Green deleted marketing final

marketing mix

marketing mix

product, place (distribution), promotion, price

price

given up in an exchange to acquire a good or service

value

price benefit relationship; how much you get from the price you pay; benefit/price

volume oriented pricing

emphasis is on achieving a set market share or unit sales volume; focus on as much as possible; lower price

profit oriented pricing

emphasis on profit maximization or acheiving a specific target return on investment; maximize the difference in what you charge versus what you spend

status quo oriented

emphasis on maintaining existing prices or keeping prices in line with competitor's prices; copying competition pricing

demand schedule

a table showing the relationship between price and quantity demanded

demand curve

a graph showing the relationship between price and quantity demanded

elasticity coefficient formula

% change in quantity / % change in price

unitary elasticity

increase in sales exactly offsets a decrease in prices so total revenue remains the same

cause of elastic and inelastic demand

Luxury. Time period. Availability of substitutes. Necessity and demand of a commodity. The proportion of income spent on the good.

effects of elastic and inelastic demand on revenue

increases in price result in decreases in revenue means demand is elastic

breakeven point

the number of units or product that must be sold at a given price in order to break even

breakeven analysis

a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output

breakeven formula

fixed cost / (selling price - variable cost)

markup pricing

to establish a selling price by wholesalers and retailers

markup formula based on cost

cost + markup%(cost) = selling price

markup formula based on retail

cost / (1-markup%) = selling price

cash discounts

reduction in list price that rewards customers for paying their bills promply (2/10, net 30)

cash discount calculation

(%)/(discount time). Net (payment due)

FOB origin

buyer pays for freight; title to the goods passes to the buyer at the point of loading shipment onto the mode of transportation

FOB destination

seller pays for freight; title to the good passes to the buyer once the shipment is delivered to the buyer

odd-even pricing

setting prices a few dollars or cents under an even number

loss-leader pricing

a market strategy that prices products lower than the cost to produce them in order to attract new customers or to sell additional products to customers

price fixing

an agreement between two or more firms on the price they will charge for a product; collusion; illegal under the Sherman Act and FTC Act

price discrimination

Robinson-Patman Act prohobits firms from charging different prices to different buyers for the same product; applies to business transactions and tangible goods only

predatory pricing

charging a very low price for a product with the intent of driving competitors out of business and later raising prices; illegal under Sherman Act and FTC Act; courts see it as price below cost

deceptive pricing

price deals that mislead consumers; outlawed by the FTC Act; include bait and switch and former price comparisons

former price comparisons

when a seller represents a price as reduced when it really is not; offered in good faith at a higher price for a substancial previous period and not just for establishing a reference

promotion

communication by marketers to inform, persuade, and remind potential buyers of a product in order to influence an opinion or elicit a response

promotion mix

advertising, public relations, sales promotion, personal selling, social media

integrated marketing communications

designing marketing communications programs that coodinate all promotional activities to provide a consistent message across all audiences in order to ensure image is consistent

sales promotions

short term incentives used to arouse interest in buying a good or service

public relations

describes a variety of communication activities that seek to create and maintain a positive image of an organization and its products among various publics, including customers, gov officials, and shareholders

communications model

sender, encoding, [noise], message channel, decoding the message, receiver, feedback channel, (repeat)

sender

trying to convery a message; a manager or manager

receiver

customers, viewers/listeners, new media, clients

encoding

gettings thoughts in order for advertisements, sales presentation, store display, coupon, press release, and social media

decoding

receiver interpretation of message

noise

communication disruption through other advertisements, news articles, and other store displays

feedback

receiver's response from market research, sales results, change in market share, and social media

3 primary goals of promotion

informing, persuading, and reminding

informing in PLC

relates to introduction

persuading in PLC

relates to growth

reminding in PLC

relates to maturity

advertising

impersonal, one-way mass communication about a product or organization that is paid for by a marketer

advertising campaign

a series of related avertisements focusing on a common theme, slogan, and set of advertising appeals that promotes a particular product or company for a defined period of time

advertising campaign development process

review the marketing plan, specify ad objectives, and develop the creative plan/media plan

review marketing plan

review marketing plan

set ad objectives

set ad objectives

creative plan

identify product benefits, select the execution styles, create ad executions

media plan

class (major media group) vs vehicle (choice within class)

advertising objective

identify the specific communication tasks that a campaign should accomplish for a specified target audience during a specified time period

examples of advertising objectives

create awareness, correct misperception, build brand image

execution style

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

slice of life

ad is drama with problem, product is the hero (bounty, minute maid energy)

testimonials

person is talking about a perosnal experience with product

personality/product symbol

campaign is built around a fictional character (geico)

imagery

commercials with not as much info but are visual interesting; photography, music, aim is brand image (perfume)

straight sell

spokesperson telling about the product (weight loss - marie osborne)

comparisons

comparing directly or indirectly products to competition (cell service, apple)

fear appeal

negative consequences of not using a product or of using the competitor's product (security system)

develop the ad execution

copy, layout, storyboard, script

copy

writing words of ad

layout

for print ad, radioscript, television storyboard

storyboard

describes the visual and audio

script

written dialogue or guide used by sales reps

major media classes

newspaper, magazines, radio, television, internet, outdoor media

newspaper

geographic selectivity, limited demographics, short-term commitment, immediacy, short lead time, expensive

magazines

reproduction, demographic and regional selectivity, long life, long lead time

radio

low cost, immediacy, short life, background noise, high frequency required

television

wide audience, low cpm, immediacy, demographics pos/neg, campaign cost, long lead time

internet

narrow target ability, short lead time, moderate cost, difficult to measure effectiveness

outdoor media

repetition, moderate cost, geographic selectivity, lack demographics, high noise level

factors to consider when selecting a media class

cost (cpm), target audience considerations, geographic coverage required, lead time, frequency required, selectivity, medium life span, nature of the message

geographic selectivity

media classes may have specific areas an advertiser can zero in on without spill over

demographic selectivity

reaching a specific audience

target market media usage

use the medium that the target market uses

cost (cpm)

cost per thousand, allows for price comparison to reach a thousand people between media forms

life

how long the ad lives

nature of message

the goal of the ad campaign

lead time

how far in advance for scheduling

paid search advertising

when someone looks up a particular product or service, the ads show up on the search engine results page

organic results

search engines generate organic search results based on your site's relevancy to a user's search query

keywords

words or phrases people use to look for things on the internet

SERP ad position

adwords show how often keywords show up and allow the business to bid on these keywords, orders by how well the websites are and how relevant they are to the keywords

consumer sales promotion

sales promotion activities targeting the ultimate consumer

trade sales promotion

sales promotion activities targeting a marketing channel member, such as a wholesaler or tailer

advantages of sales promotions

product awareness, customer involvement and loyalty, support other promotions, reduce inventory

disadvantages of relying on sales promotion too heavily

struggle to develop long term goals for growth

consumer sales promotion types

coupons, rebates, premiums, loyalty programs, contests, sweepstakes, sampling

coupons

a certificate that entitles consumers to an immediate price reduction when they buy the product

rebates

a cash refund given for the purchase of a product during a specific period

contests

promotions in which participants use some skill or ability to compete for prizes

sweepstakes

promotions that depend on chance, with free participatioin

premiums

an extra item offered to the consumer when the consumer purchases a produc

loyalty programs

a promotional program which rewards consumers for making multiple purchases of a particular good or service

sampling

a promotional program that allows the consumer the opportunity to try a product or service for free

trade sales promotions types

slotting allowances, trade allowances, cooperative advertising, push money, point-of-purchase materials, conventions and trade shows

cooperative advertising

an agreement between a manufacturer and retailer in which the manufacturer pays a certain percentage of the retailer's advertising costs assocated with the manufacturer's product