Exam 1 Study Guide The Marketing Concept The organization determines the needs of the target market and satisfies those needs at a profit If no profit doesn t matter The Marketing Mix 1 Product the bundle of attributes the consumer receives in a transaction a can be a service or a good 2 Price What consumer must give up to receive the product a Ex money time 3 Place All issues related to the system of distribution 4 Promotion All methods used to inform persuade the target market about products that are available Need of balance between product development promotion ex Best buy created interest in a camera but they didn t have enough supply so it actually increased Amazon s sales Product price place comes first and then promotion Promotions Mix A model of communication alternatives Different companies use differing levels of each part of mix PAID Control FREE Credibility MEDIA PERSONAL Advertising Sales Publicity Social Media Advertising paid nonpersonal communication from a sponsor that informs persuades and reminds control of message delivery of message timing of delivery low cost to reach each person High absolute cost low credibility effectiveness has a delayed response Public Relations Develops understanding and goodwill Publicity media time and space that the organization does not pay for Credible Personal Selling Sales people are in direct communication with potential customers Decision Sequence Model Process used in advertising as a way to guide the creative process toward effective strategy and execution 1 Situation Analysis Research based analysis of internal external factors of an organization 2 Objectives Positioning a Objectives goals the company wants to achieve b Positioning the way the consumer perceives the brand c Brand intangible attributes attached to the product product lipstick brand covergirl d Brand Equity Difference in perceived value between product brand common in fashion 3 Strategies Actions that achieve the objectives creative media sales promotion 4 Budget Setting used to implement the strategy Implementation putting strategies into action 5 6 Evaluation assesses the success of the campaign did campaign achieve the objectives Levels of Involvement the importance of the product to the consumer 1 No Involvement no interest no purchase 2 Low Involvement Product purchased but no brand evaluation 3 High Involvement Purchase product after careful brand evaluations Hierarchy of Effects Series of stages a consumer passes from unawareness to brand loyalty High Involvement Hierarchy ex car Awareness knowledge that the product exists Attitudes opinions about the product can be positive negative or neutral Behavior Action related to product test driving buying etc Low Involvement Hierarchy ex popcorn Trial Behavior action related to the product without the formation of attitude Awareness Attitude Repeat Behavior subsequent action based on positive attitude Schramm s Model of ONE WAY Communication Source encodes signal decodes destination Potential Problems Encoding source perceives problem incorrectly ex Taco Bell not a diet place Signal Source understands problem but sends wrong signal that gives the wrong message Decoding Receiver misunderstands misinterprets message Destination Receiver understands message but forgets or ignores it Ad Agency Organization 1 Account Servicing Liaison between agency and client make sure everything is getting done 2 Research Involved in entire process situation analysis concept testing evaluation 3 Strategic Planning Develops creative direction of campaign based on research 4 Creative makes verbal and visual message 5 Media delivery of message strive for most efficient use of money 6 Production Translates the copy and layout into finished form 7 Traffic Makes sure each department is meeting deadlines Types of Agencies Full Service research creative media PR sales promotion social media Media Buying Service specialists often purchase in bulk serves on a per unit basis Creative Boutique Small speciality agency sometimes just concept development In House agency operated within corporation some functions outsourced more control over work cheaper less creative Consumer Segmentation purpose is to achieve the greatest amount of sales with small expense Reasons for Segmentation inefficient to market to everyone with same product the company cannot develop separate products for each consumer Factors leading to segmentation Introduction of marketing concept diversity of consumer needs higher standard of living increasing competition demand for new products Aspects of Segmentation Classifying consumers into potentially profitable groups developing strategies that will appeal to those groups Consumer Classification 1 Enduring Variables variables that stay with you over products and any fixed time useful for describing purchase behavior for a variety of products a Demographics age gender race income education level b Geographics where you live and the consumption patterns brand preference c psychographics lifestyle attitudes interests opinions 2 Dynamic Variables specific to an individual s relationship with a product Useful for developing messaging and positioning strategies a Heavy vs Light Users 80 20 rule 80 of sales from 20 of customers b Early vs Late Adopters Different people try product for first time at a different point c End Use Consumers purchase the same product for different uses d Brand loyal vs Brand Switching brand loyal are most sought after customers e Benefit segmentation consumers seek different benefits from the same product Segmentation Strategies Undifferentiated one product all consumers broad media message strategy Partially Differentiated several products distinct consumer segments specific media messages Wholly Differentiated Entire user population multiple products specific media messages Concentrated one primary product one consumer segment specific media messages Specific Strategies Rifle Message specific statements specific media cable TV direct mail magazines Rifle Media Deliver message to specific audiences Broad Strategies Shotgun Message broad statements Shotgun Media Deliver message to broad audiences Product Life Cycle The changes a product goes through until it s pulled off the market Stages are not equal in time length of cycle is not the same for every product 1 Introduction 2 Growth a Price is high especially if a new product category b Advertising Create awareness establish positioning c Sales
View Full Document
Unlocking...