Chapter 17-19 Flashcards
Institutional advertising
promotes organizational images, ideas and political issues
Advocacy advertising
promotes a company’s position on a public issue
Product advertising
promotes the uses, features and benefits of products
Two types of product advertising
pioneer advertising: tries to stimulate demand for a product category rather than a specific brand
competitive advertising: tries to stimulate demand for a specific brand
Three types of competitive advertising
comparative advertising: compares the sponsored brand with one or more identified brands
reminder advertising: used to remind consumers about a brand’s uses, benefits etc
reinforcement advertising: assures users they chose the right brand
ADVERTISING CAMPAIGN
1: find target audience
2: determine advertising objectives
3: determine platform
4: advertising appropriation: budget for a specific time period
5: media plan: specifies media vehicles to be used - reach the largest number of people
6: advertising message
7: execution
8: evaluation
Step 4: Appropriation
objective-and-task approach: budgeting by determining objectives and calculating those costs
percent-of-sales: multiplying the firm’s past and expected sales by a standard percent
competition-matching: determining a budget by trying to match competitor’s
arbitrary approach: budgeting for a campaign as specified by a high-level executive in the firm
Step 5: Media plan
media schedules:
continuous: ad runs at a constant level
flighting: ad runs for periods of time, alternating with times where the ad stops
pulsing: combines continuous and flighting
Step 8: Evaluation
pretest: eval of ads before the campaign begins
consumer jury: panel who pretests ads
posttest: eval after the campaign
PR
communication efforts used to create and maintain relations
Consumer-oriented sales promotions
sampling: in-store, events, on package
Couponing: most popular sales promo technique
premiums: offering an item either free or at a low price
Contests, sweepstakes, refunds, loyalty programs, event sponsorships
Price
value paid for a product
Barter
trading of products - oldest form of exchange
cost based methods
costs calculated on a per unit basis
competition based methods
price is an issue to match or beat competitors
value based methods
set prices according to the perceived or estimated value of a product or service
Odd pricing method
odd prices may be so traditional that sellers are afraid to round them off
marginal analysis
examines what happens to a firm’s costs and revenues when production changes by one unit
Fixed costs
costs that do not vary with changes in the number of units sold
average fixed cost
the fixed cost per unit produced
variable cost
costs that vary directly with changes in the number of units produced or sold
average variable cost
variable cost per unit produced
Break-even analysis
knowing the number of units necessary to break-even is important in setting the price
Internal reference price
a price developed in the buyer’s mind through experience with the product
External reference price
a comparison price provided by others
Consumers are characterized according their degree of:
value consciousness: concerned about price and quality of a product
price consciousness: striving to pay low prices
prestige sensitivity: drawn to products that signify prominence and status
Geographic pricing
reductions for the transportation and other costs related to the physical distance between buyer and seller
F.O.B factory
price of merchandise at the factory before shipment
F.O.B destination
price indicating the producer is absorbing shipping costs
Uniform geographic pricing
charging all customers the same price, regardless of geographic location
Expressives
participate in class, love to hear themselves talk
Amiable
make a friend, make a sell
Analytical
tell a story with numbers
Drivers
do it now, ask for forgiveness later
In sales
know a little about a lot
IMPORTANT DATA
35 students at forum, 33 starting a career in sales
for every sales person = their profit supports 13 people in their organization
in a 30 minute sales meeting - 800 visual cues
100:10:3:1
Calling on creative directors
most common place for salespoeple to be
Professional selling step 1
Pre approach:
get educated, professional dress, clean car, clean up LinkedIn
PS step 2
Approach: set appointment, give appropriate handshake
start with small talk, transition into purpose
PS Step 3
Needs identification:
SPIN QUESTIONING
SPIN QUESTIONING
S: Situational: what is going on
MAIN QUESTIONS: MAIN DECISION MAKER? BUDGET? TIME?
P: Problem
like a doctor, find out symptoms
I: Implication
throw gasoline on the pain fire - figure out what causes pain
N: Needs ID
summary of what was learned - figure out what is missing
PS Step 4
Presentation: SMILE!
PS Step 5
Objection:
Yes, but overcoming technique
PS Step 6
Trial closes: show proof and get them to say yes
keystoning
50% margin
market penetration pricing
Start at low price, good quality to sell lots
price skimming
how much can I get based on the brand equity? upsell it a ton, lower prices when it’s out of season
elastic demand
PRICE AFFECTS DEMAND
inelastic demand
PRICE DOESNT AFFECT DEMAND
