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200 Cards in this Set

  • Front
  • Back
What is Marketing? (Definition)
The process by which companies create value for customers and build customer relationships to capture value in return.
What are the 5 steps of the Marketing process?
1. Understand the marketplace and customer needs and wants.
2. Design an STP Strategy (customer–driven)
3. Construct (from STP) an integrated marketing mix (4 Ps), which delivers superior customer value.
4. Build strong customer relationships to provide customer delight*.
5. Capture value from customers to create profits and customer equity.
Market Offerings
A combination of products, services, experiences, information to satisfy a need or a want.
Marketing Myopia
The mistake of paying attention to product attributes, as opposed to the benefits and experiences they provide.
Marketing Management
Choosing a target market and building profitable relationships with them
Segmentation
The process of dividing the marketplace into homogeneous segments that react identically to a marketing program.
Target Marketing
Choosing which segments to serve
Value Proposition
A set of benefits and values a market offering is promising to deliver to satisfy the needs or wants of customers.
What is the difference between demands and needs or wants?
Demands are backed up by buying power.
Production Concept
Consumers highly favor products which are available and affordable. Therefore, the firm should focus on production and distribution efficiency.
Product Concept
Consumers favor products offering the most in its product attributes (e.g. quality), compelling the firm to make continuous product improvements.
Selling Concept
Belief that consumers will not buy enough unless the firm undertakes a large–scale selling and strong promotional effort
Marketing Concept
Knowing the needs and wants of the target market and deliver the desired satisfaction better than competitors.
Societal Marketing Concept
Marketing concept, but also adding in the long–run interests of the consumers and the society as a whole.
Customer Relationship Management
The process of building and maintaining customer relationships by offering superior value and satisfaction.
Customer–Perceived Value
The consumer's evaluation of the benefits and costs of a marketing offering compared to those of competitors.
Customer Satisfaction
Perceived product performance compared to buyer expectations
Partner Relationship Management
Coordinating with all departments of a firm and those outside to maximize customer value
Customer Lifetime Value
The entire stream of purchases a customer makes over a lifetime of patronage.
Customer Equity
The sum of all individual customer lifetime values
Share of Customer
The portion of a customer's purchasing a firm gets in its product category.
What is strategic planning?
The process of developing a strategic fit between a company's objectives, capabilities and marketing opportunities.
What are the 4 steps of Strategic Planning?
Corporate levels:


1. Define the company's mission
2. Set the company's goals and objectives
3. Design a business portfolio.
4. Planning marketing strategy
Business Portfolio
Collection of business and products that make up the company
Portfolio Analysis
Process of analyzing the company's current business portfolio
Strategic Business Units (SBUs)
The key businesses of a company such as a company division, a product line, or a single product or brand
Growth–share matrix (draw matrix)
A portfolio–planning method which evaluates a company's SBUs in terms of its market growth rate and market share. [Star, Dog, Cow, Question Mark]
Ansoff Matrix (draw matrix)
A portfolio–planning tool to devise future growth in terms of product/expansion grid. [Market Penetration, Market Development, Product Development, Diversification]
Market Penetration
Company growth by increasing market share by increasing sales of current products to its current target market.
Market Development
Company growth by identifying and developing new market segments for current products
Product Development
Company growth by offering new or modified products to the current target market
Diversification
Company growth by starting up or acquiring businesses outside the company's current products and target market
Value Chain
Series of internal departments that carry out value–creating activities to design, produce, market, deliver and support a firm's products.
Positioning
A product or brand's position which is clear, distinct and desirable relative to competitors in the consumer's mind.
Define: Microenvironment
The actors close to the company that influence its ability to serve its customers. These are the company itself, suppliers, market intermediaries, customer markets, competitors and publics
Define: Macroenvironment
Larger societal forces that affect the Microenvironment (demoraphic, economic, technological, natural, political and cultural factors)
Define: Marketing Intermediaries
Firms/individuals that promote, sell and distribute the company and its products to the end–users
Define: Public
A group which can have a significant potential influence on a company's ability to achieve its objectives. E.g. financial, government, media, local, citizen–action, internal public, etc.
Define: Cultural Environment
Forces which affect a society's basic values, perceptions, preferences and behaviors (important for consumer analysis)
What are the various stimuli in a consumer's 'black box'?
Stimuli: 4 Ps, PEST.
What are the factors affecting the purchase decision?
Attitudes of others: attitudes of legitimate sources can alter the decision entirely. Other situational factors such as competitor prices can also change between intention and decision.
Define: Social Class
Ordered divisions of society whose members share similar values, beliefs and behaviors (upper, middle, working, lower classes).
Define: Word–of–Mouth Influence
The impact of information from legitimate sources such as friends, family associates on buying behavior.
Define: Opinion Leader
A person within a reference group which exerts a social influence on others. His/hers opinion can be a legitimate source of information, affecting buying behavior.
What comprise a consumer's personal factors?
Age, life–cycle stage, economic situation, occupation, lifestyle, personality and self–concept
Define: Lifestyle
A person's pattern of living in terms of activities, interests and opinions
Define: Personality
A person or group's unique psychological traits.
Define: Motive (drive; demand)
A need that has sufficient drive to seek satisfaction
How is lifestyle important to Marketing?
It shows that a consumer may buy a product due to the beliefs, values or lifestyle it represents
Define: Brand Personality
Association of human personalities to a brand. E.g. happiness, sincerity, sophistication, etc.
What are the 4 types of buying behaviors? How are they measured?
Complex, Dissonance Reducing, Variety Seeking, Habitual. They are measured in terms of brand similarity and consumer involvement.
Define: Cognitive Dissonance
Defined also as "Buyer's Regret," it is buyer discomfort caused by postpurchase conflict.
Define: Postpurchase Behavior
Stage in the buyer decision process in which consumers take further action after purchase, depending on their satisfaction.
What are the 5 steps in buyer decision process?
1. Need Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
5. Postpurchase Behavior
What is the distinction between commercial and personal information?
Both are information sources, but personal information sources legitimize or evaluate products for the buyers
What are the observable responses in the 'black box' model?
Buyer Behavior, Brand Choice, Purchase location, timing, brand engagement, etc.
Define: Differentiation
Process of differentiation a firm's market offering to deliver superior value and increase brand equity.
Define: Market targeting
The process of evaluating the attractiveness of segments and selecting one or more.
What are the 4 segmentation variables?
Geographic, Demographic, Psychological, Behavioral
What are the 3 bases of psychographic segmentation?
Social Class, Lifestyle and Personality (Self–Concept)
What are the 4 bases for behavioral segmentation?
Occasion, benefits sought, user status (& user rate), Loyalty Status
Define: Intermarket segmentation
Segmenting markets across different countries
What are the 5 requirements for effective segmentation?
1. Measurable: size, purchasing power, profiles can be measured
2. Accessible: distribution
3. Substantial: profitability
4. Differentiable: homegeneous, respond similarly to a marketing program.
5. Actionable: within company' capabilities
What are different factors that determine a segment's attractiveness?
Size, growth, competition (substitute products), barriers to entry, buyer power, supplier power
Define: Undifferentiated (mass) Marketing
Targeting the entire market and ignore market segments, focusing on the common needs of consumers, rather than what is different.
Define: Differentiated (segmented) Marketing
Targeting several market segments by providing distinctly different market offerings for each.
Define: Concentrated (niche) Marketing
Targeting a few market segments to gain a larger market share
Define: Micromarketing
Tailoring market offerings and programs to specific individuals (or local customer segments. E.g. cities, neighborhoods, etc.)
When is undifferentiated marketing more favorable?
One is for selling uniform products such as water and steel. Another is when the nearly the entire market is sufficiently homogeneous to a specific marketing program.
Product Posititioning
How a product is defined by consumers in terms of its attributes, relative to competitors'.
In what ways can a company differentiate itself in the market?
Product: performance, quality, design
Service: speed, convenience, delivery
Channels: channel coverage, expertise and performance
People: better trained staff
Image: brand image/equity
What are the different sets in a Unique Selling Proposition?
Consumer Wants, Competitor Positioning, Company Positioning
Define: Competitive Advantage
Offering greater customer value by offering lower prices, or more benefits or quality which justify higher prices
Define: Positioning Statement
A statement which summarizes a brand positioning containing: target market, brand name, concept, competitor difference.
Define: Product.
Anything which can be offered to the market to satisfy a want or need
How does a service relate to a product?
A form of (subset of) products consisting of activities, benefits or satisfactions which do not result in ownership.
Apart from product, service, channel, people and image, how else can a company differentiate its market offering?
Brand Experience
Define: Core Customer Value
"What is the customer really buying?"
What are the three levels of products? And, what are their characteristics?
1. Core Customer Value2. Actual Product: brand name, features, quality, packaging, design
3. Augmented Product: Warranty, after–sales service, product support, delivery and credit
What are the 4 types of Product types?
1. Convenience Product
2. Shopping Product
3. Specialty Product
4. Unsought Product
What are the characteristics of convenience products?
Low customer involvement

Low price
Intensive distribution
Mass promotion
Frequent purchase
What are the characteristics of shopping products?
Complex Buying Behavior
Higher Price
Selective Distribution
Ads and personal selling by producer and reseller
What are the characteristics of specialty products?
Strong brand preference and loyalty
High customer involvement
Low brand comparison
High Price
Exclusive distribution
Carefully targeted promotion
What are the characteristics of unsought products?
Low product awareness
Varying price and distribution
Aggressive promotion
Rare need
E.g. Red Cross blood donations
On what 3 levels do marketers make decisions for product and services?
1. Individual products
2. Product Lines
3. Product Mix
What are the decisions for individual products?
1. Product Attributes
2. Branding
3. Packaging
4. Labeling
5. Product support services
Define: Brand
A name, term, sign, symbol or design which identifies the products or services to the minds of consumers.
Define: Brand Equity
The differential effect of a brand name, product or marketing on customer responses
What are the attributes of a product?
1. Quality: characteristics that have the ability to satisfy customer needs2. Features
3. Style and Design: combination of aesthetics combined with its benefits
Define: packaging
Design of a product's container
In what ways can brand help?
Benefit identification to consumers

Product line (or mix) quality expectation transfer
Segmentation: targeting different segments
How can labels help?
Brand identification

Operation (who, what, how) description
Quality Level
Brand positioning communication
Image differentiation
What are product support services and how can they help?
They are augmented products such as warranty, after–sales service, delivery and credit, etc. They help by improving brand experience, which can potentially create customer delight.
Define: Product Line
A group of products that have similar functions sold to the same target market and have similar marketing programs.
What are product line decisions?
1. Line filling: adding items in a line. It can be susceptible to cannibalization
2. Line stretching: upward (luxury), downward (low–end products)
Define: Product Mix
The set of all product lines
What are the four characteristics of a product mix?
1. Width: number of product lines
2. Length: number of products in a line
3. Depth: number of versions of products in a line
4. Consistency: product function, type, distribution channel, etc.
What does streamlining a product mix entail?
Removing individual products or entire lines that don't perform well to regain consistency and focus.
What are the 4 characteristics of a service?
1. Intangibility
2. Inseparability: same time of production and consumption
3. Variability: quality depends on who, when, where and how service is provided
4. Perishability: cannot be stored for later consumption
Define: Brand Value
The total financial value of a brand
What are the major decisions in building a brand?
1. Brand positioning
2. Name Selection
3. Sponsorship
4. Development
What are the 3 levels comprising a brand positioning?
1. Attributes
2. Benefits
3. Beliefs and Values (emotional level)
What are the various decisions in brand name selection?
1. Suggestive of brand positioning
2. Promotes brand recall and recognition
3. Distinct
4. Extendable (product attributes)
5. Capable of legal protection
What are the four brand sponsorship options?
1. National brands
2. Store Brand (manufacturer)
3. Licensed Brands: licensing names previously created by other manufacturers (e.g. characters, celebrity names)
4. Co–brands: using established brands of different companies on the same product
What is a benefit of co–branding?
It can achieve greater brand equity due to wider brand categories
What are the 4 choices to develop a brand? What are the dimensions of its grid?
1. Line extension
2. Brand Extension
3. Multibrand
4. New Brand


Grid dimensions: brand name and product category
Define: line extension. How can it be good or bad?
Extending an existing brand name of an existing product category in terms of its product attributes. It can be good if it increases market share; bad if it cannibalizes other brands, similar to product line filling.
Define: brand extension. What are the benefits?
Extending a brand name to a new product. It can aid in faster adoption for new products and instant recognition, saving promotional costs (brand awareness)
Define: Multi–brands
Creating new brand names on existing product categories
Define: new brands
Creating new brand names using new products
How is a brand managed?
Increased promotional effort

Improving brand experience
Improving information legitimacy*
Define: competitor analysis
Identification of key competitors, as well as assessing their strengths, weaknesses, objectives, strategies and reaction patterns. This also involves choosing which to attack or avoid.
Define: competitive marketing strategies.
Developing a strong position for the company against competitors.
What are the steps for competitor analysis?
1. Identification
2. Assessment
3. Competitor Selection
Define: strategic group
Firms within an industry adopting a similar strategy.
What is customer value analysis and how is it conducted?
A Venn diagram detailing benefits target market values and how they rate compared to competitor offerings.
Define: benchmarking
Comparison of company's market offerings and processes to competitors or leading firms in another industry to identify best practices to improve quality and performance.
How can one determine a close or distant and good or bad competitors?
Closeness is determined by similarity in positioning (market offerings).


Goodness is a measurement of how a competitor can share market and development costs (leading to product differentiation). Also, it can increase total market demand.
What are examples of "finding uncontested market spaces"?
Introduction of new product categories (e.g. Apple)
Innovations in distribution channels (e.g. Southwest Airlines direct point–to–point air carrier.
What are possible competitor objectives?
Profitability

Market share growth

Cash flow

Technological leadership

Service leadership
How can competitors be identified?
1. Industry POV (competitors within the same industry)
2. Market Perspective (serving same customer value)


or


1. Same products
2. Same services
3. Competing for same consumer dollar.
Define: competitor myopia
Focusing on a direct competitor and ignoring potential indirect competitors, such as those that may technologically render companies redundant.
What is the difference between position in positioning?
Position refers to the market share a company owns, while positioning refers to the place of a product relative to competition in the consumer's mind.
What are the different competitor positions?
1. Market leader
2. Market challenger
3. Market follower
4. Market nicher
What can be the possible market leader strategies? How can these be implemented?
1. Market share expansion (improving product and service quality; improve brand experience further)
2. Market share protection (fixing weaknesses, innovation, price consistency and improving customer relationships)
3. Expanding total demand (more users, more usage, new uses)
What is the possible market challenger strategy? How can it be implemented?
Challenging market leader for more market share. This can be done by the second mover advantage: observation of successful traits of leader improves on it.
What are the possible market follower strategies?
Copy or improve on leader's products with less investment
Create distinct advantages
Keep production costs low or quality and service high
What is the ideal market niche segment?
A profitable one with high growth potential, yet small in size to for bigger firms to have an interest.
What is the key for market niching?
Specialization in terms of core customer value knowledge and customer intimacy
What are Michael Porter's four basic competitive positioning strategies? Describe each.
1. Overall cost leadership (lowest possible distribution and product costs)

2. Differentiation (highly differentiated products to be the leader in the industry)


3. Focus (serving a few market segments well than most of the market)


4. Middle of the road (firms not pursuing a clear strategy)
What are the three value disciplines (competitive advantage)? Describe each.
1. Operational excellence. leading in price and convenience


2. Customer intimacy. Precise market segmentation and tailoring its products or services to exactly match their core customer values.


3. Product leadership. Continuous stream of leading–edge products or services
Define: Customer value–based pricing
Setting prices based on customer perception of value rather than production costs (AKA Price Ceiling)
What is the difference between value–based and cost–based pricing?
Value–based pricing determines customer perception of value and setting price accordingly, whilst cost–based creates a product and determines its cost and convince buyers of its value.
What are the two types of value–based pricing?
1. Good–value pricing
2. Value–added pricing
Define: good–value pricing
Offering the right combination of goods and services of a certain quality at a fair price.
Define: Value–added pricing
Attaching more features and services to a product for differentiation and higher costs
Define: Cost–based pricing
Setting prices based on production and distribution costs.
Define: fixed costs (overheads) and Variable costs.
FC are independent from the production level. VC are dependent on production level.
Define: competition–based pricing
Setting prices based on competitor's market offerings
What are the factors affecting price decision?
Competitor strategy, company capabilities, nature of demand
What are the pricing strategies for new products?
1. Market–Skimming
2. Market–Penetration
Define: market–skimming (price skimming)
Setting high prices for a new product to skim the maximum revenues from each layer of a segment willing to pay a high price (customer intimacy*); low sales volume, but higher profit margin
Define: market–penetration pricing
Setting low prices to gain a larger market share to penetrate the market.
What are the conditions for market–penetration pricing to succeed?
1. Must have price–sensitive consumers
2. Average production and distribution costs must decrease as sales increase.
3. Firm must maintain low–cost positioning
What are the 5 product mix pricing strategies?
1. Product line pricing: across entire line
2. Optional–product pricing: accessories
3. Captive–product pricing: must be consumed with main product (e.g. ink)
4. By–product pricing: selling by–products to help keep main product price competitive
5. Product bundle pricing: selling a combination at a lower price
What are the different price adjustment strategies?
1. Discount and allowance pricing: reduction based on time, volume or promotion


2. Segmented Pricing: based on customers, products, location and time


3. Psychological Pricing: using price to determine quality; reference prices, using other prices


4. Promotional Pricing: pricing below list, or even production costs to stimulate SR sales.




5. Geographical Pricing:




6. Dynamic Pricing: adjusting price continuously to meet the characteristics and needs of individual customers and situations.





7. International Pricing:
What are the effects of decreasing price?
It can boost sales and utilize excess capacity. However, it can initiate a price war with a competitor holding on to market share.
What are the effects of increasing price?
It can boost profits and reduce excess demand. However, it can damage a brand. One way to solve excess demand is to strip product features.
Apart from holding on to current price, what are possible responses to competitor price cuts?
Reduce price
Raise perceived value
Improve quality and increase price
Launch low–price ("fighter brand")
Define: value delivery network
A network composed of the company suppliers, distributors and customers. Each partner with each other to improve the performance of the system.
What direction of the stream marketing takes? What are the two elements which form this stream?
Downstream. Wholesalers and retailers.
Define: marketing (distribution) channel
A set of interdependent organizations to make a product or service available for use.
Why do producers use intermediaries? How can they help?
It improves efficiency of the availability of goods to target markets. With their contacts, experience, specialization and scale of operations, their services can achieve more than the firm on its own.
What is the role of marketing intermediaries in terms of product assortment?
They decrease quantity and broaden product assortment, or what the consumer wants. Simply, they actively aid in matching supply with demand.
What are the functions of marketing intermediaries?
1. Information: gathering and distributing information in the environment to aid exchange.


2. Promotion: aids in informing new promotional offers of producers to consumers.


3. Contact: finding and engaging target market (prospective buyers).


4. Matching: shaping market offerings to match consumer needs.


5. Negotiation: reaching agreement on price and other terms for exchange.


A. Physical distribution
B. Financing
C. Risk Taking: assuming risks of carrying out channel work
Define: channel level
A layer of intermediaries doing distinct work within a marketing channel.
Define: direct marketing channel and indirect marketing channel
A marketing channel with no intermediary levels. Intermediary: more than one.
Define: marketing channel design
Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying and evaluating channel alternatives
What may comprise the service level of a channel? Why is it bad to achieve highly on these?
1. Speed
2. Assortment breadth
3. Additional services (augmented product)


Because of its impracticality and higher costs, which will pass on to consumers.
How are objectives set for marketing channels?
Which segments to serve, which distribution channels to utilize and how to minimize the total channel costs.
What can influence the objectives for marketing channels?
Type of product (e.g. perishable), competition (e.g. to facilitate comparison shopping and environmental forces (e.g. legal constraints)
Define: intensive distribution. Which types of products commonly utilize this and why?
Stocking products in multiple geographic areas. Convenience products to maximize brand exposure and consumer convenience.
Define: exclusive distribution. Which types of products commonly utilize this and why?
Limiting the number of dealers to distribute the company's products.


Specialty products to enhance luxury goods' distinct positioning. Furthermore, it improves dealer support and customer service.
Define: selective distribution. Which types of products commonly utilize this and why?
Using more than one, but not all intermediaries willing to supply the product.


Shopping products to provide good market coverage, but with more control and less cost than intensive.
What are the two trade offs for channel decisions?
Control and cost
In terms of control and cost, how are short and long channels different?
Long channels will have less control, but less cost for the company and vice versa.
Define: retailing
Activities involved in selling goods or services to consumers for their personal, nonbusiness use.
Define: first moment of truth
The critical 3 to 7 seconds a shopper considers for a product on a shelf.
What are the four different forms of retailers in Hong Kong?
1. Department Stores
2. Superstores: large assortment of routinely purchased food & non food products
3. Convenience Stores
4. Multi–channel
How are the different forms of retailers formed in Hong Kong?
1. Amount of services provided
2. Price
3. Assortment
How are retailer types categorized? What are its different types?
Service and Price


1. Self–service: least sales assistance containing convenience products (fast moving consumer goods)


2. Limited–service: shopping goods, some sales assistance


3. Full–service: specialty products, most sales assistance
What is the critical factor for retailing success?
"Location, location, location"
In what ways can retailers gain competitive advantage?
1. Location (e.g. main street)
2. Price (e.g. high margin, low volume)
3. Assortment (width, length and depth)
4. Services (full, limited, self)
5. Atmosphere (visual, auditory, olfactory, space)
What are the 4 trends in retailing?
1. Retail convergence: merging of products, prices, customers and retailers, causing competition. "click and mortar," O2C (online and offline).


2. Personal touch from retailers


3. Megaretailers: size and buying power can offer better assortment, services and lower prices; shifting the power from producer to retailer.


4. Retail technologies: IT software systems for inventory control and better interaction for supplier and consumer. E.g. internet provides better convenience, more information and better brand connections.
What are the 5 major promotional tools in a promotion mix (or marketing communication mix)?
1. Advertising
2. Sales Promotion
3. Personal Selling
4. Public Relations
5. Direct and Digital Marketing
Define each of the 5 major promotional tools.
1. Advertising: Any paid nonpersonal promotion of ideas, goods, or services by a sponsor.


2. Sales Promotion: short–term incentives to encourage the sale of a product or service.


3. Personal selling: Personal customer interaction by a sales force for engagement, sales creation and building customer relationships.


4. Public Relations: Building good relations with the company's various publics through favorable publicity, a good corporate image and heading off unfavorable rumors.


5. Direct and digital marketing: direct engagement of individual consumers and communities to build customer relationship.
Define: Integrated Marketing Communications (IMC)
Integration and coordination of the 5 promotional tools to deliver a clear and consistent brand message.
What are the nine elements in the communication process? Draw graph.
1. Sender
2. Encoding
3. Message
4. Media
5. Decoding
6. Receiver
7. Response
8. Feedback
9. Noise: unplanned static distorting the message (e.g. distractions)
What are the 6 stages in the buyer–readiness stage?
1. Awareness
2. Knowledge
3. Liking. About the product itself
4. Preference. Favorable compared to competition.
5. Conviction. Best (comparison)
6. Purchase
How does a marketer identify a brand's audience?
4 Ws and 1 H
What is the AIDA(L) model? What
Attention
Interest
Desire
Action


Loyalty
Message design: what are 3 different appeals?
1. Appeal to emotion (Pathos)
2. Appeal to credibility (Ethos)
3. Appeal to logic (Logos)
4. Appeal to morality
What are the two forms of media (communication channels)? Define Each.
1. Personal Communication Channel. Direct communication (e.g. face to face and internet chatting)


2. Non–personal Communication Channel: Media without personal contact (e.g. atmosphere, events, major media).
What are the benefits of personal communication channels?
Word of Mouth Influence and Buzz Marketing
Define: buzz marketing
Cultivation of opinion leaders to spread information about a product or service in their groups.
What are examples of impactful message sources?
1. Family and friends
2. Online reviews (e.g. Amazon's customer reviews)
3. Celebrities
4. Professionals ("experts")


Essentially, credible sources
In terms of what can promotional messages be assessed?
Brand awareness, recognition, recall, customer satisfaction or repeat purchase
Promotion Mix Strategy.


Define: Push Strategy.
A promotion strategy which uses the sales force and trade promotions t push the product through channels.


Producer –> Channel Members –> End user
Promotion Mix Strategy.


Define: Pull strategy
A promotion strategy using advertising, direct and digital marketing to induce purchase from the consumer; "pulling" the demand from them.


Producer –> Consumer Demand –> Retailers & wholesalers –> Producer
What are the advantages and disadvantages of Advertising?
Advantages:
Can reach geographically dispersed masses
Due to its public nature, message is more legitimized.
Large scale can imply positivity about the producer
Can build a long–term image for the company
Impersonal, lacks persuasiveness

Expensive promotional tool.
What are the advantages and disadvantages of Personal Selling?
Advantages:
Most effective at building buyer preference and conviction
Builds customer relationships
Direct message: reduces noise
The most expensive promotional tool
Hard to change size of sales force
What are the advantages and disadvantages of Sales Promotion?
Advantages:
1. Attracts attention due to incentive
2. Compels engagement and purchase


Disadvantages
1. Not useful to build long–term brand preference and customer relationships.
2. No guarantee of repeat purchase
What are the advantages of Public Relations?
Advantages?
1. Credibility and realistic (e.g. news, sponsorships)
2. Can reach people averse to personal selling and advertisements
3. As with advertisements and personal selling, it can dramatize the product (pathos).


*it tends to be underused.
What are the advantages and disadvantages of Direct and Digital Marketing?
Advantages:
1. Immediate and personalized
2. Dynamic and fluid: message can be adjusted in real time
3. Tailored to appeal to specific consumers or groups
4. Interactive: builds customer relationship
What model dictates which promotional tool to use more or less?
Buyer–readiness stage
Define: online marketing and click and mortar. What are the benefits of click and mortar?
Marketing via the Internet. Click and Mortar refers to a business which owns both offline and online distribution channels (O2O). It can have the benefits of fast transactions and face to face interactions.
What are examples of online marketing?
1. Social Media Marketing
2. Mobile Marketing
3. Viral Marketing (digital form of word of mouth)
4. Blogs
5. E–mail Marketing
What are the three advertising objectives?
1. Informative (awareness and knowledge)
2. Persuasive (liking, preference and conviction)
3. Reminder (mature products; maintain customer retention)
What are the major public relations tools?
1. News
2. Speeches
3. Special Events
4. Written Materials
5. Corporate identity materials
6. Public Service Activities
7. Buzz Marketing
8. Social Media
9. Internet
What are examples of sales incentives (tools)?
1. Coupons
2. Samples (expensive)
3. Cash Refund Guarantee
4. Point of Purchase displays
5. Demonstrations