Term
|
Definition
Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Sales promotion: Short-term incentives to encourage the purchase or saleof a product or service
Public relations: Building good relations with the company's various publics by obtaining favorable publicity, buiding up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Personal selling: Personal presentation by the firm's sales force for th purpose of making sales and building customer relationships
Direct Marketing: Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships |
|
|
Term
| The new marketing communications landscape |
|
Definition
1. marketers are shifting away from mass marketing, focused marketing programs designed to build closer relationships with customers in more narrowly defined micromarkets
2. Vast improvements in information technoloy are speeding the movement toward segmented marketing |
|
|
Term
|
Definition
| Sender ? (Encoding) Message ? (media) (noise) (decoding) Receiver ?(which leads back to) Feedback |
|
|
Term
| Model of Communication: Messages are more effective when |
|
Definition
1.Sender and receiver share common frames of reference
2. There is two-way communication
3. Message and media are synergetic |
|
|
Term
|
Definition
1. All promotion starts with the audience
• Goal Outcomes
• Awareness, Perception, Attitude, Preference, Trail, Repeat, Loyalty = Sales and Profits |
|
|
Term
| Key Promotion Elements: Message |
|
Definition
o Move the audience to sales and profits
o Words, images & sounds that best convey the value proposition & reach the goal
o All forms of promotion should work together to achieve the objectives and to communicate the “same” positioning message |
|
|
Term
| Key Promotion Elements: Media |
|
Definition
o Communication Pipeline
• Broadcasting was inefficient
• Now you can tune to one specific channel |
|
|
Term
| Key Promotion Elements: Promotion |
|
Definition
• Advertising
• Communicating with many buyers through an impersonal medium
• Lower costs per exposure than personal selling, but less “potent”; can be targeted (narrowcasting)
• Ad agencies |
|
|
Term
| Key Promotion Elements: Direct Marketing |
|
Definition
• Key elements:
o Contact list
o Database management
o Incentive/reason to act (“offer”)
o Experimentation with offers to selected prospects
o Fulfillment is an important function once orders are submitted |
|
|
Term
| Key Promotion Elements:Publicity |
|
Definition
• Uncontrolled messages by the news media about the company and or its products
• Press releases require skillful preparation
o Newsworthy; journalistic style
• Relationship with the press is needed, but can’t be “too cozy” |
|
|
Term
| All of these key promotion elements lead: |
|
Definition
• Message Potency
• Frequency
• Reach |
|
|
Term
| Ethical Issues in Promotion |
|
Definition
o Materialism
o Honesty
o Exploitation of disadvantaged groups
o High pressure/manipulation/fear
o Bad taste/indecency
o Bribery
o Invasion of privacy
o Disparagement of competitors |
|
|
Term
| Distribution Channel Design |
|
Definition
o Directness
o Coverage Intensity
o Multiplicity
o Channel Organization & Management |
|
|
Term
| 3 types of coverage intensity |
|
Definition
1. Intensive : widely available
2. Selective: Only at "better" stores
3. Exclusive : "1" outlet per market area |
|
|
Term
|
Definition
| # of different channels utilized simultaneously |
|
|
Term
| Channel Organization & Management |
|
Definition
• Traditionally, channel members were independent operations
• Not an integrated system
• Better to work together as a system; as channel partners
• Vertical Marketing System
o Cooperative; Franchise; Corporate; Administered
• Horizontal systems
o Joint marketing agreements |
|
|
Term
| channel management issues: leadership |
|
Definition
- which member of the channel serves as the leader
- one channel member needs to "captain" the team
- channel members have interdependent profit functions
- team goals |
|
|
Term
| channel management issues: motivation |
|
Definition
- volume
- margins
-support
-push and pull cross over |
|
|
Term
| channel management issues: conflict management |
|
Definition
- how differences among channel members are resolved
- channel member goals may not align well and conflict may |
|
|
Term
|
Definition
• The recent trend is to reduce the number of intermediaries or to restructure the channel to use different types of intermediaries
• Much of this is due to e-business technology based transaction and supply-chain management systems |
|
|
Term
| Ethical Issues in Marketing: Distribution |
|
Definition
• Inventory Shrinkage
• Deception
• Privacy invasion
• Gray Markets
• Go across market boundaries
• Slotting allowances
• Exploitation/Power
• Fair competition/ Restraint of trade
• Exclusive dealing
• Restricted territories
• Tying contracts |
|
|
Term
|
Definition
o Transportation
• Distribution centers
• Modes of transportation
o Inventory
• Supply-chain management
• Just-in-time
• Electronic Order Processing |
|
|
Term
| integrated marketing communications |
|
Definition
| the company carefully integrates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands |
|
|
Term
|
Definition
1. push strategy: "pushing" the product through marketing channels to final consumers
2. Pull Strategy: the producer directs its marketing activities twoard final consumers to induce them to buy the product |
|
|
Term
| setting the advertising budget: affordable method |
|
Definition
| they set the promotion budget at the level they think the company can afford. Small business use this the most but can lead to bad budget plans |
|
|
Term
| setting the advertising budget: percentage-of-sales method |
|
Definition
| setting their promotion budget at a certain percentage of current or forecasted sales. or they budget a percentage of the unit sales price. |
|
|
Term
| setting the advertising budget: competitive- parity method |
|
Definition
| setting their promotion budgets to match competitors' outlays |
|
|
Term
| Digital Marketing – 2 Business Models |
|
Definition
1. B2C
Informational sites
Transaction sites
“Clicks” vs. “Bricks & clicks” approaches
2. C2C
EBay, etc.
Blogosphere
Communities & social-networking |
|
|
Term
| Digital Marketing – Business Models |
|
Definition
| A large number & very wide variety of consumers use the Internet for “shopping”; a smaller, but growing number for actual “buying”… |
|
|
Term
| Digital Marketing – Viral Marketing |
|
Definition
| Viral marketing uses the Internet as well as other ways to enable word-of-mouth |
|
|
Term
|
Definition
| Relative benefits:sacrifices ratios across products |
|
|
Term
| Pricing Strategies: Penetration |
|
Definition
| “low” initial price to get volume |
|
|
Term
| pricing strategies: skimming |
|
Definition
| “high” initial price to get margin; incrementally reduce price later to get more volume at the highest margins possible |
|
|
Term
| pricing strategies: Every Day Low Price |
|
Definition
| lower, “value” pricing to get volume; builds store traffic with “value” positioning |
|
|
Term
| Pricing Strategies: Bundling |
|
Definition
increase % value with addons that would be priced higher in total if purchased spearetley
- Complementary goods (cross-selling) – set price on an item in order to sell a different one with it |
|
|
Term
| Pricing Strategies: Price Discrimination |
|
Definition
| set different prices to different types of buyers according to willingness & ability to pay |
|
|
Term
| Influencing Factors on Pricing |
|
Definition
Customer Factors
Industry/Competitive Factors
Channel of Distribution Factors
Company Factors
Social/Legal Factors |
|
|
Term
| Break-even Analysis: BE Quantity = |
|
Definition
(Fixed costs)/(Price/unit – Variable cost/unit)
Should calculate the “break-even quantity” at different prices then check to see which volume is most likely to exceeded, given the prices involved. |
|
|
Term
| Social/Legal Factors: Pricing |
|
Definition
predatory pricing
price fixing - collusion
price discrimination
gouging
deceptive pricing
bait & switch
transportation based pricing |
|
|
