Study Guide: Basic MarketingChapter 11:- Advertising: primary means to communicate with customers- Integrated marking communications: maintain message’s holistic nature across all media choices- Billboards, pop-up ads, sponsored events, tv, etc.- Advertising effects—are cumulative; have short term and long term effects- Attempts to persuade potential customers that the brand is superior, facilitates customers’ awareness - Advertising arguments: there are one- and two-side arguments- One-sided argument: means that the company focuses on expressing the benefits of its product to the consumer—common with advertisers and are straight forward- Two-sided argument: the company describes the pros and cons of its brand—used when your target customers already know the brand hassome weaknesses- ELM: elaboration likelihood model—- Central route: ad’s argument persuades- Peripheral route: ad’s peripheral cues persuade not argue- Memory: advertising “should” influence— - Cognition: awareness and knowledge- Affect: attitudes and associations- Behavior: actions - Attitudes towards advertising—- Attitudes toward the ad ( )- Attitudes toward the brand ( )o Marketers believe = = likelihood to purchase- Advertising is tested—using; concept and copy testing (target understands the message), memory tests (recall and recognition), attitudinal tests, and behavioral measuresChapter 12:- Relationships between sales and advertising—- The more spent towards advertising the more likely that company’s sales are greater; there are roughly 3 approaches—o Most companies take an approach of having a constant proportional relationship between their spending and incomeo A second approach is to spend disproportionately more ad dollars to try and move up in the market shareo A third possible approach would be to treat advertising expenditures as an investment - GRP: gross rating points = reach x frequency- Be able to identify strong links and the “central” member(s) of the link; the person you would promote your product to the most- Media scheduling: - Continuous: regularity in ad exposure- Occasional: pop up from time to time- Seasonal: infrequent and focused on the preterm season for the product- Media comparisons: - Tv ads- most expensive, yield the largest reach- Magazines- broad appeal and can be targeted; require long lead time for production, good reproduction quality- Radio and newspapers- nationally, but also local markets; less expensive but smaller audiences- Billboards- relatively inexpensive, good for local coverage- Online and direct mail- customized; online ads are inexpensive but penetration isn’t 100%, direct mail is inexpensive but not efficient- Designing a sales force: - How many people do I need? Where do I deploy them? How do I compensate them?- Pull strategies: direct promotional efforts to consumers—rely on advertising and sales promotions- Push strategies: relies more on personal selling, direct promotional efforts to channel—rely on trade allowances- Coupons: apart of sales promotions, active purchase interest and influence short-term salesChapter 13:- Social media: people interacting and connecting with others via online software or alternative electronic access technologies- Sociogram: networks in graphical form- The set of actors and relational ties- Ties can be symmetric, directional, and vary in strength- Dimensions of a social network: some members are more connected and influential than others—goal is to locate highly influential members- Centrality: number of connections each actor has with the otherso Central: many linkso Peripheral: fewer links- Aspect of a social network: interconnections among customers- Structural equivalence—two customers are equivalent if their purchase patterns are similar- Social media use: are web-based means of interacting with others that require thought and labor (not “free”), usage is growing—engaging in all social media is not desirable- Social media vs. traditional advertising:- Social: media can optimize reach, allows for a wider audience when people use word of mouth or promote the brand the like themselves- Traditional: can be useful, but less likely to reach a broad audience—only people that are directed with the advertising - SEO: search engine optimization—consumers search when they don’t have a preferred brand, keywords depend on customer knowledge Chapter 14:- Customer purchase expectations: - Experience purchases: expectations might not be fully formed; the experience shapes evaluation and expectations- Most trusted source of expectations: - Self: (most trusted) consumers trust their own experience; direct or indirect - Kinds of expectations:- Ideal levels of quality- Predicted levels of quality- Adequate levels of qualityo Zone of tolerance exists between the adequate and predicted levels of quality- Quality and satisfaction—quality and customer satisfaction can be precisely measured for goods, but not as easily for services- Individualist cultures—satisfaction is heavily influenced by quality of reliability and service provider responsiveness- Collectivistic cultures—satisfaction is heavily influence by the relational aspects of front-line employees- Effects of a satisfied customers: customer satisfaction is 1st step in customer relationship marketing (CRM)- Can influence others to buy if satisfied, the second most trusted source are friends- Primary means to regain a dissatisfied customer is through empowered frontline employees- RFM: recency, frequency, and monetary value- Used to “score” customers in order to determine the most desirable customers- CLV: customer lifetime value—is a means of translating marketing efforts in financial results; assess customers in terms of their worth in the company- CLV allows firms to match customer benefits to revenues to ensure each customer relationship remains profitable Chapter 15:- Steps in marketing research process: marketing decisions should be fact based; process used to gather the facts needed to make marketing decisions- Define marketing and marketing research problem- Answer questions with secondary data- Design primary data collection- Sample (i.e. random sample)- Technique: o Qualitative: interviews and focus groupso Quantitative: surveys and experiments- Instruments (i.e. questionnaire)- Mode of administration (i.e. web survey and mail)- Data collection- Data analysis-