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78 Cards in this Set
- Front
- Back
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Promotional Mix |
Advertising Public relations personal selling sales promotions |
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Promotion |
function of informing, persuading and influencing the consumers purchase decision |
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objectives of promotion |
create awareness and provide information Stimulate demand Primary-desire of a product category Selective - desire for a specific brand t differentiation permits flexibility, value is not important Differentiate the product differentiation permits flexibility, value is not importantAccentuate the product valuePromote and Stabilize Sales Accentuate the product value Promote and Stabilize Sales
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Marketing communication |
transmisison form a sender to a receiver of a message dealing with the buyer - seller relationship |
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Integrated marketing comminucation |
coordination of all promotional activities to produce a unified customer - focus promotional message - SINGLE VOICE |
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Promotion Mix |
Advertising Personal Selling Sales Promotion Public Relations |
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Advertising |
Paid, nonpersonal communication through various media by a buisness firm, not - for -profit organization, or individual identified in the message with the hope of informing or persuading members of a particular audience |
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Personal selling |
Interpersonal promotional process involved a seller's person - to person presentation to a prospective buyer
relationship marketing |
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Sales promotion - Trade and consumer |
quick respoce: displays, trade shows. coupons, premiums, contests, product demontrations, and variouse nonrecurent selling efforts |
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Public relations |
Firms's communication and relationships with its various publics. Evaluates and monitors attitudes
Manegment function involving the evaluation of public attitudes. - press, employees, libying, crisis
Publicity - not directly paid, nonpersonal communication through various media by a sponsor. News item |
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communication |
the process by which we exchange or share meanings through a common set of symbols |
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Marketing Comunication |
Interpersonal - word of mouth
mass commuication - through mass media |
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Promotion and the communication process |
Source Encoding precess medium of transmision decoding process receiver or audience |
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AIDA concept |
Attention Interest Desire Action |
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Global difficulties with communication |
language barier |
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characteristics of advertising |
communication mode - indirect and non personal feedback speed - delayed messafe flow direction - one way sponsor identification - yes reaching large audience - fast message flexibility - same messge to all audiences |
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Characteristics of public relations |
Communication mode - usually indirect and non personal Communication control - moderate to low feedback amount - little message flow direction - one way message contnet control - no sposor indetification - no reaching large audiences - usually fast message flexibility - usually no direct control |
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c haracteristics of sales promotion |
communication mode - indirect and non personal commnunication control - moderate to low feedback amount - little to moderate feedback speed - varies message flow direction - mostly one way message control content - yes sponsor identifiacation - yes reaching large audience - fast message flexibility - same message to varied target |
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characteristincs of personal selling |
communication mode- - direct and face to face communication control - high feedback amount - much feedback speed - immerdiate message flow direction - two way message content control - yes sponsor identifiacation - yes reaching large audience - slow message flexibility- Tailored to prospect |
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PLC |
product life cycle
Introduction - publicity; advertising Growth - Selling ; promotions Maturity - selling Decline - advertising; promotion, selling |
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Push strategy |
manufactuerer go to wholesalers, flow of promotions, then to retailer and finally consumer |
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Pull strategy |
Manufacturer go to the consumer, then consumer goes to retailer that reaches out to wholesaler and then to manufacturer |
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Functions of Advertising |
Economic importance Increase the number of units sold and allows lower sales prices
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The Nature and types of advertising |
Defines: paid, non-personal, mass-media
Functions of Advertising: social, buisness, economic |
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Objectives of advertising |
Inform: to develop initail demand Persuade: increase demand for an existing product Remind: to reinforce previouse promotions |
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Advertising and Market Share |
New Brands spend proportianatley more for advertising than old ones
A certain level of exposure os needed to affect purchase habits
Beyond a certain level, diminishing returns set in
Advertising response function |
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Advertising can |
Change negative attitude to positive reinforce positive attitude affect how consumers reank brand attributes |
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Advertising and the consumer |
Advertising may hcange a consumer's atitude toward a product. Resistance as well
Advertising can affect consumer ranking of brand attributes. PERSUASIVE |
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Major types of Advertising |
Institutional Adversiting - company's image Enhance corporation identity Advocacy advertising Product Advertising - benefits of a specific product Pioneering Competitve - just about your brand Comparative - you vs another brand |
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Advertising Campaign |
A series of related asvertising focusing on a common theme, slogan, and set of advertising appeals |
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Steps in creating an advertising campaign |
Determine the advertising objectives Make creative decisions Make media decisions Evaluate the campaign |
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Setting Objectives DAGMAR approach |
Defining Ad Goals Measured Advertising Results Define Target Audience Define desired % change Define the time frame for change |
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Creative Decisions |
Identify product denefits devolope and evaluate advertising appeals execute the message evaluate the campaign's effectiveness |
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Advertising appeal |
Reasons for a person to buy a product Desirable, exc;usive, and belivable advertising appeal selected as the theme for a campaign |
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Print advertising |
Copy headline subheading body copy slogan |
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Persona; Selling |
is the interpersonal part of the promotional mix and can include: Face to face Telephone video or web |
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The Nature of Personal Selling |
Salespeople are an affective link between thecompany and its customers to produce customer value and company profit by: Representing the comapnt to customers representing customers to the company working closly with marketing |
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Managing the slaes force |
slaes force management is teh analysis, planing, implementation, and control of sales force activities Sales force size Salespeople are one of the companys most productive and expensive assets increases in sales force size can increase sales and costs |
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Sales Force |
Outside Salespeople - call on customers in the field Inside salespeople - conduct business from their offices and often provide support for the outside salespeople Team selling is used to service large, complex acounts |
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Salesperson Compensation |
Fixed Amount Expeses Variable amount fringe benefits |
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Supervising and motivating slaespeople |
The goal of supervision is to help salespeople work smart by doing the right thngs in the right way The Goal of motivation isto encourage salespeople to work hard and energetically toward sales force goals |
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Salespeole spend their time |
10% active selling |
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Major tools to support salespeople |
Training Sales Meeting Live sales promotions servicing acounts |
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Motivating Salespeople |
Sales moral and performance can be increased through: Organizational climate Sales Quotas Positive incentives |
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Sales Process |
Prospecting - indentifies qualified potential customers through referrals from: customers Suppliers Dealers Internet |
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Sales Process (2) |
Qualifying is identifying good customers and screening out poor ones by looking at: Financail ability Volume of buisness Needs locations Growth Potential |
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Price |
the exchange value of a good or service Some unit of calue given up for something of value |
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Price Competition |
Slippery slope. company 1 lowers price then company 2 lowers price then 1 lower price, only one winner |
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Nonprice Competition |
Emphasize value and thereore increase quality |
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Importnace of price to marketers |
Manage demand adapt to competitve environment psychology of the consumer |
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Nature of Price |
Profit = total revenue - total cost Profit = (price * quantity sold) - total cost |
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Steps in setting the right price |
Establishing pricing objectives Estimate demad, cost, and profit Choose a price strategy fine tune with pricing tactics Results lead to the right price |
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Pricing Objective Profitability |
Profit Maximization Target-return objectives: achieving a specific return on either sales or investment |
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Pricing Objective - Volume |
Sales Maximization Market share objectives: for controlling a portion of the market |
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Meeting Competition |
Value Pricing |
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Pricing Objectives Prestige |
Set at a relatively high level |
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Four Market Structures - Pure competition |
Market structure characterized by homogeneous products in which there are so many buyers and sellers that none has a significant influence on price |
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Four Market structure - Monopolistic Competition |
Market structure incvolving heterogeneous product and product differentitaion among competing suppliers, allowing the marketer some degree of control over price |
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Four Market Structure - Oligopoly |
Market structure involves relatively few sellers and barriers to new competitors due to high start - up costs |
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Four Market structures - monopoly |
Market structure involving only one seller of a good or service for which no close substitutions exist Governemt regulated monopolies do exist in certain areas , such as public utilities |
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Determiation of Demand |
price goes down quantity increases also Shifting demand curve due to recesion ect. |
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Concept of Elasticity in Pricing strategy |
Elasticity: measure of consumer responsiveness to changes in price. Price Elasticity of Demand = % change in quantity demand/ % change in price |
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Absoulute elasticity |
elasticity > 1 then demand in ELASTIC elasticity < 1 then demand in INELASTIC |
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Determinants of Elasticity |
Availability of substitutes Luxury ornecessity portion of budget time |
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Determing of Demand - Elastic |
demand is very sensitive to price increases almost a straight line when graphed |
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Yield Management |
pricing strategy designed to mazimize sales in situations such as airfares, lodging, auto rentals, and theater tickets where costs are fixed |
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Breakeven point |
= fixed cost / (price-variable cost) efective tool in assessing the sles required for covering costs and acheiving specified levels of profit |
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Pricing Strategies |
Skimming the use of a high price relative to competitve offering |
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Pricing strategies |
Penetration the use of relatively low price as compared with competitive offerings |
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Pricing strategies |
occurs when the sellers consider the psychology of pricing and not simply the economics Reference pricing are prices that buyers carry in their minds and refer to when looking at a given product Noting current prices Remembering past prices Assessing the buying situation |
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Fine - tuning the tactics |
List prices : established prices normally quoted to potential buyers Market price: price that an intermediary or final customer pays for a product after subtracting any discounts, rebates, or allowances from the list price |
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Reductions from list price |
Cash discount: in return for prompt payment of a bill Trade discount: payment to a channel member or buyer for performing marketing functions Quantity: buying in large volume |
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Geographical pricing |
Free on board pricing: the goods are delivered to the carrier and the title and resposibility passes to the customer Uniformed-delivery pricing: the company charges the same price plus freight to all customers, regardless of location Zone pricing: that he company sets up two or more zones where customers within a given zone pay a single total price Basing-point pricing: charges all customers the freight cost associated from that city to the customer lacation, regardless of the city from which the goods are actually shipped |
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Freight absorption pricing |
means to the seller absorbs all or part of the actual freight charge as an incentive to attract business in competitive markets |
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Dynamic pricing |
when pricing are adjusted continually to meet the characteristics and needs of the individual customer and situations. high prices durring football games |
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Other pricing tactics |
Price Lining: seceral line items at specific price points Leader Pricing: sell product at near or slightly above cost Bait pricing: lure customers through false or misleading price advertising Odd-even Pricing: off - number prices imply bargin. Even number prices inply quality Price Bundling: combining two or more products in a single package |
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Public policy and pricing |
Price fixing: sellers must set prices without talking to competitiors Predatory pricing: seling below cost with the intentions of punishing a competitor or gaining higher long term profits by putting competitors out of buisness |
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Robinson - Patman act |
prevents unfair pricing discrimination by ensuring that the seller offers the same price terms to customers at a given level of trade Price discrimination is allowed: if the seller can prove that costs differ when seling to different retailers if the seller manufactures different gualities ofthe same product for different retailers |
