Marketing: notes (2011)

Describe the Communication Process

Sender encodes messageàcommunication channelà Receiver decodes message

What is Promotional Mix?  What are its parts?  How do they differ?

Promotional Mix:  Tools marketers use to achieve communications objectives.

Combination of promotional methods used to promote a specific product.

Strategically selected combination of advertising, personal selling, sales promos & public relations determined to be the most cost effective way of reaching promotional goals.

Paid Personal: Personal selling

Paid Non-personal: Advertising

Non-Paid Personal: Word-of-Mouth

Non-Paid Non-Personal:  Public Relations

What are the steps in the selling process?  In what ways are sales forces compensated?

1.     Prospecting

2.     Pre-Approach

3.     Approach

4.     Presentation

5.     Overcoming Objections

6.     Closing

7.     Follow-up

Sales forces are compensated in Straight Salary, Straight Commission, or a Combination

What is Sales Promotion?  What are some of the major types of sales promotions?

Paid, personal & non personal efforts to create a specific response.  Activity or material acting as a direct inducement, offering added value for the product to resellers, salespeople, or consumers.

What is advertising?  Objectives?  Advertising platform? 

Advertising:  Paid non-personal communication about an organization & its products transmitted to a target audience through mass media.

Objectives:

1.      Increased sales/market share/brand awareness

2.      Product positioning/repositioning

3.      Image building/rebuilding

4.      Brand building

5.      Attitude change

Ad Platform:  Selling point or theme around which campaign is built

What are the steps in creating an advertising campaign? 

1.      Identify & analyze target audience

2.      Define advertising objectives

3.      Create ad platform

4.      Set ad budget

5.      Develop media plan

6.      Create ad message

7.      Execute campaign

8.      Evaluate ad effectiveness

How is advertising effectiveness evaluated?

1.     Pretest

2.     Consumer jury

3.     Post test

4.     Recognition test

What are two major battles of advertising?  How does advertising work?

1.     Eyeballs- getting the ad noticed

2.   Interest- involve & hold them for 7 seconds or more

What is public relations?  How is it different than advertising?

-Non-paid, non-personal communication through mass media. 

-Used to create and maintain favorable relations between organization and stakeholder.

-Enhances the image of the organization and is more credible than ads.

What is Strategic Planning?

Creating & maintaining fit between organizations objectives & resources & evolving market opportunities.  Goal= long-term profitability and growth.

3 questions of strategic planning?

1.      Where are we?

2.      Where do we go?

3.      How do we get there?

Core Competency= Something a firm does well, giving it an advantage over competitors.

Market Opportunity= Combination of circumstances & timing allowing firm to reach a target market.

Competitive advantage= Core Competency + Market Opportunity

What is a mission statement?

Aspiration vision of what the organization wants to become.  Answers who are our customers, and what is the core competency

How do corporate, business units and marketing goals relate?

Corporate strategy identifies the resources needed to reach organizational goals.

Strategic Business Unit (SBU): Division product line within parent company

What is portfolio analysis?

Set of SBU’s a firm owns= portfolio

Involves classify performance capabilities of SBU to determine allocation of resources around them.

What are marketing objectives? 

Objectives:  What is to be accomplished.  Should match strengths to opportunities; convert weaknesses to strengths.

What is the marketing strategy? 

Tool for identifying & analyzing target markets & developing marketing mix suitable for mutually beneficial exchanges

What is the marketing planning cycle?

What are major parts of marketing plan?

1.     Executive Summary- synopsis of plan

2.     Analysis of Marketing Environment- SWOT, competitive, economic, legal, regulatory, technology

3.     Target Market- Description & assessment of who you are marketing towards

4.     Current Objectives

What is SWOT?

Strengths: Competitive advantages/competencies

Weaknesses: Limitations on competitive capability

Opportunities: Favorable conditions

Threats:  Conditions/barriers to reaching objectives

What are Implementation and Control?

Implementation:  Actions or activities to carryout the marketing strategy

Control:  How success is measured.

Marketing : Notes (2011)

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Main goals of distribution:

1)    Logistical:  Moving products from manufacturers to end users

2)    Strategic:  Achieve logistics goal in a way that:

a.     Value is created for customers

b.     Advantage is gained over competitors

Distribution Channels:

1)    Distribution:  All activities involved in getting product from where they are made to where customer purchases them

2)    Marketing Channel:  Coordinated Organization group & individuals involved in getting products from producers to consumers

Channels create Utility, efficiencies, resolve discrepancies, maximize perceived value, and satisfy/stimulate demand

Intermediaries:  People perform a number of important tasks for the passage of products to end users.

Middlemen:  An Intermediary between manufacturer and end user

What are Indirect/Direct Channels:

Direct Channel:  Producerà Customer

Indirect Channel:  Producerà Intermediaryà Customer

Why are Channels of Distribution efficient?

1)    Reduces overall cost of market exchange

2)    Reduces search costs for customers

3)    Maintain order in marketplace

What Utility do channels create?

1)    Time (product comes when customer wants them)

2)    Place (available in locations customers find efficient

3)    Possession

What are Intensive, Selective, and Exclusive distribution strategies?

1)      Intensive: Using ALL available outlets to distribute a product

2)      Selective:  Using SOME available outlets to distribute a product

3)      Exclusive: One outlet in geographic area to distribute a product

What is Channel Integration?

Vertical:  One-management member coordinate efforts to reach target market àretailer by wholesaler

What is Wholesaling?  Retailing? What do wholesalers and retailers do?

Wholesaling:  Transactions where products are bought for resale for making other products, or for other business operations

1)      Facilitates and expedites wholesale transactions

2)      Handles the physical distribution of goods

3)      Furnishes channel info to facilitate & manage channel

4)      Extend producers sales force

5)      Financial assistance for channel

6)      Transport & warehouse inventories

7)      Channel info to and from sellers to buyers

Retailing:  Final stage in a channel distribution.  All activities involves in sale of goods & services to final consumer for personal, family, or household use.

1)         Creates strategic & attractive product mixes

2)         Provide information

3)         Store products, mark prices, & pay for goods and services

4)         Conclude transactions with final consumers

Major types of Wholesalers?  Retailers?

Wholesalers:  Merchant workers, Brokers and Agents, Manufacturers & retailers’ branches & offices.

What is Product Mix?  What are the main product mix strategies?

Product Mix:  Thoughtful retailers can develop product mixes to appeal to either

Retail product mix is key in:

1)    Retail target marketing

2)    Competitive Differentiation

3)    Staying relevant & attractive to customers

Product mix width and depth:

Why is price so important?

1)    Most easily changed marketing mix tool

2)    Symbolic value to customers

3)    Affects generation directly

4)    Key component in the profit equation:

a.     Profit= total revenue – total costs

b.     Profit= (Price X quantity sold) – total costs

What are the two basic types of competition?

1)    Price Competition

a.     Fast competitive response

b.     Focus on beat/matching competitors prices

c.     Lowest cost firm most profitable

d.     Market with standardized products

e.     Price wars can hurt all firms

2)    Non-Price Competition

a.     Branding, service, quality to differentiate products

b.     Unit sales increased without changing price

c.     Effective when product features are difficult to imitate

d.     Basis for long term loyalty

What does a demand curve tell us?

1)    Demand Curves show us the quantity of products exposed to sell at various prices

2)    Slopes DOWN & RIGHT à

a.     Showing that decreases in price lead to increases in quantity sold

3)    Increased demand = larger quantities sold at same price

What is Price Elasticity of demand?  What is Elastic/Inelastic demand?

Price Elasticity of Demand: Quantity demand by large amount

Inelastic:  Quantity demand drops by small amount

What are fixed costs?  What are variable costs?

Fixed Costs: Costs that don’t change, regardless of the volume sold

Variable Costs:  Costs that increase as volume sold increases

How are Marginal Cost, marginal revenue and profit maximization related?

1)    Marginal Analysis:  looking what happens to costs & revenue when the firm sells one additional product

2)    Marginal Revenue:  Change in total revenue from sale of one additional product

3)    Profit Maximization occurs when Marginal cost = marginal revenue

What is breakeven analysis?  What does it tell us?  How is it calculated?

1)    Breakeven Analysis: The number of units needed to sell to make zero profits, or to just break even

a.     Costs of making a product equal the revenue made from selling it.

2)    Breakeven Point = Fixed costs/per-unit contribution to fixed costs.

3)    Breakeven Point = Total Fixed costs/ (Unit price – Unit variable Costs)

What are three basis’ of pricing?

1)    Cost

a.     Sees cost as the starting point for thinking about pricing

b.     Doesn’t take the customer into account

c.     Taken by itself, is not really a marketing approach

2)    Competition

a.     Competitor’s pricing decisions are the starting point for thinking about pricing

b.     Assumes pricing does not happen in a competitive vaccum

c.     Importance increases when competing products are relatively homogeneous

d.     May require frequent price changes

3)    Demand

a.     Understanding customer is starting point for thinking about pricing

b.     Studies customers preferences

c.     Customers pay higher price when demand is strong & lower when demand is weak

d.     Effectiveness depends on marketers ability to estimate demand accurately

e.     Embodies the marketing concept

What are some objectives of pricing?

1)    Market Share

2)    Survival

3)    ROI

4)    Profit

5)    Cash Flow

What are the steps in price setting?

1)    Determine Pricing objectives

2)    Asses Markets response to Price

3)    Evaluate Competitors prices

4)    Select basis for pricing

5)    Select pricing strategy

6)    Set specific price

How are Price and Value related in the customer’s mind?

1)    Price varies with:

a.     Product type

b.     Type of target market

c.     Purchase situation

2)    Value focus:

a.     Combines product’s price & quality attributes

b.     Helps customers differentiate products

c.     Guides marketers in evaluation of importance of price to the customer

Art History 207c : Vocab

Happenings: a performance, event or situation meant to be considered art.

Action painting: a style in which paint is spontaneously dribbled, splashed, or smeared onto the canvas, rather than being carefully applied, resulting in a work that emphasizes the physical act of painting itself.  Also know as “gestural abstraction.”

Dada: Lack of reason.  Nonsense.  Supposed to bring out laughter and embraces comedic nature.  Lighthearted response to dramatic events.

Photomontage: a work created from pasted photographs and popular images

Readymade: a mass-produced object selected by an artist and displayed as a work of art.

Analytical Cubism:  A style created by Picasso and Braque from 1909-1912 that focused on the breaking up or, “analysis” of forms

Synthetic Cubism: The second major phase of Cubism, originally made by Braque and Picasso from 1912-14 that combines or “synthesize” extant objects

Dionysian and Apollonian:  Human tendencies  discussed by philosopher Friedrich Nietzsche that refer to emotion and instinct (Dionysus) and rationality, order, and simplicity (Apollo)

Benday dots: Dots that convey a sense of texture and tone in printed and typeset material.

Earthwork: a work of art consisting of modification of a large piece of land.

Primitivism:  The borrowing of subjects or forms usually from a nonwestern prehistoric source.  Originally practiced by Western artists as an attempt to infuse their work with naturalistic and expressive qualities attributed to some other culture.