Marketing Final

Front 1

Promotion

Back 1

Mass communication (advertising, PR, content, and marketing), sales promotion, personal selling, and direct marketing.

Front 2

IMC Decision Factors

Back 2

Type of product? Stage in product lifecycle? Buyer readiness? How do consumers want to receive the communication? Push or pull strategy?

Front 3

Promotion and Product Life Cycle

Back 3

Introductory Phase– Increase awareness. Growth Phase– persuasive advertising to increase brand loyalty. Maturity and Remaining Phases– reminder advertising to lengthen the product's life span.

Front 4

AIDA

Back 4

Attention, interest, desire, and action.

Front 5

Pull Advertising

Back 5

Advertising directly to consumers.

Front 6

Push Advertising

Back 6

Paying retailers to advertise a product to consumers.

Front 7

Promotion Tools

Back 7

Selling, sales promotion, advertising, public relations, direct marketing, web/social, and personal selling.

Front 8

Benefits of Advertising

Back 8

Reach mass audience, low cost per exposure, can repeat message, can be dramatic, and perceived legitimacy.

Front 9

Drawbacks of Advertising

Back 9

Wasted reach, high total expense, impersonal, selective exposure, and clutter.

Front 10

6 M's of Marketing

Back 10

Market, motive, message, media, money, and measurement.

Front 11

Cause Related Marketing

Back 11

Promoting a product by allying with a charity/cause and giving it a portion of sales.

Front 12

Search Engine Optimization

Back 12

Used to increase the amount of visitors to a website by receiving a high web placement in a search engine.

Front 13

Search Engine Marketing

Back 13

Increasing website visibility in search engine results through paid advertisements.

Front 14

Remarketing

Back 14

Positioning targeted ads in front of an audience that had previously visited the product's website.

Front 15

Viral Marketing

Back 15

Using or creating interesting messages that are sent around the web. Gets devoted customers to tell friends. Can backfire if bad news is spread or if ad is memorable but not the product.

Front 16

Ad Recall

Back 16

Online magazines lead followed by tv ads.

Front 17

PR Benefits

Back 17

Inexpensive, can be more believable, mitigates selective exposure.

Front 18

PR Drawbacks

Back 18

Requires consistent effort, no guarantee of coverage, negative spin control" image."

Front 19

Evaluating PR Results

Back 19

Number of exposures (through purchased media costs), attitude changes (through consumer surveys), and contribution (through effectiveness of coordinated media).

Front 20

Sales Promotion

Back 20

Gives consumers a reason to buy immediately. Can be aimed at consumers directly or at salesforce/retailers to boost sales.

Front 21

Coupons

Back 21

Good at generating business but does not attract repeat customers well.

Front 22

Sales Promotion Benefits

Back 22

Immediate results and growth.

Front 23

Sales Promotion Drawbacks

Back 23

Erodes brand loyalty and is hard to manage.

Front 24

Types of Sales Promotions

Back 24

Coupons, conventions, rebates, trade promotions, sweepstakes, flash sales, and daily deals.

Front 25

Personal Selling Benefits

Back 25

2–way, flexible communication, relationships, personal, immediate feedback.

Front 26

Personal Selling Drawbacks

Back 26

Long–term commitment, expensive per exposure, and agency problem.

Front 27

Agency Problem

Back 27

The conflict of interest between a company's management and the company's stockholders.

Front 28

Direct Marketing Benefits

Back 28

Reach specific target customers, direct communication, can personalize, quick responses, feedback is measurable, and consumer convenience.

Front 29

Direct Marketing Drawbacks

Back 29

Junk mail" reputation, waste, privacy issues, growing consumer resistance, intrusiveness, and unethical marketers."

Front 30

Types of Direct Marketing

Back 30

Electronic, mobile, consumer generated media.

Front 31

Brand Blogging

Back 31

Must be open and transparent, if not clear who runs the blog it can create distrust and a bad image.

Front 32

Critical Success Factors for New Media

Back 32

Meaningful connections, targeted messages, relevant content, and minimal clutter.

Front 33

Impact of Marketing Communications

Back 33

Exposures, brand recognition, brand attitudes, sales inquiries and leads, referrals, purchase intentions, and customer loyalty.

Front 34

Consumer Price Knowledge

Back 34

Poor price knowledge, informed decisions based on pricing can be difficult, reference prices set boundaries for acceptable prices, and consumers rely on retailers to send signal about fair prices.

Front 35

Pricing Objectives

Back 35

Price flexibility, price levels over product life cycle, discounts and allowances, and price strategy.

Front 36

Internal Factors Affecting Pricing Decisions

Back 36

Marketing goals, marketing–mix strategies, costs, and organizational considerations.

Front 37

Marketing Tactics that Affect Pricing Decisions

Back 37

Survival, current profit maximization, market share leadership, product quality leadership, and situational.

Front 38

Survival

Back 38

Set low prices to cover variable costs and some fixed costs in order to stay in business.

Front 39

Current Profit Maximization

Back 39

Pricing to maximize profit.

Front 40

Market Share Leadership

Back 40

Price as low as possible in order to have the most market share.

Front 41

Product Quality Leadership

Back 41

Higher prices to cover the higher costs associated with making a high–quality product.

Front 42

External Factors Affecting Price

Back 42

Industry structure, economic factors, perception of price and value, laws, regulations, ethics, price–demand relationship (elasticity), and competitors' prices.

Front 43

Factors Affecting Price Sensitivity

Back 43

Unique value effect, substitute awareness effect, price comparison effect, business expenditure effect, end–benefit effect, total expenditure effect, shared cost effect, sunk investment effect, and the price quality effect.

Front 44

Unique Value Effect

Back 44

Consumers are less price sensitive when they value any unique attributes in a product. Eg. nike swooshes.

Front 45

Substitute Awareness Effect

Back 45

Buyers are more price sensitive the higher the price difference between this product and the perceived substitute.`

Front 46

Price Comparison Effect

Back 46

Buyers are less price sensitive the more difficult to evaluate the competing offers.

Front 47

Business Expenditure Effect

Back 47

Buyers are less price sensitive when it comes to expenditures that are covered by the company that they work for.

Front 48

End–Benefit Effect

Back 48

Buyers have less price sensitivity when the total expenditure is low relative to total cost of the end product. Eg car add–ins.

Front 49

Total Expenditure Effect

Back 49

Buyers are more price sensitive the higher the total expenditure, both in dollar terms and as a percentage of income.

Front 50

Shared Cost Effect

Back 50

Buyers are less price sensitive the smaller the portion of the price they actually pay.

Front 51

Sunk Investment Effect

Back 51

Buyers are less price sensitive when they have already spent money on the product. Eg car repairs.

Front 52

Price Quality Effect

Back 52

Buyers are less price sensitive to the extent that higher price signals higher quality.

Front 53

Factors that Influence Pricing Tactics

Back 53

Marketing Objectives, demand, costs, pricing approaches, competition, product life cycle, price of other products in the line, markup in channels, legality, and discounts.

Front 54

Cost Plus Pricing

Back 54

Adding direct material cost, direct labor cost, and overhead cost for a product with a markup percentage.

Front 55

Target Profit Pricing

Back 55

Setting the price with the intent to make a certain amount of money.

Front 56

Competition Based Pricing

Back 56

Focus on competitors, monitor the going rate, and avoid price wars.

Front 57

Value Based Pricing

Back 57

Setting the price of a product at it's perceived value to the customer.

Front 58

New Product Pricing

Back 58

Premium/economy pricing, skimming pricing, and penetration pricing.

Front 59

Premium/Economy Pricing

Back 59

Setting price either artificially high or low in order to encourage certain consumer perceptions about the product.

Front 60

Skimming Pricing

Back 60

Setting the initial price high and then lowering it over time to get profits from customers that are not price sensitive initially and customers that aren't later.

Front 61

Penetration Pricing

Back 61

Low initial price in order to bolster demand in a new market.

Front 62

Existing Product Pricing

Back 62

Product line pricing, price bundling, promotional pricing, optional pricing, and captive pricing.

Front 63

Product Line Pricing

Back 63

Renewing and setting prices for multiple products that a company offers in coordination with one another. Eg Apple offering different types of iphones that become more and more expensive.

Front 64

Price Bundling

Back 64

Combining several products into a single, all–inclusive package with a reduced price.

Front 65

Promotional Pricing

Back 65

Reducing prices for a short time in order to bolster sales.

Front 66

Optional Pricing

Back 66

Giving customers optional extras that they can buy along with their initial purchase. Eg charging more for a window seat on an airplane.

Front 67

Captive Pricing

Back 67

Charging a relatively low amount for the initial product but charging much more for additional items that are required for the first purchase to work. Eg razorblades.

Front 68

Promotional Pricing Allowances

Back 68

Advertising allowance, stocking allowance, push money allowance, and coupons/rebates.

Front 69

Advertising Allowance

Back 69

Paying retailers for cooperative advertising.

Front 70

Stocking Allowance

Back 70

Paying retailers to stock more of a product.

Front 71

Push Money Allowance

Back 71

Paying retailers to prominently display/push a certain good.

Front 72

Coupons/Rebates

Back 72

Paying retailers to drop the price of a good or give out coupons for it.

Front 73

Reference Pricing

Back 73

Reference pricing refers to how much consumers expect to pay for a good in relation to other competitors and the previously advertised price. It could also refer to a situation when a firm sells price just below the main price of its competitor.

Front 74

Price Rounding

Back 74

Charging prices of say $999 instead of $1,000.

Front 75

Anti–Competitive Pricing

Back 75

Predatory pricing, horizontal price fixing, vertical price fixing, and price discrimination.

Front 76

Predatory Pricing

Back 76

Pricing a product very low with the intent to drive competitors out of the market or create barriers to entry.

Front 77

Horizontal Price Fixing

Back 77

Agreement among companies to restrain price competition.

Front 78

Vertical Price Fixing

Back 78

Parties at different levels off a system of production and distribution act to fix the market price of goods.

Front 79

Price Discrimination

Back 79

Charging customers different prices for the same product.

Front 80

Consumer Pricing Ethics

Back 80

Unit pricing, sale pricing, price comparisons, and price increases.

Front 81

Necessary Conditions for Yield Management

Back 81

Relatively fixed capacity, perishable inventory, advance reservations, time–variable demand, high fixed costs, low marginal costs, and segmentable markets.

Front 82

Rate Fences

Back 82

Made during price customization to insure that high–value buyers don't benefit from low prices.

Front 83

7 P's

Back 83

price, product, promotion, place, people, processes, physical evidence.

Front 84

Brand Product Design Decisions

Back 84

Establish the core product, translate benefits into design and quality levels, and make branding decisions.

Front 85

Levels of a Product

Back 85

Interactive product, supporting product, facilitating product, and core product.

Front 86

Interactive Product

Back 86

Customer–place interaction, customer–system interaction, customer–customer interaction, and customer co–production.

Front 87

Supporting Product

Back 87

Delivery and credit, installation, warranty, co–brands, and loyalty programs.

Front 88

Facilitation Product

Back 88

Packaging, design, brand, quality level, people, processes, and physical evidence.

Front 89

Core Product

Back 89

The benefit to the consumer.

Front 90

Defining Product

Back 90

Product concept (physical goods/services, experiences, destinations, organizations, and ideas), brand (individual or family brand and manufacturer or private–label brand), package (protect and promote), and guarantee (none, limited, or unconditional).

Front 91

Examples of Core Product Innovation

Back 91

KFC snacker and go cups, cereality, square watermelons, and vino.

Front 92

Examples of Product Design

Back 92

Yotel NYC (luxurious but space conscious) and the Smart Inn (very tech savvy).

Front 93

Brand

Back 93

A name, term, sign, symbol, design, or a combination of these elements that is intended to identify the goods or services of a seller and differentiate them from those of competitors.

Front 94

Rebranding Examples

Back 94

Gap 2010 (changed logo and got severe backlash so they change it back) and Double Tree (changed logo to make it more mature and luxurious).

Front 95

Memorable Logos

Back 95

Simple, deliver positive brand benefits, familiar, attention–getting, and are trusted and respected.

Front 96

Benefits of a Strong Brand Name

Back 96

Attributes, consistency, quality and value, identification.

Front 97

Benefits of Strong Brand Equity

Back 97

High brand loyalty, name awareness, perceived quality, and strong brand association.

Front 98

Brand Equity

Back 98

The value derived from consumer perception of a brand name.

Front 99

Brand Power Importance

Back 99

It is more important for manufacturer brands to have positive brand attributes than it is for either private–label or generic brands.

Front 100

Branding Decisions

Back 100

Brand sponsorship decision, select brand name, and branding strategy.

Front 101

Brand Sponsorship Decision

Back 101

Chain brand, independent brand, license, or co–brand.

Front 102

Select Brand Name

Back 102

Does it suggest something? Easy to say/remember? Distinctive? Easy translation? Can it be protected?

Front 103

Branding Strategy

Back 103

Line extension, brand extension, multibranding, and new brand.

Front 104

Line Extension

Back 104

The use of an established product brand name for a new item in the same product category. Eg different flavors of coke.

Front 105

Brand Extension

Back 105

The use of an established product brand name in a different product category. Eg Disney paint and easyCruise.

Front 106

Multibranding

Back 106

The marketing of two or more similar and competing products by the same firm under different and unrelated brand names.

Front 107

Hotel Licensing Example

Back 107

Marriott luxury group used Bulgari, a luxury jewelry brand, to license a luxury hotel.

Front 108

New Product Development Process

Back 108

Idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, market testing, and commercialization.

Front 109

Idea Generation

Back 109

Internally from employees or externally from customers, competitors, suppliers, and distributors.

Front 110

Idea Screening

Back 110

Goal is to spot good ideas and drop bad ones as quickly as possible. Systems to evaluate ideas look at market size, product price, development time and costs, unit costs, and rate of return.

Front 111

Concept Development and Testing

Back 111

Develop product ideas into alternative detailed product concepts, test new product concepts with groups of target customers, and choose the ones that have the strongest appeal.

Front 112

Marketing Strategy

Back 112

1. Describe the overall target market, planned product positioning, sales and profit goals, and market share. 2. Describe 1st year product planned price, distribution, and marketing budget. 3. Describe long term sales and profit goals and marketing mix strategies.

Front 113

Business Analysis

Back 113

Review of a product's sales, costs, and profit projections to see if they meet company objectives.

Front 114

Test Marketing Elements

Back 114

Product, positioning, advertising, location, pricing, branding, atmosphere, and budget levels.

Front 115

Refreshed Brand Examples

Back 115

Polaroid pictures and Hotel Indigo.