Marketing: because everyone is a marketer, UNIT 3

All the activities that communicate the value of a product and persuade customers to buy it

A Subset of the Marketing Mix that includes four main elements of marketing communication: advertising, sales promotion, personal selling, and public relations

Advertising, sales promotion, personal selling, and public relations

Nonpersonal communication about goods, services, or ideas that is paid for by the firm identified in the message

A set of non-personal communication tools designed to stimulate quicker and more frequent purchases of a product

The two-way flow of personal communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customers purchase decision

Nonpersonal communication focused on promoting a positive relations between firms and its stakeholders

A promotional strategy that involves coordinating the various promotion-mix elements to provide consumers with a clear and consistent message about a firm's products

A collection of coordinated advertisements that share a single theme

A type of Advertising that attempts to develop initial demand for a product

Inform, persuade, and remind

A type of advertising that attempts to increase demand for an existing product

A type of advertising that seeks to keep the product before the public in an effort to reinforce previous promotional activity

Ability to combine sight, sound, and motion. Demonstrates product in use. Narrowcasting

The dissemination of information to a fairly small, select audience that is defined by it's shared values, preferences, or demographic

Cost. Rapid Growth of DVRs, Consumers abandoning traditional television services

An advertising technique in which a company promotes its products through appearances in movies or on television shows or other media

Combines desktop and mobile, currently second largest global advertising medium, paid search advertising, paid display aadvertising, direct marketing, banner and pop-up ads are considered a disadvantage

Advertising that communicates directly with consumers and organizations in an effort to provoke a response

Newspapers are effective for small businesses to advertise to the local community. Firms can run ads in a specific section of newspapers. magazines can target very specific audiences. Magazines have a longer shelf life

Fewer Americans are using newspapers as primary sources of information. Newspaper ads compete with editorial content. Magazines have a long lead time. Marketers cant control ad placements in magazines.

Often most cost-effective choice. Allows market segmentation based on geography.

Audio only. Digital presents in cars make it easier to switch away from an ad

flexible, cost-effective

short exposure time, wasted coverage

Mobile Advertising, advertising in video games

Advertising that is communicated to the consumer via a handheld device

Coupons, rebates, samples, contests, sweepstakes, premiums, loyalty programs, trade sales promotions

Documents that entitle the customers who carry them to a discount on a product

Allow consumers to recoup a specific amount of money after making a single purchase, most require consumers to mail their receipt and proof of purchase to manufacturers

Consumers compete against one another and must demonstrate skill to win

Based on chances such that entry is the only requirement to win

Given as an incentive for preforming a particular act, typically buying a product. Can be a toy, collectible, souvenir, etc.

Allow consumers to accumulate points or other benefits for doing business with the same company

Directed to B2B firms, including wholesalers, retailers, and distributors, rather than the individual consumer. Include Trade shows, Allowances, and Training

An event at which organizations in a specific industry promote their offerings to firms they hope will buy them

Typically involve paying retailers for financial losses associated with consumer sales promotions, or reimbursing a retailer for an in-store or local expense to promote a specific product

Includes brochures or on-site demonstrations to help retail and resellers be better equipped to speak with consumers and sell the firms products

Expensive, Consistent message among salespeople, results in immediate feedback, importance of relationship selling

A sales approach that involves building and maintaining customer trust over a long period of time

Annual reports, speeches, blogs, brochures, media kits, sponsorships, event marketing, publicity

Provide a forum for the organization to share with its stakeholders what it has achieved over the past year

Provide an avenue for members of an organization to market their message directly to a group

An emerging social media tool through which individuals can share their thoughts and knowledge with the public

Typically are intended to inform and/ or engage the public

Typically a package of information provided to reporters and the general press

An organization paying to have its name associated with projects, programs, or facilities.

Involves developing a themed exhibit, display, or presentation to promote an organization to it's target market

Dissemination unpaid news items through some form of media (television story, newspaper article, etc.) to gain attention or support

Quick and cost-effective way to provide engaging content about the impact of a product or service. Essential to monitor for negative feedback

marketers must communicate to stakeholders as quickly as possible

has become a 24-7 job

Advantages and Disadvantages. Each element can influence different segments of target market

The linked set of companies that perform or support the delivery of a companys goods or services to customers. Flows through Distribution (/marketing) channels

Intermediaries (wholesalers, distributors, and retailers) through which the flow of products travels

A company that sells to other businesses, such as retailers and other industrial companies

A wholesaler with exclusive rights to selling products from a producer to customers within a certain geographic territory

A company that sells goods to consumers for their use, rather than for resale to others

A management philosophy that guides the actions of company members toward the goal of actively managing the upstream flow of goods, services, finances, and information across the supply chain

The driving factor in the globalization of supply chains. They allow a large number of goods to be shipped inexpensively and can be quickly and easily loaded onto and removed from ships.

The actions the firm takes to coordinate the various flows within a supply chain

Improves the entire chain’s performance. Relationship-based strategies. Firms trying to overcome the time and distance obstacles that can stand in the way of efficient supply chain operations

The costs required to make or buy a product, including the risk of obsolescence, taxes, insurance, and warehousing space used to store the goods

Push Strategy, Pull Strategy, Hybrid (Push-Pull) Strategy

A supply chain strategy in which a company builds goods based on a sales forecast, puts those goods into storage, and waits for a customer to order the product.

Aka Speculation strategy. Firms can achieve economies of scale. Positively affect customer service. Might result in too much of an unwanted product. Expensive and time-consuming if retooling needed. Inventory carrying costs are expensive

A supply chain strategy in which customer orders drive manufacturing and distribution operations

Aka responsive supply chain.Eliminates the production of unwanted products.Products can be customized.Minimal inventory carrying costs.Rapid response to market conditions. Doesn't allow for economies of sales.Difficult to achieve flexibility for production and distribution

A supply chain strategy in which the initial stages of the supply chain operate on a push system, but completion of the product is based on a pull system

Combines Economies of scale with flexibility.Produces more accurate sales forecasts.May not be as cost competitive as push system.Firm incurs costs to store components in inventory.Need a distribution system that delivers quickly

Stability of demand.Degree of cost competitiveness.Degree of customization.Speed at which customers need product

That part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point or origin and the final customer

Delivering the right product, to the right place, to the right customer, at the right time, in the right quantity, in the right condition, and at the right price.

Delivering products and services to right location.

Efficient purchasing, inventory warehousing.

Packaging needs.

Ensures sufficient materials to meet increased demand

Receiving, storing, and retrieving materials needed in production

Amount of inventory a company holds and the costs of warehousing and transportation affect Return on Investment (ROI)

How well the logistics managers perform affects customer service, which ultimately can affect revenue positively or negatively

Using multiple types of transportation for the same shipment

A carrier's ability to provide service from the source of the shipment (a factory, for example) to its destination (a store or even an individual customer)

Involves larger container ships

Involves railroads and trucking

Involves pickup-and-delivery (PUD) Unit, such as UPS and Fed-Ex

Disintermediation reduces transportation and material handling

Returned goods or properly disposed of

A commitment to a lifestyle that meets the needs of the present without compromising the ability of future generations to meet their own needs

A process of purchasing goods and services that takes into account the long-term impact on people, profits, and planet

Sourcing Materials and finished products from countries that are close to, but not in, an organizations own country

Sourcing materials and finished products from suppliers in an organizations own country

Elimination of intermediaries such as distribution centers, in the delivery of products from a producer to a consumer

Maximizes value creation by recovering value from product or material returns

The amount of something (money, time, or effort) that a buyer exchanges with a seller to obtain a product

The result of the price charged to customers multiplied by the number of units sold

Revenue minus total costs

A pricing objective that involves setting a relatively high price for a period of time after the product launches

A pricing objective that involves setting prices low to encourage a greater volume of purchases: also called Penetration pricing

Define Pricing Objectives, Evaluate Demand, Determine the costs, Analyze the competitive price environment, Choose a price, and Monitor and evaluate the effectiveness of the price

Profit maximization, Volume Maximization, Survival Pricing

A pricing objective that involves lowering prices to the point at which revenue just covers costs, allowing the firm to endure during a difficult time

Optimal price is the point at which marginal revenue equals marginal cost

The change in total revenue that results from selling one additional unit of product

The change in total cost that results from producing one additional unit of product

The degree at which the price of a product affects consumers' purchasing behavior

A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price (holding constant all the other determinations of demand, such as income)

Demand for which a given percentage change in price results in a smaller percentage change in quantity demanded

Demand for which a given percentage change in price results in an even larger percentage change in quantity demanded

Costs that remain constant and do not vary based on the number of units produced or sold

Costs that vary depending on the number of units produced or sold

The process of calculating the point at which the sales volume achieves a profit of zero. Divide total fixed costs by the unit contribution margin, which is the selling price per unit minus the variable costs per unit.Use a cost-volume-profit (CVP) graph.

The point at which the costs of producing a product equal the revenue made from selling the product

Match competitor prices.Price lower than competitors, offering customers greater value.Price higher because the firm offers a superior product

The prices that consumers consider reasonable and fair for a product

Charging someone less than they are willing to pay

Easier to start with a higher price than discount it if it is too expensive, rather than trying to increase a lower price

Unbundling, Escalator Clause,Shrinkflation

Separating out the individual goods, services, or ideas that make up a product and pricing each one individually

A section in a contract that provides for price increases if certain, specified conditions occur

The process of items shrinking in size or quantity while their prices remain the same or increase

Markup pricing, Odd/even pricing, Prestige pricing, Loss leader pricing, seasonal discounts, price bundling

A certain amount is added to the cost of the product, to set the final price: also called cost-plus pricing

The amount a product sells for above the total cost of the product itself

A firm prices products a few cents below the next dollar amount, gives the feeling of discount

A firm sets the price at even dollar amounts, makes it easier to process

Involves pricing a product higher than competitors to signal that it is of higher quality

Involves selling a product at a price that causes the firm a financial loss, but might attract more customers

Price reduction given to customers purchasing goods or services out of season

Two or more products are packaged together and sold at a single price

The Marketing of goods or services using digital media, such as e-mail, websites, search engines, and social media platforms

Internet-based applications that enable users to create their own content and share it with others who access these sites

Technology that allows the transmission of data, voice, and video via any wireless-enabled computing device, without a fixed physical connection

Pervasiveness of social technologies today.Powerful information distribution ecosystems.

A feeling of isolation and concern about missing out on what is occurring in the world around us

Paid media, Owned media, Product reviews

Advertising

Brand controlled sources, such as a website

Product reviews

company-controlled brand management fading away. Increasing customer expectation of brand transparency

The moment when a customer uses a digital device to begin learning about a potential purchase

Incredibly short window of three to five seconds after a shopper first encounters a product on a store shelf

Actual experience a customer has with a product once they buy it and return home.

A form of Internet marketing that promotes websites by increasing their visibility in search engine results pages

A software system designed to search for information on the World Wide Web

Adjusting or rewriting website content and site architecture to achieve a higher ranking in search engine results pages to enhance pay per click (PPC) listings

The process of generating website traffic by purchasing advertisements on search engines

Purchased links that typically appear either at the very top or upper right of a search-results page

Build an index of all web content using web crawlers or spiders. Provide user with ranked list of websites.

Continuously crawl the Internet and categorize website information

Marketing practice that uses combinations of digital tools such as websites, online videos, e-mail, blogs, social media, mobile ads, mobile apps, and other digital platforms

Establish and maintain a strong social presence. Know what customers want from the social channel. Social media can help build a successful brand. Allows the firm to develop a deeper relationship with customers. Can generate positive word-of-mouth communication

A marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined and profitable audience.

An online journal in which people or companies post their thoughts and other content

A concise yet authoritative report or guide that seeks to inform readers about a complex issue and presents the issuing body's philosophy on the matter

Highly targeted, personalized, relationship-building e-mail messages.

The posting of digital video content on brand websites or social media sites such as Youtube, Facebook, and others.

Credible, third-party articles and reviews from unbiased journalists

Content created by a brands fans and followers

Any content developed and owned by a brand

Infographics, Live streaming, Pictorial communication

Attempts to remove content from the internet cause it to instead spread more broadly

The use of GPS data transmitted from a mobile device to adapt content, messaging, or service delivery to a target's location

A social, entertainment, or information service that allows a company to reach and engage with it's audience using tools and platforms that capture the geographic location of the audience

The process of identifying and assessing what is being said about a company, individual, product, or brand on the internet.

Volume of mentions, Engagement, Reach, Sentiment Analysis (opinion mining), Share of Voice, Social Media Marketing dashboards, ROI

Most common and easiest measure

One of the most important areas to measure in social media

Measures total audience size

The analysis of the feelings (attitudes, emotions, and opinions) behind the words, using natural language processing tools

Provide data visualizaitons that illustrate performance over time

Positive ROI is the ultimate criteria

Permission granted in the knowledge of the possible consequences

Negatively impact brand trust, customer retention, and purchasing behaviors

Marketers should be cautious when targeting populations that may be considered vulnerable (children, ethnicities, sexual orientation)

Never give cause for privacy concerns. Always credit when resharing someone else’s content. Always divulge your affiliation