BNAD 303 Exam 3?

category management

A retail strategy of placing products in specific areas of store

IMC Promotional Mix

Advertising, direct marketing, internet marketing, sales promotion, public relations, personal selling

service

An intangible product that involves a deed, a performance, or an effort that cannot be physically possessed

experience qualities

Attributes, such as taste, satisfaction, or pleasure, that can be assessed only during purchase and consumption of a service

Customer Characteristics

Consumer market or business market?

Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?

Convenience stores

Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?

Exclusive

Safety Stock

Extra inventory that a company holds

Strategic issues

Location, store image, category management

marketing intermediaries

Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

discount stores

Self-service, general-merchandise stores that offer brand-name and private-brand products at low prices

off-price retailers

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

supercenter

Stores that combine supermarket and discount store shopping in one location

Perishability

Unused service capacity from one time period, cannot be stored for future use

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Warehouse club

key player in client based relationships

Word of mouth

sales promotion

activities that support advertising and personal selling free samples rebates coupons

retailer

an organization that purchases products for the purpose of reselling them to ultimate consumers

credence qualities

attributes that customers may be unable to evaluate even after purchasing and consuming a service

Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.

creating awareness

Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality.

credence

service quality

customers' perceptions of how well a service meets or exceeds their expectations

In general, differences between goods and services are determined by the

degree of tangibility.

Environmental Forces

economic considerations, technology, and government regulations, trade agreements

Specialty Retailers

emphasize narrow and deep assortments

food retail

focus is primarily on food items including produce, dry goods, dairy and meats

Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to

franchising.

Competition

high or low

Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ____ aspect of services.

intangibility

During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ____ in the communication process.

noise

channel cooperation

occurs when producers, wholesalers, and retailers depend on one another for success

General Merchandise Retailers

offer a variety of product lines, stocked in considerable depth

Advertising

paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

Michael is planning a promotional program for AirFam. AirFam is a supplier of new energy-saving engines used to produce air conditioners. His company needs to promote these engines to manufacturers of air conditioners, so he is most likely to use ___, because it provides immediate feedback. The disadvantage is that it is _____ than advertising to reach one customer.

personal selling; more costly

direct marketing

phone, internet, nonpersonal media

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them.

Product Attributes

quality, features, style and design

An advertisement from a ski lodge extolling the benefits of a summer getaway in the mountains uses promotion to

reduce sales fluctuations.

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)

retailer.

When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a

retailer.

An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is

sales promotion.

channel conflict

self interest creates misunderstanding about role expectations of channel members

search qualities

tangible attributes that can be judged before the purchase of a product

Services are usually provided through ____ directed at people or objects.

the application of human or mechanical efforts

order lead time

the average time lapse between placing the order and receiving it

Ashley is currently working on a video to introduce a new line of athletic wear for women. She is using signs and symbols to represent the concept and meaning of the new athletic wear. Ashley is most likely working on the ____ for this promotional video.

the coding process

customer contact

the level of interaction between provider and customer needed to deliver the service

Inseparability of production and Consumption

the quality of being produced and consumed at the same time.

usage rate

the rate at which inventory is sold

nonstore retailing

the selling of products outside the confines of a retail facility

3 types of specialty retailers

traditional category killer off-price retailer

Traditional Advertising

tv, radio, billboard, magazine...

Reorder point=

(order lead time x usage rate) + safety stock

Pricing should consider:

-Consumer price sensitivity -Nature of the transaction -Costs

exclusive distribution

-Uses a single outlet in a fairly large geographic area to distribute a product -For products purchased infrequently, consumed over a long period of time, or requiring service and information -Only authorized dealers are used

intensive distribution

-Uses all available outlets to distribute a product -For most convenience products -Multiple channels may be used

selective distribution

-Uses only some available outlets to distribute a product -For shopping products -Desirable when a special effort is important to customers

Services as a percentage of US GDP

70%

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

category killer

A very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability (home depot, lowes, staples, Petco)

Client based relationships

Interactions that result in satisfied customers who use a service repeatedly over time

Types of organization

Large or small

Which retail store invests the most in atmospherics?

Neiman Marcus

personal selling

Paid personal communication that seeks to inform customers and persuade them to buy products in an exchange situation

Which of the following is the best example of a high-contact service?

Plastic surgery

Number one service job

Retail Sales

channel power

The ability of one channel member to influence another member's goal achievement

Development of services

The characteristics of services create marketing challenges and opportunities

channel captain

The dominant leader of a marketing channel or a supply channel

reorder point

The inventory level that signals the need to place a new order

Intangibility

The major characteristic that distinguishes a service from a good, cannot be physically possessed

transportation

The movement of products from where they are made to intermediaries and end users

order processing

The receipt and transmission of sales order information

marketing channel

a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

department store

a large retail store organized into departments offering a variety of merchandise

direct-response marketing

a type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders

A general-merchandise retailer offers

a variety of product lines that are stocked in depth.

Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

agents

Retailing

all transactions in which the buyer intends to consume the product through personal, family, or household use

buzz marketing

an attempt to incite publicity and public excitement surrounding a product through a creative event

Michael's, PetSmart, and Staples are all examples of

category killers.

Vertical Integration

combines two or more stages of the marketing channel under one management

Horizontal Integration

combining organizations at the same level of operation under one management

Overall channel goals and individual channel member goals cannot be achieved together without

cooperation.

Integrated Marketing Communications

coordination of promotion and other marketing efforts for maximum impact

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n)

department store.

Inventory Management

developing and maintaining adequate assortments of products to meet customers needs

direct marketing

direct connections with carefully targeted consumers

A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is

electronic data interchange.

Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to

encourage product trial.

Supply Chain Management

goal is to achieve optimal levels of efficiency and service

The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.

heterogeneity

To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called

horizontal.

Symbols such as the Travelers' Financial Services umbrella are designed to help customers overcome the ____ of services.

intangibility

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines

integrated marketing communications.

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about

location.

Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called

off-price retailers.

According to your text, one perspective from which to view services is as a ____ targeted at a(n) ____.

performance; audience

The fact the services cannot be inventoried and then sold at a later date is called

perishability.

Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on

personal selling.

Service Retailing

sells services rather than products

Stockouts

shortages of products that can result in loss of customers

Fragile products that require special handling are more likely to be distributed through

shorter channels.

extreme value retailers

small discount stores often in lower income neighborhoods or towns

service retail

some physical product matched with a service or no physical product at all and only service

A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a

source

traditional specialty retailers

stores that carry a narrow product mix with deep product lines (gap, foot locker)

JIT (just in time)

supplies arrive just when needed for production or resale

Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of

supply chain management.

heterogeneity

variation in quality

Benetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of channel is called

vertical integration.

Stephanie sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Stephanie's work, so Stephanie redoes the job at her own expense because she knows how powerful ____ is (are) for services and wants to stay in business.

word-of-mouth communication