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111 Cards in this Set
- Front
- Back
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Goal is to develop marketing communications programs that coordinate and integrate all elements of promotion - advertising, sales promotion, personal selling, and publicity - so that the organization presents a consistent message
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integrated marketing communications
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5 Strategic Goals of Marketing Communication:
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1. Create Awareness
2. Build Positive Images 3. Identify Prospects 4. Build Channel Relationships 5. Retain Customers |
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5 Different Types of Integrated Marketing Communications:
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1. Advertising
2. Sales promotion 3. Public relations 4. Direct marketing 5. Personal selling |
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a paid form of non-personal communications about an organization, its products, or its activities that is transmitted through a mass medium to a target audience
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Advertising
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An activity or material that offers customers, sales personnel, or resellers a direct inducement for purchasing a product
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Sales promotion
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a non-personal form of communication that seeks to influence the attitudes, feelings, and opinions of customers, non-customers, stockholders, suppliers, employees, and political bodies about the organization.
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Public relations
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Uses direct forms of communication with customers
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Direct marketing
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Face-to-face communication with potential buyers to inform them about and persuade them to buy an organization's product
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Personal selling
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6 Methods to determine how much to spend on advertising:
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1. Percent of Sales
2. Per-Unit Expenditure 3. All You Can Afford 4. Competitive Pay 5. Research Approach 6. Task Approach |
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The firm simply takes a percentage figure and applies it to either past or future sales.
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Percent of Sales Method
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A fixed monetary amount is spent on advertising for each unit of the product expected to be sold.
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Per-Unit Expenditure Method
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Advertising budget is established as a predetermined share of profits or financial resources. The availability of current revenues sets the upper limit of the ad budget.
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All You Can Afford Method
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The basic philosophy underlying this approach is that advertising is defensive. Advertising budgets are based on those of competitors or other members of the industry.
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Competitive Parity Method
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Here the advertising budget is argued for and presented on the basis of research findings. Advertising media are studied in terms of their productivity by the use of media reports and research studies.
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Research Approach Method
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Initially formulates the advertising goals and defines the tasks to accomplish these goals. Once this is done, management determines how much it will cost to accomplish each task and adds up the total.
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Task Approach Method
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involve aiming promotional efforts at distributors, retailers, and sales personnel to gain their cooperation in ordering, stocking, and accelerating the sales of a product
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push strategies
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involve aiming promotional efforts directly at customers to encourage them to ask the retailer for the product
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pull strategies
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Push or Pull:
A local rock band may visit local DJs seeking air play for their record, offer distributors special prices to carry the CD, and offer retailers special allowances for putting up posters or special counter displays. |
Push Strategy
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Push or Pull:
In the past few years, drug manufacturers have begun to advertise prescription drugs directly to consumers. Customers are encouraged to "Ask Your Doctor" about Viagra or Paxil. |
Pull Strategy
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3 Types of Promotions Aimed at Final Consumers or Users:
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1. Coupons
2. Aisle Displays 3. Samples |
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3 Types of Promotions Aimed at Middlemen:
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1. Price Deals
2. Promotion Allowances 3. Sales Contests |
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3 Types of Promotions Aimed at Company's Own Sales Force:
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1. Bonuses
2. Portfolios 3. Displays |
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3 Objectives of Sales Force:
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1. Information provision
2. Persuasion 3. After-sale service |
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6 Steps of Sales Relationship-Building Process:
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1. Prospecting
2. Planning the sales call 3. Presenting 4. Responding to objections 5. Obtaining commitment 6. Building a long-term relationship |
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Before 1930
Making sales Short-term seller needs Provider Taking orders, delivering goods |
Production
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1930 to 1960
Making sales Short-term seller needs Persuader Aggressively convincing buyers to buy products |
Sales
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1960 to 1990
Satisfying customer needs Short-term customer needs Problem solver Matching available offerings to buyer needs |
Marketing
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After 1990
Building relationships Long-term customer and seller needs Value creator Creating new alternatives, matching buyer needs with seller capabilities |
Partnering
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an estimate of how much of the company's output, either in dollars or in units, can be sold during a specified future period under a proposed marketing plan and under an assumed set of economic conditions
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sales forecast
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4 Purposes of a Sales Forecast:
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1. Establish sales quotas
2. Plan personal selling efforts 3. Budget selling expenses 4. Plan and coordinate production, logistics, inventories, and personnel |
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6 Commonly Used Sales Forecasting Methods:
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1. Jury of executive opinion
2. Sales force composite 3. Customer expectations 4. Time-series analysis 5. Correlation analysis 6. Other quantitative techniques |
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This combines and averages the views of top management representing marketing, production, finance, purchasing, and administration
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jury of executive opinion method
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This is similar to the first method in that it obtains the combined views of the sales force about the future outlook for sales. In some companies all salespeople, or district managers, submit estimates of the future sales in their territory or district.
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sales force composite method
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This approach involves asking customers or product users about the quantity they expect to purchase.
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customer expectations method
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This approach involves analyzing past sales data and the impact of factors that influence sales.
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time-series analysis
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This involves measuring the relationship between the dependent variable, sales, and one or more independent variables that can explain increases or decreases in sales volumes.
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correlation analysis
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Numerous statistical and mathematical techniques can be used to predict or estimate future sales. Two of the more important techniques are (a) growth functions, which are mathematical expressions specifying the relationship between demand and time; and (b) simulation models, in which a statistical model of the industry is developed and programmed to compute values for the key parameters of the model.
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other quantitative techniques
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Two Types of Compensation:
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1. Salary
2. Commission |
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refers to a specific amount of monetary compensation at an agreed rate for definite time periods
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salary
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usually monetary compensation provided for each unit of sales and expressed as a percentage of sales
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commission
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10 Major Types of Marketing Intermediaries:
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1. Agent
2. Broker 3. Distributor 4. Facilitating Agent 5. Jobber 6. Manufacturers' agent 7. Merchant middleman 8. Middleman 9. Retailer 10. Wholesaler |
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an independent business concern that operates as a link between producers and ultimate consumers or organizational buyers
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middleman
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a middleman who buys the goods outright and takes title to them
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merchant middleman
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a business unit that negotiates purchases, sales, or both but does not take title to the goods in which it deals
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agent
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a merchant establishment operated by a concern that is primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods (usually in smaller quantities) to retailers or to organizational buyers
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wholesaler
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a merchant middleman who is engaged primarily in selling to ultimate consumers
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retailer
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a middleman who serves as a go-between for the buyer or seller. He or she assumes no title risks, does not usually have physical custody of products, and is not looked upon as a permanent representative of either the buyer or the seller
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broker
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an agent who generally operates on an extended contractual basis, often sells within an exclusive territory, handles noncompeting but related lines of goods, and possesses limited authority with regard to prices and terms of sale
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manufacturers' agent
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a wholesale middleman especially in lines where selective or exclusive distribution is common at the wholesaler level in which the manufacturer expects strong promotional support
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distributor
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a middleman who buys from manufacturers and sells to retailers
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jobber
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a business firm that assists in the performance of distribution tasks other than buying, selling, and transferring title
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facilitating agent
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5 Different Channels of Distribution:
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1. Agent
2. Consumers 3. Manufacturer 4. Retailers 5. Wholesaler |
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T/F?
When more indirect channels are used, the manufacturer must surrender some control over the marketing of the firm's product. |
True
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Type of distribution method where the manufacturer attempts to gain exposure through as many wholesalers and retailers as possible
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Intensive Distribution
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Type of distribution method where the manufacturer limits the use of intermediaries to the ones believed to be the best available in a geographic area
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Selective Distribution
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Type of distribution method where the manufacturer severely limits distribution, and intermediaries are provided exclusive rights within a particular territory
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Exclusive Distribution
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What type of goods are best for Intensive Distribution?
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Convenience goods
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What three types of goods are best for Selective Distribution?
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Appliances, home furnishings, and better clothing
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What is a good example of a business that uses exclusive distribution?
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Retail paint stores
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3 Types of Vertical Marketing Systems:
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1. Administered Systems
2. Contractual Systems 3. Corporate Systems |
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Type of vertical marketing system that is most similar to conventional channels; However, in these systems there is a higher degree of interorganizational planning and management than in the conventional channel
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Administered Systems
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Type of vertical marketing system that involves independent production and distribution companies entering into formal contracts to perform designated marketing functions
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Contractual Systems
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Type of vertical marketing system that involves single ownership of two or more levels of a channel
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Corporate Systems
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5 Types of Nonstore Retailing:
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1. Catalogs and Direct Mail
2. Vending Machines 3. Television Home Shopping 4. Direct Sales 5. Electronic Exchanges and Multichannel Marketing |
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The advantages of this type of nonstore retailing for marketers are that consumers can be targeted effectively and reached in their homes or at work, overhead costs are decreased, and assortments of specialty merchandise can be presented with attractive pictures and in-depth descriptions of features and benefits.
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catalogs and direct mail
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Type of nonstore retailing that allows better visual display than catalogs, potential customers must be watching at the time the merchandise is offered
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television home shopping
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Type of nonstore retailing where salespeople can demonstrate products effectively and provide detailed feature and benefit information
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direct sales
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Type of nonstore retailing that provides customers with a wealth of product information and large product assortments that are readily available
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electronic exchanges and multichannel marketing
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measure of consumers' price sensitivity, which is estimated by dividing relative changes in the quantity sold by the relative changes in price
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price elasticity
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2 Methods for Estimating Price Elasticity:
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1. Historical Data
2. Sampling a group of consumers from the target market and polling them concerning various price/quantity relationships |
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4 Objectives of Pricing:
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1. Achieve a target return on investment
2. Stabilization of price and margin 3. Achieve a target market share 4. Meet or prevent competition |
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When pricing, what three factors should you consider?
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1. Cost
2. Competition 3. Value to the customer |
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Two Types of Strategies for Pricing and Product Life Cycle:
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1. Skimming policy
2. Penetration policy |
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policy in which the seller charges a relatively high price on a new product. Generally, this policy is used when the firm has a temporary monopoly and when demand for the product is price inelastic
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skimming policy
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policy in which the seller charges a relatively low price on a new product. Generally, this policy is used when the firm expects competition to move in rapidly and when demand for the product is, at least in the short run, price elastic.
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penetration policy
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6 Important Characteristics of Services:
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1. Intangibility
2. Inseparability 3. Perishability and Fluctuating Demand 4. Client Relationship 5. Customer Effort 6. Uniformity |
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Goods or Services?
The customer owns only memories, outcomes, or feelings such as an airline flight, greater knowledge or styled hair |
Service
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Goods or Services?
Often cannot be separated from the person providing them. They are often produced and consumed at the same time |
Service
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Goods or Services?
Can be used only at the time they are offered. They cannot be inventoried, stored, or transported. |
Service
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Goods or Services?
Often involve a long-term personal relationship between buyer and seller. |
Service
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Goods or Services?
Customers are often heavily involved in the production. |
Service
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Goods or Services?
Because of the inseparability and high involvement on the part of the buyer, each may be unique, with the quality likely to vary. |
Service
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Goods or Services?
The customer owns objects that can be used, resold, or given to others. |
Good
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Goods or Services?
Are usually produced and sold by different people. |
Good
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Goods or Services?
Can be placed in inventory for use at another time. |
Good
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Goods or Services?
Often involve an impersonal short-term relationship although in many instances relationship strength and duration are increasing. |
Good
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Goods or Services?
Customer's involvement may be limited to buying the completed product and using it. |
Good
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Goods or Services?
Variations in quality and variance from standards can be corrected before customers purchase products. |
Good
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T/F?
Most products are a mixture of goods and services. |
True
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4 Different Gaps in Providing Quality Services:
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1. Between consumer expectations and management perceptions of consumer expectations
2. Between management perceptions of consumer expectations and the firm's service quality specifications 3. Between service quality specifications and actual service quality 4. Between actual service delivery and external communications about the service |
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5 Determinants of Service Quality:
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1. Tangibles
2. Reliability 3. Responsiveness 4. Assurance 5. Empathy |
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include the physical evidence of the service
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tangibles
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involves the consistency and dependability of the service performance
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reliability
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concerns the willingness or readiness of employees or professionals to provide service
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responsiveness
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refers to the knowledge and competence of service providers and the ability to convey trust and confidence
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assurance
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refers to the service provider's efforts to understand the customer's needs and then to provide, as best as possible, individualized service delivery
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empathy
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5 Critical Components of Internal Marketing:
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1. Careful selection process in hiring front-line employees
2. Clear, concrete message 3. Significant modeling by managers 4. Energetic follow-through process 5. Emphasis on teaching employees to have good attitudes |
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5 Problems with Entering Foreign Markets:
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1. Cultural Misunderstanding
2. Political Uncertainty 3. Import Restrictions 4. Exchange Controls and Ownership Restrictions 5. Economic Conditions |
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pursues different strategies in each of its foreign markets
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multidomestic company
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views the world as one market and pits its resources against the competition in an integrated fashion
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global company
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T/F?
Manufacturers can become more directly involved and, hence, have greater control over distribution, when they select agents and distributors located in foreign markets. |
True
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T/F?
The channel arrangement that enables manufacturers to exercise a great deal of control is where the manufacturer sells directly to organizational buyers or ultimate consumers. |
True
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Of the 3 different ways to analyze Ratio Analysis, which one is the best?
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Trend Analysis
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3 Different Types of Financial Analysis:
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1. Break-Even Analysis
2. Net Present Value Analysis 3. Ratio Analysis |
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that level of sales in either units or sales dollars at which a firm covers all of its costs
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break-even point
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Total Fixed Costs / Contribution Margin
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Break-even Point
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FC / SP - VC
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Break-even Point
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FC / 1 - (VC/SP)
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Break-even Point
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(FC + P) / (SP - VC)
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Break-even Point with Profit
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(FC + P) / 1 - (VC/SP)
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Break-even Point with Profit
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4 Steps of Ratio Analysis:
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1. Choose the Appropriate Ratios
2. Compute the Ratios 3. Compare the Ratios 4. Check for Problems or Opportunities |
