final for principles of marketing --- part 4

reasons for online shopping

• convenience

• choice

• customisation

• communication

• cost

• control

utility

• time

• place

• form

• possession

customer experience

the sum total of the interactions that a customer has with a company’s website from the initial look through the entire purchase process

webrooming

the consumer behavior of researching products online to compare features, prices, and reviews before visiting a physical store to make the final purchase

showrooming

the practice of visiting a physical store to examine products in person before purchasing them for a lower price online

communication

the process of conveying a message to others

source

the person or organisation with information to convey

message

the information

channel of communication

the means of communication

receiver

consumers who read, hear, or see the message

encoding

the process by which the sender transforms an idea into symbols

decoding

the reverse process— the receiver transforms the symbols into an idea

the promotional mix

the blend of promotion tools that the company uses to communicate customer value and build customer relationships

advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

sales promotion

a short-term incentive to encourage the purchase or sale of a product or service

personal selling

personal interaction by the firm’s sale force for the purpose of engaging customers, making sales, and building customer relationships

public relations

building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

direct & digital marketing

engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

integrated marketing communications

involves carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organisation and its products

push promotion strategy

• relies on personal selling to members of the marketing channel

  • intermediaries __ products to consumers

pull promotion strategy

• generate consumer demand for a product

  • primary means… advertising and sales promotion to the consumer

advertising objective

a specific communication task to be accomplished with a specific target audience during a specific time

informative (pioneering) ads

advertising that is carried out in a factual manner. relies solely on the goods or services strengths and features

• introducing a new product category to build primary demand

persuasive ads

advertising that attempts to convince a consumer to purchase a product or service by appealing to their needs and desires. uses emotional responses instead of facts

• to build selective demand in the face of increased competition

comparative ads

advertising that specifically mentions a particular product, or service by name for the express purpose of showing why competitors are inferior

• when a company directly compares its brand with other brands

reminder

advertising that a product is available as opposed to informing or persuading; typically associated with products in the mature stage

• help maintain customer relationships and keep customers thinking about the product

advertising appropriation

total amount of money to advertising for a specific time period

developing the budget

• affordable

• competitive parity— set the promotion budget to match competitors’ outlays

• percentage of sales

• objective & task

advertising platform

the basic issues or selling points the advertiser wishes to include in the campaign

• message and brand content

• media

message strategy statement

• the general message that will be communicated to consumers

• outline of benefits and positioning points

copy

verbal or written portion of the ad; may include headlines, sub-headers, body copy, and signature

storyboard

blueprint that combines copy and visual material to show the sequence of major scenes in a commerical

artwork

consists of illustrations and layout

appeal

the approach used to attract the attention of consumers and to influence their feelings toward the product or service

information/rational appeals

• feature

• competitive advantage

• favorable price

• news

• product/service popularity

message execution styles

• slice of life

• lifestyle

• fantasy

• mood or image

• scientific evidence

• technical expertise

• personality symbol

• musical

• testimonial or endorsement

madison & vine

the concept of advertainment

media plan

a plan that specifies the media vehicles to be used and the schedule for running advertisements

reach

a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time

frequency

a measure of how many times the average person in the target market is exposed to the message

impact

the qualitative value of a message exposure through a given medium

engagement

a measure of audience involvement such as ratings, readership, listenership, and click-through rates, used for TV, radio and social media

selecting specific media vehicles

involves decisions about presenting the message effectively and efficiently to the target customer and must consider the message’s impact, effectiveness, and cost

cost comparison indicator

a means of comparing the cost of advertising vehicles in a specific medium in relation to the number of people reached

media timing

• seasonality

• pattern

  • continuous

  • flighting

  • pulsing

public relations

communication efforts used to create and maintain favorable relations between an organisation and its various publics

public

any group that has an actual or potential interest in or impact on an organisation’s ability to achieve its objectives

press relations or press agency

Creating and placing newsworthy information in the news media to attract attention

Product & brand publicity

publicizing specific products and brands

Public affairs

Building and maintaining national or local community relationships

Lobbying

Building and maintaining relations with legislators and government officials to influence legislation and regulation

Investor relations

Maintaining relationships with shareholders and others in the financial community

Development

working with donors or members of non-profit organizations to gain financial or volunteer support

Publicity

A news story type of communication about an organization and/or its products transmitted through a mass medium at no charge

handling negative publicity

• be proactive

• be prepared

• be open

direct marketing

engaging directly with carefully targeted individual consumers and customer communities to obtain an immediate response and build lasting customer relationships

social media

online media where users submit comments, photos, and videos— often accompanied by a feedback process to identify popular topics

sales promotion

a short-term inducement of value offered in order to arose interest in buying a product or service

consumer promotion

sales promotion techniques that encourage consumers to patronise specific stores or try particular products

• retailer-initiated

• manufacturer-initiated

consumer promotion techniques

• coupons

• rebates

• frequency marketing/ shopper loyalty

• free samples

• premiums

• games & sweepstakes

• price packs

trade promotion

sales promotion tools used to persuade resellers to carry a brand, give it shelf space, and promote it in advertising

forms of trade promotion

• allowances (price reductions)

• free goods

• cooperative advertising

• merchandising (performance)

the selling process

1. prospecting

2. pre-approach (gather information, decide on best approach)

3. approach

4. presentation

5. handle objections

6. close

7. follow-up