portals, and micro sites and mobile apps attracts customers 3. earned: consists of social media channel content, blogs, videos, comments, pictures, stories, conversations, wikis, feedback, tweets, applications, ratings attracts fans
Channel Conflict
disagreement among marketing channel members on goals, roles, and rewards who should do what and for what horizontal conflict- occurs among firms at the same level of the channel vertical conflict- conflict between different levels of the same channel (more common and some takes form of healthy competition) difficult to change requires planning and forecasting systems challenging: conflicting sub goals for channel members control issues: channel conflict exists when one channel member believes another channel member is engaging in behavior the inhibits it from achieving its goals
Type of Retailers Based on Price
discount store: retailers that feature low prices off price retailers- moved in to fill the ultra low price, high volume gap factory outlet- manufacture owned and operated stores where store offer prices at discounts warehouse clubs- membership warehouse; in exchange for environment offer ultraslow prices and surprise deals on selected brands
Channel behavior
each channel member depends on the others channel firms should work together smoothly
Alternatives for the Value Proposition
emotional benefits- brand makes buyer of user feel something during the purchase process or user experience "when i buy or use this brand, I feel __" self-expressive benefits- brand provides a vehicle for person to express him/ herself "when i buy or use this brand, I am ___" social benefits- helps consumers connect with others through social relationships "when I buy or use this brand, the type of people I relate to are ___"
Direct Investment
entering a foreign market by developing foreign based assembly or manufacturing facilities biggest involvement in a foreign market if a company has gained experience in exporting and if the foreign market is large enough foreign production facilities offer many advantages lower costs in form of cheaper labor or raw materials, foreign gov incentives, freight savings improve image int eh host country because creates jobs develop deeper relationships with gov, customers, local suppliers, dsitrubtiros keep full control over investment main disadvantage is that the firm faces many risks like restricted or devalued currencies, falling marketing, or gov changes
Internet of Things
everything and everyone is connected digitally to everything and everyone
Market Leader Strategies
expand total demand: new users, new uses, more usage of its products protect their current market: continuous innovation, keep customer relationships strong, maintain consistent prices expand market share: increasing market share in served markets, producing high quality products, creating good service experience, building close relationships based on more than just functional benefits
Exposure and Attention why are they important for understanding advertising?
exposure- when a stimulus comes within a range of someone's sensory receptors; we have the possibility of noticing the information exposure is necessary attention is the gateway (consumers can't pay attention to everything and our product is not as important to them as it is to us) attention- the information has actually been recorded in some way; you notice the information; the extent to which processing activity is devoted to a particular stimulus (competition for our attention; marketers need to break through the clutter) change ads campaigns because you have to keep figuring out how to get attention
Traditional Direct Marketing Forms
face to face selling direct mail marketing catalog maketing telemarketing direct epsosne TV marketing kiosk marketing
Competitive Intelligence System
first identities the vital types of competitive information needed and the best sources of this information; then the system continuously collects information from the field and publish data; then checks the information for validity and reliability, interprets it, and organizes it in an appropriate way; finally it sends relevant information to decision makers and responds to inquiries from managers about competitors
Blue Ocean Strategy
five forces analysis —> remain in red oceans with lots of competition instead: redefine terms of competition to move into the blue ocean where you have the water to yourself don't beat the competition make them irrelevant in blue ocean Blue Ocean: innovate and pursue new opportunities perspective create uncontested market space make the competition irrelevant create and capture new demand break the value-cost trade off align the whole system of a firm's activities in pursuit of differentiation and low cost 4 Key Actions: Which of the factors that the industry takes for granted should be eliminated? Which factors should be reduced well below the industry's standard? Which factors should be raised well above the industry's standard? Which factors should be created that the industry has never offered?
Market Niche Strategies
focus on narrow slice of the market ideal market niche is big enough to be profitable with high growth potential and has little interest from competitors Key to market niching is specialization market customer product marketing mix
Customer Centered Company
focuses more on customer developments in designing its strategies
Global Marketing
focuses resources on global market opportunities and threats the main difference is the scope of activities because global marketing occurs in markets outside the organizations home country strategy development comes down to main issues, similar to single country marketing target market marketing mix decision (4 P's) marketing practices will vary from country to country what will differ and why? customer cultural differences, competitors, channels of distributions, communication media
Shopper Marketing
focusing the entire marketing process from product and brand development to logistics, promotion, and merchandising toward shoppers into buyers as they approach the point of sale builds around the First Moment of Truth- the critical three to seven seconds that a shopper considers a product on a store shelf Zero moment of truth- when consumers begin the buying process by searching for and learning about products online
Price Image
global impression of the overall price level of a store evaluation in context- relative to other stores imperfectly correlated with quality firms, especially retailers, may compete more on price image, than on price; managing through non price use or irrelevant price cues ex) Whole Foods vs Walmart
Two Types of Value Based Pricing
good value pricing- offering the right combination of quality and good service at a fair pice value added pricing- added quality, services, and value added features to differentiate their offers and thus support their higher prices
Loss Leader Pricing
goods/ services sold below cost to encourage sales elsewhere purchases of other items covers loss on items sold typical in supermarket and other retail outlets (used to attract customers to store) "free phone" when taking on mobile contract
Perceptual Maps (what are they for/ how are they used)
graphical representation of how customers perceive brands in a given industry developed from consumer survey data tell you how your brand and your competitors' brands are currently perceived A Way to Assess Consumers' Perceptions of Competing Brands used to know how consumers perceive different brands/ products we use perception maps for positioning image should reflect what the product is and how the product is different from competitors
Entering Foreing Markets
have to think about economic environment, market conditions, cultural environment, and poltiical/ legal environment
Perceived Price Change vs Actual Change
hidden price increases via downsizing you pay the same but you get less product (make it not obvious so consumers don't notice)
Control Continuum
high control: advertising sales promo personal selling public relations word of mouth low control
Power Center
huge unenclosed shopping centers consisting of a long strip of retail stores each store has its own entrance with parking directly in front
Competitor Myopia
identify competitors and substitutes both at the industry level and market level market= all companies trying to satisfy the same customer need
Competitor Analysis
identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid Steps: identifying the company's competitors assessing competitors objectives, strategies, strengths and weaknesses, and reaction patterns selecting which competitors to attack or avoid
Responding To Competitor Price Changes
if competitor hasn't cut price then hold your current price if competitor lowers price but it won't negatively affect your market share and profits then hold your current price if competitor lowers price and it affect your market shares and profit and effectively action should be taken then you can do one of four things: 1. reduce price 2. raise perceived value 3. improve quality and increase price 4. launch low price fighter brand
Habituation
if too familiar stimulus loses attention getting ability
What is wholesaling?
includes all activities involved in selling goods and services to those buying for resale or business use wholesalers buy mostly from producers and sell mostly to retailers, industrial consumers, and other wholesalers wholesalers sales forces help manufactures reach many small customers at a low cost
What is retailing?
includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use are businesses whose sales come primarily from retailing categorized based on: amount of service, product line, and relative prices
Why Business become more global
increasing globalization of marketing increasing number of US companies are forming controlled increasing number of foreign companies building and buying manufacturing plants in the US increases difficulty for domestic markets to sustain customary rates of growth for US based companies need to look abroad to emerging markets for new revenue sources emerging markets often equal fast growth of economy and consumption culture international free trade areas reduce trade barrier international agrements on tarrif reduciton technological improvements opening up new consumer segments
Third Party Logistics 3PL Provides
independent logistic provider that performs any or all of the functions required to get a client's product to market can help tighten up sluggish, overstuffed supply chains, slash inventories, and get products to customers more quickly and reliably can get product to market more efficiently and at a lower cost frees a company to focus more intensely on its core business
5 Cs of Marketing
insights --> strategies --> actions insights: customer, competitors, collaborators, context, company strategies: segment, target, position, differentiate actions: product, place, promotion, price
Indirect Marketing Channels
involve at least one intermediary between a seller and end users relinquishes control of downstream activities Retailer: producer --> retailer --> consumer retailer: sells to end consumer Wholesaler Channel: producer --> wholesaler --> retailer --> consumer wholesaler/ distributor: purchases goods and sells to retailers Agents/ Broker: producer --> agents or brokers --> wholesalers --> retailers --> consumers agents/ brokers: an intermediary with legal authority to act on behalf of the manufacturer manufacturer rep: works for manufacturer as an external selling force
buzz marketing
involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities
Sales Management
involves planning, implementing, and controlling the personal selling effort of the firm analyzing, planning, implementing, and controlling sales force activities
Dual Distribution
involves the use of multiple direct channels or the use of both direct and indirect channels by sellers often used to reach two or more customer segments, or to sell distinct lines
Native Advertising
is a form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed match the visual design of the experience they live within, and look and fell like natural content must behave consistently with the native user experience and function just like natural content 25% more consumers see them viewed as more editorial content very or somewhat effective at achieving branding goals registered 18% higher lift in purchase intent than banner ads
Code of Ethics
is a formal statement of ethical principles and rules of conduct Excerpt from AMA Code of Ethics (General Norms): marketers must do no harm marketers must foster trust in the marketing system marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system
Environmentalism
is an organized movement of concerned citizens, businesses, and government agencies to protect and improve people's current and future living environment maximize quality of life (not only quality of consumer goods and services but environment, now and in future)
Promotion
is any communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response
Value Based Pricing
is customer driven we begin by thinking about how the product will benefit customers the core product we then price actual and augmented product based on those predictions assesses customer needs and value perceptions then sets target price to match customer perceived value and design product to deliver desired value at target price uses buyers perception of value as the key to pricing customers seek products that give them the best value in terms of benefits received for the prices paid
Competitor Centered Company
is one that spends most of its time tracking competitors' moves and market shares and trying to find strategies to counter them company becomes too reactive
Price
is the amount of money charged for a product or a service; is the sum of all the values that customers give up to gain the benefits of having or using a product or service overall VALUE consumers are willing to exchange or sacrifice to acquire a product monetary or non monetary essentially its a value judgement easy to change, directly related to revenue generation and quantities sold; key component of profit equations need to balance revenue (price) and expenses (product promotion, place, augmented, actual, and core) most flexible marketing mix but most problem facing
Integrated Marketing Communication IMC
is the concept of designing marketing activities (advertising, public relations, sales promotion, personal selling, direct and online marketing) in combination to provide clarity, consistency, and maximum communication impact across all audiences making each touchpoint consistent: wherever the consumers encounters your brand each content with the brand will deliver a message company's goal should be to deliver a consistent and positive message at each contact goal is prompt action purchase is just one type of action that leads to other goals
Importance of Price
is the only aspect of marketing mix that DIRECTLY generates revenue consumers consistently rank price as one of the most important factors influencing purchase decisions difficult aspect of market mix to manage (usually treated as afterthought or based on rules of thumb) pricing should be treated as strategic opportunity to create value
Search Engine Optimization
is the process of affecting the visibility of a website or a web page in a search engine unpaid results often referred to as natural, organic, or earned results want to be on page 1 of google not page 2 of first result that comes up
Logistics
is the process of strategically managing the efficient flow and storage of raw materials, in process inventory, and finish goods from point of riding to point of consumption is the entire study of the entire supply chain raw materials --> parts suppliers --> manufacture --> resellers --> consumers
Joint Venture
joining with foreign companies to produce or market products and services company joins with a host country partner to sell or market abroad Four Types licensing- company enters into an agreement with a licensee in the foreign market gains entry into market at a little risk however has less control over the licensee and if the licensee is very successful it may find it created a competitor contract manufacturing- the company makes agreements with manufacturers in the foreign markets to produce its produce or provide its service decreased control over manufacturing process and loss of potential profits on manufacturing chance to start faster with less risk and later opportunity reduce some costs and help host courtly meet manufacturing requirements management contracting- domestic firm provides the management know how to a foreign company that supplies the capital; domestic firm exports management services rather than products low risk and yields income from the beginning prevents the company from setting up its own operations for ap period of time could have greater profits if undertake the whole venture joint ownership- consists of one company joining forces with foreign investors to create a local business in which they share possession and control may be needed for economic and potilical reasons partners may disagree over investment, marketing, or other policies
Ethics vs laws
laws- are society's values and standards that are enforceable in the courts ethics- are the moral principles and values that govern the actions and decisions of an individual or group
Culture
learned set of meanings, rituals, norms, and traditions that are shared among members of an organization or society (socialization process) content beliefs, attitudes, goals, value, behaviors, customers cultural icons Statute of Liberty White House language
Puffery
legal exaggeration of praise generally these claims are so outrageous that no rational consumer would believe them
Pop Up Stores
limited time stores that let them promote their brands to seasonal shoppers and create buzz in busy, high rent areas
What Shoppers Love and Hate
love: touch and trial, mirrors, discovery, bargains hate: lines/ waiting, being forced to ask, stock out, obscure price tags, intimidating service
Value Delivery Network
made up of the company, suppliers, distributors, and customers who partners with each to improve the performance of the entire system
Product Line Pricing
management must determine the price steps to set betweens the various products in a line setting prices across an entire product line should take into account cost differences between products in the line and accounts for differences in customer perceptions of the value of different features
Cost Based Pricing
manufacturer driven involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return of the company's effort and risk we begin by thinking about our costs, we then consider the features of the good those expenses paid for; then price based on those considerations design the product first, then determine costs, then set price based on costs, and convince buyers of product's value
OmniChannel Retailing
many firms use this strategy which involves selling in more than one retail channel it is becoming increasingly common and expected that traditional store based retailers also operate an internet retail channel Effective: seamless and effective integration of multiple retail channels can be a competitive advantage; gain insights into shopping behavior, personalization, increase satisfaction and loyalty, deeper and broader selection Challenges: requires integrated and centralized CRM system, requires constant brand image, requires tough pricing deacons, requires managing supply chain that can radically differ by channels
Key Differences Between Promotion Mix
market have the most control over advertising less control over promotions (trade and sales) advertising and consumer sales promotion (from manufacturer) are pull strategies trade promotions are push strategies so are sales promotions from channel intermediaries or company's sales force advertising is typically best tool for building brand image advertising is generally a long run strategy consumers sales promotions and trade promotions are most short term
Pricing New Products
market skimming or market penetration
Demarketing
marketing designed to reduce consumption
Societal Marketing
marketing that builds awareness about a social issue and works to change people's behaviors or attitudes for the public good
Cost Plus Pricing
markup pricing; adding a standard markup to the cost of the product; cost oriented pricing approach ignore demand and competitor pricing popular because sellers are more certain about costs than demand, price competition minimized if all firms in industry use this, and is fairer to both buyers and sellers
Types of wholesalers
merchant wholesalers- are the largest single group of who sellers, independently owned businesses that take title to all merchandise handled; full service or limited service brokers and agents- do not take title to goods; main function is to facilitate buying and selling fro which they earn a commission on the selling price manufactures and retailers branches and offices- wholesaling operations conducted by sellers or buyers themselves rather than operating through independent wholesalers
SWOT Analysis
model to analyze your business and understand your competition internal: strengths and weaknesses external: opportunities and threats
Price Quality Relationship
most inexperienced consumers use price as an indicator of quality price becomes crucial when consumers have little knowledge about certain products. brands we often choose more expensive wine because its a cue for quality price and quality often are correlated just no perfectly so
Channels
most producers do not sell their goods directly to consumers between them stands a variety of intermediaries (wholesalers, distributors) these intermediaries constitute the distribution channels distribution channel- set of interdependent organizations involved in the process of making a product or service available to the final consumers marketing channels ease transfer of ownership from producer to business user or consumer all institutions in the channel are connected by types of flows: physical flow of products, flow of ownership, payment flow, infromation flow, and promotion flow
Persuasive Advertising
motivates consumers to take action (accelerate market acceptance of product) important when competition is most intense generally occurs in growth and easy maturity stages of PLC more important as competition increases build brand preference encourage switching to your brand, change perception of value, persuade immediate purchase promote word of mouth
What are the key considerations when hiring, training, and supervising salespeople?
must be: advisor, relationship builder, problem solver, customer advocate, deal maker must have: product knowledge, competitive knowledge, communicative influence skills Four Key Talents: 1. instrinsic motivation 2. disciplined work style 3. ability to close a sale 4. ability to build relationships with customers
How can marketers ensure their target market is exposed to their marketing messages?
must select media that target market consumers may need to force exposure and or think beyond traditional places where consumers are used to seeing advertising forced exposure: product placement, ads before previews, ads in snapchat or FB feed looking like native advertising, ads on bathroom stall
Trends in Wholesaling
need for greater efficiency added value customer relationships increase in customer demand for more services increase use of technology to boost productivity
Return on Advertising Investment
net return on advertising investment divided by the costs of the advertising investment
Balancing Customer and Competition Orientatiosn
not customer centered and not competitor centered --> product orientaiton not customer centered but competitor centered --> competitor orientaiton customer centered but not comeptitor centered --> customer orientation customer centered and competitor centered --> market orientation
Personal Selling
occurs when a company representative contacts a prospect directly regarding a product critical for many push strategies, B2B products, products that are complex and expensive, and products requiring a personal touch critical link between customer and the firm rich source of market information most flexible method of promotion but most expensive per contact promotional tool MOST SUCCESSFUL at gaining the sales and increasing customer satisfaction a two way flow of communication between a buyer and seller, designed to influence a person's or groups purchase decision personal presentation by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships
New forms of Digital, Social, and Mobile Marketing
online marketing (websites, online ads, email, online videos, blogs) social media marketing mobiel marketing SOLOMO social local mobile social: the platform you use to promote your message and engage with your target audience local: your area of focus: this can be physical or even online mobile: the medium by which your brand, its prospects and your customers connect allow advertisers to push notifications to potential customers who are geographically nearby
Three Strategies Value Disciplines for Delivering Sueprior Cusomter Value
operational excellence- provides superior value by leading its industry in price and convenience; works to reduce costs and create a lean and efficient value delivery system customer intimacy- provides superior value by precisely segmenting its markets and tailoring its products or services to exactly match the needs of targeted customers; close relationship with and intimate knowledge of the customer product leadership- provides superior value by offering a continuous stream of leading edge products or services; make its own and competing products obsolete; state of the art products and services regardless of cost
Basic Competitive Strategies
overall cost leadership- company works hard to achieve the lowest production and distribution costs; low costs let the company price lower than its competitors and win a large market share differentiation- company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry; customers would prefer to own this brand if price is not too high focus- company focuses its effort on serving a few market segments well rather than going after the whole market middle of the roaders- firms that do not pursue a clear strategy; do not perform well
Managing and Evaluating Channel Members
partner relationship management- forge long term partnerships with channel members to create a value delivery system that meets the needs of both the company and its marketing partners intermediaries as first lines customers and partners integrated partnership helps coordinate whole channel marketing efforts Evaluating Channel Members: must regularly check performance and sensitive to needs of channel partners
Marketing Concept
philosophy of customer value and mutual gain; its practice leads the economy by an invisible hand to satisfy the many and changing needs of consumers recognizes that organizations thrive by determining the current needs and wants of target customers and fulfilling them more effectively and efficiently than competitors do
Price Elasticity of Demand
price elasticity of customers to price changes in terms of the quantities they will buy % change in quantity demand / % change in price if elastic = sensitive; small % in changes in price large % changes in number of units bought; usually with luxury, non necessity goods inelastic- insensitive, ex) gas, toilet paper generally consumers more sensitive to price increase than price decrease (easier to lose customers than gain)
Price as a Signal
price has a symbolic value for consumers it can both be too high and too low price set too low may signal poor quality price set too high might signal low value
Optional Product pricing
pricing optional or accessory products sold with the main product companies must decide which times to includes in the base price and which to offer as options
Decoy Pricing
pricing options to influence other product prices its there to shape your perceptions about other prices
Captive Product Pricing
pricing products that must be used with the main product producers of the main products often price them low and set high markups on the suppliers consumers trapped into buying expensive captive products may comet to resent the brand could make others avoid buying device two part pricing- price of service is fixed fee plus variable usage rate
Disintermediation
process by which traditional intermediaries are eliminated as companies questions the value added by layers in the distribution channel
Direct Marketing Channels
producer --> consumers are useful because they allow for maximum control over presentation to the end user and positioning efforts traditional retail and sale force = high costs brick and mortar- face to face, visual presentation, tangibility, sensory experience; high initial investment and operating costs Direct Marketing: direct mail and catalog, high reach, reduces operating costs; no custom interaction Telemarketing- eases reach and personal contact; customer perception is negative, do not call lists E Marketing: website; high reach, low operating costs, customer privacy; limited sensory experience; impersonal Direct Sales Force: face to face, personalization; high cost of salary, benefits, and expenses
Word of Mouth Communication
product information transmitted by individuals C2C perceived as more reliable/ trustworthy than traditional marketing backed by social pressure to conform with recommendations influences approximately 2/3 of all sales of goods WOM is especially powerful when we are unfamiliar with a product category is more likely if the product is: visible/ observable, risky, distinctive, new, self image related brands need a WOM strategy (companies creates hashtags to try to spark conversation)
Sales Promotions
programs that marketers design to build interest in or encourage purchase of a product or service during a specified time period stimulate interest, trial, or purchase by final consumers or others in the channel marketing communication activities, other than advertising, personal selling, and public relations, in which a short term incentive motivates a purchase consumer promotions objectives urge short term customers buying or boost customer brand engagement trade promotion objectives getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space (discount, price off, off invoice, off list, allowance) business promotion objectives generate business leads, stimulate purchases, reward customers, and motivate salespeople (conventions, trade shows, sales contest)
What is public relations and what are the major PR tools?
public relations- building good relations with the company's various publics by obtaining publicity, building a good corp image, and handling or heading off unfavorable rumors, stories, and events press agency- involves the creation and placing of newsworthy information to attract attention to a person, product, or service product publicity pubic affairs- building an maintaining national or local community relations investor relations- involves maintaining relationships with shareholders and others in the financial community development- public relations with donors or members of nonprofit organizations to gain financial or volunteer support lobbying- involves building and maintain relations with legislators and government officials to influence legislation and regulation it is free but uncontrollable major tools: news, special events, written materials, audiovisual, corporate identity materials, public service activities
Types of Advertising Appeals: rational vs emotional vs moral
rational: relates to the audience's self interest; stress things like quality, economy, value, and performance emotional appeal: is an attempt to stir up positive or negative emotions to motivate a purchase; include humor appeals moral appeal: is directed at the audience's sense of right and proper; often used by charities
Retail Atmospherics
refers to how managers manipulate the design of the building, interior space, layout of aisles, texture of carpets and walls, colors, shapes, and sounds experienced by customers to achieve a certain effect atmosphere influences emotional response which influences behavior
Childrens Online Privacy protection Act COPPA
requires online operators targeting children to post privacy policies not heir sites notify parents about any information they are gathering and obtain parental consent before collecting personal information from children under 13
Target Costing
reverse the usual process of first designing a new product, determining its cost, and then asking can we sell that but instead start with an ideal selling price based on customer value considerations then targets costs that will ensure that price is met
Business Ethics
rules of conduct that guide actions in the marketplace What is right vs wrong differs among people, organizations, and cultures but some universal values
By Product Pricing
seeks a market for by products to help offset the cost of disposing of them and help make the price of the main product more competitive pricing low value by products to get ride of or make money on them
STP in a retail setting
segmenting, targeting, differentiation, and positioning involves the definition and profile of the market so the other retail marketing decision can be made product assortment, services mix, store layout, store atmosphere, location all working together to create value for targeted retail customer retailers must first segment and define their target markets and then decide how they will differentiate and position themselves in these markets
Amount of Service
self service limited service full service
Product Bundle Pricing
sellers combine several products and offer the bundle at a reduce price can promote the sales of products consumer might not otherwise buy, but the combined price must be low enough to get them to buy the bundle
Functions of Wholesalers
selling and promoting buying and assortment bulk breaking warehousing transportaiton financing risk bearing market information management services and advice
Competition Based Pricing
setting prices based on competitors strategies, costs, prices, and market offerings typical intended to capture market share it is risky because party allowing competition to drive our pricing strategy and easy to get into price was goal is to set prices according to the relative value created versus competitors
Sales Person Owned Loyalty
since the salesperson is the only tangible manifestation the company that they see the customers may become loyal to salespeople as well as to the companies and products they represent
Standardized Global Marketing vs Adapted Global Marketing and how this affects elements of the marketing mix
standardization- same marketing mix worldwide suggests that greater efficiencies and economies of scale are generated when all marketing is the same in each country localization/ adaptation- adjust marketing strategy and mix elements to each target market recognizes that customer satisfaction will be highest when the marketing mix is tailored to local needs and wants —> higher returns?
Everyday Low Pricing
stressing continuity of prices (at non sale to discount prices) reducing consumer search costs ( of finding good prices) ex) Walmart
How can sales force be organized?
territorial sales force structure- each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that territory product sales force structure- the sales force specializes along product lines customer or market sales force structure- organizes its sales force along customer or industry lines complex sales force structure- combines several types of organization workload approach- company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account then determines the number of salespeople needed to call on each class of accounts the desired number of time outside (field) sales force- sales people who travel to call on customers in the field inside sales force- salespeople who conduct business from their offices via telephone, online and social media interaction, or visits from prospective buyers team selling- using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
Pull Strategy
the company promotes directly to final consumers, creating a demand vacuum that pulls the product through the channel motivates consumers to actively seek out a specific product mass advertising, sales promotions, referrals works best for new products or when manufacture has a strong and visible brand producer marketing activities to consumer (consumer advertising, sales promo, other)
Push Strategy
the company pushes the product to resellers who in turn push it to consumers places the product in from of the consumer to make sure consumer is aware of its existence works well for impulse products and when manufacturer has good relationship with customers trade shows, show rooms producer marketing activities (personal selling, trade promotion, etc) from producer to retailer then retailer to consumer reseller marketing activities (personal selling, advertising, sales promo)
Supply Chain
the connected chain of all the business entities, both internal and external tot he company, that perform or support the logistics functions consists of upstream and downstream partners
Experience Curve/ Learning Curve
the drop in the average cost with accumulated production experience if a downward sloping experience curve exists this is highly signifiant for the company experience curve pricing carries risk including creating a cheap image for the product, assuming wrong assumptions about competitors, and miss new technology to make process more efficient
Steps in Personal Selling Process
the goal of the personal selling process is to get new customers and obtain orders from them AND building and maintaining profitable customer relationships 1. prospecting and qualifying 2. pre approach 3. approach 4. presentation and demonstration 5. handling objections 6. closing 7. follow up
Who Policies Business Ethical Standards
the government: regulatory agencies can impose fines and jail time Federal Trade Commission FTC limits unfair trade practices; investigate deceptive advertising Food and Drug Admin FDA regulates drugs, food, cosmetics Federal Communications Commissions FCC regulates broadcasting media EPA protects environment National Highway Traffic Safety Admin NHTSA regulates vehicle safety consumer and advocacy groups AARP, Better Business Bureau, PETA, Greenpeace consumers have the most influence over firms' ethics, because they have the ultimate punishment/ reward incentive
Place
the right product at the right price available in the right place to be bought by customers
Consumerism
the set of activities of government, business, independent organizations, and concerned consumers that are designed to protect the rights of consumers the power to change the world lies in your wallet wallet is mightier than the pen
Key Consideration in Designing a Marketing Communications Message
to be effective the sender's encoding process must mesh with the receiver's decoding process the marketing communicator must understand the customer's field of experience Steps in Developing Effective Communication: 1. identifying the target audience 2. determine the communication objectives: seek a purchase response, buyer readiness stages (stages consumer normally pass through on their way to making a purchase) 3. design a message- message should get attention, hold interest, arouse desire, and obtain action message content- rational, emotional, or moral appeal message structure- draw a conclusion or leave it to the audience, present the strongest arguments first or last, present a one sided argument or two sided argument MEssage Format- headline, copy, illustrations, and color; incorporate motion, pace, and sound, texture, scent, color, size, and shapes 4. choose media through which to send the message 5. select the message source 6. collect feedback
Things to Use to avoid increasing price:
unbundle market offering shrink the product substitute less expensive ingredients if you have to increase price make sure company communicates why prices are being raised
Social Selling
use of online, mobile, and social media to engage customers, build stronger customer relationships, and augmented sales performance new digital technologies are providing salespeople with powerful tools for identifying and learning about prospects, engaging customers, creating customer value, closing sales, and nursing customer relationships social selling technologies are helping to make sales forces more efficient, cost-effective, and productive its not cheap
Reminder Advertising
used to remind or prompt repurchase particularly important for products that have gained market acceptance and are in the maturity PLC help maintain customer relationships, keeps customers thinking about product, remind consumers that product may be needed in near future, remind consumer where to buy keep brand in customers mind during off seasons
Forms of Digital and Social Media Marketing
using digital marketing tools such as websites, social media, mobile apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital devices personal selling direct marketing direct mail direct marketing catalog direct marketing telephone Marketing direct response television marketing Kiosk marketing digital direct marketing online marketing also mobiel apps and mobile marketing
High Low Pricing
using temporary price reductions to encourage sales attracts less $ sensitive consumers creates thrill and excitement ex) Target and Kohl's constant sale all the time (get loyalty cards and Kohl's cash)
Market Centered Companies
watching both their customers and their competitors; but must not let competitor watching blind them to customer focusing
Market Skimming Pricing
when product introduced, set a high initial price with goal of skimming revenue layers from market ex) Apple sets a really high price because users will buy and then after 6 months drops it by $300 to keep capturing different segments makes fewer but more profitable sales can signal high quality to the market, potential to quickly earn back from R&D and $ invested into product, and tests price sensitivity (drop if too high, but hard to raise if too low) undermined if it becomes easy for competitors to enter market, product quality/ image and consumer demand must support the price, high costs of producing small volumes, and consumers who purchased at higher $ may be irritated when $ drops
Market Penetration Pricing
when product introduced, set a low initial price with the goal of quickly building sales, market share, and profits quickly gain market entry and market share, rapid growth in sales volume can quickly decrease production cost, and discourage competition from entering market firms must have capacity to satisfy rapid increase in demand, low price may be interpreted as signal of low quality, and could be leaving money on the table
