WSU MKTG 360 - Final Exam Study Guide (5 pages)

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Final Exam Study Guide



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MKTG 360 1nd Edition Final Exam Study Guide Lectures 15 19 Lecture 15 19 1 Cause related marketing is the process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customer engage in revenue providing exchanges that satisfy organizational and individual objectives 2 History of Cause related marketing a American Express 1983 joined the Statue of Liberty Restoration Fund b 1 for each use of its charge card c 1 for each new card issued d 28 increase in card usage over the same time period in 1982 e 1 7 million contributed by American Express to the Statue of Liberty Restoration Fund 3 Cause related marketing is unique a CRM i Contributions to charity from sales ii Offering economic incentives are NOT key characteristics of CRM e g coupons refund offers but can be included b Corporate philanthropy i Donations made on behalf of the company not necessarily based on sales ii Can include sponsorships 4 Is cause related marketing all good a Pros i Increase sales ii Boost public image iii Pacify customers iv Help good causes b Cons i Possible exploitation ii Possible trust issues iii Customers may not agree with the cause being helped iv Possible employee rifts 5 When is Cause related marketing successful a When the consumers employees stakeholders are on board with helping the cause b When the consumers perceive the company to have altruistic motives c When there is a high fit with the cause 6 7 8 9 d When the company is involved in the cause for a longer period of time e When the company is involved with the cause besides just donating money Basic concepts a Overriding Principle i Click Whirr or Automatic Responding ii We often rely on heuristics rules of thumb and respond mindlessly iii Some argue mindlessness is the key to successful social influence techniques b Some Examples i Mother Turkeys ii Jewelry at Twice the Price iii Fixed Action Patterns at Copy Machine c Capitalizing on Genuine Principles i We should listen to authorities reciprocation is reasonable ii Problems if used inappropriately d Social Influence and Ego Depletion i We are especially likely to fall back on heuristics automatic processes or habitual patterns when we are ego depleted Principle 1 Reciprocation a Reciprocation i You scratched my back I ll scratch yours ii Get your free samples iii Get a free Trip to Reno iv Door in the Face Technique 1 Ask big get turned down make concession then ask small v That s Not All Technique 1 No chance to turn down initial request Principle 2 Commitment and Consistency a Commitment Consistency i Cognitive Dissonance Leon Festinger 1 We like our attitudes and behavior to be consistent 2 When they are inconsistent we feel tension 3 Tension is uncomfortable and we wish to reduce it 4 We can change behavior or attitude to align the two ii Foot in Door Technique 1 Ask for a small act of compliance then build on it iii Low Ball Technique 1 Make a low offer then increase it once people are hooked Principle 3 social Proof a Social Proof i We tend to follow the crowd ii Laugh Tracks iii Best Seller Lists b Descriptive vs Injunctive Norms i Descriptive Norms What the majority of others is doing ii Injunctive Norms What people should do 10 Principle 4 Liking a We are more likely to comply with requests from those we like b Liking often based on i Attractiveness ii Familiarity iii Similarity iv Ingratiation 11 Principle 5 Authority a Authority i We are more likely to comply with requests from and follow the recommendations of authorities 12 Principle 6 Scarcity a Scarcity i We believe that things that are scare are more valuable ii More likely to pay more for scarce resources iii Works partly on the concept of psychological reactance when we think we may not be able to get a limited resource we feel our freedom has been restricted and we react against that possibility b Examples i Overlapping appointments for selling cars ii Excuse me while I take this call iii One day only at the Bon Marche 13 Principle 7 Scarcity a Manufacturers Artists often use this there were only X number made and when they are gone they are gone b For extra measure they may even autograph it signaling the limited edition and the cue of future worth potential 14 Distribution channels a The bridge between producers and final consumers which allows firms to collaborate in the physical movement of the goods or services 15 Logistics a The process of i Planning ii Implementing iii Controlling b The efficient cost effective forward and reverse flow of raw materials in process inventory finished goods services and related information from point of origin to point of consumption for the purpose of conforming to customer requirements c Logistics The process of designing managing and improving the movement of products through the supply chain d Inbound raw inputs and outbound semi or fully finished outputs logistics are important e Reverse logistics is increasingly important due to sustainability practices of firms 16 Supply chain management a The integration of key business processes from end user through original suppliers that provides products services and information that add value for customers and other stakeholders b Importantly it also includes coordination and collaboration with channel partners which can be suppliers intermediaries third party service providers and customers c Supply Chain Management integrates supply and demand management within and across companies 17 Intermediaries a They handle the flow of products or services to the retailer or business user b Independent intermediaries do business with many different manufacturers and many different customer firms and thus help the flow of goods throughout the marketplace c Merchant wholesalers are independent intermediaries that buy goods from manufacturers and sell to retailers and other B2B organizations d Merchandise agents or brokers provide services in exchange for commissions but never take title on the product 18 Distribution the marketing mix and ethical issues a Distribution decisions interact with the marketing mix in a number of ways i Place decisions influence pricing costs ii Distribution decisions can help develop a position in the market iii Nature of the product influences choice of distribution channels especially retailers b Distribution decisions can create ethical dilemmas i Slotting allowances shelf space ii Large companies


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