MKT 3013 Principles of Marketing EXAM 4 STUDY GUIDE
MKT 3013 Principles of Marketing EXAM 4 STUDY GUIDE MKT 3013
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This 12 page Study Guide was uploaded by EMOJI on Monday September 12, 2016. The Study Guide belongs to MKT 3013 at University of Oklahoma taught by Pravin Nath in Spring 2016. Since its upload, it has received 8 views. For similar materials see Intro to Marketing in Business at University of Oklahoma.
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Date Created: 09/12/16
Chapters 17, 18, 20 and 21 Ch17 Integrated Marketing Communications and Direct Marketing Key terms: Promotional mix. The combination of one or more of these communication tools. All of these tools can be used to (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product. field of experience is a mutually shared understanding and knowledge that a sender and receiver apply to a message so that it can be communicated effectively. Response is the impact the message had on the receiver's knowledge, attitudes, or behaviors. (E.g., Desired response: purchase of advertised product) Feedback is the sender's interpretation of the response and indicates whether the message was decoded and understood as intended. Noise includes extraneous factors that can work against effective communication by distorting a message or the feedback received. (Examples: printing mistake that obscures meaning of ad, using words or pictures that don’t communicate message clearly, salesperson’s message not understood b/c of communication style, slang, etc.) What is IMC? Integrated marketing communications (IMC): the concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal 1 selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences. What are the various promotional or communication elements available to a firm? What are the some of the key advantages and disadvantages of each? What factors influence the choice of elements as part of a campaign? Communication is the process of conveying a message to others, and it requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding source may be a company or person who has information to convey. Message: The information sent by a source to a receiver.(description of a product, description of product benefits, etc.) channel of communication The means of conveying a message to receivers. (such as a salesperson, advertising media, or public relations tools.) Receivers Consumers who read, hear, or see the message sent by a source in the communication process. Encoding is the process of having the sender transform an idea into a set of symbols. (Symbols: Text, photographs, video images, etc. E.g., using combination of words and images to convey a product’s benefits) Decoding is the reverse, or the process of having the receiver take a set of symbols, the message, and transform the symbols into an idea.(Decoding is performed by receivers according to their own frame of reference: their attitudes, values, and beliefs) How is a promotional budget set? What are the advantages/disadvantages of each approach? Advertising is any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. personal selling, which is the twoway flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. Public relations is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. 2 Publicity is a nonpersonal, indirectly paid presentation of an organization, product, or service. It can take the form of a news story, editorial, or product announcement. Sales promotion, a shortterm inducement of value offered to arouse interest in buying a product or service. push strategy, directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.(channel) Goal: Stimulate consumer demand pull strategy by directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. Goal: Get channel members to push product to their customers Direct marketing, uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.(E.g., facetoface selling, direct mail, catalogs, telephone solicitations) Direct orders are the result of offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. Lead generation is the result of an offer designed to generate interest in a product or service and a request for additional information. traffic generation is the outcome of an offer designed to motivate people to visit a business. What is hierarchy of effects? The promotion decision process: hierarchy of effects, which is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action (either trial or adoption of the product). • Awareness—the consumer's ability to recognize and remember the product or brand name. • Interest—an increase in the consumer's desire to learn about some of the features of the product or brand. • Evaluation—the consumer's appraisal of the product or brand on important attributes. • Trial—the consumer's actual first purchase and use of the product or brand. • Adoption—through a favorable experience on the first trial, the consumer's repeated purchase and use of the product or brand. Promotion objectives should: (1) be designed for a welldefined target audience; (2) be measurable; and (3) cover a specified time period. 1. percentage of sales budgeting approach, funds are allocated to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. 2. competitive parity budgeting, is matching the competitor's absolute level of spending or the proportion per point of market share. 3. allyoucanafford budgeting, in which money is allocated to promotion only after all other budget items are covered. 3 4. objective and task budgeting, whereby the company (1) determines its promotion objectives, (2) outlines the tasks it will undertake to accomplish those objectives, and (3) determines the promotion cost of performing those tasks. What is the communication process? What are the various elements within this process? How are these applicable to the various promotional elements available to a firm? loop 循循 ch18 Advertising, sales promotion, and public relations key terms: advertising as any paid form of nonpersonal communication about an organization, a product, a service, or an idea by an identified sponsor. Publicity tools: methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements(PSAs). What are the different types of consumer advertisements? product advertisements Focused on selling a good or service, take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder. pioneering advertisements tell people what a product is, what it can do, and where it can be found. comparative advertising, which shows one brand's strengths relative to those of competitors. Reminder advertising is used to reinforce previous knowledge of a product. institutional advertisements is to build goodwill or an image for an organization rather than promote a specific good or service.(advocacy, pioneering institutional, competitive institutional, reminder institutional) What are the three kinds of appeals typically used in advertising? Fear appeals suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product. sex appeals suggest to the audience that the product will increase the attractiveness of the user. Humorous appeals imply either directly or subtly that the product is more fun or exciting than competitors' offerings. What are the types of media generally available? What are the advantages and disadvantages of each? 4 intimacy billboards Infomercials are programlength (30minute) advertisements that take an educational approach to communication with potential customers. What is meant by reach, rating, frequency, GRPs and CPM? (Maximizing Exposure) Reach is the number of different people or households exposed to an advertisement. rating—the percentage of households in a market that are tuned to a particular TV show or radio station. frequency, the average number of times a person in the target audience is exposed to a message or advertisement. Gross rating points (GRPs)When reach (expressed as a percentage of the total market) is multiplied by frequency, an advertiser will obtain a commonly used reference number. Cost per thousand (CPM) refers to the cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000).(minimizing cost) What are the different types of scheduling for advertising and when are they used? Continuous (steady) schedule. When seasonal factors are unimportant, advertising is run at a continuous or steady schedule throughout the year. 5 Flighting (intermittent) schedule. Periods of advertising are scheduled between periods of no advertising to reflect seasonal demand. Pulse (burst) schedule. A flighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion, or introduction of a new product. What are the ways in which posttesting is done for advertising? Executing The Advertising Program: To determine whether the advertisement communicates the intended message or to select among alternative versions of the advertisement, pretests are conducted before the advertisements are placed in any medium. Portfolio tests are used to test copy alternatives. Jury tests involve showing the ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention, and how attractive they thought it was. Theater testing is the most sophisticated form of pretesting. Fullservice agency provides the most complete range of services, including market research, media selection, copy development, artwork, and production. limitedservice agencies specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media (media agencies), or providing Internet services (Internet agencies). Inhouse agencies made up of the company's own advertising staff may provide full services or a limited range of services. Assessing The Advertising Program: posttests after it has been shown to the target audience to determine whether it accomplished its intended purpose. Aided recall to determine the percentage of those who (1) remember seeing a specific ad (noted), (2) saw or read any part of the ad identifying the product or brand (seenassociated), (3) read any part of the ad's copy (read some), and (4) read at least half of the ad (read most). Unaided recall approach involves asking respondents a question such as, “What ads do you remember seeing yesterday?” without any prompting to determine whether they saw or heard advertising messages. Attitude tests involve asking respondents questions to measure changes in their attitudes after an advertising campaign. Inquiry tests involve offering additional product information, product samples, or premiums to an ad's readers or viewers. Sales tests involve studies such as controlled experiments (e.g., using radio ads in one market and newspaper ads in another and comparing the results) and consumer purchase tests (measuring retail sales that result from a given advertising campaign). What is sales promotion? Sales promotion is a shortterm inducement of value offered to arouse interest in buying a good or service. (Examples: coupons, rebates, samples, sweepstakes) Consumeroriented sales promotions, or simply consumer promotions, are sales tools used to support a company's advertising and personal selling. Tradeoriented sales promotions, or simply trade promotions, are sales tools used to support a company's advertising and personal selling directed to wholesalers, retailers, or distributors. (1) allowances and discounts, (2) cooperative advertising, and (3) training of distributors' salesforces. 6 cooperative advertising. These are programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products. What is the difference between a consumer and a trade sales promotion? How are these related to pull and a push promotion strategies? What is product placement? product placement, involves the use of a brandname product in a movie, television show, video game, or commercial for another product. What is public relations? Publicity? Public relations is a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services. (Examples: lobbying efforts, annual reports, press conferences, special events) Publicity is a nonpersonal, indirectly paid presentation of an organization, product, or service. It can take the form of a news story, editorial, or product announcement.(Examples: news releases, press conferences, public service announcements) • Difference between publicity and advertising: indirectly paid – company does not pay directly for space in a mass medium but must pay to support a PR staff • Advantage: credibility • Disadvantage: lack of control 7 What is the sales process and what are stages in this process? Ch20 Personal Selling and Sales Management Key terms: relationship selling, the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. partnership selling, sometimes called enterprise selling, buyers and sellers combine their expertise and resources to create customized solutions; commit to joint planning; and share customer, competitive, and company information for their mutual benefit and, ultimately, the benefit of the customer. order taker processes routine orders or reorders for products that were already sold by the company. order getter sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service. How does one overcome objections in personal selling? Personal selling involves the twoway flow of communication between a buyer and seller, often in a facetoface encounter, designed to influence a person's or group's purchase decision. (Advantages: salesperson controls to whom presentation is made, flexibility to modify message Disadvantages: inconsistent across different salespeople, high costs) What are the functions of sales management? Sales management involves planning the selling program and implementing and evaluating the personal selling effort of the firm. The tasks involved in managing personal selling include setting objectives; organizing the salesforce; recruiting, selecting, training, and compensating salespeople; and evaluating the performance of individual salespeople. What are the ways in which a salesforce can be organized? What are advantages and disadvantages of each? personal selling process consists of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) followup 8 stimulusresponse presentation format assumes that given the appropriate stimulus by a salesperson, the prospect will buy.(Suggestive Selling) formula selling presentation format is based on the view that a presentation consists of information that must be provided in an accurate, thorough, and stepbystep manner to inform the prospect. (Canned Sales Presentation) needsatisfaction presentation format emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers. Adaptive selling involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. Consultative selling focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. What are the forms of salesforce compensation? What are the advantages and disadvantages of each? Research on salesperson motivation suggests that (1) a clear job description, (2) effective sales management practices, (3) a personal need for achievement, and (4) proper compensation, incentives, or rewards will produce a motivated salesperson. A straight salary plan is easy to administer and gives management a large measure of control over how salespeople allocate their efforts. However, it provides little incentive to expand sales volume. This plan is used when salespeople engage in many nonselling activities, such as account or customer servicing. A straight commission plan provides the maximum amount of selling incentive but can discourage salespeople from providing customer service. This plan is common when nonselling activities are minimal. Combination plans are most preferred by salespeople and attempt to build on the advantages of salary and commission plans while reducing the potential shortcomings of each. A majority of companies use combination plans today. What are the types of sales objectives? How are salespersons evaluated? 9 Selling objectives can be output related and focus on dollar or unit sales volume, number of new customers added, or profit. Alternatively, they can be input related and emphasize the number of sales calls and selling expenses. Output and inputrelated objectives are used for the salesforce as a whole and for each salesperson. A third type of objective that is behaviorally related is typically specific for each salesperson and includes his or her product knowledge, customer service satisfaction ratings, and selling and communication skills. Sales management consists of three interrelated functions: (1) sales plan formulation, (2) sales plan implementation, and (3) salesforce evaluation sales plan is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. Sales plan formulation involves three tasks: (1) setting objectives, (2) organizing the salesforce, and (3) developing account management policies. key account management—the practice of using team selling to focus on important customers so as to build mutually beneficial, longterm, cooperative relationships. workload method. This formulabased method integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size. • NS = Number of salespeople • NC = Number of customers • CF = Call frequency necessary to service a customer each year • CL = Length of an average call • AST = Average amount of selling time available per year account management policies specifying whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. Emotional intelligence is the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis. sales quota contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period. Salesforce automation (SFA) is the use of these technologies to make the sales function more effective and efficient. What is team selling? team selling, the practice of using an entire team of professionals in selling to and servicing major customers. In conference selling, a salesperson and other company resource people meet with buyers to discuss problems and opportunities. In seminar selling , a company team conducts an educational program for a customer's technical staff, describing stateoftheart developments. 10 Ch21 Implementing Interactive and Multichannel Marketing Key terms: Collaborative filtering is a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. permission marketing—the solicitation of a consumer's consent (called optin) to receive email and advertising based on personal data supplied by the consumer. Online consumers are the subsegment of all Internet users who employ this technology to research products and services and make purchases customerization—the growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer. web communities—websites that allow people to congregate online and exchange views on topics of common interest. communications can take the form of electronic junk mail or unsolicited email, called spam. The likelihood of lower online prices has given rise to a consumer practice called showrooming. dynamic pricing, the practice of changing prices for products and services in real time in response to supply and demand conditions. Behavioral targeting uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising. crosschannel shopper is an online consumer who researches products online and then purchases them at a retail store. What is Interactive Marketing? What are Choiceboards and personalization systems? What is: Web 2.0? a blog? a virtual community? Viral marketing? the 8second rule? What are cookies? Interactive marketing involves twoway buyer–seller electronic communication in a computer mediated environment in which the buyer controls the kind and amount of information received from the seller. choiceboard is an interactive, Internetenabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options. Personalization is the consumerinitiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences. Viral marketing is an Internetenabled promotional strategy that encourages individuals to forward marketerinitiated messages to others via email, social networking websites, and blogs. eightsecond rule: Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds. cookies are computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website. What are seven website elements that marketers need to consider for customer experience? 11 12
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