The superbowl and marketing

What is advertising?

-Promotion

-Advertising is one form of communication

-Paid -Identifiable source 

-Delivered through media

-Persuade receiver to act 

-Cost relative to other opportunities

-Interest in advertisements

-Positive brand association

-PR 

Benefits for the television network

-Advertising revenue

-Free ad spots 

- PR/Branding

-Post-super bowl show

-Future advertising opportunities

-Cross-promotion 

-Negative PR

-Wasted resources 

-No longer part of overall marketing strategy, yet expected to be there 

-Social chit chat/teasers

-Ads go long

-Branding

-Contests/ interactive voting

-Magic of magic

-Sex with a twist 

-The key is intended use 

-Are used to manufacture other products

-Became part of another product

-Aid the normal operations of an organizations

-Are acquired for resale without change in form 

-Provides a common industry classification system

-Valuable tool for marketers in analyzing, segmenting, and targeting markets. 

-Data can be used to determine:

Number, size, and geographic dispersion of firms

Market potential/ market share estimates

Sales forecasts 

B2B markets 

1. Manufacturers or producers

2. Reseller (wholesaler)

3. Institutions 

4. Governments 

-To make products they sell to others, manufacturers and producers buy raw materials, components, and parts that allow them to manufacture their own goods. 

-Buy raw materials, components, or parts

-Manufacture their own goods 

Resellers are marketing intermediaries that resell manufactured products without significantly altering their form. 

-Manufacturer--> Reseller--> Retailer

-US government spends $2.1 trillion procuring goods

-State and local governments also make significant purchases

-Firms specialize in selling to government 

1. Need recognition

2. Product specification

3. RFP process 

4. Proposal analysis and supplier selection

5. Order specification

6. Vendor analysis (vendor/performance assessment using metrics

-Can be generated internally or externally

-Sources for recognizing new needs:

-Suppliers -salespeople -competitors 

-Used by suppliers to develop proposals 

-can be done collaboratively with suppliers 

Proposal analysis, vendor negotiation and selection

-Often several vendors are negotiating against each other

-Considerations other than price play a role in final selection 

-Firms place the order

-The exact detials of the purchase are specified

-All terms are detailed including payment 

-Loyal customers are more profitable than price-sensitive customers with little brand loyalty 

-Long-term relationships build competitive advantage. 

-Buying situation

-Organization culture

-The buying center 

1.initiator

2.influencer

3.decider

4.gatekeeper

5.user

6.buyer 

Initiator

Democratic- majority rules

Autocratic- one person rules

Consultative- one leader but listens to people, then decides

Consensus- All ten people must agree on purchase 

New buy

Straight rebuy

Modified rebuy 

-purchasing for the first time

-Likely to be quite involved because the buyer or buying organization does not have any experience iwth the item

-The buying center will probably use all six steps in the buying process 

-Purchasing a similar product but changing specifications such as desired price, quality level, customer service level, options, and so forth 

-Current vendors have an advantage

-Buying additional units or products that have been previously purchased 

-Most B2B purchases fall into this category

EXAMPLE: calendars 

-Licensing or distribution agreements

-Joint ventures

-Research and development consortia

-Paternerships

-Alliances suceed with commitment and trust

-Stickiness: A measure of a web site's effectiveness, calculated by multiplying the frequency of visits times the duration of a visit times the # of pages viewed during each visit. 

Frequency x Duration x Site research