BUSN115 SU17 – Week 4 Quizlet
Why are companies pushing for more accountability from the marketing function?
Companies are pushing for more accountability from the marketing function because the return on investment of the marketing function has been less than ideal in many industries. In fact, according to one recent research study, the advertising campaigns for two-thirds of established products in the marketplace do not bring in more revenue.
How does the organizational market differ from the consumer market?
The organizational market differs from the consumer market in that it is more clearly driven by economics and influenced less by subconscious, emotional factors. It places an emphasis on economic payback and other rational factors; it is a formal buying process; it involves participation and influence of multiple people; and it typically involves closer relationships between buyers and sellers
What is strategic marketing planning, and what is its purpose?
The purpose of strategic market planning is to help firms identify and create a competitive advantage, something that sets the firms apart from their rivals and makes their products more appealing to customers. Strategic market planning is a process that involves three steps: (1) examining the current marketing situation, (2) assessing opportunities and setting objectives, (3) developing a marketing strategy to reach those objectives.
What external environmental factors affect strategic marketing decisions?
Economic conditions, changes in the natural environment, social and cultural trends, laws and regulations, and technological advancements are external environmental factors that affect strategic marketing decisions.
What are the four basic components of the marketing mix?
Product, Price, place (or distribution), and promotion
What is a distribution channel?
Distribution channels, or marketing channels, are an organized network of firms that work together to get goods and services from producer to consumer. Distribution channels come in all shapes and sizes. Some channels are short and simple, such as the direct model; others are complex and involve many people and organizations.
What are the two main types of intermediaries and how do they differ?
Two main types of marketing intermediaries are wholesalers and retailers. Wholesalers sell primarily to retailers, to other wholesalers, and to organizational users such as government agencies, institutions, and commercial operations. In turn, the customers of wholesalers either resell the products or use them to make products of their own. By contrast retailers sell products to the final consumer for personal use. Retailers can operate out of a physical facility (supermarket, gas station, kiosk), through vending equipment (soft drink machine, newspaper box, or automated teller), or from a virtual store (via telephone, catalog, or website).
What forms of utility do intermediaries create?
Market intermediaries create place utility, time utility, and possession utility. By transferring products from producer to the consumer, intermediaries ensure that goods and services are available at a convenient time and place. They also simplify the exchange process, and provide a number of specific functions that make life easier for both producers and customers. These include: providing a sales force, market information, promotional support, and financing, standardizing and dividing shipments; stocking and delivering the product; assuming risks; and matching buyers and sellers.
What are some of the main causes of channel conflict?
Some of the main causes of channel conflict include: A) producers provie inadequate support to their channel partners; B) markets are oversaturated with intermediaries; C) producers try to expand sales by adding additional channels, either on their own or through new intermediaries; D) some intermediaries bear the cost of developing new markets or promoting products only to see the sales revenue go to other intermediaries.
How does a specialty store differ from a category killer and a discount store?
A specialty store offers a complete collection in a narrow range of merchandise, often with extensive customer services. A category killer is a type of specialty store but it is massive in scale and dominating retail sales in its respective product categories. A discount store is nearly the opposite of a specialty store in that it offers a wide variety of merchandise at low prices with relatively fewer services.
What are two key ways in which the social communication model differs from conventional promotional communication?
Conventional promotional communication tends to be one-direction only, and audiences are passive recipients of such communications. In contract, social communication model involves two-direction communications, and in this case the audiences are active participants of such communications.
What is the difference between using a push strategy and using a pull strategy to promote products?
Push strategy focuses on intermediaries, motivating them to promote (or push), products toward end users, while pull strategy stimulates consumer demand via advertising and other communication efforts, thereby creating a pull effect through the channel.
What are the advantages of personal selling over other forms of customer communication?
Personal selling has the following advantages over other forms of customer communication: A) It involves one-on-one communications, whereas other forms of communication tend to be one-to-many; B) Personal selling tends to be interactive while other forms of customer communication tends to be one-direction.
What is an advertising appeal?
An advertising appeal is a creative tactic designed to capture the audience’s attention and promote preference for the product or company being advertised.
What are some common types of consumer promotions?
Some common types of consumer promotion are coupons, premiums, point-of-purchase displays, rebates, games, and sweepstakes.