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Mktg 351 final
Principles of Marketing (MKTG 351 )
California State University, Fullerton
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MKTGPreview text
Promotional Strategy
a plan for the optimal use of the elements of promotion with intention of eliciting a response
What is "coordination" with respect to Integrated Marketing Communications (Integrated Brand Promotion)?
Coordination means that consumers get the same message no matter what channel is used.
What is "integration" with Respect to Integrated Marketing Communications (Integrated Brand Promotion)?
Integration means that each channel is used for what it does best. Ex: Billboards are attention grabbers while websites are informative
5 Elements of Promotion
Advertising, Public Relations, Sales Promotion, Personal Selling, Social Media
IMC
Integrated Marketing Communication = when all 5 elements of promotion are integrated to get the best results
What are the promotional goals of marketing?
Marketers want customers to realize the value of products.
How does promotion vary depending on PLC Stages?
In early stages the objective is to inform; during growth the firm persuades by emphasizing the superiority of their product; at the mature stages the goal is simply to remind consumers of the brand in creative ways.
AIDA Concept
Attention - creativity is important Interest - must be appealing enough to want related products Desire - message must be convincing enough to buy specific product Action - purchase product
What factors affect the promotional mix?
Nature of product, Stages of Product Life Cycle, Type of Buying Decision, Push & Pull Strategies
How does the nature of a product vary?
consumer vs business, mass produced vs custom
What are the 2 discussed types of buying decisions?
Simple Decisions & Elaborate Decisions
Push Strategies
Occurs when producer is persuaded into pushing their product further down to the consumer. Ex: discounts & rebates
Pull Strategies
Occur when consumer is already looking for the producer and "pulls" products from the firm.
Advertising
One way communication paid by the firm/marketer with the goal of increasing long-term sales.
What does the advertising response function look like?
What problem is emphasized by the Advertising Response Function?
Because too little advertising is ineffective and too much advertising is a waste of money, determining the proper amount of advertising is not easy to do.
What are the 2 major types of advertising?
Institutional Advertising & Product Advertising
Institutional Advertising
AKA "Corporate Advertising". This promotes the firm as a whole rather than a specific product
Product Advertising
Focuses on promoting individual products. Includes Pioneering Advertising, Competitive Advertising, and Comparative Advertising.
Pioneering Advertising
Usually occurs at the introductory stage and is always informative.
Competitive Advertising
Does not explicitly compare other brands yet does attempt to establish product as superior
Comparative Advertising
Generally used by smaller brands by explicitly comparing a product as better than a larger brand's product.
DAGMAR
Defining Advertising Goals for Measured Advertising Results
What are the DAGMAR Steps?
- Identify Product Benefits
- Develop & Evaluate Advertising Appeals
- Execute the Message
- Evaluate Effectiveness
What does "Media Planning" consist of?
choosing appropriate media, the media mix, and the media schedule
What are the options for Media Advertising?
Newspapers, magazines, television, radio, outdoor, internet, alternative.
Types of Media Scheduling
- Continuous refers to the same level of advertising throughout a long period of time.
- Flighted is a burst of media for a smaller time-frame.
- Pulsing is a combination of continuous and flighted.
Public Relations
marketing function that evaluates public attitudes, in areas within the org that the public may be interested in, executes a program of action to earn public understanding/acceptance
Sales Promotion
Short-term orientation, intends to induce additional sales. Includes coupons & rebates, premiums, loyalty programs, and point-of purchase
Coupons & Rebates
Coupons are a temporary discount at POS while rebates require paperwork after POS.
Rebate Slippage
When customers are too lazy to complete the paperwork required to receive a rebate.
Premiums (Sales Promotion)
Offers an item for free or bargain price for performing some type of action.
Loyalty Programs
Rewards system for customers who make frequent purchases.
Point-of-Purchase
includes sampling or other things that convince the customer at the store to buy a product. Includes displays and sampling
Types of Trade Promotion
Note that these are directed at intermediaries or traders.
- Trade allowance
- Push Money
- Training
Trade Allowance
Discount from manufacturer to intermediary for promoting the manufacturer's products. Includes more shelf-space or additional displays
Push Money
FOB (free on board) means buyers each pay different prices for shipping depending on the destination. Uniformed Delivery Pricing is one shipping cost despite different destinations. Zone pricing is the same price within a zone but different prices between zones.
loss leader pricing
a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
Psychological Pricing Tactics
Example: odd-even pricing where 7 is considered a bargain but 8 is considered too high.
2 Part Pricing
Lower price for one of two complementary goods and an increased price for the its complement.
Price Bundling
Price of many items in a bundle are at a price lower than the combined single prices.
Versioning
creating multiple versions of information goods and selling essentially the same product to different market segments at different prices
Price Fixing
when competitors "collaborate" or collude to take consumer surplus
Encoding
The conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs
Noise
Anything that interferes with, distorts, or slows down the transmission of information.
What's the term for a "desirable, exclusive, and believable advertising appeal selected as the theme for a
campaign?
Unique Selling Proposition
Infomercial
A 30 minute or longer advertisement that looks more like a television talk show than a sales pitch.
Cost Per Contact (cost per thousand or CPM)
The cost of reaching one member of the target market.
Reach
The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks.
Frequency
The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks.
Audience Selectivity
The ability of an advertising medium to reach a precisely defined market.
Price Discrimination
different prices to different buyers. Illegal unless justifiable because of market conditions such as competition in different markets
Cold Calling
A form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status.
Preapproach
A process that describes the "homework" that must be done by a salesperson before he or she contacts a prospect.
Yield Management System (YMS)
A technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacity.
Keystoning
The practice of marking up prices by 100 percent, or doubling the cost.
Selling Against the Brand
Stocking well known branded items at high prices in order to sell store brands at discounted prices.
Extranet
A private electronic network that links a company with its suppliers and customers.
Predatory Pricing
to create monopoly through prices below cost price below good cost force competitors to leave industry as cannot compete re-coop losses sustained during this price war after having monopoly
Mktg 351 final
Course: Principles of Marketing (MKTG 351 )
University: California State University, Fullerton
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