**All the ways you get a product or service to people to facilitate the “exchange”**
4
New cards
exchange
trading one thing for another thing of value and facilitated by marketing
5
New cards
larger marketing context of advertising
* understand relationship between product and marketplace * locate and understand customers and their wants and needs * communicate it in a powerful way
\
6
New cards
key drivers of marketing decision, what advertisers are first thinking about
* establishing a target market * classifying your product * setting your pricing * determining placement with distribution approach * choosing types of promotion
7
New cards
target markets
The market segment or group within the market segment toward which all marketing activities will be directed.
8
New cards
market segmentation
* **Marketers** select specific markets that offer the greatest potential and fine-tune the mix of marketing elements to match the needs and wants of the target market. * identify groups with shared needs and characteristics
9
New cards
types of markets
consumer and business
10
New cards
cosumer markets
* target of most advertising * consumers - people who buy the product for their own or someone else’s personal use
11
New cards
consumer segmentation
* grouping customers based on shared characteristics to tailor messages * defined by * demographic * geographic * psychographic * behavioristic
\
12
New cards
demographic
based on a population’s statistical characteristics with quantifiable factors such as gender, age, ethnicity, occupation, income
13
New cards
geographic
based on geographical regions with shared characteristics such as culture, traditions, lifestyles, also often combined with geographic segmentation to make geodemographic segmentation
14
New cards
geodemographic segmentation
based on two principles
* people who live in the same neighborhood tend to be demographically similar * neighborhoods can be categorized by characteristics of populations and two or more neighborhoods can be placed in the same category, even though they are geographically separated
15
New cards
psychographic
defining consumer markets based on psychological variables including values, attitudes, personality, lifestyle/activities
16
New cards
behavioristic
grouping os consumers by their purchase behavior - how they buy and use products/brands, determine their user status
17
New cards
user status
varying degrees of loyalty to certain brands and products and different types
18
New cards
sale user
user status type, the most brand loyal and require the lease amount of advertising and promotion
19
New cards
semisole users
user status type; typically use Brand A but have an alternate selection if it is not available or if other is promoted with a discount
20
New cards
discount users
user status type; semisole users of competing brand B, they won’t buy brand A at full price but perceive it well enough to buy it at a discount
21
New cards
aware nontriers
user status type; use competitive products in the category but haven’t taken a liking to Brand A but aware
\
22
New cards
trial/rejectors
user status type; tried brand A because of its advertising message, but didn’t like the product
23
New cards
repetoire users
user status type; perceive two or more brands to have superior attributes and will buy at full price. These are brand switchers; therefore, they are the primary target for brand advertising
24
New cards
behavioristic
usage rate: defining consumers and light, medium, or heavy users of products, purchase occasion: how often consumers buy a product; benefits sought: segmenting consumers based on the benefits being sought such as high quality, low price, the symbolism
25
New cards
benefits sought
segmenting consumers based on the benefits being sought such as high quality, low price, functionalitys
26
New cards
symbolism
consumer motivated by sex appeal, status/image, self identity
27
New cards
benefit segmentation
is prime objective of many consumer attitude studies for many successful and campaigns. Some product categories are characterized by substantial brand switching from one purchase to next, which occurs in response to different need states that consumers may experience
28
New cards
types of markets
consumer and business
29
New cards
business markets
organizations that buy natural resources, component products, and services that they resell and use to conduct their business, or use to manufacture another product
* gov agencies * retailers * wholesalers * banks
\
30
New cards
business market characteristics
* employ professional buyers and use systematic purchasing procedures * concentrated geographically * small numbers of buyers
31
New cards
B2B marketing
directed at people who buy goods and services for resale for use in a business or organization, or for manufacturing other products. Special advertising types:
* trade * professional
32
New cards
trade
advertisng type; targets resellers to promote distribution
33
New cards
professional
advertising type; targets professionals in a given industry
34
New cards
product classifications
* by market - consumer and industrial goods * by rate of consumption and tangibility - durable/non, services * by purchasing habits - convenience, shopping, specialty, unsought goods * by physical description - packaged, hard, soft, services
35
New cards
utility
product’s ability to satisfy both functional needs and/or psychological wants
36
New cards
functional utility
* form: provides a tangible good * task: performs a task * possesion: available for purchase * time: available when wanted * place: available where wanted
37
New cards
psychological utility
offers symbolic or psychological desire satisfaction, such as status or sex appeal
38
New cards
product life cycle
progressive stages in the life of a product - including introduction, growth, maturity, and decline - that affect the way a product is marketed and advertised
39
New cards
introduction stage
initial phase of the product life cycle when a new product is introduced, costs are highest and profits are lowest
* attract early adopters, people willing to try new services * create primary demand - consumer demand for whole product category * pull strategy - marketing, ads aimed to induce trial purchase * push strategy - marketing, ads aimed at getting products into the dealer pipeline and accelerate sales
40
New cards
growth stage
market expansion as more and more customers make their first purchases while others are already making their second or third purchase
* first substantial product * rapid market expansion * biggest rewards * ad expenditures decrease * individual firms realize first substantial profits
41
New cards
maturity stage
market is saturated with products, the number of new customers has dwindled, and competition is most intense
* profits diminish * selective demand * sales increase at expense of competitors * market segmentation, product positioning
42
New cards
decline stage
stage in the product life cycle when sales begin to decline due to obsolescence, new tech, or changing consumer tastes
* cease promotions * phase out the product
43
New cards
product positioning
the way it is ranked in consumer’s mind by the benefits it offers, way it is classified or differentiated
44
New cards
brand
* most important way any product can differentiate itself * combination of name, words, symbols, or design that creates core feeling
45
New cards
pricing element
the amount charged for a good or service, influences consumer perceptions of a brand
46
New cards
key factors influencing price
* market demand (law of supply and demand) * product and distribution costs * competition * corporate objectives
\
47
New cards
psychological pricing
setting a high price to make it seem valuable to influence customer behavior or perceptions
48
New cards
distribution (place) element
place, distribution, element is decided before ad is created to make a method of distribution and be consistent with the brand’s image
49
New cards
ways of distribution
* direct * indirect * intensive * selective * exclusive
50
New cards
direct distribution
direct distributors sell directly to consumers from the manufacturer, advertising burden carried entirely by manufacturer
51
New cards
indirect distribution
most companies market their products through a distribution channel that includes a network of resellers that operate between the producer and the user
52
New cards
intensive distribution
distribution strategy based on making the product available to consumers at every possible location
53
New cards
selective distibution
distribution method limits the number of outlet
54
New cards
exclusive distribution
this grants exclusive rights to a wholesaler or retailer in one geographic region
55
New cards
promotion/communication element
includes all marketing related communications between the seller and the buyer, based on target market and other areas of the 4 P’s
56
New cards
marketing communications /marcom
all planned messages that companies create to support their marketing objectives and strategies, work hollistically to make a message, surround consumer with integrated marketing
57
New cards
promotion key elements with IMC
advertising, PR, sales, sponsorship, events, branded content, direct marketing, personal selling
58
New cards
marketing mix
* after target market is designated * elements of marketing decision are determined * company has a complete product concept and a strategic basis for marketing to that target * written marketing plan
factual statement of the organization’s current situation and how it got there
* compiles all relavent facts about industry and company history, growth, products, etc. * points out strengths, weaknesses, threats, opportunities
61
New cards
companies in industry
leaders in the industry who are the players
62
New cards
growth patterns within industry
primary demand, what drives purchasing and potential growth areas
63
New cards
history of industry
tech advances, product expansion
64
New cards
characteristics of industry
distribution patterns, pricing patterns, product patterns, promotional activity, geographic characteristics
65
New cards
swot analysis: the company
think about
* history * size/growth * profitability * scope of business * reputation * strengths/weakessnes
66
New cards
swot: the product
* product story - development, quality, packaging * sales features - ex/inclusive * research - tech breakthroughs * sales history - profits and costs * share of market and trends
67
New cards
swot competition
* who is the competition - their products, audiences and goals, history, growth * strengths and weaknesses - sales features, quality, etc. * marketing activities of competition
68
New cards
marketing objectives
many kinds, “what” marketing needs to achieve
* corporate * brand * need-satisfying * business
69
New cards
corporate objectives
profit, return on investment, net worth - for the corporation overall
70
New cards
brand objectivse
based on needs of target market, focus on brand measurement and engagement - for the brand
71
New cards
need-satisfying objectives
as a producer of products or services to a satisfier of target market needs - for the consumer/product relationship
72
New cards
business objectives
specific, quantitative, realistic business goals, for the bottom line business
73
New cards
marketing strategy
statement of how the company is going to achieve its marketing objectives and involves
* re-stating the target market * stating the strategic position * determining the marketing mix
74
New cards
restating- the target market
first step beings by defining and selecting the target market using the processes of market segmentation and research
75
New cards
stating the strategic positioning
positioning refers to placing a brand competitively in the minds of customers
76
New cards
determining the marketing mix
a cost-effective mix (product, price, distrubution, and communication must be developed for each target market the company pursues
77
New cards
marketing tactics
a company’s objectives indicate where it wants to go; the strategy indicates the intended route; and the tactics determine the specific short-term actions to be taken
78
New cards
advertising plan
* swot analysis * creative strategy * creative concet * media strategy * measurement plan
79
New cards
creative strategy
* defines the target audience * restates objective * specifies key benefits * offers support for benefits * sets tone
80
New cards
media strategy
* defining media objectives * states media target * using media channels and timing
81
New cards
advertising strategy: research
* is a must * research provides information that drives marketing and advertising decision making * categorized in 2 ways - marketing and ad * uses creative and media strategy * used to gain understanding and key insights * informs the brand, audience, message, creative, and media
82
New cards
marketing research
systematic gathering, recording, and analysis of information to help managers make marketing decisions
* helps identify consumer needs and market segments * it provides information for developing new products and devising marketing strategies * it helps assess the effectiveness of marketing programs and promotional activities
\
83
New cards
advertising research
uncovers the information needed to make advertising decisions, systematic gathering and analysis of information to help develop or evaluate advertising strategies, individual ads, and campaigns
84
New cards
ad research: brand
* learn what consumers perceive about a brand and what qualities will lead to purchase and loyalty * establish a unique positioning concept for the brand - bundle values to shape brand’s position and image over time * inform a creative approach based on understanding of brand perception and the wants and needs of consumers
\
85
New cards
ad research: target audience
develop a rich, deep profile of brand’s target audience
understand demographics, behavior to gain valuable insight
define target audience to ensure the advertising will be delivered to the most prospects with the least waste
86
New cards
ad research: message
* decipher what messages your audience will respond to * find promising messages by studying consumer’s likes and dislikes * determine which message elements will prove most successful
\
87
New cards
ad research: the creative
* get an early read on which concepts the target audience responds best to, can drive which idea to go with (pre-testing) * evaluate the effectiveness of an ad campaign after it runs (post-testing) * provides useful guidelines for future - where to improve on creative
88
New cards
ad research: the media
* understand which media channels to put the creative to reach the target audience; understand consumer media behavior * evaluate their intersts via systematic gathering and analysis based on effects of media vehicles
89
New cards
research process steps
* analyzing the situation/defining the problem * conducting secondary research * establishing research objectives * conducting primary research * interpreting and reporting the findings
90
New cards
research process step 1
SWOT analysis, some use marketing information system (IMS)
91
New cards
secondary research
learn more about the market and competition, uses two types of research data - primary and secondary
92
New cards
primary data
customized information and can focus on any issue agency chooses
93
New cards
secondary data
information previously gathered and published, includes company records, billings, sales data, database services, etc.
94
New cards
research process step 3
specific research objectives in written statements, should be specific and measureable, what do we expect from research?
95
New cards
research process step 4
gather primary research through qualitative and quantitative research
96
New cards
qualitative research
* projective techniques to understand subconcious feelings, opinions, etc. * intensive techniques - in-depth interview, focus group, ethnographic research (understand how people live their lives)
97
New cards
quantitative research
* observations via people’s actions and data (UPC code) * experiment via test market * survey
98
New cards
research process step 5
report should state the problem and research objective and summarize the findings and draw conclusions
99
New cards
what research and strategic planning focuses most on
consumer behavior
100
New cards
consumer behabior
* the importance of knowing the customer, focal research on this * the mental/emotional processes and the physical activities of people that purchase/use goods and services to satisfy particular needs and wants