question

Levels of Product and Services

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Core benefits represent what the buyer is really buying. Actual product represents the design, brand name, and packaging that delivers the core benefit to the customer. Augmented product represents additional services or benefits of the actual product.

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Convenience products

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Consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort Newspapers, Candy, Fast food, ...

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Shopping products

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Consumer products and services that the customer compares carefully on suitability, quality, price, and style Furniture, Cars, Appliances, ...

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Specialty products

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Consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort Medical services, Designer clothes, High-end electronics, ...

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Unsought products

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Consumer products that the consumer does not know about or knows about but does not normally consider buying Life insurance, Funeral services, Blood donations, ...

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Industrial products

answer

Products purchased for further processing or for use in conducting a business.

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Industrial products Classification

answer

*Materials and parts* : include raw and manufactured materials and parts usually sold directly to industrial users Price and service are the major marketing factors, branding and advertising tend to be less important Capital items : are industrial products that aid in the buyer's production or operations Including installations and accessory equipment Supplies and services : include operating supplies, repair and maintenance items, and business services Usually supplied under contract

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Organization marketing

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consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization.

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Person marketing

answer

activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people.

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Place marketing

answer

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places.

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Social marketing

answer

is the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society.

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Product Quality Level

answer

is the level of quality that supports the product's positioning

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Product Conformance Quality

answer

is the product's freedom from defects and consistency in delivering a targeted level of performance

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Product Features

answer

Are a competitive tool for differentiating a product from competitors' products Are assessed based on the value to the customer versus the cost to the company

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Style

answer

describes the appearance of the product

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Design

answer

contributes to a product's usefulness as well as to its looks

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Brand

answer

is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service

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Packaging

answer

involves designing and producing the container or wrapper for a product

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Labels

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identify the product or brand, describe attributes, and provide promotion

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Product line

answer

is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

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Product line-length

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is the number of items in the product line

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Product line

answer

stretching is when a company lengthens its product line beyond its current range.

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Product line filling

answer

occurs when companies add more items within the present range of the line.

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Downward product line stretching

answer

is used by companies at the upper end of the market to plug a market hole or respond

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Upward product line stretching

answer

is by companies at the lower end of the market to add prestige to their current products.

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Combination line stretching

answer

is used by companies in the middle range of the market to achieve both goals of upward and downward line stretching.

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Product mix

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consists of all the products and items that a particular seller offers for sale

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Product mix width

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is the number of different product lines the company carries.

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Product mix length

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is the total number of items the company carries within its product lines.

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Product mix depth

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is the number of versions offered of each product in the line.

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Consistency

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is how closely the various product lines are in end use, production requirements, or distribution channels.

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Intangibility

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refers to the fact that services cannot be seen, tasted, felt, heard, or smelled before they are purchased.

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Inseparability

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refers to the fact that services cannot be separated from their providers.

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Variability

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refers to the fact that service quality depends on who provides the services as well as when, where, and how they are provided.

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Perishability

answer

refers to the fact that services cannot be stored for later sale or use.

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Service-profit chain

answer

links service firm profits with employee and customer satisfaction : Internal service quality Satisfied and productive service employees Greater service value Satisfied and loyal customers Healthy service profits and growth

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Internal marketing

answer

means that the service firm must orient and motivate its customer contact employees and supporting service people to work as a team to provide customer satisfaction. Internal marketing must precede external marketing.

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Interactive marketing

answer

means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter : Service differentiation Service quality Service productivity

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Managing service differentiation creates ?

answer

A competitive advantage from the offer, delivery, and image of the service: Offer can include distinctive features Delivery can include more able and reliable customer contact people, environment, or process Image can include symbols and branding

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Managing service quality provides ?

answer

A competitive advantage by delivering consistently higher quality than its competitors. Service quality always varies depending on interactions between employees and customers.

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Managing service productivity refers to ?

answer

the cost side of marketing strategies for service firms : Employee recruiting, hiring, and training strategies Service quantity and quality strategies

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Brand equity

answer

The differential effect that knowing the brand name has on customer response to the product or its marketing.

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Brand strategy decisions include ?

answer

Product attributes Product benefits Product beliefs and values

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Name 6 Desirable qualities

answer

1. Suggest benefits and qualities 2. Easy to pronounce, recognize, and remember 3. Distinctive 4. Extendable 5. Translatable for the global economy 6. Capable of registration and legal protection

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Name 4 Brand Sponsorship

answer

1. Manufacturer's brand 2. Private brand 3. Licensed brand 4. Co-brand

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Acquisition

answer

refers to the buying of a whole company, a patent, or a license to produce someone else's product.

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New product development

answer

refers to original products, product improvements, product modifications, and new brands developed from the firm's own research and development.

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Idea generation

answer

is the systematic search for new-product ideas

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Sources of new-product ideas: Internal sources

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refer to the company's own formal research and development, management and staff, and entrepreneurial programs

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Sources of new-product ideas: External sources

answer

refer to sources outside the company such as customers, competitors, distributors, suppliers, and outside design firms

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Crowdsourcing

answer

Inviting broad communities of people — customers, employees, independent scientists and researchers, and even the public at large—into the new-product innovation process.

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Idea screening

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Identify good ideas and drop poor ideas. R-W-W Screening Framework: Is it real? Can we win? Is it worth doing?

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Concept development and testing

answer

Product idea is an idea for a possible product that the company can see itself offering to the market Product concept is a detailed version of the idea stated in meaningful consumer terms Product image is the way consumers perceive an actual or potential product Concept testing refers to testing new-product concepts with groups of target consumers

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Marketing strategy development

answer

refers to the initial marketing strategy for introducing the product to the market. Marketing strategy statement includes: Description of the target market Value proposition Sales and profit goals

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Business analysis

answer

involves a review of the sales, costs, and profit projections to find out whether they satisfy the company's objectives.

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Product Development

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Involves the creation and testing of one or more physical versions by the R;D or engineering departments. It requires an increase in investment. It shows whether the product idea can be turned into a workable product.

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Test marketing

answer

is the stage at which the product and marketing program are introduced into more realistic marketing settings. It provides the marketer with experience in testing the product and entire marketing program before full introduction.

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Standard test markets

answer

are small representative markets where the firm conducts a full marketing campaign and uses store audits, consumer and distributor surveys, and other measures to gauge product performance. Results are used to forecast national sales and profits, discover product problems, and fine-tune the marketing program.

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Controlled test markets

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are panels of stores that have agreed to carry new products for a fee. In general they are less expensive than standard test market, faster than standard test markets, but competitors gain access to the new product.

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Simulated test markets

answer

are events where the firm will create a shopping environment and note how many consumers buy the new product and competing products. Provides measure of trial and the effectiveness of promotion. Researchers can interview consumers.

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Commercialization

answer

is the introduction of the new product : When to launch (it has to do with some seasonality if you are on the fashion market, vary from product to product) Where to launch

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New-Product Development Process

answer

1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product Development 7. Test marketing 8. Commercialization

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New-product development should be :

answer

Customer centered Team-based Systematic

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Customer-centered new product development

answer

new ways to solve customer problems and create more customer satisfying experiences.

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Sequential new-product development:

answer

Company departments work closely together individually to complete each stage of the process before passing it along to the next department or stage. Increased control in risky or complex projects but may be slow.

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Team-based new-product development:

answer

Company departments work closely together in cross- functional teams, overlapping in the product-development process to save time and increase effectiveness.

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Systematic new-product development:

answer

innovative development approach that collects, reviews, evaluates, and manages new-product ideas : Creates an innovation-oriented culture Yields a large number of new-product ideas

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Product Life-Cycle Strategies

answer

Product development - Sales are zero and investment costs mount Introduction - Slow sales growth and profits are nonexistent Growth - Rapid market acceptance and increasing profits. Maturity - Slowdown in sales growth and profits level off or decline Decline - Sales fall off and profits drop

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Style

answer

is a basic and distinctive mode of expression.

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Fashion

answer

is a currently accepted popular style in a given field.

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Fads

answer

are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity

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Product Life-Cycle Stages:

answer

Introduction Stage Growth Stage Maturity Stage Decline Stage

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Price

answer

is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the benefits of having or using a product or service. (Price is the only element in the marketing mix that produces revenue; all other elements represent costs)

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Customer Value-Based Pricing

answer

Understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value

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Value-based pricing

answer

uses the buyers' perceptions of value, not the sellers cost, as the key to pricing. Price is considered before the marketing program is set. It's customer driven

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Market space

answer

environment of the product or service you offer

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Good-value pricing

answer

offers the right combination of quality and good service at a fair price.

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Everyday low pricing (EDLP)

answer

charging a constant everyday low price with few or no temporary price discounts.

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High-low pricing

answer

charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

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Value-added pricing

answer

attaches value-added features and services to differentiate offers, support higher prices, and build pricing power

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Cost-based pricing

answer

setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. It's product driven & adds a standard markup to the cost of the product.

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Fixed costs

answer

are the costs that do not vary with production or sales level Rent, Heat, Interest, Executive salaries

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Variable costs

answer

are the costs that vary with the level of production

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Total costs

answer

are the sum of the fixed and variable costs for any given level of production

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Experience Curve / Learning curve

answer

is when average cost falls as production increases because fixed costs are spread over more units

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Break-even pricing

answer

is the price at which total costs are equal to total revenue and there is no profit

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Target profit pricing

answer

is the price at which the firm will break even or make the profit it's seeking

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Competition-based pricing

answer

Setting prices based on competitors' strategies, costs, prices, and market offerings. Consumers will base their judgments of a product's value on the prices that competitors charge for similar products.

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Target costing

answer

starts with an ideal selling price based on consumer value considerations and then targets costs that will ensure that the price is met

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Pure competition

answer

Many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. No single buyer or seller has much effect on the going market price. Marketing research, product development, pricing, advertising, and sales promotion play little or no role. Sellers don't spend much time on marketing strategy.

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Monopolistic competition

answer

Many buyers and sellers who trade over a range of prices rather than a single market price. A range of prices occurs because sellers can differentiate their offers to buyers. Many competitors, each firm is less affected by competitors pricing strategies than in oligopolistic markets.

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Oligopolistic competition

answer

Few large sellers. Each seller is alert and responsive to competitors pricing strategies and marketing moves.

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Pure monopoly

answer

the market is dominated by one seller.

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Loss-makers

answer

companies that sell some products at "loss". The point is to get the customer into the store (attracting him with these low prices), and then he will buy other products that are higher priced.

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Demand curve

answer

The number of units the market will buy in a given period at different prices.

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Elastic demand

answer

The demand changes a lot for a small change in price.

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Inelastic demand

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The demand hardly changes when there is a small change in price.

question

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answer

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Market-skimming pricing

answer

a strategy with high initial prices to "skim" revenue layers from the market

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Market-penetration pricing

answer

sets a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share

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Product line pricing

answer

takes into account the cost differences between products in the line, customer evaluation of their features, and competitors' prices

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Optional-product pricing

answer

takes into account optional or accessory products along with the main product

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Captive-product pricing

answer

involves products that must be used along with the main product

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By-product pricing

answer

refers to products with little or no value produced as a result of the main product. Producers will seek little or no profit other than the cost to cover storage and delivery.

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Product bundle pricing

answer

combines several products at a reduced price (for ex: happy meal)

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Discount and allowance pricing

answer

reduces prices to reward customer responses such as paying early or promoting the product

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Discounts

answer

are either cash discount for paying promptly, quantity discount for buying in large volume, or functional (trade) discount for selling, storing, distribution, and record keeping.

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Allowances

answer

include trade-in allowance for turning in an old item when buying a new one and promotional allowance to reward dealers for participating in advertising or sales support programs.

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Segmented pricing

answer

is used when a company sells a product at two or more prices even though the difference is not based on cost

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Psychological pricing

answer

occurs when sellers consider the psychology of prices and not simply the economics

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Reference prices

answer

are prices that buyers carry in their minds and refer to when looking at a given product: Noting current prices Remembering past prices Assessing the buying situations

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Promotional pricing

answer

when prices are temporarily priced below list price or cost to increase demand

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Loss leaders

answer

products sold below cost to attract customers in the hope they will buy other items at normal markups.

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Special event pricing

answer

used to attract customers during certain seasons or periods.

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Cash rebates

answer

given to consumers who buy products within a specified time.

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Low-interest financing

answer

Longer warrantees and Free maintenance: lower the consumer's "total price."

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Risks of promotional pricing

answer

1. Used too frequently, and copies by competitors can create "deal-prone" customers who will wait for promotions and avoid buying at regular price 2. Creates price wars

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Geographical pricing

answer

used for customers in different parts of the country or the world

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FOB-origin (free on board)

answer

that the goods are delivered to the carrier and the title and responsibility passes to the customer

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Uniformed-delivered pricing

answer

the company charges the same price plus freight to all customers, regardless of location

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Zone pricing

answer

means that the company sets up two or more zones where customers within a given zone pay a single total price

question

Basing-point pricing

answer

sellers select a given city as a "_______" and charges all customers the freight cost associated from that city to the customer location, regardless of the city from which the goods are actually shipped

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Freight-absorption pricing

answer

the seller absorbs all or part of the actual freight charge as an incentive to attract business in competitive markets

question

Dynamic pricing

answer

when prices are adjusted continually to meet the characteristics and needs of the individual customer and situations (ex: price of flights tickets changing according to the number of tickets sold...)

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International pricing

answer

is when prices are set in a specific country based on country-specific factors: Economic conditions, Competitive conditions, Laws and regulations, Infrastructure, Company marketing objective

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Price fixing

answer

Sellers must set prices without talking to competitors -*Public Policy*

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Predatory pricing

answer

Selling below cost with the intention of punishing a competitor or gaining higher long-term profits by putting competitors out of business

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Robinson-Patman Act prevents ?

answer

unfair price discrimination by ensuring that the seller offer the same price terms to customers at a given level of trade.

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Price discrimination is allowed if ?:

answer

1. the seller can prove that costs differ when selling to different retailers 2. the seller manufactures different qualities of the same product for different retailers

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Retail (or resale) price maintenance

answer

is when a manufacturer requires a dealer to charge a specific retail price for its products

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Deceptive pricing

answer

when a seller states prices or price savings that mislead consumers or are not actually available (difficult to get) to consumers

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Upstream partners

answer

raw material suppliers, components, parts, information, finances, and expertise to create a product or service.

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Downstream partners

answer

marketing channels or distribution channels that look toward the customer.

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Outlet store

answer

At first it was stores where the excess inventory or the "lost" orders was proposed to sale and was then cheaper. Now the name "_____" is overused and is actually another channel of sales, and is not even cheaper.

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Department store

answer

A standalone retail - A brand in itself. Different from a Mall where the stores are independent.

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Supply chain

answer

"make and sell" view includes the firm's raw materials, productive inputs, and factory capacity.

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Demand chain

answer

"sense and respond" view suggests that planning starts with the needs of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value.

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Value delivery network

answer

the firm's suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system

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Information

answer

Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange.

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Promotion

answer

Developing and spreading persuasive communications about an offer.

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Contact

answer

Finding and communicating with prospective buyers.

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Matching

answer

Shaping and fitting the offer to the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.

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Negotiation

answer

Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.

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Physical distribution

answer

Transporting and storing goods.

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Financing

answer

Acquiring and using funds to cover the costs of the channel work.

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Risk taking

answer

Assuming the risks of carrying out the channel work.

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Marketing channel

answer

firms that have partnered for their common good with each member playing a specialized role

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Channel conflict

answer

to disagreement over goals, roles, and rewards by channel members

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Horizontal conflict

answer

conflict among members at the same channel level

question

Vertical conflict

answer

conflict between different levels of the same channel

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Conventional distribution systems

answer

One or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict.

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Vertical marketing systems (VMSs)

answer

provide channel leadership and consist of producers, wholesalers and retailers acting as a unified system.

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Corporate vertical marketing system

answer

integrates successive stages of production and distribution under single ownership (ex : Zara).

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Contractual vertical marketing system

answer

of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone. The most common form is the franchise organization.

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Franchise organization

answer

links several stages in the production distribution process Manufacturer-sponsored retailer franchise system Manufacturer-sponsored wholesaler franchise system Service firm-sponsored retailer franchise system

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Administered vertical marketing system

answer

A few dominant channel members without common ownership. Leadership comes from size and power.

question

Horizontal marketing systems

answer

when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone.

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Multichannel Distribution systems

answer

(aka Hybrid marketing channels) When a single firm sets up two or more marketing channels to reach one or more customer segments

question

Disintermediation

answer

when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones

question

Types of intermediaries

answer

channel members available to carry out channel work. Examples include the company sales force, manufacturer's agency, and industrial distributors.

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Exclusive distribution

answer

when the seller allows only certain outlets to carry its products

question

Exclusive dealing

answer

is when the seller requires that the sellers not handle competitor's products

question

Exclusive territorial

answer

agreements are where producer or seller limit territory

question

Tying agreements

answer

are agreements where the dealer must take most or all of the line

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Marketing logistics

answer

Planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit.

question

Outbound distribution

answer

moving products from the factory to resellers and consumers.

question

Inbound distribution

answer

moving products and materials from suppliers to the factory.

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Reverse distribution

answer

moving broken, unwanted, or excess products returned by consumers or resellers.

question

Supply chain management

answer

the process of managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

question

Transportation

answer

affects the pricing of products, delivery performance, and condition of the goods when they arrive

question

Logistics information management

answer

the management of the flow of information, including customer orders, billing, inventory levels, and customer data : EDI (electronic data interchange) VMI (vendor-managed inventory)

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Integrated logistics management

answer

the recognition that providing customer service and trimming distribution costs requires teamwork internally and externally

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Third-party logistics

answer

the outsourcing of logistics functions to third-party logistics providers (3PLs). It offers the following: Provide logistics functions more efficiently Provide logistics functions at lower cost Allow the company to focus on its core business Are more knowledgeable of complex logistics

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Retailing

answer

all the activities in selling products or services directly to final consumers for their personal, non-business use

question

Retailers

answer

are businesses whose sales come primarily from retailing

question

Specialty Stores Carry

answer

a narrow product line with a deep assortment such as apparel stores, sporting-goods stores, furniture stores, florists and bookstores, a clothing store.

question

Limited Line store

answer

a single-line store, ex. men's clothing.

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Department Stores

answer

Carry several product lines - typically clothing, home furnishings, and household goods - with each line operated as a separate department managed by specialist buyers or merchandisers.

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Supermarkets

answer

A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer's total needs for grocery and household products.

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Convenience Stores

answer

Relatively small stores located near residential areas, open long hours seven days a week, and carrying a limited line of high-turnover convenience products at slightly higher prices.

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Discount Stores

answer

Carry standard merchandise sold at lower prices with lower margins and higher volumes.

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Off-price retailers

answer

Seller of merchandise bought at less-than-regular wholesale prices and sold at less than retail, often leftover goods, overruns, and irregulars obtained at reduced prices from manufacturers or other retailers. (Include factory outlets owned and operated by manufacturers; independent off-price retailers owned and run by entrepreneurs or by divisions or larger retail corporations; and warehouse (or wholesale) clubs selling a limited selection of brand-name groceries)

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Superstores

answer

Very large stores traditionally aimed at meeting consumers' total needs for routinely purchased food and nonfood items. Includes supercenters, combined supermarket and discount stores, and category killers.

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Self-service retailers

answer

serve customers who are willing to perform their own locate-compare-select process to save money. They include: Wal-Mart and Supermarkets.

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Limited service retailers

answer

provide more sales assistance because they carry more shopping goods about which customers need more information. Examples include Sears and JC Penney.

question

Full-service retailers

answer

assist customers in every phase of the shopping process, resulting in higher costs that are passed on to the customer as higher prices. Includes department stores and specialty stores

question

Corporate Chains

answer

are two or more outlets that are commonly owned and controlled- Size allows them to buy in large quantities at lower prices and gain promotional economies

question

Voluntary chains

answer

wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising

question

Retailer cooperatives

answer

a group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion effort

question

Franchise organizations

answer

based on some unique product or service; on a method of doing business; or on the trade name, good will, or patent that the franchisor has developed

question

Central business districts

answer

located in cities and include department and specialty stores, banks, and movie theaters

question

Shopping center

answer

a group of retail businesses planned, developed, owned, and managed as a unit, can be Regional, Community, Neighborhood, Power center, Lifestyle centers.

question

Retail convergence

answer

the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings

question

Wholesaling

answer

all activities involved in selling goods and services to those buying for resale or business use.

question

Selling and promoting

answer

the wholesaler's sales force helping the manufacturer reach many smaller customers at lower cost

question

Buying assortment building

answer

the selection of items and building of assortments needed by their customers, saving the customers work

question

Bulk breaking

answer

the wholesaler buying in larger quantity and breaking into smaller lots for its customers

question

Warehousing

answer

the wholesaler holding inventory, reducing its customers' inventory cost and risk

question

Transportation

answer

the wholesaler providing quick delivery due to its proximity to the buyer

question

Financing

answer

the wholesaler providing credit and financing suppliers by ordering earlier and paying on time

question

Risk bearing

answer

the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence

question

Market information

answer

the wholesaler providing information to suppliers and customers about competitors, new products, and price developments

question

Management services and advice

answer

wholesalers helping retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems

question

Name Three Types of Wholesalers

answer

Merchant wholesalers Agents and Brokers Manufacturer's sales branches and offices

question

Merchant wholesalers

answer

the largest group of _______ include: Full-service _______ who provide a full set of services Limited service ________ who provide few services and specialized functions

question

Brokers

answer

bring buyers and sellers together and assist in negotiations

question

Agents

answer

represent buyers or sellers

question

Manufacturers' sales branches and offices

answer

a form of wholesaling by sellers or buyers themselves rather than through independent wholesalers

question

The Promotion mix

answer

Specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships.

question

Advertising

answer

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Broadcast, Print, Internet, Outdoor

question

Sales promotion

answer

the short-term incentive to encourage the purchase or sale of a product or service Discounts, Coupons, Displays, Demonstrations

question

Public relations

answer

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 (the advantage of that is that it should be free) Press releases, Sponsorships, Special events, Web pages

question

Personal selling (person to person sale)

answer

personal presentation by the firm's sales force for the purpose of making sales and building customer relationships Sales presentations, Trade shows, Incentive programs

question

Direct marketing

answer

making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers Catalog, Telemarketing

question

Educational advertising

answer

introduction of a new product with explanations about why it is good

question

Reminder advertising

answer

reminding a target consumer of a product or service

question

Entertaining advertising

answer

entertainment linked to the product (can go viral)

question

Informative advertising

answer

used heavily when introducing a new-product category. In this case, the objective is to build primary demand.

question

Persuasive advertising

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When the company's objective is to build selective demand. Becomes more important as competition increases.

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Comparative advertising (or attack advertising)

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When a company directly or indirectly compares its brand with one or more other brands.

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Encoding

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the process of putting thought into symbolic form.

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Message

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the set of symbols the sender transmits.

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Media

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the communications channels through which the message moves from sender to receiver.

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Decoding

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the process by which the receiver assigns meaning to the symbols.

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Receiver

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the party receiving the message sent by another party.

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Response

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the reaction of the receiver after being exposed to the message.

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Feedback

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the part of the receiver's response communicated back to the sender

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Noise

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the unplanned static or distortion during the communication process, which results in the receiver's getting a different message than the one the sender sent.

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Integrated marketing communications

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the integration by the company of its communication channels to deliver a clear, consistent, and compelling (really engages you) message about the organization and its brands.

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AIDA Model

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Get *Attention* ! Hold *Interest* ! Arouse *Desire* ! Obtain *Action*

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Personal communication

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two or more people communicating directly with each other. Face to face, Phone, Mail, E-mail, Internet chat.

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Message content (3)

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an appeal or theme that will produce the desired response Rational appeal - relates to the audience's self-interest Emotional appeal - is an attempt to stir up positive or negative emotions to motivate a purchase Moral appeal - is directed at the audience's sense of right and proper

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Opinion leaders

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people within a reference group who, because of their special skills, knowledge, personality, or other characteristics, exerts social influence on others

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Buzz marketing

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cultivating opinion leaders and getting them to spread information about a product or service to others in their communities

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Non-personal communication

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A media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly

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Major media

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A media including print, broadcast, display, and online media

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Atmospheres

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designed environments that create or reinforce the buyer's leanings toward buying a product (important to reinforce the message you want to give, your position.)

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Collecting Feedback

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Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior

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Personal selling

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the most effective method at certain stages of the buying process, particularly in building buyers' preferences, convictions, actions, and developing customer relationships

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Sales promotion

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Coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales

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Public relations

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a very believable form of promotion that includes news stories, features, sponsorships, and events

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Direct marketing

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a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing

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Push strategy

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pushing the product to the consumers by inducing channel members to carry the product and promote it to final consumers.

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Pull strategy

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when the producer directs its marketing activities toward final consumers to induce them to buy the product and create demand from channel members.

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An advertising objective

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a specific communication task to be accomplished with a specific target audience during a specific time

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Advertising strategy

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______ is used by a company to accomplish its advertising objectives and consists of creating advertising messages ; Selecting advertising media

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Message strategy

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the general message that will be communicated to consumers

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Creative concept

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the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign Characteristics of the appeals include: Meaningful - Believable - Distinctive

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Message execution

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when the advertiser turns the big idea into an actual ad execution that will capture the target market's attention and interest

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Reach

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a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time

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Frequency

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a measure of how many times the average person in the target market is exposed to the message

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Impact

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the qualitative value of a message exposure through a given medium

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Selecting media vehicles

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Decisions presenting the media effectively and efficiently to the target customer and must consider the message's: Impact, Effectiveness, Cost

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Narrowcasting

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focus on the message on selected market segments

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Return on advertising investment

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The net return on advertising investment divided by the costs of the advertising investment : Net return/Costs

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Communication effects

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whether the ad and media are communicating the ad message well and should be tested before or after the ad runs

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Sales and profit effects

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compare past sales and profits with past expenditures or through experiments

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Press relations (PR) or Press agency

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the creation and placing of newsworthy information to attract attention to a person, product, or service

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Product publicity

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publicizing specific products

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Public affairs

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building and maintaining national or local community relations

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Lobbying

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building and maintaining relations with legislators and government officials to influence legislation and regulation

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Investor relations

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maintaining relationships with shareholders and others in the financial community

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Development

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public relations with donors or members of nonprofit organizations to gain financial or volunteer support

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Customer database

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an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

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Forms of direct marketing

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Direct-mail marketing Catalog Direct marketing Telephone direct Direct-response television (DRTV) marketing Podcasts and vodcasts Interactive TV (ITV)

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Direct-mail marketing

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sending an offer, an announcement, a reminder, or any other item to a person at a particular address

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Catalog Direct marketing

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printed and Web-based catalogs

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Telephone direct marketing

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using the telephone to sell directly to consumers and business customers

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Direct-response television (DRTV) marketing

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1-2min ads that describe products or give customers a toll-free number or a Web site to purchase. Also a 30-minute infomercials such as home shopping channels

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Podcasts and vodcasts

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Downloading of audio and video files via the Internet to a mobile device and listening to them at the consumer's convenience

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Interactive TV (ITV)

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Lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences

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Business to consumer (B2C)

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selling goods and services online to final consumers

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Business to business (B2B)

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selling goods and services, providing information online to businesses, and building customer relationships

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Consumer to consumer (C2C)

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Interested parties providing information via the web over a wide range of products and subjects

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Consumer to business (C2B)

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consumers communicating with companies to send suggestions and questions via company Web sites

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Corporate Web site

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website designed to build customer goodwill and to supplement other channels, rather than to sell the company's products directly to: Provide information Create excitement Build relationships

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Marketing Web site

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website designed to engage consumers in interaction that will move them closer to a direct purchase or other marketing outcome

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The Seven C's

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1. *Context* is the site's layout. 2. *Content* is the site's pictures, sound, and video. 3. *Community* is the site's means to enable user-to-user communication. 4. *Customization* is the site's ability to tailor itself to different users or to allow users to personalize the site. 5. *Communication* is the way the site enables user-to-user, user-to-site, or two-way communication. 6. *Connection* is the degree that the site is lined to other sites. 7. *Commerce* is the site's capabilities to enable commercial transactions.

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Banners

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banner-shaped ads found on a Web site

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Interstitials

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ads that appear between screen changes

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Pop-ups

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ads that suddenly appear in a new window in front of the window being viewed

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Rich media ads

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ads with animation, video, sound, and interactivity

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Search-related ads

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Ads in which text-based ads and links appear alongside search engine results and are effective in linking consumers to other forms of online promotion

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Content sponsorships

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Provide companies with name exposure through the sponsorship of special content such as news or financial information

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Viral marketing

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the Internet version of word-of-mouth marketing and involves the creation of a Web site, e-mail message, or other marketing event that customers pass along to friends

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Irritation

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annoying and offending customers

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Unfairness

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taking unfair advantage of impulsive or less-sophisticated buyers

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Deception

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"heat merchants" who design mailers and write copy designed to mislead consumers

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Fraud

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identity theft and financial scams

MARKETING PRINCIPLES S.II – MONSTER ALL QUIZZ ! – Flashcards

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