MKT 300 Eaton Exam 4 ASU

Increase spending if

the increased

Budget Approaches

- Affordable method - Arbitrary allocation method - Percentage of Sales Method - Competitive parity method - Return on Investment method

What affects Price?

- Competition - Distribution strategy - Promotion strategy - The relationship of price to quality - Substitutes - Compliments

Media Scheduling

- Continuous Media schedule - Flighted MS - on/off randomly - Pulsing MS - fluctuate, but always run a few ads - Seasonal MS

Alternate Advertising

- Even creation - Product placement - Guerilla Marketing - unconventional - Stealth Marketing - undercover baiting - Viral marketing

Ethical Ad Issues

- False Testimonials - Bait and Switch - Misleading Demo (Campbell's) - Puffery/Outrageous lie (Tropicana)

Major Media Types

- Institutional (image) - Product (product)

IMC

- Integrated Marketing Communication - carefully crated marketing (snickers)

Factors influencing complaining

- Level of dissatisfaction - Personality/attitude - Amount of benefit to be gained - Attributions - "Customer is King"

New product pricing

- Market-Skimmering (high initial price) - Market-Penetration (low initial pricing) - Status-Quo

Compliment

- Needed with the thing

Advertising and Market Shares

- New brands with a small mkt share spend more on ads - At a certain level of spending, returns diminish - ... higher...

Product Advertising types

- Pioneering - Competitive - Comparative

Market Response

- Redemption rate - displacement rate - Acquisition rate - Conversion rate - product line effects

Primacy effect

- Remember things better at the beginning

Recency Effect

- Remember things better when most recent (end)

Common Executional Stylesf

- Scientific - Slice of life - spokes-person/testimonial - fantasy - humorous -real or animated - mood or image - demonstration - musical

External Factor of Pricing

- The Marketing Objectives - The Marketing Mix Strategy - The Cost

Internal Factor of pricing

- The Marketing Objectives - The Marketing Mix Strategy - The Cost

What is price?

- The value that you exchange for getting the goods/service - Could be money or something else

Product Advertising

- Touts the benefits of a specific good or service

AIDA Concept

- attention (cognitive/thinking) - interest (affective /feeling) - desire (conative /doing) - action

Price bundling

- combine related goods into package deal - phone, internet, cable

marketing is all about _____ with your customer

- connecting

Substitutes

- could replace the thing

Marketing is solving customer problems by

- creating, communicating, and delivering value.

4 Cs

- customer value - cost - convenience - communication

- flexible (variable) pricing

- different segments pay different prices - kids eat free, off peak, senior citizen or students

Price adjustments

- discounts - flexible (variable) pricing

Media types

- efficiency - clutter - impact - engagement

Persuasive promotion

- encourage brand switching - change customers perceptions of product attributed - influence immediate buying decision - persuade customers to call

Institutional Advertising

- enhances company image, not product

Objective and Task Method

- establish objectives - determine specific tasks - estimate costs associated with tasks

If there is a time wiht zero ads it is If ther is a time with few ads it is probably

- flighted - pulsing

Prospecting

- generating leads - qualifying leads - recognized need - buying power - receptivity and accessibility

Lifetime Value of a Customer

- identify most likely to purchase again - rank "best" customers - Identify most profitable customer

S-Shaped Response Function

- little spending, not much change - over spending not much marginal increase - middle spending = just right

Status Quo

- maintain price - meet competitor price

Sales oriented

- market shares - sales maximum

Marketing Objectives

- maximize profits - gain market share - infer a level of quality - survive

Conversion rate

- number of future purchases by new customers (number who stay)

Pyschological

- odd/even pricing - 99 principle - Reference pricing (what you expect)

Personal Selling Advantages

- personal message - controllable - more effective -high cust. satisfaction - detailed demonstration

Profit -Oriented

- profit maximization - satisfactory products - return of investment

Personal Selling best when

- push strat - complex product - expensive - negotiate - custom product - infrequent purchase

Captive product prcing

- razor + blades mentality - get you to buy the main thing, and you will buy the auxillary shit

Advertising

- reason to buy

Reminder promotion

- remind customers that product may be needed - remind customers where to buy product - maintain customer awareness

External Factors of Price

1. Demand for product 2. Competition - competitor prices - strength of competition 3. Economy - cost of components - Economic conditions

Unique Selling Proposition

desirable, exclusive, believable theme (sometimes a slogan)

Marketing =

segmentation, targeting, and positioning

Elastic demand

- change price a little, people run to or away

Inelastic Demand

- change price, people still need it

experimental Marketing

- connect with the customer - provide the total product experience

Sales promotion

- incentive to buy - impacts behavior, not attitude

Informative promotion

- increase awareness - explain how product works -

Audience selectivity

The ability of advertising to reach a defined market

Reach

The number of exposed targets

Pioneering

- Used in PLC intro stage, stimulate primary demand for prod category

Markeitng Mix Strategy

price consistent with product, price, people

Household using TV

(HUT) Percentage of homes in an areas watching TV at a given time

Competitive

- "I'm a great product, buy me"

Acquisition rate

- % of purchases by those who wouldn't buy anyway (most important part of any sales promo)

Displacement rate

- % of those who would buy anyway

Redemption rate

- % responding to incentive

Average business loses what percent of customers each year?

- 10%

Most business dont hear form what percent of its unhappy customers?

- 96%

Comparative

- Actually calling out and comparing to someone

Attribution Theory

- Affects cust sat/dissat in terms of: - Stability? - frequency - Focus - internal or external - Control-ability - preventable?

Marketing is developing your brand with 55 minutes of _______ and 5 minutes of tactics

- strategy

Product line effects

- the impact the promotions have on related products

Sales promotions

- try to change behavior

Customer Relationship Mgmt

- used to establis, develop, help, maintain customer sales

Product mix pricing strategies

-Portfolio Pricing (Pay more for Extras) -Captive-Products Pricing (Razor and Blades) -Price Bundling (package deals)

... coefficient

... 1

Methods of COst-based pricing

1. Markup pricing - keystoning (double the cost) 2. Break even pricing

Marketing communication process

1. source 2. encoding 3. the message (comm channels) 4. decoding 5. receiver

Marketing orientation

Acquire market info -> assess Info -> Respond (adjust 4 Ps)

You stay _____ SunDevils

Classy

Personal Selling Process

Company rep sells to you - prospect - research - approach - sales pres - overcome objections - close the sale - follow up

________ are more likely to do business again than non complainers

Complainers

CPM

Cost per thousand ((Cost of ad space)/impressions)*100 $400 to reach 2000 people = 400/2000

Share

HH tuned to show/HH using TV

Rating

HH tuned to show/total TV HH

Impact

How credible is the medium?

Benefit

How it will help

Clutter

How many other ads will people see at the same time?

Engagement

How much do people connect

Efficency

How much does each impression cost?

medium amount of money spent on

Media adverts and consumer promos

Frequency

Number of times some one will hear soemthing

share of audience

Percentage of HUT tuned to a show

Program Rating

Percentage of TV HH tuned to a show - rating point - 1%

Attribute

What you bring to the table

Source control vs Credibility

high control / low credibility - advertising - sales promo - personal selling - public relations - word of mouth Low control / high credibility

Demographics suck because

physchographics reveal more

Tradition selling vs Relationship selling

trad = lots of people and lots of nos rel = a few very important people, very personal

Most money spent on

trade promotions