207 exam Flashcards

1
Q

What is marketing

A

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

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2
Q

Describe how marketing is a social process

A

Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and have with others

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3
Q

What is the new important term of marketing

A

The new important term of marketing is VALUE

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4
Q

What is marketed

A

Persons, Services, Goods, Experiences, Events, Properties, Organizations, Information, Places, and Ideas are all things that are marketed

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5
Q

Who markets?

A

The Marketer markets to receive a response from the prospect. A response can be attention, purchase, donation, or a vote

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6
Q

Key customer markets

A

Key customer markets: global markets, business markets, consumer market, government market

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7
Q

Differences between consumer, customer, client

A

Consumer - person who uses/consumes the product
Customer - person who bought the product
Client - person who used the service

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8
Q

Differences between needs and wants

A

Needs - necessary for survival and when a person feels deprived of basic life necessities
Wants - not necessary for survival, shaped by a person’s knowledge, culture, and personality

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9
Q

Core Marketing Concepts

A
  • Offerings and Brands
  • Needs, Wants, and Demands
  • Target Markets, Positioning and Segmentation
  • Value and Satisfaction
  • Marketing Channels
  • Supply chain
  • Competition
  • Marketing Environment
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10
Q

Explain how marketing entails an exchange

A

Goods/Services Produces (Sellers) communicate/delivery to customers/consumers (buyers)

Buyers provide money and information to sellers

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11
Q

4 P’s of marketing

A

Price - list price, discounts, bundling, credit terms
Place - channel, inventory, logistics, distribution
Promotion - advertising, sales force, publicity, sales promotion
Product - functionality, brand, packaging, services

These decisions are all surrounded by the target market

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12
Q

Marketing Engineering

A

Marketing Engineering involves developing and using interactive, customizable, computer-decision models for analyzing, planning, and implementing marketing tactics and strategies

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13
Q

Analytics

A

Analytics leverage data in a particular functional process (or application) to enable context-specific insight that is actionable.” Analytics is not the same as business intelligence.

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14
Q

Analytics and their competitive implications

A

Standard reports - what happened
Ad hoc reports - how many, how often, where?
Query/drill down - where exactly is the problem?
Alerts - what actions are needed?
Statistical analysis - why is this happening?
Forecasting/extrapolation - what if these trends continue?
Predictive modeling - what will happen next?
Optimization - what is the best that can happen

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15
Q

cycle of marketing engineering

A

marketing environment
Data
information
insights
decisions
implementation into the marketing enviornment

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16
Q

what is a model

A
  • Models are stylized representations of reality that structure our thinking about how the world works;
  • Models indicate which factors should be considered and which factors can be ignored;
  • By focusing on the relevant factors and their interrelationship reality can be simplified;
  • Models are useful because they facilitate top-down processing (as opposed to bottom-up processing);
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17
Q

what are the issues in using models

A
  • assembling an arsenal of models for a domain of interest;
  • retrieving relevant mental models in a given situation;
  • being aware of the limitations of mental models (they may overrepresent and underrepresent, or even malrepresent, things);

“No model is true, but some models are useful.”

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18
Q

types of models

A
  • verbal
  • box and arrow
  • graphical
  • mathematical
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19
Q

ATAR Model

A

Awareness, Trial, Availability, Rebuy or Repeat

Number of owners (potential buyers)
x Percent awareness after one year
x Percent of aware owners who will try product
x Percent availability at electronics retailers
x Measure of repeat (1+20% of customers buy a second mini 3D printer)
x Price per unit ($100) minus unit cost at the intended volume ($50)
= Profits

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20
Q

STP

A

STP = Segmentation, Targeting, Positioning
- STP is a core business process
- STP is a decision process to identify and select groups of potential customers (organizations, buying centers, individuals)
- (S) whose needs within groups are similar and who’s needs between groups are different
- (T) who can be reached profitably
- (P) with a focused marketing program

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21
Q

STP Approach - Segmentation

A

Segmentation
Phase 1: Segment the market using basis variables
Phase 2: Describe the market segments identified using variables that help the firm understand how to serve those customers

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22
Q

STP Approach - Targeting

A

Targeting
Phase 3: Evaluate the attractiveness of each segment using variables that quantify the demand levels and opportunities associated with each segment
Phase 4: Select one or more target segments to serve on the basis of their profit potential and fit with the firm’s corporate strategy
Phase 5: Find and reach targeted customers and prospects within targeted segment in a variety of ways

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23
Q

What is a market segment

A

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

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24
Q

What is market segmentation

A

Market segmentation is the process of dividing a market into meaningful, relatively smaller and identifiable segments or groups. The purpose is to enable marketers to tailor marketing mixes.

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25
Q

Examples of Segmentation Bases

A
  • Geographic (ex. country, urban, climate, region) – ex. coca cola is different in China vs. America
  • Demographic (ex. age, gender, income, education, family life cycle) – ex. sport car vs pickup truck caters to two different lifestyles
  • Psychographic (ex. lifestyles, values, personality, self-concept) – ex. women’s watches vs men’s watches
  • Behavioral (ex. benefits sought, usage rates, user status, loyalty) – ex. crest products only for dental
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26
Q

8 customer segments identified by Values, Attitudes, and Lifestyles for psychographic market segmentation

A
  • Achievers
  • Experiencers
  • Makers
  • Survivors
  • Strivers
  • Believers
  • Thinkers
  • Innovators
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27
Q

Criterion for effective segmentation

A

Size and growth
1. Size - market potential, current market penetration
2. Growth - growth forecasts of adopting new technologies

Structural Characteristics
3. Competition - barriers to entry, barriers to exist, position of competitors, ability to retaliate
4. Segment Saturation - gaps in the market
5. Protectability - patentability of products, barriers to entry
6. Environmental Risk - economic, political, and technological change

Product-Market Fit
7. Fit - coherence with company’s strengths and image
8. Relationships with other segments - synergy, cost interactions, image transfers, cannibalization
9. Profitability - entry costs, margin levels, return on investment

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28
Q

Managing segmentation for marketing analytics

A

Managing segmentation for Marketing Analytics
1. Define segmentation problem,
2. Identify data needs
3. Conduct market research
4. Build segmentation database
5. Define market segments
6. Describe market segments
7. Implement results

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29
Q

Target Market

A

Target Market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

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30
Q

Targeting strategies

A

Targeting strategies:
Undifferentiated Targeting Strategy, or Mass Marketing (ex. bakery)
Multisegmented (Differentiated) Targeting Strategy (ex. Vanilla Coca Cola)
Concentrated (Niche) Targeting Strategy (Clinique Cosmetics)
Micromarketing (Mariposa which makes custom bikes for racers)

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31
Q

Mass Market Segmentation Strategy

A

Everyone might be considered as a potential user
Not a common strategy
i.e. a neighbourhood bakery
There are very few mass market products. Even commodity goods such as flour now get differentiated. For different products, consumers fall in different segments.

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32
Q

Multisegment (differentiated) segmentation strategy

A

A firm targets several market segments with a different offering for each
i.e. Adidas Reebok (athletic shoes), Rockport (comfortable shoes), TaylorMade-Adidas golf lines

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33
Q

Concentrated (Niche) segmentation strategy

A

A marketing strategy of selecting a single primary target market and focusing all energies on providing a product to fit that market’s needs

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34
Q

Micromarketing

A

One-to-one marketing
An extreme form of segmentation that tailors a product or service to suit an individual customer’s wants or needs
i.e. Nike’s online make-your-own-shoe

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35
Q

Undifferentiated targeting advantages and disadvantages

A

Advantages:
- potential savings on production/marketing costs

Disadvantages:
- unimaginative product offerings
- company more susceptible to competition

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36
Q

Concentrated targeting advantages and disadvantages

A

Advantages:
- concentrates resources
- can better meet the needs of a narrowly defied segment
- allows some small firms to better compete with larger firms
- provides strong positioning

Disadvantages:
- segments too small or changing
- large competitors may more effectively market to niche segment

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37
Q

Multisegmented targeting advantages and disadvantages

A

Advantages:
- greater financial success
- economies of scale in producing/marketing

Disadvantages:
- high costs
- cannibalization

38
Q

One-to-One targeting advantages and disadvantages

A

Advantages:
- Delivers highly customized service
- high customer engagement/retention
- increasing revenue through loyalty

Disadvantages:
- high costs

39
Q

Positioning

A

Positioning is the Perception of brands and the attributes that people relate to the company

Ex.
McDonalds: fast-food cheap
Volvo: safety, for upscale families who desire a carefree driving experience, offers upmost in safety and dependency
Electric cars: Tesla
Sustainability: Patagonia

40
Q

Why is it important for a company/brand to have a certain position in the market

A

put brand against competitors
recognition for brand
match target market / identified customer segments
helps consumers know what makes your brand different
“why choose our company or brand”

41
Q

What is differentiation

A

Differentiation (what you do on an offering) → creating tangible or intangible differences on one or more attributes between a focal offering and its main competitors

42
Q

What is positioning

A

Positioning (what you try to do in the minds of customers) → a set of strategies a firm develops to differentiate its offering in the minds of its target customers. Successful positioning will result in the offering occupying a distinct, important, and sustainable position in the minds of the target market

43
Q

Key components of identifying and developing a positioning strategy

A

The place the product occupies in consumers’ minds relative to competing products.
Typically defined by consumers on the basis of important attributes.
Porsche is positioned on the basis of performance and freedom.

44
Q

Positioning methods

A

Positioning is how consumers view a company’s products and services based on important attributes. It places a company in mind relative to competing products.

Positioning may use one or more of the following strategies:
Value – e.g. relationship of price to quality
Product Attributes – e.g. innovation, quality, performance, and reliability
Benefits and Symbolism
Competition – e.g. head to head, differentiation
Market Leadership – e.g. leadership position within an industry

45
Q

Positioning: Benefits and Symbolism

A

Positioning: Benefits and Symbolism
This type of positioning emphasizes the benefits of the brand as well as the psychological meaning of the brand to consumers

46
Q

Positioning: Competition

A
  • position against a specific competitor
  • position against an entire product classification
  • Firms that lack market leadership often position themselves in contrast with the leader to demonstrate that they offer the same (or better) service and quality. Motel 6 used quirky commercials to poke fun at its low budget approach but still point out that it offered the same services as more expensive hotels.
47
Q

Positioning Steps

A
  1. Determine consumers perceptions and evaluations in relation to competitors
  2. Identify competitors’ positions
  3. Determine consumer preferences
  4. Select the position
  5. Monitor the positioning strategy
48
Q

Mapping Methods in Marketing

A

Mapping Methods in Marketing
- Perceptual maps (similarity-based methods, attribute-based methods)
- Preference maps (ideal-point model - unfolding model, vector model)
- Joint space maps (includes both perception and preference)

49
Q

Attribute based perceptual maps

A

Perceptual maps derived from customer evaluations of competing products along pre-specified attributes.
Step1: Identify products and product attributes for evaluation
Step2: Obtain perception data from questionnaires given to defined target segments.
Step 3: Select a perceptual mapping method.
Step 4: Plot the resulting map

50
Q

Attributes for positioning analysis

A

Performance: levels at which the product’s primary characteristics
Durability: a measure of the product’s expected operating life
Reliability: a measure of the probability that a product will malfunction or fail within a specified time period
Serviceability: a measure of the ease of fixing a product that malfunctions or fails.
Style: how well the product looks and feels to the customer
Product image: conveying the emotional aspects of the products i.e. prestige or reputation associated to the product/company
Delivery: how the product or service is delivered to the customer
Other services: availability warranty or services that add value to the customer’s purchase or use of the product
Service image: a number of attributes that contribute to the overall perception of the service i.e. competence, friendliness, and courteousness of service employees
Perceived quality: the degree to which the product meets customers’ expectations of what the product/service should be

51
Q

Preference Maps

A

Preferences allow customers to choose among alternatives.
i.e. All customers may perceive Volvo as safe, but not all customers value safety equally.
Preferences do not necessarily according to the magnitude of an attribute.
They cannot indicate which attributes should be changed to make a focal product more appealing to the target segment

52
Q

Two Types of Preference Representation

A

1) ideal point preference model
2) vector preference model

53
Q

Joint Space Maps + Methods

A

Incorporate both perceptions and preferences into the same map.
Two simple methods
1) Averaged ideal-point model: generating an average ideal-point requires a hypothetical ideal brand and it includes averaged perceptions of the ideal brand

2) Averaged vector model: The associated vector shows the direction of increasing preference. The further a product appears along this vector the more it is preferred.

54
Q

Marketing helps create …

A

Marketing helps create value

55
Q

Eras of marketing

A

Production-oriented era (turn of century - 1920): most firms believed a good product would sell itself

Sales-oriented era (1920-1950): firms found an answer to overproduction by focusing on sales

Market-oriented era (1950-1990): the focus was on what customers wanted.

Value-based era (1990- present): maintains the market orientation but also includes a focus on giving greater value than the competition.

56
Q

Value

A

Value means different things to different people.
Value can be measured by what a customer exchanges for various options that can satisfy a want of a need.
For most customers, value is a function of the benefit relative to the price paid.

Value = Benefits - Price

57
Q

Value: Benefit

A

Functional: i.e., the product “does the job”
Psychological: i.e., Nike shoes provide social status
Economic: i.e., Walmart offers branded products at everyday low prices

58
Q

Value: Price

A

Monetary: i.e. $, euro, £
Perceived risk
Inconvenience

59
Q

Perceived risk

A
  • performance risk
  • financial risk
  • social risk
  • physiological risk
  • psychological risk
60
Q

Subject and importance of need

A

Subject and importance of a need are the primary bases for a person’s perception of the need.
Needs higher up in the hierarchy are more crucial than those farther down.
NEC positioned its mobile phone as a safety device especially for women to place it’s importance higher in the hierarchy.

61
Q

Maslow’s Hierarchy of needs

A

Physiological needs (hunger, thirst)
Safety needs (security protection)
Social needs (sense of belonging, love)
Esteem needs (self-esteem, recognition, status)
Self-actualization needs (Self-development and realization)

62
Q

Temporal aspects of need

A

The urgency, frequency, and duration of a need defile it’s temporal dimensions.
An organization depending on reliable responses to customer telephone calls need reliable system and calling capacity
An organizations may need to update its new telephone switching system every five years.
A new telephone switching system may exist for several months before the upgraded system is ready.

63
Q

Customer Value - Objective measurement: Should-Do Measures

A

Internal engineering assessment
evaluations by the selling firm’s own managers and engineers based on lab tests.
i.e., alpha test and computer simulation

Indirect survey questions
Firms often query customers about the value they place on satisfying a need or resolving a problem.
Salespeople may ask company personnel about the effect of one or more changes in existing offerings on certain aspects of their needs or problems.

Field value-in-use (VIU) assessment
customer and supplier to conduct a joint value assessment.
i.e., to investigate how much customers are willing to pay for a new product, given the extra benefits that it offers.

64
Q

Customer Value - Perceptual customer value: Plan-to-do measures

A

Unconstrained question measures
Focus groups: five to ten customers convene for a several hour discussions with a trained moderator about their perceptions, attitudes, preferences, and usage of a product or service.

Direct survey questions: A sample of customers who agree to complete a questionnaire that includes a description of one or more potential product offerings or concepts.

Importance ratings: The most popular approaches to measuring customer value.
Respondents receive a set of attributes and describe a product offering and rate them according to their importance to them.

Constrained question measures
Conjoint analysis: the most widely used approaches, employing a field research survey to ask respondents to provide their overall ratings for each of a set of potential offerings.

Benchmarking: Respondents receive descriptions of a product offering and represents the best available competitive product or service which thus serves as a benchmark.

65
Q

Customer value - Behavioral Customer Value: Have-Done Measures

A

Choice models:
Using past behavior to infer or estimate the value of product characteristics that might best explain or predict actual behavior.
Firms can observe choices and infer the value that best explains those choices.
Output is an estimate of importance weights and probabilities of each market alternative for each customer.

Data mining:
Many organizations keep extensive records of customer purchases and these data can be cross matched with other data pertaining to customer characteristics.
Organizations can analyze the information to product segments according to customer profitability, the range of products and services acquired, and so forth.

The lifetime value of a customer generally equals the total profit a firm can expect to earn from that customer during the time the firm continues to maintain an ongoing relationship with the customer.
The growing availability of CRM (customer relationship management systems) and other customer database permits marketers to track the behaviors of individual customers in far more detail than ever before.

66
Q

Customer Lifetime Value (CLV) presents …

A

Customer Lifetime Value (CLV) presents value of a stream of revenue a customer produces
Focus on long-term relationship, not a single transaction

The idea here is that a customer can be viewed as a property with an associated earnings stream—rents come from the property but investments are needed to keep the property up. And the “property” may have values and costs beyond pure economics

67
Q

Two aspects of customer value

A

Two aspects of customer value:
1) Economic Value: (Risk Adjusted) Revenue Flow LESS Cost-to-Serve
2) Relationship Value: Reference, Referral, Learning, Innovation

68
Q

Customer Relationship Value

A

Reference Accounts (Give us prestige, high credibility): thought leaders in the medical field and provide the firm with credibility

Referral Accounts (Give us high-quality leads): accounts that can be strong recommendation

Learning Accounts (Help us refine our offerings/beta testers): accounts are willing to provide valuable feedback and suggestions prior to full market launches

Innovation Accounts (Help us to develop new offerings): mostly university-based physicians

Customers can provide several other kinds of value to a supplier; they might be unprofitable on a direct cash flow basis, but provide other, very valuable characteristics that help support overall market success. This chart illustrates some of those values.

Objectives for CLV-Based Management:
Increase customer retention
Improve customer selectivity
Meet competitive imperatives
Boost cost efficiency

69
Q

What is a product?

A

A product is the item offered for sale. A product can be an item or service there is more to its physical shape or basic service function.

70
Q

What is product for marketers?

A

What is product for marketers?
Product is anything that can be offered to a market to satisfy a need or want. For example, physical goods, services, experiences, events, people, places, properties, information, and ideas.

71
Q

Complexity of Products

A

Marketers involved with the development, design, and sale of products think of them in an interrelated fashion. At the center is the core customer value, next is the actual product, followed by associated services.

Actual product: brand name, quality level, packaging features/design
Associated services: financing, product warranty, product support

72
Q

Price

A

A complex issue
Requiring analytical and strategic thinking
Can be called tuition, rent, interest, a fee, dues, a fare … or a price
Generally money is exchanged
Sometimes not money (goods, services …)

73
Q

Price is a …

A

Price is a signal
Prices can be both too high and too low
Price too low may signal poor quality
Price set too high might signal low value
Consumers recognize price as a signal. If a marketer sets a price too high or too low, the wrong message gets sent to the market.
Remind students that price refers not just to money but also other costs such as time.

74
Q

Classical economics approach

A

Quantity demanded = f (Price)
Profit = Quantity (Price) ⋅ [Price – Unit Cost]
Find price to maximize profit (Find price where Marginal Cost = Marginal Revenue).

Core Assumptions:
focus on short run profit;
focus on immediate customers;
price is independent of advertising, promotion, etc.;
demand and cost functions are known;
unit cost is constant;
firm has true control over price;
competitors are ignored, etc.

75
Q

Cost-oriented pricing

A

When a company sets its prices as costs + markup percentage or fixed amount (cost plus)

Very common, but ignores the current elasticity of demand when setting prices, and will probably not lead, except by chance, to maximum profits

Markup pricing makes sense:
If average unit costs are fairly constant for different points on the demand function
If costs elasticity is constant over time

Common in retailing situations → used widely
(Although probably not optimal)

76
Q

Competitive-oriented pricing

A

When a company bases its prices chiefly on what its competitors are charging rather than on cost or demand

Competitive-oriented pricing mostly characterizes markets with homogenous commodities
Oil, water, etc.

Creates a price-stagnant market
If a firm increases prices, loses a lot of market shares
If a firm decreases prices, other quickly follow suit
Either downward spiral (price war) or stagnation
A price war is a price nobody can win (even if you win, you lose)
It is usually short-term myopia in action

77
Q

Demand-oriented pricing

A

When a company sets its prices as a function of demand, charging higher prices when demand is high, and lower price when demand is low

78
Q

Garbor-Granger

A

Pros:
Simple design
One measurement per price level
Robust, proven method

Cons:
No margins of error
Assumes data accuracy
Assumes optimal price is actually measured (what if out of range?)

79
Q

Gabor-Granger

A

Pros:
Simple design
One measurement per price level
Robust, proven method

Cons:
No margins of error
Assumes data accuracy
Assumes optimal price is actually measured (what if out of range?)

80
Q

Revenue Management Through Temporal Price Discrimination

A

Revenue management is the art and science of selling the right product to the right customer for the right price at the right time.
- High fixed cost industries
- Service industry (here, we focus on hotels and airlines)
- Alternative approaches (temporal price discrimination in the airline/hotel industry)
Time-of-day pricing
Time when purchased
Day of the week pricing
Seasonal pricing

81
Q

Implementing Revenue Management

A

Estimate demand for each class of service.
Demand arrives over time—so update demand function/remaining supply.
Allocate remaining space to:
maximize expected profitability
meet other criteria
subject to situation specific constraints.

82
Q

Factors of the Promotional Mix

A

Promotional Mix
- Advertising
- Publicity
- Sales promotion
- Personal selling
- Direct response
- Social media

83
Q

Advertising

A

Any form of impersonal, one-way mass communication
Paid for by a marketer
Traditional advertising media
television, radio, newspapers, magazines, billboards, online banner advertising,
transit cards, banner ads on social networks, websites, email, blogs
Benefit—ability to communication with a large number of people at one time

84
Q

Advertising Budgeting in Practice

A

Affordable method: Setting advertising budget according to what companies can afford.
Fluctuating advertising budget
Difficult to plan for long-range market development

Percent of sales: Many companies set their advertising expenditures at a specified percentage of their sales. i.e. automobile industry

Competitive parity method: Setting advertising budgets specifically to match competitors’ outlays
Objective/task method
Defining advertising objectives as specifically as possible
Determine the tasks
Estimating the costs of those tasks

Model-based /Response Model approach: i.e. advertising response model for online banner and keyword advertising offer firms

85
Q

Promotional Types and Targets

A

Trade Promotions
- Case allowances
- Advertising allowances
- Display allowances
- Contests

Retailer Promotions
- Price cuts
- Displays
- Feature ads
- Retailer coupons
- Free goods

Consumer Promotions
- Coupons
- Samples
- Price packs
- Value packs
- Refunds
- Contents
- Tie-ins

86
Q

Place: Distribution Components

A

Supply chain: focus on the sequence of firms required to create and deliver goods to the final consumer

Logistics Management: focus on the flow of raw materials & finished goods from point of origin to final consumption

Distribution Channels: focus on the companies that transfer the ownership of goods from the producer to consumers at the point of consumption

87
Q

How distribution channels work: the relationships between supplier networks, marketing channels, logistics management, and supply chain management

A

How distribution channels work: the relationships between supplier networks, marketing channels, logistics management, and supply chain management

Suppliers –> raw materials and parts flow from supplier to producer –> producer: finished products flow from producer to consumer –> consumers

88
Q

The Shaffer 4 C’s of Data Visualization

A

Clear - easily seen; sharply defined
who’s the audience? what’s the message?
clarity more important than aesthetics

Clean - thorough; complete
labels, axis, gridlines, formatting, right chart type, color choice, etc.

Concise - brief but comprehensive
not minimalist but not verbose

Captivating - to attract and hold by beauty or excellence
does it capture attention? is it interesting? does it tell the story?

89
Q

Tufte’s Five Laws of Data-Ink:

A

Tufte’s Five Laws of Data-Ink:
1) Above all else show the data.
2) Maximize the data-ink ratio
3) Erase non-data-ink.
4) Erase redundant data-ink.
5) Revise and edit.

90
Q

Dashboard “Dos”

A

Content position and size should match its importance and frequency of use

Use color and formatting to draw attention where needed, rather than to decorate

Visually associate data and content that is related

Use the needs of the user to drive the layout, rather than forcing layout with an inflexible grid
(note: this is a consideration when choosing tools)

91
Q

Storytelling with Data Process

A

Step 1 Understand the Context
Step 2 Choose an Appropriate Visual
Step 3 Eliminate Clutter
Step 4 Draw Attention where you want it
Step 5 Think like a Designer
Step 6 Tell a Story

92
Q

Gestalt Principle

A

Proximity: when things are close together, they appear to be more related.

Similarity: when things appear to be similar to each other, they will automatically be grouped together.

Enclosure: we perceive objects enclosed as groups.

Closure: When we view a shape, we prefer when it is complete.

Continuity: if an element is arranged on a curve or a line, it is perceived to be more related than other elements not on the line or the curve.

Connection: connected are perceived more related.