Marketing Final Exam-Sojka

External (Macro) Environmental Forces
1. _Political/legal_________
2. __Demographic________
3. __Natural _____________
4. __Economic___________
5. __Technology__________
6. __Culture_____________
Consumer Decision Process
1. Need
2. Search
3. Alternative Evaluation
4. Purchase
5. Post-Purchase
Width
Refers to the number of different product lines the company carries ex —-dog-food—clothes—baby
Types of Products
1. Convenience
2. Shopping
3. Specialty
PLC (Product Life Cycle) Stages
1. Intro
2. Growth
3. Mature
4. Decline
What is a quality indicator?
Price
Distribution Channel
a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
How do channel members add value?
How do channel members add value?
They add value in the form of information, promotion, negotiation, funding, risk taking, physical possession, payment options, title/ownership.
Channel Level
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
Direct Marketing Channel
A marketing channel that has no intermediary levels
Indirect Marketing Channel
A marketing channel containing one or more intermediary levels
Types of Marketing(Distribution) Channels
Types of Marketing(Distribution) Channels
What are these?
Vertical Marketing System (VMS)
Vertical Marketing System (VMS)
A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate
Corporate VMS
A vertical marketing system that combines successive stages of production and distribution under single ownership–channel leadership is established through common ownership example. Kroger
Contractual VMS
A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts ex. Subway (franchises)
Administered VMS
A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. ex. Walmart
Horizontal Marketing System
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. ex. Subway in Walmart
Multichannel distribution System
a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. (Example: John Deere sells to consumers and businesses (farmers) through different channel systems)
Disintermediation
taking out intermediary (tends to be retailer)
# of Intermediaries
1. Intensive
2. Selective
3. Exclusive
Intensive distribution
Stocking the product in as many outlets as possible
Exclusive distribution
Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
Selective distribution
The use of more than one but fewer than all of the intermediaries who are willing to carry the company’s products
Logistics
Physical movement of goods
Transportation Means
1. air, (international, specialty, perishables)
2. rail, (Coal, steel)
3. truck, (everything)
4. pipeline, (oil, water)
5. water, (Bulky, heavy items)
internet, intermodal
Multimodal Transportation
-Piggyback-rail & truck
-Fishyback-water & truck
-Airtruck-air & truck
What is the benefit for a franchiser?
What is the benefit for a franchisee?
What is the benefit for the consumer?
Growth of the company and cash flow
Expertise (menus, prices, logo all ready)
Consistency (brand recognition)
Types of Retailers
1. Supermarket –
2. C-Store-
3. Superstore-
4. Warehouse Club
5. Discount Store-
6. Department Store-
7. Specialty Store –
8. Category Killer- toys r us –
9. Factory Outlet –
10. Ind. Off Price Retailers-
Specialty store
A store that carries a narrow product line with a deep assortment, such as apparel stores, sporting goods stores, furniture stores, florists, and bookstores
Department store
A store that carries several product lines– typically clothing, home furnishings, and household goods– with each line operated as a separate department managed by specialist buyers or merchandisers
Supermarket
A relatively large, low cost, low margin, high volume, self service operation designed to serve the consumer’s total needs for grocery and household products
Convenience store
A relatively small store located near residential areas, open long hours seven days a week,and carrying a limited line of high turnover convenience products at slightly higher prices
Discount store
A store that carries standard merchandise sold at lower prices with lower margins and higher volumes
Off price retailer
A store that sells merchandise bought at less than regular wholesale prices and sold at less than retail. ex. TJ Maxx
Superstore
A very large store that meets consumers’ total needs for routinely purchased food and nonfood items. ex Walmart Supercenter
Category Killer
A giant specialty store that carries a very deep assortment of a particular line ex. toys r us
Factory Outlet
An off price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer’s surplus, discontinued, or irregular goods.
Warehouse Club
An off price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees.
Product-line based Retailers
1. specialty stores,
2. department stores,
3. convenience store,
4. supermarket,
5. superstore,
6. category killer
Relative-Price based
1. discount,
2. off-price retailers,
3. factory outlets,
4. warehouse clubs
5 senses-Experiential Shopping-Atmospherics
(How retailers create a “shopping experience”)
1. Smell (olfactory)
2. Hearing (auditory)
3. Seeing (visual)
4. Touch
5. Taste
Retail convergence
All retailers starting to look a like. Can’t separate stores by products.
Non-store retailing
1. Online
2. Catalog
3. Kiosk
4. Direct Market selling
5. HSN
Retailing Trends
Retail convergence, Non store retailing, Pop up stores
Pop up stores
Temporary storefronts that exist for only a limited time and generally focus on a new product or a limited group of products offered by a retailer, manufacturer, or service provider; give consumers a chance to interact with the brand and build brand awareness.
Promotion Mix
Tools marketers use to communicate and engage with consumers
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponser
Sales promotion
Short term incentives to encourage the purchase or sale of a product or service
Personal Selling
Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships
Public relations (PR)
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Direct marketing
Direct connections with carefully targeted indivdual consumers to both obtain an immediate response and cultivate lasting customer relationships.
IMC-Integrated Marketing Communications
Coordinating the Promotion Mix for effectiveness and consistency (adv, P.R., personal selling, sales promotions)
Push Strategy (goes down each tier Mfg –> Distributers –> Retailer –> Customer) = PERSONAL SELLING
a promotional strategy that focuses on intermediaries, trying to persuade and motivate wholesalers and retailers to carry its products and promote those products to their customers
Pull Strategy (Direct to customer who seeks product)= ADVERTISING STRATEGY
a marketing strategy that stimulates consumer demand to obtain product distribution
Channels
Push and Pull strategies relate to what?
What stage in the product life cycle do competitors say my product is better than yours(pursuade)?
Growth
Advertising Objectives
1. Inform ex. 3-D printer (NEW PRODUCTS)
2. Remind ex. Coke ( COMPETITION INCREASES)
3. Persuade ex. Farmer’s Insurance (MATURE PRODUCTS)
Setting the Advertising Budget
-Affordable
-% of sales
-Competitive parity
-Objective-task
Affordable Method
Setting the promotion budget at the level management thinks the company can afford
Percentage of sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price
Competitive-parity method
Setting the promotion budget to match competitors’ outlays
Objective and task method
Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion
Advertising Execution Styles
1. Slice of life/ Lifestyle
2. Fantasy
3. Musical
4. Personality symbol
5. Celebrity endorser
6. Technical expertise
7. Scientific evidence (competitive advantage)
8. Testimonial
Slice of life
This style shows one or more typical people using the product in a normal setting.
Lifestyle
This style shows how a product fits in with a particular lifestyle
Fanatsy
This style creates a fantasy around the product or its use
Musical
This style shows people or cartoon characters singing about the product
Personality Symbol
This style creates a character that represents the product ex. Geico gecko
Technical expertise
This style shows the company’s expertise in making the products.
Scientific evidence
The style presents survey or scientific evidence that the brand is better or better liked than one or more other brands
Testimonial evidence
this style features a highly believable or likable source endorsing the product
Advertising Media
1. Television
2. Radio
3. Newspapers/Direct Mail- short life
4. Magazines- long pass along life
5. Outdoor billboards
6. Internet (Facebook/Twitter/Instagram/Snapchat)
7. Brand Integration/Brand Entertainment- embedded the product into the tv shows
8. Ad location within the medium
Which advertising media?
Adv- Good mass marketing coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses
Dis- High absolute costs; fleeting exposure; less audience selectivity
T.V
Which advertising media?
Adv- Flexibility; timeliness; good local coverage; high believability
Dis- Short life; small pass along audience
Newspaper
Which advertising media?
Adv- long life and good pass along; selectivity; credibilty
Dis- Long ad purchase lead time; high cost; no guarantee position
Magazines
Which advertising media?
Adv- Good local acceptance; low cost; selectivity
Dis- Audio only;fleeting exposure; low attention
Radio
Which advertising media?
Adv- Flexibility; low cost; high repeat exposure
Dis- Little audience selectivity; creative limitations
Outdoor Billboard
zipping and zapping
change the channel at commercial
Media Timing
1. Seasonal
2. Continuity (evenly spaced)
3. Pulsing (stop & start at specific times)
Media Evaluation
1. Pre-test
2. Post-test (recall/recognition)
Pre-test
Company tests an advertisement to panels and people before putting out the ad to make sure its promoting the correct message
Post-test
Companies call up consumers after ad has been released to the public and ask questions about the ad to see what the person can recall from it.
Puffery
the legal exaggeration of praise, stopping just short of deception, lavished on a product
Bait-and-switch
trying to attract buyers by advertising a product you don’t intend to sell, and then trying to sell them another product ( ILLEGAL!!! )
Loss Leader
Where a price is set deliberately below the cost of production in order to attract customers who will buy other, more profitable products
Activities designed to build good relations with public
1. News story
2. Development gift (Donation)
3. Sponsorship
What to do with Negative Publicity
1. Ignore
2. Acknowledge & refute
3. Correct perception without acknowledging
Digital Reputation Management
Companies manage what people are saying about them online since now people can tell hundreds of people how they feel. It is very critical that companies watch their online presence.
Sales Promotions
Short term incentive to encourage purchase
(Offers incentive to price sensitive customers)
Types of Sales Promotions
1. Samples
2. Coupons
3. Rebates
4. Price packs
5. Premiums
6. Advertising specialties
7. Patronage rewards
8. Point-of-purchase displays
9. Contests
Sales Process
1. Prospecting
2. Planning the sales call
3. Making the sales call
4. Present the product
5. Handle objections
6. Obtain commitment
7. Negotiate
8. Close
9. Service
Personal selling
Personal presentations by the firm’s sales force for the purpose of making sales and building customer relationships
Types of Sales Compensation
1. Salary
2. Commission
3. bonus
Types of Positions
1. Cold-calling
2. Maintaining relationships
3. Inside (out-bound/in-coming)
4. Outside (regional/domestic/global)
Salary
A fixed amount of money paid to an employee for each pay period.
Commission
amount paid to an employee based on a percentage of the employees sales
Cold-Calling
sales position where you find new customers
Maintaining Relationships
sales position where you keep existing customers
Inside sales force
Salespeople who conduct business from their offices via telephone, the internet, or visits from prospective buyers
Outside sales force (or field sales force)
Salespeople who travel to call on customers in the field
Prospecting
The sales step in which a salesperson or company identifies qualified potential customers
Preapproach
The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.
Approach
The sales step in which a salesperson meets the customer for the first time
Presentation
The sales step in which a salesperson tells the value story to the buyer, showing how the company’s offer solves the customer’s problems
Handling objections
The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying
Closing
The sales step in which a salesperson asks the customer for an order
Follow-up
The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business
Premiums
goods offered either free or at low cost as an incentive to buy a product (ex happy meals)
Price Packs
more product for the same price
Advertising Specialities
are useful articles imprinted with an advertiser’s logo given as gifts to consumers (ex t-shirt )
Point of purchase (POP) promotions
include displays and demonstrations that take place at the point of sale. ex. end caps
External (Micro) Environmental Forces
1. Customers (publics)
2. Competitors
3. Collaborators (intermediaries/suppliers)
4. Company
Patronage Rewards
brand loyalty ex. frequent flyer miles
Length
Refers to the total number of items a company carries within its product lines ex.
dog food
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