Marketing Exam Ch12-16

promotion mix

(also called its marketing communications mix) consists of the specific blend of: advertising, sales promotion, personal selling, and public relations

advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor (digital, broadcasts, print, online, mobile, outdoor)

sales promotion

short-term incentives to encourage the purchase or sale of product or service (discount, coupons, displays, demonstrations); marketer-controlled communication to stimulate immediate audience response by enhancing the value of an offering for a limited time

personal selling

personal customer interactions by the firm’s salesforce to engage customers, make sales, and build customer relationships (sales presentations, trade shows, incentive programs); direct interaction between a company representative and a customer

public relations (PR)

activities designed to engage the company’s various publics and build good relations with them (stories, sponsorship, events, and webpages); communication activities that create or maintain a positive image of a firm and its products

content marketing

creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owed, earned, and shared channels

integrated marketing communications (IMC)

carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products; the process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences

push strategy

the company “pushes” the product to resellers, which in turn “push” it to consumers

pull strategy

the company promoted directly to final consumers, creating a demand vacuum that “pulls” the product through the channel

major advertising decisions

• setting advertising objectives

• setting the advertising budget

• developing advertising strategy

• evaluating advertising effectiveness

advertising objective

a specific communication task to be accomplished with a specific target audience during a specific period of time, can be classified by their primary purpose

informative advertising

used heavily when introducing a new product category, objective is to build primary demand

persuasive advertising

becomes more important as competition increases, objective is to build selective demand

comparative advertising

advertising strategy in which the company directly or indirectly compares its brand with one or more other brands

reminder advertising

important for mature products, it helps to maintain customer relationships and keep consumers thinking about the product

advertising budget

the dollars and other resources allocated to a product or a company advertising program

affordable method

setting the promotion budget at the level management thinks the company can afford

percentage-of-sales method

setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

competitive-parity method

setting the promotion budget to match competitors’ outlays

objective-and-task method

developing the promotion budget by (1) defining specific promotion objectives, (2) determining the tasks needed to achieve these objectives, and (3) estimating the costs of performing these tasks → the sum of these costs is the proposed promotion budget

advertising strategy

the strategy by which the company accomplishes its advertising objectives; it consists of two major elements: (1) creating advertising messages and (2) selecting advertising media

native advertising

(also called sponsored content) advertising or other brand-produced online content that appears to be “native to” the web or social media site in which it is placed

creative concept

the compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way → should be meaningful, believable, and distinctive

types of advertising appeals

the approach, style, tone, words, and format used for executing an advertising message

• unique selling proposition

• comparative advertising

• demonstration

• slice of life: shows one or more “typical” people using the product in a normal way

• lifestyle: shows how product fits in with a particular lifestyle

• fantasy: creates a fantasy around the product or its use

• mood or image: builds a mood or image around the product or service, such as beauty, love, intrigue, serenity, or pride

• musical: employs music or dance to engage viewers with the brand

• personality symbol: creates a character that represents the product (the character might be animated or real)

• technical expertise: shows the company’s expertise in making the product

• scientific evidence: presents survey or scientific evidence that the brand is better or better liked than one or more other brands

• testimonial evidence or endorsement: features a highly believable or likable source endorsing the product

• fear appeals

• sex appeals

• humorous appeals

• slogans, jingles, and music

advertising media

the vehicles through which advertising messages are delivered to their intended audience

1. determining reach, frequency, impact, and engagement

2. choosing among major media types

3. selecting specific media vehicles

4. choosing media timing

return on advertising investment

the net return on advertising investment divided by the costs of the advertising investment

advertising agency

a marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs

functions of PR

• press relations or press agency: creating and placing newsworthy information in the news media to attract attention to a person, product, or service

• product and brand publicity: publicizing specific products and brands

• public affairs: building and maintaining relationships 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 nonprofit organizations to gain financial or volunteer support

consumer-influence strategies

strategies for engaging consumers and influencing how they think, feel, and act toward a brand or market offering through the use of marketing communications

major promotion tools

• advertising and sales promotion

• personal selling and public relations

• direct and digital marketing

sponsorship

a way of publicly associating a brand with an event or activity that the company supports financially

buzz

word-of-mouth communication that consumers view as authentic

buzz marketing

using high-profile entertainment or news that gets people to talk about the brand

viral marketing

creating entertainment or informative messages to be passed along; the digital version of word-of-mouth marketing: videos, ads, and other marketing content that are so engaging and infectious that consumers will seek them out and pass them along to friends

word-of-mouth (WOM) marketing

activities that give people a reason to talk about the product

guerrilla marketing

activities that “ambush” consumers with promotional content in places they are not expecting to encounter this kind of activity

experiential marketing

marketing activities that attempt to give customers an opportunity to actually interact with a brand

consumer-generated media

the online consumer-generated comments, opinions, and product-related stories available to other consumers through digital media

advertising campaign

a coordinated, comprehensive plan that carries out promotion objectives and results in a series of ads placed in media over a period of time

institutional advertising

enhances a company’s image rather than promotes a particular product

product advertising

touts the benefits of a specific good or service

retail and local advertising

encourages customers to shop at a specific store or use a local service

do-it-yourself advertising

“generation C” phenomenon: consumer-generated ad content on the web

media selection considerations

• cost per contact: the cost of reaching one member of the target market

• reach: the number of target consumers exposed to a commercial at least once during a time period

• frequency: the number of times an individual is exposed to a message during a time period

• audience selectivity: the ability of an advertising medium to reach a precisely defined market

salesperson

an individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building

salesforce management

analyzing, planning, implementing, and controlling salesforce activities

major steps in salesforce management

1. designing salesforce strategy and structure

2. recruiting and selecting salespeople

3. training salespeople

4. compensating salespeople

5. supervising salespeople

6. evaluating salespeople

territorial salesforce structure

a salesforce organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line

product salesforce structure

a salesforce organization in which salespeople specialize in selling only a portion of the company’s products or lines

customer salesforce structure

a salesforce organization in which salespeople specialize in selling only to certain customers or industries

outside salesforce

salespeople who travel to call on customers in a field

inside salesforce

salespeople who conduct business from their offices via telephone, online, and social media interactions, or visits from prospective buyers

team selling

teams of people from different departments used to service large, complex accounts

sales quotas

a standard that states the amount a salesperson should sell and how sales should be divided among the company’s products

social selling

the use of digital platforms and sales tools to engage customers, build stronger customer relationships, and augment sales performance

selling process

the steps that salespeople follow when selling

1. prospecting and qualifying

2. preapproach

3. approach

4. presentation and demonstration

5. handling objections

6. closing

7. follow-up

prospecting

the sales step in which a salesperson or company identifies qualified potential customers

preapproach

the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call

approach

the sales step in which a salesperson meets the customer for the first time

presentation

the sales step in which a salesperson tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems

handling objections

the sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying

closing

the sales step in which a salesperson asks the customer for an order

follow-up

the sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business

consumer promotions

sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships

event marketing

creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

trade promotions

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

business promotions

sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople

transactional selling (the hard sell)

high-pressure process that focuses on making an immediate sale with no concern for developing long-term customer relationship

relationship selling

process of building long-term customers by developing mutually satisfying, win-win relationships with customers

straight commission

earn a percentage of sales margin or selling price

commission with a draw

advance salary to be paid with future commissions

straight salary

base salary with bonuses based on making quotas

salesforce promotions

sales promotion tools used to get more salesforce support for current or new products and motivate salespeople to sign up new accounts

consumer promotion tools

• samples: offers of trial amount of a product, most effective and expensive

• coupons: certificates that save buyers money when they purchase specified products

• rebates (cash refunds): price reduction occurs after the purchase, customer sends proof of purchase to the manufacturer which then refunds part of the purchase price by mail

• price packs (cents-off deals): offer consumers savings off the regular price of a product

• premiums: goods offered either free or at low cost as an incentive to buy a product

• advertising specialties: useful articles imprinted with an advertiser’s name, logo, or message that are given as gifts to consumers

• point-of-purchase promotions: displays and demonstrations that take place at the point of sale

• contests, sweepstakes, and games: give consumers the chance to win something

• event marketing (or event sponsorships): creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

digital marketing

the use of technology-intensive platforms such as the internet, mobile networks and devices, and social media to engage directly with carefully targeted individual consumers, consumer communities, and businesses

digital-consumer personas

detailed, nuanced, tangible representations of prototypical consumers to be targeted by the digital marketing campaign

consumer omni-channel navigation behavior

the consumer’s use of multiple marketing channels, both digital and nondigital, across stages of the consumer buying decision process

online marketing

marketing via the internet using company websites, online ads and promotions, email, online video, and blogs

marketing websites

a website that engages consumers to move them closer to a direct purchase or other marketing outcome

branded community websites

a website that presents brand-related content that engages consumers and creates a customer community around a brand

online advertising

advertising that appears while consumers are navigating on other digital platforms, including display ads and search-related ads

online display ads

digital ads that appear anywhere on an internet or mobile user’s screen and are often related to the information being viewed

search-related ads

text- and image-based ads and links appear atop or alongside search engine results on sites such as Google

email marketing

sending highly-targeted, highly personalized, relationship-building marketing messages via email

spam

unsolicited, unwanted commercial email messages

blogs

online forums where people and companies post their thoughts and other content, usually related to narrowly defined topics

social media

independent and commercial online social networks where people congregate to socialize and share messages, opinions, pictures, videos, and other content

mobile marketing

marketing messages, promotions, and other content delivered to on-the-go consumers through their mobile devices

omni-channel marketing

creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

public policy issues in direct and digital marketing

• irritation: loud, long, and insistent TV commercials, junk mail and spam

• unfairness: taking unfair advantage of impulsive buyers

• deception and fraud: investment scams or phony collections for charity, internet fraud, phishing, online and digital security, access by vulnerable or unauthorized groups

• consumer privacy: fear of invasion of privacy, ready availability of information leaves consumers open to abuse

• need for action

direct mail marketing

sending an offer, announcement, reminder, or other item directly to a person at a particular address

catalog marketing

print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online

global marketing

the full process of marketing products and services within and across multiple countries

economic communities

groups of nations organized to work toward shared global trade and other goals (like the EU)

exporting

entering foreign markets by selling goods produced in the company’s home country, often with little or no modification

joint venturing

entering foreign markets by joining with foreign companies to produce or market a product or service

licensing

entering foreign markets by developing an agreement with an entity in the foreign market to use the company’s brand, trademark, patent, trade secret, manufacturing process, or some other item of value in return for some payment

contract manufacturing

a joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service

management contracting

a joint venture in which the domestic company supplies the management know-how to a foreign company that supplies the capital; the domestic company exports management services rather than products

joint ownership

a cooperative venture in which a company creates a local business with investors in a foreign market who share ownership and control