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Advertising

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Paid non personal communication about an organization and its products transmitted to a target audience through mass media

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Institutional advertising

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Advertising that promotes organizational images, ideas, and political issues

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Advocacy advertising

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Advertising that promotes a company's position on a political issue

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Product Advertising

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Advertising that promotes the uses, features, and benefits of products

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Pioneer Advertising

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Advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

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Competitive advertising

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Tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands

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Comparative Advertising

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Compares the sponsored brand with one or more identified brands on the basis of one or more product characteristics

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Reminder Advertising

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Advertising used to remind consumers about an established brand's uses, characteristics, and benefits

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Reinforcement advertising

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Advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it

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Advertising campaign

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The creation and execution of a series of advertisements to communicate with a particular target audience

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Target Audience

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The group of people at whom advertisements are aimed

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Advertising Platform

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Basic issues or selling points to be included in an advertising campaign

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Advertising Appropriation

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The advertising budget for a specific time period

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Objective-and-task approach

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Budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them

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Percent-of-sale approach

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Budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage

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Competition-matching

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Determining an advertising budget by trying to match competitors' advertising outlays

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Arbitrary Approach

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High-level executive in the firm states how much to spend on advertising for a certain period.

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Media Plan

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A plan that specifies the media vehicles to be used and the schedule for running advertisements

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TV

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Top dollars spent on selected media are for:

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Cost comparison indicator

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A means of comparing the costs of advertising vehicles in a specific medium in relation to the number of people reached

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Regional Issues

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Versions of a magazine that differ across geographic regions

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Copy

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The verbal portion of advertisements

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Storyboard

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A blueprint that combines copy and visual material to show the sequence of major scenes in a commercial

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Artwork

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An advertisement's illustrations and layout

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Illustration

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Photos, drawings, graphs, charts, and tables used to spark audience interest in an advertisement

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Layout

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The physical arrangement of an advertisement's illustration and copy

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Pretest

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Evaluation of advertisements performed before a campaign begins

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consumer jury

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A panel of a product's existing or potential buyers who pretest ads

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Posttest

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Evaluation of advertising effectiveness after the campaign

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Recognition Test

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A posttest in which respondents are shown the actual ad and are asked if they recognize it

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Unaided Recall Test

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A posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues

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Aided Recall Test

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A posttest that asks respondents to identify recent ads and provides clues to jog their memories

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Public Relations

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Communication efforts used to create and maintain favorable relations between an organization and its stakeholders

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Publicity

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A news story type of communication about an organization and/or its products transmitted through a mass medium at no charge

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News Release (press release0

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A short piece of copy publicizing an event or a product (usually shorter than 300 words)

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Feature article

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A manuscript of up to 3,000 words prepared for a specific publication

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Captioned Photograph

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A photograph with a brief description of its contents

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Press Conference

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A meeting used to announce major news events

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Environmental Monitoring

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Identifies change in public opinion affecting an organization

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Public Relations Audit

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Used to assess an organization's image among the public or to evaluate the effect of specific public relations program

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Communication Audit

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May include a content analysis of messages, a readability study, or a leadership survey.

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Advertising Response Function

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a phenomenon in which spending for advertising and sales promotion increase sales or market share up to a certain level but then produces diminishing returns

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Institutional Advertising

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a form of advertising designed to enhance a company's image rather than promote a particular product

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Product Advertising

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a form of advertising that touts the benefits of a specific good or service

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Advocacy Advertising

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a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks

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Pioneering Advertising

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a form of advertising designed to stimulate primary demand for a new product or product category

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competitive advertising

answer

a form of advertising designed to influence demand for a specific brand

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comparative advertising

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a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

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advertising campaign

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a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

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advertising appeal

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a reason for a person to buy a product

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unique selling proposition

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a desirable exclusive, and believable advertising appeal selected as the theme for a campaign

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medium

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the channel used to convey a message to a target market

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media planning

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the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost- effectively communicate the message to the target audience

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cooperative advertising

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an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand

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infomercial

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a 30 min or longer ad that looks more like a tv talk show than a sales pitch

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advergaming

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placing advertising messages in Web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue

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media mix

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the combination of media to be used for a promotional campaign

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cost per contact

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the cost of reaching one member of the target market

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cost per click

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the cost associated with a consumer clicking on a display or banner ad

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reach

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the number of target consumers exposed to a commercial at least once during a specific period, usually 4 weeks

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frequency

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the number of times an individual is exposed to a given message during a specific period

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audience selectivity

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the ability of an advertising medium to reach a precisely defined market

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media schedule

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designation of the media, the specific publications or programs, and the insertion dates of advertising

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continuous media schedule

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a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle

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Flighted media schedule

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a media scheduling strategy in which ads are run heavily every month or every two weeks to achieve a greater impact with an increased frequency and reach at those times

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pulsing media schedule

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a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales period

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seasonal media schedule

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a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

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public relations

answer

the element in the promotional mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance

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publicity

answer

an effort to capture media attention, often initiated through the press releases that further a corporation's public relations plans

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product placement

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a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events

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sponsorship

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a public relations strategy in which a company spends money to support an issue, cause or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image

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crisis management

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a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event

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sales promotion

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marketing communication activities other than advertising, personal selling, and public relations, in which a short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value

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trade sales promotion

answer

promotion activities directed to members of the marketing channel, such as wholesalers and retailers

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consumer sales promotion

answer

promotion activities targeted to the ultimate consumer market

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trade allowance

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a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers

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push money

answer

money offered to channel intermediaries to encourage them to "push" products- that is, to encourage other members of the channel to sell the products

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coupon

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a certificate that entitles consumers to an immediate price reduction when the product is purchased

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rebate

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a cash refund given for the purchase of a product during a specific period

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premium

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an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product

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loyalty marketing program

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a promotional program designed to build long- term, mutually beneficial relationships between a company and its key customers

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frequent buyer program

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a loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service

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sampling

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a promotional program that allows the consumer the opportunity to try a product or service for free

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point of purchase display

answer

a promotional display set up at the retailers location to build traffic, advertise the product, or induce impulse buying

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marketing concept

answer

organizations thrive from day to day by determining the current needs and wants of target customers and fulfilling those needs and wants more effectively and efficiently than competitors do. *focuses on meeting the company's short-term sales, growth, and profit needs by engaging customers and giving customers what they want now*

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societal marketing concept

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considers the future welfare of consumers.

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strategic planning concept

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considers future company needs.

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sustainable marketing concept

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calls for socially and environmentally responsible actions that meet both the immediate and future needs of customers and the company.

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Social Criticisms of Marketing

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Impact on Individual Consumers Impact on Society as a Whole Impact on Other Businesses

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Marketing's Impact on Individual Consumers

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High prices Deceptive practices High-pressure selling Shoddy, harmful, or unsafe products Planned and perceived obsolescence Poor service to disadvantaged consumers

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high prices because of

answer

high costs of distribution, high advertising and promotion costs, and excessive markups.

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Deceptive pricing

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includes practices such as falsely advertising prices from a phony high retail list price.

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Deceptive promotion

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practices such as misrepresenting the product's features.

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Deceptive packaging

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involves exaggerating package contents in misleading terms.

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Deceptive practices led to the

answer

Wheeler-Lea Act, which gave the Federal Trade Commission (FTC) power to regulate unfair or deceptive acts or practices.

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planned obsolescence

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causing their products to become obsolete before they need replacement

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perceived obsolescence

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continually changing consumer concepts to encourage more and earlier buying.

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redlining

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major chain retailers of redlining, drawing a red line around disadvantaged neighborhoods and avoiding placing stores there.

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Marketing's Impact on Society as a Whole

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False Wants and Too Much Materialism Too Few Social Goods Cultural Pollution

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too few social goods

answer

As private goods increase, they require more public services that are usually not forthcoming. A way must be found to restore a balance between private and public goods. One option is to make producers bear the full social costs of their operations. A second option is to make consumers pay the social costs. ex. cities now charging congestion tolls in an effort to reduce traffic congestion.

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cultural pollution

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marketers hope their ads primarily reach the target audience. Second, because of ads, many television, radio, online, and social media sites are free to users. Thus, to hold consumer attention, advertisers are making their ads more entertaining and informative.

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Marketing's Impact on Other Businesses

answer

Acquisitions of competitors Marketing practices that create barriers to entry Unfair competitive marketing practices

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Acquisitions of competitors

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concern that vigorous young competitors will be absorbed, thereby reducing competition

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Marketing practices that create barriers to entry

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Large marketing companies use patents and heavy promotion spending or tie up suppliers or dealers to keep out competitors. Those concerned with antitrust regulation recognize that some barriers are the natural result of the economic advantages of doing business on a large scale. Existing and new laws can challenge other barriers.

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Unfair competitive marketing practices

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set their prices below costs, threaten to cut off business with suppliers, discourage the buying of a competitor's products, or use their size and market dominance to unfairly damage rivals

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Consumerism

answer

organized movement of citizens and government agencies designed to improve the rights and power of buyers in relation to sellers.

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traditional Seller's rights

answer

To introduce any product in any size and style with proper warnings and controls, if necessary To charge any price for the product without any discrimination To spend any amount to promote the product if competing fairly To use any product message that is not misleading or dishonest To use buying incentive programs that are not unfair or misleading

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traditional buyers rights

answer

To buy a product that is offered for sale To expect the product to be safe To expect the product to perform as claimed

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Proposed Consumer Rights

answer

many believe that the balance of power lies on the seller's side. Critics feel the buyer has *too little information, education, and protection* to make wise decisions when facing sophisticated sellers.

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Consumer advocates call for the following additional consumer rights:

answer

To be well informed To be protected against questionable products and marketing practices To influence products and marketing practices to improve "quality of life" To consume in a way to preserve the world for future generations of consumers

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Environmentalism

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organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment.

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environmentalism concerns

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Damage to the ecosystem Loss of recreational areas Increase in health problems

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environmental sustainability

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management approach that involves developing strategies that both sustain the environment and produce profits for the company.

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Marketing Decision Areas That May Be Called into Question under the Law- selling decisions

answer

Bribing Stealing trade secrets Disparaging customers Misrepresenting Disclosure of customer rights Unfair discrimination

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advertising decisions- legal issues

answer

False advertising Deceptive advertising Bait-and-switch advertising Promotional allowances and services

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Channel decisions- legal issues

answer

Exclusive dealing Exclusive territorial distributorship Tying agreements Dealer's rights

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Competitive relations decisions: legal issues

answer

Anticompetitive acquisition Barriers to entry Predatory competition

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product decision: legal issues

answer

Product additions and deletions Patent protection Product quality and safety Product warranty

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Packaging decisions: legal issues

answer

Fair packaging and labeling Excessive cost Scarce resources Pollution

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Price decisions: legal issues

answer

Price fixing Predatory pricing Price discrimination Minimum pricing Price increases Deceptive pricing

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Consumer-oriented marketing

answer

organize marketing activities from consumer's point of view. It should work hard to sense, serve, and satisfy the needs of a defined group of customers, both now and in the future.

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customer value marketing

answer

the company should put most of its resources into customer value-building marketing investments. By creating value for consumers, the company can capture value from consumers in return.

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innovative marketing

answer

requires that the company continuously seek real product and marketing improvements.

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Sense-of-mission marketing

answer

company should define its mission in broad social terms rather than narrow product terms. Brands linked with broader missions can serve the best long-run interests of both the brand and consumers.

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societal marketing

answer

marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests.

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Deficient products

answer

such as bad-tasting and ineffective medicine, have neither immediate appeal nor long-run benefits.

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Pleasing products

answer

give high immediate satisfaction but may hurt consumers in the long run. Examples include cigarettes and junk food.

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Salutary products

answer

have low immediate appeal but may benefit consumers in the long run. Bicycle helmets or some insurance products are examples.

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Desirable products

answer

give both high immediate satisfaction and high long-run benefits, such as a tasty and nutritious breakfast food.

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Marketing Ethics

answer

Corporate marketing ethics policies should be developed by firms as guidelines for handling various issues and dilemmas.

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issues with ethics in marketing

answer

Distributor relations Advertising standards Customer service Pricing Product development General ethical standards

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marketing ethics role

answer

Principles are needed to guide companies and marketing managers on issues of ethics and social responsibility. -free market and the legal system should decide such issues. -Responsibility is in the hands of individual companies and managers.

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addressing ethics helps

answer

build strong customer relationships based on honesty and trust.

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Ethical Norms Suggested by the American Marketing Association

answer

Do no harm Foster trust in the marketing system Embrace ethical values

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do no harm

answer

consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.

question

foster trust in the marketing system

answer

striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process, and avoiding deception in product design, pricing, communication, and delivery or distribution

question

embrace ethical values

answer

building relationships and enhancing consumer confidence in the integrity of marketing by affirming core values such as, honesty, responsibility, fairness, respect, transparency, and citizenship.

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sustainable companies

answer

create value for customers through socially, environmentally, and ethically responsible actions.

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sustainable marketing provides

answer

the context in which companies can build profitable customer relationships.

question

Unlike the marketing? concept, the sustainable marketing concept focuses on? ____

answer

the future best interests of customers and the business

question

The five guiding principles of sustainable marketing are? ________.

answer

consumer-oriented marketing, customer value? marketing, innovative? marketing, sense-of-mission? marketing, and societal marketing

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________ is an organized movement of concerned? citizens, businesses, and government agencies designed to protect and improve? people's current and future living environment.

answer

environmentalism

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Because of the lack of supermarkets in? low-income areas, many disadvantaged consumers find themselves in? ________, with little or no access to? healthy, affordable fresh foods.

answer

food deserts

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Which of the following considers the future needs of a? company?

answer

strategic planning concept

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?________ refers to consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make.

answer

do no harm

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____ means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core? values: honesty,? responsibility, fairness,? respect, transparency, and citizenship.

answer

embrace ethical values

question

WSJ: Walmart Sued for Adding 'Wood Pulp Product' to its Parmesan

answer

he was induced to purchase Great Value's "100% Grated Parmesan Cheese" at a premium price because he believed it was, indeed, 100 percent cheese. But it contains 7 to 10 percent cellulose -- a filler and anti-clumping agent derived from wood chips -- according to a complaint filed last week, which accuses the retail brand of deceptive business practices.

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WSJ: Social-Media Companies Forced to Confront Misinformation and Harassment

answer

twitter-said it would let users block notifications of tweets that include specific words, among other moves, in an effort to combat harassment facebook:it would bar websites that post fabricated or misleading news articles from using its ad-selling tools. "What he needs to do is hire more humans instead of pushing (the responsibility) onto the end user, find a balance between being havens for misinformation and censors of free speech.

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WSJ: Adidas Moves to Address Environmental Worries

answer

develop soccer cleats that can be repeatedly recycled, use no chemical adhesives and create no waste, amid growing concerns that the world's rise in garment consumption is hurting the environment. "leading example" in tackling climate change, by agreeing to measure its climate footprint and reduce emissions where possible "Green washer"—a company that cynically uses green marketing to appear more environmental than it is. Greenpeace said "the ambition level and the transparency Nike demonstrated to consumers is questionable."

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Global Firm

answer

Operates in more than one country Gains research and development, production, marketing, and financial advantages that are not available to purely domestic competitors

question

global firm problems faced

answer

Highly unstable governments and currencies Restrictive government policies and regulations High trade barriers and corruption

question

international marketing decisions

answer

1. Looking at the Global Marketing Environment 2. Deciding Whether to Go Global 3. Deciding Which Markets to Enter 4. Deciding How to Enter the Market 5. Deciding on the Global Marketing Program 6. Deciding on the Global Marketing Organization

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Looking at the Global Marketing Environment

answer

International trade system Economic environment Political-legal environment Cultural environment

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International Trade System

answer

Trade barriers Tariffs or duties (taxes) Quotas and exchange controls Nontariff trade barriers: -Biases against the bids -Restrictive product standards -Excessive host-country regulations or enforcement

question

World Trade Organization (WTO)

answer

Established by the General Agreement on Tariffs and Trade (GATT) in 1995 Promotes world trade by reducing tariffs and other international trade barriers Negotiates to reassess trade barriers and establish new rules for international trade Imposes international trade sanctions and mediates global trade disputes

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Economic community

answer

Group of nations organized to work toward common goals in the regulation of international trade

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European Union (EU)

answer

community that was formed in 1957. It was set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations. Today, the EU represents one of the world's largest single markets.

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North American Free Trade Agreement (NAFTA)

answer

founded in 1994, established a free trade zone among the United States, Mexico, and Canada.

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Central American Free Trade Agreement (CAFTA-DR)

answer

2005, established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. Other free trade areas have formed in Latin America and South America.

question

Union of South American Nations (UNASUR)

answer

modeled after the EU, was formed in 2004 and formalized by a constitutional treaty in 2008. UNASUR makes up the largest trading bloc after NAFTA and the EU. Similar to NAFTA and the EU, UNASUR aims to eliminate all tariffs between nations by 2019.

question

Factors reflecting a country's market attractiveness:

answer

Industrial structure: Subsistence economies Raw material exporting economies Emerging economies Industrial economies Income distribution: Low-, medium-, and high-income households depending on the industrial structure of the nation

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subsistence economies

answer

vast majority of people engage in simple agriculture. They consume most of their output and barter the rest for simple goods and services. These economies offer few market opportunities

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raw material exporting economies

answer

rich in one or more natural resources but poor in other ways. Much of their revenue comes from exporting these resources.

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emerging economies

answer

fast growth in manufacturing results in rapid overall economic growth. As manufacturing increases, the country needs more imports of raw materials and fewer imports of finished products

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Industrial economies

answer

major exporters of manufactured goods, services, and investment funds. They trade goods among themselves and export them to other types of economies for raw materials and semifinished goods.

question

income distribution

answer

Industrialized nations may have low-, medium-, and high-income households. Countries with subsistence economies consist mostly of households with very low family incomes. Still other countries may have households with either very low or very high incomes.

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Considerations for a company to do business in a country:

answer

Country's attitude toward international buying Government bureaucracy Political stability Monetary regulations

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International trade involves

answer

Cash transactions Bartering many nations have too little hard currency to pay for their purchases from other countries. They may want to pay with other items instead of cash. Barter involves the direct exchange of goods or services.

question

Impact of Culture on Marketing Strategy

answer

Companies that understand cultural nuances can -Avoid expensive and embarrassing mistakes -Take advantage of cross-cultural opportunities

question

Factors influencing the decision to go global

answer

Attacks on a company's home market by global competitors Expanding customer base in international markets Better opportunities for growth

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A company should

answer

Define its international marketing objectives and policies Decide what volume of foreign sales it wants Choose in how many countries it wants to market Determine the types of countries to enter Evaluate each market

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Market Entry Strategies international

answer

exporting joint venturing direct investment

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Indirect exporting

answer

less investment because the firm does not require an overseas marketing organization or network. company enters a foreign market by sending and selling products through international marketing intermediaries

question

direct exporting

answer

they handle their own exports. Investment and risk are greater in this strategy, but so is the potential return. company's own department, branch, or sales representatives or agents

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Joint venturing

answer

entering foreign markets by joining with foreign companies to produce or market a product or service. There are four types of joint ventures.

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Licensing

answer

involves entering foreign markets by developing an agreement with a licensee in the foreign market. offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty.

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Contract manufacturing

answer

when a company contracts with manufacturers in a foreign market to produce its product or provide its service.

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management contracting

answer

domestic firm supplies know-how to a foreign company that supplies the capital.

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joint ownership

answer

cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control.

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Direct investment

answer

entering a foreign market by developing foreign-based assembly or manufacturing facilities. If a company has gained experience in exporting and if the foreign market is large enough, foreign production facilities offer many advantages. However, the firm faces many risks, such as restricted or devalued currencies, falling markets, or government changes.

question

Standardized global marketing

answer

Using the same marketing strategy and mix in all of the company's international markets

question

adapted global marketing

answer

Adjusting the marketing strategy and mix elements to each international target market Creates more costs Produces a larger market share and return

question

Straight product extension

answer

marketing a product in a foreign market without making any changes to the product.

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Product adaptation

answer

involves adapting a product to meet local conditions or wants in foreign markets.

question

Communication adaptation

answer

fully adapting advertising messages to local markets. Media also need to be adapted internationally because media availability and regulations vary from country to country.

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product invention

answer

creating something new to meet the needs of consumers in a given country.

question

Global Price Considerations

answer

Set a uniform price globally Set according to the customers Use a standard markup of the company's costs everywhere many companies make simpler or smaller versions of their products that can be sold at lower prices. Others introduce new, more affordable brands in global markets.

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whole-channel view

answer

designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.

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channels between nations

answer

moves company products from points of production to the borders of countries within which they are sold.

question

channels within nations

answer

moves products from their market entry points to the final user or buyer.

question

Methods of managing international marketing activities:

answer

Organizing an export department Creating international divisions -Geographical organizations -World product groups -International subsidiaries Becoming a global organization

question

export department

answer

A firm gets into international marketing by simply shipping out its goods. If its international sales expand, the company will establish an export department with a sales manager and a few assistants.

question

international divisions

answer

or subsidiaries to handle all its international activity. International divisions are organized in a variety of ways.

question

geographical organizations or international divisions

answer

with country managers who are responsible for salespeople, sales branches, distributors, and licensees in their respective countries.

question

world product groups,

answer

each responsible for worldwide sales of different product groups.

question

international subsidiaries

answer

each responsible for their own sales and profits.

question

global organizations

answer

As foreign companies successfully invade their domestic markets, companies must move more aggressively into foreign markets.

question

What are the two economic factors that reflect the? country's attractiveness as a? market?

answer

Industrial structure and income distribution Your answer is correct.

question

Which of the following are the three ways an international? division's operating units can be? organized?

answer

Geographical? organizations, world product? groups, or international subsidiaries

question

_______ involve(s) the direct exchange of goods and services.

answer

barter

question

The purpose of a tariff is to? ________.

answer

raise revenue

question

In? a(n) __________economy, fast growth in manufacturing results in rapid overall economic growth.

answer

emerging

question

________ economies are major exporters of manufactured? goods, services, and investment funds.

answer

industrial

question

Twenty-Four7, a cosmetic firm located in the United? States, markets its products in Asian and European countries through independent distributors. In this? case, Twenty-Four7 has entered international markets through? ________.

answer

indirect exporting

question

University Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this? case, University? Boutiques' market-entering strategy is referred to as? ________.

answer

licensing

question

The biggest involvement in a foreign market comes through? ________ of the development of? foreign-based assembly or manufacturing facilities.

answer

direct investment

question

______ is when a company adds the cost of? transportation, tariffs, importer? margin, wholesaler? margin, and retailer margin to its factory price.

answer

price escalation

question

_____ is a global communication strategy of fully adapting advertising messages to local markets.

answer

communication adaptation

question

Many companies get involved in several international markets and ventures. They can be? __________, with country managers who are responsible for? salespeople, sales? branches, distributors, and licensees in their respective countries.

answer

geographical

question

WSJ:Apple's Tax Avoidance Illustrates Gap Between Law and Economics

answer

It alleges Ireland cut Apple a special deal that amounts to illegal government aid to a private company. Multinational tax avoidance is growing precisely because aggressive companies can find so many ways, and so many government partners, to avoid paying taxes. the growth of intellectual property such as patents, brands and software as a source of profit, which is easily shifted between foreign jurisdictions. sophistication and boldness with which multinationals exploit gaps between, and loopholes in, different countries' tax systems. government tax collectors may never catch up with the sophistication of corporate tax avoiders.

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WSJ: Fast-Food Franchises Get Creative When They Go Abroad

answer

how to tweak traditional favorites for local palates has become a crucial part of the franchise industry. how to tweak traditional favorites for local palates has become a crucial part of the franchise industry. The local adaptations extend beyond core menu items to areas like condiment selections.

question

Video: McDonalds Global Strategy

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mcdonalds practices local specialization to cater to its local markets french people want to take their time to eat and hate fast food: mcdonalds made fancy sit down restaurants, french potatoes and french cheeses hindus: culture doesn't eat beef, they changed the whole menu changes games of items to fit local culture culinary styles arches more recognizable than the cross feed 68 million ppl a day

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Video: globalization starbucks

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marketing expresso coffee drinks to north america by one guys idea he remarked the shop from seattle brand identity with logo turned enjoying coffee into a fashionable lifestyle all over worlds ordinary coffee vs the starbucks experience maintains the welcoming, trending, relaxation environment

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Video: Uber's decision to throw in the towel in China holds lessons for Facebook, Apple and others still craving success in the world's biggest technology market.

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deal in which the local champion acquires Uber's China operations in return for a seat on Didi's board and a slice of the Chinese company. it went up against a nimble competitor backed by deep-pocketed internet standard-bearers "All the kowtowing and meeting the leadership maybe won't matter so much if Facebook won't agree to allow some level of censorship, or allow the Chinese government access to data on the site, in exchange for market access,"

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Direct and Digital Marketing

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Engage directly with targeted individual consumers and customer communities to obtain an immediate response Build lasting customer relationships, engagement, brand community, and sales

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New Direct Marketing Model

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Most companies still use direct marketing as a supplementary channel or medium. For many companies today, direct and digital marketing constitute a complete model for doing business.

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Rapid Growth of Direct and Digital Marketing

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Fastest-growing form of marketing Direct marketing becoming more Internet-based Direct marketing claims a surging share of marketing spending and sales Includes online display and search advertising, video, social media, mobile, email

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Benefits of Direct and Digital Marketing to Buyers

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Convenient, easy, and private Easy buyer-seller interaction Quick access to products and relevant information Brand engagement and community

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benefits of direct and digital marketing to sellers

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Low-cost, efficient, and speedy Build close, personalized, interactive, one-to-one customer relationships Greater flexibility

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Digital and social media marketing

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Using digital marketing tools to engage consumers anywhere, anytime via their digital devices

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Digital age

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Changing customers' notions of convenience, speed, price, product information, service, and brand interactions it has given marketers a whole new way to create customer value, engage customers, and build customer relationships. Some companies operate only online. They include a wide array of firms, from e-tailers to search engines and portals, transaction sites, content sites, and online social media.

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Omni-channel retailing

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Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.

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Online Marketing

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Marketing via the Internet using company Web sites, online ads and promotions, email, online video, and blogs

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marketing web sites

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Engage consumers to move them closer to a direct purchase or other marketing outcome

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branded community web sites

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Present brand content that engages consumers and creates customer-brand community

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Online advertising

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Appears while consumers are browsing online online advertising is search-related ads or contextual advertising. In this form of advertising, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing.

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email marketing

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sending highly targeted, highly personalized, relationship-building marketing messages via email. When used properly, email can be the ultimate direct marketing medium.

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spam in email marketing

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unsolicited, unwanted commercial email messages that clog up our email boxes. Spam has produced consumer irritation and frustration. To address these concerns, most legitimate marketers now practice permission-based email marketing, sending email pitches only to customers who opt in.

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Online Videos

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Posting digital video content on brand Web sites or social media

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viral marketing

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Videos, ads, and other marketing content that customers seek out or pass along to friends digital version of word-of-mouth

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Blogs and Other Online Forums

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Online journals of narrowly defined topics where people and companies post their thoughts and other content

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benefits of blogs and forums

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A fresh, original, personal, and inexpensive way to enter into consumer online conversations

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limitations of blogs and forums

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Cluttered, difficult to control and largely a consumer-controlled medium

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Social media

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Independent and commercial online communities where people congregate, to socialize and share messages, opinions, pictures, videos, and other content

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two ways marketings engage in social media

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Using the existing ones-easiest Setting up their own- ex nike running community

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Niche social media

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cater to the needs of smaller communities of like-minded people, making them ideal vehicles for marketers who want to target special interest groups.

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Advantages social media

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Targeted and personal Interactive Immediate and timely Cost effective Engagement and social sharing capabilities

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challenges social media

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Effective usage uncertain Difficult to measure results Largely user controlled

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Integrated Social Media Marketing

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Large companies design social media efforts that blend with and support other elements of a brand's marketing strategy and tactics. Firms that use social media effectively create brand-related social sharing, engagement, and customer community.

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Mobile Marketing

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features marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices. to engage customers anywhere, anytime during the buying and relationship-building processes. Retailers can use mobile marketing to enrich the customer's shopping experience at the same time they stimulate buying. Engages customers anywhere, anytime during the buying and relationship-building processes

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Direct-Mail Marketing

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Sending an offer, announcement, reminder, or other item directly to a person at a particular address

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direct mail offers

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Tangible and creates emotional connection with customers Effective component of a broader integrated marketing campaign Direct and personalized Sent to consumers who want to receive it

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Catalog Marketing

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Print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online

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benefits of catalog marketing

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Eliminates printing and mailing costs No space constraints Broader assortment of presentation formats Real-time merchandising capabilities Prices can be adjusted instantly

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Telemarketing

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Selling directly to customers using the telephone Outbound and inbound telephone marketing Rise of do-not-call legislation resulted in opt-in calling systems

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Direct-response television (DRTV) marketing

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Direct-response television advertising-DRTV ads are often associated with somewhat loud or questionable pitches for cleaners, stain removers, kitchen gadgets, and nifty ways to stay in shape without working very hard at it. Interactive TV (iTV) advertising

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Interactive TV (iTV) advertising

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form of direct-response television marketing lets viewers interact with television programming and advertising. lines continue to blur between TV screens and other video screens, interactive ads and infomercials are appearing not just on TV, but also on mobile, online, and social media platforms, adding even more TV-like interactive direct marketing venues.

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Kiosk Marketing

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Product or service information and ordering machines placed by companies

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Smart kiosks

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Wireless-enabled Facial recognition Some machines even use facial recognition software that lets them guess gender and age and make product recommendations based on that data.

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Public Policy Issues in Direct and Digital Marketing

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Irritation, Unfairness, Deception, and Fraud Consumer Privacy A Need for Action

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Irritation

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Loud, long, and insistent TV commercials Junk mail and spam

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Unfairness

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Taking unfair advantage of impulsive buyers

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Deception and fraud

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Investment scams or phony collections for charity Internet fraud Phishing Online and digital security Access by vulnerable or unauthorized groups

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Internet fraud is phishing

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type of identity theft that uses deceptive emails and fraudulent online sites to fool users into divulging their personal data.

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online and digital security

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fear that unscrupulous snoopers will eavesdrop on their online transactions and social media postings, picking up personal information or intercepting credit and debit card numbers.

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access by vulnerable or unauthorized groups

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For example, marketers of adult-oriented materials and sites have found it difficult to restrict access by minors.

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Consumer Privacy

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Fear of invasion of privacy Ready availability of information leaves consumers open to abuse

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A Need for Action- government investigations

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Do-not-call, do-not-mail, do-not-track lists 'Can Spam' legislation Congressional legislation - Give more control to consumers over how online information is used Federal Trade Commission (FTC) - Policing online privacy

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marketers actions

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Self-regulatory principles Advertising option icon Privacy rights of children

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Self-regulatory principles

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call for online marketers to provide transparency and choice to consumers if Web viewing data is collected or used for targeting interest-based advertising.

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advertising option icon

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little "i" inside a triangle, that is added to most behaviorally targeted online ads to tell consumers why they are seeing a particular ad and allowing them to opt out.

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privacy rights of children

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In 2000, Congress passed the Children's Online Privacy Protection Act (COPPA), which requires online operators targeting children to post privacy policies on their sites. They must also notify and obtain parental consent before collecting personal information from children under age 13.

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Companies' actions

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Own security measures Industry-wide measures

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What are the three major forms of digital direct? marketing?

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Online? marketing, social media? marketing, and mobile marketing

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Traditional direct marketing tools include? ________.

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face-to-face selling,? direct-mail marketing, catalog? marketing, telemarketing,? direct-response television? marketing, and kiosk marketing

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Which of the following statements is true regarding traditional direct marketing? forms?

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Marketers use both outbound telemarketing and inbound telemarketing.

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According to the? text, what is perhaps the toughest public policy issue now confronting the direct marketing? industry?

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invasion of privacy

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Which of the following statements is true regarding sellers and their use of direct and digital? marketing?

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Sellers have opportunities to engage in? real-time marketing.

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?Geico's website is designed to quickly turn an inquiry into a sale. Geico has designed? a(n) ______ website.

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marketing

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How does Google earn approximately? 90% of its? revenues?

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selling contextual advertising

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WSJ: How PG&E's CIO Sped Up Mobile App Deployment

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mobile app boosting employee productivity to increasing safety. lowering costs, increasing innovation and accelerating the time it takes for software developers to provision a platform needed to build mobile apps GPS-based asset inspection app allows field workers to locate a gas or electric asset, such as a power line or service pole in a neighborhood or in a rural mountain range. allows employees to submit information about security concerns, such as safety hazards in substations. "It's an opportunity for employees to speak up and share any issues and concerns they have, really reinforcing safety and innovation and continuous improvement,"

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Forbes: The State Of Digital Advertising: The Google, Facebook Duopoly Tightens Its Grip

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behavioral shift: consumers to turn to their mobile devices to look up everything from the details of a product to directions. Mobile is surpassing desktop as the choice to access the Internet. Google dominates search, Facebook rules display:growth in both usage and time spent, which continues to draw advertisers in greater numbers. Video, both live and recorded, is a key driver of growing user engagement and advertiser enthusiasm

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Video: Inside an Amazon warehouse on Cyber Monday

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629 items sold per second kiva robots to handle orders, they carry the entire shelf to an amazon 'picker' that saves tons of time

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Personal Selling

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involves personal presentations by the firm's sales force for the purpose *of engaging customers, making sales, and building customer relationships.*

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salesperson

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A salesperson is an individual who represents a company to customers by performing one or more activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

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The Role of the Sales Force

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Links the company with its customers Coordinates marketing and sales

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sales force management

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analyzing, planning, implementing, and controlling sales force activities

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territorial sales force structure

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sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line

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product sales force structure

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salespeople specialize in selling only a portion of the company's products or lines

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customer (or market) sales force structure

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refers to a sales force organization in which salespeople specialize in selling only to certain customers or industries.

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Salespeople can be specialized by

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Customer and territory Product and territory Product and customer Territory, product, and customer

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Sales Force Size

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May range from only a few to thousands

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companies setting sales force size

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Companies may use the workload approach to set sales force size. Accounts grouped into classes based on size, status, or the amount of effort required to maintain the account Number of salespeople needed to call on each class of accounts is then determined

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Outside sales force (field sales force)

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Travels to call on customers in the field

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Inside sales force

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Conducts business from their offices via telephone, the Internet, or visits from prospective buyers -Technical sales support people -Sales assistants -Telemarketers and online sellers

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team selling

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Teams of people from different departments used to service large, complex accounts

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Recruiting & Selecting Salespeople

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A company should analyze the sales job and the characteristics of its most successful salespeople.

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Sources for the recruitment of salespeople:

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Referrals from current salespeople Employment agencies Internet and online social media Posting ads and notices College placement services Salespeople at other companies

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Training Salespeople- goals

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About different types of customers How to sell effectively About the company's objectives, organization, products, and the strategies of competitors

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online training

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Online training builds sales skills using videos, Internet-based exercises, or simulations. Virtual instructor-led training (VILT) (a small group of salespeople at remote locations logs on to a Web conferencing site, where a sales instructor leads training sessions using online video, audio, and interactive learning tools. ) cuts travel costs, less time

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Compensating Salespeople

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Fixed amount - salary Variable amount - commissions or bonuses (rewards the salesperson for greater effort and success. Compensation should direct salespeople toward activities that are consistent with the overall sales force and marketing objectives.)

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Supervising Salespeople

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Help salespeople work smart by doing the right things in the right ways

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Tools of supervision: call plan

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One tool is the weekly, monthly, or annual call plan that shows which customers and prospects to call on and which activities to carry out.

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Tools of supervision: time-and-duty analysis

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In addition to time spent selling, the salesperson spends time traveling, waiting, taking breaks, and doing administrative chores.

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Tools of supervision: Sales force automation system

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computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere. Companies now routinely equip their salespeople with laptops or tablets, smartphones, wireless connections, videoconferencing technologies, and customer-contact and relationship management software. The result is better time management, improved customer service, lower sales costs, and higher sales performance.

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how sales people spend time

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active selling time accounts for only 37 percent of total working time.

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Motivating Salespeople

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Encourage salespeople to work hard and energetically toward sales force goals

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Management can boost sales force morale and performance through its: organizational climate

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describes the feeling that salespeople have about their opportunities, value, and rewards for good performance.

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Management can boost sales force morale and performance through its: sales quotas

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a standard that states the amount a salesperson should sell and how sales should be divided among the company's products. Compensation is often related to how well salespeople meet their quotas.

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Management can boost sales force morale and performance through its: positive incentives

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Sales meetings provide social occasions, breaks from the routine, chances to meet and talk with company brass, and opportunities to air feelings and identify with a larger group. Companies also sponsor sales contests to spur the sales force to make a selling effort above and beyond what is normally expected.

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Management gets information about its salespeople from

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From sales, call, and expense reports By monitoring the sales and profit performance data in the salesperson's territory Through personal observation, customer surveys, and talks with other salespeople

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Evaluating Salespeople and Sales Force Performance

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Formal evaluations force management to develop standards for judging performance.

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Provide salespeople with powerful tools for

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Identifying and learning about prospects Engaging customers Creating customer value Closing sales Nurturing customer relationships

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Major steps in sales force management: designing

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designing a sales force, management must decide what type of sales force structure will work best, sales force size, who will be involved in selling, and how various salespeople and sales-support people will work together.

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recruiting

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salespeople, a company may look to the job duties and the characteristics of its most successful salespeople to suggest the traits it wants in new salespeople.

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selection

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After the selection process is complete, *training* programs familiarize new salespeople not only with the art of selling but also with the company's history, its products and policies, and the characteristics of its customers and competitors.

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compensation

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system helps to reward, motivate, and direct salespeople

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supervision

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and many need continuous encouragement because they must make many decisions and face many frustrations.

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evaluate

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Periodically, the company must evaluate their performance to help them do a better job.

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social selling

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fastest-growing sales trend online, mobile, and social media technologies are helping to make sales forces more efficient, cost-effective, and productive.

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prospecting and qualifying

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qualifying—identifying qualified potential customers. They want to call on those who are most likely to appreciate and respond to the company's value proposition—those the company can serve well and profitably.

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Preapproach

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refers to a salesperson learning as much as possible about a prospective customer before making a sales call. During the approach step, the salesperson should know how to meet and greet the buyer and get the relationship off to a good start.

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presentation and demonstration

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salesperson tells the "value story" to the buyer, demonstrating how the company's offer solves the customer's problems.

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handling objections

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the salesperson should use a positive approach, seek out hidden objections, ask the buyer to clarify any objections, take objections as opportunities to provide more information, and turn the objections into reasons for buying.

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Closing

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refers to a salesperson asking the customer for an order.

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follow-up

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refers to a salesperson following up after the sale to ensure customer satisfaction and repeat business.

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Value selling

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demonstrating and delivering superior customer value capturing a return on that value that is fair for both the customer and the company

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Value selling requires:

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Listening to customers Understanding customers' needs Coordinating the company's efforts to create lasting relationships based on customer value salespeople too often take the easy way out by cutting prices rather than selling value.

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Sales Promotion

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short-term incentives to encourage the purchase or sale of a product or service. Whereas advertising offers reasons to buy a product or service, sales promotion offers reasons to buy now.

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Sales promotion targets

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Final buyers - Consumer promotions Retailers and wholesalers - Trade promotions Business customers - Business promotions Members of the sales force - Sales force promotions

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factors have contributed to the rapid growth of sales promotion.

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Product managers view promotion as an effective short-run sales tool. Competitors use sales promotion to differentiate their offers. Advertising efficiency has declined. Sales promotions help attract today's more thrift-oriented consumers.

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Consumer promotions

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To urge short-term customer buying or boost customer-brand engagement

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Trade promotions

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To get retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space

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Business promotions

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to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

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tools: Samples

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Offers of a trial amount of a product Most effective and expensive

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Coupons

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Certificates that save buyers money when they purchase specified products

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Rebates (cash refunds)

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Price reduction occurs after the purchase Customer sends proof of purchase to the manufacturer, which then refunds part of the purchase price by mail

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Price packs

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also called cents-off deals, offer consumers savings off the regular price of a product. The producer marks the reduced prices directly on the label or package.

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Premiums

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are goods offered either free or at low cost as an incentive to buy a product.

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consumer promotion tools: advertising specialties

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Useful articles imprinted with an advertiser's name, logo, or message that are given as gifts to consumers

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Point-of-purchase (POP) promotions

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Displays and demonstrations that take place at the point of sale

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Contests, sweepstakes, and games

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Give consumers the chance to win something ex trips

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Event marketing (or event sponsorships)

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Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

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Trade Promotions

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Used to persuade resellers to carry a brand, give it shelf space, and promote it in ads

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trade promotion tools :

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contests, premiums, and displays

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discount

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straight discount off the list price on each case purchased during a stated period of time (also called a price-off, off-invoice, or off-list).

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allowance

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(so much off per case) in return for the retailer's agreement to feature the manufacturer's products in some way.

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free goods

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extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size.

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push money

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cash or gifts to dealers or their sales forces to "push" the manufacturer's goods.

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specialty advertising items

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that carry the company's name, such as pens, calendars, memo pads, flashlights, and tote bags.

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Business Promotions

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Used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

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business promotion tools: conventions and trade shows

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Firms selling to the industry exhibit their products at the trade show. Vendors at these shows receive many benefits, such as opportunities to find new sales leads, contact customers, introduce new products, meet new customers, sell more to present customers, and educate customers with publications and audiovisual materials.

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sales contest

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for salespeople or dealers to motivate them to increase their sales performance over a given period. Sales contests motivate and recognize good company performers, who may receive trips, cash prizes, or other gifts.

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Sales promotion program design decisions:

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-Determine the size of the incentive -Set conditions for participation -Determine how to promote and distribute the promotion program -Set the length of the promotion -Evaluate the promotion

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What are the four sales force structures a company can? use?

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?Territorial, product,? customer, and complex

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Closing a sale with a particular customer is a? short-term ________? orientation, but the selling process must also take a? ________ orientation and look at the long term.

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?transactional; relationship

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Promotional tools offered to consumers include? ________

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?rebates, coupons, price? packs, and samples

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GE Healthcare employs different sales forces for diagnostic? imaging, life? sciences, and integrated IT products and services. GE Healthcare has adopted? a(n) ______ sales force structure.

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product

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What are the four elements of a compensation plan for? salespeople?

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A fixed? amount, a variable? amount, expenses, and fringe benefits

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Helping salespeople to? "work smart" by doing the right things in the right ways is the goal of which area of sales force? management?

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supervision

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To set its sales force? size, a company can first group accounts into different classes according to? size, account? status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the? ______ approach.

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workload

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Which of the following are common trade promotion? tools?

answer

?Discounts, free? goods, allowances and free advertising specialty items

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Which of the following statements about sales promotions is? correct?

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The growing use of sales promotion has resulted in promotion clutter.

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CES: Annual Tech Event Draws Other Industries

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CES also serves as a showcase for the suppliers providing technology to the auto makers. Illustrating how ubiquitous technology has become, some top-billed speakers will come from other industries.

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Squeezed by Rival Unlimited Plans, Sprint to End 50% Discount

answer

Sprint has said the 50% offer got people in the door, at which point the carrier would upsell them to a plan that cost the same as AT&T or Verizon but that came with double the data. But when rivals offer unlimited, there is nothing really left to upset turn its focus away from aggressively adding subscribers and more toward profitability.

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Video: red bull

answer

life style moment advertising red bull the future product placement the only limit is the one you set yourself, if you believe in it anything is possible

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Video: 'Taste the Feeling' Media Event

answer

tokyo to launch new campaign, launch of a new business approach one brand idea positioning coke as a simple pleasure and in everyday simple moments in peoples life hence 'taste the feeling' drink any of the coke beverages taste the feeling song created classic and timeless brand to celebrate whats great about coke, the special moments, from drinking the worlds favorite soft drink

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