MARK Test3 Flashcards
1
Q
Goal of Integrated Marketing Communication (IMC)
A
ensure all the various marketing mix elements work together to deliver a consistent message
2
Q
Elements of Integrated Marketing Communication (IMC)
A
Consumer, Communication Channels, and Measures of Success
3
Q
Consumer Steps
A
Sender
Transmitter
Channel
Reciver
4
Q
Sender
A
Origin of the message
- Clearly identifiable to its intended audience
- Chick-fil-A has clear and consistent brand elements(logo, color, sounds, fronts)
- Consistency across all marketing communications
5
Q
Transmitter
A
Marketing department of agency partner
- Agency or internal marketing department that translates brand objectives into marketing messages
- Will be briefed on goals of communication campaign and make recommendation to bring those goals to life
- Responsible for encoding the message
6
Q
Encoding
A
conversion of the firm’s goals and objectives into the marketing message (combination of visual, verbal, auditory cues)
7
Q
Channel
A
Medium transmitting the message
- Medium that carries the message
Prints, broadcasts, television, radio, social media, sponsorships, product placement and in-store are all different media channels
- Broader the target market, more “mass reach” the channel should be
8
Q
Receiver
A
Consumer target who sees or hears message
- Customer who read, hears, or sees the message and then process the info it contains
- Channels are chosen with the hopes that the target customer will be receivers
9
Q
Decoding
A
process which the receiver interprets the sender’s message
10
Q
Noise
A
any interferences that impacts how the message is receives, and can be created anywhere along the communication process
11
Q
Feedback Loop
A
enables the receiver to tell the sender if the message was received and decoded as intended
12
Q
AIDA Model
A
Think, Feel, Do Model
- At each stage, the consumer makes a decision about whether or not to take the next step based on the info at hand
- Consumers don’t follow every step for every purchase
13
Q
AIDA: Awareness
A
Brand Awareness → customer’s ability to recognize or recall a brand of retailer, product, or service
14
Q
2 key awareness metrics:
A
Aided recall → consumer’s recognition of a brand after the name is presented to them
EX: “Are you familiar with the store Publix?”
Top of mind awareness → higher level of awareness in which consumer mentions a specific brand of product or service before all others
Ex: “Name a grocery store” “Publix”
15
Q
AIDA: Interest
A
Once the consumer is aware that the product exists, marketing communication must work to increase the consumer’s interest
16
Q
AIDA: Desire
A
After the firm has piqued the interest of its target market, goal of subsequent message should move the consumer from “Ilike it” to “I want it” increasing desire
17
Q
AIDA: Action
A
Ultimate goal of any form of communication is to drive the receiver to action
Purchase → type of potential action, but further research into product is a common follow up action that leads to purchase
18
Q
Laggard Effect
A
delayed response to a piece of marketing communication
19
Q
Communication Channels
A
For any marketing campaign to succeed, the firm must deliver:
The right message
To the right audience
Through the right media
Goal of marketing is to form long-term, loyal relationship with customers rather than just short-term, transactional relationship
20
Q
Advertising
A
placement of announcements and persuasive message in time or space
21
Q
Ads
A
most visible element of an integrated marketing campaign
22
Q
Broad-reach advertising
A
effective for creating awareness of product or service offering
23
Q
Public Relations
A
to the organization function that manages a firm or brand’s public perception
PR serves multiple objectives, including:
Building and maintaining a positive brand image
Managing unfavorable events or news coverage
Fostering positive press relationships
24
Q
Objectives of Public Relations
A
Building and maintaining a positive brand image
Managing unfavorable events or news coverage
Fostering positive press relationships
25
Sales Promotion
incentives to build excitement and encourage purchases
Ex: coupons, rebates, contests, sampling programs, and point-of-purchase (POP) displays
26
Personal Selling
2 way communication between buyers and seller, often via a salesperson to encourage purchase
27
Direct Marketing
communication that takes place directly with target customers with the intent to generate a response or transaction
28
Online Marketing
broadly to any marketing communication messages transmitted via website or social media platforms
29
Measures of Sucess
Before starting any communication campaign, firms need to understand and define the outcomes they hope to achieve
Whether short term or long-term, goals should be explicitly defined and measurable for ex:
30
Objective and Task Method
Approach to budgeting follows a straightforward process:
Set objectives
Choose media vehicles to reach target
Determine costs for each vehicle
31
Competitive Parity Method
Communication budget is set so that the firm’s share of communication expenses equals its share of the market
Limitations: does not allow firms to exploit the unique opportunities or problems they confront in a market
If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time
32
Percentage of Sales Method
Communication budget is a fixed percentage of forecasted sales
Limitations: assumes the same percentage used in the past, or by competitors, is still appropriate for the firm
Doesn’t take into account new plans
33
Available Budget Method
Marketers forecast their sales and expenses excluding communication, during the budgeting period
The difference between the forecast sales and expenses plus desired profit is reserved for the communication budget
That is, the communication budget is the money available after operating costs and profits have been budgeted
Limitations: Assumes communication expenses do not stimulate sales and profit
34
Marketing Sucess Metrics
Frequency, Reach, Gross Rating Points
35
Frequency
how often the target audience is exposed to a message over a determined period of time
36
Reach
percentage of the population exposed to the marketing message at least once
37
Gross rating points (GRP)
calculated by multiplying reach by frequency and are also referred to as media impressions
38
Campaign Planning and Execution
actions take place before an ad is seen by the public:
1. Identify target auidence
2. set advertising objectives
3. Determine the advertising budget
4. Convey the Message
5. Evaluate and Select Media
6. Create the indiivudals ads
7. Assess the Impact
39
First Step of Camapign Planning and Execution
Identify target auidence
40
2. Set Advertising Objectives
2 different stratgies to reach firm objectives: Push and Pull
41
Push Strategy
aims to increase demand by motivating wholesalers, retailers, salespeople to promote the firm’s product over competitor products
42
Pull Strategy
aims to increase demand by speaking to consumers directly
43
Informative advertising
relies on facts, statistics, and product features rather than emotion
- Used to create and build awareness and to push the consumer through the buying cycle to the point of purchase
44
Persuasive advertising
Relies more on emotional appeal
45
Reminder advertising
used to remind consumers about a product, rather than using informational or emotional appeals
46
Produce-Focused : advertising objectives
Inform, persuade, or remind consumers about a product or service
47
Institutional : advertising objectives
- Promote a company, corporation, business, or institution
- Used to improve or enhance the public perception of a firm or organization
48
PSA- advertising objectives
Designed to raise awareness of public welfare issues
49
3. Determine the advertising budget
Advertising is often largest single expenditure in the marketing or promotional budget
50
4. Convey the message
Firms need to determine what specifically they want to convey about a product or service
Unique selling proposition (USP) → shortened version of a value proposition that conveys core benefits to the target audience, often in the form of a tagline or slogan
51
Appeals
used to portray the product or service in a certain way that makes them attractive to consumers
2 types: Informational and Emotional
52
Informational Appeal
more cognitive and persuade using rational though
Helps consumers make purchase decisions by offering factual info
53
Emotional Appeal
persuade by triggering an emotional response rather than offering rational arguments
54
Key to a successful emotional appeal
the use of emotion to create a bond between the consumer and the brand
55
5. Evaluate and select media
Content of the advertisement needs to match the characteristics of the media vehicles used to carry it
56
Mass Media
reach a broad audience
- Large anonymous audience
- Billboards, newspapers, magazines, radio, television
57
Niche Media
customize the same message for various audiences
- More focused and allows firm to reach narrower segments with unique demographics or interests
58
Continuous strategy
- Steadily throughout the year
- A steady flow of information or persuasive messaging is appropriate for frequently purchased goods such as food, personal care, and home care products
- Continuous advertising is also leveraged for products in highly competitive categories that benefit from a steady level of reminder advertising
59
Flighting schedule
flighting refers to an advertising schedule that is implemented in spurts, with periods of heavy advertising mixed with periods of no advertising
Flighting is often used for seasonal goods that benefit from marketing messaging only during certain times of the year
60
Pulsing schedule
Pulsing combines continuous and flighting with a base schedule that “pulses” with increased intensity during certain period
This strategy is used by firms who have predictable fluctuations in demand and need to adjust advertising during the periods of
high or low demand
EX: airlines, hotels, and car rentals may have continuous campaigns that drive awareness but increase intensity during seasons of heavier travel
61
Regulation of Advertising in the U.S.
Federal Trade Commission (FTC)
Enforces federal consumer protection laws
Enforces truth in advertising laws and defines deceptive and unfair advertising practices
Federal Communications Commission (FCC)
Regulates interstate and international communication by radio, television, wire, satellite, and cable
Enforces restrictions on material that promotes gambling or tobacco products or that perpetuates a fraud
Enforces laws that prohibit or limit obscene, indecent, or profane language
Food and Drug Administration (FDA)
Regulates food, dietary supplements, drugs, cosmetics, and medical devices
Regulates package labeling and inserts, definitions of terms such as light and organic, and required disclosure statements(warning labels, dosage requirements,etc.)
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
Regulates the advertising for alcohol and tobacco, including warning labels, and determine what constitutes false or misleading advertising
US postal Service (USPS) regulates advertising that uses the mail and that involves fraud, obscenity, or lotteries
U.S. Postal Service (USPS)
62
Public relations
managing communications and relationships to achieve various objectives such as:
Building and maintain a positive image of the firm
Handling unfavorable stories or events
Maintaining positive relationships with the media
63
Sales promotion
special incentives or excitement-building programs that encourage consumers to take action
64
Coupons
offer a discount on the price of a specific time when that item is purchased
Advantage
Stimulates demand
Allows for direct tracking of sales
Disadvantage
Low redemption rates
High cost
65
Deal
type of short-term price reduction that can take many forms (BOGO)
Advantage
Encourages trial
Reduces consumer risk
Disadvantage
May reduce perception of value
66
Premium
offers an item for free or at a discount to reward some type of behavior such as purchase or sample
Advantages
Builds goodwill
increases perception of value
Disadvantages
Consumers buy for premium, not product
Has to be carefully managed
67
Contest
brand-sponsored competition that requires skill or efforts
Advantages
Increases consumer involvement
Generates excitement
Disadvantages
Requires creativity
Must be monitored
68
Sweepstakes
offer prizes based on a chance drawing, rather than a consumer’s skill
Advantages
Increases consumer involvement
Generates excitement
Disadvantages
Sales often decline after the sweepstakes is over
69
Sampling
offers potential customers the opportunity to try a product or service before making a purchase
Advantages
Encourage trial
Offer direct involvement
Disadvantages
High cost to the firm
70
Loyalty Programs
specifically designed to retain customers by offering premiums and incentives
Advantages
Create loyalty
Encourage repurchase
Disadvantages
High cost to the firm
71
Point-of-purchase displays
merchandise displays located in the retail setting
Advantages
Provide high visibility
Encourage brand trial
Disadvantages
Can be difficult to get a high profile and visible location in the store
72
Rebates
particular type of price discount where a portion of the price is returned to buyer in cash
Advantages
Stimulate demand
Increase value perception
Disadvantages
Easily copied by competitors
May just advance future sales
73
Product Placement
involves a firm paying to have their product included in a TV or movie narrative
Advantages
Displays products non traditionally
Demonstrates product uses
Disadvantages
Firm often has little control over display
Product can be overshadowed
74
Personal Selling
2 way flow of communication between a buyer(s) and a seller, designed to influence the buyer’s purchase decision
75
Value to customer via Personal Selling
Salespeople provide individualized information and advice that aids in the decision-making process, which is especially important in complex industries
Salespeople save customers time by not only simplifying the buying process, but sometimes help customers perform their job duties (from stocking shelves to assisting in the OR
76
Value for the firm via Personal Selling
Members of a sales force are afforded the time and resources to focus on building long-term customer relationships
This relationship contributes to building customer loyalty, and assists the firm in identifying new opportunities with existing customers
77
Personal Selling Process
1. Generate & qualify leads
2. Pre-approach
3. Sales preservation & overcoming reservations
4. Closing the sale
5. Follow up
78
1. Generate & qualify leads (personal selling process)
Generate Leads
- First step → generate a list of potential customer referred to as leads, assessed whether or not they are worth pursuing by qualifying those leads
- Inbound marketing → activities that draw the attention of consumers in to find you, rather going out to find them
Trade Shows → events are attended by interested buyers who are choosing to seek out info on supplies within an industry and are an excellent forum for lead generation
Qualify Leads
After a salesperson has generated a lead, now have to qualify it, determining how promises the lead is and whether or not t is worth pursuing
B2B setting, where the preparation of sales materials is time and resources intensive (important to not waste time on uninterested customers)
B2C setting, qualifying leads can be discriminatory and potentially illegal
Cannot and should not determine the worth of a potential customer based on their appearance alone
79
2. Pre-appraoch
Pre-approach → prior to meeting the customers for the first time and serves as an extension of the qualification process
Salespeople use customer relationship management (CRM) tools such as Salesforce to track of info collected during lead generation and qualification
CRM tools → databases of customer info, analytical tools, and ways to track progress towards sales goals
80
Sales preservation & overcoming reservations
Salesperson should warm up the potential client by getting to know them, establishing rapport, and increasing their interest in the details of the presentation
By asking questions and listening carefully to the answers, the salesperson can be better prepared to help manage any concerns or reservation the client has
Managing reservations that arise during the presentation is the most difficult part of the sales encounter
Reservations or objections, raised by the client often have to do with value (price is too high)
81
4. Closing the sale
Closing the sale means obtaining a commitment from the customer to make a purchase
A “no” could mean “not yet” and lay the foundation for a “yes” another day
82
5. Follow Up
Ensuring that customers are satisfied with their purchase
Most firms leverage CRM systems to ensure after-sale communication is established, wither by phone, email or in person
With relationship selling, the sale is never really over, the sale is just the beginning of a customer relationship
The follow-up offers a prime opportunity for a salesperson toff solidify the customer relationship through great service quality
83
Financial rewards
Include their salary, commission, bonus, or contest prizes
84
Nonfinanicla Rewards
take the form of recognition from peers and management, merchandise premiums, free trips or additional vacation time
85
Supply Chain Members
Wholesalers
Suppliers
Manufacturers
Warehouses
Retail Stores
Transportation intermediaries
86
Wholesaler
firms that buy products from manufacturers and resell them to retailers
87
Distribution Centers
facility for the receipt and storage of large quantities of items temporarily while they’re on their way to somewhere else
Goods and packager are stored and moved in and out of distribution centers in large quantities
Purpose: reduce order lead times and shipping costs for these business
88
Fufillment Center
specialize in small-parcel, direct-to-consumer (DTC) logistics
Warehouse teams received goods in bulk, break them down into saleable units, and store them until a customer places an order for 1 of those units
To process or “fulfill” the order, they locate the item, pick it from the shelf, pack it, label it, and ship it to the customer’s address
89
Direct Mareting
no intermediaries between the buyer and seller
Seller could be a manufacturing firm or an individual (e.g. Etsy seller)
By not going through a retailer, seller can increase their margin
Direct-to-consumer (DTC) Brands → sell directly to customer online, bypassing wholesalers and retailers
Allows them to control the user experience, collect first-party shopper data and increase margins
brands could acquire their own customers directly through social ad
90
Indirect Marketing
1 or more intermediaries work with manufacturers to provide goods and services to customers
91
Inventory Management
Tracks goods throughout stores, warehouse, and distribution centers
92
Just-in-time (JIT) inventory management
designed to deliver less merchandise on a more frequent basis than traditional inventory systems
93
Franchising
contractual agreement between a franchisor and a franchise that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor
94
Franchisee
pays a lump sum plus a negotiated royalty on all sales in return for the right to operate in a specific location
95
Franchisor
provides assistance in identifying the retail location, developing the products or services offered, and training the franchisee
96
Conflicts in Supply Chain
vertical channel conflict
horizontal channel conflict
97
Vertical Channel Conflict
occur when supply chain members
that buy and sell to each other, meaning they are part of the
same marketing channel, disagree about the goals or role
ex: wholesaler vs. retailer
conflict between partner at different level in supply chain
98
Horizontal Channel conflict
occurs when there is disagreement
among members at the same level of a marketing channe
- two or more companies at the same level in the supply chain team up to pursue a marketing opportunity
99
Power in the Supply Chain
in a marketing channel refers to the means or ability of
one member to dictate the actions of another member at a
different level of distributio
100
Corporate Vertical marketing system
the parent company has complete control, meaning it can dictate the priorities and objectives of the supply chain
* In this system the firm likely owns its facilities such as manufacturing plants, warehouse facilities, retail outlets, or other methods of transportation (e.g., Tesla, Amazon
101
Independent marketing channe
Is one in
which several independent members each attempts to satisfy its own objectives
* For example, channel partners such as the manufacturer,
wholesaler, and retailer each trying maximize its profits, often at
the expense of the other member
102
Sources of Power in Marketing Channel
Reward
Corecive
Referent
Expertise
Information
Legtimate
103
Reward Power
With its reward power, Walmart offers rewards, often a monetary incentive, if the
wholesalers or manufacturers do what
Walmart wants them to d
104
Corecive Power
Coercive power arises when Walmart
threatens to punish or punishes
wholesalers or manufacturers for not
undertaking certain task
105
Referent
Walmart may also have referent power if a
supplier wants to be associated with
Walmart to enable that supplier to attract
other retailers’ busines
106
Expertise
If Walmart exerts expertise power, it relies
on its vast experience and knowledge to
decide how to market the wholesalers or
manufacturers products
107
Information
Because Walmart has vast amounts of data
about consumers, it might exert information power over wholesalers or
manufacturers by providing or withholding
important market information
108
Legtimate
Legitimate power is based on getting a channel member to behave in a certain way
because of a contractual agreement
between the two firms
109
Global Market Entry Stratgies
Exporting
Franchising
Strategic Alliances
Joint Venture
Direct Investment
110
Exporting
producing goods in 1 country and selling them in another
this entry strategy requires the least financial risk but also allows for only a limited return to the exporting firm
111
Franchising
contractual agreement between a firm, the franchisor, and another firm or individual, the franchisee
- Fastest-growing market-entry strategy
112
Strategic Alliances
collaborative relationships between independent firms
113
Joint Venture
formed when a firm entering a market pools its resource with those of a local firm
114
Direct Investment
requires to maintain 100% ownership of its plants, operation facilities, and offices in a foreign country
115
Gross domestic product (GDP)
market value of the good and service produced by a country in a year
Most widely used standardized measure of output
116
Gross national income (GNI)
consist of GDP + net income earned from investment abroad
Ex: a U.S. firm with investments abroad counts any earnings from those foreign investments in GNI but not GD
117
Trade deficit
country imports more goods than its exports
Signals competition from imported goods, and more competition is better for consumers
118
Tariff
tax levied on a good imported into a country
Intended to make imported goods more expensive and less competition
119
Exchnage Controls
regulation of a country’s currency exchange rate, the measure of how much one currency is worth in relation to another
120
Trade Agreement
intergovernmental agreement designed to manage and promote trade for a specific region
121
Trading bloc
consists of those countries that have signed a particular trade agreement
group of countries that form a regionally integrated area to promote free trade and economic cooperation—often involving multiple trade agreements and shared policies
122
Hofstede’s cultural dimensions
classification scheme that can be used to understand underlying values of a society
6 dimensions of Hofsteded’s concepts serves as a foundation from which to research and analyse different cultures
