final exam Flashcards
marketing communications
primary way for companies to convince customers to buy their products
integrated marketing communications (IMC)
planning process to make sure all brand contacts are relevant and consistent over time; get all promotional mix elements to work together
promotional strategy
a plan for optimal use of all elements of promotion to get a particular response; convince ppl that the product is the best option in the market
advertising
openly sponsored, one way message to promote a product (like superbowl ads)
public relations
communicating with customers, supplier, and employees to create a favorable image
sales promotions
short term incentive to initiate trial/purchase
personal selling
2 way flow of communication between a buyer and seller thats designed to influence the buyers purchase decisions; useful in B2b
social media
websites and application that allow users to create/share content
promotional goals
- informing: introducing features
- persuading: emphasize superiority
- reminding: getting customers to buy again
AIDA
- attention: customers are aware of product
- interest: consumer is interested in benefits
- desire: consumer likes brand
- action: consumer has intention to buy
nature of the product
business vs consumer, customized vs mass produced
promotion through the PLC
- introduce the product early
- grow the awareness
- maturity
- decline
types of buying decisions
- simple: buy without thought (gum)
- elaborate: buyers put more though (cars)
- push and pull:
push=gets company to sell more;
pull=appeal to customers directly
s curve of ad effectiveness
advertising to achieve long term goals
what are the major types of advertising
institutional & product
institutional advertising
promotes the entire company, can also be for PR
product adverstiing
pioneer, competitive, and comparative advertising
pioneer advertising
for primary demand, informative, prominent when introducing product
competitive advertising
focused on persuasion, appeals to emotion, prominent in growth stage
comparative advertising
comparing 2 or more brands, beneficial to lesser brands, prominent in highly competitive markets
advertising budget
- competitive parity: matching competitors prices when advertising
- percentage of sales
- DAGMAR
DAGMAR
Defining Advertising Goals for Measured Advertising Results & AIDA
process of developing an advertising campaign
- identifying focus product
- developing advertising appeals
- executive the message
- post-campaign evaluation
what are the types of advertising appeals?
savings, fear, admiration, fun, and more
executing the message
testimonials, slice of life, humor, scientific, fantasy
media types
newpapers, magazines, tv, radio, internet
media mix selection
cost, reach, frequency, longevity, speed, audience selectivity
media scheduling
- continuous
- flighted (important periods)
- pulsing (promote throughout the year and high sales periods)
-seasonal
new product publicity
- product review
- press release
product placement
products/brands featured during shows
consumer education
seminars, webinars, live demonstrations
sponsorship
company provides funding for event
websites and social media
comanies can use social media to communicate with customers
sales promotions
short-term incentives to initiate trial or purchase
consumer promotion
directed at consumers ( coupons, premiums, loyalty programs, sampling)
trade promotino
directed at intermediaries (trade allowances, push money, training)
face to face communication
expensive, but useful if it has high transaction or complex
relationship selling
focsued on long term, working with customers
customer relationship management (CRM)
business puts the customer on center stage and fulfill all their needs
steps in customer relationship management (CRM)
- identify customer relationship
- understand interactions with current customers
- capture customer data
- leverage customer information
data collection plan for CRM
start with first interaction with customers and continue to sell products effectively
data warehouse
data management used to create centralized database that can be shared w everyone in the organization
data mining
using company data to identify trends and relationships between marketing variables
steps in personal selling
- general leads or prospecting (find ppl interested in product)
- qualifying leads (assess buying power)
- approaching the customers
- developing and proposing solutions
- handling objections
- closing the sale and following up
sales managment responsibilities
- defining sales goals
- determining sales force structure
- recruiting and training the sales force
- compensating and motivating the sales force
- evaluating the sales force
social media
internet service to interact with consumers
control in social media
control shifts from markets to consumers; crowdsourcing
who pays for social media?
social media companies generate income through ad revenue
categories of media
- owned: online content is owned by company
- earned: PR but online
- paid: similar to paid ads
crowding in social media
increased popularity of social media has led to crowding; need to cut through noise to be noticed
content marketing
create interesting content to promote the product/brand
influencer marketing
like a celebrity endorsement; influencers get paid to create content w brands product
social listening
text mining to analyze conversations in social media, esp popular posts
what are the performance metrics for social media?
reach
engagement
acquisition
conversion
retention
SEO and SEM
reach metrics
how many people see posts related to the brand
engagement metrics
how many people interact with posts (engagement & amplification)
acquisition metrics
how many ppl visit a link posted
conversion metrics
transition from seeing a brand content then purchasing it
retention metrics
how many ppl are loyal to the brand
SEO and SEM
SEO = search engine optimization
SEM= search engine marketing
ethical issues in social media marketing
- privacy: using knowledge without consent
- microtargeting: entice customers w/o them noticing
- undisclosed advertising: sponsored
- content driven by algorithms:
- mental health: social media bad
- great firewall of China: china doesn’t allow a lot of popular apps
basic pricing concepts
price is how companies capture value; value = benefits/costs
company costs and marketing
sales and marking need to know abt company costs bc of profit and costs
revenue formula
revenue = price x units sold
profits formula
profits = revenue- costs
what are the two types of costs?
fixed costs-doesn’t change as level of output changes
variable costs-varies with changes in level of output
profit oriented pricing
focus on the interplay of revenue and costs
( profit max, breakeven price, targeted return on investment, markup pricing)
sales oriented pricing
focus is on revenue generation, units sold, or market share
sales oriented pricing
focus is on revenue generation, units sold, or market share
status quo pricing
focus on maintaining current market conditions
value based pricing
focus on customers perception of value
in a perfectly competitive market…?
as price goes up–> demand goes down
as price goes up–> supply goes up
equilibrium=supply and demand meet
elasticity
how customers react to changes in price
elastic demand
consumer demand is sensitive to price changes
inelastic demand
consumer demand is insensitive to price changes ( will buy no matter what)
what effects elasticity?
availability of substitutes, purchasing power, prestige priciing
market structure
pricing is heavily influenced by market structure ( monopoly, oligopoly, monopolistic competition, pure competition)
market entry pricing
- price skimming: higher at first
- penetration pricing: lower at first
types of discounts
quantity discounts, cash discounts, seasonal discounts, promotional/trade allowances, rebates, dynamic pricing, reduced rates for certain groups
geographic pricing
esp important w shipping costs
- FOB: price doesn’t include shipping
- uniformed: sellers cover shipping
- zonal pricing: divide by regions
commonly used pricing tactics
loss leader pricing (sold at unprofitable level), psychological, two part pricing, price bundling, versioning
what are the 3 legal isssues in pricing?
- price fixing- agreement btwn competitors to avoid price based competition
- price discrimination- legal way to lower costs to certain ppl
- predatory pricing- illegal if cutting price to kill competition
marketing metrics
indicator needed to measure business performance from a marketing perspective
unit margin vs mark up
unit margin- based on firms selling price
unit mark up- based on firms acquisition cost
breakeven point
level where total revenue=total cost
customer lifetime value (CLV)
measures how much profit a firm expects to make from a single customer throughout their relationship
non financial metrics
many of the marketing metrics are non financial (like image, preference, attitude)
measuring customer sentiment
must rely on self report, needs reliable measures
