Exam 2

Question 0

Purpose of advertising

Answer 0

To sell products/services
To create awareness & familiarity
To enhance brand image
To build customer demand
To advertise new p/s

Question 1

Define advertising

Answer 1

is a message designed to promote a product, a service, or an idea.

Question 2

advertising: buying decision process

Answer 2

Problem recognition 
Info search
Alternative evaluation
Purchase decision
Post purchase behavior

Question 3

7 advertising techniques

Answer 3

Basic appeals
Attention getting headlines
Slogans
Testimonials
Product characters
Comparison of products
Depiction

Question 4

Basic appeals

Answer 4

Ad. Technique
Biological: consumer’s basic needs for health and security
Emotional: focus on consumer’s feelings( love, romance, pride)
Rational: focus on consumer’s reasoning abilities (cost, safety, convince)
Social: focus on the way that social pressures influence consumer behavior (odor, weight, acne, fashion)

Question 5

Attention-getting headlines

Answer 5

Successful headline leads into reading the rest of ad

Attract attention by promising reader personal benefit (wanna save money?!)

Question 6

Slogans

Answer 6

Short phrases, repetitive, easy to remember, and sticks to your mind

Question 7

Testimonial

Answer 7

A person endorses product (ex: Proactive)

Question 8

Product characters

Answer 8

Fictional people or cartoon( Taco Bell chihuahua)

Question 9

Comparison of products

Answer 9

MOST FREQUENTLY USED

Mac v. PC

Question 10

Depiction

Answer 10

Most basic to get message across
Familiarity = credibility/trust?
Builds and reinforces a company’s reputation (the more a person hears or sees the most likely it will be accepted)

Question 11

Reaching best target audience

Answer 11

Geography ( nations, states, regions)
Demographic (gender, age, religion, education)
Psychographics ( lifestyle, social class, personality)

Question 12

Positioning

Answer 12

Mgmts desired positioning of the product (brand) in the eyes and minds of targeted buyers

Question 13

Positioning strategies

Answer 13

Entire company (Marriott brands)
Mix of products ( Marriott only in oc)
Specific line (luxury brands)
Particular brand (ritz)

Question 14

Strategic relationships

Answer 14

Suppliers, distribution channels, customers

Question 15

strategic relationships objective

Answer 15

Gain access to markets
Enhance p/s
New product development
Reduce financial risks
Share skills, knowledge, info, techniques

Question 16

Why is strategic relationships more important?

Answer 16

Environmental complexity
Risks of a global economy
Skill/resource limitations of a single organization

Question 17

Strategic relations challenges

Answer 17

Is partnering a promising strategy?
Are good candidates available?
Do relationships fit our culture?
Ex: Heinz and TGIF
Lodging: airlines and hotel shuttles
Happy meals and Disney toys

Question 18

CRM

Answer 18

Customer relationship management
Goal: establish a profitable long term relationship with customers rather than just expanding customer base or market share

Question 19

3 levels of CRM

Answer 19

Strategic CRM
Operational CRM
Analytical CRM

Front end customer service and relationships, the back end is analytical or infrastructure for decision support, which links to strategic level of CRM

Key words:
Customer service
" relationships
Infrastructure 
Decision support

Question 20

Strategic CRM

Answer 20

Competitive differentiation
Market segmentation
Strategic positioning

Question 21

Operational CRM

Answer 21

Customer service, relationships, database

Question 22

Analytical CRM

Answer 22

Customer knowledge

Targeted marketing communications

Question 23

Benefits of CRM

Answer 23

Customer retention
Share of wallet
Cross-selling
Up-selling

Question 24

Costs of CRM

Answer 24

IT infrastructure | Process change

Question 25

80/20 rule CRM

Answer 25

80% of business comes from 20% of customers

Question 26

RFM

Answer 26

Recency: last customer interaction Frequency: how frequent customer interacts with business Monetary value: value of interactions

Question 27

RFM marketing problem

Answer 27

Evaluate customer behavior customer value

Question 28

RFM: Recency Coding using example with emails to 30,000 customers, but only 458 responded.

Answer 28

- 30,000 customers are sorting in descending order w/ respect to their most recent purchases - Data divided into 5 EQUAL GROUPS, each containing 6,000 people - Recency codes are assigned: top group has code 5, bottom group has code 1 Results Group with highest Recency have highest response rates Most recent purchasers are more willing to buy new products

Question 29

RFM: Frequency coding

Answer 29

Frequency metrics: average number of purchases made by customer in a time period ( sorted in descending order with respect to purchase frequency) Assigned into 5 groups, top 20% in the first frequency group Frequency codes, where top group assigned to group 5 and bottom is 1 Results: highest response rates come from customers with highest frequency (differences between groups are less that RECENCY) Lowest frequency contains new customers

Question 30

RFM: Monetary Value

Answer 30

Same process as Recency and frequency Monetary value is average amount purchased in a time period Coding M=1,....5 to groups according to their groups Results Highest response rate is from customers with highest monetary value (unlike Recency, there are NOT big differences between groups)

Question 31

Trends in tourism

Answer 31

Ecotourism, sustainable tourism, and heritage tourism are growing importance. Promotion and development of tourism are moving from public (govt) to private (fairmount hotel gm, oc tourism annual conferences) Technology advancements Managing tourist destination will be more challenging Increased concern for health and safety Airlines entice travelers to book trips via private websites rather than other distribution channels

Question 32

Economic benefits of tourism

Answer 32

Important source of employment Fastest-growing economic sector in terms of foreign exchange earnings Leading producer of tax revenues Stimulates investment infrastructure to improve living conditions

Question 33

Economic Impact of Tourism What are the direct effects?

Answer 33

Production changes associated with immediate effects of changes in tourism expenditures.

Question 34

Economic Impact of Tourism What are the indirect effects?

Answer 34

Production changes resulting from various rounds of re-spending of the tourism industries receipts in other backward-linked industries

Question 35

Economic Impact of Tourism What are the induced effects?

Answer 35

Changes in economic activity resulting from household spending of income earned directly or indirectly as a result of tourism spending

Question 36

Economic Impact of Tourism What are the direct effects examples?

Answer 36

Accommodation, transportation, entertainment attractions

Question 37

Economic Impact of Tourism What are the indirect effects examples?

Answer 37

Most money T&T investment spending Purchases from suppliers Govt collective T&T spending

Question 38

Economic Impact of Tourism What are the induced effects examples?

Answer 38

``` Spending from employes for the following: F&B Recreation Clothing Housing Household goods ```