Marketing Exam 4

marketing is challenged in 2 environments, what are they?

traditional marketplace and digital marketplace

what do companies need to have to thrive

ability to capitalize on value creation and use technology to deliver favorable customer experience

interactivity with customers vs individuality

interactivity: listen and respond

individuality: treat customers as individuals

what are the seven website design elements that drive customer experience

context, commerce, connection, communication, content, community and customization

what are some characteristics of online consumers

equally female and male, better educated, younger, more affluent, account for 69% of all online sales, men spend more per transaction

what are the 5 product categories that account for 70% of US online retail sales

apparel & accessories, computer & accessories, automobile & auto parts, books & music & video, health & personal care

what are the 6 reasons of why consumers shop and buy online

convenience, choice, customization, communication, cost and control

what is the CAN SPAM Act

controlling the assault of non-solicited pornography and marketing

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what day is the busiest for online shopping

Wednesday during work hours

what are the options for cross-channel consumer

shops online and then buys offline

shops offline and then buys online

what is showrooming

shops in store and then buys online

* the practice of examining products in a store and then buying them online for a cheaper price

what is webrooming

shops online and then buys instore

* practice of examining product online and then buying them in a store

what is multichannel marketing

blends different communication and delivery channels

what are the three steps to multichannel marketing

1. document cross-channel consumer behavior
2. employ mutually reinforcing communication and delivery channels
3. monitor and measure performance

what is interactive marketing

the two-way buyer-seller electronic communication in which the buyer controls the kind and amount of information received from the seller

what is a choiceboard

an interactive, internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes, prices and delivery options

what is collaborative filtering

a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases

what is personalization

the consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences

what is permission marketing

the solicitation of a consumer’s consent (called “opt-in”) to receive email and advertising based on personal data supplied by the consumer

who are online consumers

the subsegment of all Internet users who employ this technology to research products and services and make purchases

what is the 8 second rule

a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds

what is customerization

the practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer

what are web communities

websites that allow people to congregate online and exchange views on topics of common interest

what is spam

communications that take the form of electronic junk mail or unsolicited email

what is viral marketing

an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via email, social networking websites and blogs

what is dynamic pricing

the practice of changing prices for products and services in real time in response to supply and demand conditions

what are cookies

computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website

what is behavioral targeting

uses information provided by cookies for directing online advertising from marketers to those online shoppers who behavioral profiles suggest they would be interested in such advertising

what is social commerce

the use of social networks for browsing and buying

what is subscription commerce

involves the payment of a fee to have products and services delivered on a recurring schedule

what is a cross-channel consumer

a consumer who shops online and buys offline or shops offline but buys online

what is marketing attribution

the practice and techniques used to credit or value a particular channel and consumer touchpoint

communication requires 6 elements, what are they

source, message, channel of communication, receivers, encoding, decoding

what are the 5 elements of the promotional mix

advertising, personal selling, public relations, sales promotion, direct marketing

what are the characteristics of advertising

paid, non personal, mass selling

what are the 4 stages in the product life cycle

introduction, growth, maturity, decline

what is a push strategy

promotion aimed to channel member

* directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product

what is a pull strategy

promotion aimed to consumers

* directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product

what is channel control

moving the product through the distribution channel

what are the three steps of the promotion decision process

planning (Developing the promotion program), implementation (executing the promotion program) and evaluation (assessing the promotion program)

what are the different ways you can identify the target audience

demographics, interests, preferences, media use and purchase behaviors

what are the parts of the hierarchy of effects

awareness, interest, evaluation, trial, adoption plus advocacy

what are the 4 types of budgeting

percentage of sales, competitive parity, all-you-can-afford, objective and task

what is objective and task budgeting

determine promotion objectives, outline tasks, and determine cost

what is the promotional mix

the combination of one or more communication tools used to: inform prospective buyers about the benefits of the product, persuade them to try it, and remind them later about the benefits they enjoyed by using the product

what is integrated marketing communications (IMC)

the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences

what is communication

the process of conveying a message to others that requires six elements: a source, message, channel of communication, receiver and the process of encoding and decoding

what is noise

consists of extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process

what is advertising

any paid form of non personal communication about an organization, product, service or idea by an identified sponsor

what is personal selling

consists of the two way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision

what is public relations

a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees and other publics about a company and its products or services

what is publicity

a non personal, indirectly paid presentation of an organization, product or service

what is sales promotion

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

what is direct marketing

a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information or a visit to a retail outlet

what is the hierarchy of effects

the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial and adoption

what are direct orders

the result of a direct marketing offer that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction

what is the lead generation

the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information

what is the traffic generation

the outcome of a direct marketing offer designed to motivate people to visit a business

what are the three forms of product advertisements

pioneering (or informational), competitive (or persuasive) and reminder

what are the 4 forms of institutional advertisements

advocacy, pioneering institutional, competitive institutional, reminder institutional

what are the steps in developing an ad program

1. identifying the target audience
2. specifying the advertising objectives


1. setting the advertising budget

what are the three types of appeals

fear, sex, humor

what is advertising media

the means to communicate the message

what are the basic terms of media buyers

reach, rating, frequency, Gross rating points (GRPs): reach x frequency

cost per thousand (CPM)

what are the advantages and disadvantages of television

reach a lot of people in homes and out of homes

high cost and wasted coverage, hundreds of TV stations

what are infomercials

30 minute advertisements

what are the advantages and disadvantages of radio

many stations and has a good reach

limited use, can switch stations easily and peak times are drive times

what are the advantages and disadvantages of magazines

very specialized and a lot of them

high cost and long time to produce

what are the advantages and disadvantages of newspaper

local and current events, call for action, growth online and mobile

short life span and poor color and print

what are the advantages and disadvantages of directories

directs consumers to where purchases can be made

environmental impact and competes with google and other sites on internet

what are the advantages and disadvantages of internet

rich media, banner/display ads, paid search, mobile marketing

difficult to measure impact of ad, do not always result in a click

what are the advantages and disadvantages of outdoor ads

good reach and frequency, low cost and targeted geographic market

message msut be short and low selectivity of audience

what are the factors to consider when developing the advertising program

media habits of target audience, product attributes may require certain media to be used, complexity of message, timing, cost

what are the different scheduling approaches

continuous, flighting, pulse

what is a continuous schedule

steady, seasons not important

what is flighting (intermittent) schedule

intermittent, reflects seasonal demand

what is pulse (burst) schedule

burst, flighting and continuous, new product

what are some of the pretests

portfolio tests: test the copy alternatives

jury tests: show copy to panel of consumers

theater tests: consumers view new shows or movies and recording devices are used during viewing

what are the types of agencies that help carry out the advertising program

full service: complete range of services

limited-service agencies: contract for creative work

in-house agencies: company’s own staff

what are the types of posttests

aided recall, unaided recall, attitude tests, inquiry tests, sales tests

what are the types of consumer-oriented sales promotions

coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point of purchase displays, rebates, product placements

what are deals

short-term price reductions, increase trials, react to competition

what are premiums

offers items free or at significant savings, self-liquidating, encourages frequent buying

what are the types of trade-oriented sales promotions

allowances and discounts, cooperative advertising, training of distributors’ salesforces

what are publicity tools

news release, news conference, public service announcements (PSA)

what are product advertisements

advertisements that focus on selling a product or service and which take 3 forms: pioneering, competitive, reminder

what is mobile marketing

the road set of interactive messaging options that enable organizations to communicate and engage with consumers through any mobile device

what are pretests

tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisements

what are posttests

tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose

what are consumer-oriented sales promotions

consists of sales tools used to support a company’s advertising and personal selling directed to ultimate consumers- also called consumer promotions

what is product placement

a consumer sales promotion tool that uses a brand-name product in a movie, television show, video game or a commercial for another product

what are trade-oriented sales promotions

sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors or retailers- also called trade promotions

what is cooperative advertising

advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products

what are publicity tools

methods of obtaining non personal presentations of an organization, product or service without direct cost, such as news releases, news conferences and public service announcements (PSA’s)

what is a social network

where users interact with each other

what are the two factors that we use to classify social media

media richness and self-disclosure

what are the three categories of influencers

micro, macro and mega

what is social shopping

focuses on the consumer’s shopping experience

people are influenced by their peers purchases and recommendations

what is social proof

people are likely to adopt observed behavior of others

what are the brand manager’s strategy for facebook

generate awareness for products and new customers and increase traffic