Final Exam Study Guide Marketing Leslie Koppenhafer Boise State University PDF

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Notes for the final exam for Marketing 301, taught by Leslie Koppenhafer...

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Marketing Exam Final Study Guide Leslie Koppenhafer Boise State University

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What are the five components of the promotional mix? What are the pros/cons to each?: Advertising, public relations, personal selling, direct marketing, sales promotion. Advertising: paid form of the promotion of ideas, goods, services. Example: TV ad. Pros: efficient, can reach a lot of people at once. Cons: High immediate costs, difficult to receive feedback. Public Relations: building a good view of the company among consumers by participating in social responsibility, promoting company image, and fixing bad reputation or rumors. Example: restaurant donating to the local food bank. Pro: often most credible for a customer. Con: difficult to get media cooperation, hard to control. Personal Selling: individual sales representatives going out and talking to potential customers. Example: The Office. Pro: easy to get immediate feedback, good way to form customer relationship, more personal. Con: extremely expensive, messages differ between salesmen. Direct Marketing: direct communication with consumers in order to generate a buying response. Example: email marketing. Pro: messages can be prepared quickly, facilitates customer relationship. Con: declining customer response, database management can be expensive. Sales Promotion: Short term incentives to encourage people to buy. Example: Buy within the next hour for 10% off. Pro: Very flexible. Con: Easily duplicated, easily abused.

• What are the key steps in the communication process? : First, the sender encodes the message and sends it. The receiver then gets the message, but must filter out noise. The receiver then decodes the message, responds, and provides feedback. • What five factors should be considered when developing a promo mix? : The target market, the product life cycle, product characteristics, the stages of the buying decision, and the channel strategy.     

Target Market*: who the product is being marketed to. Product Life Cycle*: Whether the product is a new product being introduced, is growing, mature, or in decline. Product Characteristics: complexity, risk, etc. ?? Stages of the Buying Decision: pre-purchase, purchase, or post-purchase. Channel Strategy: push strategy or pull strategy (consumer demand “pulls” the product into stores).

• What are the three steps in developing an IMC? Associated questions? : the integrated marketing communication is the message that the company consistently sends to develop a clear brand personality in the customer’s mind about the product and company. The IMC includes the three steps of 1. Planning, 2., Implementation., and 3., evaluation. • How does messaging differ from positioning?: Positioning is the source of messaging. Positioning is only used internally, while messaging is used externally and internally. Messaging supports positioning and conveys the idea. Messaging communicates features and quality and is factually verifiable.

• What are the different forms of advertising? What are the advantages and disadvantages for each medium?: Television, radio, magazines, newspapers, yellow pages, internet, outdoor, direct mail. • What are the steps in developing an advertising program? : Identify the target audience, specify the objectives, specify the budget, design the ad and create the message, select the right media, schedule the advertising program. • How does advertising differ from sales promotion? : Advertising is a reason to buy, sales promotion is an incentive to buy. • What are the different types of sales promotions? : coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, pont-of purchase displays, rebates, product placement. • What is the goal of PR and how does it work?: PR is about managing a company’s reputation and helping to build public support for its activities by improving public opinions, establishing goodwill, and building and maintaining a reputation. • What is the goal of PR and how does it work? : PR is about fostering goodwill, damage control, giving people something to talk about, engaging with customers, promoting new products, and counteracting negative publicity. • What should you consider when sponsoring an event? : Do event participants include your target market? Will your brand be noticed? Does it connect with other parts of your IMC? Is the expense justifiable and measurable? • What are digital and social marketing really good at? : Interactivity, location-based marketing, cost advantages, being always with customers, and flexibility. • Why do companies use digital marketing? : Above reasons, create buzz, build brand love/image, provide information, deal with customer service issues, get people’s attention. • What are different types of digital marketing? : SEO, social media, • What makes digital traditional? Non-traditional? : Traditional in that the way you advertise digitally is the way you would advertise traditionally, it’s just over a different medium. Eg., newsletters have replaced newspapers, website instead of a brochure). Non-traditional in that it is interactive, location based, more fun, always with us, and flexible. • Why do people use digital? : informational, interactive, entertaining, social, always available. • What should be considered when developing a website? : content (must be valuable), tracking (can help you understand where and what to advertise), and monetization. • How can companies use SEO/SEM effectively? : Using good keywords and website optimization to rank higher in search results can result in more visitors to the site. • How do we measure digital marketing? : Often through impressions (CPM), readers, click-throughs (CPC), visitors, response/sale (conversion), and patterns monitored through tracking like heatmaps and such.

• Why do people use digital and social media? : traditional and non-traditional platforms, allows brands to monitor conversations and other brands, can be used to create buzz, build brand love, have positive interactions, etc. • What does “owned, paid and earned” mean in regard to social media? : Owned is marketing the company owns/created, such as a website or a facebook page. Paid is advertising the company is paying for, such as facebook or google advertising. Earned is things like social media followers, that the company has earned over time. • How do you integrate social media into a marketing strategy?: By creating a two-way communication path for customers, also view fairly detailed profiles for target marketing, also provide consistent messaging, drive engagement, track metrics, and have a plan for viral “luck.” • What are the three primary values of using channels? : they provide specialization and division of labor, they overcome discrepancies, and they provide contact efficiency. • What are the four typical channel systems? : Direct channel (producer to consumers), Retailer channel (producer to retailers to consumers), wholesaler channel (producer to wholesaler to retailer to consumer), Agent/broker channel (producer to agent/broker to wholesaler to retailer to consumer). • What are the three types of coverage/placement? : Intensive, selective, Exclusive. Intensive-- achieve mass market selling, as many outlets as possible. Eg, coke. Selective—work with selected intermediaries, several outlets (eg, apple). Exclusive—work with a very limited number of outlets (eg, cars). • What is retailing? : this involves all activities involved in providing products directly to their final consumers for non-business purposes.  

Disintermediation: more and more, product and service providors are bypassing intermediaries and going directly to consumers. Eg, expedia and uber represent this. Channel conflicts: horizontal conflict occurs amont firms at the same level (eg, retailer to retailer. Vertical conflict occurs between different levels of the same channel (wholesaler to retailer). Vertical is bad but common.

• What are two trends in retailing? : interactivity—customers are involved in the retail experience, and M-Commerce—purchasing goods/services through mobile devices. 

Overcoming discrepancies: Quantity (difference between amount produced and amount bought), assortment (the lack of all the items a customer needs to get full satisfaction), temporal (When a product is produced but a customer isn’t ready to buy it), spatial (difference between location of producers and location of customers).

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What is price and how does it fit with the other 3 P’s? : Price is the amount of money charged for a product or service. The only element in the marketing mix that produces revenue. Customers decide if price is right.

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What are the six steps for setting prices? : 1, Identify objectives and constraints, 2, estimate demand and revnue, 3, determine cost, volume, and profit. 4., pick your price approach (cost oriented, demand oriented, profit oriented, competition)., 5., set the list or quoted price (fixed or dynamic?). Don’t forget to consider the company effects, customer effects, and competition effects. Why do we care about marginal cost and marginal revenue? : Marginal cost is the change in total cost brought about by marketing one additional unit. Marginal revenue is the change in total revenue brought about by marketing one additional unit. What influences price elasticity? : Income, perceived value. Inelastic demand is an increase in price doesn’t significantly impact demand. Also remember elastic demand, unit elasticity. What are the four general approaches to setting prices?: Cost oriented, demand oriented, profit oriented, competition oriented. What is dynamic pricing and how is it used?: Dynamic pricing is fluid between buyer and seller. Often situation and opposed to fixed price. It seeks to capture the full value of the exchange. Value is often subjective, and prices are often adjusted quickly to reflect customer perceived value. What are the 6P’s? : Place, Product, Promotion, Price, Personnel, Presentation....