Combined Knowt FS set of marketing exam 2 notes

Promotion (Narrower approach)

Sale promotion

Promotion (Wider approach)

Market communication

Promotion

A dialog between the company and its stakeholders to create brand awareness, inform, persuade to purchase and create company’s image as well as to get feedback from the receiver

Promotion Mix

The set of tools used by a company for marketing communication, including advertising, sales promotion, personal selling, public relations, and direct marketing

Advertising

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Mass-Media Advertising

Advertising tools that include press, radio, and television

Internet Advertising (Examples)

Baner, pop-up, and skyscraper

Out-Door Advertising

Posters, billboards, and advertising constructions

Point-Of-Purchase Advertising

Advertising tools such as shelf talkers, branded fridges, and displays

Personal Selling

Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders

Personal Selling Tools

Sales presentations, sales meetings, and trade shows

Sales Promotion

A variety of short-term incentives to encourage trial or purchase of a product or service

Sales Promotion Tools

Contests, games, lotteries, premiums and gifts, sampling, coupons, low interest financing, rebates, and loyalty programs

Sales Promotion Categories

Consumer promotion and trade promotion

Public Relations

A variety of programs designed to promote and/or protect a company's image

Public Relations Tools (Examples)

Publicity, press conferences, press kits, annual report, charitable donations, sponsorship, company magazine, community relations, open days, lobbying, system of visual identity, and system of non-visual identity

Public Relations Functions

External and internal functions

Direct Marketing

Use of non-personal contact tools (mail, telephone, e-mail) to communicate directly with a specific customer

Push Strategy

A strategy where the producer promotes to the intermediary, and the intermediary promotes to the customer to drive demand

Pull Strategy

A strategy where the producer promotes directly to the customer to create demand that then pulls the product through the intermediary

Market Skimming

A pricing objective used when a sufficient number of buyers have a high current demand, unit costs of producing small volumes are not too high, and the high price communicates an image of a superior product.

Maximum Sales Growth

One of the objectives of pricing strategies focused on increasing the volume of sales to gain market share.

Survival

A fundamental pricing objective aimed at keeping a company operational during difficult market conditions.

Product-Quality Leadership

A pricing objective where a company seeks to be the leader in the market by offering the highest quality products, often at a premium price.

Penetration Strategy

A strategy for introducing a product to the market characterized by setting a low initial price to attract a large number of customers.

3 Cs Model

A model for price setting that considers Customers' assessment of unique product features (ceiling), Competitors' prices and substitutes, and Costs (floor).

Cost-based Pricing Policy

A pricing approach that is easy to use and guarantees a return on costs, but lacks customer analysis and ignores competitor pricing.

Markup Pricing

Also known as cost plus pricing, this method involves adding a standard percentage to the unit cost of a product.

Going-rate Pricing

A competitive pricing method where a firm bases its price largely on the prices of its competitors.

Value Pricing

A strategy exemplified by Decathlon where customers receive very good quality, private-label brands, and low prices through a wide selection.

Perceived Value Pricing

A pricing method based on the buyer's perception of value rather than the seller's cost.

Freemium

A pricing method where a basic product or service is provided free of charge, while money is charged for additional features or services.

Functional Discounts

Also known as trade discounts, these are price reductions offered by manufacturers to trade-channel members for performing certain functions.

Loss-leader Pricing

A promotional pricing strategy where a firm drops the price of a well-known brand to stimulate additional store traffic.

Psychological Discounting

A promotional pricing method that sets an artificially high price and then offers the product at substantial savings.

Discriminatory Pricing

Adapting prices to accommodate differences in customers, product forms, locations, or timing, such as customer-segment pricing or location pricing.

Captive-product Pricing

A product-mix pricing strategy for items that must be used along with a main product, such as razors and blades.

Product-bundling Pricing

A product-mix pricing strategy where sellers combine several products and offer the bundle at a reduced price.

Contextual Pricing

The concept that the same product can have different prices based on the setting, such as a Cola being $3\,zł$ in a convenience store versus $15\,zł$ on an airplane.

Distribution

All the decisions and activities to moving goods and services on produced to consumers.

Distribution Channels (Marketing or Trade)

Sets of interdependent organizations involved in the process of making a product or service available for use or consumption.

Transactional Functions

Functions of marketing intermediaries that include purchase, sale, and risk taking.

Logistical Functions

Functions of marketing intermediaries that include creating assortment, storage, sorting, and transportation.

Facilitating Functions

Functions of marketing intermediaries that include financing, product classification, information, and marketing research.

Direct Channels

A short channel type where the Producer sells directly to the Consumer.

One-level Channels

A short channel type consisting of Producer, Retailer, and Consumer.

Two-level Channels

A short channel type consisting of Producer, Wholesaler, Retailer, and Consumer.

Multi-level Channels

Long channels consisting of Producer, Agent, Wholesaler, Retailer, and Consumer.

Omni-channel Retailing

The integration of all physical channels (offline) and digital channels (online) to offer a seamless customer experience.

Intensive Distribution

A form of distribution aimed at having a product available in every outlet, typically to achieve mass market selling of convenience goods.

Selective Distribution

A form of distribution involving the use of more than a few but less than all intermediaries, typically for shopping and some specialty goods.

Exclusive Distribution

A form of distribution that involves severely limiting the number of intermediaries to one or a few dealers in the area, often for specialty goods and industrial equipment.

Product

Anything that can be offered on the market to meet the needs or desires of consumers, including physical goods, services, ideas, persons, or places.

Product features vs. benefits

Features are the technical characteristics of a product (e.g., A19 Pro processor), while benefits are the value or satisfaction the customer gains (e.g., faster performance).

Three levels of the product (Th. Levitt)

A product structure proposed in the 1980s consisting of the core benefit, the basic product, and the augmented product.

Five product levels (Ph. Kotler)

A model consisting of the core benefit, basic product, expected product, augmented product, and potential product.

Core benefit

The fundamental service or benefit that the customer is really buying (e.g., connectivity for a mobile phone).

Expected product

The minimum standards consumers anticipate, such as a mobile phone having a camera, GPS, and text messaging capabilities.

Potential product

All the transformations and augmentations a product might undergo in the future, such as holographic displays on phones.

Product Assortment Width (Breadth)

The number of different product lines a company produces or a retailer carries.

Product Assortment Length

The number of products within a specific product line.

Product Assortment Depth

The different versions or variants of the same product that exist in each product line (e.g., croissant with chocolate vs. pistachio).

Packaging functions

The key roles of packaging include protection, providing information, differentiation, advertising, and facilitating sale organization and consumption.

Intelligent packaging

Packaging that protects a product while also monitoring its condition, communicating with consumers, or supporting logistics via temperature or freshness indicators.

Vaccine Vial Monitor (VVM)

A time-temperature indicator used on vaccine vials to show if the product is usable based on the color change of an inner square compared to an outer circle.

Convenience products

Consumer products categorized into staples, impulse goods, and emergency goods based on shopping habits.

Product Life-Cycle (PLC) Stages

The standard progression of a product through introduction, growth, maturity, and decline.

Fashion products

Products characterized by a very rapid rate of adoption in the market, with maturity and decline varying by the specific trend.

Fad products

Products with a very short life cycle, characterized by rapid adoption, a very short maturity phase, and an equally rapid decline.

Innovators

The first $2.5\%$ of consumers to adopt a new product, described as tech enthusiasts.

Early Adopters

The second group to accept a new product, representing $13.5\%$ of the market, often described as visionaries.

Laggards

The final group of consumers to adopt a new product, representing $16\%$ of the market (skeptics).

BCG growth-share matrix

A framework for strategic market planning used to balance a portfolio by analyzing market growth rate and relative market share.

Manufacturer brand

A branding strategy where the producer of the product owns the brand name.

Retailer/Store brand

A branding strategy where the retailer or store owns the brand rather than the manufacturer.

Family brands

A strategy where one name is used to brand all of a company's product lines and products.

Individual brands

A strategy where different names are used for each of a company's products (e.g., Nestlé using KitKat, Purina, and Gerber).

Umbrella brands (Joined brands)

A combination of a family brand and an individual brand name (e.g., Nestlé Aero).

Brand extension

Using an existing brand name to enter a new product category.

Brand dilution

A negative consequence of brand extension where the original brand's reputation is weakened (e.g., Colgate Beef Lasagna).

Marketing Research

A set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can support decision makers.

80% of information

The proportion of successful decision making that should be based on information, alongside 10% intuition and 10% inspiration.

Marketing Research Process Step I

Defining the objectives and research needs by identifying the specific problem to be solved, such as a new entry or sale decrease.

Marketing Research Process Step II

Designing the research, which involves identifying the type of data/information needed and determining the research necessary to collect them.

Marketing Research Process Step III

Collecting data, which can include primary data (field research) or secondary data (desk research).

Marketing Research Process Step IV

Analyzing the data and developing insights, turning raw data into a form that is useful for decision makers.

Marketing Research Process Step V

Developing and implementing an action plan, where the analyst prepares and presents results in a report.

LOHAS

An emerging trend mentioned as a possible problem/context for defining research needs in Step I of the research process.

Secondary data (desk research)

Pieces of information that have been collected prior to the start of the focal research project, such as statistics and sales transactions.

Primary data (field research)

Data collected to address specific research needs using focus groups, in-depth interviews, observations, and surveys.

Qualitative research

Research that uses broad, open-ended questions to understand human behavior from the respondent’s perspective and deals with words and meanings.

Quantitative research

Research involving structured responses that can be statistically tested, dealing with numbers and answering "How many/much?" questions.

Likert type questions

A type of closed survey question used to measure levels of agreement or disagreement, such as on a scale from "Strongly Agree" to "Strongly Disagree".

Dichotomous questions

A type of closed question in a survey that typically offers two choices, such as "Yes/No".

Double-barreled questions

A questionnaire flaw where a single question refers to more than one issue but allows for only one set of responses.

Leading questions

Questions that steer respondents toward a particular response regardless of their true beliefs.

Mystery Shopper

A specific type of participate observation used as a technique in qualitative research.

Projective methods of research

Indirect qualitative methods used to tap into consumers’ deep motivations, beliefs, attitudes, and values by having them discuss other brands or situations.

Word Association techniques

A projective method where a respondent is asked to speak the first thought that comes to mind within 3-4 seconds after hearing a word.

Completion techniques

A projective method where a respondent is given an incomplete story or line and asked to provide an ending.