Marketing Management Final

Promotion

Communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior

Personal Selling

Involves direct spoken communication between sellers and potential customers

Mass selling

Communicating with large numbers of potential customers at the same time

Sales Promotion

refers to promotion activities-other than adverstising, publicity, and personal selling- that stimulate interest, trial, or purchase by final customers or others in the channel

Publicity

any unpaid forms of nonpersonal presentation of ideas, goods, or services.

Sales managers

Concerned with managing personal selling

Advertising Managers

manage their company’s mass selling efforts-in television, newspaper, magazines, online, and advertising on social media sites.

Sales Promotion Managers

manage their company’s sales promotion effort.

Public relations

Communication with noncustomers including the press, labor, public interest groups, stockholders, and the government.

Integrated marketing communications

the international coordination of every communication from a firm to a target customers to convey a consistent and complete message

AIDA Model

Consists of four promotion jobs: 1) to get attention, 2) to hold interest, 3) to arouse Desire, 4) to obtain actionused in marketing to guide the consumer's journey from awareness to purchase.

Communication process

a source trying to reach a receiver with a message

Source

The sender of a message in the communication process, responsible for encoding and transmitting information.

Receiver

a potential customer

Noise

any distraction that reduces the effectiveness of the communication process

encoding

the source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver

Decoding

the receiver translating the message

Message channel

the carrier of the message

direct-response promotion

direct communication between the seller and an individual customer using a promotion method other than face-to-face personal selling, designed to prompt immediate feedback from customers

Pushing

using normal promotion effort-personal selling, advertising, and sales promotion- to help sell the whole marketing mix to possible channel members

Pulling

getting customers to ask intermediaries for the product

adoption curve

Shows when different groups accept ideas

Innovators

The first to adopt. They are eager to try a new idea and willing to take risks. Tend to be young and well-educated. Likely to be mobile and have many contacts outside their local social group community.

Early adopters

Well respected by their peers and often are opinion leaders. They tend to be younger, more mobile, and more creative than later adopters. Unlike innovators, they have fewer contacts outside their own social group or community. Business firms in this category tend to be specialized

Early Majority

avoids risk and waits to consider a new idea after many early adopters have tried it-and liked it. They want to know the product is no longer “new” and that others have used it and liked it. Average-sized business firms that are less specialized often fit in this category.

Late majority

Cautious about new ideas. Often they are older and more set in their ways, so they are less likely to follow early adopters. Strong social pressure from their own peer group may be needed before they adopt a new product. Tend to be conservative, smaller-sized firms with little specialization. Make little use of marketing sources of information- mass media and salespeople. They tend to be oriented more towards other late adopters rather than outside sources they don’t trust

Laggards / Nonadopters

Prefer to do things the way they’ve been done in the past and are very suspicious of new ideas. They tend to be older and less well educated. The smalled businesses with the least specialization often fit this category. They cling to the status quo and think it’s the safe way. Main source of information is other laggards.

Primary Demand

Demand for the general product idea- not just for the company’s own brand.

Selective demand

demand for a company’s own brand. The main job is to persuade customers to buy and keep buying the company’s product

Task Method

Basing the budget on the job to be done. Helps a marketing manager to set priorities so that the money spent on promotion produces specific and desired results

Advertising Agencies

specialists in planning and handling mass-selling deltails for advertisers.

Advertising allowances

Price reductions to firms further along in the channel- to encourage them to advertise or otherwise promote the firm’s products locally

Cooperative advertising

involves producers sharing in the cost of ads with wholesalers or retailers.

Product Advertising

Advertising that tries to sell a specific product

Institutional advertising

Which promotes an organization’s image, reputation, or ideas rather than a specific product

Pioneering advertising

tries to develop primary demand for a product category rather than demand for a specific brand. Usually done in the early stages of the product life cycle. Informs potential customers about the new product and helps turn them into adopters

Competitive advertising

tries to develop selective demand for a specific brand by comparing it to competing brands and highlighting its advantages.

Direct Competitive Advertising

Aims for immediate buying action

Indirect competitive advertising

points out product advantages to affect future buying decisions

Comparative advertising

making specific brand comparisons- using actual product names or images.

Reminder advertising

Tries to keep the product’s name before the public

Advertising media

Various means by which a message is communicated to its target market

Pay-per-click

An advertiser pays media costs only when a customer clicks on the ad that leads to the advertiser’s website

Retargeting (Behavioral Retargeting)

Displays ads to a web user based on data collected from previous online behavior

Programmatic Delivery

the use of software and artificial intelligence to automate placing online advertising on websites or in social media to target users

Banner (display) ads

a type of online advertising that places an ad on a web page, often across the top or to the side of the page’s primary content

Click-Through rate

the number of people who click on the ad divided by the number of people the ad is presented to (can be low: less than 1 in 1,000)

Copy thrust

What the words and illustrations of an ad should communicate

Corrective advertising

ads to correct deceptive advertising

Trade promotion

refers to sales promotion aimed at intermediaries

Paid media

message generated by a brand and communicated through a message channel the brand pays to access

Owned media

Promotional messages generated by a brand communicated through a message channel the brand directly controls

Earned Media

Promotional messages NOT generated by the company or brand but rather by third parties such as journalists or customers

User-generated content

any type of communication created by customers for other customers

Search engine optimization (SEO)

process of designing a website so that it ranks high in a search engine’s unpaid results. SEO Considers how target customers search, what keywords they use in a search, and how the search engine prioritizes its results

Pass-along

Occurs when one customers passes information on to one or more other customers

Branded Servies

Valued services a brand provides that are not directly connected to a core product offering

White paper

an authoritative report or guide that addresses important issues in an industry and offers solutions

Case studies

Success stories about how a company helped another customer

Webinar

a live educational presentation where viewers can interact to ask questions and offer comments

Landing page

a customized web page that logically follows from clicking on an organiz search result, online advertisement, or other link

Blog

a regularly updates website, usually managed by one person or a small group and written in an informal conversational style

Branded apps

Sponsored software applications that benefit customers by providing entertainment, solving a problem and saving time

Brand Community

a group of customers joined around a particular brand or common set of shared interests

Spam

Unwanted, irrelevant messages sent out to a large number of recipients

Referral program

offers a current customer an incentive for recommending a new customer to a business

Social media

refers to websites or software applications that allow users to create and share ideas, information, photos, and videos and interact in a social network

Youtube

a video sharing website where users upload, view, rate, share, create playlists, and comment on videos

Facebook

an online social networking website that allows registered users to create profiles, upload photos and video, and send messages to connected friends

Instagram

a free online photo-and-video sharing service geared to mobile phones

Pinterest

a website that allows registered users to share ideas and images they find online with fellow users

LinkedIn

a networking website for businesspeople who create personal or company profiles

Snapchat

a mobile app and service for sharing photos, videos, and texts with other people

Twitter

a social networking microblogging service that allows registered users to send short messages called “tweets”

TikTok

A social networking service where users share short-form videos

Bounce rate

a measure of the percentage of visitors who only visit a single page in a website

Marketing automation software

tracks individual customers’ behavior and triggers actions in response to specific customer actions

Price

the amount of money that is charged for “something” of value

Target Return Objective

sets a specific level of profit as an objective, often this amount is stated as a percentage of sales or of capital investment

Profit Maximization Objective

Seeks to get as much profit as possible

Sales-Oriented Objectives

seeks some level of unit sales, dollar sales, or share of market - without referring to profit

Status quo-objectives

“don’t-rock-the-pricing-boat objectives” that aim to maintain existing market positions and avoid significant changes in pricing strategies.

Nonprice competition

aggressive action on one or more of the Ps other than Price

Administered prices

Consciously set prices. Instead of letting daily market forces decide their prices, most firms set their own prices

One-price policy

offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities

Flexible-price policy

offering the same product and quantities to different customers at different prices

Dynamic pricing

Pricing products at a particular customer’s perceived ability to pay

Skimming price policy

tries to sell the top of the market- the top of the demand curve- at a high price before aiming at more price-sensitive customers

Penetration pricing policy

tries to sell the whole market at one low price

introductory price dealings

temporary price cuts to speed new products into the market and get customers to try them. NOT TO BE CONFUSED WITH LOW PENETRATION PRICES. The plan is to raise prices as soon as the introductory offer is over

Basic List prices

prices final customers or users are normally asked to pay for products

Discounts

reductions from list given by a seller to buyers who either give up some marketing function or provide the function themselves

Quantity discounts

discounts offered to encourage customers to buy in larger amounts

Cumulative quantity discounts

apply to purchase over a given period (such as a year) and the discount usually increases as the amount purchased increases

Noncummulative quantity discounts

apply only to individuals orders.

Seasonal discounts

discounts offered to encourage buyers to buy earlier than present demand requires

Net

Payment for the fee value of the invoice is due immediately

Cash discounts

reductions in price to encourage buyers to pay their bills quickly. The terms for a cash discount usually modift the net terms

2/10, net 30

the buyer can take a 2% discount off the face value of the invoice if the invoice is paid within 10 days

Trade (functional) discount

list price reduction given to channel members for the job they are going to do