Program Rating Share of Audience Profit Revenue Profits Markup MAR3023 Exam 4 Study Guide EQUATIONS TO MEMORIZE FOR EXAM Q Score Consumers level of familiarity with a name The number of respondents who indicate that the person program or character is a of households tuned into the show Total US Households favorite of households tuned into the show US Household using TV Total Circulation primary circulation times x pass along readership Total Revenue Total Cost Price of what you are selling x How many you ve sold Price x Quantity Sold Total Costs Cost of a good Selling price Breakeven Point Fixed Cost Per Unit Contribution to Fixed Costs Fixed Costs Price Variable Costs Average Total Cost Average Variable Cost Average Fixed Costs Total Costs Average Fixed Costs Average Variable Costs x Quantity produced Markup as of Cost Markup Cost Markup as of Selling Price Markup Selling Price Integrated Marketing Communications Know what a promotion is and understand what the purposes of promotion are Promotion encouragement of the progress growth or acceptance of something furtherance o In marketing promotion is one of the four elements of the marketing mix o The communication link between sellers and buyers for the purpose of influencing informing or persuading a potential buyer s purchasing decision Dave Kurtz Companies use promotion for two purposes o 1 Make customers aware of products o 2 Means by which customers draw an affinity to the products Brand Strength o Do you remember your favorite ad Professor s favorite ad Terry Tate office linebacker ad from Reebok Top advertisers include Proctor and Gamble Co AT T General Motor Corp Comcast Corp Verizon L Oreal Chrysler Time Warner Johnson Johnson Know the elements of the promotion mix APPS and be able to identify examples of each Elements of the Promotion Mix Advertising personal selling public relations sales promotions o Advertising a paid non personal communication about organization and its Advertising has become dominant over last 30 years Internet is growing the fastest TV has an upward trend products transmitted to a target audience through mass media Ex magazines newspapers television websites city buses o Personal Selling a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Ex direct mail e mail o Public Relations a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders Ex a campaign to encourage businesses to donate computers to schools donating to hospitals donating to a cause o Sales Promotion an active or material that acts as a direct inducement offering added value or incentive for the product to resellers salespeople or customers Ex free samples games rebates sweepstakes contests premiums and coupons Know what integrated marketing communications IMC are and why companies use them Integrated Marketing Communications coordination of promotion and marketing efforts for maximum impact Foundation of promotions o o Ex Taco Bell offering free tacos every time a player steals a base in the 2007 MLB World Series Know the difference between the traditional promotion mix and IMC Traditional Promotion Mix IMC Integrated Marketing Communications Sort of connected but mainly not All marketing done in same way s to be the Ineffective most effective Know the goals of IMC and an example Goals of IMC o Consistent message to customers o Coordinate manage promotional efforts o Synchronization of promotional elements o Use more precisely targeted promotional tools Ex Coca Cola Zero Tab pink can o Targeting guys with diet drinks but not using the word diet making the can black and sponsoring events such as NASCAR and Football Games Understand the difference between a push and a pull promotion strategy and be able to identify an example of each from a scenario Push Policy promoting a product only to the next institution down the marketing channel o The producer promotes the product to the wholesaler the wholesalers promote it to retailers and the retailers promote it to consumers Producer wholesalers retailer consumer o Pushing product down the distribution channel not really focused on the end o Ex trade shows and personal selling o Push Money spiffs an extra commission paid to retail employees to push consumer products Promoting to employees Pull Policy promoting a product directly to consumers to develop strong demand that pulls products through the marketing channel o Ex Children s toys Children scream at the stores for their mothers to buy the toys Ford Australia only produces a car when one is ordered by a customer Dell only produced computers when they are ordered by a customer Customers asking a retailer wholesaler for the product Understand the communication process and that messages are sent through channels and know what channels are Communication Process the process that describes the exchange of information between two or more people o Messages are sent through channels The channels include letters email and in person Know the elements of the communication process Source sender encoding information message development media decoding feedback source sender Know what each of these are parts of each and what noise is Noise clutter because there are so many advertisements we must create humor to make people enjoy them and not just tune them out o Anything that interferes with or distorts the message o Ex Geico The Source Sender the person organization that has information to share o Ex company salesperson celebrity have Q scores Lebron s Q score o Q Score Q quality considers two factors 1 Consumers level of familiarity with a name who have heard of 2 The number of respondents who indicate that a person program or him her character is a favorite The score is calculated by dividing the two numbers Ex if 50 are familiar and 10 list as a favorite then the score is 20 The average is 18 Some argue that Q is better than Nielsen discussed later on The score changes over time Ex Peyton Manning has a high Q score Other Q scores TVQ rates broadcast television programs Cable Q rates cable television programs Performer Q rates living celebrities Dead Q rates the current popularity of deceased celebrities Sports Q rates sports figures Cartoon Q rates cartoon characters video games toys and similar Brand Attachment Q rates brand and company names Kids Product Q rates children s responses to brand and
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