68 Cards in this Set
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5 Tools of Promotional Mix. (c.15)
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Advertising
Public Relations
Personal Selling
Sales Promotional
Social Media
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Promotional Strategy (c.15)
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A plan for the optimal use of elements of promotion.
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Two Major Categories of Communication. (c.15)
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Interpersonal - Direct face to face.
Mass - T.V., email, magazine
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Communication Process (c.15)
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Sender and Encoding - encoding is conversion of sender's thoughts into a message
Message Channel - occurs over a channel (radio, TV, etc). Reception occurs after the receiver gets the message
Noise - anything that interferes with, distorts, or slows down the transmission of info
Receiv…
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Communication Process (c.15)
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Process by which meanings are exchanged or shared through a common set of symbols.
Senders : Remind / Inform / Persuade
As Receivers: Develop new message / Adapt message to changes in target market / Spot new communication opportunities
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Goals & Tasks of Promotion (RIP) (c.15)
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Reminding (maturity stage of PLC)
Informing (intro stage of PLC)
Persuading (growth maturity of PLC)
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Goals and Tasks of promotion and where should they be used in the PLC? (c.15)
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1) Informing - Intro, Early Growth
2) Reminding - Maturity
3) Persuading - All
4) Connecting - Growth Maturity
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PLC - Product Life Cycle (c.15)
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Development - create product
Intro - introduce to market
Growth - maximize early mkt share
Maturity - slowdown, profits already maxed.
Decline - Saturation, sales and profits drop
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AIDA (c.15)
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Attention
Interest
Desire
Action
Outline the process for achieving promotional goals,
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AIDI (c.15)
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Attention - cognitive (thinking)
Interest - Affective (feeling)
Desire - Conative (doing)
Action - Conative )doing)
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Promotional Mix and AIDA (c.15)
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Advertising: Attention, Interest
Public Relations: Attention,Interest
Sales Promotion: Desire
Personal Selling: Interest, Desire, Action
Social Media: Attention, Interest,
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Integrated Marketing Communications (IMC) (c.15)
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Coordination of all promotional activities to produce a unified, customer-focused promotional messages
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Factors Affecting the Promotional Mix (c.15)
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Nature of the product
Stage in the product life cycle
Target market characteristics
Type of buying decision
Available funds
Push and pull strategies
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Push Strategy and Pull Strategy (c.15)
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PUSH - Move products through the channel by convincing channel members to offer them
PULL - Move products through the channel by building consumers demand and convince retailers to respond
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Target Market Characteristics (c.15)
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Advertising - Widely scattered market
Sales Promotion - Highly informed buyers
Less personal selling - Brand-loyal repeat purchases.
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Major types of Advertising (c.16)
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1. Institutional- enhances a company image rather than promote a particular product
2. Product- touts the benefits of a particular product
1. Pioneering
2. Competitive
3. Comparitive
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Identity Product Benefit (c.16)
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Sell the benefits of the product, not the attributes.
A attribute is a feature, a benefit is what a consumer will receive or achieve by using the product.
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Common Advertising Appeals(c.16)
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Profit - save $, make $, help from loosing $.
Health -appeals to those body conscious.
Fear- social embarrassment
Admiration - celebrity status
Convenience- fast food, microwave
Fun and pleasure- vacation, beer, amusement parks
Vanity and Egotism - expensive, luxury
Environmental…
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Common Executional Styles for Advertising (C.16)
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Slice-of-Life - doing normal things
Lifestyle - fits into your current life
Spokesperson/Testimonial - celeb used
Fantasy
Humorous
Real/Animated Product Symbols - Energizer bunny
Mood or Image - Builds a mood/image around image
Demonstration
Musical - uses music to advertize prod…
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Cooperative Advertising (c.16)
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The manufacturer and the retailer split the costs of advertising the manufacturer's brand.
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discuss the role of public relations in the promotional mix. (c.16)
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PR is a vital part of a firms promotional mix. A company fosters good publicity to enhance its image and promote its products. Popular public relations tools include new-product publicity, product placement, consumer education, sponsorship, and company Web sites. An equally important aspe…
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Sales Promotion: Consumer Promotion (c.16)
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-Targets the ultimate consumer market.
-Frequent Buyer Program
-Coupons
-Free Samples
-Eye-Catching display in stores
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Sales/Consumer Promotion tools (c.16)
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Samples- offer a trial amount of a product
Coupons- are certificates that give buyers a saving when they purchase specified products
Cash refunds- are similar to coupons except that the price reduction occurs after the purchase
Price packs- offer consumers savings off the regular price…
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Loyalty Marketing Programs (c.16)
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Build long term relationships
EX: Frequent Flyer discounts
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Trade Sales Promotion (c. 16)
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Trade Allowance
Push $
Training
Free Merch
Store Demos
Conventions/Trade Shows
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Generating Leads (c.17)
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1. Generate Leads
2. Qualify Leads
3. Probe Customer Needs
4. Develop Solutions
5. Handle Objectives
6. Close the Sale
7. Follow up
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Generating Leads (c.17)
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1. Advertising
2. Referrals
3. Networking
4. Cold Calling
5. Direct Mail
6. Social Media
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Traits of a Good Salesperson (c.17)
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Self Motivator
Okay with being told no
Sense of Adventure
Quick on your feet
Handle Change
Identify Customer Relationships
Retaining loyal relations
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Qualifying Leads (c.17)
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Recognizing lead
Buying power
Receptivity & Accessibility
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Probing Customer Needs (c.17)
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Knowledge of the Product of Service
Salesperson should know about the Customer's and their needs
Salesperson must know about the competitor company and their products.
Salesperson must actively research the industry.
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Developing and Proposing Solutions (c.17)
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Coming up with solutions to the customer's problems and presenting them.
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Handling Objections (c.17)
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Salesperson seeks out, clarifies, and overcomes customer objections to buying
seek out hidden objections
ask buyer to clarify objections
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Closing the Sale (c.17)
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Once the customer says they will buy, CHANGE THE SUBJECT.
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Importance of Price (c.19)
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Seller - Price is revenue
Consumer - Price is cost
Price allocates resources in a free-market economy.
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What is Price? (c.19)
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That which is given up in an exchange to acquire a good or service. Point where seller and buyer agree.
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Importance of price to marketing managers (c.19)
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revenue - the price charged to customers multiplied by the number of units sold
profit - revenue minus expenses
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High price means...(c.19)
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Limited supply & High demand
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Pricing Objectives (c.19)
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Profit maximization: generate as much revenue as possible in relation to cost.
Satisfactory Profit: produce profits to satisfy management and stockholders
Target return on investment - Net profit after tax / Total Assets = Return on Investment ROI
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Profit Maximization (c.19)
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1)If MR is greater than MC, firm should increase output.
2)If MC is greater than MR, firm should decrease output.
3)At the profit-maximizing level of output, MC and MR are exactly equal.
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Satisfactory Profits (c.19)
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Strive for profits that are consistent with the industry
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Target Return of Investment (c.19)
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Net profit after tax DIVIDED BY Total assets = ROI
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Sales Oriented Pricing Objective (c.19)
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Market Share: a companies product sales as a percentage of total sales
Sales Maximization: ignores profit, competition and marketing environment so long as sales are rising
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Status-Quo Pricing Objectives (c.19)
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Focus on maintaining existing prices, and matching/adjusting relative to competitor's prices
Low-risk/low gain
Reactive instead of proactive
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Demand Determinant of Price (c.19)
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Supply & Demand
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Elasticity of Demand (c.19)
Elastic is sensitive to $ change & vice versa
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Perfectly elastic = ∞
Elastic > 1
Unit elasticity = 1
Inelastic is < 1
Perfectly inelastic = 0
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Dynamic Pricing (c.19)
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1. Product or service expires at a given point in time.
2. Capacity if fixed, only increased at a high cost.
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Elasticity of Demand (c.19)
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ED - Consumers buy more or less of a product when price changes.
ID - Increase or decrease in price will not significantly affect demand
UE - Increase in sales exactly offsets a decrease in prices, so total revenue remains the same.
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Factors that Affect the Elasticity of Demand (c.19)
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Availability of subs
Price relative to purchasing power
Product durability
A product's other uses
Rate of inflation
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Yield Management Systems (c.19)
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1. Stimulate demand when demand is low.
2. Maximize profits when demand is high.
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Markup Pricing (c.19)
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Keystoning - Marking up a price. "I get for $5 & you sell for $10."
Retail price = Cost / 1- desired return on sale.
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Markup Percent (MU%) (c.19)
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MU% = Price-Cost/Price
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Tactics for Fine Tuning Price (c.20)
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1. Quantity - More you buy, more you save.
2. Cash - Discount on bill if paid with cash quickly.
3. Functional -Do this for me and I will discount.
4. Seasonal - $ dis for merch bought out of season.
5. Promotional - dealer gets paid to promote manu.
5. Rebates - $ refund given durin…
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Georgraphic Pricing (c.20)
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Sellers may use different geographic pricing tactics to moderate the impact of freight costs on distant customers.
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Methods of geographic pricing? (c.20)
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FOB origin pricing (free on board): buyer takes on freight costs
Uniform delivery pricing: same price for all (stamps)
Zone pricing (US divided in zones, flat rate charged to customers in given zones)
Freight absorption pricing: seller pays for all or part of freight charges (incentive…
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Single Price Tactic (c.20)
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Same for everybody
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Flexible Pricing (c.20)
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Different customers pay different prices
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Trade-Ins (c.20)
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Exchanging one item for a credit towards another. Used often at car dealerships.
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Professional Services Pricing (c.20)
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Used by professional with experience, training or certification.
Ie. Lawyers, physicians etc.
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Price Lining (c.20)
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Several line items at specific price points
"Sell Up to Sell Down"
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Leader Pricing (c.20)
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Sell a product at near or below cost.
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Bait Pricing (c.20)
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Lure customers through false or misleading price advertising.
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Price Bundling (c.20)
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Marketing two or more products in a single package for a special price.
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Two-Part Pricing (c.20)
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Two separate charges to consume a single good.
This is a pricing scheme.
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Consumer Penalties (c.20)
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Business impose consumer penalties if..
1. An irrevocable loss of revenue is suffered.
2. Additional transaction costs are incurred.
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Common Consumer Penalties (c.20)
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Airlines
Banks
Car Loans
Hotels
Cruises
Universities
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Inflation (c.20)
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High Inflation causes
1. Cost-Oriented Tactics
2. Demand-Oriented Tactics
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Cost Oriented Tactics (inflation) (c.20)
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-delayed quotation pricing -escalator pricing
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Supplier Strategies During Recession (c.20)
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Renegotiating contracts
Offering help
Keeping the pressure on
Pairing down suppliers
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MARK 3321: Test 1