Study Guide: Chapter 1 Saturday, January 14, 2017 1:45 PM
Chapter 1 Summary
CHOBANI CASE STUDY:
Positive word of mouth, Youtube channel, Olympic sponsorship
Understanding customer food values and reaching customers
Marketing is the activity for creating, communicating, delivering, and exchanging offerings that have value for its customers, the orga nization, its stakeholders, and society at large
Affects all individuals, all organizations and all industries/countries
Facilitate relationship with organization's shareholders, customers, suppliers, and other organizations
For Marketing to occur…2 or more parties with unsatisfied needs, desire/ability to solve needs, a way for parties to communicate, something to exchange
Discover Consumer needs via survey, tests, research
Crowdsourcing website
Solicit/eval ideas
Focus on what customer benefit is and learn from past mistakes
Need vs Want --> Marketing satisfies both
Need occurs when a person feels deprived of basic necessities Want is a need that is shaped by a person's knowledge, culture, and personality
Markets = people with desire/ability to buy offering
Target market = specific group toward which organization directs its marketing program
Marketing mix = product, price, promotion, place
Controllable factors vs uncontrollable factors (CREST)
Customer Value Proposition = cluster of benefits that organization promise to satisfy needs
Relationship Marketing = link organization to customer, employee, supplier, other partners
Marketing Program
Marketing segments = groups that have common desires and similar market response
Marketing concept = organization satisfy consumer and reach organization's goal
Marketing Orientation = continuous collection of custom info, share info across department, use to create customer value
Marketers need to understand what's the value of a product from customers' perspective
Study Guide Page 1 Look for correlated patterns of behavior across individuals
Analytics can be simple as estimating correlations between viewing habit variables
Safe Bet
Marketing is the combination of Arts & Science
Marketing seeks to
Discover the needs and wants of prospective customers
Satisfy them
Marketing Myopia by Theodore Levitt
Some companies fail b/c they focus on product they offer rather than the value they provide to their customers
Study Guide Page 2 Customer Relationship Management (CRM)
Design customized coupons/catalogs/discount based on your purchases
Use club card to keep track of your purchases over the years
Who Markets? What is Marketed? Who Buy/Uses What is Marketed? Who Benefits? How Consumer Benefit?
Organizational Buyers = ultimate consumer who use products
Coke Example = Brand loyalty, scientific approach does not include consumer feelings
Netflix Example = use data/science ---> see relationship between 2 variables
Study Guide Page 3 Study Guide: Chapter 2 Sunday, February 5, 2017 11:18 PM
Chapter 2 Summary
(1) for profit organization (2) non-profit organization (3) government agencies
Strategy = organization's long-term course of action designed to deliver a unique customer experience while achieving its goal
Corporate Level
What business(es) should the company be in and how to allocate resources?
Mission Statement = the essential purpose of the company that differentiates itself from others, with respect to its customers, markets, products, and technologies
Strategic Business Unit Level
Subsidiary, individual or unit of an organization that markets a set of related offerings to a clearly defined group of customers
Single vs Multi BU
Functional Level
Development and coordination of resources through which strategies can be executed effectively and efficiently
Study Guide Page 4 (1) Competencies: what are we really good at? (2) Customers (3) Competitors
Marketing Dashboard = visual computer display of info to achieve marketing objective
Vertical axis = market growth rate
Horizontal axis = relative market share
Business portfolio Analysis = technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units as though they were a collection of separate investments
Diversification analysis = technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products
Cash cows = SBU that generate large amounts of cash
Star = SBUs with high share of high-growth markets
Question Marks = SBUs with low share of high growth markets
Dogs = SBUs with low shares of slow growth markets
Study Guide Page 5 Market Penetration, market development, product development, diversification
Planning Phase Business Portfolio Analysis Analyze each SBU and determine the amount of investment each SBU receives
Consider the current status in the market and the potential of the market growth
Market-Product Focus and Goal Setting
Market Segmentation
Points of Differentiation
Marketing Program
Product, Price, Promotion, Place (Distribution) Strategy
The Implementation Phase
Obtaining resources
Designing the marketing organization
Study Guide Page 6 Designing the marketing organization
Defining precise tasks, responsibilities, and deadlines
Executing the marketing program
The Evaluation Phase
Comparing results with plans to identify deviations --> planning gap
Acting on deviations
Exploit positive deviation and correcting a negative deviation
Study Guide Page 7 Study Guide: Chapter 3 Monday, February 6, 2017 12:07 AM
Chapter 3 Summary Notes
Competitive Regulatory Economical Social Technological
Market Structures
Monopoly
Oligopoly
Levels of Competition
Direct competition
Indirect competition
Budget competition
Protection competition
Antitrust act
Industry deregulations
Government Regulatory Agencies Federal Trade Commission
Issue cease and desist orders
Order corrective advertising
Federal Communications Commission
FDA
Environmental Protection Agency
Study Guide Page 8 Securities and Exchange Commission
Study Guide Page 9 Study Guide: Chapter 5 Monday, February 6, 2017 11:25 AM
Chapter 5 Summary Notes
Consumer Purchase Decision Process
The purchase decision process consists of the 5 stages a buyer passes through in making choices about which products and services to buy
Problem Recognition
Consumer becomes aware of significant discrepancy between the existing situation and the desired situation
Advertising and sales people can help to activate the consumer's desire to get a product
Information Search
Internal search
External search
Alternative Evaluations
Evaluative criteria
Consideration set
Purchase Decision
Where to buy
When to buy
Postpurchase Behavior
Consumers - maybe regret
Cognitive dissonance = feeling of post-purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives
Companies - keep customers satisfied and returning
Return/refund policy
Handle complaints professionally
Involvement = personal, social, and economic significance of the purchase to the consumer
High involvement purchase items are…
Study Guide Page 10 (1) expensive
(2) can have serious personal consequences
(3) could reflect on one's social image
Study Guide Page 11 Study Guide Page 12 Study Guide: Chapter 6 Monday, February 6, 2017 11:38 AM
Chapter 6 Summary Notes
Business marketing = involves the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others
Organizational buyers manufacturers, wholesalers, retailers, and gov agencies that buy goods and services for their own use or for resale
Study Guide Page 13 Buying Situations
Straight Rebuy = buyer routinely reorders something without any modifications
Modified Rebuy the buyer wants to modify product specs, prices, terms, or suppliers
New Buy = the buyer purchases a product or service for the first time
Problem Recognition
A make buy decision involves an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself
Information Search
Value analysis involves a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs
Study Guide Page 14 Study Guide: Chapter 8 Monday, February 6, 2017 11:50 AM
Summary Notes Chapter 8
Market Research = the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
Information Collection
Primary data = collect info for the specific research project
Secondary Data = data already collected
Public data
Private data
Study Guide Page 15 Causal Research = designs identify cause-and-effect relationships between variables and constructs
Research is designed to determine whether a change in one variable likely caused an observed change in another
Controlled Experiment
Widely used in Marketing Research
Experimental group = who receive treatment
Control group = who did not receive treatment
Study Guide Page 16 Study Guide: Chapter 9 Monday, February 6, 2017 11:56 AM
Segmentation, targeting and position = key decisions in transforming one's analysis into a coherent set of marketing actions
Market Segmentation
Customers are heterogeneous in their
Needs/preferences and purchasing power
Responses to marketing mix offerings
Segmentation is the process of dividing the total market into smaller, relatively homogenous groups
Homogeneous within the customers in a market segment should be as similar as possible with respect to their needs and responses to market mix offerings
Heterogeneous between the customers in different segments should be as different as possible
Study Guide Page 17 Study Guide: Chapter 10 Tuesday, March 14, 2017 9:03 PM
Chapter 10 Summary
Product is a good, service or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk A good has tangible attributes that a consumer's five senses can perceive or intangible attributes kkkkkkkkkkkkkkkkkkkkkkkkkkkkkk
Nondurable good = item consumed in one or a few uses
Food product, fuel
Durable good = one that usually lasts over many uses
Appliances, cars, smartphones
Services are intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
Consumer products = products purchased by the ultimate consumer
(1) the effort the consumer spends on the decision (2) attributes used in making the purchase decision (3) frequency of purchase
Convenience products = items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort
Shopping products are items for which the consumer compares several alternatives on criteria such as price, quality, or style
Specialty products = items that the consumer makes a special effort to search out and buy
Unsought products = items that the consumer does not know about or knows about but does not initially want
Business products = products organizations buy that assist in providing other products for resale
Sales are often result of derived demand or sales of business products result from the sale of consumer products
Classified as components or support products
Services classified whether they are delivered by (a) people/equipment (b) business/nonprofit firms © government agencies
Product item is a specific product that has a unique brand, size, or price
Product line is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range
Product Mix = consists of all of the product lines offered by an organization
Newness
If a product is functionally different from existing products, it can be defined as new
New product in terms of their effects on consumption --> classifies new products according to the degree of learning required by the consumer
Study Guide Page 18 Continuous Innovation means consumers don't have change their behaviors
Dynamically Continuous Innovation means consumers don't have to change too much new behaviors
Discontinuous Innovation means consumers have to change/learn new behavior
New in legal terms
Newness from organization's perspective
Product line extension
Jump in Innovation
Brand extension
Radical Innovation
Protocol is a statement that before product development begins, identifies (1) a well-defined target market (2) specific customers' needs, wants, and preferences (3) what the product will be and do to satisfy consumers
New Product Failures
Insignificant point difference
Incomplete market and product protocol before product development starts
Not satisfying customer on critical factors
Bad timing
No economical access to buyers
Poor product quality
Poor execution of the marketing mix, brand name, package, price, promotion, distribution
Too little market attractiveness
Encountering groupthink in task force and committee meetings
Avoiding the NIH problem
New-product process
New product strategy development = the stage of the new-product process that defines the role for a new
Study Guide Page 19 New product strategy development = the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives
Firm uses SWOT and environmental scan
Idea generation = second stage involves developing a pool of concepts to service as candidates for new products, building upon the previous stage's results
Employee/co-worker, customer/supplier, R&D, competitive, small firm/universities/inventors
Screening and evaluation = stage of new-product process that internally and externally evaluates new product ideas to eliminate those that warrant no further effort
Customer experience management = process of managing the entire customer experience within the company
Business Analysis = specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections
Development = stage of the new-product process that turns the idea on paper into a prototype
Market testing = stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy
Standard test market where company develops products and attempts to sell through normal distribution channels
Controlled Test Markets involves contracting the entire test program to an outside service
Commercialization = the stage of the new-product process that positions and launches a new product in full-scale production and sales
Study Guide Page 20 Study Guide: Chapter 11 Tuesday, March 14, 2017 9:03 PM
Chapter 11 Summary
Product Life Cycle = stages a new product goes through in the marketplace
Introduction stage
Most spending of advertising and promotion to stimulate primary demand or desire for product class rather than for specific brand
Product introduced to target market, sales grow slowly, profit is minimal
High initial price may be used as part of a skimming strategy
To discourage entry, a company can price low as penetration pricing
Growth stage
Rapid increases in sales and where competition starts
Product sales grow rapidly
Important to broaden distribution
Maturity stage
Slowing of total industry sales or product class revenue + most marginal competitors leave market
Holding market share through product differentiation and new buyers
Decline stage
Study Guide Page 21 When sales drop
Consume disproportionate share of management and financial resources relative to future worth
Product deletion = dropping product from company product line is most drastic strategy
Harvesting is when company retains the product but reduces marketing cost
No set length of product life cycle
High learning product = significant customer education is required and extended intro period
Low-learning product = begin immediately and benefits of purchase are readily understood
Fashion product = style of the times
Fad product = experiences rapid sales on intro and equally rapid decline
Product class = entire product category or industry
Product form = pertains to variations within the product class
Product/brand manager manes the marketing efforts for a close-knit family of products or brands
Product modification involves altering one or more of a product's characteristics to increase product's value to customers and increase sales
Market modification = strategies increase a product's use among existing customers or create new use situations
Study Guide Page 22 new use situations
Finding new customers
Increasing a product's use
Creating new use situation
Product repositioning changes the place a product occupies in a consumer's mind relative to competitive products
Reacting to a competitor's position
Reaching a new Market
Catching a Rising Trend
Changing the Value Offered
Trading down = involves reducing a product's number of features, quality, or price
Trading up = involves adding value to the product through additional features or higher quality materials
Branding = organization uses a name, phrase, design, symbols or combo to identify its products and distinguish them from those of competitors
How to Measure
Financial analysis
Role of brand
Brand Strength
Study Guide Page 23 Trade name = commercial, legal name under which company does business
Trademark = identifies that a firm has legally registered its brand name or trade name so firm has exclusive use
Brand personality = set of human characteristics associated with a brand name
Brand equity = added value a brand name gives to a product beyond the functional benefits provided
Brand Licensing = contractual agreement whereby one company allows its brand names or trademarks to be used with products or services offered by another company for a fee
Multiproduct branding = company uses one name for all its products in a product class
Family branding or corporate branding such as Microsoft, Sony, Samsung
Product line extensions, subbranding, brand extensions. Co-branding
Multibranding = giving each product a distinct name
Private branding = manufactures products but sells them under the brand name of a wholesaler or retailer
Mixed Branding = firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market
Packaging component of a product refers to any container in which it is offered for sale and on which label info is conveyed
Warranty is statement indicating liability of manufacture for product deficiency
Study Guide Page 24 Study Guide: Chapter 12 Tuesday, March 14, 2017 9:03 PM
Chapter 12 Summary
Services are intangible activities/benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
The 4 I's of Service
Intangibility
Inconsistency
Inseparability
Cannot separate deliverer of service from service itself
Inventory
Idle production capacity is when service provider is available but no demand
Service continuum is the range of product-dominant to service-dominant offerings
Classifying Services
Delivered by people or equipment
For-profit or non profit
Government sponsored
Seven Ps of Service Marketing
Product
Price
Place
Promotion
People
Physical Environment
Process
Study Guide Page 25 Study Guide: Chapter 13 Tuesday, March 14, 2017 9:05 PM
Chapter 13 Summary
Price is the money or other considerations exchanged for the ownership or use of a product or service
Barter is the practice of exchanging products and services for other products and services rather than for money
Price Transparency = consumer's near instantaneous access to competitors' prices for the same offering
To generate profit…
Suppliers whose efficiencies and lower hourly wages can reduce the prices the buying firms must pay
New markets to increase revenues
Value =
Value pricing = the practice of simultaneously increasing product and service benefits while maintaining or decreasing price
Study Guide Page 26 Pricing Objectives = specifying the role of price in an organization's marketing and strategic plans
Profit, sales, market share, unit volume, survival, social responsibility
Pricing constraints = factors that limit the range of prices a firm may set are referred to
Demand for Product
Newness of Product (Life Cycle)
Cost of Producing and Marketing the Product
Cost of Changing Prices
Single Product vs Product Line
Type of Competitive Market (pure competition, monopolistic competition, oligopoly, pure monopoly)
Consumer-Driven Pricing Actions --> more efficient buying decisions
Seller/Retailer Driven Pricing actions
Demand curve = graph that relates the quantity sold and price showing max number of units that will be sold at a given price
Study Guide Page 27 Demand factors are consumer tastes, prices and availability of similar products, consumer income
Total revenue = P x Q
Average revenue =
Marginal revenue =
Price Elasticity of Demand = how sensitive consumer demand and the firm's revenues are to changes in the product's price
P(e)=
Study Guide Page 28 Break Even Analysis = technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output
Study Guide Page 29 Study Guide: Chapter 14 Tuesday, March 14, 2017 9:05 PM
Chapter 14 Summary
Skimming Pricing = setting the highest initial price that customers who really desire the product are willing to pay
Enough prospective customers to buy
High initial price will not attract competitors
Lower price has minor effect on sales volume and reducing unit costs
Customers interpret high price as signifying high quality
Penetration pricing = setting low initial price on new product to appeal immediately to the mass market
Many segments of market are price sensitive
Low initial price discourages competitors
Unit production and marketing costs fall as production volume increase
Prestige pricing = involve setting a high price so that quality or status conscious consumers will be attracted to the product and buy it
Price Lining = firm that is selling not just a single product but a line of products may price them at a number of different specific pricing points
Odd-even pricing = setting prices a few dollars or cents under an even number
Study Guide Page 30 Odd-even pricing = setting prices a few dollars or cents under an even number
Target Pricing = manufacturer adjust the composition and features of a product to achieve the target price to consumers
Bundle Pricing = marketing of 2 or more products in a single package price
Standard markup pricing = add fixed percentage to the cost of all items in a specific product class
Cost-plus pricing involves summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
Target profit pricing is a firm that sets an annual target of a specific dollar volume of profit
Loss-leader pricing is not to increase sales but to attract customers in hopes they will buy other products
Fixed-price policy = one-price policy is setting one price for all buyers
Dynamic pricing policy = flexible price policy involves setting different prices for products and services in real time in response to supply and demand conditions
Quantity discounts = reductions in unit costs for a larger order
Study Guide Page 31 Quantity discounts = reductions in unit costs for a larger order
Noncumulative are based on the size of an individual purchase order
Cumulative apply to the accumulation of purchases of a product over a given time period
Allowances like discounts are reductions from list or quoted prices to buyers for performing some activity
Trade in allowance is a price reduction given when a used product is accepted as part of the payment on a new product
Free on board origin pricing = involve seller naming the location of this loading as the seller's factory
Uniformed delivered pricing is including all transportation costs
Price discrimination is the practice of charging different prices to different buyers for goods of like grade/quality
Price fixing = 2 companies setting prices
Study Guide Page 32 Study Guide: Chapter 15 Tuesday, March 14, 2017 9:05 PM
Chapter 15 Summary
Marketing channel = individuals and firms involved in the process of making a product or service available for use or consumption by consumers on industrial users
Direct Channel vs Indirect Channel (intermediaries)
Internet Marketing Channels
Multichannel market = blending of different communication and delivery channels that are mutually reinforcing in attraction, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
Dual Distribution = arrangement whereby firm reaches different buyers by employing 2 or more different types of channels for the same basic product
Study Guide Page 33 Vertical Marketing systems = managed and coordinated marketing channels designed to achieve channel economies and max marketing impact
Forward integration
Intensive distribution = firm tries to place its products/services in as many outlets as possible
Exclusive Distribution = extreme opposite of intensive distribution because only one retailer in
Study Guide Page 34 Exclusive Distribution = extreme opposite of intensive distribution because only one retailer in specified geo area carries the firm's products
Selective distribution = between 2 extremes and means that a firm selects a few retailers in a specific geo area to carry its products
Buyer Requirements 1) Information 2) Convenience 3) Variety 4) Pre- or post sale services
Channel conflict arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
Vertical conflict is between different levels in marketing channel
Disintermediation is when a channel member bypasses another member and sells/buys products direct
Horizontal conflicts occurs with intermediaries at the same level in a marketing channel
Study Guide Page 35 Logistics = activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Study Guide Page 36 Study Guide: Chapter 16 Tuesday, March 14, 2017 9:05 PM
Chapter 16 Summary
Retailing is including all activities involved in selling, renting and providing products and services to ultimate consumers for personal use
Benefits to both manufacturers and consumers
Store brand strategy = cheap lower quality ---> point of differentiation
Form of ownership distinguishes retail outlets based on whether independent retailers, corporate chains or contractual systems own the outlet
Independent retailer
Corporate chain (Macy)
Contractual systems
Level of service = describe the degree of service provided to the customers
Self-service means customers perform many functions during purchase process
Limited service = provide some services
Full Service = provide many services to their customers
Merchandise Line = how many different outlets are discussed in greater detail
Scrambled merchandising = offering several unrelated product lines in a single store is common
Study Guide Page 37 common
Hypermarket are large markets based on "offer everything under one roof"
Intertype competition = competition between very dissimilar types of retail outlets
Non-store Retailing
Automatic Vending
Direct Mail and Catalogs
TV Home Shopping
Online Retailing
Telemarketing
Direct Selling
Retail positioning matrix = matrix developed by MAX which positions retail outlets on 2 dimensions
Breadth of product line and value added
Retailing mix = activities related to managing the store and the merchandise in the store
Off-price retailing = involves selling brand name merchandise at lower than regular prices
Retail Pricing
Store Location
Retail Communication
Merchandise
Category management = assign a manager the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other
Wheel of retailing = how new forms of retail outlets enter the market
Retail life cycle = process of growth and decline that retail outlets like products experience
Multichannel retailers = utilize and integrate a combo of traditional store formats and non-store formats
Merchant wholesalers = independently owned firms that take title to the merchandise they handle
Industrial distributor
Study Guide Page 38 Study Guide Page 39 Study Guide: Chapter 17 Tuesday, March 14, 2017 9:05 PM
Chapter 17 Summary
Integrated marketing communication = concept of designing marketing communications programs that coordinate all promotional activities - advertising, personal selling, sales promotion, public relations and direct marketing to provide a consistent message across all audiences
Communication = process of conveying a message to others and it requires 6 elements: source, message, channel of communication, receiver, and processes of encoding/decoding
Feedback is the sender's interpretation of the response and indicates whether the message was decoded and understood as intended
Noise includes extraneous factors that can work against effective communication by distorting a message or the feedback received
Advertising = any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor
Paid aspect
Nonpersonal component since mass media
Personal selling = 2 way flow of communication between a buyer/seller designed to influence a person's or group's purchase decision
Public Relations = form of communication management that seeks to influence the feelings, opinions or beliefs held by customers, prospective customers, stock holders, suppliers, employees, and other publics about a company and its products of services
Word of mouth marketing
Study Guide Page 40 Word of mouth marketing
Highly credible but may be expensive and difficult to control
Publicity = non-personal, indirectly paid presentation of an organization, product, or service
Sales promotion = short-term inducement of value offered to arouse interest I buying a product/service
Samples, trials, coupons, discounts
Effective at encouraging purchase but negative image less effective
Direct marketing = uses direct communication with consumers to generate a response in the form of an order, a request, for further info or a visit to a retail outlet
Very targeted, rich medium; low response rates
Stages of the Buying Decision
Prepurchase stage = advertising more helpful than personal selling because ad informs the potential customer of the existence of the product and the seller
Purchase Stage = importance of personal selling is highest whereas impact of advertising is lowest
Coupon, discounts, rebates
Postpurchase Stage = Personal contact after sale and reduce anxiety
Study Guide Page 41 Push strategy = directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product
Pull strategy = directing promotional mix at ultimate consumers to encourage them to ask the retailer for a product
Hierarchy of effects = sequences of stages a prospective buyer goes through from initial awareness of a product to eventual action
Awareness, interest, evaluation, trial, adoption
Percentage of sales budgeting, competitive parity budgeting, all-you-can-afford budgeting, objective and task budgeting
Direct orders = result of offers that contain all the info necessary for a prospective buyer to make a decision to purchase and complete the transaction
Study Guide Page 42 Study Guide: Chapter 18 Tuesday, March 14, 2017 9:05 PM
Chapter 18 Summary
Product advertisements = focuses on selling a good or service
Pioneering or informational
Competitive
Reminder
Institutional advertisements = build goodwill or an image for an organization rather than promote a specific good or service
Message content is made up of both informational and persuasive elements
Reach = number of different people or households exposed to an ad
Rating = the percentage of households in a market that are tuned to a particular TV show or radio station
Frequency = average number of times a person in the target audience is exposed to a message or advertisement
Gross rating points (GRP) = reference number when reach is multiplied by frequency
Cost per thousand (CPM) = cost of reaching 1000 individuals or households with the ad message in a given medium
Study Guide Page 43 TV, Radio, Magazine, Newspaper, Yellow Pages. Internet, Outdoor, Other Media, Selection Criteria,
Continuous steady schedule = seasonal factors unimportant ads are run through the year
Flighting (intermittent) schedule = periods of ad are scheduled between periods of no advertising to reflect seasonal demand
Pulse schedule = flighting schedule combined with a continuous schedule because of increases in demand, heavy periods of promotion, or intro of a new product
Pretests: Portfolio Tests, Jury Tests, Theater Tests
Limited service agencies specialize in one aspect of the ad process such as providing creative services to develop the ad copy, buying previously unpurchased media, or providing Internet
In-house agencies made up of the company's own ad staff may provide full services or a limited range of services
Posttests: aided recall, unaided recall, attitude tests, inquiry tests, sales tests
Consumer-oriented sales promotion = consumer promotions are sales tools used to support a
Study Guide Page 44 Consumer-oriented sales promotion = consumer promotions are sales tools used to support a company's ad and personal selling
Coupons
Deals
Premiums
Contests
Sweepstakes
Samples
Loyalty Programs
Point of Purchase Displays
Rebates
Product Placement
Trade-oriented sales promo = trade promotions are sales tools used to support a company's ad and personal selling directed to wholesalers, retailers or distributors
Cooperative advertising = encourage better quality and greater quantity in the local advertising efforts of resellers
Increasing the value of promotion is to emphasize long-term relationship and increase self- regulation
Study Guide Page 45 Study Guide: Chapter 19 Tuesday, March 14, 2017 9:05 PM
Chapter 19 Summary
Social Media are online media where users submit comments, photos, and videos accompanied by a feedback process to identify popular topics
Media richness = degree of acoustic, visual and personal contract between 2 communication partners
Self-disclosure = individuals want to make positive impression to achieve a favorable image is affected by degree of self-disclosure about a person's thoughts, feelings, likes, and dislikes
Blog = web page that serves as publicly accessible personal journal and online forum for an individual or organization
Study Guide Page 46 individual or organization
User generated content various forms of online media content that are publicly available and created by end users
Social Media
Ability to reach both large and niche audiences
Expense and access
Training and number of people involved
Time to delivery
Permanence
Credibility and social authority
Audience data available for social networks
Recent growth of 4 social networks
Measuring Results of Social Media Programs
Inputs or Costs
Outputs or Revenue
Specialized Focus for Other Social Networks
Price-comparison searches, location-based promotions, loyalty programs
Consumer purchase where the buyer controls all, consumer purchase where sensors have some control,
Study Guide Page 47 control,
Study Guide Page 48 Study Guide Page 49 Study Guide: Chapter 7 Tuesday, March 14, 2017 9:02 PM
Chapter 7 Summary
Countertrade = the practice of using barter rather than money for gaing global sales
GDP = monetary value of all products and services produced in a country during one year
Balance of trade = difference between the monetary value of a nation's exports and imports
Competitive advantage of Nations
Factor conditions
Demand conditions
Related and supporting industries
Company strategy, structure and rivalry
Economic Espionage Act makes the theft of trade secrets by foreign entities a federal crime
Tariffs are a gov tax on products or services entering a country
Quota = restriction placed on the amount of a product allowed to enter or leave a country
WTO, EU, NAFTA
Global competition = exists when firms originate, produce, and market their products and services worldwide
Study Guide Page 50 Strategic alliances = are agreements among 2 or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation
Multidomestic marketing strategy = as many different product variations, brand names, and advertising programs as countries in which they do business
Global Marketing Strategy = practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
Multinational firm views the world as consisting of unique parts and markets to each part differently
Cross cultural analysis = involves the study of similarities and differences among consumers in 2 or more nations or societies
Value = represent personally or socially preferable modes of conduct or states of existence that tend to persist over time
Cultural symbols = things that represent ideas and concepts
Consumer ethnocentrism = tendency to believe that it is inappropriate to purchase foreign-made products
Joint Venture = foreign company and a local firm invest together to create a local business
Study Guide Page 51 Joint Venture = foreign company and a local firm invest together to create a local business
Product may be sold globally in the same form, with some adaptions, or as a new product
Dumping = firm sells a product in a foreign country below its domestic price or below its actual cost
Gray Market = parallel importing is where products are sold through unauthorized channels of distribution
Individuals buy products in a lower-priced country from manufacturer's authorized retailer,
Study Guide Page 52 Individuals buy products in a lower-priced country from manufacturer's authorized retailer, ship them to higher-priced countries and sell below manufacturer's suggested retail price
S
Study Guide Page 53