• PR- communication used to create and maintain favorable relations between an org and its stakeholderso Segway, wonderbra, rockport• Publicity- communication about the org and/ or its products transmitted through mass media at no charge• PR vs Publicityo Publicity is short termo “ is out of control of the firmo PR is designed to be positiveo Publicity is more powerful• Personal sellingo Paid personal communication that informs customers and persuades them to buy products in an exchange situation• Types of sales peopleo Order getters- sell to new customerso Order takers- seek repeat saleso Support personnel- facilitate selling but aren’t directly involved• Price- the value paid for a product in a marketing exchange (tuition, rent, tips, fines)• Sales oriented- set prices low to maximize sales (firms new to market)• Profit oriented- pricing strategy focused on profitso Target profit pricing- have at least a 10% profit margin• Reference price- price stored in memory that helps to evaluate the actual priceo Internal- develops in buyer’s mind through experience with producto External- comparison price provided by others• Price framing- anchoring price for consumers (“you save”, “competitor’s price”)• Profit= Total revenue (price x quantity sold) – costs• Elastic demand- a change in price causes an opposite change in quantity demanded• Electricity = inelastic, soft drinks = very elastic (bc gum/energy drinks)• Determinants of elasticityo Availability of substituteso Percentage of incomeo Necessityo Timeo Brand loyalty• Skimming- useful with inelastic demand (consulting, health care)• Penetration- useful with elastic demand, long term focus (fast food)• Neutral- market driven, status quo strategies (gas, airlines)• Break even- costs equal revenue (fixed costs/ (price- variable costs))• Markup- difference bw cost of a good and its selling priceo Grocery- 12%o Gas 5-15 centsNext powerpoint• Markup= (selling price- cost)/ cost x 100• Profit margin = (selling price- cost)/ selling price x 100• Pricing methodso For new products Skimming- setting high price at first then lower it (encourages competition) Penetration- set low price to drive market share up (discourages competition) Neutral- market driven, status quo strategieso As promotion Price/ loss leader- selling products at or below cost to stimulate sales of other profitable products Special event- special prices linked to an event (black Friday)o Product line Captive pricing- basic product is priced low, but accessories are priced high (printers and ink) Bait pricing- Illegal, when a product is promised at a low price but isn’t in stock or a less attractive product is sold Price lining- pricing products at several levels, bc prices are relatively inelastic within different rangeso Psychological pricing Odd- even- ending prices in odd or non round numbers ( when .95 its normal price, when .50 its on sale) Reference- displaying a moderately priced product next to an expensive one (similar to framing) EDLP- setting low prices on a consistent basis to avoid deep discounting on a few items (Wal-Mart) Customary- setting prices at an expected level Prestige- only sought after when they become expensive or hard to geto Online Variable pricing- retail websites offer different prices to different customers• Inelastic = necessities (groceries)• Elastic = luxuries (cars)• Perfectly inelastic = same demand regardless of price (water in Sahara)• Marketers identify unmet wants/needs and then:o Develop products to meet those needso Tell people about themo Price them where they maximize profito Get them to where consumers can find them• Segment the market, target profitable segments, position the product to appeal to the targetsSocial networks, media and international biz• Social influences- the forces others exert on your behavior• Consumer socialization- process of learning to consume• Some nodes are “hubs”, they have a significantly larger # of links• Weak links can have a more powerful impact on a network bc they bring new info to a group faster than if the info only passed thru strong links• Rules of life in a networko We shape our network Homophily- tendency to assoc with ppl who resemble uso Our network shapes uso Our friends affect uso Our friends’ friends affect us Hyperdyadic spread- tendency of effects to spread from person to person beyond an individual’s direct social tieso The network has a life of its own• Network theory can explain how economic markets function• FB is banned in china therefore Ozone is bigger than FB• comScore indicates Russia has most engaged social media• Vkontakte.ru is #1 social network• Sociolinguistics- society affecting language usageElectronic marketing• Viral marketing- technique that uses pre existing social networks to produce increases in brand awareness or to other marketing objectives (like a virus)• Social media influence and engagement strongly correlates with your “brand”• Iceberg effect- brands that ignore the iceberg below the water and only focus on social account creation set themselves up for a titanic failure/ if a person likes a store they can easily spread the word on a social media• Quantifies influence klout, kred and peerindex o Klout Score from 1- 100 average is 40, 50+ is highly engaging Perks program lets brands give free trials to influencers• Organic search- listings on search engine results pages that appear due to the relevance to the search items• Paid or sponsored search- listings that appear due to purchasing that spaceSales promotions• Freedom to run your own biz• Upward mobility• Most equitable profession• Recession proof occupation• Personal selling- use of personal communication skills to uncover needs or wants and provide solutions• Selling is building biz relationshipso Suspecto Prospecto Customero Cliento Advocate• Approach- The manner in which a salesperson contacts a potential customero Referral (someone referred me to you)o Cold canvassing (cold calling)o Repeat contact• Prescriptiono Address specific needso Describe specific features that provide specific benefitso Prove ito Confirm understanding• Overcoming objectionso Anticipate and counter them before prospect raises themo Handle them by Clarify Respond Confirm• Closing the saleo Gaining commitment Stage in personal
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