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.