Marketing Promotion Midterm – Flashcards

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large.

Value is the customer's perception of all of the benefits of a product or service weighed against all the cost of acquiring and consuming it.

The 4 P's - Product, price, place, and promotion. Combining these 4 elements make up the basic task of marketing to facilitate the potential for exchange with consumers in the marketplace.

IMC coordinate various promotional elements and other marketing activities that communicate with firms customers. Recognizes the added value of a comprehensive plan that: - Evaluates the strategic roles of a variety of communication disciplines - Combines the disciplines to provide clarity, consistency, and max communications impact Ensures all marketing and promotional activities project a consistent unified image

The basic tools used to accomplished an organization's communication objective are promotional mix: Advertising, direct marketing, digital/ internet marketing, sales promotion, publicity/ public relations, and personal selling --> Objectives -> Strategy -> Message, Media Strategy and Tactics.

- Advertising is defined as any paid form of non personal communication about an organization, product, service or idea by an identified sponsor. Most cost effective way to reach a large number of consumers. - Direct Marketing is when organizations communication directly with target customers to generate a response and/or transaction (fastest growing). Involves a variety of activities, including database mgmt, direct selling, telemarketing, and responses through mail. - Digital/ Internet marketing allows interactive media, allowing for a two way flow of communication where users can participate in and modify the form and content of the information they receive in real time. - Sales Promotion is customer oriented or trade oriented activities. Customer oriented include those who coupon, sample, rebate, contest, etc. Trade oriented is towards wholesalers, distributors, and retailers. - Publicity promotion advantage is credibility - Public Relations uses publicity and tolls like publication, participation in community, fundraising, sponsorship, etc. - Personal selling interaction gives marketers communication flexibility

4 types of touch points - Company created advertisement, websites, brochures, releases, packaging. - Intrinsic interaction with a company or brand during the process of buying or using the product like communication with sales person and customer service reps. - Unexpected can be third party reviews and word of mouth message. (Yelp) - Customer initiated customer contacts a company.

1. A detailed situation analysis that consists of an internal marketing audit and review and an external analysis of the market competition and environmental factors. 2. Specific marketing objectives that provides direction, a time frame for marketing activities and a mechanism for measuring performance. 3. A marketing strategy and program that includes selection of target markets and decisions and plans for the four elements of marketing mix. 4. A program for implementing the marketing strategy, including determining specific task to be performed and responsibilities 5. A process for monitor and evaluating performance and providing feedback so that proper control can be maintain or changed in tactics.

BCG matrix identify high growth prospect by categorizing the company's product according to growth rate and market share.

Introduction, growth maturity and decline.

1. Identifying markets with unfulfilled needs - consumers with similar lifestyles, needs and wants are isolated 2. Determining market segmentation - divided into distinct groups that have common needs and will respond similarly to a marketing action 3. Selecting a market to target - determines how many segments to enter and which segments offer the most potential 4. Positioning through marketing strategies - determines the art and science of fitting the product to one or more segment of the broad market in such a way as to set apart from competition

- Undifferentiated marketing: involves ignoring segment differences and offering just one product or service to the entire market - Differentiated marketing: involves marketing in a number of segments, developing separate marketing strategies for each - Concentrated marketing: is used when the firm selects one segment and attempts to capture a large share of this market

Positioning is fitting a product to one or more segment of the broad market to make it unique within the marketplace focusing on consumers and competition Types of position: - By use or application (expanding the usage of the product) - Product class - Product user (associated with specific group) - By competitor - Cultural symbols - Product attributes and benefits - Price and quality

Altering a products or brands position due to declining or stagnant sales and anticipated opportunities in other market positions.

- Geographic - Demographic - Psychographic - Behavioristic - Benefit

Branding is about building and maintaining a favorable identity and image of the company or its products or services in the mind of the consumers. 3 Goals: 1. build and maintain awareness/interest 2. develop and enhance attitudes towards the company/product/service 3. build and foster relationship between consumer and the brand. Brand identity = name, logo, symbols, design, packing, images associated.

Factors that determine price: - Cost - Demand factors - Competition - Perceived value - Product quality - Advertising

- Push Strategies: programs designed to persuade the trade of stock, merchandise and promote a manufacturer's product - push the product through the channels of distribution by selling and promoting it. - Pull Strategies: spending money on advertising and sales promotion efforts directed toward the ultimate consumer - create demand among consumers and encourage consumers to request the product from retailers

Consumer behavior is the process and activities people engage in with relation to products and services to satisfy their needs and desires

1. Problem Recognition 2. Information Search 3. Alternative Evaluation 4. Purchase Decision 5. Post-purchase Evaluation

- Internal search: information retrieval that involves recalling past experiences and information regarding various purchase alternatives - External search: seeking information from external sources like the internet, personal, public sources, personal experiences, and marketer - control sources.

Selective perception process comes in 4 parts 1. Selective exposure: consumers choose whether or not to make themselves available to info 2. Selective attention: consumer chooses to focus attention on certain stimuli while excluding others 3. Selective comprehension: consumer interprets info on the basis of their own attitude, beliefs, motives and experiences 4. Selective retention: consumers do not remember all the info they see, hear or read even after attending to and comprehending it.

Subliminal perception: ability to perceive a stimulus that is below the level of conscious awareness and controversial tactics with strong ethical implications

Cognitive dissonance - is psychological tension experience after a difficult purchase choice (buyers remorse)

- Classical conditioning: learning is an associative process with existing relationship between a stimulus and a response - Operant conditioning: learning occurs when individuals actively operate or acts on some aspect of environment. Reinforcement - rewards or favorable consequences associated with particular response

1. Source - person or organization that has information to share with another person or group of people 2. Encoding - putting thoughts, ideas, or information into and symbolic form 3. Channel Message - contains the info or meaning the source hopes to convey - Personal channels: personal selling, word of mouth - Non personal channels: Print media and broadcast media 4. Decoding - transforming the senders message into thoughts 5. Receiver - person whom the sender shares thoughts or information

Buzz marketing: generating positive word of mouth discussions

Seeding: identifying and choosing the initial group of consumers who will be used to start spreading the message

Persuasion Matrix: helps marketers see how each controllable element interacts with the consumers response process

- Source derogation: negative thoughts about the spokesperson or organization making the claims, leads to a lower message acceptance - Source Bolstering: positive thoughts about the spokesperson or organization making the claims - Direct Source: Delivers a message and/or endorses a product or service - Indirect source - draws attention to and enhances the appearance of an ad - Internalization, attractiveness, identification

- Celebrity may overshadow the product being endorsed - Overexposed reducing his or her credibility - Target audience may not be receptive to celebrity endorsers - Behavior may pose a risk to the company

Message structures: - Order of presentation - Conclusion drawing - Message sidedness - Refutation - presents both sides of an issue and then refutes the opposing viewpoint - Verbal vs visual message Message appeals: - Comparative advertising - Fear appeal - Humor appeal

- Vision: a picture of the preferred future - Mission: a statement of the overall purpose of an organization and tell us why organization exist - Goals: broad, long term aims that define accomplishment of the mission and changes from year to year Objectives: specific, quantifiable, realistic targets that measure the accomplishment of a goal over a specific period of time.

Sales- oriented objectives: - aims to increase sales - requires economic justification - required to produce quantifiable results - based on the achievement of sales results Communications objectives: - Provide relevant info - Create favorable predispositions toward the brand - Set using models wherein consumers pass through 3 stages: cognitive, affective, conative.

"Defining Advertising Goals for Measured Advertising Results" (DAGMAR) - Communications effect the logical basis for advertising goals and objectives to measure success or failure - Communication task performed by and attributed to advertising rather than marketing factors, including follow stages: awareness, comprehension, conviction, and action.

Problems with sales objectives: - successful implementation requires all marketing elements to work together - carry over effect: monies spent on advertising do not have immediate impact on sales - it is difficult to determine precise relationship between advertising and sales - Do not offer much guidance for planning and developing promo program Problems for communication objective: - Translating sales goal into communication objectives - promo planners have difficulty estimating what constitutes adequate level of awareness, knowledge, liking, preference, or conviction. - No formulas or guidelines