Exam 4 Terms

Are the means by which firms attempt to inform, persuade, and remind consumers-directly or indirectly-about the products and brands they sell marketing communications Represent the voice of the company and its brands; they are a means by which the firm can establish a dialogue and build relationships with consumers. By strengthening customer loyalty, they can contribute to customer equity. communications Marketing Communications Mix: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor via print media (newspapers and magazines), broadcast media (radio and television), network media (telephone, cable, satellite, wireless), electronic media (audiotape, videotape, videodisk, CD-ROM, Web page), and display media (billboards, signs, posters). advertising Marketing Communications Mix: Short-term incentives to encourage trial or purchase of a product or service including consumer promotions (such as samples, coupons, and premiums), trade promotions (such as advertising and display allowances), and business and sales force promotions (contests for sales reps). sales promotions Marketing Communications Mix: Company-sponsored activities and programs designed to create brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities. events and experiences Marketing Communications Mix: Programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote to protect a company's image or individual product communications. public relations and publicity Marketing Communications Mix: Online activities and programs to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales. online and social media marketing
Marketing Communications Mix: A special form of online marketing that places communications on consumer's cell phones, smart phones, or tablets. mobile marketing Marketing Communications Mix: Use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit response or dialogue from specific customers and prospects. direct and database marketing Marketing Communications Mix: Face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders. personal selling Every ________ _________ delivers an impression that can strengthen or weaken a customer's view of a company brand contact Nine key factors in effective communication. Two represent the major parties—sender and receiver. Two represent the major tools—message and media. Four represent major communication functions—encoding, decoding, response, and feedback. The last element in the system is noise, random and competing messages that may interfere with the intended communication. macromodel __________ of marketing communications concentrate on consumers' specific responses to communications micromodels These models assume the buyer passes through cognitive, affective, and behavioral stages in that order. response hierarchy models This ____________ sequence is appropriate when the audience has high involvement with a
product category perceived to have high differentiation, such as an automobile. learn-feel-do This ____________ sequence is relevant when the audience has high involvement but perceives little or no differentiation within the product category, such as airline tickets. do-feel-learn This ____________ sequence is relevant when the audience has low involvement and perceives little differentiation, such as with salt. learn-do-feel Process of developing effective communications starts with identifying the _________ ________: potential buyers of the company's products, current users, deciders, or influencers, as well as individuals, groups, particular publics, or the general public. Is a critical influence on the communicator's decisions about what to say, how, when, where, and to whom target audience We can also conduct ______ _____ by profiling the target audience's brand knowledge image analysis Set the Communication Objectives: Establishing a product or service category as necessary for removing or satisfying a perceived discrepancy between a current motivational state and a desired motivational state. establish need for category Set the Communication Objectives: Fostering the consumer's ability to recognize or recall the brand in sufficient detail to make a purchase build brand awareness Set the Communication Objectives: Helping consumers evaluate the brand's perceived ability to meet a currently relevant need. Relevant brand needs may be negatively oriented (problem removal, problem avoidance, incomplete satisfaction, normal depletion) or positively oriented (sensory gratification, intellectual stimulation, or social approval) build brand attitude
Set the Communication Objectives: Moving consumers to decide to purchase the brand or take purchase-related action influence brand purchase intention Formulating the communications to achieve the desired response requires answering three questions: what to say (message strategy), how to say it (creative strategy), and who should say it (message source). design the communications Design the Communications: In selecting _________ _________, management searches for appeals, themes, or ideas that will tie in to the brand positioning and help establish points-of-parity or points-of-difference. Some of these appeals or ideas may relate directly to product or service performance (the quality, economy, or value of the brand); others may relate to more extrinsic considerations (the brand as being contemporary, popular, or traditional). message strategy Design the Communications: Are the way marketers translate their messages into a specific communication. We can broadly classify them as either informational or transformational appeals creative strategy Creative Strategy: Elaborates on product or service attributes or benefits; the best ask questions and allow readers and viewers to form their own conclusions (One-sided vs. two-sided arguments). informational appeal Creative Strategy: Elaborates on a nonproduct-related benefit or image (Negative/fear vs. Positive appeals). Communicators use negative appeals such as fear, guilt, and shame to get people to do things (brush their teeth) or stop doing things (smoking). Communicators also use positive emotional appeals such as humor, love, pride, and joy. Motivational or "borrowed interest" devices—such as cute babies or frisky puppies—are often employed to attract attention and raise involvement with an ad. It might depict what kind of person uses a brand (VW advertised to active, youthful people with
its "Drivers Wanted" campaign) or what kind of experience results from use (Pringles advertised "Once You Pop, the Fun Don't Stop"). Often attempt to stir up emotions that will motivate purchase. transformational appeal Design the Communications: Research has shown that the source's credibility is crucial to a message's acceptance. The three most often identified sources of credibility are expertise, trustworthiness, and likability. message source Is the specialized knowledge the communicator possesses to back the claim expertise Describes how objective and honest the source is perceived to be trustworthiness Describes the source's attractiveness, measured in terms of candor, humor, and naturalness likability If a person has a positive attitude toward a source and a message or a negative attitude toward both, a state of ______ is said to exist. congruity Implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lost some esteem with the audience principle of congruity Let two or more persons communicate face to face or person to audience through a phone, surface mail, or e-mail. They might derive their effectiveness from individualized presentation and feedback and include direct marketing, personal selling, and word of mouth. personal communication channels Personal Communication Channels: Consist of company salespeople contacting buyers in the target market. advocate channels
Personal Communication Channels: Consist of independent experts making statements to target buyers. expert channels Personal Communication Channels: Consist of neighbors, friends, family members, and associates talking to target buyers. social channels Are communications directed to more than one person and include advertising, sales promotions, events and experiences, and public relations. nonpersonal channels Although personal communication is often more effective than mass communication, mass media might be the major means of stimulating it. Mass communications affect personal attitudes and behavior through a two-step process. Ideas often first flow from radio, television, and print to opinion leaders or consumers highly engaged with media and then from these influencers to less media-involved population groups. integration of communications channels Budgeting Method: Setting the communications budget at what managers think they can afford. affordable method Budgeting Method: Setting expenditures at a specified percentage of current or anticipated sales or of the sales price percentage of sales method Budget Method: Setting communications budget to achieve share-of-voice parity with competitors competitive parity method Budget Method: Setting the budget by defining specific objectives. Identifying the tasks that must be performed to achieve the objectives, and estimating the costs of performing them.
objective and task method Marketing Communications Mix Characteristics: - Pervasiveness - Dramatizes brands - Focus on brand aspects advertising Marketing Communications Mix Characteristics: - Draws attention - Incentive - Invitation sales promotion Marketing Communications Mix Characteristics: - Relevant - Engaging - Indirect soft sell events and experiences Marketing Communications Mix Characteristics: - High credibility - Ability to reach hard-to-find prospects - Ability to tell story of company/brand public relations and publicity Marketing Communications Mix Characteristics: - Information-rich or entertainment-rich - Can be changed or updated - Can be prepared and diffused quickly online and social media marketing Marketing Communications Mix Characteristics: - Time-sensitive - Can reach and influence consumers at purchase - Are always at consumers' fingertips mobile marketing
Marketing Communications Mix Characteristics: - Personalized - Used to create attention with a call to action - Offer information that helps other communications direct and database marketing Marketing Communications Mix Characteristics: - Customized - Relationship-oriented - Response-oriented personal selling Consumer marketers tend to spend comparatively more on sales promotion and advertising; business marketers tend to spend comparatively more on personal selling. Even in business markets, advertising still plays a significant role in introducing the firm and its products, explaining product features, reminding customers of offerings, generating leads for sales follow- up, legitimizing the firm, and reassuring customers about purchases. In consumer markets, a trained company sales force can help persuade dealers to take more stock and allocate more shelf space to the brand. Sales reps can also build dealer enthusiasm, sign up more dealers, and increase sales at existing accounts. (Consumer vs. business marketers; Advertising/sales promotion vs. personal selling) type of product market In the __________ stage of the product life cycle, advertising, events and experiences, and publicity have the highest cost-effectiveness, followed by personal selling to gain distribution coverage and sales promotion and direct marketing to induce trial. introduction In the __________ stage of the product life cycle, demand has its own momentum through word of mouth and interactive marketing. growth In the __________ stage of the product life cycle, advertising, events and experiences, and personal selling all become more important maturity
In the __________ stage of the product life cycle, sales promotion continues strong, other communication tools are reduced, and salespeople give the product only minimal attention decline A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time. integrated marketing communications (IMC) Can occur across and within media types, but marketers should combine personal and nonpersonal communication channels through multiple-vehicle, multiple-stage campaigns to achieve maximum impact and increase message reach and impact media coordination Can be a cost-effective way to disseminate messages, whether to build a brand preference or to educate people advertising In developing an advertising program, marketing managers start by identifying the target market and buyer motives. Then they can make the five major decisions known as "the five Ms": _______ What are our advertising objectives? _______ How much can we spend, and how do we allocate our spending across media types? _______ What should the ad campaign say? _______ What media should we use? _______ How should we evaluate the results? mission, money, message, media, measurement Is a specific communications task and achievement level to be accomplished with a specific audience in a specific period of time. advertising objective ____________ advertising aims to create brand awareness and knowledge of new products or new features of existing products informative ____________ advertising aims to create liking, preference, conviction, and purchase of a product or service.
persuasive Some persuasive advertising is ____________ advertising, which explicitly compares the attributes of two or more brands comparative ____________ advertising aims to stimulate repeat purchase of products and services reminder ____________ advertising aims to convince current purchasers they made the right choice. Automobile ads often depict satisfied customers enjoying special features of their new car reinforcement If the product class is _______, the company is the market leader, and brand usage is low, the objective is to stimulate more usuage mature If the product class is _______, the company is not the market leader, and the brand is superior to the leader, the objective is to convince the market of the brand's superiority new Deciding on the Advertising Budget: New products typically merit large advertising budgets to build awareness and gain consumer trial. Established brands usually are supported by lower advertising budgets, measured as a ratio to sales. stage in the product life cycle Deciding on the Advertising Budget: High-market-share brands usually require less advertising expenditure as a percentage of sales to maintain share. Building share by increasing market size requires larger expenditures. market share and consumer base Deciding on the Advertising Budget: In a market with a large number of competitors and high advertising spending, a brand must advertise more heavily to be heard. Even advertisements not directly competitive to the brand create clutter and a need for heavier advertising.
competition and clutter Deciding on the Advertising Budget: The number of repetitions needed to put the brand's message across to consumers has an obvious impact on the advertising budget. advertising frequency Deciding on the Advertising Budget: Brands in less-differentiated or commodity-like product classes (beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image. product substitutability This is an elaboration of the positioning strategy and includes considerations such as key message, target audience, communication objectives (to do, to know, to believe), key brand benefits, supports for the brand promise, and media creative brief -Advertisers must not make false claims -Must not use false demonstrations -Must not create ads with the capacity to deceive -Must avoid bait-and-switch advertising legal and social issues Is finding the most cost-effective media to deliver the desired number and type of exposures to the target audience media selection The number of different persons or households exposed to a particular media schedule at least once during a specified time period - Is most important when launching new products, flanker brands, extensions of well-known brands, and infrequently purchased brands or when going after an undefined target market. reach (R) The number of times within the specified time period that an average person or household is exposed to the message. - Is most important where there are strong competitors, a complex story to tell, high consumer resistance, or a frequent-purchase cycle.
frequency (F) The qualitative value of an exposure through a given medium (thus, a food ad will have a higher impact in Bon Appetite than in Fortune magazine) impact (I) ________ ________, or out-of-home advertising, is a broad category including many creative and unexpected forms to grab consumers' attention where they work, play, and shop. Popular options include billboards (including 3D images), public spaces (such as on movie screens and on fitness equipment), product placement (in movies and television), and point of purchase place advertising Reaching consumers where buying decisions are made through ads on shopping carts, in-store demonstrations' and live sampling point of purchase (P-O-P) Selecting Specific Media Vehicles - -Media planners must choose most cost-effective vehicles and must estimate audience _________, _________, ______ ______, and _____ per thousand persons reached size, composition, media cost, cost The _______________ decision relates to seasons and the business cycle. Suppose 70% of a product's sales occur between June and September. The firm can vary its advertising expenditures to follow the seasonal pattern to oppose the seasonal pattern, or the be constant throughout the year. macroscheduling The _______________ decision calls for allocating advertising expenditures within a short period to obtain maximum impact. Advertising can be concentrated ("burst" advertising), dispersed continuously throughout the month, or dispersed intermittently. microscheduling In launching a new product, the advertiser must choose amount ______, ______, ______, and _______ continuity, concentration, flighting, pulsing
Means exposures appear evenly throughout a given period. - Generally, advertisers use continuous advertising in expanding markets, with frequently purchased items, and in tightly defined buyer categories. continuity Calls for spending all the advertising dollars in a single period, which makes sense for products with one selling season or related holiday. concentration Calls for advertising during a period, followed by a period with no advertising, followed by a second period of advertising activity. - It is useful when funding is limited, the purchase cycle is relatively infrequent, or items are seasonal. flighting Is continuous advertising at low levels, reinforced periodically by waves of heavier activity, to help the audience learn the message more thoroughly at a lower cost to the firm pulsing ___________________ ________, called copy testing, seeks to determine whether an ad is communicating effectively. Marketers should perform this test both before an ad is put into media and after it is printed or broadcast. Many advertisers use posttests to assess the overall impact of a completed campaign. communication-effect research A company's share of ___________ ___________ produces a share of voice (proportion of company advertising of that product to all advertising of that product) that earns a share of consumers' minds and hearts and ultimately, , a share of market advertising expenditures Researchers can measure sales impact with the ___________ ___________, which uses advanced statistical techniques to correlate past sales to past advertising expenditures. Other researchers use _____________ ___________ to measure advertising's sales impact. historical approach, experimental data A key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by
consumers or the trade. sales promotion Advertising offers a _______ to buy, whereas sales promotion offers an _________ reason, incentive Some sales promotion tools are __________ _____________ _________. They impart a selling message along with the deal, such as free samples, frequency awards, coupons with a selling message, and premiums related to the product. Sales promotion tools that are typically not brand building include price-off packs, consumer premiums not related to a product, contests and sweepstakes, consumer refund offers, and trade allowances. consumer franchise building Sales Promotion - Establishing Objectives: For ________, objectives include encouraging more frequent purchases or purchase of larger- sized units among users, building trial among nonusers, and attracting switchers away from competitors' brands. consumers Sales Promotion - Establishing Objectives: For ________, objectives include persuading retailers to carry new items and more inventory, encouraging off-season buying, encouraging stocking of related items, offsetting competitive promotions, building brand loyalty, and gaining entry into new retail outlets. retailers Sales Promotion - Establishing Objectives: For the ________ ________, objectives of promotion include encouraging their support of a new product or model, encouraging more prospecting, and stimulating off-season sales. sales force Sales Promotion - Selecting Consumer Promotion Tools: ____________ promotions in the auto industry, for instance, are rebates gifts to motivate test drives and purchases, and high-value trade-in credit manufacturing Sales Promotion - Selecting Consumer Promotion Tools:
____________ promotions include price cuts, feature advertising, retailer coupons, and retailer contests or premiums retailer In deciding to use a particular incentive, marketers must determine the _______ of the incentive, the ______ for participation, the _______ of the promotion, the ________ _______, the ______, and the total sales promotion _______. size, conditions, duration, distribution vehicle, timing, budget Are "packaged environments" that create or reinforce leanings toward product purchase. (e.g., a five-star hotel will use elegant chandeliers, marble columns, and other tangible signs of luxury) atmospheres Is a particularly important skill in publicizing fund-raising drives for nonprofit organizations event creation The _______-side method for measuring an events success assess media coverage; for example, the number of seconds the brand is clearly visible on a television screen supply The _______-side method identifies the sponsorship's effect on consumers' brand knowledge demand A large part of local, grassroots marketing is _______ _________, which not only communicates features and benefits but also connects a product or service with unique and interesting experiences experiential marketing A ________ is any group that has an actual or potential interest in or impact on a company's ability to achieve its objectives public Includes a variety of programs to promote or protect a company's image or individual products public relations (PR)
Many companies use ______ ________ _________ to support corporate or product promotion and image marketing marketing public relations (MPR) The old name for MPR was ___________, the task of securing editorial space - as opposed to paid space - in print and broadcast media to promote or hype a product, service, idea, place, person, or organization publicity The internet also offers the advantage of ________ ________, buying ads on sites related to the marketer's own offerings contextual placement Individual Web pages or clusters of pages that function as supplements to a primary site. They're particularly relevant for companies selling low-interest products microsites In _________ ______, marketers bid on search terms that serve as a proxy for the consumer's product or consumption interests. paid search Advertisers pay only if people click, but marketers believe consumers who have already expressed interest by engaging in search are prime prospects. pay per click Describes activities designed to improve the likelihood that a link for a brand is as high as possible in the rank order of all nonpaid links when consumers search for relevant terms search engine optimization (SEO) _______ ads or _______ ads are small, rectangular boxes containing text and perhaps a picture that companies pay to place on relevant Web sites. The larger the audience, the higher the cost display, banner Are advertisements, often with video or animation, that pop up between page changes within a Web site or across Web sites. Because consumers find such pop-up ads as intrusive and distracting, many use software to block them.
interstitials _________ allows marketers to inform and communicate with customers at a fraction of the cost of direct mail. Can be very productive selling tools. The rate at which they prompt purchase has been estimated to be at least three times that of social media ads, and the average order value is thought to be 17 percent higher. e-mail Are a means for consumers to share text, images, audio, and video information with each other and with companies, and vice versa social media Is a form of online WOM or "word of mouse," that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online. With user-generated content sites such as YouTube, Vimeo, and Google Video, consumers and advertisers can upload ads and videos to be shared by millions of people vital marketing Bite sized software programs that can be downloaded to smart phones. Apps can perform useful functions—adding convenience, social value, incentives, and entertainment and making consumers' lives a little or a lot better. mobile apps Is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen. direct marketing Direct marketers can use a number of channels to reach individual prospects and customers: direct mail, catalog marketing, telemarketing, interactive TV, kiosks, Web sites, and mobile devices. They often seek a measurable response, typically a customer order, through _______ _______ __________. direct order marketing Means sending an offer, announcement, reminder, or other item to an individual; Is popular because it permits target market selectively, can be personalized, is flexible, and allows early testing and response measurement. direct mail marketing
Direct marketers apply the _________, _______, ________ _________ formula to select customers according to how much time has past since their last purchase, how many times they have purchases, and how much they have spent since becoming a customer recency, frequency, monetary amount (RFM) Direct Marketing - the offer strategy has five elements which are: product, offer, medium, distribution method, creative strategy Response rates typically understate a campaigns long-term impact. To better estimate a promotion's impact, some companies measure the impact of direct marketing on _________, _________ ___ ______, and _______ ____ _____ awareness, intention to buy, word of mouth By adding up the planned campaign costs, the direct marketer can determine the needed break- even response rate (net of returns and bad debts). A specific campaign may fail to break even in the short run but can still be profitable in the long run if __________ ________ _________ is factored in. customer lifetime value Companies may send full-line merchandise catalogs, specialty consumer catalogs, and business catalogs, usually in print form but also as DVDs or online. catalog marketing Is the use of the telephone and call centers to attract prospects, sell to existing customers, and provide service by taking orders and answering questions telemarketing Companies use call centers for ___________ telemarketing - receiving calls from customer inbound Companies use call centers for ___________ telemarketing - initiating calls to prospects and customers outbound
Some companies prepare 30- and 60-minute _________ to combine the selling power of television commercials with the draw of information and entertainment; Promote products that are complicated or technologically advanced or that require a great deal of explanation. infomercials Some companies believe a proprietary ___________ _________ can provide the company with a significant competitive advantage. customer database Customer Database for Direct Marketing: Many companies generate sales leads by advertising their product or service and including a response feature, such as a link to a home page, a business reply card, or a toll-free phone number, and building a database from customer responses. The company sorts through the database to identify the best prospects, then contacts them by mail, e-mail, or phone to try to convert them into customers. identify prospects Customer Database for Direct Marketing: Companies interested in selling, up-selling, and cross-selling set up criteria describing the ideal target customer for a particular offer. Then they search their customer databases for those who most closely resemble the ideal. decide which customers should receive a particular offer Customer Database for Direct Marketing: Companies can build interest and enthusiasm by remembering customer preferences and sending appropriate gifts, discount coupons, and interesting reading material. deepen customer loyalty Customer Database for Direct Marketing: Reactive customer purchases - __________ __________, can send out birthday or anniversary cards, holiday shopping reminders, or off-season promotions. automatic marketing Customer Database for Direct Marketing: Capturing all transactions and communications in a customer database can save companies from mistakes such as making conflicting offers to one customer and not providing proper service to good customers. avoid serious customer mistakes
-Some situations are just not conductive to database marketing -Building and maintaining a customer database require a large investment -Employees may resist becoming customer-oriented and using the available information -Not all customers want a relationship with the company -The assumptions behind CRM may not always hold true downside of database marketing The term ______ ________ covers six positions, ranging from the least to the most creative types of selling: 1. deliverer 2. order taker 3. missionary 4. technician 5. demand creator 6. solution vendor sales representative Types of Sales Representatives: A salesperson whose major task is the delivery of a product (water, fuel, oil). deliverer Types of Sales Representatives: An inside order taker (standing behind the counter) or outside order taker (calling on the supermarket manager). order taker Types of Sales Representatives: A salesperson not permitted to take an order but expected rather to build goodwill or educate the actual or potential user (the medical "detailer" representing an ethical pharmaceutical house). missionary Types of Sales Representatives: A salesperson with a high level of technical knowledge (the engineering salesperson who is primarily a consultant to client companies). technician
Types of Sales Representatives: A salesperson who relies on creative methods for selling tangible products (vacuum cleaners, cleaning brushes, household products) or intangibles (insurance, advertising services, or education). demand creator Types of Sales Representatives: A salesperson whose expertise is solving a customer's problem, often with a system of the company's products and services (for example, computer and communications systems). solution vendor Six Major Steps in Effective Selling: Firms generate leads and qualify them by mail or phone to assess their level of interest and financial capacity. The purpose is to allow salespeople to use their expensive time doing what they do best: selling. prospecting and qualifying Six Major Steps in Effective Selling: The sales rep researches what the prospect needs, how the buying process operates, who is involved in buying, and buyers' personal characteristics and buying styles. The rep also sets call objectives to qualify the prospect, gather information, or make an immediate sale; decides on the best contact approach—a personal visit, phone call, e-mail, or letter; plans the timing of the approach; and sets overall sales strategy for the account. preapproach Six Major Steps in Effective Selling: The salesperson tells the product "story" to the buyer, using a features, advantages, benefits, and value approach. Reps should be engaging and avoid spending too much time on features and not enough on benefits and value. presentation and demonstration Six Major Steps in Effective Selling: Salespeople must handle objections raised by buyers by maintaining a positive approach, asking buyers to clarify the objections, asking questions in such a way that buyers answer their own objections, denying the validity of the objection, or turning it into a reason for buying overcoming objections
Six Major Steps in Effective Selling: Reps can ask for the order, recapitulate the points of agreement, offer to help write up the order, ask whether the buyer wants A or B, get the buyer to make minor choices such as color or size, or indicate what the buyer will lose by not placing the order now. The salesperson might offer specific inducements to close, such as an additional service, an extra quantity, or a token gift. closing Six Major Steps in Effective Selling: To ensure customer satisfaction and repeat business, the rep salesperson should confirm details about delivery, purchase terms, and other matters important to the customer. Also, the rep should schedule a follow-up call to ensure proper installation, instruction, and servicing and to detect any problems, assure the buyer of his or her interest, and reduce any cognitive dissonance. Each account needs a maintenance and growth plan as well. follow up and maintenance Sales Force: - Prospecting - Targeting - Communicating - Selling - Servicing - Information gathering - Allocating - Leveraged sales force - Direct (company) sales force - Contractual sales force objectives and strategy To manage costs, most companies are choosing a __________ ______ _____ that focuses reps on selling the company's more complex and customized products to large accounts and uses inside salespeople and online ordering for low-end selling leveraged sales force A ________ (company) sales force consists of dull- or part-time paid employees who work exclusively for the company. - Inside salespeople conduct business from the office and receive visits from prospective buyers, and field salespeople travel and visit customers direct
A ________ sales force consists of manufacturers' reps, sales agents, and brokers who earn a commission based on sales. contractual Sales Force: •Four types of sales forces -Strategic market sales force assigned to major accounts -A geographic sales force calling on customers in different territories -A distributor sales force calling on and coaching distributors -An inside sales force marketing and taking orders online and via phone structure Sales Force: __________ _________ to sales force size 1.Group customers into size classes according to annual sales volume 2.Establish desirable call frequencies 3.Multiply the number of accounts in each size class by the call frequency to arrive at the total workload 4.Determine the average number of calls a sales representative can make per year 5.Divide the total annual calls by the average annual calls made by a sales rep to arrive at the number of sales reps needed workload approach Sales Force: Four components of sales force _________ -Fixed amount -Variable amount -Expense allowances -Benefits compensation A salary, satisfies the need for income stability fixed amount Whether commissions, bonus, or profit sharing, serves to stimulate and reward effort variable amount Enables sales reps to meet the costs of travel and entertaining on the company's behalf
expense allowances Such as paid vacations, provide security and job satisfaction benefits ________ compensation is common in jobs with a high ratio of nonselling to selling duties and in jobs where the selling task is technically complex and requires teamwork. Such compensation plans provide a secure income, encourage reps to complete nonselling activities, and reduce incentive to overstock customers. For the firm, these plans deliver administrative simplicity and lower turnover. fixed _________ compensation works best where sales are cyclical or depend on individual initiative. These plans attract higher performers, provide more motivation, require less supervision, and control selling costs, although they emphasize getting the sale over building the relationship. variable Compensation plans that - pay link the variable portion to a wide variety of strategic goals. One current trend deemphasizes sales volume in favor of gross profitability, customer satisfaction, and customer retention. Other companies reward reps partly on sales team or even company- wide performance, motivating them to work together for the common good. combine fixed and variable _______-_________ aspects of sales supervision - how management communicates what the sales reps should be doing and motivates them to do it. feed forward Good feed-forward requires good _________, which means getting regular information about reps to evaluate their performance. feedback Sales reps write up completed activities on ______ _____ call reports In a ______ ________, competitors' strategic positions in major geographic or national markets are affected by their overall global problems
global industry A _______ _______ operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not readily available to purely domestic competitors global firm Factors that draw companies into the international arena -Some international markets present better profit opportunities than the domestic market -Firm needs larger customer base to achieve economies of scale -Firm wants to reduce dependence on any one market -Firm counterattacks global competitors in home markets -Customers going abroad require international service Before making a decision to go abroad, the company must also weigh several risks -Firm might not understand foreign preferences, failing to offer competitively attractive product -Firm might not understand foreign country's culture -Firm might not deal effectively with foreign regulations -Firm might lack managers with international experience -Foreign country might change commercial laws, devalue currency, or expropriate foreign property deciding whether to go abroad Market Entry Strategies: Gradually entering countries in sequence waterfall approach Market Entry Strategies: Entering many countries simultaneously sprinkler approach Market Entry Strategies: Increasingly, firms - especially technology-intensive firms or online ventures - are _______ ________ and market to the entire world from the outset born global Deciding How to Enter the Market: Companies typically start with ________ _________, working through independent
intermediaries indirect exporting Deciding How to Enter the Market: Requires less investment and risk direct exporting Deciding How to Enter the Market: Licensor issues a license to a foreign company to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty licensing Deciding How to Enter the Market: Foreign investors may join local investors in a ______ ______ company in which they share ownership and control, sometimes desirable for political or economic reasons joint venture Deciding How to Enter the Market: The ultimate form of foreign involvement is direct ownership: The foreign company can buy part or full interest in a local company or build its own manufacturing or service facilities direct investment Deciding on the Market Program: ____________ marketing program worldwide, which promises the lowest costs Advantages: - Economies of scale in production and distribution - Lower marketing costs - Power and scope - Consistency in brand image - Ability to leverage good ideas - Uniformity of marketing practices Disadvantages: - Differences in consumer needs, wants, usage - Differences in consumer response to marketing programs - Differences in brand development process - Differences in legal environment, institutions, administrative procedures standardized
Deciding on the Market Program: ____________ marketing program in which the company, consistent with the marketing concept, believes consumer needs vary and tailors marketing to each group adapted Product Strategies: Introduces the product in the foreign market without any change, a successful strategy for consumer electronics, among other products straight extension Product Strategies: Alters the product to meet local conditions or preferences, developing a regional version of its product, a country version, a city version, or different retailer versions product adaptation Product Strategies: Creates something new product invention Product Strategies: _________ invention - reintroducing earlier product forms well adapted to a foreign country's need backward Product Strategies: __________ invention - creating a new product to meet a need in another country forward Changing marketing communications for each local market is a process called communication adaptation If it adapts both the product and the communications, the company engages in _________ __________ dual adaptation
Multinationals selling abroad must contend with _______ _______, raising the price to cover the added cost of transportation tariffs, middleman margins, and the risk of currency fluctuations so it can earn the same profit. price escalation Many multinationals are plagued by the _______ ______, which diverts branded products from authorized distribution channels either in-country or across international borders. Dealers in the low-priced country buy and ship the goods to another country to take advantage of price differences. Multinationals try to prevent these by policing distributors, raising their prices to lower-cost distributors, or altering product characteristics or service warranties for different countries gray market As companies develop global supply chain networks and move production farther from home, the chance for corruption, fraud, and quality-control problems rises. Sophisticated overseas factories seem able to reproduce almost anything. counterfeit products Are the mental associations and beliefs triggered by a country country of origin perceptions •Marketing succeeds only when all departments work together to achieve customer goals; Emphasizes that satisfying customers is the responsibility of all employees, not just those in the work department internal marketing Organizing the Marketing Department: Is the most common form of marketing organization, functional specialists (such as the marketing research manager) report to a marketing Vice President who coordinates their activities. The main advantage is administrative simplicity. functional organization Organizing the Marketing Department: A company selling in a national market often organizes its sales force (and sometimes its marketing) along geographic lines. Some companies are adding area market specialists (regional or local managers) to support sales efforts in high-volume markets. geographic organization
Organizing the Marketing Department: Companies producing a variety of products and brands often establish these organizations. This does not replace the functional organization but serves as another layer of management. A group product manager supervises product category managers, who in turn supervise specific product and brand managers. product or brand management organization Organizing the Marketing Department: When customers fall into different user groups with distinct buying preferences and practices, this type of organization is desirable. Market managers supervise several market-development managers, market specialists, or industry specialists and draw on functional services as needed. Market managers are staff, with duties like those of product managers. This organization shares many advantages and disadvantages of product-management systems. Many companies are reorganizing along market lines and becoming market-centered organizations. When customers have diverse and complex requirements, a customer- management organization, which deals with individual customers rather than the mass market or market segments, may be appropriate. market management organization Organizing the Marketing Department: Companies that produce many products for many markets may adopt this organization, employing both product and market managers matrix management organization Effective internal marketing must be matched by a strong sense of ethics, values, and _______ ________. - Companies need to understand the social pressures and opportunities facing their companies as they make decisions about investing in ---- social responsibility The ability to meet humanity's needs without harming future generations - now tops many corporate agendas sustainability Heightened interest in sustainability has also unfortunately resulted in ____________, which gives products the appearance of being environmentally friendly without living up to that promise
greenwashing Links the firms contributions toward a designated cause to customers' engaging directly or indirectly in revenue-producing transactions with the firm. cause related marketing Minette Drumwright and Patrick Murphy define as marketing efforts "that have at least one noneconomic objective related to social welfare and use the resources of the company and/or of its partners" corporate societal marketing (CSM) From a branding point of view, __________ _______ can: - Build brand awareness - Enhance brand image - Establish brand credibility - Evoke brand feelings - Create a sense of brand community - Elicit brand engagement cause marketing Cause-related marketing supports a cause. ______ _______ by nonprofit or government organizations furthers a cause, such as "say no to drugs" or "exercise more and eat better." social marketing
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