Marketing 301 Final Exam Winterich

Promotions
Message that clearly communicates customer value/ builds relationships
Promotional Mix
Advertising
Public Relations
Personal Selling
Sales Promotion
Direct/Digital
1. Advertising
– Paid, non-personal, one-way
– Narrowcasting
– Madison & Vine
Setting Objectives
Informative Advertising
Persuasive Advertising
Reminder Advertising
Setting Advertising Budget
Affordable Method
Percentage-of-Sales Method
Competitive-Parity Method
Objective-and-Task Method
Objective-and-Task Method
Large companies
– Define objectives
– Determine tasks to achieve objectives
– Estimate cost of each task
Ad Execution Styles
Slice of Life
Lifestyle
Fantasy
Mood/Image
Musical
Personality Symbol
Technical Expertise
Scientific Evidence
Testimonial
Consumer Generated
Moderate Incongruity
Different, but not too different
Maslow’s Hierarchy of Needs
Selt-Actualization
Esteem
Social
Safety
Physiological
Media Decisions
Media/Medium
Media Vehicles
Media Scheduling
Reach
Frequency
Media Impact
Evaluating Advertising Effectiveness
Communications effects
Sales and Profit effects
2. Public Relations
Building good relationships with the company’s publics
– Favorable publicity
– Good corporate image
– Handling bad rumors, stories, events
Public Relations Tools
Press Release
Conference
Special Events
Exclusive Interviews
Public Service
Buzz Marketing
Corporate Websites
3. Personal Selling
Salesperson covers wide range of positions (order takers to order getters)
– Create sales
– Build and maintain relationships
– Boundary spanning
– Educate customers
– Bring information to the company
Steps in Selling Process
Prospecting and Qualifying
Pre-approach
Approach
Presentation and Demonstration
Handling Objections
Closing
Follow-Up
Key Talents of Successful Salespeople
Intrinsic motivation
Disciplined work style
Ability to close a sale
Ability to build relationships with customers
Sales Force Structure
Outside and Inside
Territorial
Product
Customer
Complex
4. Sales Promotion
Offer incentives to buy now or buy more
Rewards quick response
Advertisements vs. Sales Promotions
Advertisements
– Long Terms
– Image over time
– Position in the market

Sales Promotions
– Short Term
– Immediate Sales
– Temporary boost to market share

Sales Promotion Techniques (B2C)
Sampling
Couponing
Rebates
Premiums
Advertising Specialties
Patronage Rewards
Point-of-Purchase Promotion
Contests and Sweepstakes
Events
Sales Promotion Techniques (B2B)
Trade Promotions
– Price Discounting
– Allowance

Business Promotions
– Conventions and Trade Shows
– Sales Contests

Direct Marketing
Direct communications with carefully targeted individual consumers to obtain an immediate response
Benefits of Direct Marketing
Buyers
– Convenient, easy, private
– Access to products, information
– Interactive and immediate

Sellers
– Tool for building relationships
– Low-cost, efficient, speedy way to reach markets
– Flexibility

Forms of Direct Marketing
Direct Mail
Catalog
Telemarketing
Direct Response Television
Kiosk
New Digital Technologies
Online
Face to Face
Direct Mail
Sending an offer, reminder, announcement, or other item to a particular person’s address
Catalog
Print catalogs, web-based catalogs
Direct Response TV
Direct marketing on TV, which elicits a direct response
Infomercials
Home Shopping Channels
Online
Click-Only
Click-and-Mortar
Forms of Online Marketing
Banner Ads (side or bottom)
Interstitials (pop-up)
Search-Related Ads (related to search)
Content Sponsorships (look like magazine)
Alliances (partnerships)
Affiliate Programs (mommy ads)
Viral Marketing (get people talking)
Price
Traditional Definition
– The amount of money charged for a product or service

Current Definition
– Sum of all things that customers give up to gain the benefits of having or using a product or service

Pricing Approaches
Traditional – no one looks at consumer WTP
– Cost-Based (calculate costs to produce, add markup -> cost)
– Competition-Based (look at what competition is doing, copy -> price)

Now – what we use now
– Value-Based (value (WTP) must be greater than price)

Value and Pricing
Core Benefit – why sell it
Financial Value – cost savings
Emotional Value – status, safety
Nature of Price
– Easiest to change/adjust

Profit = TR – TC
Profit = (Price x Quantity) – Total Costs

New Product Pricing
Price Skimming
Market Penetration Pricing
Pricing and Product Mixes
Product Line
Optional-Product
Captive-Product
By-Product
Bundle
Price Adjustment Strategies
Discount
Segmented
Psychological
Promotional
Geographical
Dynamic
Segmented Pricing
Customer-Segment
Product Form
Location-Based
Time-Based
Changing Prices
Reduce price
Raise perceived value
Improve quality and increase price
Launch low price “righting brand”
Public Policy and Pricing
Protect Competitors From:
– Price Fixing
– Predatory Pricing
Protect Consumers From:
– Price Discrimination
– Price Maintenance
– Deceptive Pricing
Place
Marketing channels, supply chain management and logistics, retailing
Distribution
Decisions and activities that make products available to customers when and where they want to purchase them
Marketing Channel
Group of individuals and organizations that directs the flow of products from producers to customers
Marketing Channels (Old, Newer, Newest)
The Old Way
– Producer -> Retail Outlet -> Consumers

The Newer Way
– Producer -> Wholesaler -> Retail Outlet -> Consumers

The Newest Way
– Producer -> Distribution Center -> Retail Outlet -> Consumers

Conventional Marketing Channel
Producer -> Wholesaler -> Retailer -> Consumer
Vertical Marketing System
Producer, Wholesaler, Retailer (work together) -> Consumer
Types of Vertical Marketing Systems
Corporate
Contractual
Administered
Horizontal Marketing System
Two or more companies at one level join together to follow a new marketing opportunity
– Joint Ventures
– FOX + NBC + Disney
Marketing Channel Selection
Customer Characteristics
Product Attributes
Type of Organization
Competition
Marketing Environmental Forces
Characteristics of Intermediaries
Intensity of Market Coverage
Intensive/Extensive Distribution
Selective Distribution
Exclusive Distribution
Physical Distribution
Logistics
– Mode Selection
– Private Fleets vs. Contract Carriers
– Inventory Management
Major Logistics Functions
Transportation
Warehousing
Inventory Management
Logistics Information Management
Supply Chain Management
Long-term partnerships among marketing channel members that reduce inefficiencies, costs, and redundancies in the marketing channel and develop innovative approaches to satisfy customers
Retailing
Any activity involved in selling a product or service directly to final consumers
– Amount of Service
– Product Line
– Relative Prices
Types of Retailers
General Merchandise
– Department Stores
– Discount Stores
– Convenience Stores
– Supermarkets
– Superstores
– Warehouse Clubs
– Warehouse Showrooms

Specialty Retailers
– Traditional
– Category Killers
– Off-Price Retailers