Chapter 1 Flashcards
Marketing
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
Customer’s perception of all the benefits of a product/service weighed against all the costs of acquiring/consuming it
Exchange
Trade of something of value between two parties; usual medium is money.
Marketing Mix
The Four P’s - Product, Price, Place, Promotion
Integrated Marketing Communication (IMC)
Coordinate various promotional elements and other marketing activities that communicate with firm’s customers.
Uncontrollable Factors
External factors beyond control of the marketer. (Competition, Political/Legal system, Economy, Environment)
Conditions for Exchange
- At least 2 parties
- Something of value
- Communication and Delivery
- Freedom to Accept/Reject
- Desire to deal w/ other party
Types of Benefits
Functional - product served purpose
Experiential - what it feels like to use product
Psychological - feelings of self-esteem/status from owning product
Marketing Mix Other Names (6)
- The Marketing Mix
- The Four P’s
- 3 P’s and a D (distribution - place)
- 3 P’s and a C (communications - promotion)
- 2 P’s, a C & D
- Controllable Factors
Sustainability
Development that meets the needs of the current generation without compromising the ability of future generations to meet their needs
Promotion
The coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services/promote an idea
Elements of the Promotional Mix
- Advertising
- Direct Marketing
- Digital/Internet Marketing
- Sales Promotion
- Publicity/Public Relations
- Personal Selling
Advertising
Paid, nonpersonal communication:
- about organization, product, service, or idea
- w/ identified sponsor
- no immediate feedback from audience
Advertising Classifications
Consumers - national, retail/local, primary/selective demand
Organizations - business-to-business, professional, trade
Direct Marketing
Organizations communicate directly with target customers to generate a response and/or transaction
Forms of Direct Marketing
- direct mail
- catalogs
- direct response ads
- telemarketing
- direct selling
- database management
- shopping channels
- internet sales
Direct-Response Advertising
Promotion through ad, encouraging consumer to purchase directly from the manufacturer
Omnichannel Retailing
Companies sell their products through multiple distribution channels (retail stores, online, catalogs, mobile apps)
Digital/Internet Marketing
Interactive Media, Social Media, and Mobile Marketing
Interactive Media
Allow users to participate in and modify the form and content of the information they receive in real time
Social Media
Online means of communication and interactions used to create, share, and exchange content
Mobile Marketing
Messages delivered are specific to a consumer’s location/consumption situation
Sales Promotion
Marketing activities that provide extra value/incentives to the sales force, retailers, and/or ultimate consumer
Reasons for Sales Promotion (3)
- Declining brand loyalty
- Increased consumer sensitivity to promotional ideas
- Retailers’ demand for more trade promotion support from companies
Consumer vs. Trade Promotions
Consumer-oriented - couponing, sampling, premiums… encourages immediate purchases
Trade-oriented - promotional/merchandising allowances, price deals, sales contests, trade shows… wholesalers, distributors, retailers
Publicity
Nonpersonal communication regarding an organization, product, service, or idea not directly paid for/run under identified sponsor (news story, not under company control, high credibility-low cost)
Public Relations
Establish and maintain positive image of the company among various publics
Personal Selling
Person-to-person communication, seller attempts to assist and/or persuade prospective buyers to make a purchase/act on an idea
Coercion
Unethical, removes you from realm of IMC
Touch Point
Every opportunity consumer has to interact with the company and/or its brands
Types of Touch Points
- Company-created - planned
- Intrinsic - buying/using product
- Unexpected - unanticipated
- Customer-initiated - customer interaction
Paid Media
Channels marketer pays to leverage
Owned Media
Channels company controls
Earned Media
Exposure company didn’t pay for, generated by outside entities
Integrated Marketing Communications Management
Process of planning, executing, evaluating, and controlling the use of various promotional-mix elements to effectively communicate w/ target audience
Integrated Marketing Communications Plan
Provides framework for developing, implementing, and controlling the IMC program
Marketing Plan
Written document that describes the overall marketing strategy and programs developed for an organization/ product line/ brand.
Internal Analysis
Assesses relevant areas involving the product/service offering and firm
External Analysis
Factors such as characteristics of firm’s customers, market segments, positioning strategies, and competitors
Marketing Objectives
What is to be accomplished by the overall marketing program
Communication Objectives
What the firm seeks to accomplish with its promotional program
Promotional Spiral
consumer - price is going down as competitors compete
Promotional Trap
business - if you don’t your competitor will, and you’re trapped
