Marketing Exam 3

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

Chapters 16 & 18

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

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

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

Discrepancies

Assortment

Quantity

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

Definition

Strategy

Difference between amount of product a producer makes and the amount consumers want to buy

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

For producer

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

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

Decision Factors

Company

Customers

Channels

Constraints

Competition

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

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)

Advertising

Definition: Paid form of non-personal communication about an organization, good, service, person, or idea by an identified sponsor

Steps in Ad Campaign

  1. Identify Target Audience
  1. Advertising Objectives
  1. Set Advertising Budget
  1. Design Message
  1. Evaluate and Select Right Media
  1. Schedule Ad
  1. Execute the Campaign
  1. 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

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

Considers advantages and disadvantages of various types of media

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

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

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

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

Sales promotions

Non-personal, indirectly paid presentation of an organization, product, person, or idea

Costs money, even if media attention propagates afterwards

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 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

Sales Promotion

Public Relations

Personal Selling

Direct Marketing

Control continuum

Word of Mouth - Lowest Control

Public Relations - Low Control

Personal Selling - Regular Control

Sales Promotion - High Control

Advertising - Highest Control

Strength - Efficient means for reaching large numbers of people

Weakness - High absolute cost and difficult to receive feedback

Strength - Effective at changing short run behavior, flexible

Weakness - Easily abused, can lead to promotion wars, easily duplicated

Strength - Often most credible in the consumer's mind

Weakness - difficult to get media cooperation

Strength - Immediate feedback, very persuasive, can select audience, can give complex information

Weakness - Extremely expensive per exposure, messages may differ between salespeople

Strength - Messages can be prepared quickly and facilitates relationship with customer

Weakness - Declining customer response & Database management is expensive

Customized

Customized

Mass

Mass

Mass

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

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

  1. Identify stategy
  1. Identify target audience
  1. Develop budget
  1. Develop campaign
  1. Implement campagin
  1. 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

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

Provided by small websites that sell ads directly

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