Ch1/2 Flashcards
Marketing Mix
Product, price, place, promotion
A set of controllable tactical marketing tools.
Marketing
Uses activities to create and sustain relationships with customers
Requires:
1. Two or more parties with something of value to one another
- A desire and ability to give uo that something to the other party
- A way to communicate with one another
Types of marketing decisions (Product decisions)
- Product type
- Features or attributes / benefits
- Corporate name/identification
- Brand name / identification
- Package decision
Types of marketing decisions (price decisions)
- Price level
- Price policy
- Discounts
- Allowance
- Flexibility
Types of marketing decisions (distribution decisions)
- Channel type
- Channel policy
- Type of intermediary or reseller
- Type of location / store
- Service level
Product type
Product may come as a form of physical good a service a cause an idea or even a person. Usually in exchange for money
Product attributes / benefits
Advertising and marketing Communications are used to draw attention towards these benefits product symbolism is developed and maintained by marketing communication.
Brand identity
Marketing Communications presents the brand and its identification in situations that will allow the consumer to view the brand positively.
Brand equity
Intangible asset of added value or Goodwill.
Brand Equity provides the company with a competitive Advantage by allowing its product to earn greater sales volume and/or higher margins than it could without the name.
Communicating price
Marketing communication plays a role and reinforce and consumers believe that product benefit or quality accurately indicates the price decision.
Communicating distribution
Marketing communication often provides information as to where a product can be purchased or what kinds of service might be available in various locations.
Communicating value
The relative balance or ratio of what consumers ‘receive’ for what they ‘give’
Promotional mix
Advertising, direct marketing, internet marketing, sales promotion, public relations, and personal selling.
Promotion
Coordination of all seller initiated efforts to set up channels of information and persuasion to sell goods and services or to promote an idea.
Sales promotion
Activities providing extra value or incentive to Sales force, distributor, or customer.
- consumer sales promotion
- trade sales promotion
Public relations
- Evaluating public attitudes
- Identifying policies and procedures of individuals or organizations
- Executing a program of action to gain public understanding and acceptance.
Publicity
Non-personal communication regarding an organization, product, service, or idea.
- communication reaches the public in a form not directly paid for by the company
- more credible to Consumers than other forms of promotion and has lower cost.
Direct marketing
Communication directly with Target consumers who generate a response or transaction
- used by companies who distribute directly and by those who distribute traditionally
Internet marketing
Interactive media
- The last for instant two-way communication
- Allows for modification of the received information by the receiver.
- Internet allows for execution of each element in the marketing mix
- interactivity allows for extended communication and additional communication
- interactive features of social media facilitate communication among users and are powerful means of brand influence
Personal selling
Person-to-person communication
Seller encourages perspective buyers to purchase company’s product or service or act on an idea
direct contact between buyer and seller gives communication flexibility to marketer.
Participants in the promotional process
- Advertiser (client)
- Advertising agency
- Media organizations
- Specialized marketing communication Services (direct response agencies, sales promotion agencies, interactive agencies, public relations firms, media buying agencies)
- Collateral services
Integrated marketing Communications
Coordinates various promotional and marketing activities which communicate with a firm’s customers.
Evolved as companies realized the need for strategic integration of promotional tools
Provides clarity, consistency, and maximum Communications impact.
Renewed perspectives of IMC
- Unified Communications for consistent message and image
- Differentiated communication to multiple groups
- Database-centered communication for tangible results
- Relationships fostering communication with existing customers
IMC management
Process of planning, executing, evaluating, and controlling the use of promotional mix elements to communicate effectively with Target audiences
- the result as the IMC plan.
Marketing communication agency
A multi-service (non-specialized) marketing agency
Creative brief
Agency’s creative department uses a creative brief to guide the development of advertisement ideas and concepts
Methods of agency compensation
- Media commisions
- Markups
- Fees
- fixed-fee commission
- cost-plus agreement
- incentive-based compensation
Financial audit vs. Qualitative audit
Financial audit- focuses on how the agency conducts its business
Qualitative audit- focuses on the agency’s efforts in planning, developing and implementing the clients advertising programs and considers the results achieved.
Specialized services
- Creative boutiques
- Media buying services
- Sales promotion agencies
- Public relations firm
- Direct-response agebcies
- Digital/interactive agencies
Role of media buying services agencies
Specializes in buying media especially broadcast time
agencies and clients develop media strategy
media-buying organizations implement the strategy and buy time and space
