Marketing The activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large Value Customer s perception of all the benefits of a product or service weighed against costs of acquiring and consuming it Benefits can be functional performance experiential feeling senses or psychological status self esteem Integrated Marketing Communications A concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines The Promotional Mix Advertising Direct Marketing Internet Marketing Sales Promotion Public Relations Personal Selling The basic tools used to accomplish communication objectives Advertising Paid non personal communication about an organization product service or idea with identified sponsor needs some objective no immediate feedback from audience Advantages o Cost effective way to reach large audiences o Ability to create images and symbolic appeals o Create and maintain brand equity o Strike responsive chord with audience o Opportunity to leverage popular ad campaigns into IMC programs o Ability to control the message Classifications o National brand advertising o Retail Local increase store traffic o Primary Selective Demand o B2B Business to business o Professional doctors attorneys o Trade channel members Sales Promotion Marketing activities that provide extra value or incentives to the sales force retailers and ultimate consumer Publicity A news story editorial or announcement to a mass audience not directly paid for or run under an identified sponsor is sometimes unfavorable high credibility and low cost and not always under company control Public Relations Management function evaluates public attitudes identifies items of public interest and executes a program of action to earn public understanding and acceptance Establish and maintain a positive image of the company among various publics Personal Selling Person to person communication where a seller attempts to assist and or persuade prospective buyers to make a purchase or act on an idea Market opportunities areas where the company believes customer needs and opportunities are not being satisfied and where it can compete effectively Market Positioning The process of fitting the product or service to one or more segments of the broad market in such a way as to set it apart from the competition Market Segmentation Dividing a market into distinct groups with common needs who respond similarly to a marketing situation Positioning Strategies Attributes and Benefits Price Quality Use Application Product Class Product Users Competitors Cultural Symbols Brand identity name logo symbols design packaging and image associations held by consumers Brand equity intangible asset of added value or goodwill that results from favorable image of company name brand name or trademark Push strategy goal is to persuade the trade to stock merchandise and promote a company s products by aggressively selling and promoting to resellers Pull strategy goal is to create demand among end users which will in turn encourage retailers to carry a brand In house agency set up owned and operated by a firm specifically advertises for it s own company Reasons for using an ad agency Highly skilled specialists Objective viewpoint of the market Broad range of experience Specialization in a particular industry Full Service agencies Full range of marketing communication and promotion services Creative boutique Only provides the creatives visuals Commissions from Media An agency is compensated based on their time or space it purchases for its clients and is traditionally 15 Consumer Behavior The process and activities people engage in when searching for selecting purchasing using evaluating and disposing of products and services Maslow s Hierarchy of Needs one of the most basic and popular approaches to understanding consumer motivation Perception the process by which an individual receives selects organizes and interprets information to create a meaningful picture of the world Selective comprehension we interpret information based on our attitudes beliefs motives and experiences Evaluative Criteria Objective Price Warranty Service Subjective Style Appearance Image Formal integration rules compare alternatives on specific attributes Informal integration rules Heuristics Simplified decision rules price coupon Cognitive Dissonance feeling of psychological tension or post purchase doubt a consumer may experience Advertising tries to reduce through the use of return policies warranties trials samples surveys etc Behavioral learning theory emphasizes role of external stimuli in causing behavior while minimizing the importance of internal Classical Conditioning assumes that learning is an associative process The relationship between an unconditioned stimulus and a conditioned stimulus develops through repetition and contiguity Operant Instrumental Conditioning Learning occurs as a result of the outcomes or consequences associated with a particular response Reinforcement Social class relatively homogenous divisions in a society into which people sharing similar lifestyles values norms interests behaviors can be grouped AIDA Model Attention Interest Desire Action Personal Selling process Think Cognitive feel Affective do Conative Elaboration Likelihood Model ELM focuses on the way consumers respond to persuasive messages based on the amount and nature of elaboration or processing Central route ability and motivation to process a message is high and close attention is paid to message content Peripheral route ability and motivation to process a message is low receiver focuses more on peripheral cues than on message content passive celebrity endorsers Persuasion matrix helps marketers see how each controllable element interacts with the consumers response process Source credibility extent to which the source is perceived as having knowledge skill or experience relevant to the communication topic and can be trusted to give an unbiased opinion Expertise knowledgable will be more persuasive Trustworthiness honest ethical believable Source attractiveness similarity familiarity likability can lead to persuasion through identification Source power a source has power when he or she can actually administer rewards and punishment to the receiver personal selling