mkt 337 exam 3 miller

promotion

communicating information between seller to buyer to influence behavior - promotion should fit the marketing mix

personal selling

involves direct spoken communication - customer service, can be expensive so it is often mixed with sales promotion and publicity

mass selling

communication with a large number of customers at the same time - less expensive but less flexible

sales promotion

promotional activities other than advertising - contests, sweepstakes, coupons that are designed to create immediate results - can be directed at potential customers or employees

publicity

unpaid form of advertising - avoids media costs using word of mouth, social media, websites

sale managers

concerned with managing personal selling - they focus on distribution channels

advertising managers

manage mass selling efforts - have to choose which type of media to use whether it be TV, billboards, social media, etc

public relations

communicates with noncustomers either someone who specializes in social media or manages press, labor, public interest groups, etc - can be outsourced - ex. social media managers

integrated marketing communication

the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message - difficult for some firms to be consistent in their overall message because there are different channels all working on their promotion strategy

promotion objectives

the three basic promotion objectives: informing, persuading, reminding

informing

shows that it meets customer satisfaction - new firms want to inform customers about features and benefits of the product - indirectly supports brands - education goes along with promotion

persuading

firms will try to develop a favorable set of attitudes so customers will buy - shows how one brand is better than another - companies will compare their products to rival companies

reminding

if customers have a positive attitude about a firm's products, companies will often remind customers about their positive experiences to keep them buying and from going to a rival brand

AIDA

attention, interest, desire, action

action

necessary to make customer aware of the product

interest

gives communication a chance to build customer preference

desire

effects evaluation and helps build brand preference

communication process

a source trying to reach a receiver with a message - source --> encoding --> message channel --> decoding --> receiver

source

sender of a message to receiver - source must be trustworthy

noise

anything that interferes with the communication of advertising

encoding

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

decoding

receiver translating the message

message channel

carrier of the message - can be through TV, emails, internet, etc

pushing

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

Intermediaries

Entities that pay attention to products with the most profit potential and may offer incentives to retailers.

Trade ads

Advertisements run by producers to inform channel members about new offerings.

Internal marketing

The process of motivating employees and salespeople to achieve higher sales or improve customer service.

Pulling

The strategy of getting customers to request products from intermediaries, targeting end customers.

Sales promotions

Short-term incentives like contests, trials, and coupons aimed at boosting sales and customer interest.

Sales management expenses

Personal selling is one of the largest operating expenses because 1 out of every 10 in the labor force is involved in sales.

Consequences of bad sales management

Can lead to out-of-pocket expenses and losses in sales.

Sales responsibilities

Include helping customers buy the right product, representing the whole company, and providing marketing information.

Basic sales tasks

Order getting, order taking, and support.

Order getters

Salespeople focused on establishing relationships with new customers and developing new business.

Order takers

Salespeople who sell to regular customers, complete transactions, and maintain customer relationships.

Supporting sales

Involves helping sales-oriented people enhance long-term customer relationships.

Missionary salespeople

Support salespeople who work for producers and call on intermediaries to develop goodwill.

Technical specialists

Provide technical assistance to order-oriented people, often having a background in science or engineering.

Customer service reps

Resolve problems with purchases and help promote future purchases by ensuring customer satisfaction.

Team selling

A collaborative approach where different people work together on a specific account.

Major account sales force

A specialized sales effort for large customers, treated differently due to their unique needs.

Inside sales force

Sales force that interacts with customers through non-face-to-face methods like emails, calls, and video selling.

sales territory

geographical area that is the responsibility of one sales person or several sales people working together - this can reduce travel time and cost of sales calls

when is it smarter to split sales people based on individual product

when sales people know the specific details of the product and it is more differentiated

when should there be an emphasis on personal selling

high customer relationships requires and low information sharing

when should there be an emphasis on the use of digital self service or AI

when there is low standardized information exchanged on a recurring basis + low customer service required

how can intelligent agents take over sales responsibilities

they are able to observe their environment, ask questions to the customers, and then make recommendations - ex. AI agents in hotel lobbies

what does good sales training include

company products and policies, product information, how to build relationships with customer firms, and personal selling skills

what are the types of compensation plans

straight salary, straight commission, combination

what are people on straight salaries expected of

do what sales managers asks as they earn the same regardless of how they spend time - close supervision

what are sales reps compensation based on

the relationship between a sales persons efforts and their results

sales quota

specific sales or profit objective a sales person is expected to achieve

prospecting

following all the leads in the target market to identify potential customers - narrowing down the personal selling efforts to the right target requires constant analysis of the markets

grading scheme

estimates how much each prospect is likely to purchase and the probability of getting and keeping the business - gauges potential

prepared sales presentation

uses a memorized presentation that is not adapted to each individual customer - sales person gives different presentations to potential customers until the customer buys or leaves - good for short presentations or if the sales person isn't very skilled

consultative selling approach

developing a good understanding of the individual customers needs before trying to close the sale - also called need satisfaction approach because it involves customer and salesperson working together to reach customers needs - takes a more skilled salesperson

selling formula approach

starts with prepared presentation outline like prepared approach and leads the customer through some logical steps to a final close - at first the sales person starts with the prepared presentations the brings in the customer to help clarify their needs

advertising allowances

reductions in prices to firms further along the channel to encourage them to advertise the firms products locally

cooperative advertising

when companies and retailers split advertising costs

product advertising types

pioneer, competitive, comparative, reminder

pioneer advertising

tries to develop primary demand for a product category rather than a specific product from a specific brand

competitive advertising

tries to develop demand for demand preference - can be direct or indirect

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

reminder advertising

tries to keep the products name before the public - normally when brands have achieved preference

institutional advertising

focuses on the brand/company reputation - how the company looks to other companies and tries to improve their relationships with other businesses, channel members, etc

mobile media outlet advantages and disadvantages

• easy to track, more detailed, highly targeted

• hard to compare costs to other media outlets

TV advantages and disadvantages

• image building, good attention, wide reach

• expensive, competition with other ads, easy to skip

radio advantages and disadvantages

• cheap, detailed, wide reach

• declining audience, weak attention

magazines advantages and disadvantages

• targeted, high reader involvement

• inflexible, high costs

out of home (billboards) advantages and disadvantages

• captive audience, can be local

• at a glance, younger audience

pay per click

companies pay for ads when customers click on them

retargeting

displaying ads of products customers have already looked at before

copy thrusts

what words and illustrations should communicate

why are sales results not always an accurate picture for advertising success

the total marketing mix affects sales not just advertising - also sales are affected by external factors like competitors

how do companies test ads

laboratory and market tests

native advertising

ads that are designed to not look like ads

corrective advertising

try to correct deceptive advertising - ex. drug company made false claims that their drug can fix acne even though it doesn't

Lanham Act

protects brands that were tarnished by other companies competitive ads

final customer sales promotion

coupons, sweepstakes, contests, gifts

wholesaler/retailer sales promotion

trade shows, price deals, promotion allowances, sales contests

within a company's own sales force promotions

contests, bonuses, meetings, sales aids

trade promotion

refers to promotions aimed at intermediaries

why are sales promotions difficult to manage

they include a variety of activities and have specific criteria

why are sweepstakes and contests regulated

to ensure they are not considered gambling

why are trade promotions that involve frequent price adjustments monitored

cause they can be considered discriminatory pricing

price

the amount of money that is charged for something of value

profit oriented objectives

sets a specific level of profit as an objective often stated as ROI or return on sales

profit maximization objective

seeks to get as much profit as possible - however, higher prices don't always mean higher profits - ex. cellphones used to be more expensive and didn't sell as many

benefit corporation

legal corporate structure that allows for goals that may include positive impacts on society, employees, the community, and environment

sales oriented objective

seeks some level of unit sales, dollar sales, or share of market without referring to profit - ex. when P&G focused on sales rather than profits after the recession to help during the growing economy

status quo objective

dont rock the boat objective - managers satisfied with their current market share and profits

administered prices

consciously set rather than letting daily market forces decide prices - firms cant always control how different parties in the distribution channels set their prices