Marketing Communications

Name all the promotion venues
Direct Marketing
Sales Promotion
Point of Purchase
Sponsorship
Product Placement
Branded Entertainment
Public Relations
Influence Marketing
Social Media
Corporate
Personal Selling
Sales Management
Direct Marketing
Interactive marketing system that uses multiple media to generate a transaction or other measurable response at any location.
CPI
Cost-Per-Inquiry
CPO
Cost-per-order
RFM Analysis
analysis of how recently and frequent a customer bought from an organization, and how much the customer spent.
Cross-Selling
Selling additional products to existing customers
Name some list enhancements
Demographics, geodemogrphics, psychographics, and/or behavioral data.
Name the three elements of a marketing database.
Mailing list
List Enhancements
Consumer Provided Information.
Sales Promotion
Use of innovative techniques that create a perception of greater brand value among consumers or distributors.
Name the three types of sales promotion
Consumer-Market
Trade-Market
Business-Market
Riding the boards
Assessing billboard locations.
Madison & Vine
Convergence of Advertising and entertainment
Chaos Scenario
Ad revenue leaving traditional advertising because of over-saturation and loss of audience.
Leveraging
Using communication to reinforce the link between a brand and an event.
Reactive Public Relations Strategy
PR that is defensive and solves problems: ie. Reactionary.
Proactive Public Relations Strategy
PR that seek publicity and generating goodwill. Offensive.
Public Relations Audit
Internal study that identifies the objectives and activities of a firm’s PR communications.
Corporate Advertising
Generating favorable attitudes towards the company as a whole (apple) vs. a product (iPod).
Advocacy Advertising
Ads that attempt to influence public views of causes meaningful to the company.
Personal Selling
Face-to-face communication and selling. // persuasion.
System Selling
Selling a set of interrelated components that fulfill a majority of a customer’s needs in a product or service area.
Missionary Salesperson
Salesperson who reaches out to current customers. Not necessarily for the selling of more product.
Detail Salesperson
Salesperson that provides information without seeking an immediate sale.
AIDA
Attention-interest-desire-action
SFA
Sales For Automation
Importance of Sales Promotion?
Short term results, use of incentives. Different purposes than mass media advertising.
Name Main Objectives of Sales Promotion in Consumer-Market
Stimulate trial purchase
Stimulate repeat purchase
Stimulate larger purchases
Combat or disrupt competitor’s strategies
Contribute to IMC
Introduce a new brand
IMC
Integrated Marketing Communications
Name Main Objectives of Sales Promotion in Trade-Market
Increase Order Size
Obtain Initial Distribution
Encourage cooperation with consumer-market SP
Increase store traffic.
Risks of Sales Promotion
Constant Deals can erode perceived value.
May be borrowing from future sales.
Customer may abandon as soon as sale is up.
Benefits of Sponsorship
Familiarity
Loyalty
Risks and Obstacles of Branded Entertainment
Oversaturation
Conflict with entertainment media
Unpredictability
Need for full disclosure
Name Components of a PR Plan
Situation Analysis
Program Objectives
Program Rationale
Communications Vehicles
Message Content
PR Situation Analysis
Summary of information obtained from the public relations audit, often broken down by category, such as product performance or community activity.
Explain PR Program Objectives
Objectives stemming from the current situation and set for both short-term and long-term opportunities; generally focus on reputation or the stature of the firm’s R&D efforts.
Explain PR Program Rationale
Identification of the PR Program’s role relative to the other brand promotion efforts; articulates an IMC perspective.
What do Salespeople do Besides Sell?
Provide relevant marketing analysis info, sales forecasting, ideas for new products, and analysis of buyer behavior. CRM
CRM
Customer Relationship Management
Steps in the Selling Process
Prep, prospecting, initial contact, presentation, handling objections, closing the sale, follow up.
Sales Force Management Responsibilities
Situation Analysis
Setting Objectives
Budgeting
Structuring Sales Force
Hiring
Training
Motivating
Evaluating
Define IMC
The use of a wide range of promotional tools working together to create widespread brand exposure.
Promotional Mix
A blend of communication tools used to carry out the promotion process and to communicate directly with an audience.
Member of a trade channel
Advertising audience that includes retailers, wholesalers, and distributors.
The Marketing Mix
Product
Promotion
Price
Distribution
External Position
Competitive niche pursued by a brand.
Internal Position
Niche a brand occupies with regard to the company’s other, similar brands.
Inelasticity of Demand
Low sensitivity to price increases; may result in brand loyalty.
Primary Demand Stimulation
Promotion aimed at creating demand for a product category.
Selective Demand Stimulation
Promotion aimed at creating demand for a specific brand.
Delayed Response Promotion
Promotion that relies on imagery and message themes to emphasize a brand’s benefits and positive qualities to encourage customers to purchase the product at a later date.
Account Executive
Liaison between an advertising agency and it’s clients.
Account Team
Group of people comprising different facets of the promotion industry who work together under a team leader.
Cognitive Style
An individual’s preference for thinking about and solving a problem.
6 Keys to Creativity
Challenge
Freedom
Resources
Work Group Features
Supervisory Encouragement
Organizational Support
Consumer Behavior
activities and decision process directly involved in obtaining, consuming, and disposing of products and services.
need state
psychological state arising when one’s desired state of affairs differs from one’s actual state of affairs.
Internal Search
Search for product information that draws on personal experience and prior knowledge.
Consideration Set
Subset or brands from a product category that becomes the focal point of a consumer’s evaluation.
External Search
Gathering product data by visiting stores to examine alternatives, seeking input from friends, or perusing professional product evaluations.
Cognitive Dissonance
anxiety or regret felt after difficult decisions.
Involvement
Degree of perceived relevance and personal importance accompanying the choice of a product of service in a particular context.
MAAMs
Multi-attribute attitude models
Multi-Attribute Attitude Models
Framework and set of procedures for collecting information from consumers to assess their salient beliefs and attitudes about competing brands.
Cognitive Consistency
Maintenance of a system of beliefs and attitudes over time.
ELM
Elaboration Likelihood Model – A social psychological model of the response to a persuasive communication expressing the response in terms of motivation and ability.
Stratification
Individuals relative standing in a social system as produced by systematic inequalities.
Name the four stages of consumer decision making.
Need recognition
Information search and alternative evaluation
Purchase
Postpurchase use and evaluation
Peripheral Cues
Features of an ad other than the actual arguments about the brand’s performance. Used when the ad view tries to avoid thoughtful recognition of the ad.
STP Marketing
Developing a strategy through Segmenting, Targeting, and Positioning.
Emergent Customers
A market segment made up of consumers who often buy what is on sale or choose brands that offer price incentives.
Psychographics
A form of market research that emphasizes the understanding of consumers’ activities, interests, and opinions.
Criteria for choosing Target Market
Company’s ability to serve segment.
Size
Growth Potential
Competition within segment
Value Proposition
Is a statement of the of the brand’s functional, emotional, and self-expressive benefits.
Analogy Approaches
Assuming that future demand will mirror past demand.
Market Potential
Volume of a specific product that would be bought by a market segment over a specific period of time.
Sales Potential
Is the prospective portion of a target market (Student’s looking for Laptops) that will buy from a specific brand (apple).
Area Dimension
Sales potential defined by a region.
Product Level Dimension
Sales potential defined by a certain group of product(s).
Time Level Dimension
Sales potential during a specific amount of time.
Forecasting Criteria
Money
Authority
Desire
Access
Market Minimum
Sales that would result if nothing was spent on marketing.
Quantitative Forecasting Techniques
Relies on sales volume and other numbers from past and presumed.
Judgmental Forecasting Techniques
Relies on judgement of people who are knowledgeable in the field.
Input-Output analysis
Forecasting that uses input-output info from other industries, companies and markets.
Correlation Analysis
Forecasting that uses a correlation between the potentials sales of a product, and and a market factor that closely parallels those sales.
Market Factor Index
Is used to develop data on the overall sales potential.
Pure Food and Drug Act
1906. Required ingredient lists.
Creative Revolution
Shift toward creative advertising in the 60’s
CGC
Consumer Generated Content
Foundation for Advertising
Capitalism
Industrial Revolution
Branding: Power in distribution
Mass Media
Vertical Cooperative Advertising
Sharing of advertising expense by a manufacturer and dealer. (Wholesaler or retailer).
Advertising Substantiation Program
FTC program that ensures advertisers make available to consumers supporting evidence for advertising claims.
Consent Order
FTC action asking an advertiser to stop running deceptive or unfair ads without admitting guilt.
Cease-and-desist order
FTC action requiring an advertiser to stop running and ad so that a hearing can be help to determine whether or not the ad was deceptive or unfair.
Affirmative Disclosure
FTC action requiring that important material determined to be absent from prior ads be included in future ads.
Corrective Advertising
FTC action requiring advertiser to run additional ads to dispel false beliefs created by deceptive advertising.
Appropriation
Use of images owned by someone else without permission.
SRC
Self-Reference Criterion – Unconscious reference to one’s own cultural values, experiences and knowledge as a basis for decisions.
Demographic dividend
Favorable climate for economic expansion in developing nations as a result of falling labor costs, a younger and healthier population, and entry of women into the workforce.
Macroenvironmental
Demographics, economics, social-cultural aspects, competitive, political legal, technological variables.
Microenvironmental
The company itself, the customers, suppliers, distributors, market intermediaries, and publics with influence on the company.
Disposable Income
What consumers have to spend after taxes.
Discretionary Income
What consumers spend after taxes and necessities.
Name things that effect Economic Market Environment
Income Distribution
Purchasing Patterns
Unemployment
Inflation
Business Cycles
The Competitive Environment
Monopoly
Oligopoly
Pure Competition
Monopolistic
Oligopoly
A “monopoly” help by a few large companies.
Pure Competition
Market where many companies hold access to the market and large knowledge of the market. Often commodities.
Monopolistic Competition
A market structure in which many companies sell products that are similar but not identical.
Elements of the Relationship Continuum
Financial
Social
Interdependent Relations (business partners)
Integrated Marketing Communications
A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service or organization are relevant to that person and consistent over time.
Key Rationale Behind RM
It is more profitable to build relationships with existing customers than to acquire new ones.
Transactional Marketing
Short term goal marketing focused on making the sale with minimal communication and interaction with the customer.
Churn Rate
Measurement of the number of customers who stop using or purchasing products or services from a company.
SMP
Strategic Marketing Planning
Strategic Marketing Planning
Involves mission statements, environmental analyses, and establishment of goals, strategies and programs.
Negative Demand
A significant segment of the market dislikes the product and may avoid it.
No Demand
When a target market is unmotivated or uninterested in purchasing a product.
Latent Demand
Many prospective customers share a desire for satisfaction that can’t be met by existing products.
Falling Demand
Competitive firms overtaking domestic market share.
Hold Strategy
To preserve existing market share and take advantage of a position cash flow.
Harvest Strategy
Increase the products short term cash flow regardless of long-term consequences.
Divest Strategy
To liquidate the product and use market resources elsewhere.
Growth Strategy
To increase profits and share market.
List Intensive Growth Strategies
Penetration Strategy
Market Development Strategies
Product Development Strategy
Intensive Growth Strategies
Stress intensive cultivation of the firm’s present markets and are appropriate in situations where existing product/market opportunities have not been fully developed.
Integrative growth strategies
Are generally appropriate in situations where the firm’s industry is strong and supportive, and the firm can move backward, forward, or horizontally.
List Integrative Growth Strategies
Backward integration
Forward Integration
Horizontal Integration
Diversification Growth Strategies
Appropriate where few opportunities for growth exist in the firm’s own field.
List Diversification Growth Strategies
Horizontal Diversification
Conglomerative Diversification
Concentric Diversification
Market Challenger Strategies
Adopted by runner-up firms.
List Market Challenger Strategies
Frontal Attacks
Flank Attacks
Bypassing Strategies
DSS
(Decision Support Systems) facilitate fast, efficient problem-solving and decision-making by marketers at all levels, in the SMP process.
Database Mining
Finds patterns and relationships in customer data stored in the DSS database that generated customer profiles useful in segmenting markets and more.
Long Term Value of a Customer
Churn rate
Profitability over time
EER
Exposure effectiveness rating
PERT
(Program Evaluation and Review Techniques) Developed to handle uncertain activity times.
CPM
(Critical Path Methods) to identify trade-offs between time and costs for project activities.
Balanced Scorecard
Measurement approach that provides an overall picture of an organization’s performance as measured against goals in finance, customers, internal business processes, and learning and growth.
Heuristic
a simple thinking strategy that often allows us to make judgments and solve problems efficiently; usually speedier but also more error-prone than algorithms.
The Four Marketing Systems
Organizational
Marketing Planning
Market Control
Marketing Information
The Organizational System
Holds together and harmonizes the interacting systems comprising the marketing system.
The Marketing Planning System
Which identifies marketing opportunities and helps generate customer-oriented strategic plans.
The Marketing Control System
Monitors performance of strategic plans and activate necessary measures to keep performance pointed toward objectives.
Line Position
When a person is assigned to involves responsibility for generating profits by directing, coordinating, motivating, and controlling the activities of other people.
Staff Position
When the responsibility of the person is specialized and advisory with little direct effect on profit.
MR
(Market Research) is the systematic collection, recording, analysis, and distribution of data and information about marketing problems and opportunities.