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66 Cards in this Set
- Front
- Back
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Marketing
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The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
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Marketing Mix
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• Product Strategies
• Place Strategies • Price Strategies • Promotion Strategies |
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Validity
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Extent to which the research measures what it was intended to measure
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Reliability
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Extent to which research measurement techniques are free of errors
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Representativeness
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Extent to which consumers in the study are similar to the target of interest
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Evoked Set
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Brands or products that are recalled immediately from memory (between 3-7)
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Consideration Set
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- The brands/products actively considered as potential purchase options
- Amount of search is related to involvement & perceived risk in choice - Brands examined, sellers considered, product attributes evaluated, time spent searching, number of external information sources used |
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Level of Involvement
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High Level of Involvement - Extended problem solving
Low Level of Involvement - Habitual decision making |
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Market Segmentation
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Process that divides the market into subsets of customers who behave in the same way, have similar needs, or similar characteristics that relate to purchase behavior
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Targeting
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1. Segmentation
2. Targeting 3. Positioning |
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Positioning
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Developing a marketing strategy aimed at influencing how a particular market segment perceives a product in comparison to the competition
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Target Marketing
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Involves selecting which segments are appropriate to focus on and designing & implementing appropriate strategies to focus and reach that target market
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Evaluating Viability of Market Segments
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A viable target segment should satisfy these requirements:
- Measurability (ability to evaluate # of consumers and purchasing power) - Accessibility (ability to reach segments) - Substantialness (purchasing power should justify expenses) - Durability (stability of segment) - Differential responsiveness (whether segment responds to differentiated marketing stimuli) |
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Types of Targeting Strategies
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- Undifferentiated Marketing
- Differentiated Marketing - Concentrated Marketing - Customized Marketing |
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Undifferentiated Marketing
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- Appeals to a broad spectrum of people
- Efficient due to economies of scale - Effective when a broad base of consumers have similar needs - Example: Walmart |
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Differentiated Marketing
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- Develops one or more products for each of several customer groups with different product needs
- Appropriate when consumers are choosing among well-known brands with distinctive images and it is possible to identify one or more segments with distinct needs for different types of products - Example: L’Oreal (Elseve, L’Oreal, Lancome) |
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Concentrated Marketing
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- Entails focusing efforts on offering one or more products to a single lucrative segment
- Useful for smaller firms that do not have the resources to serve all markets (e.g., Niche marketing) - Example: Hard Candy |
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Customized Marketing
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- Segments are so precisely defined that products are offered to exactly meet the needs of each individual
- Example: Levi’s Original Spin (custom) jeans, hair stylists - Mass customization is a related approach in which a company modifies a basic good to meet the needs of an individual - Example: Gateway computers, Proctor & Gamble’s products at Reflect.com |
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Promotion
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Communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response.
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Promotion Mix
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- Advertising
- Sales Promotions - Public Relations and Publicity - Personal Selling |
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Advertising
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Non-personal communication from an identified sponsor using the mass media:
- can convey rich and dynamic images - can establish and reinforce brand identity - can communicate factual information - can remind customer to buy |
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Sales Promotions
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Programs that build interest or encourage purchase of a product through the use of an incentive in a specified time period.
- coupons - contests - rebates - premiums |
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Public Relations and Publicity
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Portray an organization and its products positively by influencing the perceptions of various publics
- writing press releases - holding special events - conducting and publishing consumer surveys - putting a positive spin on negative news |
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Personal Selling
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- Part of promotion that involves direct contact between a company representative and a customer
- Critical for many push strategies, B2B products, products that are complex and expensive, and product requiring a “personal touch” |
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Factors Impacting Promotional Mix Selection
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- Target Audience
- Product Life Cycle Stage - Product Characteristics - Cost and Availability of Promotional Methods |
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Impact of Push vs Pull Strategy
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- Personal selling more critical in push strategy
- Promoting to end consumers more critical in pull strategy (primarily advertising or other promotions to build demand by consumers) |
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Integrated Marketing Communications (IMC)
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The consistency of messages in all promotion media.
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Responses to Promotion
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Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard
- unaided recall - aided recall - attitudinal measures |
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New Media
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- Word of Mouth
- Buzz Marketing - Viral Marketing - Guerilla Marketing |
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Institutional Advertising
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Marketing designed to promote a company rather than a specific good or service. It can be designed to make the public more aware of a company or to improve the reputation and image of an existing company.
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Product Advertising
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Used to attract interest in a product or service line by offering consumers some additional incentive to make a purchase. Advertising promotion may take on several forms, with the most popular options being offering promotional gifts or promotional giveaways in some fashion
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Advertising
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Non-personal communication from an identified sponsor using the mass media
- can convey rich and dynamic images - can establish and reinforce brand identity - can communicate factual information - can remind customer to buy |
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Retail and Local Advertising
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Advertising done by retailers or local merchants to encourage consumers to shop at a specific store, uses a local service, or patronizes a particular establishment. Retail advertising tends to emphasize specific patronage motives such as price, hours of operations, service, atmosphere of store, image, or merchandise assortment.
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Co-op Advertising
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A cost-sharing arrangement in which manufacturers and suppliers provide financial assistance for customers' advertising programs. It can often make the difference in whether or not a small business can afford to advertise at all.
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Types of Advertising Media
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- TV: $200,000 on primetime
- Radio: $90-$120/week for rotator non fixed time slot - Newspapers: $1300/week for 2 X 2 ad. - Magazine: $1200-5000/month depending on issue, size and ad type - Outdoor billboards: $3000 artwork and installation, rates: $5000-500,000 - Internet: 0.60/click or fixed budget $1200-1800/month |
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Media Planning
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A problem-solving process for getting a message to a target audience in the most effective fashion
- Where to say it - When to say it - What to say |
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Measuring Cost Effectiveness of Advertising
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- Gross Rating Points (GRPs) - reach * frequency
- Cost per Thousand (CPM) - compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1,000 people |
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Viral Marketing
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The idea behind viral marketing is to inspire people to spread your message for you
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Social Media Marketing
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The process of gaining website traffic or attention through social media sites.
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Buzz Marketing
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A viral marketing technique that attempts to make each encounter with a consumer appear to be a unique, spontaneous personal exchange of information instead of a calculated marketing pitch choreographed by a professional advertiser.
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Types of Advertising Appeals
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Slice-of-Life
Lifestyle Fear Sex Humor Slogans and Jingles Reasons Why (USP) Comparative Advertising Demonstration Testimonial |
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Press Release
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- Unpaid communication in the mass media regarding the firm, product, or sponsored event
- Timely topics - Research project stories - Consumer information |
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Publicity
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- Portray an organization and its products positively by influencing the perceptions of various publics
- writing press releases - holding special events - conducting and publishing consumer surveys - putting a positive spin on negative news |
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Sponsorships
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- PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company’s contribution
- Examples: Olympics NASCAR |
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Sales Promotion
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Programs designed to build interest in or encourage purchase of a product during a specified period of time
- Deliver short-term sales results - Can target end consumers, channel partners, and/or employees |
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Personal Selling
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- Part of promotion that involves direct contact between a company representative and a customer
- Critical for many push strategies, B2B products, products that are complex and expensive, and product requiring a “personal touch” |
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Approaches to Personal Selling
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- Transactional Marketing: The Hard Sell
- Relationship Selling: --Winning customers --Keeping customers --Developing customers |
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The Creative Selling Process
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1. Prospecting and Qualifying
2. Preapproach 3. Approach 4. Sales Presentation 5. Handling Objections 6. Close Follow-Up |
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Distribution Channels
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Series of firms or individuals that facilitates the movement of a product from the producer to the final customer
- Direct - Indirect |
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Channel Intermediaries
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A middleman linking producers to buyers
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Utilities of Channel Intermediaries
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- Creates Utilities (Time, place, possession, form)
- Creates Efficiencies (Reduce transaction costs) - Physical Distribution - Breaking & creating bulk & assortments - Transportation & storage - Communication Functions - Provide link between customers & producers - Facilitating Functions - Installation, maintenance, & repair - Provide retail location, staffing, & training support - Credit support |
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Independent Intermediaries
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Merchant wholesalers
* Full-service & * Limited-service -- Cash-and-carry wholesalers -- Truck jobbers -- Drop shippers -- Mail-order wholesalers -- Rack jobbers Merchandise Agents or Brokers -- Manufacturers’ agents -- Selling agents -- Commission merchants -- Merchandise brokers |
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Functions that Wholesalers Perform
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Firms that handle the flow of products from the manufacturer to retailer or business user
- Independent - Manufacturer-owned |
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Types of Distribution Channels
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1. Consumer channels
2. Business-to-business channels |
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Direct Channel of Distribution
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A situation in which the producer sells a product directly to a consumer without the help of intermediaries
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Characteristics of Different Types of Distribution Systems
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Multiple channel usage
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Cause of Channel Conflict
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- Role incongruities
- Resource scarcities - Perceptual difference - Expectational difference - Decision domain disagreement - Goal incompatibilities - Communication difficulties |
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Intensive Distribution
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A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go
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Exclusive Distribution
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Situation where suppliers and distributors enter into an exclusive agreement that only allows the named distributor to sell a specific product
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Selective Distribution
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Type of product distribution that lies between intensive distribution and exclusive distribution, and in which only a few retail outlets cover a specific geographical area.
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Role of Channel Selection in Product Positioning
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Effective product positioning requires a clear understanding of customer needs so that the right communication channels are selected and key messages will resonate with customers
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Wholesalers
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Firms that handle the flow of products from the manufacturer to retailer or business user
- Independent - Manufacturer-owned |
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Retailers
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Part of an integrated system called the supply chain. Purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit
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Agents
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One who acts for, or in the place of, another, by authority from him; one entrusted with the business of another
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Price Collusion
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Criminal offense where numerous companies work together to keep the price of a product or service at an elevated level with the goal of receiving large profits or cornering the market.
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Gray Goods
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Genuine branded goods sold outside of an authorized sales-territory (or by non-authorized dealers in an authorized territory) at prices lower than being charged in authorized sales territories (or by authorized dealers).
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