Marketing 301 Final Exam Study Guide NO QUESTIONS ON Figure 12 2 Push vs Pull Strategy p 364 in 11th p 384 in 10th Pp 364 365 380 382 11th ed Pp 398 402 10th ed Fig 13 1 Major Steps in Sales Force Management p 395 or 416 Training Compensating Supervising Salespeople and associated tables and figures Pp 398 404 in 11th ed 421 425 in 10th ed Public Policy Issues in Direct Marketing Pp 443 446 in 11th 471 Ch 12 Ch 13 Ch 14 474 in 10th Ch 9 Pp 264 270 in 11th or Pp 277 278 in 10th though you should understand value based pricing and marketing skimming as discussed in class Price Changes Pp 280 285 in 11th or 297 300 in 10th Ch 10 Pp 309 to end of chapter 11th Pp 325 to end of chapter 10th I PROMOTION ADVERTISING a What are promotions i Promotions are all about how you communicate your message to your customers ii Sales promotions designed to be short term iii Ex Papa John s coupon iv Called bounce back coupon used as example of sales promotion v Long term relationship building b Promotion Mix i The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships integrated marketing communications goals c Promotion mix tools Goals of promo mix i Advertising ii Sales promotion 1 Any paid form of non personal presentation and promotion of ideas goods or services by and identified sponsor 2 Reaches huge audiences at a low cost 3 Expressive legitimizes products triggers quick sales 4 Could be impersonal and lack direct persuasiveness 1 Short term incentives to encourage the purchase or sale of a product or service 2 Coupons contests discounts premiums 3 4 Quick responses but short lived not as effective Incentives to purchase items iii Personal Selling 1 Personal presentation by the firm s sales force for the purpose of making sales and building customer relationships 2 Most effective tool at certain stages 3 Enables customer relationships 4 Buyers feel greater need to listen 5 Most expensive marketing tool iv Public Relations 1 Building good relations with the company s various publics by obtaining favorable publicity building up a good corporate image and handling or heading off unfavorable rumors stories and events 2 News stories features sponsorships and events v Direct Marketing 1 Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships 2 Less public immediate and customized interactive vi Goals 1 To deliver a clear consistent and compelling message d Integrated Marketing Communications i Carefully integrated and coordinating the company s many communications channels to deliver a clear consistent and compelling message about the organization and its products ii Emphasizes the company product s ability to solve customer problems iii Example Haagen Dazs their products iv Example Kit Kat chocolate bar way 1 Adopting a cause to save the honey bees 2 The bees pollinated a lot of the resources used to make 1 Conveys a message of break you can break the 2 How can they convey their message in a clear consistent i Any paid form of non personal presentation and promotion of ideas goods or services by and identified sponsor ii 40 of advertising money spent on traditional TV commercials iii 16 spent on internet ads iv Done in US on four major TV networks NBC ABC Fox CBS b Broadcasting narrowcasting i Companies do less broadcasting and more narrowcasting ii Narrowcasting commercials focus on target markets and channels that are more narrow compared to their product food products on Food Network rather than randomly on NBC 1 Really big part of the market going for smaller and smaller target segments big channels to smaller channels iii Broadcasting putting ad on major TV networks iv Madison and Vine II Advertising a What is advertising 1 2 Intersection of product placement Advertainment a Make people look forward to enjoying the ads i Ex Super Bowl commercials 3 Branded entertainment making the bran an inseparable part of some other form of entertainment a Products are becoming a part of TV and movie landscape products in television programming b Ex Coca Cola glasses in front of judges on American Idol Coca Cola Red Room for before and after performances Coke sponsored the show c Setting objectives i Overall objective is to help build customer relationships by communicating customer value ii A specific communication task to be accomplished with a specific target audience during a specific period of time Informative iii 1 Build primary demand telling about brand 2 Used heavily in new product category 3 Example Oxy Clean commercial iv Persuasive Important as competition increases 1 Build secondary demand preference 2 3 Build selective demand 4 Good for direct or indirect brand comparisons 5 Use carefully and not too often because comparative company may fire back 6 Ex AT T v Verizon with the can you hear me now campaign v Reminder 1 Increase frequency of purchase 2 Maintain customer relationships 3 Keeps customers thinking about the product 4 Good for mature products 5 Ex soda fast food seasonal 6 Ex ESPN beard commercial d Budget decisions i Advertising Budget the dollars and other resources allocated to a product or a company advertising program ii Affordable method faulty 1 Selling the promotion budget at the level management think the company can afford 2 Companies without a lot of resources challenging because what you can afford isn t always at the level of what you need 3 Used a lot by small businesses 4 5 Often results in under spending Ignores the effects of promotion on sales iii Percentage of sales faulty 1 Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price 2 Simple to use 3 Helps management think about relationships between promotion spending selling price and profit per unit 4 Views sales as the cause of promotion rather than result 5 Based on availability of funds rather than on opportunities 6 Difficult to plan for the long run 7 Can sometimes over under estimate what should be spent on advertising iv Competitive parity faulty 1 Setting the promotion budget to match competitors outlays 2 Set budgets based on industry average competition 3 Every company is different so this doesn t always prove to be effective v Objective and task method focus on if time permits 1 Developing the promotion budget by defining specific objectives determining the tasks that