Marketing: 13, 14, 16
What is personal selling?
-Occurs when a company sales representative contacts a prospect directly regarding a product Stereotypes vs. Reality 1. Listening and learning, 2. Empathizing, 3. Offer solutions Critical for many push strategies, B2B products, and products that are complex and expensive Strengths: Critical link between customers & the firm (the "face") Most flexible method of promotion More effective in obtaining a sale and increasing customer satisfaction Building relationships with customers Weakness: Most expensive per contact promotional tool in terms of time and money
Which of the following is true about the sales force of a company? -The primary responsibility of a sales force is to formulate operational strategies. -Salespeople represent workers' interests to upper management. -Salespeople often serve as the face of the company from a customer's perspective. -The sales force is responsible for product development and product strategy. -The sales force oversees the auditing process and recovers money from defaulting.
-Salespeople often serve as the face of the company from a customer's perspective. -Personal selling two-way flow of communication between a buyer and seller, designed to influence someone's purchase decision. Sales force management planning, implementing, coordinating, and controlling the personal selling efforts of the firm -A sales force requires a longer-term commitment than does advertising—advertising can be turned up or down, but the size of a sales force is harder to change. Personal selling is also the company's most expensive promotion tool, costing companies on average $600 or more per sales call, depending on the industry -They represent the company to the customers -Represent customers to the company
What are atmospherics?
-refers to how managers control the design of the building, interior space, layout of aisles, texture of carpets and walls, scents, colors, shapes, and sounds experienced by customers to achieve a certain effect.
What is predatory pricing?
-setting prices very low to force competitors out of the market and to create barriers to entry for new competitors. A matter of degree. If penetration pricing is pushed too far, it can become a form of predatory pricing.
Which of the following abilities would LEAST likely be measured when recruiting and testing applicants for a sales position? motivation relationship skills work style sales aptitude accounting skills
Accounting skills is least likely to be measured. -The performance difference between an average salesperson and a top salesperson can be substantial. In a typical sales force, the top 30 percent of the salespeople might bring in 60 percent of the sales. Thus, careful salesperson selection can greatly increase overall sales force performance. -Its research suggests that the best salespeople possess four key talents: intrinsic motivation, a disciplined work style, the ability to close a sale, and, perhaps most important, the ability to build relationships with customers
What is advertising?
Advertising is any paid form of non-personal communication by an identified sponsor that promotes an good, service, or idea Broadcast (TV, radio) Product placement Print (magazine, newspaper) Billboard, Posters Online/Digital/Social/Mobile Ads
Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here? point-of-purchase promotion contest trade promotion premium sample
Contest. Sales promotion is a (typically) short-term incentive to encourage purchase/trial of a product or service. Typically short term objectives. Offers reasons to buy now. * Discounts/Coupons/Rebates * Samples * Premiums * Demonstrations * Point of purchase displays * Contests/Sweepstakes -Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort. A contest calls for consumers to submit an entry—a jingle, guess, suggestion—to be judged by a panel that will select the best entries. A sweepstakes calls for consumers to submit their names for a drawing. A game presents consumers with something—bingo numbers, missing letters—every time they buy, which may or may not help them win a prize.
A five-foot high cardboard cutout of Terry the polar bear, mascot of Terry's protein shake, next to the shelf containing Terry's products in a supermarket is an example of a ________. Rebate Point-of-purchase display Sample Product demonstration Premium
Point-of-purchase display. Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale. Think of your last visit to the local Costco, Walmart, or Bed Bath & Beyond. Chances are good that you were tripping over aisle displays, promotional signs, "shelf talkers," or demonstrators offering free tastes of featured food products. Unfortunately, many retailers do not like to handle the hundreds of displays, signs, and posters they receive from manufacturers each year. Manufacturers have therefore responded by offering better POP materials, offering to set them up, and tying them in with television, print, or online messages.
What are the purposes of promotion?
Promotion is any communication by marketers that informs, persuades, reminds, and builds relationships with potential/actual buyers of a product Promotion Mix (aka Marketing Communications Mix) Advertising Public Relations Sales Promotion Personal Selling Direct and Digital Marketing
Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages? advertising public relations sales promotion direct and digital marketing personal selling
Public relations. Public relations involves building good relations with the public by generating favorable publicity, building up a good corporate image, and handling of negative rumors, stories, and events Press releases Annual reports Sponsorships Special events Web pages Community relations Charitable donations -PR can have a strong impact on public awareness at a much lower cost than advertising can, and PR results can sometimes be spectacular. Although PR still captures only a modest portion of the overall marketing budgets of many firms, it is playing an increasingly important brandbuilding role. In the digital, mobile, and social media age, the lines between advertising and PR are becoming more and more blurred. -"Free" media attention Importance of PR has grown as costs of other media have increased Consumers becoming more skeptical about marketing, so PR becoming more important
Using a ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product. pulse push pull buzz blitz
Pull. * Motivates consumers to actively seek out a specific product 1. Producer encourages consumers to want the product (e.g., sales promotions, advertising, social media) 2. Retailer demands product from the producer * B2C do more pulling (investing the most on advertising) -A promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel.
Under which promotional mix strategy does the producer direct its marketing activities toward retailers to induce them to carry a product, who in turn try to promote it to final consumers? blitz strategy pull strategy pulse strategy buzz strategy push strategy
Push strategy. * Places the product in front of customers to make sure they are aware of its existence 1. Producer encourages retailers to carry a product (e.g., trade promotions and personal selling) 2. Retailer encourages consumers to buy (e.g., sales promotion, advertising, and personal selling) * B2B do more pushing (investing the most on personal selling) -A push strategy involves "pushing" the product through marketing channels to final consumers. The producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and promote it to final consumers. For example, John Deere does very little promoting of its lawn mowers, garden tractors, and other residential consumer products to final consumers. Instead, John Deere's sales force works with Lowe's, The Home Depot, independent dealers, and other channel members, who in turn push John Deere products to final consumers
Bose offers $50 cash back to customers who purchase a new speaker and send in a proof of purchase. This is an example of a ________. Price Pack Rebate Premium Sample Point-of-Purchase Promotion
Rebate. Rebates (or cash refunds) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. The customer sends proof of purchase to the manufacturer, which then refunds part of the purchase price by mail. For example, Toro ran a clever preseason promotion on some of its snowblower models, offering a rebate if the snowfall in the buyer's market area turned out to be below average. Competitors were not able to match this offer on such short notice, and the promotion was very successful.
________ is defined as analyzing, planning, implementing, and controlling the personal selling efforts of a company. Sales force management Business intelligence Benchmarking Sales quota Sampling
Sales Force Management. Sales force management is planning, implementing, coordinating, and controlling the personal selling efforts of the firm. -We define sales force management as analyzing, planning, implementing, and controlling sales force activities. It includes designing sales force strategy and structure as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople. -In the territorial sales force structure, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that territory -If a company has numerous and complex products, it can adopt a product sales force structure, in which the sales force specializes along product lines. For example, GE employs different sales forces within different product and service divisions of its major businesses. -Using a customer (or market) sales force structure, a company organizes its sales force along customer or industry lines. Separate sales forces may be set up for different industries, serving current cust
Retailers are usually classified based on the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________. the strength of their Internet presence the relative prices they charge the number of locations they have the stability of their financial situation their sustainability and environmental policies
The relative prices they charge. They can be classified in terms of several characteristics, including the amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized. 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. REI, Sunglass Hut, Sephora, Williams-Sonoma 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. Macy's, Sears, Neiman Marcus 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. Kroger, Publix, Safeway, SuperValu -Convenience store A relatively small store located near residential areas, open 24/7, and carrying a limited line of high-turnover convenience products at slightly higher prices. 7-Eleven, Circle K, Speedway, Sheetz Discount store A store that carries standard merchandise sold at lower prices with lower margins and higher volumes. Walmart, Target, Kohl's -Off-price retailer A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail. These include factory outlets owned and operated by manufacturers; independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations; and warehouse (or wholesale) clubs selling a limited selection of goods at deep discounts to consumers who pay membership fees. Mikasa (factory outlet); TJ Maxx (independent off-price retailer); Costco, Sam's Club, BJ's (warehouse clubs) -Superstore A very large store that meets consumers' total needs for routinely purchased food and nonfood items. This includes supercenters, combined supermarket and discount stores, and category killers, which carry a deep assortment in a particular category. Walmart Supercenter, SuperTarget, Meijer (discount stores); Best Buy, Petco, Staples, Bed Bath & Beyond (category killers)
What are three forms of types of service?
-1. Self-service: customer performs own locate-compare-select process * Convenience goods, some shopping goods * E.g. Walmart, Kohl's, Target, supermarkets 2. Limited service: more sales assistance * Shopping goods * E.g. JCPenney, Macy's 3. Full service: complete sales assistance at every phase of shopping process * Results in higher prices, specialty goods * E.g. Neiman Marcus, Williams-Sonoma, Tiffany & Co
Which type of retailer has online shopping negatively impacted the most? High-end malls Low-end malls Service retailers Warehouse clubs Middle-market malls
-Middle-market malls. Online shopping has largely affected middle-market malls. Traditional malls with boring chain stores have been badly hit. High-end and low-end malls are seeing growth Increased eating out à more bars and restaurants. -More malls than were needed, rising rent costs, changing consumer habits. Consumers like experiences. Why service retailers are seeing a lot of growth. Consumers not as interested in material things.
What is direct and digital marketing?
-connecting directly with carefully targeted consumers (one-to-one, interactive basis) to obtain an immediate response and cultivate lasting customer relationships Telemarketing Kiosk Marketing Direct-response TV Catalog All things digital Email Social media Mobile Targeted online ads
What are some differences between advertising and personal selling?
Advertisement One way - communicates to customer Cannot handle objections Cannot tailor message Cannot problem solve Cannot negotiate Easy to ignore - 1000s others/day No feedback to company Cannot forecast sales Personal Selling Two way - hear from customer and communicate to customer Can handle objections Can tailor message Can problem solve Can negotiate Cannot ignore—salesperson is in your office Provide feedback to company Can help forecast sales
What should be recruited for and selected in salespeople?
Best Qualities and Talents: Intrinsically motivated Disciplined work style Ability to close a sale Ability to build relationships with customers
Which of the following IS NOT a type of off-price retailer? wholesale club factory outlet independent warehouse clubs category killer
Category killer is not off-price. -As the major discount stores traded up, a new wave of off-price retailers moved in to fill the ultralow-price, high-volume gap. Ordinary discounters buy at regular wholesale prices and accept lower margins to keep prices down. By contrast, off-price retailers buy at less-than-regular wholesale prices and charge consumers less than retail. Off-price retailers can be found in all areas, from food, clothing, and electronics to no-frills banking and discount brokerages. The three main types of off-price retailers are independents, factory outlets, and warehouse clubs. -A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail. These include factory outlets owned and operated by manufacturers; independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations; and warehouse (or wholesale) clubs selling a limited selection of goods at deep discounts to consumers who pay membership fees. -Mikasa (factory outlet); TJ Maxx (independent off-price retailer); Costco, Sam's Club, BJ's (warehouse clubs) -Giant specialty stores, the so-called category killers (for example, Best Buy, Home Depot, Petco, and Bed Bath & Beyond). They feature stores the size of airplane hangars that carry a very deep assortment of a particular line. Category killers are found in a wide range of categories, including electronics, home-improvement products, books, baby gear, toys, home goods, party goods, sporting goods, and even pet supplies
Upon determining who will want the product, retailers must determine in more detail how to ________ in those markets. differentiate and position themselves entice customers to them properly price the product offerings promote themselves offer the correct products
Differentiate and position themselves. -Retailers must first segment and define their target markets and then decide how they will differentiate and position themselves in these markets. Those that try to offer "something for everyone" end up satisfying no market well. By contrast, successful retailers define their target markets well and position themselves strongly
Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands. pull strategy vertical diversification integrated marketing communications nonpersonal communication channels buzz marketing
Integrated marketing communications. * Integrating and coordinating the company's various communication channels (e.g., advertising, PR, sales promotion, personal selling, and direct/digital marketing) to provide a clear, consistent, and compelling message about the company and its products. Purchase is just one type of action that an IMC can encourage Other goals: Gather more information (e.g., by visiting a website, going to a brand's Facebook page, etc.) Donate money Volunteer Change attitudes toward brand, company, person, etc. Change (non-purchase) behavior (e.g., wearing seatbelts, getting a flu shot, eating healthy, don't drink and drive, etc.) Vote -Creates a single unified voice Begins with the customer Seeks to develop relationships Involves 2-way communication Its effect is measurable Memory of content Changes in attitude toward brand Store visits Purchase behavior WOM
What is omni-channel retailing?
Integrating in-store, online, and mobile channels into a unified shopping experience * Browsing on computer à purchasing on mobile app * Order online à pick up in store ("click-and-collect") * Order online à return in store * Going online to check what's in stock at a local store
Specialty stores carry ________ with ________ within them. narrow product lines; shallow assortments wide product lines; deep assortments narrow product lines; deep assortments only convenience products; shallow assortments wide product lines; shallow assortments
Narrow product lines with deep assortments. Retailers can also be classified by the length and breadth of their product assortments. Some retailers, such as specialty stores, carry narrow product lines with deep assortments within those lines. Today, specialty stores are flourishing. The increasing use of market segmentation, market targeting, and product specialization has resulted in a greater need for stores that focus on specific products and segments. By contrast, department stores carry a wide variety of product lines
What are the retailers that offer low prices?
Off-price: buy at less than wholesale, then sell for less. Discount: buys at wholesale then uses sales volume. Factory Outlets-run and owned by manufacturer themselves. Warehouse: limited selection at very steep discounts. Have to pay an annual membership fee.
What are the four P's of marketing?
Product, Price, Place (distribution), Promotion
What are some strengths and weaknesses of sales promotion?
Short-term incentive to motivate trial/purchase. Strengths: can be implemented quickly, easy to quantify results, enhance effectiveness of other promotional mix elements Weakness: dependence on discounts, not ideal for luxury products -Stimulates inquiries Generates product trial Build traffic Increase purchase rate Encourage repurchase -Sales promotions mostly impact behavior, not attitudes. Sales promotion an incentive to buy, advertising gives a reason to buy
