Operant conditioning can be described as a process

Variables Affecting Performance

that attempts to modify behavior through the use of
positive and negative reinforcement.
Classical conditioning involves placing a neutral
signal before a reflex, focuses on involuntary and
automatic behaviors.
Social Media Marketing Framework
1.
Monitor brand-related conversations
2.
Identify influential individuals
3.
Identify factors shared by influencers
Message Spread re-shares
Influence forwards to friends, etc.
Aptitude
Social Impact likes, comments, etc.
Customer Influence Effect (CIE) metric
2. Personal Characteristics
4 characteristics of key individuals:
3. Skill Levels
a. Activeness # times see & share
4. Role Perceptions
b. Clout number of followers
5. Motivation
c. Talkativeness retweets, hashtags
6. Organizational/Environmental
d. Likemindedness common interests
Factors
4.
Locate potential influencers
Stickiness index - measures the degree of WOM
Three Models of Advertising Effect:
generated by a particular user on a given topic
Product Quality
5.
Recruit influencers
6.
Incentivize (tangible freebies,
1. Performance: Does what it needs to do well
intangible) influencers to start positive WOM about
2. Features: Requisite
the product or service
3. Reliability: probability that a product or
7.
Reap the rewards (ROI) track positive
service surviving for a given time period
WOM, develop more effective social media
4. Conformance: design and operating
campaigns, see enhanced financial performance,
excellence
more customer engagement and increased brand
5. Durability: amount of time or use before
awareness
product quality deteriorates
6. Serviceability: speed, courtesy, competence
Price Promotion Strategy
7. Aesthetics: subjective assessment of the
product
Profitability: function of the sensitivity of
8. Perceived Quality: brand name, image, indirect
sales to the price reduction
measures
Couponing (price discrimination) allows to

sharpen price based communication

&segregate customers according to price
elasticities.
Profitability: incremental sales generated
by the coupon and the number of coupons
redeemed
The Critical Constraints Provided by The 5
Cs:
1. Context (Advertising Regulations)
2.
Company (Product
Portfolio)
3.
Competition (Other
Products and Societal Norms)
4.
Consumers (Decision
Making Process of Balding Men)
5. Collaborators (Physician Decision
Making Process)
The value of a risky option decreases upon
addition of risky prospects of the same
valence.
Consumers can perceive normatively more
dangerous (beneficial) options to be less
dangerous (beneficial) when large risk is
clouded by several smaller risks.

New Product Development Process

New Product Strategy, Idea Generation,

Idea Screening, Business Analysis,
Development, Test Marketing,
Commercialization
Load it - to initially attract the most
customers and will therefore maximize
short-term, first-period profits, off load it if subsequent purchases matter more to
the lifetime value of the typical customer

Interest
attention
Establish a
Personal

Entertaining and memorable commercials Easy

to read ads with illustrations
Desire Create desire for product
Consider long-term customer equity
and
Infomercials.Link
product to consumer problem.
not just customers initial choices.Show
Givethey cannot live without the solution
Action Desire leads to action Special offer,
consumers decision aids.
free gift, limited promotion Website, phone call,
Product Lifecycle
show that they need to act
Obsolescence enables firms to increase

revenue through faster replacement,

Customer acquisition vs. customer retention The difference
between customer acquisition and retention is the disparity between
reduce competition from used goods
creating and keeping. Acquiring customers is looking for new
opportunities and targeting new interest, whilst retention is
market and make second hand business
market
holding relationships, and servicing current customers. In the case of
less attractive replacement as those
goods
Tweeter,
following the newly adopted strategy was dependent on
whether is APP a retention strategy or an acquisition strategy. With
can cost more in the long run.
APP, Tweeter can now target both, the price segment as well as the
quality segment (in which they are already present). APP can not be
easily best
copied by the competitors as it would not be easy for them to
Pricing Strategy To calculate the
change their product mix in the short-run. Also, the long-existed
price take the price of the second
best
image
of high end products with high price can be done away with,
due to APP. But, in the long-run, it can be copied and can be
option plus the value of your advantages

minus the value of your second best

options advantages.

competed on. Thus it is safe to assume APP to be only an

Sales Process: Prospect, qualify,

acquisition strategy.
Role of Sales team A sales team must work together to increase
presentation, negotiation, close.
brand awareness and drive sales forward. In addition to generating
CHANNELS-Communication Channels: Used
income, the sales force builds trust with customers. Sales
to deliver and receive messages from target
buyers. E.g. E-mail, Toll free number
Distribution Channels: Display and deliver
physical product. E.g. Warehouses,
Transportation vehicles, Trade channels like
Distributors, Wholesalers, Retailers Selling
Channels: Distributors, Retailers.
AIDA MODEl
List of events when consumer engages
with advertisement
Attention Existence of product / Service
Visual stimuli. Surprise buyers Place ads in
unexpected situations, Shock factor,
Personalization

representatives engage customers at all stages of the relationship. New

customers need interaction and opportunities to learn about the brand.
Current customers gain trust through consistent follow-up and
communication with the sales representative. It is also important for the
members of the sales team to focus on organization goals and plan
accordingly. If the company requires high information flow, then specific
procedures need to be embedded in the system. There should be
proper planning to ensure that the customers are more inclined and
educated about the company rather than developing personal
relationship with the sales team.
Intermediaries efficiently create and satisfy demand, through
activities that include
building brand and product awareness through advertising
customer education
providing market coverage
gathering market information

providing breadth of assortment

breaking bulk
Order processing
Customer support

Studies have demonstrated (1) that coupon users have higher price
elasticities of demand), (2) that low-priced generic products have lower
market shares if the brand-name manufacturers coupon heavily, and (3)
that a larger percentage of consumers use coupons for brands with
The profitability of the couponing operation is a function
higher
of both
shelf
theprices
incremental sales generated by the coupon and the number of coupons
redeemed (Leone and Srinivasan, 1996)
The profitability of the price promotion strategy is a function of the
sensitivity of sales to the price reduction. The manufacturer decides
between a coupon promotion and a price promotion strategy depending
upon their relative profitability.
Thus, this decision depends upon the relative sensitivity of sales to
coupons and price reductions