marketing 9-18

anything both favourable and unfavourable, received by a person in an exchange for possession, consumption, attention, or short term use

business product - a product used to manufacture other goods or services, to facilitate an organizations operations or to resell to other customers

consumer product - a product bought to satisfy an individuals personal wants

convinience product - a relatively inexpensive item that merits little shopping effort

shoppig product - a product that requires comparision shopping because it is usually more expensive than a convenience product and is found in fewer stores

specialty product - a particular item with unique characteristics for which consumers search extensively and for which they are very reluctant to accept substitutes

unsought product - a product unknown to the potential buyer or a known product that the buyer does not actively seek

product item - a specific version of a product that can be designated as a distinct offering among an organizations products

product line - a group of closely related product items

product mix - all products that an organization sells

product line width - the number of product lines an organization offers

product line depth - the different versions of a product item in a product line

product line extension - adding products to an existing product line to offer more options to consumers

product line contraction - taking off products from an existing product line

product modification - changing one or more of a products characteristics (quality, functional, style)

the practice of modifying products so thsoe that have been sold become obsolete before they actually need replacement

brand - a name, term, symbol, design, or combination therof that identifies a sellers products and differentiates them from competitors products

brand name - the part of a brand that can be spoken, including, letters, words and numbers

branding has three main purposes: product identification, repeat sales, new-product sales

brand mark - the elements of a brand that cannot be spoken (mcdonalds M)

brand equity - the value of company and brand names
- brand that invokes favourable thoughts is said to have strong brand equity

Global brand - a brand with at least 20 percent of the product sold outside its home country or orign

brand loyalty - a consistent preferene for one brand over all others

generic product - a no-brand name, low cost product that is simply identified by its product category

manufacturers brand - the brand name of a manufacturer (apple or samsung)

private brand - a brand name owned by a private wholeseller or retailer

individual branding - the use of different brand names for different product

family brand - the marketing of several different products under the same brand name

placing two or more brand names on a product or its package

trademark - the exclusive right to use a brand or part of a brand

service mark - a trademark for a service

generic product name - a term that identifies a product by class or type and cannot be trademarked

functions of packaging include:
- containing and protecting products
- promoting products
- facilitating storage, use, and convenience
- facilitating recycling and reducing enviornmental damage

labelling
persuasive labelling - package labelling that focuses on a promotional theme or logo, consumer information is secondary

informational labelling - package labelling designed to help consumers make proper product selections and to lower their cognitive dissonance after the pruchase

universal product codes (UPC) - a series of thick and thin vertical lines(bar codes) readable by computerized optical scanners that match the codes to brand names, package sizes, and prices

when entering a foreign market the company has three options:
-one brand name everywhere
-adpatations and modifications - sometimes the brand name cannot pronounced in the local language etc so the name must be adapted
-different brand names in different markets

for global branding packaging companies must consider:
-labelling - properly translating ingredients, promo and instructions etc
-aesthetics - stay attuned to cultural traits in the country or region and must consider size too
-climate considerations - extreme cliamtes nad long distances for shipping would need sturdier packaging ( may need longer product life)

warranty - a confirmation of the quality or performance of a good or service

express warranty - a written guarentee (100% gluten free)

implied warranty - an unwritten guarentee that the good or service is fit for the purpose which it was sold

a product new to the world, new to the market, new to the producer or seller, or new to some combination of these

new to the world - create entirley new market (smallest category of new products)

new product lines - products which the company has not previously offered - allows company to enter already established market

additions to existing product lines - new and improved product may be significantly or slightly changed( apple iphone) - most new products are this

repositioned product - existing products targeted at new markets or new market segments

lower-priced products - products that provide performance similair to that of competing brands at a lower price (knockoff brands)

-sustain growth
-increase revenues and profits
-replace obsolete items

important to meet ever changing customer demand and new tech and shorter product life cycles

new product strategty - a plan that links the new product development process with the objetives of the marketing department, the business unit and the corporation

idea generation - new product ideas come from many sources including: customers,employees,distributors,competitors,vendors,R&D,consultants

idea screening - the first filter in the product development process, which eliminates ideas tht are inconsistent with the organizations new product strategy or are obviously inappropriate for some other reason. the firm may use a concept test in which there is an evaluation of the new product idea, usually before any prototype has been created

business analysis - the second stage of the screening process, where preliminary figures for demand, cost, sales, and profitabilty are calculated

development - the stage in which a prototype is developed and a marketing strategy is outlined

test marketing - the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
- high costs of test marketing: often runs for a year and goes into the millions, but comapnies think its better to fail at this
stage than in a national market
- simulated (laboratory) market testing - alternative to test marketing, it is the presentation of advertising and other
promotion materials for several products, including the test product, to members of the products target market

commercialization - the decision to market a product
- sets in motion the tasks of ordering inputs, starting production, building inventories, training sales force etc
-most important factor in a sucessful new product launch is good mathc between product and market needs

products often fail because:
-incompatability between the product and the target market
-development process too long ∴delayed market entry
-ill equiped comapny resourcces ( financial to HR)
-poor initial product reviews, combined with few chanfes made based on them
-poor execution of the marketing-mix activities necessary to execute strategy

diffusion of innovation
innovation - a product percieved as new by a potential adopter
diffusion - the process by whih the adoption of an innovation spreads
adopter - a consumer who was satisfied enough with their trial experience with a product to use it again

five categories of adopters participate in the diffusion process
-innovators - the first 2.5% of all who adopt the product; eager to try new products, worldly outlook
-early adopters - the next 13.5% of all who adopt the product; rely much more on group norms and values, more oriented to the community
-early majority - the next 34% to adopt; weighs the pros and cons before adopting, evaluates more brands ∴ extending adoption process
-late majority - the next 34% to adopt; they adopt the product becuase most of their friends have already done so, the dominant feature is skepticism
-laggards - the final 16% to adopt; they do not rely on norms and normally dony adopt due to ties to tradition ∴ the past heavly infleucnes their decisions, they have the longest adoption time and the lowest socioeconmic status

five characteristics to determine rate of adoption:
-compelxity - more complex slower diffusion, less complex faster diffusion
-compatibility - how concistent the new product is with values past expiriences and product knowledge, less comaptible slower diffusion
-relative advantage - the degree to which a product is perceived as superior to existing substitutes, more superior faster diffusion
-observability - the degree to which the benefits or other results can be observed by others and comunicated to target customers
-trialability - the degree to which products can be tried on a limited basis; products that can be tried on a limited basis have a better chance of being adopted

the two types of communication that can aid the diffusion process:
- word-of-mouth communication - both traditional and digital speed up diffusion
-communication directly form the marketer to potential adopters

Product life cycle(PLC) - a concept that traces the stages of a products acceptance, from its introduction to its decline

- introductory stage - full scale launch of a new product into the marketpalce
- often see high failure rate, little competition, frequent production, limited distribution.
- marketing costs often high due to high dealer margins, and incentive needed to convince customers
- negative profits and slow sales due to R&D costs
- focus on developing product awarness and informing consumers about the product categorys potential

-growth stage - sales typically grow at an increasing rate, many competitors enter the market, profits are healthy
- emphasis switches from primary demand promotion (promoting tables) to agressive brand adevertising and communciation of the differences
between brands ( apple iphone v samsung)
- distribution becomes a major key to sucess during growth stage

-maturity stage - a period during which sales increase at a decreasing rate
- annual models will begin to appear during the maturity stage of their lifecycle (apple introducing new iphone)
- as price and profits fall marginal comeptitors leave the market
- dealer margins shrink so less shelf space for mature items
- heavy consumer promotion by manufacturer is needed to maintain market share

-decline stage - a long run drop in sales
-rate of decline is governed by how rapidly consumer tastes change or substitute products are adpoted


implications of PLC for marketing management
-encourages marketing managers to plan so that they can take the initative instead of reacting to past events
-PLC is useful as a predicting and or forecasting tool

service - the result of applying human or mechanical efforts to people or objects
intangibility - the inability of services to be touched, seen, tasted, heard or felt in the same manner that goods can be sensed
search qualities - a characteristic that can be easily assesed before purchase
expirience qualities - a characteristic that can be assessed only after use
credence qualitites - a characteristic that consumers may have difficulty assesing even after purchase because they do not have the necessary knowledge . or expirience
inseperability - the inability of the production and cosumption of a service to be seperated; consumers must be present during the production
heterogeneity - the variability of the inputs and outputs of services which causes services to tend to be less standardized and uniform than goods
perishability - the inabiltiy of a service to be stored, warehoused, or inventoried

how services differ from goods
-intangibility
-inseperability
-heterogeneity
-perishability

-reliability - the ability to perform a service dependably accuratley and consistently
-responsivness - the ability to provide prompt service
-assurance - the knowledge and courtesy of employees and their ability to convey trust
-empathy - caring, individualized, attention paid to customers
-tangibles - the physical evidence of a service including the physical facilities, tools, and equipment used to provide the service


gap model - a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
types of gaps:
-knowledge gap (gap 1) - gap between what customers want and what management thinks they want
-standards gap (gap 2) - the gap between what management think customers want and the quality specification that management develops to provide the service
-delivery gap (gap 3) - the gap between the service quality specifications and the service that is actually provided
-communication gap (gap 4) - the gap between what the company provides and what the customer is told it provides
-expectation gap (gap 5) - the gap between the service tht customers expect they should receive, and the perceived service that customers actually receive

product:
Service Processes can be placed into one of four categories
-People processing - service is directed at a customer
-possesion processing - occurs when the service is directed at customers physical posessions
-mental stimuls processing - services directed at people minds (theatre)
-information processing - services that use technology or brainpower directed at customers assets

core service products - the most basic benefit the consumer is buying
supplementary service - a group of services that support or enhance the core service

promotion:
four promotion strategies for services
-stressing tangibe cues - a concrete symbol of the service offering ( leaving a mint on the bed of a hotel etc)
-using personal information sources - using somone consumers are familiar with (celebrity)
-creating a strong organizational image - manage the image of the physical enviornment of the service facility, appearance of service employees
-enganging in postpurchase communication - follow-up activities that a service company might engage in after a customer transaction

place:
should focus place issues like:
-convinience - most important factor, tim hortons is always in a convinient location
-number of outlets - intensity of distribution should meet but not exceed the markets needs and preferences
-direct vs indirect distribution - many services choose direct however
-location - most clearly reveals the relationship between its target market strategy and its distribution strategy
-scheduling - for time dependent services shceduling becomes a more important factor

price:
- important to define the unit of service, based on completion of service( one car wash) or time based
-for services that comprise of multiple elements, should the price be based on a bundle or should each element be priced seperatley
three categories of pricing objectives
-revenue oriented pricing - maximising surplus of income over costs
-operations oriented pricing - seeks to match supply and demand by varying prices ∴ prices vary with different market segments ability to pay
-patronage oriented pricing - maximize the number of customers using the service

Process:
refers to establishing standards to ensure the service delivery is consistent and compatible with the service positioning
- to do so the knowledge gap must be reduced through market research that seeks to understand consumer expectations

people:
-standards gap and delivery gap must be managed to improve the service
- must manage the service provider not just the service itself, strategies to do so are:
-providing incentives
-training and recognition programs that management supports

physical evidence:
- provide evidence that the company is healthy and trustworthy ( old dental equipment would not be trusted)

Productivity:
-managing supply of a service so it does not exceed demand without affecting quality as a service cannot be stored, known as capacity management
-ability to adjust prices based off of demand and trends to benefit the most from periods of low or high demand

can be practiced at 4 levels

level 1 financial - pricing incentives are used to encourage customers to continue doing business with a company
level 2 social - also uses pricing incentives but seeks to build social bonds with the customer
level 3 customization - a customized approach enourages customer loyalty through intamate knowledge of individual customers
level 4 - structured - again uses financial aid and social bonds but adds structural bonds. these are developed through value added services

non-profit organization - an organization that exists to acheive a goal other than the usual business goals of profit,market share, ROI
NPO marketing - the effort by NPO's to bring about mutually satisfying exchanges with target markets

most NPO's perform the following marketing activities:
-idnetyfing customers they want to atract or serve
-explicitly or implicitly specifying objectives
-developing manging and maintaining programs and services
-deciding on prices to charge
-scheduling events or programs and determining where they will be held etc

unique aspects of NPO's
-objectives - do not seek profit as an objective rather seek to genreate enough funds to cover costs and keep business running
-target markets - 1.) stongly oposed targets, they are sometimes required to target customers who are strongly opposed to the service they offer
2.) pressure to adopt unfifferentiated segmentation, sometimes forced to adpot undifferentiated strategies
-positioning decisions - many NPO's adpot a complementary positioning strategy where they complement rather than compete with the efforts of others
-product decisions - 1.) benefit complexity - benefits received by customer is complex
2.) benefit strength - strength of benefits of many NPO's is either not immediate or indirect
3.) involvement - NPO's market products that have very low involvment (stop forest fires)
-place/ distribution decisions - for NPO's being where and when the customre wants them to be is key
-promotion decisions - have a few special promotion resources:
1.) professional volunteer - seek out professionals for marketing sales etc
2.) sales promotion activities - promo that makes use of existing products (sponsoring a F1 car)
3.) PR - they have PSA's - an announcement that promotes a program of a NPO or of a federal or local govt
4.) social media - social media can help amplifiy a NPO's message
-pricing decisions - five key unique characteristics
1.) pricing objectives - aim to cover costs
2.) nonfinancial prices - customers must incur non-monetary costs (beach cleanup)
3.) indirect payment - indirect payment through taxes
4.) seperation between payers and users - services provided to poor when paid for by rich
5.) below cost pricing - pricing the service or good below the total cost it takes to produce it

price - that which is given up in an exchange to acqurie a good or service

-key to revenues

step 1 - establishing pricing objectives:

profit oriented pricing objectives
-profit maximisation - setting prices so that total revenue is as high as possible
-satisfactory profits - profits that are satisfactory to shareholders
-target ROI - overall effectivness of generating profits with the companies given assets

sales oriented pricing objectives
-market share - companies product sales as a percent of total sales for that industry
-status quo pricing - pricing objective that maintains existing prices ormeets the competitions prices


step 2 - estimating demand costs
-demand is the quantity of a product that will be sold in the market at various prices for a specified period
-in order to estimate demadn the PED and price sensitivity must be known


step 3 - choosing a price strategy - a basic long-term pricing framework that defines the initial price for a product and the intended directiong for price movements over the product life cycle
-price skimming - high introductory price often coupled with heavy promotion
-penetration pricing - a relatively low price for a product initially as a way to reach the mass market
-status quo pricing - meeting the competion or going rate

note: once steps 1-3 are done marketers should set a base price ( the general price level at which the company expects to sell the good or service)


step 4 - using a price tactic
*companies will always, no matter the tactic put a markup on their product before selling it, as for-profit companies are profit dirven
-discounts and allowances
-quantity discounts - a unit price reduction offered to buyers buying either in multiple units or at more than a specified dollar amount
- cash discount - discount offered to consumer in return for prompt payment of a bill
- functional discounts - a discount to distribution channel intermediaries such as wholesalers and retailers performing channel functions
- seasonal discounts - price reduction for buying merchandise out of season
-value-based pricing - pricing tactic that sets the price at a level that seems to the customer to be good value compared with the prices of other options
-dynamic pricing - ability to change prices very quickly, often and in real time
-geographic pricing - may add cost of shiping to price, or seller incurs the cost fo shipping
-other pricing tactics include
- flexible pricing - different customers pay different prices for essentially the same merchandise bought in equal quantities (differnt cost of train tickets at different times)
- proffesional pricing - charging at an hourly rate for proffesional services (lawyer)
- price lining - offering a product line with several items at specific price points
- loss leader pricing - product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
- odd-even pricing - odd numbered prices cannote bargains (19.99)
-price bundling - marketing two or more products in a single package for a special price
- two part pricing - charging two seperate amounts to consume a single good or service
- pay what you want pricing - allows customer to choose the amount they would like to pay

bait pricing - a price tactic that tires to get consumers into a store through false or misleading price advertising then uses high pressure selling tactics to persuade consumers to buy more expensive merchandise instead

Deceptive pricing - promoting a price or price saving that is not acutally available

price fixing - an agreement between two or more companies to set the price tey will charge for a product or service

predatory pricing - the practice of charging a very low price for a product with the intent of driving competitors out of the market or the business

price discrimination - six elements necessary for price discrimination
1.) tow or three instances of discrimination must have occured over time
2.) the sales in question must have occured within a relatively short time
3.) the products sold must be commodities or tangible goods
4.) the seller must charge different prices to two or more buyers for the same product
5.) the products sold must be of the same quality and grade
6.) the buyers of the goods must be competitors

marketing channel - a set of interdepent organizations that handle products and often transfer ownership of products as they move from producer to business user or consumer

intermediaries(channel members) - all parties in the markting channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller as they move the product into the hands of the end customer
-how intermediaries help the supply chain
-providing specialization and division of labor - better efficiency and lower average production costs
-overcoming discrepancies - supply chain helps get the goods where they need to be to avoid any discrepancy in quantity assortment time and space
- discrepancy of quantity - the difference between the amount of product produced and the amount an end user wants to buy
- discrepancy of assortment - the lack of all the items a cutomer needs to receive full satisfaction from a product(s)
- temporal discrepancy - a product is produced but a customer is not ready to buy it
- spatial discrepancy - the difference between the location of a producer and the location of widely scattered markets
-providing contact efficiency - reducing the number of stroes customers must shop at to complete their purchases

-main characteristics of what type of should be wholesaler (intermediary) used by a manufacturer are:
-product characteristics - complexity, standardized or customized etc
-how often the product is purchased and how long the buyer is willing to wait to receive the product
-market characteristics - number of buyer in the market, concentrated in one location or spread out etc


channel intermediaries functions:
-transaction functions - contacting and promoting to potential customers, determining how many goods or services to buy or sell, type of transportation to use, assuming the risk of owning the inventory
-logistical functions - distributing, storing, sorting, assorting
- facilitating functions - gathering information about other channel members and customers, extending credit adn other financial services to facilitate the flow of goods through the channel to the final customer

channels for consumer products:
-direct channel - a distribution channel in which producers sell directly to cutomers
-retailer channel - a distribution channel in which producer go through a retailer to sell products
-wholesaler channel - a distribution channel in which producers sell to a wholesaler who then goes through retailers to get to the final customer
-agentroker channel - a distribution channel where producers go to agents or brokers to help connect them with wholesalers (agentsrokers to not -take ownership of any product)

note: for business and industrial products it is the same basic channels but the end user is government or industry

other channel arrangements:
-non-traditional channels - internet, ,mail order channels
-strategic channel alliances - cooperative agreements between business companies to use one of the manufacturers already established distribution channels
-dual distribution - the use of two or more channels to distribute the same product to target markets

market factors - target customer considerations, geographic location and the size of the market,
product factors - the more comlex, customized and expensive products benefit from more direct channel while cheaper less complex items benefit from a longer channel
-producer factors - producers with large financial manegerial and marketing resources will be more able to use more direct channels

-intensive distribution - a form of distribution aimed at having a product available in every outlet where the target customers might want it
-selective distribution - a form of distribution acheived by screening dealers to eliminate all but a few in any single area
-exclusive distribution - a form of distribution that involves only one or a few dealers within a given area

-channel power - a marketing channel members capacity to control or influence the behaviour of other channel members
-channel control - one marketing channel member intentionally affect another members behaviour
-channel leader - a member of a marketing channel who exercises authority and power over the activities of othe channel members
-channel conflict - a clash of goals and methds among distribution channel memebrs
-channel partnering - the joint effort of all channel members to create a supply chain that serves the customers and creates a competitive advantage
-horizontal conflict - a channel conflict that occurs among channel members on the same level
-vertical conflict - a channel conflict that occurs between different levels in a marketing channel, normally between manufacturer and wholesaler

suppy chain manangement - a management system that coordinates and integrates all activities performed by the supply chain members into a seamless process resulting in enhanced customer and economic value

managing logistics in the supply chain
-logistics information system - the link that connects all the logistics functions of the supply chain
-supply chain team - a group of individuals who orchestrate the movement of goods, services, and information from the source to consumer
-procurment - the process of buying goods and services for use in the operations of an organisation
-mass customization - a production method whereby products are not made until an order is placed by the customer, products are made accoridng to customer specifications
-order processing system - a system whereby orders are entered into the supply chain and filled
- electronic data interchange(EDI) - IT that repalces the papaer documents that usually accompany business transactions such as purchase order and invoices
-inventory control system - a method of developing and maintaining an adequate assortment of materials or products to meet a manufactueres or customers demand

benefits:
-lower costs of inventory
-lower costs of transportation
-lower costs of warehousing
-lower cost of packaging
-improved customer service
-higher revenues

retailing - all activities directly realted to the sale of goods and services to the ultimate consumer for personal non-business use

independant retailers - retailers owned by a single person or partnership and not operated as part of a larger retail institution
chain stores - strores owned and oeprated as a group by a single organization
franchise - retailers that are owned and operated by indivuduals but are licensed by a larger supporting organization
department store - a retail store that has several departments under one roof, carrying a wide variety of shopping and specialty goods
specialty store - a retail store that carries a deeper but narrower assortment of merchandise withing a single category of interest
supermarkets - large departmentalized, self service retailers that sepcialize in food and some nonfood items
drugstores - retail stores that stock pharmacy-related products and services as their main draw
discount stores - a retailer that competes on the basis of low prices high turnover and high volume
full-line discount stores - retailers that offer consumers very limited service and carry a broad assortment of well-known nationally branded hard goods

nonstore retailing - provides shopping without visiting a store

brick and mortar stores have been using limited nonstore formats such as:
-automatic vending - the use of mahcines to offer goods for sale
-self service technologies (SST) - technological interfaces that allow customers to provide themselves with products and or services without the intervention of a service employee
-direct retailing - the selling of products by representatives who work door to door, office to office or at in-home parties
-direct marketing - techniques techniques used to get consumers to make a purchase from their home, office, or another nonretail setting
-online retailing - a type of shopping available to consumers with access to the internet
-sharing economy - the way connected consumers exhchange goods and services with eachother through a digital marketplace (facebook marketplace)

-defining a target market
-choosing the retail mix ( a combination of the six p's, product offering,place,promotion,price,presentation,personnel- used in a single retail method to attract target market
-prduct offering - the mix of products offered to the consumer by the retailer; also called the product assortment
-place - "location location location". the physical location of retail stores is very important, factors to consider for place are: areas economic growth potential, amount of competition, geography
-promotion - includes advertising, PR, and sales promo, with the final goal of positioning themselves in the consumers mind
-price - retail prices are based off of the cost of buying the goods so efficient and timely buying is key
-presentation - factors that are influential in a stores atmosphere:
-employee type and density
-merchandise type and density
-fixture type and density (elegant woods or cheap floors etc)
-sound
-odours
-visual factors ( colors lighting etc)
-personnel - persuade customers to buy ∴ must be able to persuade customers that what ehy are selling is what the customer needs, they are trained in trading up ( persuadeing customers to buy more expensive products) or suggestion selling (broaden the customers original purchases with related items)

-have plans to recover from lapses in service and to maximise the customer expirience, they do this by:
-notifying customers in advance of stockouts
-implementing liberal return policies designed so customer cna bring back any item for any reason
-issuing product recalls in conjunction with promotional offers that provide futre incentives to repurchase

communication - the proces by which we exchange or share meanings through a common set of symbols

category 1
interpersonel communication - direct, face-to-face between two or more people

category 2
mass communication - the communication of a concept or message to large audiences

communication process:
-sender - the originator of the message in the communication process
-encoding - the conversion of the sendrs ideas and thoughts into a message usually in some combination of words, images, and sound
-medium - distribution system of the message
-decoding - interpretation of the language and symbols sent by the source through a channel
-receivers - the people who decode the a message
-feedback - the receivers response to a message

message transmission
-transmission requires a channel (a medium of communication such as a voice, radio
-noise - anything interferes with, distorts, or slows down the transmission of information

-inform - informative promotion looks to convert an existing neeed into a want or to stimulate interest in a new product
-connect - use of social media to help companies develop relationships with their customers
-remind - reminder promotion is used to keep the brand in the publics mind
-persuade - persuasive promotion is designed to stimulate a purchase or an action

promotional mix - the combination of promotional tools including advertising, publicity, sales promo, personal selling, direct response communication, and social media etc - used to reach the target market and fulfill the organizations overall goals

promotional mix:
-advertising - any form of impersonal, one-way mass communication, using time or space owned by an advertising medium company that is paid
-PR - the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
-sales promotion - all marketing activities that stimulate consumer purchases in the near term
-perspnal selling - a purchase situation involving a personal, paid for communication between two people in an attempt to influence each other
-direct response - communication of a message directly from a marketing company and directly to an intended individual target audience
-online marketing, content marketing, and social media - two way communication of a message delivered through the internet to the consumer

AIDA concept (attention, interest, desire, and action) - a model that outlines the process for acheiving promotional goals in terms of stages of consumer involvment with the message

-attention - gain attention of the target market
-interest - create interest in the product
-desire - make the customer desire the product
-action - e.g getting a famous person to promote the brand so people take action and buy the product

factors affecting the promotional mix
-nature of the product
-target market characteristics
-type of buying decisions
-stage in the product life cycle
-available funds
-push and pull strategies

percentage of sales - a method of determining an advertising budget in which a percentage of forecast sales is calculated as the amount to spend on advertising

click through rate(CTR) - the ratio of clicks on an ad by viewers to the number if viewers to whom the ad was exposed

pay per click (PPC) - a digital advertising payment method in which the advertiser pays the media company, through which the ad is placed, each time a user clicks on a digital ad placed within the media company's space

-institutional advertising - a form of advertising designed to enhance a comapny's image rather than promote a particular product
-product advertising - a form of advertising that promotes the benefits of specific good or service
-advocacy advertising - a form of advertising in which an organization expresses its views on a particular issue or cause
-pioneering advertising - a form of advertising designed to stimulate primary demand for a new product or product category
-competitive advertising - a form of advertising designed to influence demand for a specific brand

-choice of medium (the channel used to convey a message to a target market)
-media planning - the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost effectively communicate the message to the target audience

media types:
-newspapers
-magazines
-radio
-television
-out of home media
-the internet

media mix - the combination of meida to be used for a promotional campaign
cost per contact - the cost of reaching one member of the target market
reach - the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
frequency - the number of times an individual is exposed to a given message during a specific period
audience selectivity - the ability of an advertising medium to reach a precisely defined market

media schedule - designation of the media, the specific publications or programs, and the insertion dates of advertising

four basic types of media scheduling
-continous media schedule - a media scheduling stratgey in which advertisig is run steadily through out the advertising period; used for products in the in the later stages of the product life cycle
-flighted media schedule - a media scheduling strategy in which ads are run heavily every other month or every two weeks to acheive a grater impact with an increased frequency and reach those times
-pulsing meida schneduling - a media scheduling strategy that uses continous scheduling throughout the year coupled with a flighted shcedule during the best sales periods
-seasonal media schedule - a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be purchased

PR will perform the following function:
-media relations
-product publicity
-corporate communication
-public affairs
-lobbying
-employee and investor relations
-crisis management

PR tools
-product publicity - PR proffesionals will write media releases etc in effort to generate news about the new product
-product placement - a PR strategy that involves getting a product service or comapny name to appear in a movie television show or radio program, and more
-sponsorship - a PR strategy in which a company spends money to support an issue cuase or an event that is consistent with corporate objectives sich as improving brand awarness or enhancing corporate image
-experiential - a form of advertising that focuses on helping consumers a brand such that a memorable and emotional connection is formed between the consumer and the brand

the two main types of sale promotion targets are:
- consumer sales promotion - activities such as price discounts to incetivize consumer purchases
-trade sales promotion - activities such as price discounts to incentivize current or prospective clientele to make purhcases

tools for consumer sales promotion:
-discounts and coupons - a coupon is a certificate that entitles consumers to an immediate price reduction when they buy the product
-premiums - an extra item offered to the consumer, usually in exchange for soe proof of purchase of the promoted product
-rebates - cash refunds given for the purchase of a product during a specific period
-loyalty marketing programs - a promotional program designed to buil long-term, mutually beneficial relationships between a comapny and its key customers
-contests and sweepstakes
-sampling - a promotional program that allows the consumer the opportunity to try a product or service for free

tools for trade sales promotion:
-trade allowance - a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers
-push money - money offered to channel intermediaries to encourage them to push products - that is to encourage other members of the channel to sell the products
-training - train intermediaries personnel if the product is complex
-free merchandise - e.g buy ten cases of merchandise and get 11
-store demonstrations - going to the retail store to demonstrate the product
-co-op advdertising - partnership between channel members to share the cost of advertising

types of cosumers and the sales promotion goals
-loyal customer - reinforce behaviour, increase consumption, change purchase timing
-competitors customers - break loyalty, persuade to switch to another brand
-brand switchers - persuade to buy one brand more often
-price buyers - appeal with low prices or supply added value that makes price less important

personal selling - direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other ina purchase situation

relationship selling (business development) - a multistage sales process that involves building maintaining and enhancing interactions with customers for the purpose of developing long term satisfaction through mutually beneficial business partnerships

sales process (saels cycle) - the set of steps a sales person goes through to sell a particular product or service

the seven basic steps that make up the personal selling process:
-generating leads - identification of those companies and people most likely to buy the sellers offerings
-qualifying leads - determine if the lead has a recognized needm the buying power, and the receptivity and accesibility to meet and discuss the potential deal
-approaching the customer and probing needs - to gather information and decide how to best approach the prospect
-developing and proposing solutions - to create the solution and prepare the presentation that will deliver the solution
-handling objections - to be prepared to engage in negotioation-type discussions with the customer
-closing the sale - to botain a commitment
-following up - ensure the customer is satisfied

social networks (sites) - websites that allow individuals to connect or network with friends, peers, or business associates
social news sites - websites that allow users to decide which contnet is promotoed on a given website by voting that conent to go up or down (reddit)
blogs - publicly accessible web pages that function as interactive journals, whereby readers can post comments on the authors entries
corporate or proffesional blogs - blogs that are sponsored by a comapny or one of its brands and maintained by one or more of the company's employees
noncorporate blogs - independant blogs that are not associated with marketing efforts of ant particular comapny or brand
microblogs - blogs with strict post length limits (twitter)
location based socail networking sites - websites that combine the fun socia networking with the utility of location based gps tech (foursqaure)
review sites - websites that allow consumers to post, read,rate andcomment on opinions regarding all kinds of products and services
podcasts - digital or video file that is distributed serially for other people to listen to or watch

buzz - volume of consumer related buzz for a brand based on posts and impression by social channel, by stage in purchase channel, by reason, and by time of day
interest - number of likes, fans, followers, and friends; growth rates; rate of going viral or pass along; and change in pass along over time
participation - number of comments,ratings, social bookmarks,subscriptions,page views, uploads, downloads, embeds, retweets, facebook posts, puns, and time spent with social media platforms
search engine ranks and results - increases and decreases on searches andchanges in key words
influenece - media mentions, influences of bloggers reachedm influences of of customers reached, and second degree reach based on social graphs
sentiment analysis - positive, neutral, and negative sentiment, trends of sentiment and volume of sentiment
webiste metrics - clicksm, click through rates, and percentage traffic

search engine optimization (SEO) - a process that marketers take to potimize the chage of search engines, "driven" by people looking for information online, to produce their company's website,name,products or all three

search engine marketing (SEM) - the practice of using paid advertisments that appear on the results page of a search engine to market a business

stage 1 (being without an objective) - the organization has established a listening system but has no goals

stage 2 (tracking brand mentions) - the org. tracks mentions in social space but has no guidance on nest steps

stage 3 (identyfing market risks and opportunities) - seeks discussions online that may result in identification of problems or opportunities

stage 4 (imrpving campaign efficiency) - the organization uses tools to acquire real-time data on marketing efficiency

stage 5 (measuring customer satisfaction) - the organization collects info about satisfaction, including measures of sentiment

stage 6 (responding to customer inquiry) - the org. identifies customers where they are (twitter)

stage 7 (understanding customers better - the org. adds social information to demographics and physcographics to gain better consumer profiles

stage 8 (being proactive and anticiating customer demands) - org. examines previus patterns of data and social behaviour to anticiapte needs