BU352 - CH 15,16,17 Flashcards
Describe advertising and the objectives of advertising
- a paid form of communication from an identifiable source, delivered through a communication channel, that is designed to persuade consumer to take action.
- all advertising campaigns are designed to either inform, persuade or remind customers.
- ads can also be used to stimulate demand for a particular category or industry, or for a specific brand, firm, or item.
what is the AIDA Model?
Attention leads to interest, which leads to desire, which leads to action. At each stage the consumer makes judgements about whether to take the next step in the process. Consumers have 3 types of responses so the AIDA model is also known as the “Think, Feel, Do” model.
3 Types of Advertisements?
Informative Advertising – Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase
• Important in the early stages of the PLC.
Persuasive Advertising –Communication used to motivate consumers to take action.
• Generally occurs during the growth and early maturity stages of the PLC, when competition is most intense and attempts to accelerate the markets acceptance and adoption of the product.
Reminder Advertisement – Communication used to remind consumers of a product or to promt repurchases, especially for products that have gained,market acceptance and are in the maturity stage of the PLC
what are the different focuses of advertisements?
- Product Focussed – Used to inform, persuade or remind consumers about a specific product
- Institutional Advertisements – Used to inform, persuade or remind consumers about issues related to places, politics, an industry, or a particular corporation.
- Public Service Announcements – Advertisement that focuses on public welfare and generally is sponsored by non-profit institutions, civic groups, religious organizations or political groups
Types of possibly unethical marketing? (some countries)
- Puffery – The legal exaggeration of praise, stopping just short of deception, lavished on a product. In Canada, consumers are viewed as rational and capable of evaluating advertising claims, in the EU however puffery is considered deception and is prohibited
- Stealth Marketing – A strategy to attract consumers using promotional tactics that deliver a sales message in unconventional ways, often without the target audience knowing that message has a selling motivation. Can take many different forms
- Viral Marketing – A marketing phenomenon that encourages people to pass along a marketing message to other potential consumers.
explain how sales promotions supplement a firm’s IMC strategy?
- Sales promotions are special incentives or excitement building programs that encores purchase and include: coupons, rebates,contests,free samples.
- Either push sales through the channel i.e. contests directed toward sales people
- or pull sales through the channel with coupons
what is personal selling?
Personal Selling is the two-way flow of communication between a buyer and a seller that is designed to influence the buyers’ purchase decision. Real estate agents, car salesmen, insurance brokers etc. are all examples.
What is the Value Added to the customer by Personal Selling?
- Educate and provide Advice – Customers see the value in and are willing to pay indirectly for the education and advice that sales people provide. Sales team can provide invaluable info about the product and operating of the product.
- Sales People save time and Simplify Buying – Because they provide advice and help to simplify the process by providing education and help, customers perceive value in time and effort saving by making the process easier for them.
What is the personal selling process?
- Generate and Qualify Leads – can be discovered through a variety of ways including talking with existing consumers, or networking a industry conferences or trade shows etc.
- Pre-approach – Occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step the sales person conducts additional research and develops plans for meeting with the consumer.
- Sales Presentation and Overcoming Objections
• The Presentation – objectives for the meeting are set in advance. The sales person is now ready for the person-to-person meeting.
• Handling Objections – Customers may raise objections pertaining to any number of aspects of the product, but usually relate to value. Important to handle objections promptly to improve the consumers chance of moving to the next stage - Closing the Sale – Obtaining commitment from a customer to make a purchase.
- Follow-up – The attitudes customers develop after the sale become the basis for how they will make purchased in the future.
What is Globalization?
The process by which goods, services, capital, information and ideas flow across national borders. Caused by and leads to a number of global changes affecting marketers
What are the factors that aid in the growth of globalization?
- Technology - facilitated the growth of global markets as firms can communicate with their suppliers and customers instantaneously.
- International organizations such as WTO, IMF, and the world bank group have reduced or eliminated tariffs and quotas, worked to help people in less-developed countries and facilitated trade in many areas.
What are the components of a country market assessment?
- Political and Legal Environment
- Economic Environment
- Sociocultural Factors
- Infrastructure and Technological Capabilities
what are Gert Hofstede’s Cultural Dimensions ?
- Power Distance – Willingness to accept inequality as natural
- Uncertainty Avoidance – The extents to which the society relies on orderliness, consistency, structure, and formalized procedures to address situations that arise in daily life
- Individualism – Perceived obligation to and dependence on groups
- Masculinity – The extent to which dominant values are male oriented. A lower masculinity ranking indicates that men and woman are treated equally in all aspects of life.
- Time Orientation – Short-versus long term orientation. A country that tends to have long-term orientation values long-term commitments and is willing to accept a long time horizon for success of a new production.
Describe the various market entry strategies?
- Exporting
- Franchising
- Strategic Alliance
- Joint venture - Contract Manufacturing – foreign firms contract with local firms in host market to manufacture product - Management contracting- Domestic firm provides management consulting and advice to foreign firm.
- Direct Investment – When a firm maintains 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation often of wholly owned subsidiaries.
Steps in Choosing a global marketing strategy?
Target Market: Segmentation, Targeting and Positioning
