Marketing Management Final Exam Review

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Marketing Communications:

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The ways a firm attempts to inform, persuade, and remind consumers either directly or indirectly about products/ brands they sell.

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Sales Promotion

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A variety of short-term incentives to encourage trial or purchase of a product or service.

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Communications Objectives:

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Category Need: Acceptance of product or service category
Brand Awareness: Recognize and recall brand
Brand Attitude: Ability to meet a currently relevant need
Purchase Intention: Take purchase action (ex. Order Now)

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Message Strategy + Message Source =

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Creative Strategy

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Source of Credibility:

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Expertise
Trustworthiness
Likability

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Principle of congruity

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Communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience.

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Stimulating Personal Communications Channels:

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1. Identify Influential
2. Create opinion leader
3. Use influential in communication
4. Develop ads with high “conversation value”
5. Use Viral Marketing

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Non-Personal Communication Channels:

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Media
Sales Promotion
Events and Experience
Public Relations

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Establishing a Budget:

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Affordable Objective and task
Percentage-of-Sales CompetitiveParity

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Factors in Setting Communications Mix:

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• Type of product market
• Consumer readiness to make a purchase
• Stage in the product life cycle
• Market rank

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Characteristics of Communication

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Advertising:
• Pervasiveness
• Amplified expressiveness
• Impersonality

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Characteuristics of Communication

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Sales Promotion:
• Communication
• Incentive
• Invitation

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C of C

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Public Relations & Publicity
• High credibility
• Ability to catch buyers off guard
• Dramatization

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C of C

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Events and Experience:
• Relevant
• Involving
• Implicit

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C of C

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Direct Marketing
• Customized
• Up-to-date
• Interactive

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C of C

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Personal Selling
• Personal interaction
• Cultivation
• Response

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5 M’s of Advertising:

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Mission Money Message Media Measurement

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Advertising Objectives:

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Informative Advertising Reminder Advertising
Persuasive Advertising Reinforcement Advertising

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Deciding on the Budget for Advertising:

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1. Stage in product life cycle: New product = large budgets to build awareness, established brands = lower budgets (ratio-to-sales approach).

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Deciding on the Budget for Advertising:

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2. Market share and consumer base: High market share = less advertising (percent of sales to maintain share). Low market share = large budget to build awareness

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Deciding on the Budget for Advertising:

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3. Competition and clutter: Lots of clutter = heavy advertising to be heard (whether its from competitive brands or not).

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Deciding on the Budget for Advertising:

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4. Advertising frequency: Number of repetitions needed to put brand’s message across to consumers.

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Deciding on the Budget for Advertising:

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5.Product substitutability: Brands in less-differentiated or commodity-like product classes (beer, soft drinks) require heavy advertising for their image.

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Deciding on Media:

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Step 1: Decide on reach, frequency, and impact
Step 2: Choose among media types
Step 3: Select specific media vehicles
Step 4: Decide on media timing
Step 5: Decide on geographical media allocation

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RFI:

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R – Reach: Number of people that will view within a period of time
F – Frequency: How often within a period of time
I – Impact: Quality of exposure

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Measure of Audience Size:

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• Circulation – medium carrying your ad
• Audience – people exposed to your ad
• Effective audience – people in your target audience exposed to your medium.
• Effective ad-exposed audience – people in your target audience exposed to your ad.

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Deciding on Media Timing/ Allocation Media Schedule Patterns:

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• Continuity – ads in a given period.
• Concentration – spending ad dollars in a single period (seasonal products).
• Flighting – advertising-hiatus-advertising.
• Pulsing – continuous low level of advertising with waves of heavier advertising.

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Deciding on Geographical media allocation:

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• National Coverage
• Provincial Coverage
• Large city vs. Rural
• English vs. French
• Guerilla
• Multi-cultural

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Sales Promotion Tactics:
Consumer-directed:

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• Samples
• Coupons
• Cash refund offers
• Price offs
• Premiums
• Prizes
• Patronage rewards
• Free trials
• Tie-in promotions
• Loyalty Programs

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Trade-directed:

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• Price offs
• Allowances
• Free goods
• Sales contests
• Spiffs
• Trade shows
• Specialty advertising

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Using Sales Promotions:

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1. Establish Objectives
2. Select Tools
3. Develop a Program
4. Pretest
5. Implement and Control
6. Evaluate Results

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Major Event Decisions:

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1. Choose Event Opportunities
2. Design Programs
3. Create Event
4. Measure Activities

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Event Objectives:

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• To identify with a particular target market or life style.
• To increase brand awareness.
• To create or reinforce consumer perceptions of key brand image associations.
• To enhance corporate image.
• To create experiences and evoke feelings.
• To express commitment to community.
• To entertain key clients or reward employees.

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Public Relation:

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• Press relations: Presenting positive news and information about organization.
• Product publicity: Sponsoring efforts to publicize specific products.
• Corporate communications: Promoting understanding of organization through internal and external communications.
• Lobbying: Dealing with legislators and government officials to promote or defeat legislation and regulation.
• Counseling: Advising management about public issues, and company positions and image during good and bad times.

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Marketing Public Relations (MPR):

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• Assist in product launches.
• Assist in repositioning mature products.
• Build interest in a product category.
• Influence specific target groups.
• Defend products.
• Build corporate image.

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Steps in Marketing PR:

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Establish objectives
Choose messages and vehicles
Implement and Evaluate

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Marketing Communications

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Direct Marketing: is the use of consumer-direct channels to reach and deliver goods and services to customers without marketing middlemen.
Personals Selling:
Interactive Marketing

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Steps in developing a direct-mail campaign:

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Step 1: Set objectives
Step 2: Identify target markets
Step 3: Define the offer elements
Step 4: Test the elements
Step 5: Measure results (and lifetime value)

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Offer Elements:

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Product  Offer  Medium  Distribution  Creative

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7 C’s of Effective Website Design:

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1. Context: Layout/ Design
2. Community: How site enables user-to-user communication.
3. Connection: Degree to which the site is linked to other sites.
4. Content: Text, pictures, sound, video.
5. Customization: Site’s ability to tailor itself to different users or personalize.
6. Communication: How the site enables site-to-user/ two-way communication.
7. Commerce: Site’s capabilities to enable commercial transactions.

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Types of Sales Representatives:

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Deliverer (Ex. Fuel Delivery Trucks)
Order Taker (inside = behind counter, outside = calling on store manager)
Missionary (Not permitted to take order, expected to build goodwill/ educate user)
Technician (Client company technical engineer)
Demand Creator (Ex. Advertising services)
Solution Vendor (Ex. Tech support)

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Sales Force Design:

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Objectives  Strategy  Structure  Size  Compensation

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Sales Force Management:

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Recruit  Train  Supervise  Motivate  Evaluate

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Steps in Effective Selling:

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1. Prospecting and qualifying
2. Pre-approach
3. Approach
4. Presentation and demonstration
5. Overcoming objections
6. Closing
7. Follow-up and maintenance

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Types of Rewards:

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Intrinsic Reward:
Sense of self-reward Ex. In a race: “Personal Best”
Extrinsic Reward:
Outside influences of achievement Ex. In a race: “Came in 2nd”
There is threat of public imagery failure if you do not succeed

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Buzz vs Viral Marketing:

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Buzz marketing generates excitement, creates publicity, and conveys new, relevant, brand-related information through unexpected or even outrageous means.
Viral Marketing is another form of word of mouth, or “word of mouse” that encourages consumers to pass along company developed products/ services in forms of audio, video, written or online information.

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Global Firm:

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A firm that operates in two or more countries and captures R&D, production, logistical, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.

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Major Decisions in International Marketing:

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Where to Go
What Markets to Enter
How To Enter
Marketing Program
Marketing Organization

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When to Restrict Internationalization:

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•Market entry and market control costs are high.
•Product and communication adaptation costs are high.
•Population, income size, and growth are high in the initial countries chosen.
•Dominant foreign firms can establish high barriers to entry.

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Price Choices:

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• Set a uniform price everywhere
• Set a market-based price in each country
• Set a cost-based price in each country

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Organizing Marketing Development:

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• Functionally
• Geographically
• Product or brand
• Market
• Matrix
• Corporate-divisional
• Global

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Types of Marketing Control:

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Annual Plan Control: Examines whether planned results are being achieved
Profitability Control: Examines where company is making/ losing money
Efficiency Control: Evaluate, improve spending efficiency & impact of marketing cost
Strategic Control: Evaluate if the company pursuing best opportunities with respect to markets, products, and channels.