Study sets, textbooks, questions
Upgrade to remove ads
MAR 3023 Exam 4 - Brady
Terms in this set (107)
What is Promotion?
The link between manufacturer and the buyer, they are trying to influence the consumer and inform them about the benefits of the product and persuade them to buy the product
The levers and strategic tools that companies can use to turn the dial in terms of how you become aware and persuaded of a particular product
a paid, non-personal communication about an organization and its products transmitted to a target audience through mass media
a paid, personal communication that aims to inform customers and persuade them to purchase products in an exchange situation
a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders
is an activity or material that acts as a direct inducement offering added value or incentive for the product to resellers, salespeople, or customers; free samples, games, rebates, sweepstakes, contests, premiums, and coupons
Integrated Marketing Communications
Coordination of promotion and marketing efforts for maximum impact
Goals of IMC
-Consistent message to customers
-Coordinate/manage promotional efforts to be logically connected
-Synchronization to create a greater overall campaign
-Use more precisely targeted promotional tools over time
Two General Promo Strategies
-The firm is targeting someone within the distribution network
-Promoting a product only to the next institution down the marketing channel
-The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers
-Trade shows and personal selling
-Push money: also known as "spiffs". An extra commission paid to retail employees to push products
-Promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel
-Ford Australia only produces a car when one is ordered by a customer; Dell did the same thing
-The process that describes the exchange of information between two or more people
-Messages are sent through channels:
letters, email, in person
-the person or organization that has information to share
-The way celebs get paid for promotions
-Measure of familiarity and liking
-Consumers level of familiarity with a name - % who have heard of her/him
-The number of respondents who indicate that a person, program or character is a favorite
-The score is calculated by dividing the two numbers
-Some argue that Q is better than Nielsen
-the process of putting words, thoughts, messages into symbolic form in such a way that they will be understood by the receiver/consumer
- symbols are particularly good for this
how the communication travels from the source to the receiver
The Channel Two Types
-no personal contact with consumer
-involves direct contact
-a subset of "viral marketing" wherein companies hire socially active consumers to promote products to their friends, relatives, and acquaintances.
-consumers are typically unaware that the person is on the "payroll"
-The process of transforming the message back into thought.
-The key is for the decoded message to resemble the encoded message.
-Problems can occur if there is too much
-Anything that interferes with or distorts the message
-The final piece of the communications process
-The receiver's response to the message.
-Can be difficult to assess
-One way to get feedback from objective sources
Describe the process that receivers must go through before a desired behavior occurs
Each Model has three successive stages:
-the "thinking" stage
-Where the receiver becomes aware of the message
-the "feeling" stage
-Where the receiver forms a liking or preference for the ad object
-the "doing" stage
-Where the receiver acts on the preference
AIDA Model (attention - interest - desire - action)
-developed for personal selling
-represents the stages a salesperson must take a customer through to induce purchase
What is Advertising?
-A paid form of nonpersonal communication that is transmitted to a target audience through mass media
-Effective advertising can influence customers' purchasing behavior throughout their lifetimes
-Most organizations, even nonprofits, engage in advertising
The First Ads
-P&G Ivory Soap (1882 - $11,000)
-Radio - Hawthorne Court Apts, Queens, NY (1922)
-Banner Ad (1994) - Wired.com
Movies, TV, and Video Games:
Newspaper, direct mail, magazines:
-How many ads does the average American see each day?
-Promotes the uses, features, and benefits of specific products
-Focuses on a product category
-Got Milk?, Beef?
-Points out a brand's advantages relative to competing brands
-Three types of competitive ads
-Compares two or more brands on one or more characteristics
2. Reminder advertising
-Reminds customers of an established brand's characteristics and benefits
-Assures current users they have made the right choice
-Conveys a firm's position on a public issue
The Next Wave of Advertising
-advertisements sent to mobile phones or other wireless devices.
-First mobile ad was sent in 2000
-Now accounts for 2% of the advertising market
-runs steadily throughout the year
-Good for continuously used products
-runs in spurts
-Good for seasonal products
-Runs steadily but with bursts at certain times
-The percentage of consumers in the target audience exposed to a particular advertisement in a stated period
-The number of times these targeted consumers are exposed to the advertisement
Measuring Advertising Effectiveness
-Evaluation performed before a campaign begins
-Consumer jury test (on your own)
-Evaluation of advertising effectiveness after the campaign
Respondents shown a portion of an ad - or sometimes a memorable image and asked:
1. Do you recognize this ad? (recognition measure)
2. Please choose the sponsor of this ad from the following list (aided recall)
3. Please type in the sponsor of this ad (unaided recall measure)
-An audience measurement system designed to assess the size and composition of TV audiences
-Since there are an estimated 116,000,000 television households in the U.S.
-One ratings point represents 1% of that number - 1.16 million households
-Nielsen traditionally relied on a combination of data from the "audimeter" and consumer diaries.
-there were concerns over the accuracy of the diaries
-Nielsen now uses a "people meter" that has the capability to measure each household member's viewing habits.
-each family member has a separate button that is pushed.
-data are based on a nationwide sample of 10,000 "Nielsen families"
-Nielsen uses a sample of families in 55 markets to produce the overnight ratings
-Nielsen now also produces commercial ratings that measure commercial viewership, adjusted for DVR recordings.
-They measure zipping and zapping
-Almost 80% of U.S. households subscribe to or purchase magazines
-The average household purchases 6 magazines per year
-54% of magazine revenues come from ads
-73% of business magazine revenue
-communication efforts used to create and maintain favorable relations between an organization and its stakeholders.
-Starbucks, Palm, Botox, and Segway were successfully launched this way
-communication about the organization and/or its products transmitted through mass media at no charge.
PR vs. Publicity
1. Publicity is more short term whereas PR extends over a period of time.
2. Publicity is largely out of the control of the firm.
3. PR is designed to be positive whereas publicity may not be positive.
Tylenol - 1982, cleared the shelves after potassium cyanide poisonings
Perrier - Benzene cover-up in the 1990s
4. Publicity is considered to be more powerful than PR
-Paid personal communication that informs customers and persuades them to buy products in an exchange situation
Nature of Personal Selling
-Gives marketers greatest freedom to adjust message
-Millions of people earn their living through personal selling
-Varies from firm to firm
GENERAL STEPS IN THE PERSONAL SELLING PROCESS
-Making the Presentation
-Closing the Sale
-Developing a list of potential customers
-Names can be found in a variety of sources internal and external to the firm.
-Advertising can generate leads
-Customer referrals are a key source
Five Things for a Prospect to be Qualified:
-Do they need the product?
-Can they afford the product?
-Are they the real decision maker?
-Are they open to talking about the product?
-Are the qualified to buy the product?
Before contacting prospects:
-Identify key decision makers
-Review account histories and problems
-Contact other clients for information
-Assess credit histories and problems
-Prepare sales presentations
-Identify product needs
-Obtain relevant literature
-The manner in which a salesperson contacts a potential customer
-Important to create a favorable first impression and build rapport with prospective customer
Making the Presentation
-Must attract and hold the prospect's attention
-Stimulate interest in and spark a desire for the product.
-Use influencing tactics matched to prospects:
-Promises, ingratiation and inspirational appeals
-Anticipate and counter them before the prospect raises them
-Handle objections as they arise
-CRC Technique for Handling Objections:
Closing the Sale
-The stage in the personal selling process when the salesperson asks the prospect to buy the product
-Should be a very natural part of the conversation
-Trial close by asking questions that assume the prospect will buy.
-Attempt to close at several points during the presentation
Types of Salespeople
-Sells to new customers and increases sales to current customers
-Primarily seeks repeat sales
• Inside sales
• Field sales
-Staff members who facilitate selling but usually are not involved solely with making sales
Selected Types of Selling
-The use of a team of experts from all functional areas of a firm, led by a salesperson, to conduct the personal selling process
-The building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time
Managing the Sales Force
Managing Sales Territories
Creating sales territories:
-Measurable sales potential
Routing and scheduling salespeople:
-Number of customers
Controlling and Evaluating Sales Force Performance
Information for Managers:
Set Sales Objectives/Performance Indicators:
-Calls per day and cost per call
-Average sales per customer and gross profit per customer
-Actual sales vs. sales potential
-Number of new customer orders
-The value paid for a product in a marketing exchange
Not always money:
the trading of products
emphasizing price as an issue and matching or beating competitor's prices
-emphasizing factors other than price to distinguish a product from competing brands
-Price is related to total revenue and profit:
Profit = Total Revenue - Total Costs
Profits = (Price x Quantity Sold) - Total Costs
-Price is a good control for demand
-Markup is the difference between the cost of a good and its selling price:
Grocery store markup average: 12%
Gas tends to be 5-15 cents
Pre-Cut Vegetables 40%
Coffee Shop Coffee 2900%
Movie Popcorn 900%
Price Elasticity of Demand
A measure of the sensitivity of demand to changes in price
A change in price causes an opposite change in quantity demanded
-Availability of substitutes:
Electricity versus Coca-Cola
-Percentage of income:
Gum versus a Car
Eventually find a substitute/quit smoking/die
-Crucial component of price.
-Ideally goods are sold above cost, exceptions:
Generate cash flow
Increase market share
where the costs of producing a product equal the revenue made from selling the product.
Examines what happens to a firm's costs and revenues when production or sales volume changes by one unit.
an extra cost incurred for producing one more unit of product
-change in total revenue when a firm sells one additional unit of product
-To determine cost of production, a firm must distinguish between several types of costs
do not vary with change in number of units sold or produced
Average Fixed Costs
is fixed cost per unit produced (Fixed Costs/Units Produced)
vary directly with changes in the number of units produced or sold
Average Variable Costs
variable cost per unit produced (Variable Costs/Units Produced)
sum of average fixed costs and average variable costs times the quantity produced.
-The price stored in memory that helps to evaluate the actual price:
Serves as an anchor
Frames the purchase price
-Internal Reference Price:
Develops in buyer's mind through experience with product
-External Reference Price:
A comparison price provided by others
Price Strategies: Framing
-Anchoring price for consumers
-"MSRP", Competitor's Price, "You save
Price Strategies: Bundling
-Offering several products for sale in one
Cable, Phone, High Speed Internet
charging separately for previously bundled products/services
General Pricing Strategies
-Useful with inelastic demand, early lifecycle stage
-Consulting, Health Care
-Useful with elastic demand, long-term focus
-Fast Food, Dry Cleaning
-Market-driven, "status quo" strategies
-Airlines, Retail Gas
Pricing Methods: New Products
-set a relatively high price at first and then lower it over time.
-Popular in electronics category (play station was originally $600)
-set a relatively low price to drive market share/value perceptions.
Pricing Methods: Promotional Pricing
-selling products at or below cost.
-Low priced, every day products
Special Event Pricing:
-special prices linked to a holiday, season, or event.
Pricing Methods: Product Line Pricing
-the basic product is sold low; ancillaries (supporting products) are expensive.
-Cell phones / service contract
-pricing products at several levels; prices are relatively inelastic within the different ranges.
Bait Pricing (a.k.a. "bait and switch"):
-a product is promised at a low price but is either not in stock or a less attractive product is sold.
-Unethical and Illegal
Pricing Methods: Psychological Pricing
-ending prices in odd or non-round numbers.
Best reason: Prices seem lower
-Limited processing capacity: $4.99 is stored in memory as $4.00 or maybe $4.90
-The more specific the price, the more consumers believe it's the lowest price possible
-displaying a moderately priced product next to an expensive one.
-no sales, setting low prices on a consistent basis.
-setting prices at a customary level.
-Prices set at artificially high level to convey prestige or a quality image.
-Black Pearls: nobody would buy when they were first introduced
Online: Variable Pricing
-Retail website often offer different prices to different customers
Differs based on things like:
-Average income in your zip code
-Whether the consumer visited a price comparison site prior to landing on the page
-Whether you're shopping from a Mac (Mac users earn higher incomes)
-Staples, Discover Financial Services, Orbitz, Rosetta Stone, and Home Depot all do this
What is E-Marketing?
-The strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing
-Also provides customers with the ability to ask questions, voice complaints, provide preferences
-Digital technology makes it possible for visitors to identify themselves before making a purchase
-This "addressable channel" helps marketers address the specific customer needs, as opposed to a generic appeal
-E-marketing is about the conversation
-Interactivity helps marketers focus on high quality relationships
-E-Marketing increases accessibility which provides the end user with much more information
-Branded Mobile Apps
-Helps establish authority
-Helps drive traffic to your website
-E-Marketing connects customers to marketers and other customers
-With E-Marketing, customers have much more control over what information they see
-Increases the need for consumer-generated content
Consumer Generated Marketing
Consumer generated marketing exists because:
-Consumers now have a greater need to express their opinions
-Consumers trust other consumers over corporations
Platforms for Consumer Generated Marketing
Photo and Video Sharing
-YouTube is the number 2 search engine in the world
-1/3 of all internet activity involves watching videos
-Website visitors are 64% more likely to buy a product on an online retail site after watching a video
-Currently more than 10,000 photo sharing apps available
Students also viewed
MAR3023 Exam 4 BRADY
MAR 3023 Exam 4 FSU
MAR 3023 Brady final
GEB 3213 exam 3 Trammell
Sets found in the same folder
GEB 3213 Exam 1, trammell
GEB 3213 Exam 1 (Trammell)
Other sets by this creator
SPC 1017 Midterm FSU ZIEGLER
Quiz Q's AST class
A manufacturer can produce tires at a cost of $\$20$ a piece. It is estimated that if the tires are sold for p dollars apiece, consumers will buy $1,560 – 12$p of them each month. Express the manufacturer’s monthly profit as a function of price, graph this function, and use the graph to determine the optimal selling price. How many tires will be sold each month at the optimal price?
Use the key terms from to complete the following sentence: A company’s first sale of its stock to the public is called a(n) ___________.
Match the term below with its correct definition. ethnic group A. school of psychology concerned with how mental processes help organisms adapt to environments B. the study of behavior and mental processes C. school of psychology based on the idea that our perceptions of objects are more than the sums of their parts D. mental processes E. school of psychology concerned with discovering the basic elements of consciousness F. the theory that people can change their environments or create new ones G. a group of people who share a common culture race, or national origin H. school of psychology concerned with the scientific study of obseivable actions I. the theory that experiences often remind us of similar experiences in the past J. school of psychology that emphasizes the importance of unconscious motives in human behavior
A Japanese term that describes suppliers who become part of a company coalition is _____. a. kanban \ b. poka-yoke \ c. keiretsu \ d. None of the above \ e. All of the above
Recommended textbook solutions
Mathematics with Business Applications
Accounting: What the Numbers Mean
Daniel F Viele, David H Marshall, Wayne W McManus
Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Other Quizlet sets
Decathlon Literature (Novel) focus quiz 12
Cardiac Nclex Book