Operant conditioning can be described as a process

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.
Social Impact likes, comments, etc.
Customer Influence Effect (CIE) metric
4 characteristics of key individuals:
a. Activeness # times see & share
b. Clout number of followers
c. Talkativeness retweets, hashtags
d. Likemindedness common interests
4. Locate potential influencers
Stickiness index - measures the degree of WOM
generated by a particular user on a given topic
5. Recruit influencers
6. Incentivize (tangible freebies, intangible)
influencers to start positive WOM about the
product or service
7. Reap the rewards (ROI) track positive WOM,
develop more effective social media campaigns, see
enhanced financial performance, more customer
engagement and increased brand awareness

Price Promotion Strategy

Profitability: function of the sensitivity of sales to
the price reduction
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

6. Organizational/Environmental Factors

Three Models of Advertising Effect:

Product Quality
1. Performance: Does what it needs to do well
2. Features: Requisite
3. Reliability: probability that a product or service
surviving for a given time period
4. Conformance: design and operating excellence
5. Durability: amount of time or use before product
quality deteriorates
6. Serviceability: speed, courtesy, competence
7. Aesthetics: subjective assessment of the product
8. Perceived Quality: brand name, image, indirect measures
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
Consider long-term customer equity and not just
customers initial choices. Give consumers decision

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.
Variables Affecting Performance
1. Aptitude
2. Personal Characteristics
3. Skill Levels
4. Role Perceptions
5. Motivation

aids.
Product Lifecycle
Obsolescence enables firms to increase revenue
through faster replacement, reduce competition
from used goods market and make second hand
market less attractive replacement as those goods
can cost more in the long run.
Pricing Strategy To calculate the best price
take the price of the second best option plus the
value of your advantages minus the value of your
second best options advantages.

Role of Sales team A sales team must work together to increase brand awareness
and drive sales forward. In addition to generating income, the sales force builds trust
with customers. Sales 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

Sales Process: Prospect, qualify, presentation,

negotiation, close.
CHANNELS-Communication Channels: Used 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
Interest Retain attention
Establish a need. Personal link Entertaining and
memorable commercials Easy to read ads with
illustrations
Desire Create desire for product Infomercials.Link
product to consumer problem. Show they cannot live
without the solution
Action Desire leads to action Special offer, free gift,
limited promotion Website, phone call, show that they
need to act
Customer acquisition vs. customer retention The difference between
customer acquisition and retention is the disparity between creating and keeping.
Acquiring customers is looking for new business opportunities and targeting new
interest, whilst retention is holding relationships, and servicing current
customers. In the case of Tweeter, following the newly adopted strategy was
dependent on whether is APP a retention strategy or an acquisition strategy. With
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 copied by the
competitors as it would not be easy for them to change their product mix in the
short-run. Also, the long-existed 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

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

strategy.

The profitability of the couponing operation is a function of both the 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
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 higher shelf prices