AEM 2400
Extensive Decision Making
-High levels of involvement -High cost goods -Evaluation of many brands -Long time to decide -May experience cognitive dissonance.
Marketing Implications of Involvement
-High-involvement purchases require: extensive and informative promotion to target market. -Low-involvement purchases require: in-store promotion, eye-catching package design, good displays, coupons, cents-off, 2 for 1 offers
Opinion Leaders
-Individuals who influence the opinions of others. -Marketers are looking to web blogs to find opinion leaders. -Also teenagers, movie stars, sports figures, celebrities
Promotion
-Informs, educates, persuades, and reminds of product or service. -Advertising -Public Relations -Sales Promotions -Personal Selling
Information Search
-Internal Information Search: Recall information in memory. -External Information Search: Seek information in outside environment. (both nonmarketing controlled and marketing controlled.)
Hispanics
-Largest minority group -14.4% of population -Many backgrounds -Very brand loyal
Stimulus Discrimination
-Learning to differentiate among similar products. -Ex: use promotions to point out brand differences may not recognize.
Routine Response Behavior
-Little involvement in selection process -Frequently purchased low cost goods may stick with one brand. -Buy first/evaluate later -Quick decision
Limited Decision Making
-Low levels of involvement -Low to moderate cost goods -Evaluation of a few alternative brands -Short to moderate time to decide
Place
-Making products and services available when and where customers want them. -Also refers to physical distribution
Product/Market Classification
-Market Penetration Strategy = existing market and existing product. -Market Development Strategy - new market and existing product. - Product Development Strategy = Existing market and new product. -Diversification Strategy = New market and new product
Growing Ethnic Marketing
-Minority population of the U.S. reached 110 million in 2011. -$1.4 trillion hispanic purchasing power.
Postconventional Morality
-Morality of mature adult. -Less concerned about others and more concerned about how they see and judge themselves over the long run.
Price
-Most flexible of 4 Ps. -Quickest element to change -Important as a competitive weapon
Conventional Morality
-Moves from egocentric viewpoint towards the expectations of society. -Loyal obedience to organization.
Marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large
cold calling
approaching a potential buyer with no prior knowledge about them
competitive intelligence
assess competitors and vendors
factors that affect elasticity
availability of substitutes, price relative to purchasing power, durability, other uses of the product, rate of inflation
Sustainable supply chain management
balances economic and environmental thought in supply chains
universal product codes
bar code
core service
basic service provided by a firm
distinctions between businesses and nonprofits
benefit complexity, benefit strength, involvement
advantages on online focus groups
better participation rates--cost effectiveness-broad geographic scope--accessibility--honesty
microblog
blogs with character limits, ie twitter
zero percent financing
borrow money with no interest
Owned media
brands publish their own content on websites, social media pages, etc.
management decisions problem
broad, overarching decisions
public affairs
building and maintaining local, national, or global community relations
competitive advertising
builds demand for a specific brand
loyalty marketing program
builds longterm, mutually beneficial relationships between companies and their key consumers (ie: Amex and their rewards)
marketing channel
business structure of independent organizations that reaches from the point of production to the consumer
franchise
business where operator is granted a licence to operate and sell products under a larger supporting organization (ie subway)
FOB Origin Pricing
buyer absorbs cost from the shipping point (free on board)
packaging functions
containing and protecting products--promoting products--facilitating storage, use, and convenience-- facilitating recycling and reducing environmental damage
encoding
conversion of sender's ideas into a message
cost per click
cost associated with a customer clicking an ad online
escalator pricing
final selling point reflects increase in cost between the start and end of the process
needs assessment
find out as much as possible about the potential client's position
cycle stocks
finished products stored that are expected to be sold in a given demand period
business analysis
firm generates preliminary demand, cost, sales and profitability for a new product
mall intercept interview
firm rents space in mall and asks people about what they are buying: about as effective as telephone interviews
Level 1 CRM
firm uses incentives to encourage customers to continue doing business with it
big data
exponential growth in volume, variety etc of data
consumer penalites
extra fees paid by consumers who violate terms of purchase agreement
safety stocks or buffer stocks
extra products stores just in case
interpersonal communication
face to face communication between two or more people
agents and brokers
facilitate movement of products down the channel, but never take title to the product
product development and commercialization process
facilitates the join development and marketing of new offerings among a group of supply chain partner frims
average fixed cost
fixed cost/quantity of output
unfair trade practice act
floored wholesale and retail pricing
cross-tabulation
looking at responses to one questions relative to the responses to another
bait pricing
low pricing ads then highly persuasive personal selling to get customers to buy more expensive item
discount store types
full line (limited service, broad range of products: walmart), supercenters (target), specialty discount stores (best buy), warehouse membership club
pricing during maturity stage
further price decreases as there is more competition, and it becomes harder to maintain all the channels necessary
Gap 3
gap between service quality specifications and service that is provided
Gap 5
gap between the service people receive and the one they want
Gap 1
gap between what customers want and what management think customers want
Gap 2
gap between what management thinks customers want and quality specifications
Gap 4
gap between what the company provides and what the customer is to it provides
product line
group of closely related products. Benefits include Advertising economies, Package uniformity, Standardizing components, Efficient sales and distrubution, and evaluation of quality.
flighted media schedule
heavy ads every other month or every two weeks.
intro promotional strategy
heavy advertising and pr to build awareness, sales promotion to induce trial, personal selling to obtain distribution
growth promotional strategy
heavy advertising and pr to build loyalty,decreasing use of sales promotion, personal selling to obtain distribution
pricing during the introductory stage
high prices recover developmental cost
preapproach
homework a salesman does before meeting the client
elasticity of demand
how consumers' demand for a product changes with price. =%change in quantity demanded/%change in price
gross margin
how much the retailer make as a percentage of sales
employee and investor relations
maintaining positive relationships with employees, shareholders, and others in the financial community
inventory control system
maintains assortment of materials and products to meet customer demand
supplier relationship management process
maintains relationships with valued suppliers to streamline process
manufacturing flow management
makes sure companies have the resources and flexibility to move products through the stages in the chain
returns management process
manage volumes of returned products efficiently
cooperative advertising
manufacturer and retailer split cost of ads (ie estee lauder and macy's)
outsourcing
manufacturer contracts out its logistics to an outside company
push strategy
manufacturer promotes to wholesaler, who buys then promotes, etc
store demonstrations
manufacturers perform in-store examples of their product
business meetings, conventions, and trade shows
manufacturers show off their goods
maturity stage
market approaches saturation as growth slows
factors that affect channel choice
market factors, product factors, producer factors
direct marketing
marketing to customers at their home or office
price bundling
marketing two or more products together for a special price
keystoning
markups based on experience
patronage oriented pricing for services
maximizes number of customers by having different prices
revenue oriented pricing for services
maximizes surplus of income over costs
intensive distribution
maximum market coverage, very accessible to buyers (who may be unwilling to search)
supply chain resiliency
measures that ensure a problem won't derail the supply chain for too long
consumer generated media
media created and shared among other consumers
convenience stores
mini supermarkets , usually more expensive due to increased level of convenience
Relationship integration
two or more companies develop a social connection that guide their professional relationship
persuasive labeling
i. Focuses on promotional theme ii. Consumer information is secondary
informational labeling
i. Helps make proper selections ii. Lowers cognitive dissonance iii. Includes use/care
lead generation
identification of customers most likely to buy a product or service
Gap model
identifies gaps in service delivery
generic product name
identifies product by class or type and can't be trademarked
advertising appeal
identifies the reason a person should buy the product
advertising objective
identifies the specific communication task the a campaign should accomplish
Behavioral targeting
ie: using cookies to see websites visited
three defenses for price discrimination
if the cost varies to different customers, market conditions dictate it, or to stay even with competition in a certain area
institutional advertising
improves the image of the firm/industry
noncorporate blogs
independent of corporate agendas, blogs that review products are perceived to be more authentic
channel power
influence one channel member has on the rest of the channel
lobbying
influencing legislators
Primary Data
information collected for the first time for your purpose
infoScan
information gathered from scanning barcodes
goals of promotion
informing, persuading, reminding, connecting
Order of adaptation to product
innovators-->early adopters-->early majority --> late majority --> laggards
order fulfillment process
integrating the supply in such a way that time between order and receipt is minimized
Integrated Marketing communications
integration of promotional mix to guarantee consistency in the messages associated with a product or firm
nontraditional channels
internet, infomercial, mail order, etc.
decoding
interpretation of language and symbols sent by the source
Executive interviews
interviewing business people at their offices
product life cycle
introductory stage, growth stage, maturity stage, decline stage
work-in-process inventory
inventory that is being assembled
in-transit inventory
inventory that is moving from one stage in the chain to another
seasonal inventory
inventory to accommodate seasonal spikes in demand (ie: xmas)
channel partnering
joint effort of all channel members to satisfy customers
test marketing
limited introduction of a product to determine initial reactions
things to consider when setting social media objectives
listen and learn, build relationships and awareness, promote products and services, manage your reputation, improve customer service
stages in making a social media plan
listen to customers, set social media objectives, define strategies, identify target audience, select the tools and platforms, implement and monitor strategy
People Processing
types of services directed directly at the customer (healthcare)
nueromarketing
understanding people's response to promotion and purchase motivations
zone pricing
uniform pricing within zones, but zones at different prices
implied warranty
unwritten guarantee that product is good
search quality
a quality that can be assessed before purchase
experience quality
a quality that can only be assessed after use
intangibility
a quality that distinguishes services from goods, cannot touch it
Open-ended question
a question that encourages multi-word answers in the respondent's own words
referral
a recommendation one customer makes to an associate about a product
independent retailer
a retailer owned by an individual entity and is not associated with with a larger network
chain store
a retailers part of a group of stores owned and operated by the same company
advertising
any form of impersonal paid communication where company is identified
electronic distribution
any kind of delivery of a product over the internet
noise
anything that interferes with, distorts, or slows the transmission of information
unitary elasticity
demand is elastic in such a way that price change wont change total profits
media schedule
designates the media to be used and the dates to use them
direct retailing
retailers sell at the customers home or office
marginal revenue
revenue gained by adding one more unit of output
profit
revenue-cost
Retaining customer loyalty
rewarding loyal customers with things like free birthday coffee from starbucks
frequent buyer program
rewards people who make multiple purchases
Pyramid of Corporate Social Responsibility
(From bottom to top) -economic -legal -ethical -philanthropic
CRM management system
(cycle) identify customer relationships-->understand interactions with current customer base--> capture customer base-->store and integrate customer data using information tech-->identify best customers-->leverage customer info
materials requirement planning
(materials management) system that makes sure the right inventory is held by all parties of the chain
Benefits of creating ethical guidelines...
-Helps identify acceptable business practices. -Helps control behavior internally. -Avoids confusion in decision making. -Facilitates discussion about right and wrong.
Evaluating the set
-analyze product attributes -use cutoff criteria -rank attributes by importance
Corporate Social Responsibility
-A business's concern for society's welfare. -Consider both long-range interests of company and company's relationship to society. -CSR
Benefits of a Marketing Plan
-Helps employees and managers work toward common goals. -Allows you to examine the marketing environment. -Serves as a reference point for the success of future activities.
Baby Boomers
-1946-1964 -working longer -$1 trillion in spending power -active and affluent -willing to try new brands -growing incomes
Generation X
-1965-1978 -40 million consumers -independent, rebellious, entrepreneurial, anti-establishment, skeptical, ecology-minded, anti-consumerist, short attention span, multi-career minded
Generation Y
-1979-1994 -millennial generation -60 million -Children of boomers -Impatient -Family oriented, inquisitive, opinionated, diverse (most ever), good time management, savvy, aware, sophisticated.
Conditions of Exchange
-2 parties -Each party has something of value -Each party is capable of communication and delivery -Each party is free to accept or reject the exchange offer -Each party believes it is appropriate or desirable to deal with the other party
Tweens
-8-12 years old -20 million -Spend $50 billion annually -90% online
Social Class
-A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms. -Indicates which medium to use for advertising and helps determine the best distribution for products
Attitude
-A learned tendency to respond consistently toward a given object. -If Positive: reinforce positive attitudes toward the product or service. -If Negative: try to change the market's attitude.
Value
-A strongly held and enduring belief. -Formed through interaction with family, friends, and influences such as teachers, religious leaders, and politicians. Also shaped by environment. -American values: self-sufficiency, upward mobility, work ethic, conformity.
External Stimuli
-Advertisements -brand Image -Package -Design
Beliefs
-An organized pattern of knowledge that an individual holds as true about his or her world. -Develop beliefs about product's attributes--> form brand image --> brand image shapes consumers' attitudes toward the product.
Three Target Market Strategies
-Appeal to the entire market with one marketing mix. -Concentrate on one market segment. -Appeal to multiple market segments using multiple marketing mixes.
Social Factors
-Attitudes, values, lifestyle -Social change is the most difficult external variable to forecast.
Marketing to Boomers
-Big spenders!! -Monthly or quarterly cash-back savings programs that reflect spending levels -Pursue the "up-sell" opportunities -Big on-line shoppers and Twitter users...reach them
Women...
-Bring in half or more of household income. -Control 51.3 % of the private wealth in the U.S. -Control 80% of household spending.
4 Strategies for Products
-Build - grow the SBU if potential to be a star. -Hold - preserve market share if successful cash cow. -Harvest - increase short-term cash flow without concern for long run. Used when cash needed from cash cow. -Divest - get rid of the SBU. Usually dog or problem child
Changing Beliefs and Attitudes
-Change the relative importance of beliefs about an attribute. -Change beliefs about attributes -Add new beliefs
Preconventional Morality
-Childlike and self-centered -Based on punishments/rewards
Selective Distortion (perception)
-Consumer changes or distorts information that conflicts with feelings or beliefs.
Economic Factors
-Consumer incomes -Purchasing Power -Inflation -Recession
Selective Exposure (perception)
-Consumer notices certain stimuli and ignores others. -Color and packaging are important stimuli. -Vividness and shock value are also important -ExL exposed to 2500 advertisements a day but only notice 10
Selective Retention (perception)
-Consumer remembers only that information that supports personal beliefs.
Elements of Consumer Decision-Making Process
-Cultural -Social -Individual -Psychological
A market-oriented firm...
-Defines business in terms of benefits others seek. -Aims at specific groups of people -Recognizes importance of product place, promotion, and pricing decisions. -Marketing is responsibility of whole organization.
A sales-oriented firm...
-Defines business in terms of goods and services. -Targets product to everyone -Place higher premium on sale than customer -Generates volume through intensive promotional activities
Marketing Myopia
-Defining a business in terms of goods and services rather than in terms of the benefits customers seek. -Narrow-minded mission statement -Executives fail to realize broad scope of business -Avoid by being customer focused -Ex: Smith Corona typewriters, Blockbuster
External environment consists of...
-Demographics -Social change -Economic conditions -Political and legal factors -Technology -Competition
Market Opportunity Analysis(MOA)
-Describe and estimate the size and sales potential of the market segments that are of interest to the firm. -Assessment of key competitors in these market segments.
Reference Groups
-Direct: Primary (family, friends, coworkers) and Secondary (clubs, professional groups, religious groups). -Indirect: Aspirational (organizations you would like to join) and Nonaspirational (groups you want to avoid being associated with).
Motivation
-Driving forces that cause a person to take action to satisfy his or her needs. -Maslow's Hierarchy of Needs
Food and Drug Administration (FDA)
-Enforces regulations against selling and distributing adulterated food and drug products.
3 Approaches to Ethical Decision Making
-Examine the consequences of the decisions. -Relies on rules and laws to guide decision making. -Relies on the level of moral development.
Types of Learning
-Experiential: An experience changes behavior. -Conceptual: Not learned through direct experience.
Technological Factors
-External technology allows managers to operate more efficiently or create a better product. -May render products obsolete.
Mission Statement
-Foundation of a marketing plan -What business is the company in? -Forms boundaries for all decisions, objectives, and strategies of marketing plan.
Marketing to Greatest Generation
-Freebies and discounts -special packs for smaller households -Better signage -More forgiving package design -Sharpen on-line content because they are on line!
Lifestyle Changes
-Growth of dual income families = increased purchasing power. -Approximately 59% of work-age females are in workforce -Women now have different expectations. -Single households outnumber married households with kids -Greater effect on marketing than any other social change.
External Information Search
-Need less information = less risk, more knowledge, more product experience, low level of interest, confidence in decision. -Need more information = more risk, less knowledge, less product experience, high level of interest, lack of confidence.
Competitive Factors
-Number of competitors/size of competitors -Competition for market share and profits. -Global competition
Measurements of Social Class
-Occupation -Income -Education -Wealth
Stimulus Generalization
-One response is extended to a second stimulus similar to the first. -Ex: extend brand name to new products (iPod)
Greatest Generation
-Parents of Boomers -WWII -Work together to change world -Moral sense of right and wrong -Frugal - lived through Great Depression
Need Recognition
-Present status vs. preferred state. -Marketing helps consumers recognize an imbalance between present status and preferred state.
Federal Trade Commission (FTC)
-Prevents persons from using unfair methods of competition in commerce. -Regulates advertising on the internet as well as internet abuses of consumer privacy.
Factors Determining Level of Consumer Involvement
-Previous Experience = Quick Decisions -Greater Interest = Greater Involvement -Greater Perceived Risk of Negative Consequences = Greater Involvement -Situation= everyday wine, limited involvement...company...more involvement -Greater Social Visibility = Greater Involvement
Product
-Product offering and strategy -Physical unit -Packaging -Warranty -After sale service -Brand name -Company image
4 Marketing Management Orientations
-Production -Sales -Marketing -Societal
How do social factors influence purchase behavior?
-Products purchased -Prices paid for products -Effectiveness of specific promotions -How, where, and when people expect to make purchases.
Foreign Corrupt Practices Act (FCPA)
-Prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries. -Criticized for putting U.S. businesses at a competitive disadvantage.
Consumer Product Safety Commission (CPSC)
-Protects the health and safety of consumers in and around their homes. -Sets safety standards for almost all products consumers use.
Marketing Objectives
-Realistic -Measurable -Time Specific -Consistent with and indicating the priorities of the organization -Should motivate employees, provide management direction, communicate marketing management philosophy, force executives to think clearly, and allow for better evaluation of results.
Social Influences
-Reference Groups -Opinion Leaders -Family Members
Learning
-Reinforcement (positive-repeat behavior, negative-avoid behavior, neutral-activity needed.) -Repetition leads to increased learning
Types of Consumer Buying Decisions
-Routine response behavior -Limited decision making -Extensive decision making
Morals
-Rules people develop as a result of cultural values and norms. -Culture is a socializing force that dictates what is right and wrong. -Morals are the foundation of ethical behavior.
Influence of Reference Groups
-Serve as information sources and influence perceptions. -They affect an individual's aspiration levels. -Their norms either constrain or stimulate consumer behavior.
Sustainability
-Socially responsible companies will outperform their peers. -It is in business's best interest to find ways to attack society's ills.
Ethics
-The moral principles or values that generally govern the conduct of an individual or group. -A standard of behavior by which conduct is judged. - Morals are the foundation of ethical behavior
Component Lifestyles
-The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle. -Custom-made life
Perception
-The process where we select, organize, and interpret stimuli into a meaningful and coherent picture. -How we see the world around us.
Marketing to Generation X
-Time precious commodity... SO make shopping easy for them -Child care centers and activities -In store cooking/ crafting classes for family fun -Deliver quick hit information and offers using new media for fast results
Psychological Influences
-Tools we use to recognize feelings, gather and analyze information, formulate thoughts and opinions and take action. -Perception, motivation, learning, beliefs & attitudes.
The Marketing Mix (4 Ps)
-Unique blend of product, place, promotion, and pricing. -Marketing manager can control each element but all must be blended to achieve optimal results.
Marketing to Generation Y
-Use current music in store -Coffee stations with battery chargers and in-store WiFi -Convert the need for immediate gratification into impulse buy sales with great end caps and front of store bins
Recognition of Unfilled Wants
-When a current product isn't performing properly. -When the consumer is running out of a product -When another product seems superior to the one currently used
Internal Stimuli
-sight -smell -taste -touch -hearing
Culture
-what we eat, how we dress, what language we speak.... Includes social class.
Types of Brands
1) Generic 2) Private Label - band name owned by wholesale or retailer. - individual, family, or combo. 3) Manufacturers - brand name of manufacturer. - Family or individual 4) Captives - only sold at one store, but no evidence of affiliation to store
Steps in Segmenting Markets
1) Select Market 2) Choose bases 3) Select descriptors 4) Profile and Analyze segments
Elements of A Marketing Plan
1. Business mission statement 2. Situation or SWOT analysis 3. Objectives 4. Market Strategy, Target Market Strategy, Marketing Mix (Product, Promotion, Price, Distribution)
Consumer Decision-Making Process
1. Need Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase 5. Postpurchase Behavior
Marketing Implications of Perception
1. What are important attributes consumers want in products? 2. Design signals to communicate these attributes: Price, brand names, quality/reliability, product changes/repositioning.
exchange utility
when a retailer swaps the product for a reasonable amount of money
stockout
when customers buy all of a stock of a product
Competitive Advantage
A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. -cost, product/service differentiation(longer lasting than cost), niche(good for small companies w/ limited resources)
BCG Portfolio Matrix
A tool for allocating resources among products or SBUs on the basis of relative market share and market growth rate. - High market share/ high market growth rate = star - High market share/ low market growth rate = cash cow - Low market share/ high market growth rate = question mark/problem child - Low market share/ low market growth rate = dog
Marketing Plan
A written document that acts as a guidebook for marketing activities.
Sustainable Advantage
An advantage that cannot be copied by the competition.
Types of Channel Relationships
Arms length, Cooperative, Integrated
issues relating to target markets of nonprofits
apathetic or strongly opposed targets, pressure to adopt undifferentiated segmentation strategies, complementary positioning.
Relationship Marketing
Building lasting relationships with customers through: -customer-oriented personnel -great employee training -empowering employees to solve customer problems
Parts of business processes
CRM, Customer service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development and commercialization, returns management
Post Purchase Behavior
Cognitive Dissonance-Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. Marketing reduces by follow-ups guarantees, and warranties. Reduce Dissonance by: -Seeking info that reinforces positive ideas about the purchase. -Avoiding information that contradicts the purchase decision. -Revoking the original decision by returning the product.
Environmental Scanning
Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan. Ususally includes social, demographic, economic, technological, political, legal, and competitive.
Environmental Scanning
Continually collecting and evaluating environmental information.
Exchange
Desired outcome of marketing - give up something to receive something you'd rather have.
Positioning
Developing a specific marketing mix to influence poteintial customer's overall perception of a brand, product line, or organization.
Marketing Orientation
Focuses on customers' wants and needs while meeting organizational objectives. Can be too customer focused/must also be able to understand the competitive arena.
Production Orientation
Focuses on the internal capabilities rather than on the desires and needs of the marketplace. This orientation looks at what the company is best at making at.
Evoked Set
Group of brands, resulting from an information search, from which a buyer can choose.
Marketing Research Process
Identify and formulate the problem/opportunity --> Plan the research design and gather secondary data-->Specify the sampling procedures-->collect primary data-->analyze the data-->prepare and present report-->follow up
SWOT Analysis (situation analysis)
Identifying internal strengths and weaknesses and external opportunities and threats.
Differences between services and good
Inseperability, intangible, heterogeneity, perishable.
Political and Legal Factors
Laws and regulations protect: -new technology -society -businesses -consumers
Focusing on customer value...
Offer products that perform, earn trust, avoid unrealistic pricing, give the buyer facts, offer organization wide commitment in service and after sales support
Maslow's Hierarchy of Needs
Part of Psychological factors for decision making (From bottom to top) 1. Physiological 2. Safety 3. Social 4. Esteem 5. Self-Actualization
Marketing Research
Process of planning, collecting, and analyzing data relevant to a marketing decision
computer assisted personal interviewing
Researcher conducts in person interview with help of computer prompted questions
Societal Orientation
Satisfying customers' wants and needs while benefiting society. Can be costly/inefficient.
Level 2 CRM
Seeks to buils social bond with customer
ways personal selling affects Aida
Sorta: attention. Yes: everything else
Level 3 CRM
Structural bonds between firm and customer
Target Market Strategy
Take a group of individuals or organizations and segment them into groups that share one or more characteristics who need similar products.
Sales Orientation
The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. Can lead to lack of understanding of wants and needs of the marketplace. Also inward focused.
Green Marketing
The development and marketing of products designed to minimize the negative effects on the physical environment.
Strategic Planning
The managerial process of creating and maintaining a fit between the organization's objectives and resources, and evolving market opportunities. Goal- long term growth and profit
Demographic Factors
The study of people's vital statistics, such as their age, race and ethnicity, and location.
Functions by intermediaries
Transactional(promotion), Logistical, Faciliatating
audience selectivity
a medium's ability to reach the target market
Marketing Research problem
What information is needed and how to obtain it
Environmental Management
When a company implements strategies that attempt to shape the external environment within which it operates.
rebate
a price reduction after the purchase
United Nations Global Compact (UNGC)
World's largest global citizenship initiative.
corporate blog
a blog sponsored by a company and disseminate marketing controlled info
push money
a bonus intermediaries receive for promoting a certain product
scaled-response question
a close-ended question designed to measure intensity
functional discounts
a discount given to a wholesaler who provides a function for the manufacturer
training
a manufacturer will train an intermediary's personnel to handle and promote product
destination store
a store customers seek out, often in isolated location
Types of Products
a) Convenience -relatively inexpensive, merits little shopping efforts b) Shopping - usually a little more expensive, found in fewer stores. homogeneous (tvs, washers) or heterogeneous (universities) c) Specialty - particular item, difficult to substitute. d) Unsought - product buyer does not actively seek (insurance, burial plots)
Brand footprint
a) Essence b) personality c) core values.
Bases for Segmentation
a) Geography b) Demographics(Age, Gender, Income, Ethnicity, Family Life Cycle) c) Psychographics(Basis of personality and lifetsyle) d) Benefits sought(cluster customers based on benefits they seek from product) e) Usage rate(80/20 principle: 20 percent generate 80 percent of demans
Criteria for Market Segmentation
a) Substantial b) Measurable and Identifiable c) Accessibility d) Responsiveness
Undifferentiated Targeting Strategy
a. 1 Big Market b. 1 Marketing Mix c. What are the advantages? i. Potential savings on production and marketing costs d. What are the disadvantages? i. Unimaginative product offerings ii. Company more susceptible to competition
Multi-segment Targeting Strategy
a. A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each b. Advantages i. Greater financial success ii. Economies of scale c. Disadvantages i. High costs ii. Cannibalizations
Concentrated Targeting Strategy
a. A strategy used to select one segment of a market for targeting marketing efforts. A company selects a niche for targeting its marketing efforts b. Advantages i. Concentration of resources ii. Meets narrowly defined segments iii. Small firms can compete iv. Strong positioning c. Disadvantages i. Segments too small or changing ii. Large competitors may market to niche segment
seasonal media schedule
ad schedule used for seasonal goods
product line extension
add to an existing product line
comparative advertising
ads that compare two competing brands
decline promotional strategy
advertising and pr drastically decreased, sales promotion and personal selling maintained at low levels
benefits from organizing related items into product lines
advertising economies--package uniformity--standardized components--efficient sales and distribution--equivalent quality
continuous media schedule
advertising runs steadily through the period
maturity promotional strategy
advertising slightly decreased, more persuasive and reminding in nature. increased sales promotion to build marketshare. personal selling to obtain distribution
touch points
all areas of a business where customers have contact with the company
product category
all brands that satisfy a particular type of need
sales promotion
all marketing activities not explicitly stated in the mix
product mix
all products a firm sells
media sharing site
allows users to upload and distribute multimedia content (youtube, flickr)
Automatic replenishment programs
an automatic trigger to send goods to a certain location
premium
an extra item offered to the consumer after purchase
quantity discounts
buying lots of units can results in discounts, either cumulative or not
social media metrics
buzz, interest, participation, search engine ranks and results, influence, sentiment analysis, web site metrics
department store
carries wide variety of shopping and specialty goods
marginal cost
change in cost associated with one additional unit produced
product modification
changes of one or more of a products characterisictics
channel captain
channel member with the most power
arms length relationship
channel members who treat the relationship as a onetime thing
medium
channel used to convey a message
credence quality
characteristic people may have difficulty assessing even after use
prestige pricing
charging a high price to promote high quality image
penetration pricing
charging low prices to gain market share
predatory pricing
charging very low prices for a product with the intent on driving another firm out of the market
channel conflict
clash of goals within the channel
integrated relationship
closely bonded relationship between channel members with a wirtten contract. Can be vertical (all channel members owned by an entity) or supply chain (different companies act as 1)
pulsing media schedule
combines continuous and flighted media schedules
location based social networking sites
combines social media and gps tech (ie foursqaure)
mass communication
communicating to large audiences, usually through social or traditional media
merchant wholesalers
companies that facilitate movement of products from manufacturers to purchasers. they take title of the goods
sponsorship
company spends money to promote an idea or cause
family branding
company that makes several different products under one brand name
product characteristics that affect rate of adoption
complexity, compatibility, relative advantage, observability, "trial-ability"
horizontal conflict
conflict between channel members on the same level, ie different retailers.
vertical conflict
conflict between different levels of a channel
cost per contact
cost of reaching a member of the target audience
fixed cost
cost that does not change regardless or production
variable cost
cost that varies with the level of output
Transportation criteria
cost, transit time, reliability, capability, accessibility, traceability
joint costs
costs shared by manufacturers and marketers
fourth party logistics firms
create and manage entire solutions for getting products
corporate communication
creating internal and external messages to promote a positive image
social media users
creators, critics, collectors, joiners, spectators, inactives
ways to make demand more inelastic
cultivate demand, create unique offerings, change the package design, heighten buyer dependence
pull strategy
customer demands from retailer, who demands from wholesaler, etc.
value based pricing
customers determine price based on value
receivers
customers getting the message
secondary data
data previously collected for different purposes
Electronic data interchange
data that replaces invoices or receipts that allow everything to be streamlined
commercialization
decision to make a product
price strategy
defines initial price and gives direction for movement throughout the life cycle
dynamic prices
different prices are charged for the same service (ie: airline tickets)
types of industrial channels
direct to industrial, direct to government, industrial distributor, agent/broker, agent/broker industrial distributors.
types of consumer channels
direct, retailer, wholsalers, agent/broker
seasonal discount
discount for buying merchandise out of season
cash discounts
discounts for prompt payment of a bill
decline stage
drop in sales
traits in salespeople
ego strength, sense of urgency and competitiveness, assertiveness, sociable, risk takers, capable of understanding complex concepts and ideas, creativity, empathetic
pricing during decline stage
either price drastically falls as demand plummets or they get higher like vinyl records
product screening
eliminates ideas that are inconsistent with the new-product strategy
relationship selling
emphasizes person to person interaction and empathy in creating long term clients
factors for a store's atmosphere
employee type and density, merchandise type and density, fixture type and density, sound, odors, visual factors.
point of sale interactions
enables customers to provide information about themselves without feeling violated
Customer integration
enables firms to offer long lasting, distinctive, value added to customers who represent greatest value to the firm
product development
engineers or r&d create prototype of product (simultaneous if all aspects like engineering and marketing are all working at the same time instead of sequentially)
new product line
established market, but firm is entering it for the first time with new products
two part pricing
establishing two separate charges associated with a good or service
concept test
evaluates an idea before a prototype has been made
Public Relations
evaluates public attitudes, conducts internal reviews of how the company could be viewed, takes action to increase company's standing
repositioned products
existing products now being targeted at new markets
service distribution focuses
minimizing wait times, managing service capacity, improving service delivery, establishing channel-wide network coherence
media mix
mix of different media used in ad strategy
co-opetition
mixes elements of cooperation and competition between two firms
Social Media Monitoring
monitor buzz and chatter online about a product
campaign management
monitoring and leveraging customer interactions to sell a company;s products and to increase customer service
supply chain team
moves goods, services, and information from source to customer
Materials handling systems
moves inventory into, within, and out of a warehouse as quickly as possible
Customer Service Management
multi company, unified response to the customer
brand
name, term, symbol, design, or combo that identifies a product
factors affecting promotional mix
nature of the product, stages in life cycle, target market characteristics, available funds, push and pull strategies
return on investment
net profit after taxes/ total assets
new product development process
new product strategy--> idea generation--> idea screening --> business analysis --> development --> test marketing --> commercializiation
new to the world products
new products create entirely new market
advertising response function
no matter how much is spent on ads, marketshare and growth slow
product mix width
number of product lines offered by a firm
product line depth
number of products in a line
reach
number of target customers who are exposed to a commercial at least once during a given period
frequency
number of times an individual is exposed to an ad in a given period
global brand
obtains one third or more of its earnings outside its home country
price lining
offering different products in the same line with distinct price points
single price tactic
offers all goods and services at same (or similar) prices
thee options when sending brand global
one brand name everywhere--adaptations and modifications--different brand names in different markets
exclusive distribution
only one or a few retailers in a given area carry the product. usually expensive luxury goods that customers have to search extensively to find
specialty store
only sells a given type of merchandise
sender
originator of message
supplementary service
other services provided by a firm to further the core goal
factory outlet
owned an operated by manufacturer, sells surplus
personal selling
paid for communication between two people in an effort to convince a customer to buy a product
Behavior Scan
participants have an id card that they swipe when the shop so their purchases are recorded
demand-supply integreation
parts of firm who generate demand are in constant communication with the people who generate supply
promotional allowances
payment to a dealer for promoting a product
introductory stage
period immediately after product launch, usually recovering losses from r&d.
Press relations
placing positive, news worthy information in the news media
co-branding
placing two or more brand names on a product
promotional strategy
plan for optimal use of promotion (advertising, PR, personal selling, sales promotion and social media)
planned obsolescence
practice of modifying new products so old products are no longer relevant
delayed quotations pricing
price is not set until product is finished or delivered
revenue
price of a product * number of units sold
coupon
price reduction at the point of purchase
trade allowances
price reduction offered by manufacturers to intermediaries
retialing mix
price, promotion, product, place, presentation and personnel
pricing during the growth stage
prices begin to stabilize because competitors enter the market, new markets with lower income want the product, and economies of scale
odd-even pricing
pricing at odd number prices to imply a bargain (99.95)
Pricing differences between businesses and nonprofits
pricing objectives, non-financial prices, indirect payment, separation between payers and users, below cost pricing
CRM process
prioritize certain customers with different relationship to the firm
extranets
private electronic networks
negotiation
process in which both the salesperson and prospect offer concessions to complete the sale
knowledge management
process in which consumer info is centralized and shared
direct channel
producers sell directly to consumers. ie: catalog shopping
postponement
product is partially produced based on forecast, then updated based on demand patterns
things to know about a needs assessmemt
product or service, customers and their needs, the competition, the industry
special promotional resources for nonprofits
professional volunteers, sales promotion activities, PSAs
trade sales promotion
promotional strategies geared at wholesalers and retailers
supply chain security
protecting key materials and assets from damage
Marketing Research Objective
provide insightful decision-making information
product publicity
publicizing specific products or services
blog
publicly accessible web page that functions as an interactive journal
basing point pricing
purchasers are charged for all freight cost from a certain point
types of product modificiation
quality modification-- functional modification-- style modification
sales presentation
the formal meeting where the salesman gives his pitch
advantages of internet surveys
rapid development, real time reporting--dramatically reduced cost--personalized questions and data--improved respondent participation-- contact with the hard to reach
lead qualification
recognized need, buying power, receptivity and accessibility
Technology and Planning Integration
refers to the creation and maintenance of info-tech systems that connect managers across the firms in a supply chain
Measurement Integration
reflects idea that performance assessments should be transparent and measurable across borders of different firms
ways to evaluate services
reliability, responsiveness, assurance, empathy, tangibles
Material and Service Supplier Integration
require firms to link seamlessly to outsiders who provide goods and services
central location telephone facilitiy
research facility made specifically for conducting phone research
survey research
researcher interacts with people to obtain facts and opinions about products.
mystery shoppers
researches posing as ordinary shoppers to gather info about a store.
crisis management
responding to crisis regarding the company's image
advocacy advertising
safeguards against negative consumer attitudes and enhances company's credibilty
growth stage
sales grow at increasing rate, many competitors enter market, large companies acquire pioneering firms
consumer sales promotion
sales promotion geared at customers
frame error
sample drawn from population differs from target population
Smart RFID
scannable elements on goods to make it easy to manage incoming and outgoing goods
selective distribution
screens dealers to eliminate all buy a few in a certain area. consumer must seek out the product
demand management
seeks to align supply and demand throughout the chain by anticipating customer demand
status quo pricing
seeks to maintain existing price or meet competitor's pricing
operations oriented pricing for services
seeks to match supply and demand
focus group
selected by phone, most participants are paid and conduct a discussion about a product where their responses are monitored
third party logistics firm
sell logistics solutions to corporations
freight absorption price
seller pays actual shipping cost
uniform delivered pricing
seller pays freight charge, bills all purchases flat fee
leader pricing
selling at near or even below cost to attract customers
offprice retailer
sells at 25% below usual price, come across their inventory in unconventional ways
mail survey
send card and return envelope, very low cost but low response rate
offshoring
sending logistics aspects overseas
nearshoring
sending operations abroad but still close, ie mexico
media planning
series of decisions advertisers make regarding their selection of media for their ads
advertising campaign
series of related ads for a common theme
logistics information system
serves as the link connecting all of the operational components of the supply chain
mental stimulus processing
service directed at people's minds (theater, educations)
Possession Processising
service is directed at customer's possessions (dry cleaning)
information processising
services directed at a customers assets (insurance, consulting)
sales maximization pricing
sets price to maximize sales, often ignores profits
product line pricing
setting one price for an entire line of products
price skimming
setting price high initially and lowering over time
satisfactory profit
setting price so profits are reasonable but necessarily maxed
price equilibrium
setting the price so supply equals demand
profit maximization pricing
setting the price so the total revenue is as large as possible
non-store retailing
shopping without visiting a store
preintro promotional strategy
small amounts of advertising near intro
mobile marketing tools
sms, mms, mobile web sites, mobile ads, bluetooth marketing, apps
ways sales promotion affects Aida
sorta: attention, interest. yes: desire. No: action
field service firm
specializes in interviewing respondents on a subcontracted basis.
Research design
specifies which questions must be answered, how and what the data will be gathered and how the data wil be analyzed
quota
statement of the salesperson's goals
sales process
steps a sales person goes through to sell a product
pioneering adveritisng
stimulates primary demand for a new product or product category
promotion strategy for services
stress tangible cues, using personal information sources, creating a strong organizational image, engaging in postpurchase communication
ethnographic research
studying people in person
computer assisted self interviewing
subject reads questions and directly input responses to computer
cross selling other products
suggesting related products after a person buys one
supply chain agility
synchronization of the supply chain to make movement through it as fast as possible
Scanner based research
system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion and pricing they are exposed to and the things they buy
built-to-order
tailoring mass-market goods to the buyer
promotional mix
the combo of advertising, PR, sales promotion, personal selling and social media
supply chain risk
the risk of an outside or internal event happening and disrupting the supply chain
order processing system
the system that sends the customers needs up the chain and sends the directions to meet the order
social networking site
things like facebook
average total cost
total cost/quantity of output
average variable cost
total variable cost/quantity of output
internal marketing
treating employees as customers to get them to buy in
product advertising
tries to raise awareness/interest in a product
yield management systems
use computer software to fill unused capacity
Distribution resource Planning
use data to signal when inventory or materials should be sent up or down the chain
simulated market testing
use experiments or observational research instead of actually releasing product
price shading
use of discounts to stimulate demand
social news site
users post stories and users decide what stays on the site, ie reddit or digg
markup pricing
uses the cost of buying the product from the producer and adds amount for profits and expenses
free merchandise
using extra goods as payment for promotion
networking
using friends and business associates to identify potential clients
nonprofit organization marketing
using promotion to raise awareness of an issue that they hope to help through events, services or products
crowdsourcing
using the input of many people to influence decisions
mass customization
using the internet to allow customized services to be delivered on a mass goal
cooperative relationships
usually administered by a formal contract, companies want set terms to agreement but do now want long term investment of integrated relationship
closed-ended question
usually multiple choice, true/false, yes or no.
observation research
watching what people do, how they react to certain things/situations
transmission channel
way a message is delivered (radio, tv, etc)
AIDA
ways promotional strategy should affect people: Attention, interest, desire, action
review sites
websites where customers can review products and services (yelp)
unique selling proposition
what advertisers call their advertising appeal
break-even analysis
what sales volume must be reached to breakeven (total fixed cost/fixed cost contribution)
customer-centric
when a company creates its product based on what its data suggests the consumer wants
advergaming
when a company puts ads into games
dual-distribution
when a producer has two channels to sell the same product
supply chain integreation
when multiple firms or one firm's multiple areas have one coordinated business plan
strategic channel alliances
when one manufacturers uses elements of another manufacturer's established channel
channel control
when one member's power affect another's behavior
earned meida
when people talk about the brand and the media space is free
build-to-stock
when production begins because because forecasts call for additional demand
individual branding
when products made by one firm vary greatly in use of perfomance
selling against the brand
when retailers purposefully make it hard to sell a brand (putting higher priced goods next to cheaper store brand goods)
place utility
when the channel delivers the product close to the consumer
time utility
when the channel minimizes time from production to consumption
form utility
when the channel turns raw materials into finished products
feedback
when the receiver can respond to the source about the message
price fixing
when two firms collude to charge the same price for a product
paid media
where a company pays for media space
sales proposal
written document that outlines how the product will fit the prospect's needs
express warranty
written gurantee
ways social media affects Aida
yes: attention, interest. Sorta: desire, action
ways PR affects Aida
yes: attention, interest. Sorta: desire. Action: no
ways advertising affects aida
yes: attention, interest. Sorta: desire. Action: no