First Moment of Truth
the critical three to seven seconds that a shopper considers a product on a store shelf.
Product Line Classifications
-Specialty stores
-Department stores
-Convenience stores
-Superstores
-Category killers
Corporate chain
two or more outlets that are commonly owned and controlled.
(Macy's, Target, Kroger,CVS)
Voluntary chain
wholesaler sponsored group of independent retailers engaged in group buying and merchandising.
(True Value, Do-it Best, Western Auto)
Retailer cooperative
group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
Franchise organization
contractual association between a franchiser (manufacturer or wholesaler)and franchisees(independent business people who buy right to own and operate one or more units in franchise)
(McDonald's,Subway)
Retailer Marketing Decisions
Retail Strategy
-Retail segmentation
-Store differentiation and positioning
Retail Marketing Mix
-Product and Service assortment
-Retail prices and promotion
-Distribution
^^^^^^^^^^^^^^
Create value for targeted retail customers
the promotional mix
is the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.
Advertising
any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
(broadcast,print,online,mobile,outdoor)
Sales promotion
is a short-term incentive to encourage the purchase or sale of a product or service. (discounts, displays, demonstrations, coupon)
Personal selling
is the personal interaction by the firm's sales force for purpose of engaging customers, making sales, and building customer relationships.
Public relations
involves building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Direct and digital marketing
involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Integrated Marketing Communications
See figure 14.1 ( personal selling, direct digital marketing, advertising, sales promotion, Public Relations)
Steps in Developing Effective Marketing Communication
1.)Rational Appeal
2.)Emotional Appeal
3.)Moral Appeal
Rational appeal
relates to the audience's self-interest.
Emotional appeal
is an attempt to stir up positive or negative emotions to motivate a purchase.
Moral appeal
is directed to an audience's sense of what is right and proper.
Definition of Personal Selling
-Person to person communication with a prospect
-Personal selling is a process of:
Developing relationships
Discovering needs
Matching products with needs
Communicating benefits
-Viewed as a process that adds value
Business to Business
Examples:
-Pharmaceutical
-Printing
-Manufacturing
Business to Consumer
Examples:
-Retail stores
-Auto sales
-Financial Advisor
Salespeople
one of the company's most productive and expensive assets.
Workload approach
sales force size refers to grouping accounts into different classes to determine the number of salespeople needed.
Outside salespeople
call on customers in the field
Inside salespeople
conduct business from their offices and often provide support for the outside salespeople.
Team selling
used to service large, complex accounts.
Steps in personal selling process (Top to Bottom)
-Prospecting and qualifying
-Preapproach
-Approach
-Presentation and demonstration
-Handling objections
-Closing
-Follow-up
Sales Promotion
refers to the short-term incentives to encourage purchases or sales of a product or service now
Rapid growth of sales promotins
-Product managers are under pressure to increase current sales.
-Companies face more competition.
-Competing brands offer less differentiation.
Advertising efficiency has declined due to rising costs, clutter, and legal constraints.
-Consumers have become
Advertising
any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising Budget Considerations (Factors to Consider)
-Stage in product life cycle
-Market share
-Competition
Setting the Advertising Budget
*Informative advertising is used when introducing a new product category to build primary demand.
*Persuasive advertising is important with increased competition to build selective demand.
*Comparative advertising is when a company compares its brand with
Developing Advertising Strategy
(Determining Reach, Frequency, Impact, and Engagement)
1) Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.
2)Frequency is a measure of how many times the average person i
Informative advertising
used when introducing a new product category to build primary demand.
Persuasive advertising
important with increased competition to build selective demand.
Comparative advertising
when a company compares its brand with other brands.
Reminder advertising
important with mature products to help maintain customer relationships and keep customers thinking about the product.
Advertising clutter
today's consumers, armed with an arsenal of weapons, can choose what they watch and don't watch. Increasingly, they are choosing not to watch ads.
Reach
is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time.
Frequency
is a measure of how many times the average person in the target market is exposed to the message.
Impact
is the qualitative value of a message exposure through a given medium.
Engagement
is a measure of things such as ratings, readership, listenership, and click-through rates.
Press relations or press agency
involves the creation and placing of newsworthy information to attract attention to a person, product, or service.
Product publicity
involves publicizing specific products.
Public affairs
involves building and maintaining national or local community relations.
Role and Impact of Public Relations
-Lower cost than advertising
-Stronger impact on public awareness than advertising
-Has power to engage consumers and make them part of the brand story
Major public relations tools
News, Speeches, Special events, Written materials, corporate identity materials, public service activities, buzz marketing, social networking, internet.
Direct and digital marketing
involve engaging directly wit carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Direct and digital marketing have become
the fastest-growing form of marketing
Direct marketing continues to become more
internet-based
digital direct marketing is claiming a
surging share of marketing spending and sales.
Benefits of Direct/Digital Marketing to BUYERS
-Convenience
-Ready access to many products
-Access to comparative information about companies, products, and competitors
-Interactive and immediate
Benefits of Direct/Digital Marketing to SELLERS
-Tool to build customer relationships
-Low-cost, efficient, fast alternative to reach markets.
-Flexible
-Access to buyers not reachable through other channels
Irritation
includes annoying and offending customers
Unfairness
includes taking unfair advantage of impulsive or less-sophisticated buyers.
Deception
includes "heat merchants" who design mailers and write copy designed to mislead consumers.
Fraud
includes identity theft and financial scams.
Competitive advantages
require delivering more value and satisfaction to target consumers than competitors.
Competitive marketing strategies
are how companies analyze their competitors and develop value-based strategies for profitable customer relationships.
Competitors can include
-All firms making the same product or class of products
-All firms making products that supply the same service
-All firms competing for the same consumer dollar.
Competitors' objectives
-Profitability
-Market share growth
-Cash flow
-Technological leadership
-Service leadership
Competitors' strategies
-Strategic group offers the strongest competition
Designing a Competitive Intelligence System
Collects, Organizes, Interprets information.
Basic Competitive Strategies (Michael Porter)
-Overall cost leadership
-Differentiation
-Focus
-Middle of the road