MKT 300 Study Guide for Test 3
MKT 300 Study Guide for Test 3 MKT 300
Popular in Marketing
Popular in Business
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.
Reviews for MKT 300 Study Guide for Test 3
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
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
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'