UARK MKTG 34303 Exam 2 Paul Niemann

Value

Value = Benefit - Cost

Value Proposition

A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

The 3 Value Elements

Clear, Compelling, and differentiating

Consumer Products

Purchased by consumer / "end user"

Business Products

Purchased by other industries/firms- Production goods

The 4 levels of a product

Core Product, Tangible product, Augmented product, Promised product

Core Product

Basic system that:

• Satisfies the most basic need of the customer

•Complex/Individualized/vague

• Ex:, Snack bar purchase seeking health, convenience or to satisfy hunger

Tangible Product

• Perceptible by touch

• The product features, quality level, brand name, styling, and packaging

• Importance varies across products,situations and individuals

The Augmented Product

• Includes the tangible product and all of the services that support it

• When the tangible product is a service, there is still an augmented product that includes support services

• Creates additional opportunities to differentiate the product from. competitive offerings

The Promised Product

• Implied promise

• Long-term result

• The promise could be FINANCIAL or ASPIRATIONAL

• Core Product and Promised Product CAN be the same

• Every product has an implied promise, which is a characteristic that is attached to the product over time.

The 4 Groups of Products

Convenience Product, Shopping Product, Specialty Product, and Unsought Product

Convenience Products

• Primary marketing strategy is extensive distribution

• Low unit value, and they are highly standardized

• Inexpensive product/minimum amount of effort

Shopping Products

• More expensive/occasionally purchased

• Consumer compares a number of options

• Heterogeneous = unique shopping products

• Homogeneous = Very similar

Specialty Products

• Extremely unique

• Price is not a factor

• One-of-a-kind / custom

• What is Burning Man?

Unsought Products

• Hope to NEVER buy

• Customer is unaware or hopes to never need

• Ex: Pest Control

The 7 Main Types Of Advertising Media

Billboards (outdoor), TV, Radio, Magazine, Newspaper, Direct Mail, Digital

Marketing Communication

includes all the messages, media, and activities used by an organization to communicate with the market and help persuade target audiences.

Integrated Marketing Communication

the process that enables brands to create consistent messaging across all channels.

Common Methods Of Communication

Advertising, Public Relations (PR), Personal Selling, Sales Promotion, Direct Marketing, Digital Marketing, Guerilla Marketing

Advertising

any paid for of presenting ideas, good or services by an identified sponsor

Public Relations (PR)

- create goodwill between an organization and the "public" or target markets.

- is the process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and the people it serves

Personal Selling

Uses people who develop relationships with target audience

Sales Promotion

Temporarily boost sales of a product or service by adding to the basic value offered

Direct Marketing

Sell directly to consumers rather than going through retailers

Digital Marketing

Websites to social media marketing and content

Guerilla Marketing

• Unconventional

• Innovative

• Usually low-cost marketing tactic

• generate attention and achieve maximum exposure for an organization

A-I-D-A

Attention, Interest, Desire, Action

Target Market

A specific group of potential customers who a business aims to reach with its products or services.

Example: "Schools are a key target market for this app"

S.M.A.R.T. Goals

• Specify

• Measurable

• Achievable

• Realistic

• Time-related

Informative Advertising

Creates awareness, Announces new products/programs, Educates

Persuasive Advertising

Convince they are the best, Enhance image, Goal = switch brands, try new, loyal

Reminder Advertising

Reminds people of their need

Product-focused Advertising

Ads that promote goods or services

Institutional Advertising

Promotes organizations, issues, places, events, political figures

Public Service Announcements (PSA)

Social-welfare issues. Sponsored by nonprofit organizations

3 titles of people at an ad agency who create the ads

Creative Director, Copywriter, Art Director

The Creative Strategy

-Messaging

-What should the key message be?

-What is the Call To Action?(CTA)

-How should the brand promise be manifested in the ad?

Reach

The number of different persons or households exposed to a particular media vehicle or media schedule at least once during a specified time period (usually measured as 12 weeks)

Frequency

The number of times within a given time period that a consumer is exposed to a message.

Continuity

The timing of media assertions (e.g. 10%in September, 20% in October, 20% in November, 40%in December, and 10% the rest of the year).

What Makes Digital Marketing Unique

It is interactive, Mobile and portable, Measurable and data driven, sharable, and synergistic

Mobile Marketing

• Much of what consumers can do on desktop can also be done on Mobile.

• 60% mobile (phone and tablet) compared to 40% computer

• Mobile has the advantage of reaching customers anytime & anywhere, without having to be in front of a computer. Mobile includes text messaging.

Social Media Marketing

• Social Media Marketing is NOT the same as Digital Marketing

• It's more interactive than websites, which tend to be static.

• It has the ability to reach millions of possible customers with a single post. First, Social Media sites get your attention, then turning you into followers, and then into customers.

Search Engine Optimization (SEO)

is the practice of getting your business to appear higher in search result rankings

Search Engine Marketing (SEM)

is a digital marketing strategy that uses paid advertising to increase a business's visibility in search engine results pages (SERPs). Also known as pay-per-click.

Common metrics used to measure the success of SEM include:

Impressions and Click Through Rate (CTR)

Marketing Analytics

is the process of analyzing data to evaluate marketing performance and make improvements where possible

Data Analytics

is the process of collecting, organizing, and analyzing data to draw conclusions, make predictions, and drive decisions. It's a multi-disciplinary field that uses a variety of techniques, including math, statistics, and computer science.

The 3 items that nearly every industry has

Trade Show, Trade Association, Trade Publication

The 3 companies that make up the traditional distribution channel

Manufacturer, Wholesaler, Retailer