fundamentals of marketing final exam – Flashcards
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errors in communication
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-encoded messages might not transform abstract idea by receiver or sender -may be sent through wrong channel -feedback may be delayed -noise
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noise
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extraneous info in an ad
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promotional elements
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-advertising -personal selling -direct marketing -sales promotion -public relations
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advertising
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paid non personal communication -involves mass media
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personal selling
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two way flow of communication between buyer and seller -designed to influence purchase
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adv of personal selling
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controls to whom presentation is made -feedback can help modify message -persuasive
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disadv of personal selling
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flexibility- different sales person can change message -high cost
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sales promotion
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short term inducement of value offered to arouse interest in buying -discounts, coupons, sweepstakes
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public relations
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form of communication management that seeks to influence opinions about a company and its products -indirect form of payment- so not paid -non personal
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adv of public relations
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creates credibility
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disadv of public relations
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lack of user's control over it -hard to get media cooperation
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direct marketing
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promotion alternative that uses direct communication with consumers to generate response in form of order, request for further info, visit to store -face to face- direct mail, catalog, telephone, tv
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adv of advertising
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-gets to lots of people
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disadv of advertising
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costly, hard to get good feedback
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disadv of sales promotion
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easily abused, duplicated, can lead to promotion wars
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adv of direct marketing
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leads to relationship with customer -messages prepared quickly
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disadv of direct marketing
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declining customer response -value of product goes down -very costly
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introduction
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to inform -increase awareness and interest -all promotional mix is used
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growth
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to persuade -brand differences stressed -personal selling used
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maturity
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to remind -sales promotion -sponsorships -direct marketing -price cuts and discounts -need to maintain existing buyers
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decline
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phase out -little money spent on adv/promotion -fast when replaced with better or cheaper thing -slow when loyal customers exist
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complexity
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the more complex- the more personal selling required
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risk
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the more financial, social, and physical risk- the more personal selling required
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ancillary services
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the amount of service after the sale the more personal selling is required
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push strategy
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aimed at the channel -push to their customers -personal selling and sales promotion -manufacturer- wholesaler- retailer-consumer
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pull strategy
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aimed at customers to pull from consumers -ask doctor is __ is right for you -customer asks for product so pulled through the channel
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promotion objectives
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-gain interest -target audience is specified -should possess 3 important qualities 1- be designed for well-defined target audience 2- be measurable 3- cover a specified time period
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hierarchy of effects
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sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes -awareness -interest -evaluation -trial -adoption of the product
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promotion budgeting
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-after setting objectives, decide how much will be spent on promotion
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percentage of sales budgeting
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allocating funds to promotin as a percentage of past or anticipated sales
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competitive parity budgeting
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allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share -matching competitors level of spending
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all you can afford budgeting
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allocating funds to promotion only after all other budget items are covered
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objective and task budgeting
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allocating funds to promotion whereby the company- 1- determines its promotion objectives 2-outlines the tasks to accomplish those objectives 3-determines the promotion cost of performing those tasks
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product advertisment
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3 forms- pioneering, competitive, reminder -focused on selling a product
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pioneering advertisment
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informational -tells people what product is
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competitive advertisment
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-persuasive -promotes specific brands' features
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reminder advertisement
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-used to reinforce previous knowledge of a product
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institutional advertisement
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ad designed to build goodwill or an image for an organization rather than promote a specific product 4 types -pioneering, advocacy, competitive, reminder
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advocacy advertisement
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states position of a company on an issue
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pioneering institutional
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-used for announcements about what a company is, what it can do - we can cure more headaches"
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competitive institutional
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-promote advantage of one product class over another and are used in markets where different products compete to same buyers -got milk
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reminder institutional
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brings company name to attention of target market again -army strong
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selecting right media
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media selection is related to -target audience -type of product -nature of the message -campaign objectives -available budget -costs of media -reach -rating -frequency -grp -cpm
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different media alternatives
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tv, radio, magazines, newspapers, yellow pages, internet, ooh, direct mail
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tv adv
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large audience motion specific local audiences
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tv disadv
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high cost short exposure hard to convey complex info
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radio adv
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low cost target local quickly placed sound, humor
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radio disadv
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no visual short exposure hard for complex info
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mag adv
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target specific high quality long life clipped and saved complex info
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mag disadv
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long time to create high cost competes with other features
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newspaper adv
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local coverage placed quickly saved consumer response low cost complex info
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newspaper disadv
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compete with other features poor quality short life span
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yellow pages adv
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geographic segments long use 24 hrs/ 364 days
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yellow pages disadv
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competitive directories hard to keep up to date
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internet adv
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video and audio animations interactive
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internet disadv
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large files take time to download
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ooh adv
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low cost local focus high viewership
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ooh disadv
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short and simple low selectivity of audience traffic hazard
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direct mail adv
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high selectivity complex info personalized high quality
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direct mail disadv
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high cost per contact junk mail
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transit
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interior, exterior of buses, subways, taxis
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disadv of transit
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lots of traffic can make it hard to read -hazard
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consumer promotions
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sales tools used to support a company's advertising and personal selling directed to ultimate customers
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coupons
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clip out -adv- encourage retailer support -disadv- delay purchases
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deals
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reduced prices for first purchase to increase trial -adv- reduce consumer risk -disadv- delay purchase
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premiums
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free toy inside happy meal adv-like free things disadv- but for the free thing not for product
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contests
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have to do something to win adv-encourage involment through product disadv-require action
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sweepstakes
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send in form may be picked to win -adv- use product -disadv-sales drop after
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samples
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funsized products adv-low risk for consumer disadv-high cost for company
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loyalty programs
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repeat customers get these perks -adv- create loyalty disadv- high cost for company
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point of purchase displays
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encourage last minute sales adv- product visibility disadv- traffic control
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rebates
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have to do something- mail letter adv- stimulates demand disadv- copied, steal sales from future, reduce value of product
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product placement
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fedex tag line in movies -adv- postive hearing disadv- little control of presentation
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blog
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web log serves as accesible journal and online forum
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twitter
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-website integration engage with customers cotweet and hootsuite to track and monitor activity -large potential ok brand exposure good customer communication good traffic to website
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linkedin
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shows orgs professionalism networking to reach potential customers small traffic but good for businesses and jobs bad brand exposure good customer communication ok traffic to website
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possession utility
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getting a product to consumers so the can use it
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interactivity
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buyer seller communication in an internet environment buyer controls info received from seller
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choiceboard
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interactive system that allows customer to design their own product by answering questions and choosing from menu, prices, delivery options
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collaborative filtering
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process that automatically groups people with similar buying intentions, preferences, behaviors, and predicts future purchases
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personalization
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generating content on marketer's website that is custom tailored to an individuals specific needs and preferences
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permission marketing
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solicitation of a consumer's consent to receive email and advertising based on personal date supplied by the consumer - called opt in
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online experience
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context content customization connection communication community commerce
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context
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aesthetic appeal of website
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content
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text, pics, sound
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commerce
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quick and simple sales
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community
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user to user communication
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customization
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modify itself or be modified
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connection
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how website links to others
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cross channel shoppers
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they research online and buy at store -to compare among different retailers -more info online -ease of comparing multiple options -51% of customers -more educated -both genders -more money
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multichannel marketing
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hundai -> dealers and hundai.com -> auto buyers
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transactional websites
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electronic storefronts focus on converting online browser to catalog online -most common among catalog retailers and direct selling companies
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promotional websites
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websites that advertise and promote products and used - interactive with games, contests, quizzes, coupons
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environmental scanning
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process of continually acquiring info on events occuring outside the org to identify potential trends - come from -social economic technological competitive regulatory
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social trends
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demographic shifts cultural changes
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economic trends
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income, economic conditions inflation- production cost and prices rise recession-declining economic activity- decrease production and spend less
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technological trends
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tech impact on the world changes rapidly new markets challenge- make products affordable
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competitive trends
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competition amongst businesses difficult for new firms to enter market
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regulatory trends
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laws protecting competition self regulation acts- robinson, clayton, ftc
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cognitive learning
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connection between ideas consumers learn through thinking and reasoning without direct experience adjusting behaviors accordingly
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neuromarketing
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cap with sensor that scan brain waves thoughts about products reside in subconscious mind frito lay shiny
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market segmentation
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aggregating buyers into groups that have common needs and will respond similarly to a marketing action -segmented by geographic, demographic, psychographic, behavioral
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one product with multiple market segmesnts
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harry potter series
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multiple products with multple segments
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ford suvs and pickups targeted at different customers
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mass customization
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next step beyond build to order
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success of market segmentation
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balance between satisfying customer and achieving synergy
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synergy
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increased customer value through marketing more efficiently
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geographic segmentation
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based on where prospective customers live or work
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demographic segmentation
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based on attribute of customers- gender, race, age, income, birth era, occupation
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psychographic segmentation
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based on some subjective mental or emotional attributes- personality, lifestyle
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behavioral segmentation
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based on observable actions by customers- where they buy, what benefits they seeks, how frequently they buy, why they buy
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fixed cost
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stable and dont vary with quantity rent, insurance, executive salaries
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direct channel
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producer and consumer deals directly
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indirect channel
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intermediaries between producer and consumer to perform channel functions
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internet marketing channel
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use internet to make goods available for customers
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dual distribution
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form reach buyers by two or more types of channels for same product -hallmark stores and drugstores
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strategic alliance channels
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one firm used to sell another firms product - kraft sells starbucks at supermarkets
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situational influences
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influence purchase decisions -purchase task social surroundings physical surroundings temporal effects antecedent states
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purchase task
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reason for engaing in the decision to purchase
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social surroundings
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who is there when decision is made
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physical surroundings
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decor, music, traffic flow
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temporal effects
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time of day and time available
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antecedent states
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consumers mood and cash at hand
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introduction
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to inform -minimal profit bc large investment and lack of profit -create awareness and stimulate trial -skimming- high initial price -penetration-low initial price
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growth
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to persuade -rapid sales increase competition appears aggressive pricing differentiate from others
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maturity
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to remind -slowing sales and revenue competitors leave slowly profit declines focus on finding new buyers
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decline
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phase out -sales and profits drop -better or cheaper products probably available -deletion- get rid of completely -harvesting-keep but reduce adv and marketing costs
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why buy online
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convenience choice customization communication cost control
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convenience
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browse no traffic, long lines compare with many sites 8 second rule
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choice
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selections and different websites
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customization
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can make it interactive exchange environment
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communication
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chat rooms, consumer to marketer, social networking, viral-forward messages to others
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cost
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cheaper
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showrooming
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inspect in store and buy online
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control
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seeks infor and alternatives make purchase decision on own time
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continous innovation
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new feature to an existing product- no new learning required generate awareness tooth whitening to toothpaste
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discontinous innovation
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learn new consumption patterns to use the product electric cars, dvrs educate through product trial and personal selling
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dynamically continous innovation
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disrupts normal routine but not totally new learning electric toothburch point of difference benefits are advertised
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product line extension
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cheerios- honey nut cheerios
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brand extension
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ralph lauren clothes - ralph lauren paint
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TAM
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total market share all shoes in US
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SAM
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served available market tennis shoes
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share
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portion of SAM that you serve -you annual units of sales
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ways to increase market share
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-take business from competition (make slice bigger) -bring new customers from TAM to SAM to expand tennis show market (make pie bigger)
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demand curve
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relates the quantity sold and price, showing the maximum number of units that will be sold at a given price left price bottom quantity
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prestige pricing
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setting a high price for status conscious customers rolex, cartier ) demand curve
