Marketing Final

1.marketing permeates society - can't get away from it
2. there are a lot of jobs in marketing
3. marketing costs a lot of money

the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization its stakeholders and society at large

a way of thinking or organizing that says all elements of business are oriented toward customer satisfaction at a long term profit -

product price place(distribution) promotion - combination of decisions you will make regarding the 4 p's - use it to satisfy customers

1. Define the target market - people you wish to serve
2. develop a marketing mix to satisfy the target

difficult to find - are beneificial because they 1. serve as a reference point 2. you can concentrate a firm or organization around a goal 3. serve as motivation 4. aid in decision making

the moral principles and values that govern the actions and decisions of an individual or group helps when faced with a moral dilemma

social, economic, technological, competitive, regulatory

arrangements to tap the flow of information that influences marketing management 3 components: Databases, marketing intelligence system and marketing research

facts and figures already recorded - part of marketing research

systematically gathering information

facts and figures newly colected for product - needs to be generated - part of marketing research

3 ways to sales forecast

consumer decision making process 5 steps

models partially explaining economic behavior

consumer behavior is learned result from repeated experience or reasoning

figure out why you purchase certain things- not only because of functionality but also symbolism

behavior of groups- social class affects consumption - psycological difference between groups - comsupmtion patterns are symbols of who you are

producing goods in one country and selling them in another country

a company offers the right to a trademark, patent, trade secret, or other similarly calued items of intellectual property in return for a royalty or a fee

when a foreign company and a local firm invest together to create a local business

a domestic firm investing in and owning a foreign subsidary or division

one of the buying center roles - what is it used for

one of the buying center roles research and development are important - work on specific problem

one of the buying center roles controller of information to you from within the organization

one of the buying center roles who decides to buy your product - most important

take a heterogeneous maket and dividng it into homogeneous subsets

no difference or segment- don't want to exclude any part of the market - want to satisfy everyone - market segmentation

firm choses multiple marketing mixes and seperates it into each market - market segmentation

chose marketing mix and focus on one target market - market segmentation

adoption process

people adopt new products at different times - innovators, early adopters, early majority, late majority,laggards

1. service quality is more difficult to evaluate than product quality
2. customer satisfaction with your service is based on a comparison of the customer's service expectations and the actual service performed by you
3. the customer evaluates both the service outcome and the service process

reliability, responsive, competence, access courtesy, communication, credibility, security, understanding, tangibles

middle men reduce
1. ___ of assortment - difference between manufactuere makes and what a consumer wants
2. ____ of quantity - difference between amount product makes and amount we want

why are middle men eliminated

kinds of distribution channels

elements of physical distribution

where we buy most of our stuff - all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use

cigaretts have come a long way - they used to be in a vending machin and wanted to raise a price to 22 cents but no one has right change put 3 pennies in package

catalogues- manzer receives tons of magazines

describes how new forms of retail outlets enter the market - usually they enter as low status, low margin stores - becomes higher status went to tulsa to buy razor in a warehouse - it moved up in cycle

a lot of migration from europe- john watamaker - brough over from Europ - put different departments all in one store - no walls - Ireland potato famine - North for Civil War took IRish off boats

Sears and Montgomery ward - Westward expansion - people in areas without stores can get anything - plows - Bug 10 Michigan Ohio, Iowa - began as western atheletic conference - Lincoln from west(Illinois)

stores all the same in different locations - Sears, Penny's, WWI people moving - cars if in one town and move you like to have same store in new town - urbanization

Great Depression - people want low cost items if make larger - more stuff lower prices - no jobs, hard living, roughlife, low service low margin

malls - WWII over - men come back don't want farm - cities crowded - move into suburbs- people go to shop down town - if put in suburb - successful resisted down town was social

Wal mart is not this!! low service, low margin, electric razors, appeared and disappeared in the 30s were succssful in the 50s because of brand names

Wal Mart - transportation - desire for a lot of stuff

now have cable and can use it to buy things

because of internet for research - data communication -1 disappeared and came back

part of the marketing mix - communication, advertising, etc. all of tools can be used to inform, persuade, and remind of benefits

combination of 1 or more communication tools is

primary functions of communication tools

controversial - dumb because people do it all the time - to go to class - political parties- banning happy meals with toys -

persuasion model - like a rhetorical question - someone directing information at an individual wo isn't interacting- cheerleaders, Hitler, Obama, Charisma - having a presence

persuasion model - has bad reputation - all it is is trying to win you to their cause- OSU uses in recruiting - Conoco Phillips commercial - prisine valley with natural gas unit

persuasion model - give or take with incentives and threats- NFL gives incentives, try to do this with grades, salary - secret is to be prepared and know what you are talking about - ask for base price

persuasion model - Sender--_encode-->message--_decode-->receiver - message is a set of meanings - perfect communication is when the receiver gets the exact message - problem - put into a code and the receiver must decode it - meanings are in people - saying nice shoes with different faces - flipping someone off -

part of the communication model - knowledge makes them up - background etc - if want to ensure perfect communication you need overlapping fields of experience - his mom talking about the depression - talk to athletic department for goal setting 8 am vs 8 pm - if proctor and gamble spend 3 billion on ads they want us to decode the message - must design it so they don't have much overlap

example of the power of an ____ - fixing part of line and making sure someone understands the problem and what he wants to happen to fix them

want to be trustable - trying to influence - expertise position power - people will automatically trust- why banks have so many vps- schmidlap example - trust people with titles - if someone says your boyfriend is cheating on you you trust them depending on who they are - punishment of juvenile delinquent experiment

enhance or decrease credibility - VP schmidlap - knows or doesn't know what hes talking about - on 1st day he discussed his background and built credibility - at dow made sure they knew he had chem degree - 25 yrs ago article - what atheletes are recognized -

between sender and message - people love consistency - stay in abusive relationship better than unknown - if parent sends message - don't smoke; consistent - if parent smokes it is not consistent - could be if hire to be spokesperson - if selling in hispanic area - use person with hispanic background - use john wayne and not elton john for remington rifle

advertisment, promotional selling, public relations

a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prespective customers, stockholders, suppliers, employees, and other publics about a company and its products or services - don't directly pay for this- won award put in newspaper - OSU sent articles to hometown - if receive it have credibility because it is from a nuetral source

a short term inducement of value offered to arouse interest in buying a good or service - used to support persoanal selling and ads - offer cheese in store with coupon in mail - joes switched to pepsi because they fixed the machine faster - and give this to customers- important to acknowledge the mistake

uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet - catalogues

Six c's of online shopping - 8 second rule -

functionality of holding the product - component of a product refers to any container in which it is offered for sale and on which lable info is contained - taco at bell - can - has communication benefits - coke - color- colors attract attention - choose yellow thing - must differentiate - shape matters too - mr clean micture - donald duck orange juice -

must be consistent - OSU didn't do it for a while - need to coordinate

to inform, to persuade, to remind, to phase out

channel strategy - start at top and push down - get wholesaler to take product to retailer to customer

channel strategy - at bottom and pull product through channel through promotion - ad to consumer -ask retailer for it as to wholesaler for it pharmecutical reps

usually by % of sales - makes no sense to do this because sales shouldn't generate ads reverse it if bad year then you must advertise more -

any paid form of nonpersonal communication about an organization - must design message to put in media to shift the demand curve - if company has more cost than the customer has more cost - if this cost goes up the others must go down - if making mroe product costs go down if price goes down faster than advertising goes up sell product for less

instutitional ad - builds good will or image for customer 1 advocacy or institutional

devoloping, executing, and evaluatin

super bowl ads cost a lot because they reach a lot of viewers

fear if yo udont do it bad things will happen(dandruff shampoo) - alarm system, moderate fear is best - history channel - guy in WWII only so many guys would live - in mcallister talking to managers of prision agreed that needed just enough - sex appeal is used in ads too - humor etc.

usually done before and after the ads are run know half my advertising is wasted but don't know which half - how to find out

conducted before the advertisements are placed in any medium - want to get something in return for the ad - make sure people are getting the message - AT&T fishing story - humorous - guys were making hamburgers and everyone missed that

test ads after they are put in - ultimately interested in sales - do you get sales for what you put in - difficult to directly measure- if put ad in the o colly you don't know that your sales came from it or some other reason

more commumication more sales - use tests to measure knowledge in class - doesn't directly work on it - 3 parts - exposure - awareness/recall - attitudes - part of post test

part of communication effect of post tests - 2 ways to do this aided or unaided -a multiple choice test would be considered aided

part of communication effect of post tests - if positive will act positively - talk to kid absent 10 times - not dropping course- it was his favorite class - positive ___ negative behavior

part of communication effect - measure directly - difficult but possible

form of sales promotion in movies - know they are using certain product - notice them - ET and reeses pieces - reversal of this is the Bubba Gump Shrimp Company- not too powerful - don't do drugs doesn't always work

the two way flow of communication between a buyer and seller ,often in a face to face encounter, designed to ifluence a person's or group's purchase decision - not at a retail store- field selling- require college- if objective is to get to top one way is though this - can't get to top with staff positions

why does personal selling get you to the top

personal selling in ____ very important - link to the customer - sales person becomes the company - expensive to have people in the field so it better generate a lot of sales

categories of selling jobs - majority of selling jobs - mc donalds - sales clerks - not very aggressive some of them require college education - frito inventory, campbells soup - stores place order - store is going to buy no matter what the question is how much

sales in conventional sense - aggressive approach to get orders- solve problem - identifies prospective customers to buy, closes sales, and follows up on customers' use of a product or service - working for xeros went to places trying to convince them to get a copier - got him to executive position

needs technical expertise - the t.v. glass/vaccuum example - latex and apoxy - there to support the order getter

dow just developed packing noodles- wanted bob grieser to introduce the companies that could use it and give the number of the order getter- bad job - another example would be pharmecuetical sales rep - pharmacy --_MD-->Customer - how do they know what to prescribe - the pharm sales rep -

this is what the order getter does - prospecting- preapproach - approach - presentation - close - follow up - might only do some of these but might do all of them

people are reluctant to ask for order- afraid of rejection - asking girls out example with Jim Pay - how did he get girls because hes so nerdy

planning the selling program and implementing and evaluating the personal selling effort of the firm - Ben Plansky - didn't want to be manager because he doesnt want to move, like his job, and had good pay and flexibility - doing this for sales people is difficult Ditch Witch has sales people all over the place - sets objectives and territories

effective ____ ____ and ______ __ ________ is one of the most crucial tasks of sales management. It entails finding people who match the type of sales position required by a firm - differ greatly between order taking and order getting - trying to match what you want with person you want to hire - not one person that can sell anything - Different selling situtations require different skills - ag guy vs airplane

part of recruitment and evaluation of sales person - resume, facebook, tests at interviews - AT&T interviewed him and gave him a job but he had a lazy eye - ended up working for dow

the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis - people with high emotional quotient are better than people with high IQ's

can take a week or months or over a year- he was inside sales person training to be outside - train you on product knowledge - Dow had a 2 week chemistry course -

go hand in hand - kid who is highly motivated to sleep - always motivated -getting paid

Theroy of motivation - do something because you expect to get something - must believe all 3 parts
1. increased effort yields increased preformance
2. increased preformance yields reward
3. reward is desireable

study 20 hours and get a d if you increase effort you will do better- sales person increase 5- 10 calls - won;t do it - as a manager - need to change how you study and wo you call

expect to get something- not always how it works if increase preformance 98% staff say no reward - can't believe the reward will be money

if money have problems- his son mowed lawn and hated it- did it while runnin and it looked bad - said son could drive his moms car to school

P up TR down P down TR up - inverse relationship between price and total revenue

P up TR up - P down TR down - direct relationship between price and total revenue

skim milk - skim the cream off the top - pricing policy - set high price and get the people willing to pay it then lower the price and sell more- when he got his dr. moved in to rent houes and lowered rent 6 mos later - but he had a contract need this: 1. operating in inelastic part of demand 2. make small quantities 3. have barrier to entry ( candy maker example)

new product set low price and penetrate the market then raise the price- 1. operate in elastic demand 2. large production quantity 3. barriers of entry - candy maker example

involves setting prices a few dollars or cents under an even number - possibly psychological - probably not really a hidden meaning theodore giesel - Dr. Suess and green eggs and ham - just trying to support family - making change to prevent theft

law affects the market
1. consumer protection laws- cigarette pack - calories
2. pro competition laws

disctiminate treat one group differently - pay gap etc. - discriminate on price to one group and not another - not illegal unless it harms competition - age - life insurance student would pay less than Manzer - car insurance - guys pay more than girls

want to be the _____ ____ if
1. have market power
2. be able to divide markets
3. prevent arbitrage - plexiglass and false teeth example