CCT322H5 Final: EXAM Study Notes

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Communication, Culture and Technology
Tim Richardson

CCT322 Exam Study Notes Google Search  Ads are in a “sandbox” (a light brown background)  The rest of the results are organic Things you can control ↔ Things you cannot control  4 P’s (“marketing mix”) ● PESTGC (the 6 environments) - Product - Political Environment - Promotion - Economic Environment - Price - Social & Cultural Environment - Place - Technological Environment (ex. wifi) - Geographical Environment - Competitive Environment Product  Physical features; the packaging  Includes branding  Example of competitive packaging: Tim Hortons lid vs McDonald’s lid Price  are you going to sell at a high price and make a lot of profit in the short term? Or opposite?  Canada Goose wants to keep their price high because you buy one so others can know you spent $$$ on it  Psychology of pricing (ex. Costco) Place  Decision where to sell the product and where the customers are  Ex. Tim Hortons – will have one in every 100m, they aren’t really competing for the best coffee, but convenience Promotion  Telling the customer about the product  What everyone thinks marketing is  Divided into 3: > Sales Promotion ▪ Stuff you do in the store to get the customer to try the product ▪ Contests, coupons, free samples > Mass Selling ▪ Advertising (which you par for) ▪ Publicity (free; ex. viral marketing campaign) > Personal Selling ▪ Direct contact person2person with a potential customer ▪ Sometimes for high quality consumer products (ex. jet, car) Trends 1  Being aware of consumer trends gives you an advantage  Due to the fast paced Technological Environment, the pressure of the Competitive Environment, and the stress of the Economic Environment, companies MUST be aware of trends that affect their customers in order to keep selling profitability  Ex. Blackberry (they became a trend but could not keep up with technology from competitors) 7 Steps in the Selling Process 1) Prospecting (finding customers) 2) Approach (how to approach customer) 3) Presentation (features, advantages, benefits) 4) Demonstration 5) Handling Objectives (answer questions; cost) 6) Closing (asking for an order) 7) Follow-Up (determine if they will be a repeat customer) Business Plan  a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals  essentially how to run a business  Marketing Plans are a sub-set of a company’s business plan Marketing Strategy  1: Target Market (who you are selling to)  2: Marketing Mix (4P’s) Once you have a “Marketing Strategy” developed, you can create a “MARKETING PLAN” Marketing Plan  FIRST, know your TARGET MARKET > Who do you want to sell it to? How will they use it?  Then know about Segmentation  Marketing strategy + timely details = marketing plan Marketing Program  For a medium or large sized firm it is simply several Marketing Plans  Ex. for Ford, you have a Marketing Plan for trucks, small cars, etc. Marketing Orientations  Means finding out what ppl want and providing it  4 R’s: Retention, Referrals, Relationships, Recovery 2 Sales Orientation  Way you sell the product based on the price Product Orientation  FAB: Features, advantages, benefits  Focused on the product The Marketing Concept  “the idea that an organization should aim all of its efforts at satisfying customers – at a profit”  Companies that focus on this also focus on the Marketing Orientation Viral Marketing  Term which is used to describe how companies use the technologies of the Information Age (cell phones, Internet, GPS, etc.)  Focuses on content ppl feel compelled to pass around  Volkswagen commercial > Found offensive and this caused ppl to make spoofs (but this was great advertising for FREE)  Google Reunion Video > Subtly shows how ppl use Google > Tells a story > Ppl can relate to it *  Turn ppl from being aware to being an ambassador, share button makes this easy (spreads like a virus)  REFLECTED GLORY: they share online bc friend will want to see it; if its cool, this makes you look cool, those who make viral videos count on this effect  6 main types of viral marketing: 1) Pass-along ▪ Message at bottom of an e-mail prompts the reader to pass it along 2) Incentivized Viral ▪ Offer rewards for providing someone’s address ▪ Ex. Online contests 3) Undercover AKA Stealth Marketing ▪ Viral message presented as a cool or unusual page, activity or piece of news without obvious incitements to link or pass along ▪ Ex. “Sent from Samsung” on email 4) Edgy Gossip/ Buzz Marketing ▪ Ads/messages that create controversy by challenging the borders of taste or appropriateness ▪ Ex. Publicity stunts before a movie comes out ▪ Making parodies to get word around ▪ “Viral Video” 5) Anonymous Matching 6) Guerrilla Marketing ▪ an advertisement strategy concept designed for businesses to promote their products or services in an unconventional way with little budget to spend ▪ Used when you have limited access to resources 3 ▪ Used in markets that are already segmented ▪ Ex. Fitness First (a gym in the Netherlands) set up a bus station that showed your weight when you sat down  Advantages of Viral marketing 1) Low cost 2) Extensive reach 3) High credibility 4) High efficiency  Disadvantages of Viral Marketing 1) Brand Dilution 2) Association with unknown groups 3) Avoid making purely financial based offer (could be spammed and could look “to good to be true”) 4) Large scale spam issues  Word of mouth is still best and most reliable Note: Companies must grow because OTHER companies are growing Market Penetration  = selling more to existing customers & persuading new customers to start buying or even converting customers from their competitors  Ex. Cell phone provider: free upgrade from iPhone 6s to 7, then you post more on social media, causing you to use more data, and they make more $$$ Marketing Development  = develops new market segments for current products  targets non-buying customers in currently targeted segments and new customers in new segments  remind customers of different ways they can use a product  Make more money off individual customers  Why companies ask for profile information “Marketing Mix”  = the tactical or operational part of a marketing plan; the 4P’s  Some companies focus on one P over the other > Ex. Tim Hortons – focuses on Place > Ex. Apple – focuses on Product > Ex. WalMart – focuses on Price “Promotional Mix”  = one of the 4P’s; consists of public relations, advertising, sales promotion and personal selling  Companies do a mix of viral marketing, radio ads, etc.  Everyone has a different method  Personal selling, mass selling, sales promotion Holy Grail  Means the ultimate thing to achieve 4  For marketing, means selling ppl things for where the are  Phones have GPS, would be able to say “You’re 50m away from Tim’s! Come in to get 10% off” Shotgun Approach  Method where you advertise everywhere, hoping to get customers  It is expensive Market Segmentation  = the aggregating of prospective buyers into groups, or segments, that have common needs  Why? There are so many types of customers  Ex. Canada Goose’s segmentation got "hijacked" by a "demographic" that has become totally different than the original target of the company  Criteria: 1) Homogenous (ppl in segment are similar; will use product in the same way) 2) Heterogeneous (ppl in between segments are very different; ex. mobile apps for iOS or Android) 3) Substantial (ppl in segment should be large enough) 4) Competition (target segments "where the # of competitors and their size are such that the firm is able to compete effectively") 5) Resources (make sure the segment relates to the resources of the company- ex. lingerie companies should do plus sizes, which may require reconfiguring resources like fabric cut)  Ex. Ottorbox > Everyone is dropping their phone, but they have different models 4 Segmentation Types 1) Descriptive (age, gender) – demographic 2) Behavioural (lifestyle) – psychographic 3) Benefit (expected benefits) 4) Geographical (country, region)  Why is this important? Because you can understand your target market better in terms of the competitive environment Markets  = people who have: willingness to buy, purchasing power, authority to buy  Ex. problem with marketing to kids, they might want it but their parents have to buy it Types of Markets  Consumer  Industrial “Go, No-Go” Stage  Pass/fail test; see if ppl respond to current marketing  Gather information on sales potential to determine whether you can go ahead and justify further analysis Things You Have to Be Convincing About (Converting Traffic) 5 1) Warranty/Guarantee (ex. Ottorbox) (returns should be easy) 2) Sizing, Price, Product Info 3) Functions & Features 4) Privacy > Builds customer confidence 5) Long term use & upgradability > Explain how things can be upgraded/installed/downloaded and the cost > Ex. Nikon lens: old one would fit a new one; PlayStation 2 is backwards compatible 6) Testimonials > Ppl quoted saying they like the product 7) Awards, Recognition, Associations > Associate with big companies if you’re a small company > Validates your business > Involvement in events & any certifications 8) Shipping > Distribution of product, indicating care and consideration for maintaining the product in good condition > Don’t break promises > Provide tracking 9) After Sales Customer Service > Part of CLV > Convincing customer they should make repeat purchases > Cognitive Dissonance = inconsistent thoughts, beliefs, attitudes relating to behavioural decisions • Arises from discrepancy between the “I am complete” and the new product of lifestyle the product portrayed is lacking • Not confident with product; self-doubt • Testimonials can help reduce this 10) Corporate Citizenship: Environmental Consideration > Voicing environmental concerns can increase customer loyalty > ex. The Body Shop profiles their env’tl considerations as part of building their brand discussing their commitment to saving the env’t 11) Corporate Citizenship: Social-Cultural Considerations > customer groups or employees are discriminated against in a global env’t > Be sensitive when published > ex. Nike (if you pretend there is no association, you will lose customers) 12) Corporate Citizenship: Gender Issues > Most of the demographic of buyers online are female 13) Corporate Citizenship: Human Rights Issues > ex. clothing factories > have ethical behaviour 14) Contact Information > Want to be able to find a real employee and their real contact info > Don’t appear anonymous > Names and faces are better > About us page > Validation that you exist > An image of your store 6 15) Payment Security > Small companies have issues with this > Convince buyers they wont be scammed 16) Colours: use of: > What are the colours associated with? > Cheap/savings = yellow > Avoid saturated colours 17) Shopping carts > Preventing shopping cart abandonment > Sometimes not a bad thing, sometimes shoppers are just looking for details > Site needs to fast (only have a few seconds before you lose attention) > Check out the competition > Privacy and security (concerns of identity theft) > Return to sender (need a clear & reasonable return policy) > ‘Cash, credit or bottle caps’ (let user choose their own method of payment) > Emphasize sales and savings, offer coupons > Provide human contact (for customer service) > No way out (no pushy sales rep online) 18) Engage Customer > Interacting videos (shows you took time to make videos) > Engage customer in good way Culture  Establish trust  Understand the importance
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