PR communication used to create and maintain favorable relations between Publicity communication about the org and or its products transmitted an org and its stakeholders o Segway wonderbra rockport through mass media at no charge PR vs Publicity o Publicity is short term o is out of control of the firm o PR is designed to be positive o Publicity is more powerful Personal selling o Paid personal communication that informs customers and persuades them to buy products in an exchange situation Types of sales people o Order getters sell to new customers o Order takers seek repeat sales o 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 profits o Target profit pricing have at least a 10 profit margin Reference price price stored in memory that helps to evaluate the actual o Internal develops in buyer s mind through experience with product o External comparison price provided by others Price framing anchoring price for consumers you save competitor s Profit Total revenue price x quantity sold costs Elastic demand a change in price causes an opposite change in quantity Electricity inelastic soft drinks very elastic bc gum energy drinks Determinants of elasticity price price demanded o Availability of substitutes o Percentage of income o Necessity o Time o 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 price o Grocery 12 o Gas 5 15 cents Next powerpoint Markup selling price cost cost x 100 Profit margin selling price cost selling price x 100 Pricing methods o 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 strategies o As promotion o Product line 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 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 ranges o 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 get o 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 needs o Tell people about them o Price them where they maximize profit o Get them to where consumers can find them Segment the market target profitable segments position the product to appeal to the targets Social networks media and international biz Social influences the forces others exert on your behavior Consumer socialization process of learning to consume Weak links can have a more powerful impact on a network bc they bring new Some nodes are hubs they have a significantly larger of links info to a group faster than if the info only passed thru strong links Rules of life in a network o We shape our network o Our network shapes us o Our friends affect us o Our friends friends affect us Homophily tendency to assoc with ppl who resemble us Hyperdyadic spread tendency of effects to spread from person to person beyond an individual s direct social ties o The network has a life of its own FB is banned in china therefore Ozone is bigger than FB comScore indicates Russia has most engaged social media Network theory can explain how economic markets function Vkontakte ru is 1 social network Sociolinguistics society affecting language usage Electronic 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 space Sales 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 relationships o Suspect o Prospect o Customer o Client o Advocate Approach The manner in which a salesperson contacts a potential customer o Referral someone referred me to you o Cold canvassing cold calling o Repeat contact Prescription o Address specific needs o Describe specific features that provide specific benefits o Prove it o Confirm understanding Overcoming objections o Anticipate and counter them before prospect raises them o Handle them by Clarify Respond Confirm Closing the sale o Gaining commitment Stage in personal selling process when salesperson asks prospect for a commitment leading to buying the product o Closing tactics
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