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Pile Management Card
marketing final

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Gantt chart
distinguishes tasks that MUST be done sequentially from those that CAN be done concurrently
5 guidelines for developing effective marketing plans (plus one more...)
1. set measurable, achievable goals
2. use a base of facts and valid assumptions
3. utilize simple, but clear and specific, plans
4. have complete and feasible plans
5. make plans controllable and flexible
6. *plan for evaluation*
full coverage
firm has maximum potential synergies in both marketing and R&D manufacturing
selective specialization
firm doesn't get either synergy because of uniqueness of market-product combinations
product specialization
firm gains R&D manufacturing synergy through producing only one product, but gaining market distribution in all three market segments will be difficult
market specialization
firm gains marketing synergy through providing a complete product line for one market segment, yet difficult R&D manufacturing development for three products
market-product concentrations (synergy)
firm benefits form focus on a single product line and market segment, but loses opportunities for significant synergies in both synergy types
5 combinations of synergy effects
1. market-product concentration
2. market specialization
3. product specialization
4. selective specialization
5. full coverage
diversification
reaching new customers with a new product
-ex = introducing iPod (when it first came out) to United States market
product development
reaching current customers with a new product
-ex = 100 calorie Curves granola bar (mainly for women)
market development
reaching new customers w/ a current product
-ex = Cini Minis for Polish customers
market penetration
strategy of increasing sales of present products in existing markets (often by altering mktg tactics)
-ex = General Mills selling Cheerios in same market yet focusing on cholesterol-lowering benefits to adapt to target market concerns
annual marketing plans
usually developed by a marketing or product manager in a consumer products firm (ex: General Mills), this plan deals w/ mktg goals and strategies for a product, product line, or entire firm for a single year
long-range marketing plans
typically cover mktg activities from 2-5 years in future (don't go beyond due to high # of uncertainties)
-plans often directed at top-level execs and board of directors
planning phase of strategic marketing process
results in a plan that sets the direction for the mktg activities of an organization (heart of business plan)
-long-range or annual
sales response function of revenue... label axis and shape of graph
x & y:

annual mktg efforts vs. annual sales revenue

shape = S-shaped
structure
build and maintain a fast, flexible, flat organization
-ex = Lockheed's Skunk Works: created key guidelines for org. structure and implementation
culture
develop and maintain a performance-oriented culture
-ex = Smuckers: straightforward and based on four key elements in code of conduct to reduce employee turnover and large stock appreciation
execution
develop and maintain flawless operational execution
-ex = Toyota: speeding up decisions for a model in about half the industry average
strategy
devise and maintain a clearly stated, focused strategy
-ex = Costco: sell a limited selection of branded high-end merchandise at low prices
evaluation and control of salesforce
quantitative assessment or behavioral evaluation
What's the preferred method of the following forms of compensation?
-salary
-commission
-combination of both
-combination of both
recruitment and selection
one of most crucial tasks of sales mgmt that involves finding people who match type of sales position required by a firm
sales plan implementation
-recruitment and selection
-training
-motivation and compensation
3 methods of organizing salesforce in plan (NO best way... depends on situation)
1. geography (different regions/districts)
2. customer (different buyers have different needs)
3. product or service (specific knowledge is required to sell)
sales plan formulation
-setting objectives
-organizing the salesforce (where/how selling effort will take place)
-developing account mgmt policies
follow-up
ensure that the customer is satisfied with the product or service, often by assuring delivery, installation, and set-up if needed
-resolve any problems faced to ensure future sales possibilities, create loyal customer
urgency close
asks for decision based on timeline
assumptive close
asks for decision on delivery, warranty, financing
trial close
asks for decision on some factor of product
close
obtain a purchase commitment from the prospect and create a customer
-salesperson asks for purchase
-trial, assumptive, or urgency close
need-satisfaction format
emphasizes probing and listening by salesperson (prospect does most of the talking)
-most consistent with marketing concept and relationship building
canned sales presentation (type of formula selling)
a memorized, standardized message conveyed to every prospect
-used frequently by firms in phone or door-to-door selling
-every prospect is the same
formula selling format
based on the view that a presentation consists of info that must be provided in an accurate, thorough, and step-by-step manner to inform prospect
-ex: canned sales presentation
stimulus-response format
assumes that given the appropriate stimulus by a salesperson, the prospect will buy
-ex: suggestive selling at fast food restaurants or waiter asking customers for dessert
3 major presentation formats
1. stimulus-response format
2. formula selling format
3. need-satisfaction format
6 options for handling objections to presentation
1. acknowledge/covert the objection
2. postpone
3. agree/neutralize
4. accept objection as valid
5. denial
6. ignore objection (if trivial)
presentation
begin converting a prospect into a customer by creating a desire for the product or service
-critical to involve customer in product/service through attention to particular needs
Telephone Consumer Protection Act
contains provisions to curb abuses such as early morning or late night calling
-federal regulation of Do Not Call Registry (fines will be imposed if caught violating)
approach
gain prospect's attention, stimulate interest, and make transition to the presentation (build foundation)
-first impression is critical
-use common acquaintances, a referral, or product demonstration
pre-approach
gather info and decide how to best approach the prospect
-info sources include personal observation, other customers, and own salespeople
qualified prospect (in prospecting)
wants/needs product, can afford it, is a decision maker to purchase product
prospect (in prospecting)
someone who wants/needs product
lead (in prospecting)
potential customer
prospecting (in personal selling)
search for and qualify prospects through advertising, referrals, and cold canvassing
-start of selling process
-lead, prospect, and qualified prospect
value creation through salespeople
-close to customer, so they can understand needs and solve problems
-simplify the buying process
-after sale follow-up eases dissonance
-relationship selling
3 major roles of personal selling in marketing effort
1. salespeople are a critical link between the firm and its customers
2. salespeople are the company in a consumer's eyes
3. may plan a dominant role in the overall marketing effort
4 tasks involved in managing personal selling...
1. setting objectives
2. organizing the salesforce
3. recruiting, selecting, training, and compensating people
4. evaluating individual salespeoples' performance
personal selling
two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person or group's purchase decision
-almost every occupation has some aspect of this
training (trade-oriented sales)
reseller often less knowledgeable, so increase knowledge = increase sales
push money (trade-oriented sales)
extra money to employees based on volume
dealer loader (trade-oriented sales)
incentive for purchasing/displaying product
finance allowance
involves paying retailers for financing costs or losses associated with consumer sales promos
-regularly used and has several variations
case allowance
discount on each case ordered during a specific time period
-usually deducted from invoice
merchandise allowance
reimbursing a retailer for extra in-store support or special featuring of brand
3 common types of allowances and discounts
1. merchandise allowance
2. case allowance
3. finance allowance
allowances and discounts
trade-oriented sales promotions that try to maintain or increase inventory for larger purchases
-not paid by manufacturer until it sees proof of performance
rebates
offers return of money based on proof of purchase (attracts consumers)
-must call or mail in, but people seldom do this
point-of-purchase/sales displays
often located in high-traffic areas (ex: end of isle, by cash register) to encourage impulse purchases
FSI (free standing insert)
coupon booklet inserted in newspaper of magazine
loyalty programs
used to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate
-ex = frequent flier programs, credit card bonus points
samples
offering the product free or at a greatly reduced price (often for new products)
-good for trial
sweepstakes
based on luck of the draw
contests
consumers apply their skill or analytical/creative thinking to try to win a prize
premiums
free or cheaper merchandise offered at a significant savings over its retail price (ex: McDonald's)
deals
short-term price reductions (ex: 2 for 1, happy hour)
-retaliate against competitor's actions to boost sales
-may reduce perceived value of product
coupons
-generally 2% of value of product
-can help trial but hurts profits from loyal consumers
How much was spent on sales promotions in 2007? Was this greater or less than amount spent on advertising?
-$307 billion
-greater than advertising
sales promotion
a short-term offer designed to arouse interest in buying a good or service
-less regulated in US than rest of world
-need to integrate w/ other elements
-customer must perform some activity in order to be eligible to receive value
sales tests (posttest form)
involve studies such as controlled experiments and consumer purchase tests
5 types of posttests
1. aided recall (recognition-readership)
2. unaided recall
3. attitude tests
4. inquiry tests
5. sales tests
manners of carrying out ad program by 3 different agency types
1. full-service agency
2. limited-service agency
3. in-house agency
theater tests
most sophisticated form of pretesting; consumers are invited to view new TV shows, movies, and commercials
jury tests
involve showing the ad copy to a panel of consumers and having them rate how they like it (not hidden with other ads)
portfolio tests
used to test copy alternatives in a portfolio (hidden within other ads)
3 types of pretests
1. portfolio tests
2. jury tests
3. theater tests
8 common types of media options
1. television
2. radio
3. magazine
4. newspapers
5. Yellow Pages
6. Internet
7. outdoors (ex: billboards)
8. direct mail
wasted coverage
people outside the target market who see the message
pulse (burst) schedule
a flighting schedule combined w/ a continuous schedule because of increase in demand, heavy periods of promotion, or introduction of a new product (ex: Guavatini)
flighting (intermittent) schedule
periods of advertising are scheduled between periods of no advertising to reflect seasonal demand (ex: christmas trees)
continuous (steady) schedule
when seasonal factors are unimportant, advertising is run at a continuous or steady schedule throughout the year (ex: autos)
3 scheduling approaches in ad program
1. continuous (steady)
2. flighting (intermittent)
3. pulse (burst)
cost per thousand (CPM)
refers to the cost of reaching 1,000 individuals or households w/ the ad message in a given medium
gross rating points (GRP)
reach x frequency
rating (in ad program)
percentage of households in a market that are tuned in to a particular TV show or radio station
2 conflicting goals of selecting right media in ad program
1. maximizing exposure
2. minimizing costs
reach (in ad program)
number of different people/households exposed to message
-TV and radio describe reach using the term "rating"
humorous appeal
imply either directly or subtly that the product is more fun or exciting than competitors' offerings
-cross-culture effectiveness may vary
-audiences gets bored after time
sex appeal
suggests to consumers that the product will increase the attractiveness of the user
-downfall: many times this tactic has little impact on how consumers think, feel, or act (only catches attention)
fear appeal
suggests to consumer that he/she can avoid some negative experience through the purchase and use of a product or service, or through a change in behavior
3 most common message appeals in an ad
1. fear appeal
2. sex appeal
3. humorous appeal
designing message in ad program
focus on information and persuasion
-what product is, benefits, features, where to find it, price (all key parts)
-appeals to target audience (fear, sex, humor, etc.)
specifying objectives in ad program
-relate to a defined audience (prospective buyers)
-are measurable and for a given time frame
-need to choose vehicles, evaluate post-campaign
-trying to accomplish hierarchy of effects
target audience in ad program
characteristics of PROSPECTIVE BUYERS are likely to influence all aspects of an ad program
-must understand lifestyles, demographics, attitudes
6 steps in advertising program
1. target audience
2. specify objectives
3. set budget
4. design message
5. select right media
6. scheduling/timing
reminder institutional ads
bring a company or firm's name to attention of the target market again
institutional competitive ads
promote the advantages of one product class over another
-used in markets where different product classes compete for same buyers (ex: autos, "Got Milk?" campaign)
institutional pioneering ads
used for announcements about what a company is, what it can do, and where to find it (similar to product pioneering ads only for company instead)
advocacy ads
state the company's position on an issue, or org. makes a request related to a particular action or behavior
-ex: beer or tobacco ads
4 types of institutional ads
1. advocacy
2. pioneering
3. competitive
4. reminder
pioneering ads (informational)
-used in introductory stage of product life cycle
-informs target market what product is, what it can do, and where to buy it
-KEY = inform target market
competitive and comparative ads (persuasive)
-promotes a specific brand's features and benefits
-used in growth stage of product life cycle
-KEY = persuade target market to choose a company's brand over another
reminder ads
-used to reinforce previous knowledge of a product
-used in mature stage of product life cycle
-assures consumers they made the right choice
-fights cognitive dissonance
objective and task (budget method)
company determines promotion objectives, outlines the tasks to accomplish these objectives, and determines promotion costs
-best approach to budgeting
all you can afford (budget method)
allows money to be spent on promotion only after all other budget items are covered (conservative method)
-common method used
competitive parity (budget method)
matches the competitor's absolute level of spending or the proportion per point of market share
-use only if objectives are the same
percentage of sales (budget method)
amount of money spent is a percentage of past or anticipated sales
-common method used
-flexible with changes in sales
4 methods to setting promotion budget
1. percentage of sales
2. competitive parity
3. all you can afford
4. objective and task
promotion decision process (3 steps)
1. developing (initial planning)
2. executing (implementation)
3. evaluating (posttest and changes made, control)
adoption
repeated purchase and use of product and brand based on favorable first experiece
trial
consumer's actual first purchase and use of product or brand
evaluation
consumer's appraisal of the product or brand on important attributes
interest
increase in consumer's desire to learn about some of the product features
awareness
consumer's ability to recognize and remember the product or brand name
push strategy
directing the promotional mix to channel members to encourage them to order and stock a product
-personal selling/sales promotion to intermediaries
ancillary services
how much after-buy support is needed? (personal selling)
5 factors affecting which promo elements to use
1. target audience (consumer or intermediary)
2. stage in product life cycle
3. characteristics of product (complexity, risk, ancillary services)
4. decision stage of buyer
5. channel strategy used (push or pull)
2 main considerations in developing promotional mix
1. balance of elements must be determined
2. coordinating a consistent promotional effort between all departments
personal selling strengths & weaknesses
STRENGTH = immediate feedback, very persuasive, can select audience, can give complex info

WEAKNESS = commission, extremely (most) expensive, messages may differ between salespeople, highest risk
public relations strengths & weaknesses
STRENGTH = no direct payment, often most credible in consumer's mind

WEAKNESS = difficult to get media cooperation, advertiser lacks control
sales promotions strengths & weaknesses
STRENGTH = effective at changing behavior in short run, stimulates sales, very flexible (consumer or trade oriented), provide extra value w/ purchase

WEAKNESS = easily abused, can lead to promo wars, easily duplicated, must be combined w/ another element
direct mktg strengths & weaknesses
STRENGTH = can be prepared quickly, facilitates relationship w/ customer (very direct)

WEAKNESS = declining customer response, database mgmt is expensive, concerns over privacy
advertising strengths & weaknesses
STRENGTH = efficient for reaching large numbers

WEAKNESS = high costs, difficult to receive good feedback
mass vs. customized promotional elements
MASS = advertising, PR, sales promotion
CUSTOMIZED = personal selling, direct mktg
integrated marketing communications
concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences (provides unified brand)
noise
includes extraneous factors that can work against effective communication by distorting a message or the feedback received
-can be a simple error or misunderstanding
feedback loop
senders' interpretation of the response that indicates if the message was decoded properly and understood as intended
field of experience
similar understanding and knowledge of message; applied by both sender and receiver (overlap)
decoding
process of having receiver take a set of symbols and transform them back to an idea
encoding
process of having sender transform an idea into a set of symbols
marketing ROI
the application of modern measurement technologies to understand, quantify, and optimize marketing spending
What does combining market-based groupings and product groupings create?
matrix organization
market-based groupings
utilize specific customer segments (ex: banking, health care, etc.)
geographical groupings
sales territories are sub-divided according to geographical location (regional sales managers, district managers, etc.)
functional groupings
manufacturing, marketing, finance (examples)
-represent different depts. w/in a firm
product line groupings
employee unit responsible for specific product offerings
staff positions
people who have the authority and responsibility to advise people in line positions but CANNOT issue direct orders to them
line positions
managers, such as senior business manager, that have authority and responsibility to issue orders to the people who report them
action item list
an aid to implementing a marketing plan consisting of:
1. task
2. person responsible for completing task
3. date to finish task
4. what is to be delivered
product/program champion
able and willing to cut red tape and move program forward (move back and forth between big picture and specific detail)
-brash in overcoming org. hurdles
synergy analysis
seeks opportunities by finding the optimum balance between marketing efficiencies vs. R&D manufacturing efficiencies
diversification analysis
the search for growth opportunities from among current and new markets as well as current and new products
differentiation focus strategy
requires products to have significant points of difference to target one or only a few market segments
cost focus strategy
controlling expenses and lowering product prices target at a narrow range of market segments
differentiation strategy
requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting broad array of marketing segments
cost leadership strategy
focuses on reducing expenses and lowers product prices while targeting a broad array of market segments
generic business strategy
can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage
share points
percentage of points of market share
sales response function
relates the expense of marketing effort to the marketing results obtained
-annual sales
-profit
-units sold
-level of awareness
salesforce automation
use of technology to make the sales function more effective and efficient
sales quota
specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated period
account management policies
specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
major account management (aka key account mgmt)
practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships
sales plan
statement describing what is to be achieved and where and how the selling effort of salespeople is to be directed
consultative selling
focuses on problem definition, where the salesperson serves as an expert on problem recognition and selling
adaptive selling
a need-satisfaction sales presentation that involves adjusting the presentation to fit the selling situation
personal selling process
sales activities occurring before and after the sale itself, consisting of six stages:
1. prospecting
2. pre-approach
3. approach
4. presentation
5. close
6. follow up
order getter
salesperson who sells in a conventional sense and identifies prospective customers, provides customers with info, persuades customers to buy, closes sales, and follows up on customers' use of a product or service
order taker
processes routine orders or re-orders for products that were already sold by the company
relationship selling
practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time
sales management
planning the selling program and implementing the personal selling efforts of the firm
publicity tools
methods of obtaining non-personal presentation of an organization, good, or service w/out direct cost
cooperative advertising
advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products
trade-oriented sales promotions
sales tools used to support a company's advertising an personal selling efforts directed to wholesalers, distributors, or retailers
product placement
using a brand name product in a movie, television show, video, or commercial for another product
consumer-oriented sales promotions
sales tools, such as coupons, sweepstakes, and samples, used to support a company's advertising and personal selling efforts directed to ultimate consumers
posttests
tests concluded after an ad has been shown to the target audience to determine whether it has accomplished its intended purpose
pretests
tests conducted before an ad is placed to determine whether it communicates the intended message or to select among alternative versions of an ad
infomercials
program-length (30 min) ads that take an educational approach to communication w/ potential customers
institutional ads
ads designed to build goodwill or an image for an organization, rather than promote a specific good or service
product ads
ads that focus on selling a good or service; forms include pioneering (informational), competitive (persuasive), and reminder
traffic generation
outcome of direct marketing offer designed to motivate people to visit a business
lead generation
result of direct marketing offer designed to generate interest in a product or a service and a request for additional information
direct orders
the result of direct marketing offers that contain all the information necessary for a potential buyer to make a decision to purchase and complete the transaction
hierarchy of effects
sequence of stages a prospective buyer goes through: awareness, interest, evaluation, trial, and adoption
pull strategy
directing the promotional mix at ultimate consumers to encourage them to ask the retailer for the product
direct marketing
promotional element that 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
publicity
non-personal, indirectly paid presentation of an organization, good, or service
public relations
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, potential customers, stakeholders, suppliers, employees, and others about a company and its products or services
advertising
any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor
communication
process of conveying a message to others
promotional mix
combination of one or more of the communication tools used to inform, persuade, or remind prospective buyers
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