MOS 1021 Exam 3

what is the promotion mix?

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

what is advertising?

any paid form of non-personal presentation and promotion of something by an identified sponsor

what are examples of advertising

Broadcast, print, online, mobile, billboards, tv commercials, radio

what are pros of advertising

1. Controlled messaging

2. Can reach large masses across all geographic areas

3. Because of public nature, consumers tend to view advertised products as more legitimate

4. Expressive

5. Can be used to build up a long-term image

6. low cost per exposure

7. repeats message many times

8. some can be done on smaller budgets

what are cons of advertising

1. impersonal and lacks the direct persuasiveness of company salespeople

2. can be seen as a nuisance (negative impact on attitudes)

3. carry on only a one-way communication, so audience does not feel that it has to pay attention or respond

4. can be costly

what is sales promotion?

short-term incentives to encourage the purchase or sale of a product/service

what are examples of sales promotion

Discounts, coupons, demonstration, events, contests, bundles

What are pros of sales promotion

1. wide assortment of tools have many unique qualities

2. Increases sales (but sometimes only temporarily)

3. Generates interest in new products

4. Attract consumer attention

5. engage consumers

6. offer strong incentives to purchase

7. can be used to dramatize product offers and boost sagging sales

8. Invites and reward quick response

What are cons of sales promotion

- May diminish brand reputation (lower price/discounts may make people think its lower quality)

- effects are short lived, not as effective in building relationships

what is personal selling?

personal presentations by the firm's sale force for the purpose of engaging customers, making sales, and building customer relationships

what are examples of personal selling?

Sales presentations, trade shows, and incentive programs

what are pros of personal selling

1. most effective tool in building up buyers' preferences, convictions, and actions

2. personal interaction so each person can observe the other's needs and characteristics and make quick adjustments

3. builds relationships

4. buyer feels greater need to listen and respond

What are cons of personal selling

1. Requires a longer-term commitment than does advertising

2. Most expensive promotion tool

What is experiential/engagement marketing

Create an interactive experience between customers and a product/brand

What are examples of experiential/engagement marketing

Cheez it crackers made an immersive diner experience that allowed customers order cheez it foods and interact with theme

what are the pros of experiential/engagement marketing

- Consumers not viewed as passive message recipients

- Can create emotional connection to product/brand (breeds customer loyalty) (memories)

what are the cons of experiential/engagement marketing

Taxing on time and resources

what is public relations (PR)?

building good relations with the company's various publics by obtaining favourable publicity, building a good corporate image, and handling unfavourable rumours/stories

what are examples of PR

Press releases, conferences, generated online content, sponsorships, events, and webpages

Examples of PR

1. Press release

2. publicity

3. public affairs

4. lobbying

5. investor relations

6. development

7. Spotify wrapped buzz

what are the pros of PR?

1. Messaging can be seen as more objective and trustworthy

2. Reaches those who avoid sales people and ads

3. Build good relations with consumers, investors, the media, and their communities

4. Has power to engage consumers and make a brand part of their lives and conversations

5. Can have a strong impact at a much lower cost than advertising can

6. Can be picked up by different media or shared virally

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what are the cons of PR?

1. Limited control of message

2. Can have limited and scattered use

3. Marketers and PR

people often do not have the same goals (communicating vs advertising)

what is earned media

unpaid content generated about a product, brand, or organization

what are examples of earned media

news stories, magazine articles, social media content

what is direct and digital marketing?

engaging directly with carefully targeted individual consumers and communities to both obtain an immediate response and build lasting responses

what are examples of direct and digital marketing

Direct mail, email, catalogues, online and social media, mobile marketing

what are the pros of direct marketing?

1. More targeted

2. can be created quickly

3. interactive

4. well suited to highly targeted marketing efforts, creating customer engagement, and building one-to-one customer relationships

What is shock appeal

- Words, images, and/or actions intended to deliberately startle and offend

- may contain controversial, disturbing, provocative

- intended to capture attention

what does shock appeal do

leads to the greatest attention, recall, and recognition, but can have a negative impact on brand image

what is sexual appeals in advertising

- Words, images, and/or actions intended to deliver a message designed to evoke sexual thoughts, feelings, and/or arousal in a target audience

- May be explicit or subtle

- Appear to attract consumer attention

- Appear to distract from processing of advertised message

what does sexual appeal do

Had no significant effect on:

- Memory of product/brand

- Intention to purchase product

- Were evaluated less favorably than non-sexual ads

- Resulted in more negative attitudes toward a brand

what is a push promotion strategy?

promotion strategy that calls for using the sales force and trade promotion to push the product through channels

what is a pull promotion strategy?

promotion strategy that calls for spending a lot on consumer advertising to induce final consumer to buy the product, creating a demand vacuum that pulls the product through the channel

what are some ways to do pull promotion

Advertising, customer promotion, and direct and digital marketing

what promotion strategy does a business to consumer company use?

pull strategy (more funds into advertising, followed by sales promotion, personal selling, and then public relations)

what promotion strategy does a business to business company use?

push strategy (more funds into personal selling, followed by sales promotion, advertising, and public relations)

what are some PR tools?

1. news

2. special events

3. written materials

4. audio materials

5. corporate identity materials

6. public service activities

7. the web and social media

what is a product?

anything (tangible or intangible) that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or a need

what is a good

Physical/virtual item capable of being delivered to a purchaser

what is a service?

an activity, benefit, or satisfaction (actions, skills, knowledge, labor) offered for sale that is essentially intangible and does not result in the ownership of anything

what is a tangible attribute

physical characteristic that is discernible by the senses

what is an intangible attribute

symbolic or subjective characteristic (opinionated)

what are examples of intangible attributes

stylish, reliable, comfortable

What are pure commodity goods

Products used to make other goods

What are examples of pure commodity goods

Salt

what is a pure tangible good

No services accompany the product

What are examples of pure tangible goods

soap, toothpaste, salt

what are pure services

consists primarily of a service and offers no tangible goods

What are examples of pure services goods

Doctor's exam, financial services, consulting

what are balanced goods

equally weighted between goods and services

what is an example of balanced goods

fast food restaurants

what is the total product concept

Process of developing a product that helps to identify its major benefits

what are the three parts of the total product concept?

1. core product

2. actual product

3. augmented product

what does core product refer to?

the basic definition of a product and the fundamental benefits derived from it

what does the actual product refer to?

1. Product that is sold to customers

2. developing point of product differentiation

3. Standing out from competitors

4. Turning the core benefit into an actual product

What does actual product include

1. product and service features

2. Design

3. quality level

4. brand name

5. packaging

what does augmented product refer to?

additional non-tangible, service related features that create better customer experience

what are examples of augmented products

warranty, delivery, assembly

what is a consumer product?

a product bought by final consumers for personal consumption

what is a convenience product?

a consumer product that customers buy frequently, immediately, and with minimal comparison and effort

what are examples of convenience products

laundry detergent, candy, magazines, fast food

what are characteristics of convenience products

1. Widely available

2. inexpensive

3. Purchased frequently

what do marketers have to do with convenience products

make packaging stand out, look for a lower price point and make it very available

what is a shopping product?

a consumer product that the customer usually compares on attributes like style and price

what are characteristics of shopping products

1. Less widely available (i.e. selective distribution)

2. moderately priced

3. Purchased less frequently

4. moderate effort and time spent in comparison and research

5. deeper sales support provided to help customers in their comparison efforts

what are examples of shopping products

furniture, clothing, major appliances, hotel services

what do marketers have to do with shopping products

1. Effective messaging to inform why product is better than competitors

2. Positioning

what is a specialty product?

a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase efforts

what are examples of specialty products

luxury and high-end items: specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists

what are characteristics of specialy products

1. Limited availability

2. high price

3. Purchased rarely

4. deliberately sought (low comparison)

5. Buyers invest only the time needed to reach dealers carrying the wanted brands

what do marketers have to do with specialty products

1. Targeted promotion to make sure it gets to the right people

2. Build brand status so focus less on building the product but more on building the brand

what is an unsought product?

a consumer product that the consumer either does not know about or knows about but does not normally consider buying

what are examples of unsought products

life insurance, preplanned funeral services, and blood donations to the Red Cross, fire extinguishers

what are characteristics of unsought products

1. Unknown to customers or undesirable to customers

2. Delay of benefits are common feature

what do marketers have to do with unsought products

1. extensive promotion to let people know it exists

2. counter negative views

what are product and service decisions based on?

1. product and service attributes

2. branding

3. packaging

4. labelling and logos

5. product support services

what is product quality?

the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

what is the total quality management approach?

all company's people are involved in constantly improving quality

what is the return-on-quality approach?

viewing quality as an investment and holding quality efforts accountable for bottom-line results

what are the two dimensions of product quality?

level and consistency

what is quality level/performance quality

the product's ability to perform its functions

what quality level do companies choose

a quality level that matches target market needs and the quality levels of competing products because few customers want or can afford the high levels of quality offered in products

what is conformance quality?

freedom from defects and consistency in delivering desired performance level

what is product style

Simply describes the appearance of a product (does not necessarily make the product perform better)

what is product design

- Contributes to a product's usefulness as well as to its look

- Goes to the very heart of a product

what is the process of product design

1. observing customers

2. understanding their needs

3. shaping their product-use experience

what is a brand?

a name, term, sign, symbol, design, or combo of these, that identifies the products or services of one seller or group of sellers and differentiates them from those competitors

why is brand important

1. add value to a consumer's purchase

2. provide legal protection for unique product features

3. helps seller to segment markets

what is packaging?

the activities of designing and producing the container or wrapper for a product

why is packaging important

1. hold and protect the product

2. creates immediate consumer recognition

3. may be the seller's best and last chance to influence buyers

4. growing environmental concerns and product safety

why are labels and logos important

1. identifies the product or brand

2. describe several things about the product

3. Promote the brand and engage customers

4. Can support the brands positioning and add personality

why are product support services important

1. important part of customer's overall brand experience

2. Keeping customers happy after the sale is the key to building lasting relationships

what is brand equity?

the differential effect that knowing the brand name has on customer response to the product or its marketing

what is brand strength measured by?

Young & Rubicam's BrandAsset Valuator:

1. differentiation

2. relevance

3. knowledge

4. esteem

what does differentiation mean

what makes the brand stand out

What does relevance mean

how consumers feel it meets their needs

What does knowledge mean

how much consumers know about the brand

What does esteem mean

how highly consumers regard and respect the brand

what is brand value?

the total financial value of a brand

what are advantages of brand value

1. High level of consumer brand awareness and loyalty

2. more leverage in bargaining with resellers

3. With high credibility, can more easily launch line or brand extensions

4. Offers defense against price competition

5. Forms basis for building strong and profitable customer engagement and relationships

6. Customer equity