BA 514 Test#2
5 Elements of the Promotion Mix
- Advertising - Sales Promotion - Public Relations - Direct Marketing - Personal Selling
Classifying Consumer Goods
- Convenience - Shopping - Specialty
Why airlines like NDC
- It allows airlines to bring personalized content directly to OTAs, TMCs, and metasearch engines. - Dynamic Pricing
NDC advantages
- Rich shopper experience (merchandise additional services via third-party vendors). - Reduced dependency on legacy systems. - Personalized offer creation. - Flexible, real-time ticket pricing.
Advertising (Part of the Marketing Mix)
A paid form of nonpersonal communications about an organization, its products, or its activities that is transmitted through a mass medium to a target audience.
Evaluating Specific Advertisements: Recall Tests
Estimate the percentage of people claiming to have read a magazine who can (unaided) recall the ad and its contents.
Evaluating Specific Advertisements: Recognition Tests
Estimate the percentage of people claiming to have read a magazine who recognize the ad when it is show to them.
Audits and Deletions done why?
Result is a situation in which too many products are fighting for too little shelf space.
Top 3 GDSs
Sabre Amadeus Travelport
Quotas provide 3 main benefits
1) Provide incentives for salespeople (inc sales bonuses and commissions 2) Provide a quantitative standard against which the performance of individual sales representatives or other marketing units can be measured (find good performers, and those struggling) 3) Can be used not only to evaluate salesperson's performance but also to evaluate and control their efforts (calling on established accounts, new accounts, collecting on past due accounts, planning and developing sales presentations)
Quotas 3 factors that impact
1) All territories will not have equal potential and therefore compensation must be adjusted accordingly 2) All salespeople will not have equal ability and assignments may have to be made accordingly 3) The sales task in each territory may differ from time period to time period
List the 3 main OTA companies
1) Booking.com (Kayak**, Cheapflights, Priceline) 2) Expedia.com (hotels.com, orbitz, trivago, vrbo, cheaphotels) 3) Trip.com (etrip, skyscanner**) ** Also a metasearch aggregator
Elements of Brand Equity (memorize)
1) Brand Loyalty 2) Name Awareness 3) Perceived Quality 4) Brand Associations 5) Other Proprietary Brand Assets
Two vital duties of personal selling
1) Dispenses knowledge 2) Provides marketing intelligence
Compare the reasons in the article to the "Causes of New Product Failure" noted at the end of Chapter Seven and provide at least two reasons can explain based on the article.
1) Faulty estimate of market potential--failed to recognize that the market for large 4-engine airframes was already in decline, smaller airplanes with newer more fuel-efficient engines provided better value to the majority of the market 2) Poor Quality of product—wiring design issues, wings delayed due to cracks, design too heavy and not optimized for original configuration, not delivered with most modern engines
List the 3 main metasearch sites (aggregators/webcrawlers)
1) Google Flight 2) Kayak 3) Skyscanner
Decisions in Advertising
1) How Much = Size of Budget 2) Allocation = most effective means of spending
3 Objectives of the sales force
1) Information provision 2) Persuasion 3) After-sale service
Why Sales Force must be controlled
1) Personal selling can be the largest marketing expense component in the final price of the product 2) Unless the sales force is somehow directed, motivated, and audited on an continual basis, it is likely to be less efficient than it is capable of being.
How is densification being done - 5 actions?
1) elimination or reduction of first class to make more room for business and economy 2) Slimmer seats allowing more seats to be fit without a change in seat pitch 3) decreasing seat pitch 4) narrower seats allowing more seats per row 5) installation of smaller lavatories and removal of some lavatories to allow more rows, smaller galleys and remove closet
Why is sales promotion not used as the sole tool? Inability...
1) to generate long-term buyer commitment to a brand in many cases 2) to change, except on a temporary basis, declining sales of a product 3) to convince buyers to purchase an otherwise unacceptable product 4) to make up for a lack of advertising or sales support for a product
Personal Selling
A two way flow of communication between a potential buyer and a salesperson that is designed to accomplish at least three tasks. 1) Identify a potential buyer's needs 2) Match those needs to one of the firm's products or services 3) Convince the buyer to purchase the product or service
Densification is:
Adding more seats onto any given plane
ATC
Airline Ticket Counter
ATO
Airline Ticket Office
4 methods named for 'How Does the Airline Industry Use Social Media?
Airlines across the globe leverage social media to 1) create buzz around products and services 2) respond to a crisis or complaint 3) generate revenue 4) foster loyalty among customers
What added features does NDC allow?
Allows selling of ancillaries, dynamic pricing,
Sales Promotion (Part of the Marketing Mix)
An activity or material (non-personal communications) that offers customers, sales personnel, or resellers a direct inducement for purchasing the product (coupon, sweepstakes, refund, display)
API
Application Programming Interface
What is the difference seen in seat layouts in the economy section of the 777? (777 hint: compare BA 777-200 layout to Korean Air 777-200 layout)
BA does 3/4/3, Korean does 3/3/3
CC
Call Center
CRS
Computer Reservation System
CRS
Computer Reservation System (original legacy systems to buy tickets, evolved into GDS when they became separate entities)
Total Distribution Cost
Cost of the total distribution system, including 1) Transportation 2) Order Processing 3) Cost of lost business 4) Inventory carrying costs 5) Packaging 6) Materials Handling
Differences by airline business model in A330 or A350? (EX: Delta to French Bee = 330-300 and 350-900 layouts / classification or type of carriers here?)
Delta 2/4/2 and 3/3/3, French Bee 3/3/3 and 3/4/3, French Bee Long-Haul LCC
Personal Selling (Part of the Marketing Mix)
Face-to-face communication (only personal form in the marketing mix) with potential buyers to inform them about and persuade them to buy and organization's product.
Facts about new products
Facts about new products - Many new products fail - New product sales grow more rapidly than sales of current products - Companies vary widely in the effectiveness of new product programs - A major obstacle to effectively predicting new product demand is limited vision - Common elements appear in the management process of successful new product companies
GDS
Global Distribution System
Idea Screening and 3 forms of risk
Idea screening first: eliminates ideas for new products that could not be profitably marketed by the firm and second: to expand viable ideas into full product concepts. Three categories of risk: - Strategic Risk (not matching the role of a new product with a specific strategic need of the organization. - Market Risk (new product won't meet a market need an a value-added, differentiated way - Internal Risk (new product won't be developed within the desired time and budget)
Reasons for growth in sales promotion
Increased pressure on management for short-term results and the emergence of new purchase tracking technology.
Single aisle compared to dual aisle / long haul
Increased utilization of single aisle aircraft for long-haul flights has created a market for lay-flat seats that will work in this configuration.;
IATA
International Air Transportation Association
NDC
New Distribution Capability
New Distribution Capability (NDC)
New Distribution Capability or NDC is essentially an XML-based communication standard created by the International Air Transportation Association (IATA) to let airlines bring rich content and ancillaries directly to online travel agencies (OTAs), travel management companies (TMCs), and other flight resellers through a set of travel APIs.
Public Relations (Part of the Marketing Mix)
Nonpersonal form of communication that seeks to influence the attitudes, feeling, and opinions of customers and non-customers, stockholders, suppliers, employees, and political p=bodies about the organization (publicity)
Direct Marketing (Part of the Marketing Mix)
Nonpersonal form of communication that uses direct forms of communication with customers. (direct mail, online and mobile marketing, catalogs, telemarketing, and direct response advertising)
OTA
Online Travel Agency
PNR
Passenger Name Record
Evaluating Specific Advertisements: Opinion Tests
Potential audience members are asked to rank alternative advertisements as most interesting, most believable, best liked.
Brand Equity, value to customers
Provides value to customer by enhancing customer's - Interpretation/processing of information - Confidence in the purchase decision - Use satisfaction
Brand Equity, value to the firm
Provides value to firm by enhancing - Efficiency and effectiveness of marketing programs - Brand loyalty - Prices/margins - Brand extensions - Trade leverage - Competitive Advantage
Product Definitions
Tangible Product - the physical entity or service offered to the buyer; Danger of Marketing Myopia Extended Product - the tangible product along with the whole cluster of services that accompany the product Generic Product - the essential benefits the buyer expects to receive from the product Need to look at both the Extended Product and Generic Product to satisfy customers
Integrated Marketing Communications (IMC)
The goal of integrated marketing communications is to develop marketing communications programs that coordinate and integrate all elements of promotion advertising, sales promotion, personal selling, and publicity--so that the organization presents a consistent message.
Brand Equity
The set of assets (or liabilities) linked to the brand that add (or subtract) value. Elements: 1) Brand Loyalty 2) Name Awareness 3) Perceived Quality 4) Brand Associations 5) Other Proprietary Brand Assets
Evaluating Specific Advertisements: Theater Tests
Theater audience is asked for brand preference before and after an ad is shown in context of a TV show
Why are channels hard to change?
Time and money are required to set up an efficient channel
Why will a low cost airline (LCC) participate in a GDS? Examples & the key segment trying to serve
To go after business travelers, Easyjet and Ryanair Airline, AirAsia, Transavia, Vueling
What utilities channels provide
Transactional Function - Buying - Selling - Risk Taking Logistical Function - Assorting - Storing - Sorting - Transporting Facilitating Function - Financing - Grading - Marketing information and research
TMC
Travel Management Company
What is "New Distribution Capability" - focus on how different than current distribution model?
XML-based communication standard created by the International Air Transportation Association (IATA) to let airlines bring rich content and ancillaries directly to online travel agencies (OTAs), travel management companies (TMCs), and other flight resellers through a set of travel APIs. Allows airlines to bypass the GDS entirely, but still compatible with GDS
Table 1: Initial metrics for project success - look at the KPI's noted and while all noted have counts as look at the more 'sentiment' oriented KPI's what are you finding out besides a count?
a qualitative measure (positive, negative, neutral) that requires a judgement be made by a human rather than a count by an algorithm
Primary reason for new product failure (and 3 factors why)
an inability on the part of the selling company to match its offerings to the needs of the customer. Three factors: 1) inadequacy of upfront intelligence efforts 2)failure on the part of the company to stick close to what the company does best 3) inability to provide better value than competing products and technologies
Obtaining Commitment
closing the sale, must usually ask for the business
What lead to push to develop NDC?
desire to deliver personalized content to customer
Salesperson #1 problem
getting through the door for an appointment with a prospect.
Quotas represent
goals assigned to sales people
Integrated Marketing Communications (IMC) seeks to...
manage all sources of brand or company contacts with existing and potential customers
The end goal of and advertisement and its associated campaign is to...
move the buyer to a decision to purchase the advertised brand.
The managerial question of channels is...
not whether to perform the functions, but who will perform them and to what degree
The difference between good salespeople and mediocre ones is...
often the result of training plus experience
Best source for prospects is...
referrals from satisfied customers
Producers use marketing intermediaries because...
the intermediary can perform functions more cheaply and more efficiently than the producer can