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50 Cards in this Set
- Front
- Back
Promotions (different activities) |
advertising, price promotions, pr campaigns, events |
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what do promotional tools do |
help increase awareness, help enhance appeal |
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types of price promos |
coupons, BOGO, sales, rebate |
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difference between advertising and promos |
Ads: long term, indirect path to sales, slow results, one way communication to customers
Promos: short term, direct path to sales, quick results, immediate incentive for customers |
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sales promotion mix |
customers (pull), retailers (push*), sales force (encourage)
*sometimes doesn't work b/c retailers don't pass promotions to customers |
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common reasons for using promos as a tool DBANTSM |
capture attention, attract new customers, induce trial of new product, gather data on customers, get people to buy more, defend share (against competitors' promos), enhance merchandising & sales force support |
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positive short term impact of promos data point |
On average, a 10% promotional price cut leads to a 25.5% same-week sales increase for promoted brand. |
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positive short term impact of promos why it happens |
purchases by new customers (Primary demand increase, Brand switchers)
Increased purchases by existing customers |
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promos used by brandswitching customers |
leads to cannibalization of a brand's products (new customers also only buying in short term) |
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promos used by existing customers |
-stockpiling--cuts away from future profits -promos sell items at costs that are lower than what customers are willing to pay |
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downsides and risks of promos GW |
-Greedy Retailers, abuse by trade -Discounts are easy to imitate…leading to price -not much positive long-term impact -Running a promotion can be costly (may increase revenue but not profitability) -Promos can increase customers’ price sensitivity & as their reference price drops, brand image |
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strategic use of promos specific objective |
-Introduce a new brand -better with smaller new products |
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aspects of strong promo |
– Deter imitation & attract buyers quickly |
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what does a strategic promo accomplish |
reinforce brand image, enhance loyalty, engage |
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experiential marketing |
marketing strategy that directly engages consumers and invites and encourages consumers to participate in the evolution of a brand. |
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hierarchy of effects model |
awareness-knowledge-liking-preference--conviction-purpose cognition (a-l) affect (l-p) behavior/action (c-p) |
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what function do ads serve |
Awareness / Informational Function |
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primary price considerations |
To begin with, obvious economic inputs: |
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cost-based pricing approaches |
-mark-up approach only take cost into account • Break-even or target return approaches |
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grp |
The purpose of the GRP metric is to measure impressions in relation to the number of people in the target for an advertising campaign. GRP values are commonly used by media buyers to compare the advertising strength of components of a media plan.
GRPs (%) = 100 * Impressions (#) ÷ Defined population (#) |
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walter dill scott |
have to appeal to consumer's psychology to get them to buy product |
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Value-based Pricing & target costing |
constructing price to meet consumer ideals--costs are controlled to ensure price is met (e.g Henry Ford) |
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traditional approach to price
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-- Maximizes short-run profits |
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marketing approach to price |
Maximizes long-run profits |
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Perceived Value |
Perceived Value (“consumer surplus”)= |
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Direct Methods for Assessing value |
-Direct Price-Rating: name a price Perceived-Value-Rating Method: relative allocation |
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Perceived-Value-Rating Method |
Price = (rating / (100 / # of products)) * average price |
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CONJOINT ANALYSIS what's it for |
used to figure out how consumers value or |
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CONJOINT ANALYSIS how it works |
consumers ranks products w/ various features, data analysis estimates the psychological trade-offs consumers make when evaluating several attributes together. |
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marketing approach to price summary |
emphasizes perceived value to the customer |
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distribution channel |
• A channel of distribution is a set of interdependent firms that collaborate to make a product or service available for end-use consumption. |
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Why are channel partners often needed? |
– Cost advantages - Insufficient capital for direct selling, or better rate of return on core business with partners |
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channel options |
-direct channels -agents and brokers -merchants -facilitators |
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Vertical Marketing Systems (VMS): channel system type |
– Corporate – single ownership |
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4 primary considerations of Choosing a |
1. cost efficiency--carrot v. stick 2. what do customers want? Complexity of buying decision, level of “touch” needed, coverage expected, etc. 3. Quality and breadth of services different partners can 4. control |
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value added services of distributor |
on site training, special demos, promo assistance, pr |
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horizontal channel conflict |
horizontal--conflict on the same level (e.g. car dealership lowering prices and affecting other dealerships in the same area)
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vertical channel conflict |
vertical--when corporate/top-down initiatives disrupt ability to sell (e.g. KFC selling grilled chicken upset franchisers) |
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multi-channel conflict |
selling online vs. in-store (e.g. matel going online b4 Christmas--direct selling created competition w/ retailers) --can combat by only selling certain items online |
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Determining advertising budget |
• Make advertising a percentage of sales—may become a self-defeating cycle o If sales are down you spend less on ads when you should be spending more • Competitive parity—may want to spend more than established market share for expansion purposes o SOM (share of market) o SOV (share of voice) |
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using fear in ads |
As that focus on fear/threats are focused on social disapproval or concrete physical danger
Ads that are too explicit or dramatic makes the consumer shutdown and ignore it
Ads must illustrate the “way out”—steps to prevent the disaster |
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media ad spend in order |
-TV, digital, print -total spend and percentage of spend is low for new media -US Consumers’ Time on Digital Outpaces Marketers’ Spending |
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digital marketing forms |
-corporate website -affiliate programs (links to 3rd party merchant site like Amazon) -search engine marketing (e.g. Google's ad words) -display (banner) ads -opt-in texts, direct email, social media, mobile games |
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mobile marketing |
• Mobile marketing needs to have active component, drive interaction, drive to retail outlets… |
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IMC definition |
The application of consistent brand messaging across both traditional and non-traditional marketing channels. |
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Digital targeting |
—panel research is when companies pay a person to download software onto their computer so the company can track their interactions |
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Manipulative practices |
Manipulative practices further the organization’s goals at the expense of the customer(s), by offering false promises,insincere communications, or artificially engineering situations to limit choice.
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market deceptions |
-stealth marketing -raising fears/anxieties -promote feelings of inadequacy -in-school corporate ads bypass parents -age compressions-children robbed of childhood -force gender stereotypes on children -encouraging bullying/peer pressure
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anticonsumerism tactics |
“Culture Jamming” tactics used by anti-consumerist socialmovements to get people to question conspicuousconsumption … often using shock tactics
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various media advertisers can utilize |
pg 466 |