Marketing Management Exam 2 Flashcards

Has largest market share

Leads in price changes, new product introductions, distribution coverage and promotional intensity

40%

Market group that attacks the leader and other competitors in an aggressive bid for further market share

30%

Market group that is willing to maintain its share and chooses not to rock the boat or attack the market leader

20%

Market group that serves small segments larger firms don't reach

10%

Expand the total market

Defend market share

Mobile defense

Contraction defense

New customers - new users and new uses

More usage - increase amount, level, or frequency used

Additional opportunities to use the brand

New ways to use the brand

Proactive marketing

Defensive marketing

Responsive marketing

Anticipative marketing

Creative marketing

Proactive marketing strategy

Finds stated need and fills it

Proactive marketing strategy

Looks ahead to needs customers may have in the near future

Proactive marketing strategy

Discovers solutions customers did not ask for but to which they enthusiastically respond

Market driving firms

Position defense

Flank defense

Preemptive defense

Counteroffensive defense

Mobile defense

Contraction defense

Defensive marketing strategy

Occupying the most desirable market space in consumer's minds, making the brand almost impregnable

Defensive marketing strategy

Erecting outposts to protect a weak front or support a possible counterattack

Defensive marketing strategy

Attack first in order to keep everyone off balance

Announce a stream of new products in advance

Defensive marketing strategy

The market leader can meet the attacker frontally and hit its flank or launch movements forcing challengers to pull back

Exercise of economic or political clout

Defensive marketing strategy

The leader stretches its domain over new territories through marketing broadening and diversification

Defensive marketing strategy

Market leaders give up weaker markets and reassign resources to stronger ones

Antitrust action

Economic cost

Pursuing the wrong marketing-mix strategy

Effect of increased market share on actual and perceived quality

Attack the market leader

Attack firms its own size that are not doing the job and are underfinanced

Attack small local and region firms

Frontal attack

Flank attack

Encirclement attack

Bypass attack

Guerrilla attacks

Market challenger attack strategy

Attacker matches its opponent's product, advertising, price, and distribution

Greater resources will win

Market challenger attack strategy

Concentrate your strength's on the enemy's weak spots

Geographic attack

Serve uncovered market needs attack

Market challenger attack strategy

Attempts to capture a wide slice of territory by launching a grand offensive on several fronts

Challenger must command significant resources

Market challenger attack strategy

Bypassing the enemy altogether to attack easier markets

Diversifying into unrelated products, new geographical regions, new technologies

Market challenger attack strategy

Small intermittent attacks, conventional and unconventional designed to harass the opponent and eventually secure permanent footholds

Selective price cuts, intense promotion, legal actions

Counterfeiter

Cloner

Imitator

Adapter

Market follower strategy

Duplicates leader's products and packages and sells it on the black market

Market follower strategy

Emulates the leaders products, name, and packaging with slight variations

Market follower strategy

Copies some things from the leader but differentiates on packaging, advertising, pricing, or location

Market follower strategy

Takes the leaders products and adapts or improves them

End user specialist

Vertical level secialist

Specific customer specialist

Product line specialist

Product feature specialist

Quality/Price specialist

Service specialist

Channel specialist

Introduction

Growth

Maturity

Decline

Sales grow rapidly when the product is first introduced and fall into a petrified level sustained by late adopters buying for first time and early adopters replacing it

Small kitchen appliances

Aggressively promote new product, when sales decline, another promotion push occurs

Pharmaceutical drugs

Product life cycle

Sales pass through a succession of life cycles based on the discovery of new product characteristics, uses, or users

Nylon

A basic and distinctive mode of expression

Currently accepted or popular style in a given field

Fashions that come quickly into public view, are adopted with great zeal, peak early, and decline very fast.

Inform potential consumers

Induce product trial

Secure distribution in retail outlets

First to deveop patents in a new product category

First to develop a working product model

First to sell in the new product category

Improve product quality and add new features

Add new models and flanker products

Enters new market segments

Increases distribution coverage and enters new distribution channels

Shifts from awareness and trial promotion to loyalty

Lowers prices to attract the next layer of price sensitive buyers

Market modification

Product modification

Marketing program modification

Harvesting

Divesting

Marketing strategy for decline stage of product life cycle

Gradually reducing the product cost while trying to remain profitable

Marketing strategy for decline stage of product life cycle

Selling the product, idea, distribution channel to another firm

Explore the upside of increasing investment

Get closer to customers

Review budget allocations

Put forth the most compelling value proposition

Fine tune brand and product offerings

Core benefit

Basic product

Expected product

Augmented product

Potential product

Anything that can be offered to a market to satisfy a want or need

The service or benefit the customer is really buying

Hotel guest buying rest and sleep

Drill buyer is purchasing holes

A core benefit is turned into a product

Hotel room includes a bed, bathroom, towels, desk, dressers, etc

A set of attributes and conditions the buyer normally expect when they purchase this product

Hotel guests expect clean bed, fresh towels, working lamps, etc

A product that exceeds customers expectations

Brand positioning and competition occur here

Encompasses all the possible augmentations and transformations the product or offering might undergo in the future

The way the user performs the task of getting and using products and services

Durability and tangibility

Consumer goods

Industrial goods

Nondurable goods

Durable goods

Services

Tangible goods normally consumed in one or a few uses

Beer, cheese, shampoo

Tangible goods that normally survive many uses

Washing machine, car, clothing

Intangible, inseparable, variable and perishable products that normally require more quality control, supplier credibility, and adaptability.

Haircuts, legal advice, appliance repairs

Convenience goods

Shopping goods

Specialty goods

Unsought goods

Purchased frequently, immediately, and with minimal effort

Soft drinks, soaps, etc

Impulse goods

Emergency goods

Consumers compare on bases such as suitability, quality, price, and style

Homogenous - differ by price

Heterogeneous - differ by quality

Have unique characteristics or brad identifications for which enough buyers are willing to make a special purchasing effort

Cars, stereo equipment, homes

Goods the consumer does not now about or normally think of buying

Smoke detectors, cemetery plots

Materials and parts

Capital items

Supplies and business services

Goods that enter the manufacturers product completely

Raw materials

Manufactured materials

Farm products - wheat, cotton, livestock, fruits

Natural products - fish, lumber, iron ore

Component materials - iron, yarn, cement

Component parts - small motors, tires, castings

Long lasting goods that facilitate developing or managing the finished products

Installations

Equipment

Buildings, factories, heavy equipment, machines, computer systems

Portable factory equipment and tools and office equipment

Don't become part of finished product

Short term goods and services that facilitate developing or managing the finished product

Maintenance and repair items

Operating supplies

Business advisory services

Paint, nails, brooms, window cleaning, copier repair

Lubricants, coal, writing paper

Legal, management consulting, advertising

Form

Featuers

Customization

Performance quality

Conformance quality

Durability

Reliability

Repairability

Style

Ordering ease

Delivery

Installation

Customer training

Customer consulting

Maintenance and repair

Returns

The totality of features that affect how a product looks, feels, and functions to a consumer

Need family

Product family

Product class

Product line

Product type

Item

Product hierarchy

The core need that underlies the existence of a product family

Example - security

Product hierarchy

All the product classes that can satisfy a core need

Example - savings and income

Product hierarchy

A group of products within the product family recognized a having a certain functional coherence

Example - financial instruments

Product hierarchy

A group of products within a product class that are closely related because they perform a similar function, are sold to same customer groups, are marketed through the same channels, or fall within given price range

Example - life insurance

Product hierarchy

A group of items within a product line that share one of several possible forms of the product

Example - term life insurance

Product hierarchy

A distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute.

Example - Prudential renewable term life insurance

A group of diverse but related items that function in a compatible manner

Example - iPod product selections

The set of all products and items a particular seller offers for sale

Width

Length

Depth

Consistency

Part of product mix

How many different product lines the company carries

Part of product mix

The total number of items in a mix

Part of product mix

How many variants are offered of each product in the line

Part of product mix

How closely related the various product lines are in end use, production requirements, distribution channels, or some other ways

Shows which competitors' items are competing against company X's products

Shows possible locations for new items

Identifies market segment

Line stretching

Line filling

Line modernization, featuring, and pruning

Down market stretch

Up market stretch

Two way stretch

When a company lengthens its product line beyond its current range

Product line stretching strategy

Introducing lower priced line

Product line stretching strategy

Introducing a premium product line in the high end market

Product line stretching strategy

Introducing both lower and higher priced product lines

Lengthening a product line by adding more items within the present range

Product line pricing

Optional feature pricing

Captive product pricing

Two part pricing

By product pricing

Product bundling pricing

The firm searches fro a set of prices that maximizes profits on the total mix, not individual products

Products in a line with established quality and price differences

Men's suits for $300, $600, and $900

Companies offering optional products, features, and services with their main product

Restaurants price food low and beverages high

Products that require the use of ancillary or captive products

Low initial razor prices, high prices for replacement blade cartridges

A fixed fee plus a variable usage fee

The selling of products that are byproducts of the original product

Meats, petroleum, etc

Pure bundling - firm offers its products only as a bundle

Mixed bundling - firm offers products both individually and as a bundle

Two or more well known brands are combined into a joint product or marketed together in some fashion

Special case of co-branding

Creates brand equity for materials, components, r parts that are necessarily contained within other branded products

GORETEX water resistant fibers, Scotchgard fabrics

All the activities of designing and producing the container for the product

Identifies the product

Grades the product

Describes the product

Promotes the product

Formal statements of expected product performance by the manufacturer

Any act or performance one party can offer to another that is essentially intangible and does not result int he ownership of anything

Pure tangible good

Tangible good with accompanying services

Hybrid

Major service with accompanying minor goods and services

Pure service

Service mix category

Soap, toothpaste, salt

No accompanying services

Service mix category

Car, computer, cell phone

Service mix category

Equal parts goods and services

Restaurant meal

Service mix category

Air travel

Service mix category

Purely intangible service

Babysitting, psychotherapy, massage

Goods with characteristics the buyer can evaluate before the purchase

Clothing, jewelry, furniture

Characteristics the buyer can evaluate after the purchase

Vacation, haircuts

Characteristics the buyer normally finds hard to evaluate even after consumption

Auto repair, medical diagnosis

Intangibility

Inseparability

Variability

Perishability

Services characteristic

Services cannot be seen, tasted, felt, heard or smelled before they are bought

Position by using place, people, equipment, communication material, symbols and price

Services characteristic

Services are typically produced and consumed simultaneously

Not like physical goods which are manufactured, inventoried, distributed, and then consumed

Services characteristic

The quality of services depends on who provides them, when and where, and to whom, which makes them highly variable

Invest in good hiring and training procedures

Standardize the service performance process

Monitor customer satisfaction

Services characteristic

Services cannot be stored

Demand strategies - differential pricing, nonpeak demand, complementary services, reservation systems

Supply strategies - part-time employees, peak time efficiency, increased customer participation, shared services, facilities for future expansion

Redesign processes and redefine customer roles to simplify service encounters

Incorporate the right technology to aid employees and customers

Create high performance customers by enhancing their role clarity, motivation, and ability

Encourage "customer citizenship" so customers help customers

External marketing

Internal marketing

Interactive marketing

Normal work of preparing, pricing, distributing, and promoting

Training and motivating employees to serve customers wel

Describes the employees' skill in serving the client

Strategic concept

Top management commitment

High standards

Profit tiers

Monitoring systems

Satisfying customer complaints

Highlights the main requirements for delivering high service

Identifies five gaps that cause unsuccessful delivery

Gap between consumer expectation and management perception

Gap between management perception and service quality specification

Gap between service quality specification and service delivery

Gap between service delivery and external communications

Gap between perceived service and expected service

Reliability

Responsiveness

Assurance

Empathy

Tangibles

Failure frequency

Downtime

Out of pocket costs

Reference prices

Price quality inferences

Price endings

Comparing an observed price to an internal reference price consumers remember or an external frame of reference such as a posted "regular retail price"

Select the pricing objective

Determining demand

Estimating costs

Analyzing competitors' costs, prices, and offers

Selecting a pricing method

Selecting the final price

Survival

Maximum current profit

Maximum market share

Maximum market skimming

Product quality leadership

Companies who are plagued with overcapacity, intense competition, changing consumer wants

Estimate demand and costs and set the price that maximizes profit

Higher sales volume is believed to lead to lower unit costs

Market penetration pricing - set the lowest price to sell high volumes

Price sensitive market

Production and distribution costs fall with accumulated experience

Low price discourages competition

Prices start high and slowly drop over time

High current demands

Unit costs of producing a small volume are high enough to cancel the advantage of charging what the traffic will bear

High initial prices does not attract competitors

High price communicates the image of superior product

Company that aims to be the product quality leader

Can charge premiums

Price sensitivity

Estimating demand curves

Price elasticity of demand

Surveys

Price experiments

Statistical analysis

How responsive or elastic demand is to a change in price

Inelastic - demand hardly changes with large change in price

Elastic - demand considerably changes with change in price

A range of prices in which price changes have no effect on demand

Decline in average cost with accumulated production experience

The concentrated effort by designers, engineers, and purchasing agents to reduce costs

Markup pricing

Target return pricing

Perceived value pricing

Value pricing

Going rate pricing

Auction type pricing

Markup price = unit cost / (1 - desired markup %)

20% markup

16 / (1 - 0.2) = 20

Firm sets a price that yields its target rate of return

Target return price =

unit cost + ((desired return X invested capital) / unit sales)

= $16 + ((0.20 X $1,000,000) / 50,000) = $20

Total revenue curve crosses the total cost curve

Break even volume =

fixed cost / (price - variable cost)

= 300,000 / (20 - 10) = 30,000

Basing a price on the customer's perceived value

Based on buyer's image of product performance, channel deliverables, warranty quality, customer support, etc

Charge a fairly low price for high quality offers to win loyal customers

Charging a constant low price with little or no price promotions or specials sales

Retailer charges high prices on an everyday basis but runs frequent promotions with prices temporarily lower than everyday low prices

Firm basis its prices largely on competitor's prices

English auction - one seller, many buyers increasing bids

Dutch auction - one buyer, many sellers decreasing bids

Sealed bid auctions - allow only one bid per supplier, can't know what other suppliers bid

Buyers that offer other items in payment

Barter

Compensation deal

Buyback arrangement

Offset

Buyer and seller directly exchange goods

No money involved

Seller receives some percentage of the payment in cash, the rest in products

Seller sells plant, equipment, or technology to another country and agrees to accept the products produced with that equipment as partial payment.

The seller receives full payment in cash but agrees to spend a substantial amount of money in the location in which it was produced

Loss leader pricing

Special event pricing

Special customer pricing

Cash rebates

Low interest financing

Longer payment terms

Warranties and service contracts

Psychological discounting

Supermarkets drop prices on well known brands to stimulate additional store traffic

Customer segment pricing

Product form pricing

Image pricing

Channel pricing

Location pricing

Time pricing

Selling a product or service at two or more prices that do not reflect a proportional difference in costs

First degree - separate prices to customers based on the intensity of demand

Second degree - lower prices to customers who buy in large volumes

Third degree - seller charges different amounts to different classes of buyers

Different customer groups pay different prices for the same product

Different versions of the product are priced differently but not proportionally to cost

Different prices based on image differenes

Perfume in different bottles

Sets of interdependent organizations participating in the process of making a product or service available for use or consumption

The particular set of marketing channels a firm employs

Wholesalers and retailers who buy, take title to, and resell merchandise

Brokers, manufacturers' representatives, sales agents who search for customers and may negotiate on the producer's behalf but do not take title of the product

Transportation companies, warehouses, banks, ad agencies, who assist in the distribution process but neither take title to goods nor negotiate purchases

Uses manufacturer's sales force, trade promotion money to induce intermediaries to carry, promote, and sell the product to end users

Low brand loyalty

Manufacturer uses advertising, promotion ad other forms of communication to persuade consumers to demand the product from intermediaries, this inducing the intermediaries to order it

High brand loyalty

When a single firm uses two or more marketing channels to reach customer segments

The company first thinks of the target market and then designs the supply chain backward from that point

A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings

Firm's suppliers, suppliers' suppliers, immediate customers, end users

Manage cash flow, manufacturing, human resources, purchasing and other major functions within a unified framework

Direct marketing channel

A manufacturer selling directly to the final customer

A manufacturer selling to a distributor selling to the final customer

A manufacturer negotiating with a representative selling to a distributor selling to the final customer

A manufacturer selling to a wholesaler selling to a retailer selling to the final customer

Intermediaries that act as small scale whole-salers

Meat packing industry

Exclusive distribution

Selective distribution

Intensive distribution

Severely limiting the number of intermediares

When producer wants to maintain control over service level and outputs

Relies on only some of the intermediaries willing to carry a particular product

Can gain adequate market coverage

Places goods or services in as many outlets as possible

Snack foods, soft drinks, newspapers

Price policy

Conditions of sale

Distributors' territorial rights

Mutual services and responsibilities

the ability to alter channel members' behavior so they take actions they would not have taken otherwise

Coercive power

Reward power

Legitimate power

Expert power

Referent power

Manufacturer threatens to withdraw a resource or terminate a relationship

Manufacturer offers intermediaries an extra benefit for performing specific acts or functions

Manufacturer requests a behavior that is warranted under a contract

The manufacturer has special knowledge the intermediary values

Manufacturer is so highly respected that intermediaries are proud to be associated with it

Demand side management - collaborative practices to stimulate demand

Supply side management - collaborative practices to optimize supply

Enablers and integrators - collaborative info tech and process improvement tools to support joint activities

Corporate vertical marketing system

Administered vertical marketing system

Contractual vertical marketing system

Consists of an independent producer, wholesaler, and retailer

When the producer, wholesaler, and retailer act as a unified system

Combines successive stages of production and distribution under single ownership

Sears obtains goods from subsidiaries it owns

Coordinates successive stages of production and distribution through the size and power of one of the members

Manufacturers of dominant brands can secure strong trade cooperation and support from resellers

Building a planned, professionally managed, vertical marketing system that meets the needs of both manufacturer and distributer

Independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone

Wholesaler sponsored voluntary chains

Retailer cooperatives

Franchise orgainizations

Wholesalers organize voluntary chains of independent retailers to help standardize their selling practices and achieve buying economies

Retailers take the initiate to organize a new business entity to carry on wholesaling and possibly some production

A franchisor might link several successive stages in the production distribution process

Two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity

Channel in which the strategies and tactics of selling through one channel reflect the strategies and tactics of selling through one or more other channels

When one channel member's actions prevent another channel from achieving its goal

Horizontal channel conflict - between members at the same level

Vertical channel conflict - between different levels of the channel

Multichannel conflict - when manufacturer has established two or more channels that sell to the same market

Goal incompatibility

Unclear roles and rights

Differences in perception

Intermediaries' dependence on the manufacturer

Strategic justification

Dual compensation

Superordinate goals

Employee exchange

Joint memberships

Co-option

Diplomacy, mediation, and arbitration

Legal recourse

Strategy for managing channel conflict

Explaining that channels do not compete as much as they think

Strategy for managing channel conflict

Pays existing channels for sales made through new channels

Strategy for managing channel conflict

Channel members come to an agreement on the fundamental goal they are jointly seeking

Strategy for managing channel conflict

Exchange persons between two or more channels

Strategy for managing channel conflict

Marketers can encourage joint memberships in trade associations

Strategy for managing channel conflict

An effort by one organization to win the support of the leaders of another by including them in advisory councils, boards of directions, etc

Strategy for managing channel conflict

Diplomacy - each side sends a person to meet and resolve conflict

Mediation - relies on a neutral third party to reconcile both parties' interests

Arbitration - two parties present their arguments to a third party who makes a decision

Strategy for managing channel conflict

A channel partner may choose to file a lawsuit

When producers of strong brands sell to dealers only if they will take some or all of the rest of the product line

Tying agreements - are not illegal

Using a website to transact or facilitate the sale of products or services online

Mobile phone commerce

All the activities in selling goods or services directly to final consumers for personal, non business use

Any business enterprise whose sales volume cones primarily from retailing

Store retailers

Nonstore retailing

Corporate retailing and franchising

Self service

Self selection

Limited service

Full service

Cornerstone of all discount operations

Customer carries out own locate, compare, select activities

Customers find their own goods, but they can ask for assistance

Retailers that carry shopping goods and services

Customers need more information and assistance

Salespeople are ready to assist in every phase of the locate, compare, select process

Direct selling

Direct marketing

Automatic vending

Buying service

Door to door sales, at home party sales

Avon, Tupperware

Roots in direct mail and catalog marketing

Telemarketing - 1-800-FLOWERS

Television direct response marketing - QVC

Catalog marketing - Land's End catalogs

Electronic shopping - Amazon

Vending machines

Storeless retailer serving a specific clientele

Employees of large organizations who are entitled to buy from a list of retailers that have agreed to discount for members

Tightly knit group of enterprises who's systemic operations are planned, directed, and controlled by the franchisor

Franchisor owns trade mark and licenses it to franchisee

Franchisee pays to be a part of the system

Franchisor provides system for doing business

Target market

Product assortment

Procurement

Prices

Services

Store atmosphere

Store activities and experiences

Communications

Location

Used to measure a product's handling costs from the time it reaches the warehouse until a customer buys it in the retail store

Receiving, moving to storage, paperwork, checking, loading, etc)

A brand that retailers and wholesalers develop

Unbranded, plainly packaged, less expensive versions of common products such as spaghetti, paper towels, canned peaches

Standard or lower quality

Low price due to low cost labeling and packaging, minimal advertising

A fee charged by retailers for accepting a new brand, to cover the cost of listing and stocking it

All the activities in selling goods or services to those who buy for resale or business use

Also called distributors

Selling and promoting

Buying and assortment building

Bulk breaking

Warehousing

Transportation

Financing

Risk bearing

Market information

Management services and counseling

Merchant wholesalers

Full service wholesalers

Limited service wholesalers

Brokers and agents

Manufacturers' and retailers' branches and offices

Specialized wholesalers

Independently owned business that take title to the merchandise they handle

Carry stock, maintain a sales force, offer credit, make deliveries, provide management assistance

Cash and carry - sell limited line of fast moving goods for cash

Truck - sell and deliver a limited line of semi-perishable goods

Drop shippers - serve bulk industries, assume title and risk

Rack jobbers - serve grocery retailers in nonfood items

Producers' cooperatives - assemble farm produce to sell to markets

Mail order - send catalogs to customers

Facilitate buying and selling on commission

Brokers - bring buyers and sellers together and assist with negotiations

Agents - represent buyers and sellers in negotiations

Starts before physical distribution

Strategically procuring the right inputs, converting the efficiently into finished products, and dispatching them to the final destinations

Planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use to meet customer requirements at a profit

Materials management, material flow systems, and physical distribution aided by information technology

Producing goods with minimal waste of time, materials, and money

How to handle order processing

How should we locate stock or warehouse goods

How much inventory should we hold

How should we transport materials and products

Putting the goods in boxes or trailers that are easy to transfer between two transportation methods

The means by which firms attempt to inform, persuade, and remind consumers - directly or indirectly - about the products and brands they sell

Advertising

Sales promotion

Events and experiences

Public relations and publicity

Direct marketing

Interactive marketing

Word of mouth marketing

Personal selling

Part of the marketing communications mix

Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor

Print media

Broadcast media - radio, television

Network media - telephone, cable, satellite

Electronic media - videotape, CD, Web page

Display media - billboards, posters

Part of the marketing communications mix

A variety of short term incentives to encourage trial or purchase of a product or service

Consumer promotions - samples, coupones

Trade promotions - advertising and display allowances

Business and sales force promotions - contests for sales reps

Part of the marketing communications mix

Company sponsored activities and programs designed to create brand related interactions with consumers

Part of the marketing communications mix

Programs directed internally to employees of the company or externally to customers to promote or protect a company's image

Part of the marketing communications mix

Use of mail, email, telephone, etc to communicate directly with or solicit response from customers

Part of the marketing communications mix

Online activities and programs designed to engage customers

Part of the marketing communications mix

People to people oral, written, or electronic communication that relate to the experiences of buying or using a product

Part of the marketing communications mix

Face to face interaction with prospective purchasers

Sender

Receiver

Message

Media

Encoding

Decoding

Response

Feedack

Noise

AIDA model

Hierarchy of effects model

Innovation adoption model

Communications model

Buyers pass through cognitive, affective, and behavioral stages

Learn - feel - do

Do - feel - learn

Learn - do - feel

Attention

Interest

Desire

Action

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Awareness

Interest

Evaluation

Trial

Adoption

Exposure

Reception

Cognitive response

Attitutde

Intention

Behavior

Identify the target audience

Determine the communications objectives

Design the communications

Select the communications channels

Establish marketing communications budget

Category need

Brand awareness

Brand attitude

Brand purchase intention

Communications objective

Establishing a product or service category as necessary to remove or satisfy a perceived discrepancy between a current motivational state ad a desired motivational state

New to the world products

Communications objective

Fostering the consumer's ability to recognize or recall the brand within the category, in sufficient detail to make a purchase

Communications objective

Helping consumers evaluate the brand's perceived ability to meet a currently relevant need

Communications objective

Moving consumers to decide to purchase the brand or take purchase related action

The way marketers translate their messages into specific communication

Informational appeal

Transformational appeal

Creative communication strategy

Elaborates on product or service attributes or benefits

Problem solution ads

Product demonstration ads

Product comparison ads

Testimonials

Creative communication strategy

Elaborates on a nonproduct related benefit or image

What kind of person uses a brand

What kind of experiences results from using a brand

Positive (humor, love, pride) and negative appeals (fear, guilt, shame)

Expertise

Trustworthiness

Likabilty

Message source attribute

The specialized knowledge the communicator posses to back the claim

Message source attribute

How objective and honest the source is perceived to be

Message source attribute

Describes the source's attractiveness

Implies communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience

Let two or more persons communicate face to face or person to audience

Advocate channels - company salespeople contacting buyers

Expert channels - independent experts making statements

Social channels -neighbors, friends, family talking to target buyers

Earned media - unsolicited professional commentary

Media

Advertising

Sales promotions

Events and experiences

Public relations

Affordable method

Percentage of sales method

Competitive parity method

Objective and task method

Method of establishing marketing communications budget

Budget set at what the company thinks it can afford

Method of establishing marketing communications budget

Budget set at a certain percentage of current or anticipated sales or of the sale price

Method of establishing marketing communications budget

Budget set to what competitors spend

Method of establishing marketing communications budget

Develop communication budgets by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing them

Establish market share goal

Determine percentage of the market that should be reached

Determine the percentage of aware prospects that should be persuaded to try the brand

Determine the number of advertising impressions per 1 percent trial rate

Determine the number of gross rating points that would have to be purchased

Determine the necessary advertising budget on the basis of the average cost of buying a gross rating point

Pervasiveness

Amplified expressiveness

Control

Ability to be attention getting

Incentive

Invitation

High credibility

Ability to reach hard to find buyers

Dramatization

Relevant

Engaging

Implicit

Customized

Up to date

Interactive

Influential

Personal

Timely

Personal interaction

Cultivation

Response

Type of product market

Buyer readiness stage

Product life cycle stage

A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time

Cost effective way to disseminate messages, whether to build a brand preference or to educate people

Mission

Money

Message

Media

Measurement

A specific communications task and achievement level to be accomplished with a specific audience in a specific period of time

Informative advertising

Persuasive advertising

Reminder advertising

Reinforcement advertising

Advertising objective

Aims to create brand awareness and knowledge of new products or new features of existing products

Advertising objective

Aims to create liking, preference, conviction, and purchase of a product or service

Advertising objective

Aims to stimulate repeat purchase of products or services

Advertising objective

Aims to convince current purchasers that they made the right choice

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability

Message generation and evaluation

Creative development and execution

Legal and social issues

Elaboration of the positioning statement

Includes considerations such as key message, target audience, communications objectives, key brand benefits, supports for the brand promise and media

Television ads

Print ads

Radio ads

Reaches broad spectrum

Low cost per exposure

Ability to demonstrate product use

Brief

Clutter

High cost of production/placement

Detailed product information

Ability to communicate user imagery

Flexibility

Ability to segment

Passive medium

Clutter

Unable to demonstrate product use

Picture

Headline

Copy

Signature

Pervasive media

Flexibility

Targeted stations

Lack of visual images

Passive nature of audience

Finding the most cost effective media to deliver the desired number and type of exposures to the target audience

Find level of brand awareness required for trial rate

Find how many exposures are required to reach brand awareness level

Exposures are a product of reach, frequency, and impact

The number of different persons or households exposed to a particular media at least once during a specified time period

The number of times within the specified time period that an aver person is exposed to the message

The qualitative value of an exposure through a given medium

A food ad will have higher impact in Bon Appetit than in Fortune magazine

Also called gross rating points

E = Reach X Frequency

WE = Reach X Frequency X Impact

Out of home advertising

Billboards

Public spaces

Product placement - cabs, buses, benches, etc

Point of purchase - ads on shopping carts, aisles, shelves

Newspapers

Television

Direct mail

Radio

Magazines

Outdoor

Yellow pages

Newsletters

Brochures

Telephone

Internet

Relates to seasons and the business cycle

Calls for allocating advertising expenditures within a short period to obtain maximum impact

Continuity

Concentrated

Flighting - advertising then no advertising the advertising then no advertising

Pulsing - continuous low weight advertising with periods of heavier activity

The rate at which new buyers enter the market

Higher rate more continuous the advertising should be

The number of times the average buyer buys the product during the period

Higher the frequency the more continuous the advertising should be

The rate at which the buyer forgets the brand

The higher the rate the more continuous advertising should be

Communication effect research

Sales effect research

Method to evaluate advertising effectiveness

Copy testing

Seeks to determine whether an ad is communicated effectively

Method to evaluate advertising effectiveness

Historical approach - correlates past sales to past advertising expenditures

Experimental design - measure advertising's sales impact

Consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade

Offers an incentive to buy

Rebates, gifts to motivate purchase,

Price cuts, feature advertising, coupons

Samples

Coupons

Cash rebates

Price packs (cents off deals)

Premiums/gifts

Frequency programs

Prizes/contests

Patronage awards

Free trials

Product warranties

Tie in promotions

Cross promotions

Point of purchase displays and demonstrations

Price off - discount of list price

Allowance - amount offered in return for agreeing to feature products in some way

Free goods

Trade shows and conventions

Sales contests

Specialty advertising

Retailers buying a greater quantity during the deal period than they can immediately sell

Retailers buying more cases than needed in a region where the manufacturer offers a deal and shipping the surplus to stores in other regions

The time necessary to prepare the sales promotion program prior to launching it

Sales promotions

Begins with the promotional launch and ends when approximately 95 percent of the deal merchandise is in the hands of consumers

To identify with a particular target market or lifestyle

To increase salience of company or product name

To create or reinforce perceptions of key brand image associations

To enhance corporate image

To create experiences and evoke feelings

To express commitment to the community or social issues

To entertain key clients or reward key employees

TO permit merchandising or promotional opportunities

Any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives

A variety of programs to promote or protect a company's image or individual products

Press relations

Product publicity

Corporate communications

Lobbying

Counseling

Support corporate or product promotion and image making

Serves a special constituency, the marketing department

Launching new products

Repositioning a mature product

Building interest in a product category

Influencing specific target groups

Defending products that have encountered public problems

Building the corporate image in a way that reflects favorably on its products

Establishing objectives

Choosing message ad vehicles

Implementing the plan

Evaluating the results

Publications

Events

Sponsorships

News

Speeches

Public service activities

Identity media

The use of consumer direct channels to reach and deliver goods and services to customers without using a marketing middleman

Direct mail

Catalog marketing

Telemarketing

Interactive TV

Kiosks

Web sites

Mobile devices

Sending an offer, announcement, remind, or other item to an individual consumer

Use recency, frequency, monetary amount formula to select customers

Very targeted

Choose objectives

Select target prospects - RFM

Develop offer elements

Test elements

Execute

Measure success

Type of direct marketing

The use of the telephone and call centers to attract prospects, sell to existing customers, and provide service by taking orders and answering questions

Irritation

Unfairness - marketers take advantage of vulnerable or impulsive buyers

Deception and fraud

Invasion of privacy

Tailored messages possible

Easy to track responsiveness

Contextual ad placement possible

Search engine advertising possible

Buying ads on sites related to the marketer's offereings

Consumers can screen out messages

Bogus clicks cause errors

Web sites

Search ads

Display ads

Email

Mobile marketing

Interactive marketing option

Ease of use

Physical attractiveness

Interactive marketing option

Marketers bid on search terms that serve as a proxy for the consumer's product or consumption interests

When consumer searches for a key term the marketer's advertisement displays above the results

Advertisers pay only when people click on the links

Interactive marketing option

Banner ads

Small rectangular boxes containing text and perhaps a picture that companies pay to place on relevant web sites

Advertisements, often with video or animation, that pop up between changes on a web site

All the PR benefits a firm receives without having directly paid for anything

Press coverage of company generated advertising, publicity, or other promotional efforts that was paid for

Online forums

Blogs

Social networks

Marketing that generates excitement, creates publicity, and conveys new relevant brand related information through unexpected or even outrageous means

Marketing that encourages consumers to pass along company developed products and services or audio, video, or written information to others online

Sales force objectives

Sales force strategy

Sales force structure

Sales force size

Compensation

Deliverer

Order taker

Missionary

Technician

Demand creator

Solution vendor

Type of sales representative

Major task is the delivery of a product

Type of sales representative

An inside or outside order taker

Type of sales representative

Salesperson not permitted to take an order but expected to build goodwill or educate potential users

Type of sales representative

A salesperson with high level of technical knowledge

Type of sales representative

Relies on creative methods for selling tangible and intangible products

Type of sales representative

A salesperson who's expertise is solving a customer's problem

Prospecting

Targeting

Communicating

Selling

Servicing

Information gathering

Allocating

Focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and web ordering for low end selling

Used to determine sales force size

Customers grouped into size classes

Desirable call frequencies are established

Number of accounts in each size class multiplied by frequency

Average number of calls possible per year established

Number of reps = total annual calls required / average annual calls one sales rep can make

Fixed amount

Variable amount

Expense allowances

Benefits

Recruiting and selecting representatives

Training and supervising

Motivating

Evaluating

Prospecting and qualifying

Preapproach - learn as much as possible

Presentation and demonstration

Overcoming objections

Closing

Followup and maintenance

Entering new markets by tweaking products for new customers, using variations on a core product to stay one step ahead of the market, and creating interim solutions for industry wide problems

Shortage of important ideas in certain areas

Fragmented markets

Social, economic, and governmental constraints

Cost of development

Capital shortages

Shorter required development time

Poor launch timing

Shorter product life cycles

Organizational support

Cross functional teams

Stage gate systems

Organizational approach for new product developent

Cross functional groups charged with developing a specific product or business

Informal workplaces, sometimes garages, where intrepreneurial teams attempt to develop new products

Organizational approach for new product development

Divides the innovation process into stages, with a gate or checkpoint at the end of each stage

Managers review criteria and make a decision at each gate

Idea generation

Idea screening

Concept development and testing

Marketing strategy development

Business analysis

Product development

Market testing

Commercialization

Interacting with others

Interacting with employees

Studying competitors

Adopting creativity techniques

Attribute listing

Forced relationships

Morphological analysis

Reverse assumption analysis

New contexts

Mind mapping

Creativity technique for generating new product ideas

List the attributes of an object

Modify each attribute

Creativity technique for generating new product ideas

List several ideas and consider each in relationship to each of the others

Creativity technique for generating new product ideas

Start with a problem (getting something from one place to another)

Think of dimensions such as the type of platform (cart, chair, sling, bed)

Think of the medium (air, water, oil, rails)

Think of the power source (compressed air, electric motor, magnetic fields)

Creativity technique for generating new product ideas

List all normal assumptions about something and then reverse them

Creativity technique for generating new product ideas

Take familiar processes and put them into a new context

Creativity technique for generating new product ideas

Start with a thought, write it on paper, then think of the next thought, write it on paper, then think of the next thought, etc

Combining two product concepts or ideas to create a new offering

Gas stations + food = gas station stores

Cereal + snacking = cereal bars

Audio + portable = Sony Walkman

when a company dismisses a good idea

A possible product that a company might offer to the market

An elaborated version of the idea expressed in consumer terms

Presenting the product concept to target consumers and getting their reactions

Communicability and believability - are the benefits clear and believable?

Need level - do you see this product as solving a need?

Gap level - do other products currently satisfy this need?

Perceived value

Purchase intention

User targets, purchase occasions, purchase frequency

A method for deriving the utility values that consumers attach to varying levels of a products attributes

How important are each attribute of a product

Estimate total sales

Estimate total costs

Takes the list of desired customer attributes generated by market research and turns them into a list of engineering attributes that engineers can use

Testing the product within the firm to see how it performs in different applications

Allowing outside consumers to test the product

Sales wave research

Simulated test marketing

Controlled test marketing

Test markets

Type of marketing testing strategy for consumer goods

Consumers who initially try the product at no cost are reoffered it or a competitors product at slightly reduced prices to see how often they are purchased over and over again

Type of marketing testing strategy for consumer goods

Qualified shoppers are shown both new ad and popular brand ad and sees afterwards which shoppers purchase which brands

Type of marketing testing strategy for consumer goods

A company with new products specifies the number of stores and geographic locations it wants to test

Research firms delivers product and controls location, shelf space

Records purchases

Type of marketing testing strategy for consumer goods

Putting the product up for sale in a full blown test market

When (Timing)

Where (Geographic strategy)

To whom (Target market)

How (Introductory marketing strategy)

Used to coordinate the many tasks in launching a new product

Develops a master chart showing the simultaneous and sequential activities that must take place

Awareness

Interest

Evaluation

Trial

Adoption

An individual's decision to become a regular user of a product

Any good or service or idea that someone perceives as new no matter how long its history

Innovators

Early adopters

Early majority

Late majority

Laggards

The degree to which the innovation appears superior to existing products

The degree to which the innovation matches the values and experiences of the individuals

The degree to which the innovation is difficult to understand or use

The degree to which the innovation can be tried on a limited basis

The degree to which the benefits of use are observable or describable to others