Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
219 Cards in this Set
- Front
- Back
|
marketing communications
|
- communication between the company and the customer
- any way to communicate with the customer - also called marcom |
|
|
what is being communicated
|
- explicit messages not hidden
- cues to trigger association - explicit- go to website tell you to purchase 6 day 7 night magic vacation, telling you exactly what they want you to do - show you mickey (explicit) you think disney (implicit) |
|
|
communication channel
|
- way we send communication
- different from distribution channel - distribution channel- way we send message to maket - communication channel- the way we send message to market |
|
|
what are various communcation channels?
|
- advertising
- Promotions - PR - Sales - Direct - Merchandising - Feedback |
|
|
advertising
|
- purchase of space or media
- subchannel ex: TV - any type of advertising |
|
|
PR
|
- trying to influence public opinion
- often called free media - subchannel: events - doing things hoping you are going to influence reporter to put you in the news paper not getting space from newspaper |
|
|
promotions
|
- short term incentives to encourage purchases
- subchannel: coupons |
|
|
sales
|
- personal interactions to encourage and reinforce purchase
- sell blocks of rooms to organizations - sell banquets to individuals for weddings - personal interactions to encourage and reinforce purchase |
|
|
direct
|
- individualized advertising in the form of correspondent
- formerly called direct mail - includes email and internet banner advertising |
|
|
merchandising
|
- usually a retail thing
- how products are arranged and displayed in the store - how we arrange package |
|
|
feedback
|
- intiated by customers based on reaction to purchase
- company's response is marcom opportunity - person writes in and complains, company can manipulate with response to get them to come back again |
|
|
elements of marcom strategy
|
decide on target market
- objective - message - effectiveness |
|
|
objective
|
- what we are trying to achieve with this AD
- awareness - inform - persuade -reinforcement |
|
|
awareness
|
- ensure customer's know you exist
- outcome is recognition or recall - pets.com spend 3 million in advertising so people would know - recall - play Ads for a week , stop playing - walk up to someone and ask if they recall it - not ne essarily trying to get you to buy the product tomorrow - trying to make them aware that the company exists |
|
|
inform
|
- ensure customers have correct info about the product
- outcome- desired understanding of features and benefits - mac attacking PC - make direct claim and they think it is misinterpreted - want people to think product is relaible, show it is relaible, they think after that it is reliable |
|
|
persuade
|
- influence or determine buying decision
- outcome- want you to buy in next few days |
|
|
reinforcement
|
- after purchase
- maintain positive impression - reduce anxiety - outcome: satisfied customer and repeat purchase ex: wedding, honeymoon |
|
|
message
|
- content
- appeal |
|
|
content
|
- what is in the message
- verbal and visual - what are the words, what are we showing |
|
|
appeal
|
- what is the basis of appeal
- rational - emotional or physical - trust |
|
|
rational
|
- decision based on reason, analysis and facts
- car goes 30mph - pricing- come to four seasons this week for $200/night |
|
|
emotional or physical
|
- decisions based on feelings and reactions
- show food on commercials, make you want food - coors light twins- nothing to do with beer, men like women |
|
|
trust
|
- decision based on relationship or opinion that we trust
- credibility or endorsement - celeb endorsement- tiger woods and buick -catherine zeta jones and tmobile |
|
|
effectiveness
|
- did communication succeed?
- audience size - positive recall - purchase behavior - cost-benefit |
|
|
audience size
|
- how many people saw it
|
|
|
positive recall
|
- did they recall it?
- aided- did you like the ocean spray ad? prompt about ad - unaided- did you see the Ad where guys are standing in cranberry bog? what brand was that?- asking vague question |
|
|
purchase behavior
|
- if you want them to buy, did they buy?
|
|
|
cost-benefit
|
- how much did it cost to run the campaign
- new business that we got, we hope it is more than you put into it - comparison of increased cost vs. what you bring in |
|
|
marketing communications mix
|
- combination of communication channels
- mixture of strategy chosen for particular campaign |
|
|
issues involved in deciding mix?
|
- access to target market
- suitability of message - credibility - cost benefit |
|
|
access to target market
|
- for grandfather, shouldn't be using internet advertising
|
|
|
suitability of message
|
- if you want to tell a story do a narrative and use lots of visual images
- use TV |
|
|
credibility
|
- does it somehow contribute to your credibility?
- dotcom firms- didn't exist and people didn't trust them, spent alot of adverisement |
|
|
cost benefit
|
- TV ad's are expensive
- can we afford it? - is there a cost benefit? |
|
|
how do differnt channels compare in mix decision
|
1. advertising
2. promotions 3. PR 4. Sales 5. Direct |
|
|
advertising
|
- broadcast
- expensive campaign, low cost per eyeball, high cost per target - ability to create video narrative |
|
|
public relations
|
- third party credibility
- less expensive but not free - less control over message |
|
|
promotions
|
- direct impact on buying behavior
- may involve discounting and lower margains - must be delivered through another channel |
|
|
sales
|
- interactive and adaptable
- direct impact on buying behavior - limited audience and high cost per target |
|
|
direct
|
- can be inexpensive per contact
- highly targeted - may be ignored or dismissed - response rate .5-3 % |
|
|
promotions
|
- short term incentives to encourage purchase
- a day, a week, a month |
|
|
why promotions are important to the hospitality industry
|
- fragmentation
- perishability |
|
|
fragmentation
|
- breaking into pieces
- supply and demand are location specific ex: own one mcdonalds, cant do national advertisement - local managers have no control over CRS brand advertising- corporate wants you to hit numbers - may need highly focused marketing for individual properties - promotions are marketing tooks for local managers |
|
|
perishability
|
- can't sell tonight's room tommorrow
- fixed capacity regardless of demand - may need agressive effort to sell inventory before it expires - promotions are marketing tools for time-critical sales |
|
|
promotional tools
|
- samples
- coupons - specials and sales - packages - premiums - rewards - point of purchase - contests |
|
|
samples
|
- free product to encourage sampling or experimentation
- theoretical idea- people don't use product because they don't know what it is or how to use it - especially important for product intro - familiarization trips for buyers of interval vacations (time shares) |
|
|
coupons
|
- price reductions connected to a voucher
- includes discounting and buy one method |
|
|
specials and sales
|
- price reductions for a limited time
- ex: back to school sale |
|
|
packages
|
- combining multiple products into single packages and single price
- creates perception of increased value and allows transfer margins - happy meal - tasting meal at aujord' hui |
|
|
premiums
|
- free or sold items in addition to core product
- gifts with makeup or perfume |
|
|
rewards
|
- cash or other incentives to repeat purchase or increase frequency
- loyalty programs - not short term but still considered promotion - marriot rewards and visa |
|
|
point of purchase
|
- signs, displays or advertising at any point of purchase
- cash register and chapstick - hospitality- any where on property - guiness coasters, elevator in admirals lounge for American airlines |
|
|
contests
|
- offering opportunity to win a prize
- monopoly at mcdonalds |
|
|
Public relations
|
- activities to influence public opinion
|
|
|
goals of PR
|
- obtain positive publicity- everything but paid advertising
- creat positive word of mouth PWOM or buzz - induce 3rd party endorsement - celeb or NY times - create benevolent corporate image |
|
|
elements of PR strategy
|
- same as elements for marcom
- tools are different |
|
|
tools of PR
|
- news generation or media placement
- events - appearances - public service or support - corporate publications - crisis communications |
|
|
news generation
|
- do something to get them to write an article about us
- partnering with news or entertainment to generate publicity - exploiting shortages in supply of news and entertainment - cbs 6/hr day cnn 24/day |
|
|
media placements
|
- PR agency placed/pitched story
- travel and leisure- city of philly story about new hot restaurants - wall street journal , 5* ratings |
|
|
events
|
- creating large open events to attract customers
- creating small exclusive events to attract opinion leaders - chowder festival in newport, restaurants that participate get publicity |
|
|
appearances
|
- media apperances, speeches or third party events
- executives, mascots or associated celebs - ronald mcdonald |
|
|
public service or support
|
- anything we do in a charitable way
- RMH - Four seaons Terry fox run - Fairmont- Boston symphony orchestra |
|
|
Corporate publications
|
- McDonalds- pamphlet, Mcdonald's and you- why they're such a great company
- starbucks- fair trade |
|
|
crisis communications
|
- PR relations to defend brand under attack
- response to negative publicity cause by failures in 1. quality standards 2. customer or employee safety 3. legal or regulatory compliance 4. ethical or community standards |
|
|
quality standards
|
- ford pinto when hit blew up from behind
|
|
|
customer or employee safety
|
- someone gets hurt at work
|
|
|
legal or regulatory compliance
|
- require to follow anti- discrimination laws and don't
|
|
|
ethicial or community standards
|
- people don't like the sound of what you've done
- anything media decides upon, real or percieved, getting bad publicity no matter what and you have to deal with it |
|
|
goals of crisis communication
|
- minimize effects or duration of negative publicity
- make less severe not ignore it ex: tylenol and poision in caplets, bought back from retailers, took off 3 months settled, didn't hide |
|
|
principles of crisis communication
|
- participate meda interest, plan for worst case scenario
- appoint spokesperson - be informative and truthful - correct factual errors quickly - do not avoid media attention or minimize problem |
|
|
anticipate media interest
|
- stories about bad rasberries making people sick
- hotel served rasberries and you got sick - plan ahead that CBS going to be on news - think worst case scenario |
|
|
appoint single spokesperson
|
- have 1 person be spokesperson
- Royal carribean should've done this from the beginning |
|
|
electronic marketing
|
- any marketing enabled or enhanced by information technology
- internet - database direct marketing |
|
|
benefits of using internet for buyers
|
- convienient
- immediate - interactive and responsive - allows comparison pricing - private from other consumers - more selection and variety |
|
|
benefits for sellers
|
- supports relationships- allows identification, tracking, interaction and follow up
- reduces cost - increases speed - more flexibility |
|
|
should internet be considered distribution channel
|
- if company's own website then direct channel supported by electronic technology
- if through 3rd party- travelocity, then internet |
|
|
are there any problems with internet as channel for sellers
|
- disintermediation
- loss of control over pricing |
|
|
disintermediation
|
- being cut out of customer relationship
- when you add an intermediate that breaks up direct relationship with compnay - caused industry to loose control of distribution and won't every get it back |
|
|
loss over control of pricing
|
- downside of information and comparison
|
|
|
direct marketing
|
- marketing to specific indivudals without a channel intermediary
|
|
|
advantages for sellers
|
- precision targeting
- personalization - customization - privacy from competitors - measurability - no channel intermediary more control, higher margin |
|
|
database direct marketing
|
- direct marketing supported by a database
|
|
|
process of database direct marketing
|
- building and maintaining a database
- guest history or loyalty database centralized data warehouse - finding people through data mining - using data to develop special value proposition - communication directly with customer |
|
|
integrated direct marketing
|
- multiple vehicle
- multiple ways of contacting them- email, brochure ect. - multiple stage campaign - using multiple communication channels on multiple occassions |
|
|
CRM
|
- customer relationship management
- integrated direct marketing over time - enables relationship building - develiping sense of connection or affinity in customers mind |
|
|
alternative marketing / guerilla marketing
|
- unusual or non-tradtional channels, methods, or messages
- could be advertising, PR, or mix of both |
|
|
goals of guerilla marketing
|
- minimize marketing costs for new entrants
- appeal to target who are jaded or otherwise difficult to influence - get noticed wihtin clutter of traditional marketing communicaitons |
|
|
ex of alternative marketing
|
- sponsorship
- product placement - opportunistic advertising - performance art - secret agents - oddities |
|
|
sponsorship
|
- embedding advertising
- papa ginos |
|
|
product placement
|
- paying for product to be mentioned or shown within entertainment
|
|
|
opportunisitic advertising
|
- advertising where the opportunities are
- usual venues of advertising - have projector connected to suv, adidas does this projects on building |
|
|
performance art
|
- specific art where you act things out
|
|
|
secret agents
|
- using covert operatives as communication channel in business suits and walk up and down, ride elevators
- hot girl offering absolut drink |
|
|
oddities
|
- swiss air paid to have logo on field in zurich
- randy's donut, huge donut - huge socket outside electrical company - ronald mcdonald balloon in macy's parade |
|
|
sales or personal selling
|
- personal selling
- interpersonal relationships - and interactive communication - discssion or negotiation - persuassion to purchase |
|
|
when is sales channel appropriate
|
- large purchases due to high cost per contact
- groups for events, banquets, groups for room blocks (AMA, fidelity) |
|
|
stages in sales process
|
- prospecting
- targeting - qualifying - communicating - selling - servicing or account management |
|
|
prospecting
|
- starting from scratch
- who can i find? - finding potential buyers |
|
|
targeting
|
- deciding on approach priority
- fundraising for school if looking for 100,000 gift not going after alumni |
|
|
qualifying
|
- deciding if prospect has ability and intention to buy
- starting with advisory board, finding out who is capable of giving 100,000 |
|
|
communicating
|
- informing prospect about your firm and products
- listening to prospects needs |
|
|
selling
|
- cultivated talked to htem
- have capability, seen school but havent asked for money - have to ask for check - overcoming objections, usually come up with some sort of objection - key point for sales person- overcoming objective or move on - closing sale |
|
|
servicing or account management
|
- after the sale
- ongoing customer attention and resale |
|
|
tourism marketing
|
- marketing for destinations such as countries states or cities
|
|
|
how to induce tourism arrivals
|
- marketing theory
- same as any other just for specific location |
|
|
who is responsible for tourism marketing?
|
- usually government tourism office
- sometimes chamber of commerce or convention bureau, preview magazine paid for tourism |
|
|
marketing
|
- convincing people to buy something
- ensuring supply of customers |
|
|
how do we do that
|
- understand
- match - persuade |
|
|
understanding
|
- what do they want
- what does market look like - what price |
|
|
matching
|
- matching up supply and demand
- what we offer and what customers want - features - where located - what price - iterative process- go back and forth |
|
|
persuading
|
- how do we communicate with customers
- what do we say - how do we say it |
|
|
how is market different for product and services
|
- in most ways idential
- same principles, vocab and tools |
|
|
different for products and services
|
- intangibility
- separability - variability - perishability |
|
|
solutions intangibility
|
- tangibilize
- manage expectations |
|
|
solutions insepearbility
|
- manage employee behavior
- influence customer behavior |
|
|
solutions variability
|
- segmentation
- flexibile delievery systems |
|
|
solutions perishability
|
- influence demand
- manipulate supply |
|
|
what is strategy
|
- plan to achieve a goal
|
|
|
competitive strategy
|
- plan to gain advantage over competition
- what do we want - how will we win - why will we win |
|
|
who is competition
|
- direct competitors, those running companies just like yours
- starbucks dunkins caribou mcdonals- newmans own |
|
|
who else
|
- any competitive substitute
- New mans from mcdonals - 7 eleven cofee at home nothing |
|
|
what is advantage
|
- advantage in buying decision of customer
- battle of the lunch mcdonalds and wendys |
|
|
differences between tactics and strategy
|
- tactics- activies to implement strategy over the short term
- strategy- planning, big picture over long term, more than a year |
|
|
scale
|
- large size
- mcdonalds, big 1 type of business |
|
|
scope
|
- disney
many activities small but many types of business, tv network, cruise line movies |
|
|
economies of scale or scope
|
- advantages in cost or capability due to scale or scope
|
|
|
economy of scale
|
- advantages in cost
- mcdonalds buys heinz and ubuger to, mcdonalds gets better price |
|
|
economy of scope
|
- advantage in capability
- disney movies - can sell herby or pulp fiction - food- mcdonalds hamburgers but also chocolate cake |
|
|
competencis or capabilities
|
something your company does well, better than competition
- not products themselves - four seasons, selection vs, ritz quality mcdonalds advert wendys product dvelop |
|
|
Strategic business unit
|
- SBU
- stand alone operating unit within larger company - distinct competitors, separate management and strategy - separately run buiness - mcdonalds owning chipolte |
|
|
resource allocation
|
- dividing and assigning resources
- also known as capital budgeting |
|
|
market share
|
- share of market you control
- share in terms of revenues transactions or consumers |
|
|
differentiation
|
- making your product different from competitors products in eye of consumer
- four seasons and ritz |
|
|
how do customers make choices
|
- choose between alternatives
- differntiation makes differences clear so people can decide - mcdonalds and wendys with square burgers |
|
|
commodity
|
an undifferentiated product
customer can't tell difference |
|
|
what happens with commodities
|
- choose with price alone
|
|
|
make companies vulnerable
|
- get price wars
|
|
|
examples of commodities in hosp
|
- airline seats
- airline industry profits decreasing, people buying cheapest -american airlines #1 airline in terms of market share only one who hasnt been bankrupt |
|
|
diversification
|
- expansion into new business areas or categories
ITT bought shearton |
|
|
value chain
|
- chain of steps in production that ad's value
cheese- farmer- dairy- distributior- restaurant - at each point ad value typically expressed vertically |
|
|
integration
|
combining companies to expand
-vertical and horizontal |
|
|
vertical integration
|
- expansion up or down value chai
jumping stages - marriot buying distributior |
|
|
horizontal integration
|
- expansion in same step of value chain
- buyig same step - marriot buying ritz both selling rooms |
|
|
portfolio theory
|
- dont put all eggs in one basket
- divide business and divide risk -stocks, - mad cow- mcdonals affecte,d yum not |
|
|
barriers to entry
|
- things that prevent new competitors
- seafood limits , amoot of fish for chain restaurant |
|
|
external forces
|
- tools used
|
|
|
porter's five forces model
|
- industry
- suppliers - new entrants - buyers - substitutes |
|
|
industry
|
- rivalry
|
|
|
suppliers
|
- bargaining power wnat us to pay more , brand specific
|
|
|
new entrants
|
- threat
- mandarin oriental |
|
|
buyers
|
- want to pay less
|
|
|
substitutes
|
- threat
- four seaons NY instead of four seasons boston |
|
|
tools used for product portfoil
|
BCG growth matrix
|
|
|
BCG growth matrix
|
- cash cow
- star - question mark - cash cow |
|
|
growth
|
-mcdonalds big byt not growing quickly
low mature high new |
|
|
market share
|
- big bringing in alot of cash
- small not |
|
|
Dog
|
- dont want this , divest get rid oc if
|
|
|
? mark
|
- invest, try to make it a star
- if not sell |
|
|
star
|
- try to make cash cow
|
|
|
tools to make decision about growth
|
- ansoff product market expansion grid
|
|
|
ansoff product market expansion grid
|
market penetration
market development product development diversification |
|
|
tools used to develop overral strategy
|
- porters generics strategy
|
|
|
porter's generic stratey
|
- cost leadership
- differentiation - cost leadership focus - differntiation focus |
|
|
segmentation
|
dividing into pices
audience we're targeting |
|
|
dividing
|
products
markets |
|
|
product segmentation
|
- supply seller
marriot luxury- ritz upscale- mariot brand midscale- courtyard economy fairfield inn |
|
|
how do product and market segmentation relate
|
- executive stay at ritz
|
|
|
how complex can segmentation be
|
- standard
-extendd stay - fractional - conference |
|
|
marriot portfolio
|
- 1957 established marriot brand
|
|
|
standard
|
- 1 night usuage
|
|
|
fractional
|
- time share
- 1 of 1st big businesses |
|
|
Residence/Renaissance
|
- Residence for extended stay
- renaissance for real estate then decided to make boutique bbut very strange bc old hotels no logner boutique unclear what they're doing |
|
|
segmentation consistent? static?
|
-not necessarily
- same individual cusomter ma classify and choose differenty |
|
|
benefits of segmentation
|
- better understanding
- targeting and precision - focus within organization - growth opportunities |
|
|
what characterisitics work best to determine segment
|
- measurability
0accessability - substaintiabiloty - actionability - leverageability |
|
|
positioning
|
- putting somehting in right place
- understanding or creating a position |
|
|
position
|
- pallace hled by product service or brand relatiove to compeition in either mind or on chart
|
|
|
how create position in customer's mind
|
- marketing communications
- experience with product or service |
|
|
why create position in consumer's mind
|
- automatic buying choice
- innoculation against competition and single bad experience |
|
|
benefits as management exercise
|
- clarify value prop
- understand compeitive position find new market opportunities empty spaces for positioning map |
|
|
positionign maps
|
- choose parameters
- choose two dimensions - get data - plot data |
|
|
pricing
|
- setting a price
- determining conditions under which transaction occurs seller sets price as offer, buyer either accepts, rejects or counters |
|
|
price becomes real-
|
- until transaction clears
both agree and transaction clears |
|
|
value
|
- relationship between what you get and give
increase by increasing product offer or decreasing price |
|
|
margin
|
profit margin
|
|
|
price points
|
- price categories or levels understood by buer and seller
|
|
|
increase value
|
- increase get
- decrease give |
|
|
switching costs
|
- additional costs incurred by buyers if change suppliers
- loss of benefits to buyers if change suppliers - loss frequent flier miles |
|
|
factors pricing depends on
|
- external/demand factors
- internal or supply factors |
|
|
external
|
- consumer behavior
- competitor pricing - ability to pay |
|
|
internal-
|
- ability to profit
- strategic leverage ability to achieve strategic objectives profit maximaiztion market share leadership product quality leadership |
|
|
is lowest price always best for buyer
|
lower price- more demand
- usually lower price is determinant but not for lux segment- higher price more deamnds - sometimes value is determinant -pre for val equalition - no peference for specific price point |
|
|
seller
|
- depends on strategic objectives
assuming transaction clears - lowest price may be unimportant or even countrer productiove - postioning |
|
|
pricing factors change?
|
- yes, contextual
- ocassioal - social and cultureal reference |
|
|
different pricing philosophies
|
- competitor based pricing
- cost based pricing - break even pricing - value based pricing |
|
|
competiton based pricing
|
- setting prices based on competitor prices
- risk destructive price war |
|
|
cost- based pricing
|
- setting prices based on costs
- important for planning but ignores market demand |
|
|
value based pricing
|
- setting prices based on consumer willingness to pay
- not lowest price rather highest value - considers market demand but ignores costs |
|
|
real pricing strategy
|
-combination
|
|
|
pricing methods important to hispitality
|
- prestige pricing
- packaging or bundling - varaible pricing or price adjustment - promotional pricing |
|
|
prestige
|
- choosing high price to position product in luxury segment
|
|
|
packaging or bundling
|
- combinign mtliple products into a single package, with single price
|
|
|
variable pricing
|
- price changes depending on situtaion, context or even indivudal
- volume discounts - seaonality - yield management |
|
|
promotional pricing
|
- reducing prices to induce short term buying behavior
- discounting -loss leader - last minute pricing |
|
|
discounting
|
- lowering price to increase demand
|
|
|
loss leader
|
- reducing price on single item below cost
|
|
|
price premium
|
- charge higher price than competitors but consumers willing to pay
- unuasually strong demand relative to supply strong customer loyalty high switching cost combination |
|
|
price fragmentation
|
- losing control of pricing due to uncontrolled distrbution
|
|
|
market reaserach
|
- information that inorms our decions about marketing strategy
- cusomtesrs - products and brands - marketing communications - competitive environemtn - trends |
|
|
customers
|
- both ours and competitors
- current and future, past who are they how many are there |
|
|
products and brands
|
- owhat do customers think of brand
|
|
|
marketing and communications
|
- what is customers reaction to advertising
- do recall advertising do associate advetising with prodcut |
|
|
competitive environment
|
- what competitors doing
|
|
|
why do we want that info
|
- know more about decisions
|
|
|
types of information
|
- intelligence
- reaserach |
|
|
intelligence
|
- passive or informal collection
every day inofmration widely availble secondary reaserch food and wine travel and leisreu |
|
|
market reaserch
|
- active and formal colletion
- cusotmized for our company 0 primary reaserch |
|
|
pros/cons intelligence
|
- quicker
- cheaper - not targeted - not propreitary |
|
|
pros/cons market reaserch
|
- takes time
- can be expensive - targeted - propreity |
