This site is 100% ad supported. Please add an exception to adblock for this site.

MKTG Final

Terms

undefined, object
copy deck
Manufacturer's sales branch
Type of full service. Owned by manufacturer.
International Marketing Strategy
(1) Straight extension: ("Global Marketing" approach)- same product and promotion across countries. Global Marketing is international marketing w/o and changes in product or promotion. Cheap. (2) Product Adaptation: use when conditions of use change. (climate, tastes, habits, etc.) (3) Communication adaptation: when function of product changes or encoding changes significantly. Use same product, but use for different reason. Ex. bikes used for recreation in US and for transportation in different occasions.
Network Vs. Cable and Satellite
Just Know that it exists
Difference between real and perceived source
Celebrity ad: celebrity is perceived, company is real.
Legal Issues with International promotion
(1) Labeling/packaging requirement (Canada labeling) (2) Comparative advertising. Ex. In some countries you can not even say we are better than the leading brand. (3) Standards and practices. Ex. A while ago women were not allowed to be shown in their underwear. (4) Pricing issues: -Fluctuating currency value. -Non-convertible monetary systems. (Counter trade: exchange one product for another). (5) Product Issues: Adapt.
Radio Advertising
Local Medium (for now, but changing)
Definitions (International Marketing)
different meanings in different countries.
Advertising Print
(1) Newspaper (2) Magazines: (3) Yellow pages (4) Direct Mail
Promotion through channel
(1) Promotion takes place to channel members. (2) Also must promote to get distribution of our product.
3 Strategies for promotion
(1) Get users of competition to become: users of our brand. Must have differential advantage. (2) Get users of our brand to: use more. Must have: new users or areas of use. Assumes that we have strong use of brand already or in market with no competition. (3) Get prospects to become: users (of category). Use when low penetration in category. Must have: major market share. So that when people come into category they go to you. (4) Get non-users to become: prospects. NOT A MARKETING STRATEGY. It is a marketing decision to redefine nonusers as prospects. Then turn prospects into users.
Ad testing
Often used to pretest ad, get feedback before running the ad.
Encode
Design the message using words, terms, signs, or symbols.
Magazines Advertising
National medium ADVANTAGES: good geographic and demo/lifestyle selection, long lasting (pass-along readership), Good mechanical reproduction.
Advantages of Personal Selling
(1) Better targeting of prospects. (2) Faster and clearer feedback. (3) Better adaptation to the customer/situation. (4) Good for detailed explanation or demonstration. (5) More effective in closing a sale.
Newspaper Ad Advertising
more money spent on newspaper advertising than any other. (1) Local medium. ADVANTAGES: short closing time (length in advance newspaper needs to have your ad), good geographic selection (hit anywhere in the country), good shopping medium. DISADVANTAGES: short life, crowded with ads (typical newspaper is 2/3 advertising), not good for national advertising, limitations of print (limited to what you can see).
Cash and Carry Wholesaler
Specialize in small purchases that are needed right away and paid for by cash. Common with electrical items.
Why do we encode?
(1) Limited time and money. Make ad more interesting. (2) Better understanding.(3) Make it more memorable.
Public Relations
A program of activities that are used to affect public image. Ex. Sponsorship of marathon, educational program. Builds positive image for organization. Hoping will create publicity.
Promotional Strategies
Group customers (4 ways)
Limited Service Wholesaler
Specialize in service.
Seasonality: Holidays (International Marketing)
(1) Don't know holidays in other countries. (2) Have to what and how they treat their holidays.
Promotion to obtain initial distribution PULL
Customer to retailer to wholesaler to manufacturer. The manufacturer starts by advertising or promoting directly to the end consumer. Consumer to go to the retailer requesting product. Retailer calls manufacturer to get product. More expensive because of heavy advertising. May anger channel members, but gets faster distribution. Rosen suggest that you tell Retailer that you are going to use pull promotion.
Important to remember for sales
consultative selling. Understanding needs and meeting them. Not going out and pushing a product.
Marketing and The Internet
Internet is a distribution channel. There is nothing we can do on the Internet that we couldn't do before the internet. Internet is just faster and easier. Think about what we were doing before and what we can do to make this easier and better.
Is the Internet an Advertising Medium?
No, it is a distribution channel.
Source (Promotion as Communication)
The originator of the message (ex. government, ad agency, anyone communicating a message).
Marketing Information System
a computer-based system designed to deliver managers continuous information for their marketing decision making. (1) Need initial information for marketing-plan development. (2) Need feedback (sales, share, satisfaction, etc.) to determine ongoing performance, need for adjust.
Broadcast ratings
A percent of television households watching your station. -1 rating point= 1% (about 1mm television) HHs. TV uses people meters and channel meters and diaries. Nielsen Media Research
Publicity
Any newsworthy item carried by the media. Don't pay media because it is newsworthy. Have less control. Can be good or bad publicity.
Distribution strategies.
Coverage, Length, and Multi-Channel Distribution
Advertising Broadcast (What to do about TiVo
(1) Product placement (within the program) Ex. Days of our lives (midol). (2) New technologies to improve effectiveness. Ex. Electronic billboards, ads on electronic games. (3) Viral marketing: releasing an ad only on the internet and make it interesting so people will send to friends. (4) Social-network marketing: facebook, myspace becoming more commercial.
Internal Audit
Conducted by firm's personnel.
2 Types of wholesalers
(1) Full service and (2) Limited service
International Marketing- Entering the Market
A function of control and risk- greater control involves more risk. (1) Exporting- least risk, least control-often initial. (2) Licensing- grant process, patents, trademark, etc. -Contractual agreement provides control. (3) Joint venture- share ownership and control.
International Marketing
Importance develops from a change of philosophy: (1) No longer an American firm marketing to other countries. (2) We market to the world but happen to be headquartered in the U.S.
Why use a particular perceived source?
(1) Get attention of the market. (2) Interpretation: we interpret messages based on where it comes from. (3) Believability: more likely to believe certain people.
Marketing Research (International Marketing)
(1) U.S. depends on phone and mail availability. (2) Other countries may not have reliable phone or mail service. Often use cell phones. (3)Other countries are often suspicious of researchers. (4) Competitive set differences (Japan- fruit drinks and sodas, are same)
Sales Management
planning, implementation and control of the selling.
External Audit
Conducted by outside experts-less frequent. They are impartial.
7 Sales Steps
(1) Prospecting and Qualifying. Looking for people that are interested and can make a decision. (2) Precall: want to find out everything you can about organization. (3) Approach: how you make initial contact with organization. (4) Presentation: fact finding- info delivery. (5) Handling objections: good because it means they are considering you.
Wholesaler
Make more than 50% of their dollar volume from sale to everyone, but the consumer.
National Television Advertising
National, as across all affiliates.
Personal Selling
generally face-to-face, more intimate.--More important for: (1) Business to business purchases because they want your relationship. (2) Consumer products involving higher risk.
Disadvantage of Television
(1) Fleeting impression (unlike print). (2) Ads considered intrusive.
Reasons to use sales reps
(1) Best for new firms- smaller or specialized lines. (2) Established relationships and knowledge of area. (3) Commission, no training or hiring costs.
The marketing audit
A systematic review of procedures and performance.
Promotion to obtain initial distribution (Push)
Manufacturer to wholesaler to retailer to customer. Promotion to channel get distribution-common.
Full service wholesalers
supply the standard service-buy resell, finance, store, assume risk, transport, etc...
Decoder
Translating the words, terms, signs, and symbols into message.
Destination
The storage area (i.e. your brain) for the decoded information.
Methods of maintaining control
(1) Administrative: based on reward and punishment. (2) Contractual: based on legal agreements (contract). ex. franchise like subway. (3) Integrated Channels: maintains the most control by buying up channel members. Channel members own channel members. Retailers can own manufacturer.
Merchant wholesaler
Type of full service. Independent business
7 issues with sales force management
(1) Sales Force Organization- by product, customer, or geography. (2) Number to hire: how many sales people do you hire. (3) New vs. Experienced (to hire) - qualifications
Channel
The medium of delivery for the message. Pick a channel that will reach the target market. Pick a channel that will properly communicate the encoded message.
Truck Distributor wholesaler
Drive around city and deliver from their truck. Sell to businesses.
Personal Sales
Personal communication in real time (often one on one). Often face-to-face.
Things that cause encoding errors
(1) Noise (2) Encoding Error (not interpreted as intended)
Advantages of Television Advertising
(1) Sight, sound, and movement. (2) Good geographic and demo/lifestyle selectivity.
Coverage (1 of the Distribution strategies)
(1) Intensive: want to produce everywhere. ex. convenience goods. No control, have to be everywhere. (2) Selective: less than all retailers. Ex. Shopping goods. (3) Exclusive: One or very few retailers in a region carry product. Ex. specialty goods. Advantage: manufacturer has control. Would be preference.
Types of Promotions
(1) Advertising. (2) Personal Sales (3) Sales promotion (4) Publicity (5) Public relations.
Promotion
The communication between buyer and seller with the purpose of influencing the buyer.
Reasons to use own sales force
(1) Spend all their time on your product. (2) Gain more control-train as you want. (3) But assume costs- hire, train, compensation, etc...
Broadcast Advertising being purchased
Purchased by length and day part. Cost is a function of ratings.
Length (1 of the distribution strategies)
Can be producer to consumer, producer to retailer to consumer, can keep getting longer. Depends on coverage desired, geographic distribution, perishability and/or bulkiness of product.
Sales Promotion
Any incentives to induce immediate response. (Contests, coupons, etc...)
Feedback
Information from the receiver back to the source representing reaction to the interpreted (destination) message. Speed and clarity is affect by the channel.
Problem with full service
Channel is taking over, they establish own wholesaler.
Way to solve translation problems
Backwards translation can be used to avoid translation problems. Have native speaker translate slogan back into English and see how it comes out.
Advertising (Type of Promotion)
Pay media to carry advertisement, identified messages.
Disadvantages of Radio Advertising
(1) Fleeting (reminder) impression. (2) Has to be run over and over again because of distractions. (3) Audio only. Advantage of being able to be creative, but you can't show.
Control and Evaluation: Last part of marketing plan
How do we insure that we are performing properly? Must have a well though out marketing plan. No substitute for well though out marketing plan. (1) Must have clearly stated, quantified objectives at each level. (2) Must have flexibility- keep a watchful eye and adjust as needed.
Logistics
coordination of physical and information flow. (1) Modes of transport. (2) Number, size, placement of warehouses. (3) Inventory mgmt (4) Order processing. *The future is in information flow rather than physical flow.
Multi-Channel Distribution (1 of the distribution strategies)
Often takes more than one distribution systems to get coverage for your product. Ex. Coke- stores, restaurants, vending machines, etc...
How to handle problems with full service wholesaler
(1) Wholesalers make themselves more valuable. (2) Get out of the game.
Receiver
The person who is exposed to the message.
Spot or Local Advertising
Run in the local market
Direct Mail Advertising
ADVANTAGES: most specific and selective of all the media. (1) Mailing lists are more expensive, the more specific they get. (2) Least ad competition when reading. (3) Production flexibility. DISADVANTAGES: Highest CPM (physical piece) (1) Low response rate. (often 1% or lower). (2) Rising mailing costs (physical piece). (3) "Junk-mail" image. (Challenge is to get people to open them). (4) Limitations of print.
Where to begin with International Marketing (Environments)
Begin with situation analysis as we have before. But pay particular attention to certain environments: (1) POLITICAL: pretty smooth in the U.S. but in other countries politics is not always as stable. (2) LEGAL (regulatory): certain products may be banned in other countries. How products are sold differs. Ex. in other parts of the country comparative advertising is against the law. (3) Social (Environment): Americans assume everyone is like us. -Space and time: personal space and punctuality. -Greetings and gestures. In other countries people may kiss. (4) Product usage: same product used differently in different countries. (5) Social taboos: when it is appropriate to swear differs in different ads. Europeans show a lot more sex in ads. Americans uptight.
Distribution Differences (International Marketing)
(1) Channel differences. Ex. Fuji and Kodak in Japan (family oriented) (2) Shopping differences. Ex. many countries still have ma and pa stores.
Promotion is a mix of:
Integrated Marketing Communications (idea is to build mix so that these are all interrelated).
Advantages of Radio Advertising
(1) Mass use (a lot of radios) (2) Good geographic and demographic selectivity. (3) Shortest closing time of any of the media. (4) Easy, low-cost preparation.
Agents and brokers
Make arrangement and take a percentage
Rack Jobber wholesaler
Maintains a rack of goods in a retail store. Goods that a retailer does not want to mess with. Ex. Turkey baster, oven mitt, etc.. rack jobber comes in and sets up display.
Types of Promotional Demand
(1) Primary (generic) Emphasis on category. Use for prospects. (2) Secondary (selective) emphasis on brand. Pull from competition. Or for non-durable good get nonusers to use them.
Channel Conflict and Control
Beware of conflict: everyone is out to make a profit. Don't piss of channel members. Keep channel members aware of changes and share profits with them.

Deck Info

85

permalink