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MKT 300 Study Guide for Test 3

by: Julie Knight

MKT 300 Study Guide for Test 3 MKT 300

Marketplace > University of Alabama - Tuscaloosa > Business > MKT 300 > MKT 300 Study Guide for Test 3
Julie Knight
GPA 3.8

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About this Document

This study guide covers chapters 14-18.
Susan Fant
Study Guide
MKT, MKT300, Marketing
50 ?




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This 11 page Study Guide was uploaded by Julie Knight on Monday April 18, 2016. The Study Guide belongs to MKT 300 at University of Alabama - Tuscaloosa taught by Susan Fant in Spring2015. Since its upload, it has received 58 views. For similar materials see Marketing in Business at University of Alabama - Tuscaloosa.


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Date Created: 04/18/16
Susan Fant Marketing Study Guide for Test 3 (Chapters 14, 15, 16, 17, and 18) Chapter 14: Engaging Customers and Communicating Customer Value  Promotion mix- the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships  Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor. o Broadcast o Print o Online o Mobile o Outdoor  Sales promotion is a short-term incentive to encourage the purchase or sale of a product or service. o Discounts o Coupons o Displays o Demonstrations  Personal selling is the personal interaction by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships  Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events  Direct and digital marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships  Integrated marketing communications (IMC) involves carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its products Susan Fant o   AIDA Model o Get Attention o Hold Interest o Arouse Desire o Obtain Action  Rational appeal relates to the audience’s self-interest.  Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase.  Moral appeal is directed to an audience’s sense of what is right and proper  Personal communication involves two or more people communicating directly with each other. o Face to face o Phone o Mail or e-mail o Texting or Internet chat  Opinion leaders are people whose opinions are sought by others.  Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities  Nonpersonal communication channels are media that carry messages without personal contact or feedback, including major media, atmospheres, and events Susan Fant  Collecting feedback involves the communicator understanding the effect on the target audience by measuring behavior resulting from the content  Affordable method sets the promotion budget at the level management thinks the company can afford.  Percentage-of-sales method sets the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price  Competitive-parity method sets the promotion budget to match competitors’ outlays.  Objective-and-task method develops the promotion budget by specific promotion objectives and the costs of tasks needed to achieve these objective  The concept of integrated marketing communications suggests that the company must blend the promotion tools carefully into a coordinated promotion mix  Advertising can reach masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times.  Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers’ preferences, convictions, actions, and developing customer relationships  Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase.  Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events.  Direct and digital marketing is an immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telephone marketing, online, mobile, and social media   Personal Selling o Follow rules of “fair competition” o Do not offer bribes o Do not attempt to obtain competitors’ trade secrets o Do not disparage competitors or their products Susan Fant Chapter 15: Advertising and Public Relations  Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor o  An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time.  The overall advertising objective is to help build customer relationships by communicating customer value  Informative advertising is used when introducing a new product category to build primary demand.  Persuasive advertising is important with increased competition to build selective demand.  Comparative advertising is when a company compares its brand with other brands.  Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product  Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of: o Creating advertising messages o Selecting advertising media  Advertising clutter: Today’s consumers, armed with an arsenal of weapons, can choose what they watch and don’t watch. Increasingly, they are choosing not to watch ads  Madison & Vine—the intersection of Madison Avenue and Hollywood—represents the merging of advertising and entertainment  Message and content strategy-The first step in creating effective advertising content is to plan a message strategy—the general message that will be communicated to consumers  The creative concept is the compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way.  Characteristics of the appeals should be: o Meaningful o Believable o Distinctive  The major steps in advertising media selection are : o Determining reach, frequency, impact, and engagement o Choosing among major media types o Selecting specific media vehicles Susan Fant o Choosing media timing  Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.  Frequency is a measure of how many times the average person in the target market is exposed to the message.  Impact is the qualitative value of a message exposure through a given medium.  Engagement is a measure of things such as ratings, readership, listenership, and click-through rates  Selecting media vehicles involves decisions presenting the message effectively and efficiently to the target customer and must consider the message’s: o Impact o Effectiveness o Cost  Return on advertising investment is the net return on advertising investment divided by the costs of the advertising investment  Communication effects indicate whether the ad and media are communicating the ad message well and can be tested before or after the ad runs.  Sales and profit effects compare past sales and profits with past expenditures or through experiments  Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events  Press relations or press agency involves the creation and placing of newsworthy information to attract attention to a person, product, or service.  Product publicity involves publicizing specific products.  Public affairs involves building and maintaining national or local community relations.  Lobbying involves building and maintaining relations with legislators and government officials to influence legislation and regulation.  Investor relations involves maintaining relationships with shareholders and others in the financial community.  Development involves public relations with donors or members of nonprofit organizations to gain financial or volunteer support Chapter 16: Personal Selling and Sales Promotion  Personal selling is the interpersonal part of the promotion mix and can include: o Face-to-face communication o Telephone communication o Video or Web conferencing  Salespeople are an effective link between the company and its customers to produce customer value and company profit by o Representing the company to customers o Representing customers to the company o Working closely with marketing Susan Fant   Territorial sales force structure: each salesperson is assigned an exclusive geographic area and sells the company’s full line of products and services to all customers in that territory. o Defines salesperson’s job o Fixes accountability o Lowers sales expenses o Improves relationship building and selling effectiveness  Product sales force structure: each salesperson sells along product lines. o Improves product knowledge o Can lead to territorial conflicts  Customer sales force structure: each salesperson sells along customer or industry lines. o Improves customer relationships  Complex sales force structure: a wide variety of products is sold to many types of customers over a broad geographic area, and it combines several types of sales force structures  Salespeople are one of the company’s most productive and expensive assets.  Workload approach to sales force size refers to grouping accounts into different classes to determine the number of salespeople needed  Outside salespeople call on customers in the field.  Inside salespeople conduct business from their offices and often provide support for the outside salespeople. o Technical sales support people o Sales assistants  Team selling is used to service large, complex accounts  Susan Fant   Prospecting identifies qualified potential customers through referrals from o Customers o Suppliers o Dealers o Internet  Qualifying involves identifying good customers and screening out poor ones by looking at o Financial ability o Volume of business o Needs o Location o Growth potential  Approach is the process where the salesperson meets and greets the buyer and gets the relationship off to a good start and involves the salesperson’s: o Appearance o Opening lines o Follow-up remarks  Presentation is when the salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the customer’s problems.  Need-satisfaction approach is when buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems  Handling objections is the process where salespeople resolve problems that are logical, psychological, or unspoken  Closing is the process where salespeople should recognize signals from the buyer —including physical actions, comments, and questions—to ask for a order and finalize the sale  Follow-up is the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business  Personal selling is transaction-oriented to close a specific sale with a specific customer. Susan Fant  The long-term goal of personal selling is to develop a mutually profitable relationship  Sales promotion refers to the short-term incentives to encourage purchases or sales of a product or service now  Setting sales promotion objectives includes using: o Consumer promotions o Trade promotions o Business promotions o Sales force promotions  Samples offer a trial amount of a product.  Coupons are certificates that give buyers a saving when they purchase specified products.  Rebates are similar to coupons except that the price reduction occurs after the purchase.  Price packs offer consumers savings off the regular price of a product  Premiums are goods offered either for free or at a low price.  Advertising specialties are useful articles imprinted with the advertiser’s name, logo, or message that are given as gifts to consumers.  Point-of-purchase promotions include displays and demonstrations that take place at the point of sale  Contests, sweepstakes, and games give consumers the chance to win something—such as cash, trips, or goods—by luck or through extra effort. o Contests require an entry by a consumer. o Sweepstakes require consumers to submit their names for a drawing. o Games present consumers with something that may or may not help them win a prize.  Event marketing or event sponsorship is creating a brand-marketing event or serving as a sole or participating sponsor of events created by others  Conventions and trade shows are effective to reach many customers not reached with the regular sales force.  Sales contests are effective in motivating salespeople or dealers to increase performance over a given period Chapter 17: Direct, Online, Social, Media, and Mobile Marketing  Direct and digital marketing involve engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships  Susan Fant  Online marketing is marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs.  Marketing Web sites engage consumers to move them closer to a direct purchase or other marketing outcome.  Branded community Web sites present brand content that engages consumers and creates customer community around a brand  Online advertising is advertising that appears while consumers are browsing online and includes display ads, search-related ads, online classifieds, and other forms.  E-mail marketing involves sending highly targeted, highly personalized, relationship-building marketing messages via e-mail.  Spam is unsolicited, unwanted commercial e-mail messages  Viral marketing is the digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends.  Online video marketing involves posting digital video content on brand Web sites or social media sites such as YouTube, Facebook, and others  Blogs are online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics.  Social media are independent and commercial online communities where people congregate, socialize, and exchange views and information  Mobile marketing delivers messages, promotions, and other content to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices  Direct-mail marketing involves an offer, announcement, reminder, or other item to a person at a particular address. o Personalized o Easy-to-measure results o Costs more than mass media o Provides better results than mass media  Telemarketing involves using the telephone to sell directly to consumers and business customers. o Outbound telephone marketing sells directly to consumers and businesses. o Inbound telephone marketing uses toll-free numbers to receive orders from television and print ads, direct mail, and catalogs  Direct-response television marketing includes the following: o 60 to 120 second advertisements that describe products or give customers a toll-free number or website for ordering o 30-minute infomercials such as home shopping channels  Irritation includes annoying and offending customers.  Unfairness includes taking unfair advantage of impulsive or less-sophisticated buyers.  Deception includes “heat merchants” who design mailers and write copy designed to mislead consumers.  Fraud includes identity theft and financial scams Susan Fant Chapter 18: Creative Competitive Advantage  Competitive advantages require delivering more value and satisfaction to target consumers than competitors.  Competitive marketing strategies are how companies analyze their competitors and develop value-based strategies for profitable customer relationships  Competitor analysis is the process of identifying, assessing, and selecting key competitors   Customer value analysis determines the benefits that target customers’ value and how customers rate the relative value of various competitors’ offers. o Identification of major attributes that customers value and the importance of these values o Assessment of the company’s and competitors’ performance on the valued attributes  Entrepreneurial marketing involves visualizing an opportunity and constructing and implementing flexible strategies.  Formulated marketing involves developing formal marketing strategies and following them closely.  Intrepreneurial marketing involves the attempt to reestablish an internal entrepreneurial spirit and refresh marketing strategies and approaches  Differentiation strategy: o A company concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader.  Focus strategy: o A company focuses its effort on serving few market segments well rather than going after the whole market  Operational excellence refers to a company providing value by leading its industry in price and convenience by reducing costs and creating a lean and efficient value delivery system  Customer intimacy refers to a company providing superior value by segmenting markets and tailoring products or services to match the needs of the targeted customers  Product leadership refers to a company providing superior value by offering a continuous stream of leading-edge products or services. Product leaders are open to new ideas and solutions and bring them quickly to the market Susan Fant   Protect current market by: o Fixing or preventing weaknesses that provide opportunities to competitors o Maintaining consistent prices that provide value o Keeping strong customer relationships o Promoting continuous innovation  Expand market share by: o Increasing profitability with increasing market share in served markets o Producing high-quality products o Creating good service experiences o Building close relationships  Challenge the leader with an aggressive bid for more market share.  Second mover advantage: Challenger observes what has made the leader successful and improves on it  Competitor-centered company spends most of its time tracking competitors’ moves and market shares and trying to find ways to counter them. o An advantage is that the company is a fighter. o A disadvantage is that the company is reactive  A customer-centered company spends most of its time focusing on customer developments in designing strategies 


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