FINAL Flashcards
What is AIDA?
It underlies the consumer journey/purchase funnel. It entails awareness, interest, desire, and action.
What are offline, interactive marketing tools?
Engage potential customers by encouraging active participation or interaction in a physical environment: personal selling, sales promotions (competitions), and direct marketing (telemarketing)
What are offline, passive marketing tools?
Req minimal active effort from business after set up: advertising, sales promotions (coupons), public relations, direct marketing (catalogs)
What are online, interactive marketing tools?
Direct marketing (mobile marketing) and online marketing (blogs & social media)
What are online, passive marketing tools?
direct marketing - email marketing
What is inbound marketing?
Focuses on attracting potential customers by providing value and creating content that draws them to your brand organically. It’s customer-centric and aims to solve problems or fulfill needs. A bit more organic and personalized
What is outbound marketing?
Actively pushes your message to potential customers, often without them seeking it. It’s typically interruptive and brand-centric. Reaches a wider audience regardless if it applies to you. Useful for immediate exposure
How do consumers look to solve problems?
They search for solutions using keywords & phrases
What are the three types of media?
Paid, earned, and owned
What is paid media?
traditional advertising: print, television, radio display, direct mail, paid search, retail/channel
What is earned media?
word of mouth, facebook comments, twitter mentions & replies
What is owned media?
corporate website, campaign microsite, blog, brand community, facebook fan page
What are ways to assess ad responses?
Number of exposures.
What are diminishing returns in ads?
increasing the # of times you want your audience to see an ad, but it no longer has the same impact
What is a linear pattern in ads?
As the number of exposures increase so does the impact
What is the threshold effect in ads?
It means the audience needs to see the ad a certain number of times before they take notice. In this context, the threshold is the minimum level of exposure required to generate meaningful results, such as awareness, interest, or conversions.
What is the learning curve with wear out effect in ads?
In the initial phase, audience awareness and response improve as ad exposure increases. After a certain point, additional exposures lead to diminishing returns and may even cause a decline in effectiveness.
How are offers beneficial?
They help stimulate short term sales. It helps with action in purchase funnel. It can trigger competitive response, but can make consumers more deal prone.
How does the IMC budget vary?
It can vary by strategic goal, stage in product life cycle, competitive context, and time
What are rules of thumb when creating the IMC budget?
Competitive parity (company aligns its spending, strategies, or actions with those of its competitors), percentage of sales, and available budget
What are IMC objectives?
increase awareness, prompt trial, increase repeat units, increase sales, and increase customer loyalty
What are the metrics for IMC?
Return on marketing investment = (GM - Marketing Expenditures)/Marketing Expenditure
What is reach?
% of target population exposed to a specific marketing communication with a certain time period
What is frequency?
of times target consumers are exposed to an ad within certain time
What is cost per thousand (cpm)?
Used to compare costs of media. a targeted CPM by determining the % of readers, viewers or listeners in your target market.
What is cost per click (cpc)?
Also used to compare costs of media and to set advertising costs.
What is awareness?
It is the TOTAL of ALL the impressions from ALL marketing vehicles. In reality, awareness cannot be calculated for just one ad.
How to calculate CPM$?
(Marketing $ spent/Impressions received) * 1,000
How to calculate awareness from CPC?
(Marketing $ spent/CPC$)/total market
How to calculate awareness from CPM?
((($Marketing budget/CPM)1,000)0.50)/4/TOTAL MARKET
The 0.50 takes into consideration the average ad impact. The 4 takes into consideration a consumer will only remember an ad after seeing it 4 times.
What does supply chain refer to?
suppliers, manufacturers, intermediaries, and retailers
What is a marketing channel?
Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
What is a direct marketing channel?
Manufacturer –> Consumer
What is an indirect marketing channel?
Manufacturer –> Distributor wholesaler –> retailer –> consumer
Why use intermediaries?
They help create efficiency because they allow one retailer to be in charge of distributing various products to the consumer. They also adjust for assortment & quantity discrepancies, facilitate searching process, maintain relationship with existing customers, and provide market intelligence
What is a manuf rep?
Works for manufacturers as an external selling force. Does not typically take ownership of goods
What is a wholesaler/distributor?
Purchases goods and sells to retailers – common in food products
What is an agent/broker?
An intermediary with legal authority to act on behalf of the manufacturer – typically does not take ownership of goods
What is a retailer?
Sells to end consumer
Steps in retail strategy
Choosing retailing partners –> identifying types of retailers –> developing a retail strategy –>
What is an independent marketing channel?
A distribution system where each entity involved in the process of moving a product or service from producer to consumer operates independently and has its own goals, ownership, and decision-making authority
What is administered Vertical Marketing System?
Independent with dominant member
Ex: Proctor & Gamble has strong influence on how their products are distributed & promoted
What is contractual Vertical Marketing System?
A type of distribution channel where the relationships between the different levels (manufacturer, wholesaler, retailer) are formally coordinated through binding agreements or contracts. This system ensures collaboration and alignment of goals among independent entities while allowing each to maintain separate ownership.
What is corporate Vertical Marketing System?
A type of distribution channel where a single company owns and controls multiple levels of the supply chain, from production to distribution. In this system, one company consolidates the roles of the manufacturer, wholesaler, and retailer, allowing for complete control over the entire process
What are the three types of reaches retail partners have?
intensive, exclusive, and selective
What are advantages of bricks v clicks?
In store experiences allows customers to browse, touch, receive personal service, and use both cash and credit. Stores also provide entertainment and reduce perceived transaction risk. Online shopping provides access to deeper, broader selection, expanded market presence, and convenience, while allowing retailers collection of consumer data (e.g., email, address, credit card info)
How to manage channel relationships?
Mutual trust, open communication, common goals, interdependence, and credible commitments
What are the types of power retailers strive for?
reward, coercive, referent, expertise, information and legitimate
What is referent power?
a type of social power that stems from an individual’s ability to influence others based on admiration, respect, or identification
What is channel conflict and why do we care about it?
Channel conflict exists when one channel member believes another channel member is engaging in behavior that inhibits it from achieving its goals. Causes are incompatibility of goals, aims, or values & lack of agreement over relevant domains
What is vertical channel conflict?
Occurs when there is a disagreement or clash between different levels of the same distribution channel. This type of conflict typically arises between manufacturers, wholesalers, distributors, and retailers who operate within the same channel but may have competing goals, interests, or priorities
What is horizontal channel conflict?
Occurs when there is disagreement between retailers or same levels of the same distribution channel - think of target walmart davey spongebob story
What is critical in determining revenue?
Price, the other 3 P’s are costs that diminish profitability
What are the 5 C’s of pricing?
competition, costs, company objectives, customers, and channel members
What is an example of a profit-oriented pricing strategy?
include a companywide policy that all products must provide for at least an 18% profit margin to reach a particular goal for your firm
What is an example of a sales-oriented pricing strategy?
Set prices very low to generate new sales & take sales away from competitors, even if profits suffer
What is an example of a competitor-oriented pricing strategy?
Helps discourage more competitors from entering the market, set prices very low
What is an example of a customer-oriented pricing strategy?
Target a market segment of consumers who highly value a particular product benefit and set prices relatively high (referred to as premium pricing). Personalized medicine firms
What is profit oriented?
company assesses margin on portfolio
What is sales oriented?
set prices very low to generate new sales & take away sales from competitors, even if profits suffer
What is competitor oriented?
To discourage more competitors from entering the market, set prices very low
What is the break even point?
Quantity necessary before company begins generating profit