Term
Steps in Marketing Planning
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Definition
- perform SWOT analysis
- internal - strengths & weaknesses - core capabilities
- external - opportunities& threats - competition, target markets
- set marketing objectives
- develop marketing strategies to achieve marketing objectives
- implement, evaluation, and control of marketing plan
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Term
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Definition
- tangible good, idea, service, or idea that satisfies customer needs
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Term
| Product layers to benefit customer needs |
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Definition
- core product - basic benefits
- actual product - physical good or delivered servce
- augmented product - actual product plus supporting features such as warranty, repair, installation, and customer support
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Term
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Definition
- convenience product - frequently purchased
- shopping product - purchased w/ considerable time/effort
- specialty products - unique
- unsought products
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Term
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Definition
- continuous innovations - modifications
- dynamically continous innovations - pronounced modification
- discontinious innovations - totally new
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Term
| Stages in consumer aboption of a new product |
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Definition
- awarenes
- interest
- evaluation
- trial
- adoption
- confirmation (of value)
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Term
| Phases in New-Product development |
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Definition
- idea generation
- product-concept development & screening
- marketing strategy development - how it fits with other 3 P's
- business analysis
- technical development
- test marketing
- commercialization
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Term
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Definition
- name, term, symbol,or any other unique element that identifies one firm's product and sets it apart from the competition
- a good brand name is positive, memorable,fits target market & legal requirements
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Term
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Definition
- a brand's value to its organization over and above the value of the generic version of the product
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Term
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Definition
- intangibles that are acts, efforts, or performances exchanged from producer to user w/o ownership rights
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Term
| What are the major service characteristics? |
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Definition
- intangibility: can't see, touch, or smell
- perishability: can't store
- variability: can't standardize
- inseparability: can't separate production from consumption
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Term
| What are the service quality attributes? |
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Definition
- search qualities: examine color, style, price, fit, smell, etc. before purchases
- experience qualities: determine during or after consumption
- credence (professionalism) qualities: evaluate after experiencing them (believability through signs or actions)
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Term
| Measuring service quality |
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Definition
- SERVQUAL Scale Dimensions: tangibles (facilities, equipment & professionalism); Reliability, Responsiveness, Assurance, & Empathy
- Gap analysis: measures the difference b/w customer expectations and what actually happened
- critical incident technique: close examination of customer dissatisfaction complaints
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Term
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Definition
- the assignment of value, or the amount the consumer must exchangeto recieve the offering
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Term
| What are the steps in price planning? |
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Definition
- develop pricing objectives
- estimate demand for the product
- determine costs
- evaluate the pricing environment
- choose a pricing strategy
- develop pricing tactics
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Term
| Developing pricing strategies |
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Definition
- sales or market share: maximize dollars or units
- profit
- competition effect
- customer satisfaction
- image enhancement
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Term
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Definition
- demand: how much of a product are customers willing to buy as its price goes up or down?
- law of demand: as price goes up, quantity demanded goes down;however, a price increase may actually result in increase of quantity demanded
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Term
Price elasticity of demand elastic demand inelastic demand |
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Definition
- measure of customer sensitivity to price
- % change in quantity demanded/% change in price
- elastic demand: change in price results in a substanial change in quantity demanded; if price is increased, revenues decrease and vice versa
- inelastic demand: change in price has little or no effect on quantity demanded; if price is increased, revenue increase
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Term
| cross-elasticity of demand |
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Definition
- changes in prices of other products affect a product's demand
- when products are substitutes or are compliments
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Term
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Definition
- a method that uses cost and demand to identify the price that will maximize profits
- marginal costs: increase in total costs from producing one additional unit of a product
- marginal revenue: increase in total revenue from selling one additional unit of a product
- profit is maximized where marginal cost is exactly equal to marginal revenue
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Term
| Choosing a price strategy |
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Definition
- cost - cost plus pricing: total all product costs and add markup
- demand - target costing:identify quality and functionality customers need and price they're willing to pay; yield management pricing: charge different prices to different customers, based on demand
- competition - pricing near, at, above, or below the competition or price leadership
- customers' needs -value pricing
- new product pricing- skimming, penetrating or low trial pricing
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Term
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Definition
- individual product pricing: w/ two part pricing (dues & activities) and payment pricing (broken into perodic amounts)
- multiple product pricing: w/ price bundling (selling two or more goods or services as a single package) and captive pricing (pricing two products that work when using together)
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Term
| distribution based pricing: F.O.B (free on board) |
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Definition
- origin based pricing: transportation cost to customer
- delivered pricing: transportation costs to customer
- basing point pricing: transportation cost from some point to customer
- uniform delivered pricing: same price to all customers no matter distance
- freight absorption pricing: seller takes on all or part of delivery charge in very competitive markets
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Term
What is Promotion? What is Integrated Marketing Communications? |
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Definition
- the coordination of marketing communication efforts to inform, remind, persuade, develop relationships to influence attitudes or behavior
- integrates all marketing communication which marketers use to plan, develop, execute and evaluate coordination, measurable persuasive brand communication programs over time to targeted audiences
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Term
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Definition
- advertising: nonpersonal communication from an identified sponsor using mass media
- sales promotion: short-term and supporting incentives designed to build interest or encourage product purchases
- public relations: communication activities that create/maintain a positive image of a firm & its products
- personal selling: direct interaction b/w a company representitive & a customer
- direct marketing: efforts to gain a direct response from individual customers
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Term
Contempory promotion mix (buzz appeals) What is buzz marketing? |
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Definition
- buzz marketing: high profile entertainment or news that gets people to talk about the brand
- viral marketing: entertaining or informative messgaes designed to be passed along
- word or mouth (WOM) marketing: activites that give people a reason to talk about a product
- Guerrilla marketing: activities that "ambush" consumers w/ promotional content where not expected
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Term
| What are some IMC characteristics? |
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Definition
- a single, unified voice for firm
- provides information for consumers when they want it and in the amount needed
- seeks to develop relationships with customers through one-to-one marketing
- relies on two way communication
- focuses on all stakeholders, not just customers - employees, stockholders, suppliers, media, trade groups etc
- generates a continious stream of communication
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Term
What are the steps in developing the IMC plan? |
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Definition
- step 1: identify target audiences
- step 2: establish communication objectives
- create awareness
- inform the market (how product benefits positioned against competitors
- create desire
- encourage purchases and trial
- build loyalty
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Term
| continued - steps in developing IMC plan |
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Definition
- step 3: determine and allocate the marketing communication budget
- top down budgeting techniques-
- percentage of sales (last year or present estimate)
- competitive parity (same as competitors)
- bottom up budgeting techniques
- objective task: identify communication goal & cost of promotion effort
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Term
What is push strategy? What is pull strategy? |
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Definition
- push strategy: move products through the channel by pushing channel members to offer them
- pull strategy: move products through the channel by building desire among consumers, convincing retailers to respond to demand
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Term
What are the three vehicles of promotion & communication? |
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Definition
- advertising:nonpersonal communication paid for by an identified sponsor using mass media to persuade ot inform an audience
- sales promotion: short term and supporting incentives designed to build interest or encourage product purchase
- public relations:communication activities that create/maintain positive image of a firm and it's products
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Term
| What are the 4 types of advertising? |
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Definition
- product advertising: focuses on a specific g/s
- institutional advertising: promotes the activities, personality, or point of view of an organization or company
- retai&local advertising:
- do-it yourself: consumer-generated ad content (web, blogs, etc)
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Term
Creation of an Ad/marketing campaign What is it? |
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Definition
- what is it?
- a coordinated, comphrensive plan that carries out promotion objectives & results in a series of ads placed in media over aperiod of time
- who creates it?
- a limited-service agency (one or more specialized services)or a full service agency with account management, creative services, research and marketing services and media planning
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Term
| What are the steps in developing an advertising campaign? |
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Definition
- step 1: identify the target audiences
- step 2: establish message and budget objectives
- step 3: design the ads with a central advertising appeal
- step 4: pretest what the ads will say
- step 5: determine the media types & schedule
- media planning: developes media tactics, strategies and objectives
- aperture: is the best window (place &time) to reach target market
- step 6:evaluate the advertising
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Term
| what are some advertising appeals? |
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Definition
- sex appeal
- comparative advertising (names competitors)
- demonstration(shows product in action)
- slice of life (scene from everyday life)
- lifestyle (appealing target market)
- testimonial (celebrity endorser)
- fear appeals (negative consequence of not using product)
- humorous appeals
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Term
media scheduling "when to say it" |
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Definition
- advertising exposure: degree to which the target market will see an advertising message
- impressions: # of people exposed to a message
- reach: % of target market exposed to media vehicle
- frequency: average no. of times a person in the target group is exposed to the message
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Term
Media scheduling "how to measure it" |
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Definition
- Gross Rating Points (GRP) = reach (% total target market exposure) x frequency (avg number times a person in target group exposed)
- cost per thousand (CPM): the cost to deliver message to 1,000 people
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Term
Media scheduling "how often to say it" |
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Definition
- continious schedule: puts out steady stream of advertising
- pulsing schedule: varies the amount of advertising
- flighting schedule: puts ads out in short, intense bursts
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Term
evaluate advertising (step 6) -posttesting - unaided recall -aided recall attitudinal measures |
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Definition
- posttesting:(phone or personal interview) on consumers' responses to advertising they have seen or heard through:
- unaided recall: remember ad? - no brand identification
- aided recall: remember ad? - brand identification
- attitudinal measures: deep probing of consumer feelings/beliefs of product
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Term
Sales Promotion (directed toward the trade B2B) |
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Definition
- discounts & deals
- merchandising allowances (retailers in store for support)
- case allowances (volume discount for retailer/wholesaler)
- increasing industry visibility
- trade shows (producer shows to retailers & wholesalers)
- promotional products
- incentive programs (push money to channel members or own sales force)
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Term
Sales Promotion (directed towards consumer) |
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Definition
- price-based consumer sales promotion: special/bonus packs (more product for same price) coupons, price deals, refunds, and rebates; frequency (loyalty/continuity) programs (discount or free product);
- attention getting consumer promotion: & sweepstakes; premiums, samplingcreative; product/brand placements (movies/TV) and cross promotion(two or more goods/services together) contests print-of-purchase promotion ( displays/signs)
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Term
Public relations "do something good, then talk about it" |
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Definition
- Publics: include consumers, stockholders, legislatures, and other firm stakeholders
- objectives:
- introducing new products to manufacturers
- introducing new products to consumers
- influencing gov't legislation
- enhancing image of a firm
- enhancing image of a city,region,or country
- calling attention to a firm's involvement w/community
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Term
| Public relations activities |
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Definition
- press releases (timely topics)
- internal PR (employees)
- investor relations (stockholders)
- lobbying (gov't officials)
- speech writing
- corporate identity (logos, brochures, stationery)
- media relations
- sponsorships
- special events
- buzz building
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Term
What is personal selling? What is direct marketing? |
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Definition
- personal selling: direct interaction b/w company representative and customer
- direct marketing: efforts to gain a direct response from individual consumers
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Term
| what are some personal selling characteristics? |
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Definition
- for firms using push strategy
- more in B2B contexts
- for inexperienced consumers who need hands on assistance
- for higher risk products bought infrequently (houses, cars,computers)
- cost per contact is very high
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Term
| What are 2 personal selling appraoches? |
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Definition
- transactional selling: (hard sell) that focuses on making an immediate sale w/no concern for developing long term relationship
- relationship selling: building long term customer relationships
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Term
| Explain the steps in the creative selling process |
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Definition
- step 1: prospecting & qualifying (potential customers)
- step 2: preapproach (compiling background information about prospective customers& planning the interview)
- step 3: approach (contacting prospect & building rapport
- step 4: sales presentation (laying out benefits & added value over the competition
- step 5: handling objections
- step 6: closing the sale
- step 7: follow up
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Term
| What are the steps in sales management process? |
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Definition
- step 1: setting sales force objectives: what sales force is expected to accomplish when
- step 2: sales force strategy: establishing the structure & size of a firm's sales force
- step 3: recruiting, training, & rewarding sales force
- recruiting the right people
- sales training & development
- step 4: paying salespeople well for motivation
- step 5: running sales contests
- step 6: call reports
- step 7: evaluating the sales force
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Term
Channel strategy -define value chain -define supply chain -define distribution channel |
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Definition
- value chain: (everything) a series of activities directed at designing, producing, marketing, delivering, and supporting any product
- supply chain: activities necessary to turn raw materials into a good or service & put it into the hands of a consumer
- distribution channel: where firms/individuals facilitate the movement of a product from producer to consumer
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Term
| Distribution Channel Models |
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Definition
- Direct Channel: a producer and a customer M ->C/B2B
- Indirect Channel: one or more intermediaries M -> W ->
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Term
| What are the functions of a distribution channel? |
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Definition
- To ease the flow of goods from producer to customer
- To provide time, place, and ownership utility
- To provide logistics or physical distribution functions
- To create efficiencies by reducing number of transactions/channel functions through by breaking bulk or creating assortments
- To make purchase process easier
- To manage risk
- To perform communication& transaction functions
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Term
Types of wholesaling (intermediaries) |
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Definition
- independent intermediaries:
- merchant wholesalers: buy goods from manufacturers and sell to retailers and other B2B customers - take title to goods
- full service merchant wholesalers
- cash-and-carry wholesalers (low cost merchandise)
- truck jobbers (often perishable food items)
- drop shippers (take orders but no posession)
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Term
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Definition
- independent intermediaries
- merchandise agents/brokers: provide services in exchange for commissions - do not take title to goods
- manufacturers'agents/reps
- selling agents
- commission merchants
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Term
| Steps in planning a channel strategy |
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Definition
- step 1: develop distribution objectives that support the firm's marketing goals
- step 2: evaluate internal&external environmental influences
- step 3: choose a distribution strategy
- step 4: develop distribution tacticts
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Term
| what are logistic functions? |
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Definition
- physical distribution that is used to move finished goods from manufacturers to final customers
- order processing
- warehousing
- materials handeling
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Term
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Definition
- activities to ensure goods are always available to meet customers' demands
- Radio frequency identification (RFID): electronic chip to track product content;origin and destination
- Just in time (JIT): inventory techniques as goods are needed on the production floor
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Term
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Definition
- the process by which goods and services are sold to customers for their personal use
- retailer is a channel intermediary, providing time, place, and ownership utility to customers
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Term
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Definition
- wheel-of-retailing hypothesis: new types of retailers enter the market by offering lower priced and or innovative goods.
- gradually improve facilities, quality and assortment of merchandis,and amenities & increased prices
- "wheel turns" where new lower-priced competitors come into the market
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Term
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Definition
- introduction stage: low price or innovative & aggressive
- growth: seek more outlets due to competitors
- maturity: intense competition leading to price cutting
- decline: become obsolete or changes to start a new life cycle
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Term
how retailing evolves- the future |
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Definition
- demographics: new ways to sell to diverse groups i.e. convenience for working consumers, specific age segments, ethnic diversity
- technology: web, point of sale, RIFD
- globalization:new cultures,younger populations
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Term
| classifying retail stores by: |
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Definition
- level of service
- self service
- limited service
- full service
- merchandise & assortment selection
- merchandise breadth: # of diff. product lines
- merchandise depth: choices available in each product line
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Term
classifying retail stores by: major retailer shops |
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Definition
- convenience stores (limited, higher priced assortment)
- supermarkets (wide selection of edible & nonedible)
- specialty stores (narrow & deep inventories)
- discount stores (warehouse clubs & factory outlet stores - low priced, broad assortment w/little service
- department stores (broad range & deep selection)
- hypermarkets (combined warehouse & supermaket - 5 times the size of traditional market & more successful in europe
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