Marketing Final

What is "Brand-Jacking" and is it ethical? How did Greenpeace use it?

Using the domain name with a competitors trademark and running your own competing software through that domain. It is not an ethical practice. Greenpeace used legos to attack shell

Relationship sales requires several key elements, according to Andre Thornton and KeyBank. What are they and what makes it successful for both parties in B2B marketing ?

?? Long term Executive contacts Integrity Leadership Wide range of contacts solutions vs products (needs based selling) Innovation - new ideas, selling process Relationship sales are very successful for both parties. On the sales side, they gain a long term client and relationship. On the client side, they gain a salesperson who truly understands their needs and can help solve them.

What value do "Retailers" play as a Channel Partner? Name four.

1) Offer variety for consumers 2) Separate large product volume into consumer purchase quantities 3) Maintain inventory levels 4) Make additional services available to consumers - trained personnel, financing options, ability to try products

What is the role of a Marketing Manager in developing a promotional strategy for a company?

1. Identify targets for promotion 2. Establish goals for promotion 3. Select the promotion mix 4. Develop the message 5. Select media for use in promotion 6. Prepare promotion budget 7. Establish measures of results

What are the different elements when compensating a sales team member?

1. Salary 2. Incentives - generally commissions tied to sales volume or profitability, or bonuses for meeting/exceeding goals. 3. Commission - payment based on short-term results 4. Non-financial incentives - promotional opportunities, etc.

What percentage of the economy has shifted to services? Why?

80%. Changing demographics represent a major driver for this change. For example, as baby boomers retire, they spend more on travel and entertainment. Younger generations place more value on technology and experiences than items.

What role can a channel partner play is helping with the physical distribution of a product?

A channel partner can help get products into a wide variety of hands by using their connections. ??

What are the four steps in the AIDA model? Why is it important to go through each step?

AIDA model illustrates the consumer purchase decision process. Going through each step guides the consumer to the ultimate purchase of the product. Attention - raising awareness and gaining customer's attention Interest - using persuasive communication to translate customer attention into interest. Desire - Customer moves past a need and begins to want the product. Promotion feeds desire through strong persuasive communication. Action - the purchase itself. To stimulate the ultimate purchase, marketers rely on sales people and sales promotion to close the stale.

What are the advantages and disadvantages of electronic retailing?

Advantages: Extensive Selection Considerable information available to product research and evaluation Build product communities Individualized customer experience Disadvantages: Easier for customers to walk away Reduced ability to sell features and benefits Security of personal data

"Advertising Wear-out" can occur to every promotional campaign. What is it and why does it happen?

Advertising wearout is when customers become bored with an advertising campaign. Consumers tastes and preferences change quickly, and they expect constant content updates.

Name the six elements that make up the "Promotional Mix". What are the Pros and Cons of using each type of Promotion?

Advertising: Pro - mass market, Con - less personal Sales Promotion: Pro - enhances other forms of promotion and entices consumers, Con - ineffective when used alone. Public Relations (PR): Pro - low cost, high visibility, Con - less personal Personal Selling: Pro - very personal, Con - can feel pushy or be unwanted Direct Marketing: Pro - personalized and can happen at any location, interactive, Con - many consumers don't notice it, and it can be viewed as an invasion of privacy. Interactive Marketing: Pro - enables customers to control information flow and encourages more customer-company interaction. Con - some consumers may find the interactive marketing cheesy or insincere.

Give several examples of how "Marketing Communications" must adapt in a Global Marketing expansion plan?

Advertising: marketers can adjust color, language, content, images, and even entire ad strategies depending on how the organization functions. Personal selling: the focus of business relationships varies around the world. (more focused on business or more focused on the personal aspects). Sales promotion: Depending on the target population, product trial can be very important (ex: rural areas who have never been exposed to the products). Public relations: PR must be coordinated throughout global brands in order to maintain cohesiveness and prepare in case of a crisis.

Name several examples of Non-Store Retailing and describe their effectiveness?

Catalog Retailers: saves time for consumers Direct Selling: effectiveness comes from buying products from people you know and trust Television Home Shopping: allows consumers to see the product demonstrated. Vending machines: convenience and higher prices

Why is a network or virtual organization an important business strategy? What makes it successful and what could backfire?

An organization that eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

Why has B2B E-commerce grown faster than B2C? What is a "market-maker".

B2B has grown faster because many companies require their suppliers to link with their electronic data interchange systems in order to become more efficient, ensure that orders are placed and arrive on time, etc. market makers - websites that bring buyers and sellers together

What sales strategy did "Jungle Jim's" and "Bass Pro-Shop" use in making their stores successful?

Both stores created a large consumer experience. The stores had activities, restaurants, and attractions that brought consumers into the store to have a fun day, which then resulted in them buying things before they left.

What is "Institutional Advertising"? Give an example.

Institutional advertising's goal is to promote an industry, company, family of brands, or some other issues broader than a specific product. Example: California Milk Advisory Board runs a major national television campaign featuring "happy cows."

How can good Service Recovery after a service failure actually help a business relationship between a service provider and their customers?

Businesses who focus on service must recognize that service failures will happen, no matter how good their business is. When properly handled through service recovery, service failure does not necessarily impact customer satisfaction, loyalty, or retention. Sometimes, customers are so impressed that levels of satisfaction and trust go up after a proper service recovery. Most customers understand that service failure will happen sometimes, and will become even more loyal if they feel taken care of when this happens.

What is "Buzz Marketing" and when is it best used?

Buzz marketing is consumer-to-consumer, word-of-mouth communication generated about a brand in the marketplace.

What are the advantages to the logistics system of a company to use a channel?

By using a channel, companies are able to more widely distribute their products by utilizing their channel partner's connections and areas of expertise. ??

Describe how Captive pricing and two part pricing are tactics designed to keep customers?

Captive pricing (complementary pricing) entails gaining a commitment from customer to a basic product or system that requires continual purchase of peripherals to operate. In the service sector, this is often called two part pricing. Firms that charge monthly fees and then charge for specific services would fall under this category. This is designed to keep customers because companies know that customers will go back and buy the products needed to keep their initial purchase running as long as they are happy.

What ways are discounts passed on to a customer?

Cash discounts - elicit quicker payment of invoices Trade discounts - provide an incentive to a channel member for performing some function in the channel that benefits the seller. Quantity discounts - taken off an invoice price based on different levels of product purchased. Seasonal discounts - reward the purchaser for shifting part of the inventory storage function away from the manufacturer Promotional Allowances - manufacturer will give a check back to the retailer in response to them running an ad for them.

How are "power" relationships with channels often played out? (struggles and controversies)

Channel power is the degree to which any member of a marketing channel can exercise influence over the other members of the channel. Coercive power: explicit/implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request of expectations. Reward power: power because a channel captain can write big orders (provide big payoffs). Expert power: utilizing their unique competencies to influence others in the channel. Referent power: when a channel member is respected, admired, or revered based on one or more attributes. Legitimate power: results from contracts such as franchise agreements or other formal agreements.

In the era of the New Media, name several essentials in Website Presentation and customer interface when designing the site.

Context - site layout and design Content - text, pictures, sound, and video of the site Community - the various ways the site enables user-to-user communications Customization - Site's ability to tailor itself to different users or allow users to personalize the site Communication - The way the site enables two-way communications between user and site Connection - Degree the site is linked to other sites Commerce - Site's ability to enable transactions

Why is "cost leadership" extremely important when competing in business?

Cost leadership is so important in business because a businesses core cost advantages translate directly to an edge over their competitors based on much more flexibility in their pricing strategies as well as their ability to translate some of the cost savings to the bottom line.

How are channels used in the wine industry (Creston) and how do they help a small company??

Creston uses its channels to reach a variety of customers and make its name more known. Creston uses traditional channels like brokers and distributors, but also mail order wine clubs, a deal with Trader Joes to make a specialty wine, and directly selling to restaurants and other stores in CA. It also sells online to individuals.

What is the financial reward for a company to offer "customer delights" in their services?

Customer delight - exceeding customer expectations Financial reward is customer loyalty and a high return on customer investment.

What is the best way for a relationship seller to handle objections from a client?

Depends on the objection: 1. Product Need: customer doesn't believe that they need to change from the way they've always done things. Answer: well-conceived value proposition that clearly explains how the product will benefit them and how it is better than the current solution. 2. Company Trust: customer doubts new company's ability to deliver what is needed, when it's needed and where it's needed Answer:establish a relationship with the buyer built on trust - takes time 3. Need More Time: usually indicates that the value proposition hasn't convinced them Answer: further develop the value proposition 4. Price: customer does not believe that the benefits are worth the cost Answer: either lower the price until they feel as if they're getting a good deal, or increase the benefits for the same price.

What is a Direct Marketing Campaign and what are some channels that might be used?

Direct marketing campaign is an interactive marketing system that uses one or more advertising media to affect a measurable response and/or transaction at any location. Channels include direct mail, catalogs, telemarketing, and Internet marketing.

When Marketing to moms, how does Emotional Branding play a role?

Emotional Branding is one of the best ways to market to moms because it is a chance to tug on their heartstrings. If done right, the marketing will be able to reinforce the bond between mother and child, and that of its unconditional love and trust.

What is the difference between EDLP and high/low pricing?

Everyday low price is a strategy to reduce investment in promotion and transfer part of the savings to low price. They rely on generating buzz in the market about the EDLP to create and maintain customer traffic and sales volume. High/low pricing - firms rely on periodic heavy promotional pricing, primarily communicated through advertising and sales promotion, to build traffic and sales volume.

Name three Legal issues that could occur with a Channel partner?

Exclusive dealing: When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products Exclusive territories: protects an intermediary from having to compete with others selling a producer's goods. Tying contracts: when a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy.

What facilitating functions can be performed by middlemen in the areas of finance, market research and risk taking?

Financing - help provide credit. Market research - Intermediaries are closer to end-user consumers and business users than manufacturers, so they are in an ideal position to gather information about the market and consumer trends. Risk-taking - They help reduce the risk of others in the channel. Accumulating bulk in perishable goods, product liability lawsuits, etc.

What is the role of a Public Relations Department at a company? Give 4 - 5 examples.

Gaining product publicity and buzz Securing event sponsorships (for the company and its brands) Managing a crisis Managing and writing news stories Facilitating community affairs Managing relationships with members of the local, national, and global media (media relations). Serving as organizational spokesperson. Educating consumers Lobbying and governmental affairs Handling investor relations

Why is it vital to do a Gap Analysis in trying to improve a companies' service? Give examples of some Gaps and why they occur?

Gap model - identification and measurement of differences in key areas of the service delivery process. It's important to do a Gap Analysis so that firms accurately understand how their customers feel about their service. Gap 1: Management's Perceptions of customer service expectations versus customer expectations of service. This occurs because of a lack of the right customer data, so firms make unfounded assumptions about customers' wants and needs. Gap 2: Management's Perceptions of Customer service expectations versus the actual service quality specifications developed. Again, this happens because of lack of data and unfounded assumptions. Gap 3: Actual service quality specifications versus actual service delivery. Is the service provided in the manner intended? If there is a gap here, it's because management or employees are not getting the job done - possibly because of vague performance standards, poor training, or ineffective monitoring by management. Gap 4: Actual service delivery versus what the firm communicates it delivers. This gap is customer expectations management through marketing communications. Caused by deceptive advertising, overly zealous sales pitches, and coupon promotions backed by too little stock to handle demand. Gap 5: Perceived service by customers versus actual customer expectations of service. Customer expectations vs customer perceptions. Variability or marketing communications can create this gap.

What are the difficulties with the "Gray Market", Dumping, Currency and Tariffs when doing international business and marketing?

Gray Market: unauthorized diversion of branded products into global markets. Gray market distributors divert products from low-price to high-price markets. Dumping: charging less than actual costs or less than the product price in the company's home markets. Currency: currencies float and products are priced using a market basket currencies. Since currencies can easily float 15-20 percent against each other, the assigning of currency values in international contracts is critical. Increasingly, companies want contracts written in their home currency to protect their risk of loss due to currency fluctuations. Tariffs: governments all around the world impose tariffs, fees, and taxes on imported products to protect industries in their home market and increase their revenue. All of these things hurt company's bottom lines.

Guerilla Marketing is a tactic used more commonly these days. What is it and how and when is it most effective?

Guerilla marketing involves using comparatively few resources for promoting products and services to achieve specific goals. If done well, much awareness can be achieved without spending large sums of money on traditional advertising campaigns. The campaigns can be effective when they catch consumers at unsuspecting times (such as a subway station) and in unusual ways when their normal "guard" against advertising is down.

Describe Home Depot's Supply Chain and why is it a competitive advantage?

Home Depot's supply chain is all about speed and getting products into stores as quickly as possible. Something unique about their stores is that there is no storage -- all the product is on the shelves. This means that Home Depot has to stock shelves and schedule deliveries at night. Their process has been fine tuned so that goods don't stay in their shipping facilities for more than 20 minutes.

Why is having an IMC - Integrated Marketing Communication - Strategy so important for a company in their Decision Making Process for promotions?

IMC: the strategic approach companies use to communicate to their target customers. Because an IMC approach is an inherently more strategic approach to communicating with customers, managers who use it are much more likely to consistently communicate the right brand messages to the right customers at the right time through the right media.

What is a "Service-centered" view for a company and why is it important?

In a service-centered view, tangible goods serve as "appliances" for service provision rather than ends in themselves such that in some ways the product becomes secondary or incidental to the service it propagates. This is important because it changes what marketers are marketing and how they approach their marketing strategy. Often, a service-centered approach aligns well with a customer centric approach.

The four characteristics of Services are? Describe them and how do they effect the quality of service

Intangibility - a service cannot be experienced through the physical senses. Quality of service is affected by strong branding, and the tangibles customers CAN experience - company's people, website, marketing communications, office ambience, and pricing. Inseparability - a service is produced and consumed at the same time and cannot be separated from its provider.This heightens the role of the human service providers in the customer experience and quality. Variability - a service's quality can only be as good as that of the provider him/herself. Companies want to remove as much variability as possible to ensure that all customers have a great experience. This means that focusing on hiring and retaining excellent employees is top priority. Perishability - a service can't be stored or saved up for future use. Revenue can be easily lost if companies don't focus on planning.

How are the first four activities in the "Service Profit Chain" the most important to deliver high quality services?

Internal Service quality Employee satisfaction Employee retention/employee productivity external service value These four are very important for services because these become the "tangibles" that define a customer experience, and produce customer satisfaction and customer loyalty.

What criteria is important for team members when they are working globally? What personal considerations? What financial considerations? What reward systems changes?

It is important that team members are aware of the work culture with which they are dealing. They should be able to replicate customs and be respectful of how the other side operates in a business interaction. They also should be compensated appropriately for traveling to clients globally and have additional incentives to produce high quality work.

What challenges does McDonalds have in managing their franchises in China and Europe?

McDonalds has to work within a new culture in order to become a consumer favorite and sell food. They must change their food, tastes, restaurant location strategy, and entire marketing strategy in order to appeal to different values and preferences.

What is "Needs-Based" Selling and when is it most effective?

Needs based selling is about focusing on solutions instead of products. This works really well when a salesperson is able to easily identify a problem that the company is currently facing.

How was Netflix's Service Orientation essential in taking business from their competitors?

Netflix's service orientation was all about the giving the customer what they wanted (no late fees, a no-hassle way to rent movies), and treating every customer like they mattered. Even when something went wrong (such as a major website failure, a mistake in a customer transaction, etc), Netflix responded by offering customers personalized apologies and free services to make up for it. Netflix also focused on customization - movie recommendations for each customer was just one of the many ways Netflix made its customers feel cared for.

How does Nordstrom use Personal Selling in the Retail business and what are the benefits and costs associated with it?

Nordstrom uses Personal Selling Retail by having the employees sometimes serve as personal shoppers for customers, and in general being more available to customers. Like Zappos, Nordstrom tries to be as attentive as possible to the needs of any customer and will go above and beyond. The main benefit is that it increases the lifetime value of the customer, while the costs associated are that not as many customers can be helped.

Pricing strategy is a serious issue in globalization. What are the issues of One World Price versus Cost-based price and local market price?

One World Price: There is one price in every market. This approach enables a company to standardize other elements in the marketing mix and simplifies financial forecasting. However, this is not used very often because costs change in every market, and local conditions (competitive pressures, economy, local market factors) will have effect on final price. Local Market Conditions Price: Company assigns a price based on local market conditions with minimal consideration for the actual cost of putting the product into the market. This is important, but local conditions may not reflect the reality of bringing the product to market for an international company (local companies do not incur transportation costs, tariffs, etc). Cost-Based Price: considers cost plus markup to arrive at a final price. While the focus on costs precludes charging an unprofitable price, it does not consider actual market conditions.

What is the role of a telemarketing center - inbound and outbound?

Outbound telemarketing involves calling potential customers at their home or office, either to make a sales call via telephone or to set up an appointment for a field salesperson. Inbound telemarketing, where prospective customers call a toll-free number for more information, is also used to identify and quality prospects. Both of these efforts are used to generate prospective customers.

If one practices "Penetration Pricing" what strategies will a company execute?

Penetration pricing is when a firm starts their product at low prices (either to effectively enter a new market, deter competitors from entering a market, or to gain market share), and then slowly creep up their prices over time.

What are the advantages and disadvantages of Personal Selling?

Personal selling is a two-way communication process between salesperson and buyer with the goal of securing, building, and maintaining long-term relationships with profitable customers. Pros - build a personal relationship with customers, better understand the customer needs, higher customer retention. Cons - very difficult, can come over as pushy, a large sales force is costly for a company to maintain.

Name three types of Product Advertising?

Pioneering Competitive Comparative

Many brands use "Prestige" pricing tactics? What psychology is used and how does it work?

Prestige pricing is lending prestige to a product or brand by virtue of a price relatively higher than the competition. Prestige pricing plays on psychological principles that attach quality attributions to higher-priced goods. This pricing strategy does not follow tradition price / demand curves.

Price bundling and unbundling are tactics used by many sales team. Why and what are the advantages?

Price bundling is when companies offer deals in order to purchase more products. This often causes customers to spend more money than they otherwise would have on services/products that they don't necessarily want or need. And oftentimes, these extras bring in higher margins for the company. Disadvantages: In unregulated industries, it can become unclear what the unbundled price is, as firms will sometimes set artificially high prices in order to force consumers into buying the bundled products. Also, there are some ethical issues with price bundling (car industry -- making it extremely hard to buy a car without all the extras).

Why are price changes tough to execute? What is a "price war"

Price changes can be tough to execute because customers will often notice right away -- a change in price can drastically affect demand. A price war is when firms engage in trying to outdo one another for the lowest price.

What is the good news and bad about price skimming?

Price skimming is when you start out with a really high price for your product and then slowly creep it downwards as more and more consumers buy it. Good news is that it can establish your product as prestigious, and can be appropriate within a niche strategy. Bad news is that in can be inappropriate when a product is trying to differentiate itself within the larger market.

Name four or five legal considerations in pricing?

Price-fixing: when companies collude to set prices at a mutually beneficial high level. Price discrimination: occurs when a seller offers different prices to different customers without a substantive basis, such that competition is reduced. Deceptive pricing: knowingly stating prices in a manner that gives a false impression to customers (also known as bait and switch) Predatory Pricing: a strategy to intentionally sell below cost to push a competitor out of a market, then raise prices to new highs. Difficult to prove. Fair trade laws: These no longer exist. Allowed manufacturers to establish artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices. Minimum markup laws: These no longer exist. Required a certain percentage markup to be applied to products.

The first step in pricing decisions is to establish your objectives. How do pricing decisions affect the perception of the overall value of an offering?

Pricing objectives are the desired or expected result associated with a pricing strategy. Pricing decisions will affect the product's position, branding, and financial objectives. Customers will have a distinct perception of the product because of its pricing -- is it high quality or low quality, high value or low value?

What does an examination of the prices of "Sprecher Gourmet Soda" say about pricing strategy?

Pricing strategy depends on usage, utility, location, needs state, and want state.

How does the product lifecycle affect promotional mix decisions? Give an example.

Product Life Cycle involves the introduction, growth, maturity, and decline stages. Introduction: focus on gaining attention through PR and advertising. Investment in promotion has little ROI to show for it. Growth: Advertising increases and peaks. Focus on brand and brand comparisons. Sales promotion used to gain trial. Personal selling is active. Direct marketing and interactive marketing build share. Maturity: Advertising may begin to decrease. Direct and interactive marketing used to keep customers loyal. Sales promotion props up volume. Reduced promotional expenditures allows for increase in bottom line. Decline: Little or no promotion. Occasional "fire sales" to keep brand in front of remaining users. Heavy use of direct and interactive marketing.

There are many options for Sales Promotions. Give 3 of the 9 types and describe them.

Product sampling: a physical sample of the product is given to consumers Coupons: instant price reduction at point of sale Rebates: price reduction for purchase of a specific product during a specific time period Contests and sweepstakes: may suggest a purchase but legally must be offered without a purchase requirement Premiums: another product offered free for purchasing the brand targeted in the promotion Multiple-purchase offers: incentive to buy more of the brand at a special price. Point-of-purchase materials: displays set up in a retail store to support advertising and remind customers to purchase. Product placements: having product images appear in movies, on television, or in photographs in print media. Loyalty programs: accumulate points for doing business with a company.

What is the difference between a "push" and a "pull" promotional strategies?

Push strategy: the focus is on the channel of distribution, and in getting the offering into the channel. This strategy typically relies on personal selling and sales promotion directed toward channel members. Pull strategy: the focus shifts to stimulating demand for an offering directly from the end user. Advertising, consumer-directed sales promotion, PR, or direct and interactive marketing can be combined in various ways to target end users, creating demand that results in the channel making an offering available for purchase.

Three types of "promotional appeals" are Emotional, Rational and Moral. Give an example of each.

Rational Appeals: centers on benefits an offering can provide to a customer, such as quality of the product, associated service, low price, good value, dependability, and performance. Example: Maytag ads featuring repairman who never had anything to do because a Maytag doesn't break down. Emotional Appeals: plays on human nature using emotions to develop promotional messages. Example: Aflac duck commercials - using humor. Moral Appeals: used to strike a chord with a target customer's sense of right and wrong. Example: The Salvation Army uses the tagline "Doing the Most Good" to reflect its reputation of providing more benefits out of donation dollars than many other charities.

Ritchie Brothers is based on a "auction" style? How do they get the best price in their offerings?

Ritchie Brothers get the best price in their offerings by using various tactics to enhance a sale: they give each product tune-ups and a paint job, they list photos and descriptions online to get customers excited, they only have a few sales a year (and in auction form) to increase the customer's sense of urgency.

Give four or five common approaches to Advertising execution that are frequently seen?

Slice of Life: Portrays regular people in everyday settings Humor: Gains attention and interest through humorous portrayal. Mood/Affect: Sets a positive tone around the offering Research-based: A brand provides scientific evidence of its superiority. Demonstration: Physically shows how the product works. Musical: Uses music to connect directly to a brand or product (jingles) Endorser: Connects a celebrity, actor, or consumer with the product to sanction and support its use. Lifestyle: Portrays ways a product will connect with a target consumer's lifestyle. Fantasy Creation: Offers a fantasy look at how it might be if a customer purchases the product. Animation: features an animated character or animal.

Why is "Sports Marketing" so effective in Advertising and Promotion?

Sports Marketing is so effective because of its mass appeal, and because of the emotional side of the campaigns. Example: Nike ad we watched in class. Even if someone isn't a professional soccer player, they are easily swept up in the themes of competition, hardship, and overcoming obstacles.

How did Staples want to use their stores in order to offer complimentary services? Why was this smart use of resources and a way to grow business?

Staples used their stores to offer printing services for their customers. This was a smart way to use resources because printing services was a growing industry. Plus, offering this top-of-the-line service was a great way to get small business owners in their doors, giving them the ability to offer them more products from their shelves.

Starbucks has been successful because their global stores have a similar look and feel to them? How do they ensure global consistency?

Starbucks similar look is easy to replicate since it requires following a blueprint to build the place. However, what is impressive is its ability to replicate the feel, which comes from hiring and training employees to provide service to the Starbucks standard. They sometimes send their best baristas to new locations to train new employees and emphasize quality of service above all else.

What are the ethical issues behind "paid blogging" and "Green-washing"?

The largest issue is that both paid blogging and greenwashing are not genuine - they are not telling the truth to consumers.

Why is it important to do a "Transaction Cost Analysis" when putting together a marketing program? What does a TCA tell you about spending your money?

TCA states that when substantial transaction-specific assets are necessary to sell a manufacturer's product, the cost of using and administering independent agents is likely higher than the cost of hiring and managing a company's sales force. It's important to do a TCA analysis in order to understand the most cost-efficient sales method.

Why is "Team Selling" so important in maximizing sales resources?

Team selling is very important because team members are able to share resources and help each other out. No team member has to reinvent the wheel. Instead, it's about recognizing that everyone is on the same team and are working for a bigger cause than just personal sales.

Name 4-5 examples of advertising media and highlight the pros and cons of each.

Television Pros: combines multimedia, appeals to multiple senses, works for both mass coverage and selected markets, infomercial option Cons: Impressions are fleeting, short shelf life, clutter of competing ads, TiVo effect, high cost Radio Pros: Quick placement and high message immediacy, easy selectivity by market and station programming, low cost, geographic flexibility Cons: Audio only, short shelf life, clutter of competing ads Newspapers Pros: Flexible, timely, highly credible medium Cons: Short shelf life, can be costly, poor reproduction quality, low pass-along rate Magazines Pros: Many titles, high demographic selectivity, good reproduction quality, high pass-along rate Cons: Long lead time for ad placement, final location of ad within publication cannot usually be guaranteed Outdoor Pros: Repeat exposure in heavy traffic areas, low cost, fewer competing ads, easy geographic targeting Cons: Space and structure limit creativity, sometimes requires longer-than-desired time commitment, public discontent over environmental clutter Direct Mail Pros: High audience selectivity, creates feel of one-to-one marketing, flexible Cons: Overuse and "junk mail" image, too many competing ads, high cost Online and social media Pros: Interactive capabilities, flexible, timely, low cost per exposure Cons: Reader in control of exposure (click-through), spam, variations in connectivity speed and computers, privacy concerns

What strategy has the "Mall of America" used to stay as the leader in their industry? What is the future of the "shopping mall" with the advent of new media?

The Mall of America has created a consumer experience, using rides, attractions, and other experiential attractions to draw consumers into stores. The future of the shopping mall will be very similar to this -- creating an entire experience for customers that will integrate technology for a seamless experience.

Why are UBER and AirBNB being successful as a Global Model for expansion? When is the global experience transferrable?

They are being successful because they are primarily a software platform. They are able to hire out contractors (drivers and home rentees) that make their software possible to use. This is transferable for other companies that are primarily in software business and don't need a large presence in the country or area itself.

The CMO for the Georgia Aquarium developed an effective promotion to introduce his "assets" to the public. What did they do and why was the promotion so effective.

They did a contest that gave people the chance to swim with dolphins?? This led to a lot of public interest in the aquarium and gave people the chance to interact with the animals instead of just observing them.

How did Target use the "Lilly Pulitzer" clothes promotion to market their brand name?

They had an exclusive relationship with Lily Pulitzer to have new items sold in Target stores. There was a lot of buzz around the campaign, which led to all items selling out in the first day and creating a lucrative secondary market. This helped with marketing Target's brand name because it showed they can make a move to carry nicer brands such as Lily Pulitzer.

How does the Quick Service Restaurant industry (Taco Bell) use Pricing as a competitive weapon?

They use pricing as a competitive weapon by taking part in value pricing. They knew that it wasn't just price that was important to consumers, but how much food they got for their price. So instead of raising prices, they did everything they could to fit the most food that was extremely filling into their low price point. This was very popular with consumers.

Holiday Inn Express used an Ad Agency (Fallon) to conduct a targeted campaign. What process did they use to develop it and why was it effective?

They used an ad agency to find the demographic they wanted to target, which they dubbed "road warriors". This group was typically men, aged 25-44, who traveled during the week by car. Since they spent a lot of time on the road and knew the ins and outs of travel, Holiday Inn Express launched the "stay smart" campaign to strike a chord with this group.

What is competitor based pricing and why is it often used to determine a price?

This approach is when marketing managers decide to price at some market average price, or perhaps above or below it in the context of penetration or skimming objectives.

How can Service "differentiate" your product from your competitors?

This can be hard for your competition to replicate. Once a firm is able to deliver great service as a differentiator, it is much more likely to provide a sustainable competitive advantage than are other sources of differentiation.

Disintermediation often occurs when adding new e-channels. When do they help a business grow and improve market share?

This is the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries - common in the electronic channel. They help a business grow and improve market share when they have infrastructure - channels and supply chain practices - to support this e-commerce.

What is "Product Line" Pricing and how is it used?

This is when marketing managers develop a rational pricing strategy across a complete line of related items. Various price points help communicate the differences in benefits within a product line.

Financial executives often favor "profit maximization and Target ROI? Why is it dangerous to a company to let the financial team pick the pricing strategy and not the marketing execs?

This strategy is where a bottom line profit is established first and then pricing is set to achieve the target. This does not take into account the short and long-term impacts of the pricing strategy on other important market and customer-related elements of success, and the product becomes strategically vulnerable.

How are the strategies of value pricing implemented? Are they more valid? Accurate? Fairer?

Value pricing attempts to consider the role of price as it reflects the bundle of benefits sought by the consumer. Pricing decisions are strongly driven by the sources of differential advantage a product can realistically deliver. A marketing manager tries to ensure that the offering meets or exceeds the customer's expectations. If the strategy is done right, customers may perceive them to be more accurate and more fair. However, if a company promises a certain value and does not deliver, this is the quickest was to alienate customers.

What is "viral marketing" and why has the New Media enabled it?

Viral Marketing: marketing phenomenon that facilities and encourages people to pass along a marketing message. New Media has enabled it because of the immediacy and personalization of social networks.

How do Kraft Nabisco and Oreos Brand Management practice good, global brand practices when marketing their product line?

When marketing their product lines, they take into account the distinct tastes and preferences of consumers in different counties. They change packaging, parent companies, the product itself, size of package, and channels.

How does Zappos use Personal Selling for an online Business?

Zappos uses Personal Selling by allowing its employees to stay on the phone with customers for as long as the customer desires. Additionally, employees are supposed to call customers to check in and see how they like their shoes. Another thing Zappos does is look at three different competitor websites to see if they can get a better price for the customer, which shows it cares about the lifetime value of a customer.

What can a "Service Blueprint" reveal about a company's business process?

service blueprints - a complete pictorial design and flow chart of all the activities from the first customer contact to the actual delivery of the service. Creation of the document serves to uncover potential bottlenecks in the service delivery system before it goes operational. It also helps train employees and provides a tool to integrate service topics into a performance evaluation.