Marketing Principles of Advertising Quiz 1- Rupert SMU

four p’s
Product, place, price, promotion
product
characteristics, brand, packaging, return/warranty
place
shelf location, display, inventory, distribution channels, transportation, territory or coverage
price
listed cost, discounts, bundling, terms (b2b) credit
promotion
advertising, sales promotion, direct marketing, public relations, personal selling
the _________ is much more than the tangible item that the customer sees
product
________ includes the tools that determine how much and when the customer pays
price
____________ includes all communications with potential customers that are intended to influence their attitudes, beliefs and purchase decisions
promotion
______________ involves how and when the customer gets the product
place
if prices rise faster than income does…the amount people buy _______________
decreases
cost to product products escalates as______________
prices increase
spending, debt and use of all credit decline during a ________
recession
disposable income
what is left after paying taxes
54% of households have a ____________ ______________ of 25k-100k
gross income
gross income
your total annual income before any deductions
discretionary income
whats left over after paying taxes and necessities
necessites
food, housing, clothes, transportation, and health care. Classified by the department of labor
barriers to entry are defined as
conditions that make it difficult for new firms to enter the market
examples of barriers to entry
high advertising dollars
high capital expenditures
distribution access
switching cost
product identity
Sherman Antitrust Act (1890)
forbids contracts in Restraint of Trade
Clayton Act (1914)
forbids actions that are likely to lessen competition…even if no hard has actually occurred yet
Robinson-Patman Act (1936)
Unlawful to charge different prices for same product…where the effect may substantially lessen competition
marketing is
the delivery of customers satisfaction at a profit
Federal Trade Commission
protects consumers from deceptive or misleading advertising and unfair or deceptive trade practices
FTC has the power to issue:
cease and desist ruling
corrective advertising
FTC example in the real world
Volvo example, false advertising that the car was that strong
BCG Matrix is…
a strategic planning tool based on important concepts; a products market growth rate, and a products relative market share
stars
top left
invest for growth
earnings: growing
question mark
top right
invest or sell
earning: unstable
cash cows
bottom left
invest or harvest
earning: high
“milk until dead”
dogs
bottom right
divest “get rid of”
earnings: low
diversification
develop new products outside of the company core business and sell them in new markets
post purchase behavior
how you feel about the deal AFTER you bought it
cognitive dissonance
Post purchase psychological tension/anxiety
Consumer purchase decision process
problem recognition
information search
alternative evaluation
purchase decision
post purchase behavior
consumers involvement in the marketing strategy breaks down into….
high and low
low involvement in the marketing strategy
maintain product quality
avoid stockouts
reduce cognitive dissonance with memorable ads
low involvement ad example
cheerios
high involvement in the marketing strategy
informational ads that promote trust
personal selling
high involvement ad example
apple
extended problem solving
each of the five stages of the utter purchase decision process is used and considerable and effort are devoted to the search for external information and the identification and evaluation of alternatives