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Marketing Exam 3 - Coggle Diagram
Marketing Exam 3
Chapters 16 & 18
Advertising
Definition: Paid form of non-personal communication about an organization, good, service, person, or idea by an identified sponsor
Steps in Ad Campaign
Identify Target Audience
Advertising Objectives
Set Advertising Budget
Design Message
Evaluate and Select Right Media
Schedule Ad
Execute the Campaign
Assess the Campaign
Types of Advertising
Product Advertising: Focus on selling particular good or service
Institutional Advertising
Build goodwill for organization
Advocacy advertising - state position of company on issue
Pioneering institutional - what a company is, what it does, where it is locate
Competitive institutional - promote advantage of product class
Reminder institutional - bring company's name to attention of target market again
Comparative - In comparison to another brand's product
Guerilla Marketing/ Alternative Media
Low-cost unconventional means to convey message and break clutter of traditional media
Types
Advergaming
Advertainment
Ads on non-traditional objects
Better enegagement
Builds relationship with customers
Appeals
Informational: Offer factual information
Emotional: satisfy emotional desires - fear/safety, humor, happiness, love/sex, comfort, nostalgia
Testing
Pre-testing
During creation of ad campaign to asses techniques
Are elements working together?
Are elements decoded as intended?
Post-testing
Does it accomplish the goal? (not easy to measure)
Conducting research on consumer responses
Unaided recall
Aided recall
Attitude tets
Inquiry tests
Sales tests
Evaluating and selecting right media
Approach designed to select best communication media
Factors considered
Target market profile
People reached by different vehicles
Advertising patterns of competitors
Capability of medium to convey desired information
Compatibility of product with editorial content
Considers advantages and disadvantages of various types of media
Media scheduling
Types
Continuous - runs steadily throughout the year
Flighting schedule - runs in spurts throughout the year, heavy followed by light
Pulse - combines continuous and flighting, steady base level with surges
Metrics
Reach - number of different people or households reached as percentage of market
Frequency - Average number of times a person in the target audience is exposed to a message or advertisement
Gross rating points - Reach * Frequency
Public Relations
Communication management that seeks to influence feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products
Purpose
Evaluates public attitudes
Identifies issues of public concern
Executes programs to gain public acceptance
Tools
News
General
New Product
News/Press Conferences
Media relations
Sponsorships
Events
Issues/Causes
Lobbying - attempt to influence votes of legislative body
Consumer education - provide education information beyond the goods/services you offer
Crisis management - needs to start before a crisis actually happens
Publicity
Non-personal, indirectly paid presentation of an organization, product, person, or idea
Costs money, even if media attention propagates afterwards
Sales promotions
Short-term inducement of value offered to arouse interest in buying a product
Marketing communication activities, other than advertising, personal, selling, and public relations.
Short-term incentive motivates a purchase
Target Audience
Consumers
Coupons
Samples
Contests/Sweepstakes
Premiums
Rebates
POP promotions
Product Placement
Trade/Channel
Allowances and Discounts
Incentive Programs
Cooperative Advertising
Push money
Free merchandise
Training distributors' salesforces
Selling
Personal selling
Two-way flow of communication between buyer and seller designed to influence a person's or group's purchase decision
Face-to-face, video conferencing, phone, or Internet
Critical for many push strategies, B2B products, expensive and complex products, and products that require personal touch
Comparison to other methods
Critical link between customers and firm
Rich source of market information
Most flexible
Most expensive
Most successful at gaining sale and increasing customer satisfaction
Can take some responsibilities of channel parteners
Build relationships
Provide information and advice
Steps
Follow Up - Check with customer for feedback and offer support
Close the Sale - gain commitment of purchase, but realize when not to push to keep relationship
Presentation - assess needs, customize, be prepared for FAQ, listen, and ask questions
Approach - first contact, gain attention, stimulate interest, transition to presentation
Pre-approach - further research and develop plan
Prospecting - develop list of leads and potential
Successful Salesperson
Motivation
Dependability
Ethical
Customer & Product Knowledge
Interpersonal communication
Flexible
Enthusiasm
Chapter 12
Definitions
Supply Chain: The various firms, both internal and external to the company, involved in performing the activities required to create and deliver the product to consumers or industrial users
Logistics: The activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Marketing Channel/Channel of Distribution: A set of individuals and firms involved in the process of making a product available for use or consumption. Part of the supply chain from producer to business user or consumer
Supply Chain Management
Integrates and coordinates all activities across firms in a supply chain for the purpose of creating and delivering products that provide value to customers
Benefit: Enhancing customer value becomes beneficial as customers gain power in the marketplace
Discrepancies
Assortment
Strategy: Channel members can provide a variety of products in one location
Definition: Difference between array of products a producer makes and consumer wants to buy
Quantity
Definition
Difference between amount of product a producer makes and the amount consumers want to buy
Strategy
Channel members can buy in bulk and sell smaller quantities to many different customers
Contact Efficiency: Every supplier and customer only needs one point of contact with the distributor
Direct vs Indirect
Direct: Straight from supplier to consumer
Indirect: Passes through distributor or retailer first
Channel Members
Producer
Consumer
Intermediaries
Retailer
For customer
Convenient/Time and place utility
Assortment - everything at one place
Could adapt product or service (tailoring a suit)
Can return product or have warranty
Could have knowledge about product that would help sell them
For producer
Give information on how competitors are pricing
Know who needs the products
Know how to reach and promote to local customers
Can relay information of customer needs back
Wholesaler
Storing
Assorting
Sorting
Transporting
Risk-taking: assume risks related to ownership
Marketing information and research
Agents/Brokers
Expertise in negotiations
Prospecting and qualifying
Feedback to the company
Utility
Time Utility - provide products when customers are ready to buy them
Place utility - provide products where customers want to purchase them
Form utility - enhance good or service to make it more appealing to buyers
Possession Utility - efforts by intermediaries to help buyers take possession of a good or service so they can enjoy the product (financing & delviery)
Distribution Intensity
Levels
Exclusive: only one retailer in a specific area (Ferrari)
Selective: Relies in few selected retail customers in a territory (BMW)
Intensive: Designed to place products in as many outlets as possible
Decision Factors
Company
Customers
Channels
Constraints
Competition
Channel Management
Channel control is important - manufacturers want the distribution channels to do what it wants
Channel Captain is dominant firm that coordinates, directs, and supports other channel members
Types of Channel Influence
Legitimate - legal authority, based on contracts
Expertise - greater knowledge
Identification - Firms want to be associated with them
Reward - ability to give and take away
Channel Relationships
Independent/Conventional: members work indepedently of each other
Horizontal: members at the same level work together
Vertical
Administered: No common ownerships or contractual relationships, dominant partner controls
Contractual: Independent firms integrate efforts contractually to obtain greater functional economies with each other (wholesaler-sponsored voluntary chains, retail coops, and franchising
Corporate: Parent company owns multiple levels of channel and has full control
Multiple channel
Dual distribution: Using multiple channels to get products to end users
Multichannel/omnichannel: blending of channels tor reinforce each other, building relationships with both (i.e. online and traditional)
Chapter 17
Primary motivations for mobile app use
Me Time - relaxation, entertainment
Socializing
Shopping
Accomplishing - managing finances, health and productivity
Preparation - plan for upcoming activities
Discovery - seeking news and info
Self expression - hobbies and interests
Actions when starting a social media campaign
Listen - social media is a rich source for research
Analyze
Do
Identify stategy
Identify target audience
Develop budget
Develop campaign
Implement campagin
Monitor and change
Objectives
Listen and learn - monitor what is being said about the brand
Build relationships and awareness - open dialogues with stakeholders and answer questions candidly
Promote products and services - get customers talking about them
Manage reputation - respond to comments and criticism. Participate in discussions
Improve customer service - seek out displease customers and engage them directly to solve issues
Risks
Data breaches
Fake tweets/ Hacks
Permanence of content from accidents or rogue agents
High visibility of negative feedback (stock price implications)
Social Media Marketing Program
Portion of company's integrated marketing communications effort designed to create and deliver online media content that attracts viewer attention and encourages readers to share it with their social network
Consumers become evangelists who share with friends
Creates customer engagement
Selection
Look at demographics of social media
LinkedIn is more male
Facebook is more female
Recent Activity
Number of users - measures unique audience
Market Share of Visits - Measures how much the site is actually used
Pinterest has low users, but high market share
LinkedIn has high users, but very low market share
Social media content
Educational
Inspirational
Interactive
Connecting
Promotional
Newsworthy
Entertaining
Measuring Results
Measuring Inputs or Costs
Cost per thousand (ad loads)
Used by advertisers who want to build awareness
Advantage - Simple to use
Disadvantage - doesn't always lead to sales
Provided by small websites that sell ads directly
Cost per click
Used by most websites
Used by advertisers who want to pay for success but cannot track purchase
Advantage - only pay for visitors who express interest
Ads may not display if they are a poor fit for viewing audience
Cost per action (purchase)
Usually through third parties like Google AdSense
Used sophisticated advertisers who want to pay for success
Advantage - only pay for what works
Disadvantage - may not display to poor fit and more expensive
Measuring Outputs or Revenues
Users/members - Users registered on website
Fans - number of people opted to receive brand's messages
Share of voice - percentage of all social media chatter related to product category or topic
Page views - number of times a page has been viewed
Unique visitors - total number of unique visitiors
Visitors - number of visitors in a given time period
Average page views per visitor - page views per unique visiors
Interaction rate - number of people who interact (like, comment) with post
Click-through rate (CTR) - percentage of recipients who click link on page to visit specific site
Fan source - where a social network comes from - with fans coming from a friend more valuable than those from an ad
Social media provides a lot of trackable information that traditional media does not
Chapter 15
Promotion
Any communication by marketers that informs, persuades, reminds, and builds relationships with customers to influence an opinion or elicit a response
Promotion Mix
Advertising
Strength - Efficient means for reaching large numbers of people
Weakness - High absolute cost and difficult to receive feedback
Mass
Sales Promotion
Strength - Effective at changing short run behavior, flexible
Weakness - Easily abused, can lead to promotion wars, easily duplicated
Mass
Public Relations
Strength - Often most credible in the consumer's mind
Weakness - difficult to get media cooperation
Mass
Personal Selling
Strength - Immediate feedback, very persuasive, can select audience, can give complex information
Weakness - Extremely expensive per exposure, messages may differ between salespeople
Customized
Direct Marketing
Strength - Messages can be prepared quickly and facilitates relationship with customer
Weakness - Declining customer response & Database management is expensive
Customized
Control continuum
Word of Mouth - Lowest Control
Public Relations - Low Control
Personal Selling - Regular Control
Sales Promotion - High Control
Advertising - Highest Control
Communcation Process
Steps
Encoding - What you say and how, Noise
Communication Channel - Where you say it, Noise
Decoding - How the Receiver Interprets it, Noise
Receiver - Feedback to Source
Source - Feedback from Receiver
Goals
Shift from one-way to customer controlled- customized, many-to-many
Consumer-generated media makes it easier to connect with each other
Paid media such as advertising, personal selling, direct marketing, sales promotions
Earned media - PR/publicity model
Owned media - brands publish own content to maximize brand value
Integrated Marketing Communications
Designing marketing communications programs that coordinate all promotional activities to ensure a consistent message at every contact point where a company meets the conusmer
Plan for optimal use of the elements of promotion which is customer-focused
Characteristics
Begins with customer
Creates single unified voice
Seeks to develop relationships
Involves 2-way coomuncation
Generates continuous stream of communication
Measures results based on actual feedback
Developing IMC
Planning
Identify target audience
Specify objectives
Set budget
Select right tools
Design promotion
Schedule promotion
Implementation
Pretest promotion
Carry out promotion
Evaluation
Posttest promotion
Make needed changes
Direct Marketing
Uses direct communication with consumer to generate response such as order, request for further information, or visit to retail site
Face-to-face, direct mail, catalogs, telephone, direct response advertising
Allows customers comfort and privacy
Fastest growing form of promotion as customer information databases are more available
Great tool for relationship management using data
Concerns
Tracking - What is being tracked? Adblockers have emerged
Ethical - Companies need to think about what they should be collecting, not just can