MARK3000 Exam 4

merchandise is produced and distributed:

1. in the right quantities

2. to the right locations

3. at the right times

supply chain

represents all the organizations that figure into any part of the process of producing, promoting, and delivering a service or product to its user

marketing channels

how the suppluy chain is organized and managed

suppliers

sell raw materials

manufacturers

sells finished goods to the wholesale companies

wholesale companies

put the product around the country in distribution centers

retailer

buys from their local distribution center then sells to the consumer

distribution center

a facility for the receipt, storage, and redistribution of goods to company stores and may be operated by retailers, manufacturers, or distribution specialists

fulfillment centers

used to ship directly to individual customers

inventory management systems

track goods throughout stores, warehouses, and DCs, just-in-time inventory management ensures goods get delivered only when they are needed, aka quick response inventory systems

direct marketing channel

moving goods directly from the manufacturer to the customer

indirect marketing channel

moving goods from the manufacturer through one (or more intermediaries) to get to the customer

RFID

tiny computer chip that can be placed on an item, box, case, or pallet of products that transmits information through a wireless scanner

integrated marketing communications (IMC)

a holistic approach where all aspects of marketing work together towards a common goal, takes the best of each communications medium and combines it to achieve the most effective marketing campaign

traditional marketing

company driven, make a sale/increase profits, mass audience

integrated marketing

consumer-driven, understand and meet the needs of the consumer, personalized/tailored messages

components of communications process

sender, transmitter, communications, receiver, noise, feedback

AIDA

model provides a basis for understanding how marketing communications works

AIDA: Awareness

senders must first gain the attention of the consumer

• aided recall

• top of mind awareness

AIDA: Interest

customer wants to further investigate the product/service, interest can also be sparked by a little controversy

AIDA: Desire

after the firm has piqued the interest of its target market, the goal of subsequent IMC messages should move the consumer from ‘I like it’ to ‘I want it’

AIDA: Action

ultimate goal of any form of communications is to drive the receiver to action

the lagged effect

a delayed response to a marketing communication campaign

IMC goal

delivering the right message, to the right consumer, at the right time

personal selling

two-way communication between the buyer and seller to influence buying decisions

sales promotions (contests, samples)

can be used in a wide variety of situations to simulate demand among either end users or other channel memebers

direct marketing

communicating directly with target customers (no middleman) to generate a response or transaction

direct marketing

allows marketers to carefully target their consumers and personalize their message, enables marketers to communicate with an audience that is more likely to respond to their messages and generate a result

advertising

most visible element of IMC

• both online or offline

• generally passive: no action required by consumers

extremely effective at creating awareness and generating interest

paid media

public relations

“free” media attention but requires a ton of work and personal relationships, as consumers become more skeptical about marketing Pr is becoming more important

Mass awareness

out-of-home billboards and theatrical branding

experiential marketing

pop-up environments, themed destinations, immersive spaces

brand partnerships

food, fashion, beauty, gaming, and lifestyle collaborations

retail and merchandising

branded apparel, accessories, collectibles

digital and social

highly ‘sharable’ visuals designed for instagram/tiktok

visual consistency

one dominant color system and instantly recognizable aesthetic

lifestyle infiltration

barbie as an environment, not just a movie

SMART objective

specific, measurable, achievable relevant, time-bounded

IMC budget: rule of thumb method

use prior sales and communication activities to determine the present communication budget

• competitive parity

• percentage of sales

• available budget

IMC budget: objective and task method

determines the budget required to undertake specific tasks to accomplish communication objectives

ROI

considers the costs of creating, maintaining, and promoting a product. This includes the cost of purchasing materials, salaries, the budget for advertising campaigns, etc

• ROI is important for assessing the profitability of your business

return on marketing investment (ROMI)

ROMI is used to understand how much is earned from every dollar invested in marketing. Marketing expenses include the costs of advertising, promos, events, agency fees, and other activities

• ROMI is important for evaluating the effectiveness overall strategy and promotion

return on ad spend (ROAS)

ROAS is a measure of the return on investment a business spends on advertising. It is used to check how much money has returned from investments in individual ad campaigns or channels

• ROAS is a metric that shows the effectiveness of a particular advertising campaign or media channel

gross rating points

when and how often consumers have been exposed to various marketing communication

• Formula: GRP = Reach * Frequency (evaluate the effectiveness of media)

advertising

a paid form of communication delivered through media from an identifiable source about an organizations, product, service, or idea designed to persuade the receiver

• most visible

Ad campaign step 1: identify target audience

conduct research to identify target audience, used to set the tone and to select media

Ad campaign step 2: set advertising objectives

derived from the overall objectives of the marketing program, must be specific to the identified target audience and include the strategic objectives and tactics to be used

• all advertising campaigns aim to achieve certain objectives (inform, persuade, remind)

informative advertising

used to create and build brand awareness, typically used at the early stage of the product life cycle as you want to build your brand image and initial sales

persuasive advertising

motivate consumers to take action, occurs in the growth and early maturity stages, may be used to reposition an established brand

reminder advertising

communication used to remind or prompt repurchases, products in the maturity stage of their life cycle

product focused

most ads, inform, persuade, or remind about a particular product or service

institutional focused

inform, persuade, or remind about issues related to places politics, industry, etc

publuce service advertising focused

under federal communication commission rules, broadcasters must devote a specific amount of free airtime to PSA, used to raise awareness of public welfare issues

Ad campaign step 3: determine the advertising budget

advertising is often the largest single expenditure in the promotional budget

Ad campaign step 4: convey the message

the unique selling proposition (USP) concept conveys key benefits to the target audience

unconventional advertising (guerilla marketing)

advertisement strategy concept designed for businesses to promote their products or services in an unconventional way with little budget to spend

informational appeal

helps consumers make purchase decisions by offering factual information

emotional appeal

aims to satisfy consumers’ emotional desires rather than their utilitarian needs

Ad campaign step 5: evaluate and select media

the ability of any media outlet to reach a mass audience is declining due to fragmentation of media and the proliferation of new media outlets

Ad campaign step 6: create advertisements

Ads attempt to make maximum use of the medium’s ability to deliver the messa

Push marketing (outbound marketing)

marketing tactic to push your products and services to potential customers

pull marketing (inbound marketing)

marketing tactic to entice consumers to come looking for your product or service

Ad campaign step 7: assess impacts using marketing metrics

did you achieve your SMART objectives?

federal trade commission (FTC)

primary US government agency to enforce federal consumer protection laws, enforces truth in advertising laws; defines deceptive and unfair advertising

• apply more specialized rules for certain industries such as financial and healthcare, there are also special rules for social media endorsements

deceptive advertisment

leads consumers to purchase products that are counterfeit, defective, or even dangerous

federal communications commission (FCC)

regulates interstate and international communications by radio, television, satellite and cable

• consumers can write to the FCC

Food and drug administration

• Regulates food, dietary supplements, drugs, cosmetics, medical devices (including radiation-emitting devices such as cell phones), biologics (biological issues), and blood products.

• Regulates package labeling and inserts, definition of terms such as light and organic, and required disclosure statements (warning labels, dosage requirements, etc.)

print guidelines

product claim ads also must include a "brief summary" about the drug that generally includes all the risks listed in its approved prescribing information

broadcast guidelines

product claim ads (TV, radio, telephone) must include the following:

• The drug's most important risks ("major statement") presented in the audio (that is, spoken) AND

• Either all the risks listed in the drug's prescribing information or a variety of sources for viewers to find the prescribing information for the drug

Bureau of Alcohol, Tobacco, Firearms and Explosives

Responsible drinking messages are not required under federal law. The alcohol industry’s voluntary guidelines for marketing and promotion do not provide a definition of responsible drinking

puffery

legal exaggeration of praise, stopping just short of deception, lavished on a product

• When creating puffery advertisements, it’s essential that claims stay subjective (something that is based on opinion)

public relations

maintaining a positive reputation in the market, build trust, credibility and goodwill between a business and the public

PR and consumer trust

consumers view PR as more credible and objective because the firm does not buy the space in print media or time on the radio or television

crisis management

the main goal of a PR department would be to inform, message should restore trust in your organization

• be proactive and build a crisis plan before something goes wrong

• react to the crisis quickly

• be open with your communication; closing down all comms and going silent in the midst of a crisis is business suicide

• be honest, honesty builds trust

investor relations

focus on how a company communicates with investors, shareholders, government authorities and the financial community

coupons

encourage customers to purchase from your company (printable or physical coupons)

product discounts

can advertise a discount on a product to attract customers to your company rather than to your competitors with similar products

Buy one, get one (BOGO) deals

allow customers to purchase one product and get another product for free or for a reduced price, huge sales driver because it delivers great customer value

loyalty programs

loyal customers can contribute heavily to a company’s success and setting up a loyalty program is a great strategy for retaining customers

samples

introduce people to a product to let them try it out before committing to buy it

sweepstakes

type of contest where a prize or prizes may be awarded to a winner/s

• games of chance, random drawings

contests

games of skill offered by a company, that offer consumers the chance to win a prize

rebates

form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively, partial refunds

premiums

rewards consumer purchases with free products or products at a reduced cost

point of purchase (POP) displays

any marketing scheme or advertising strategy (checkout displays and signage) accompanying an advertised product

personal selling

does not have to be face to face

value added by personal selling

provide information and advice, save time and simplify buying, build long-term relationships

personal selling process

1. generate and qualify leads

2. pre-approach research

3. sales presentation role play and overcoming reservation

4. closing the sale

5. follow-up

Step 1: generate and qualify leads

generate a list of potential customers and assess their potential

step 2: preapproach

qualified lead requires a meeting, CRM system (enter customer info into system to build a database)

step 3: sales presentation and overcoming reservations

most difficult part of sales encounter is dealing with objections/reservations, roleplaying is critical to the training process

step 4: closing the sale

obtain commitment from the customer to make a purchase, often the most stressful part of the sales process, a “no” one day may be the foundation for a “yes” another day

step 5: follow-up

salespeople must always remember that the sale is just the beginning of a customer relationship, follow-up offers a prime opportunity for a salesperson to solidify the customer relationship through great service quality

step 5: follow-up criteria

• reliability: salesperson and the supporting organization must deliver the right product or service on time

• responsiveness: salesperson and support group mist be ready to deal quickly with any issue, question, or problem

• assurance: customers must be assured through adequate guarantees that their purchase will perform as expected

• empathy: salesperson and support group must have a good understanding of the problems and issues faced by their customers

• tangibles: their influence is subtler than that of the other four service quality dimensions

B2B Buying Process

1. need recognition

2. product specifications

3. RFP process (request for proposals)

4. proposal analysis and supplier selection

5. order specification

6. performance assessment

ethical and legal issues in personal selling

three categories:

1. sales manager and the sales force (must treat people fairly and equally in everything they do, equal employment opportunity laws)

2. sales force and corporate policy (firm may have a policy to sell goods or services to people who cannot afford them or to people who should not have them)

3. salesperson and the customer

legal challenge

both YOU and YOUR BOSS/EMPLOYER can be sued and held accountable