MKT 300 Exam 4 (final)
Brokers and agents both:
- Negotiate purchases and expedite sales in exchange but do not take title to products - Perform a limited number of services in exchange for a commission, which generally is based on the product's selling price - Know their markets well and often form long-lasting associations with customers - Enable manufacturers to expand sales when resources are limited, benefit from the services of a trained sales force, and hold down selling costs
Analysis includes
- locations - demographics - lifestyle - consumer attitudes -WHY THEY BUY
advantages of trade sales promotion
- provide an incentive for resellers to handle new products - achieve temporary price reductions - Stimulate purchase of items in larger-than normal quantities
Advantages of Personal Selling
-Provides detailed explanation/demonstration of product -Message can be varied according to motivations of each customer -Can be directed only to qualified prospects -Can purchase personal selling in small increments -Most effective promotion form in obtaining sale and satisfying customer
Integrated Marketing Communications (IMC)
-coordination of all promotion and other marketing efforts for maximum informational and persuasive impact on customers -IMC promotes efficiency/effectiveness -Mass media is used -New promotional tool are a lot more targeted
Types of Wholesalers
1. Merchant wholesalers 2. Full service wholesalers 3. General-merchandise wholesalers
Storyboard
A blueprint that combines copy and visual material to show the sequence of major scenes in a commercial
dealer loader
A gift given to a retailer that purchases a specified quantity of merchandise
merchandise allowance
A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display
free merchandise
A manufacturer's reward given to resellers that purchase a stated quantity of products
scan-back allowance
A manufacturer's reward to retailers based on the number of pieces scanned
feature article
A manuscript of up to 3,000 words prepared for a specific publication
vertical marketing system
A marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers
viral marketing
A strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly
community shopping center
A type of shopping center with one or two department stores, some specialty stores, and convenience stores (MEDIUM)
Advertising
A written or spoken media message designed to interest consumers in purchasing a product or service
Horizontal Integration
Absorption into a single firm of several firms involved in the same level of production and sharing resources at that level
institutional advertising
Advertising that promotes organizational images, ideas, and political issues
product advertising
Advertising that promotes the uses, features, and benefits of products
reminder advertising
Advertising used to remind consumers about an established brand's uses, characteristics, and benefits
Preapproach
All about preparation
sales promotion
An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it
tying aggreement
An agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well
franchsing
An arrangement in which a supplier (franchisor) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration.
wholesaler
An individual or organization that sells products that are bought for resale, for making other products, or for general business operations
AIDA
Attention, Interest, Desire, Action
Specialty Retailers
Carry a narrow product mix with deep product lines. They are sometimes called "limited-line retailers"
Identify Prospects
Certain types of promotional efforts aim to identify customers who are interested in the firm's product and are likely potential buyers
contractual vertical marketing system
Channel members are linked by legal agreements spelling out each member's rights and obligations
disadvantage of publicity
Companies do not have control over the message being sent out
being able to explain the value of your product offering is _________.
Critical
competition-matching approach
Determining an advertising budget by trying to match competitors' advertising outlays
Prospecting
Developing a database of potential customers
Warehouse Showrooms (General-Merchandise Retailers)
Facility in a large, low-cost building with large on-premises inventories
create awareness
For an organization that is introducing a new product or a line extension, making customers aware of the product is crucial to initiating the product adoption process
limited-line wholesalers
Full-service wholesalers that carry only a few product lines but few many products within those lines
specialty-line wholesalers
Full-service wholesalers that carry only a single product line or a few items within a product line
superstore
Giant outlet offering all food and nonfood products found in supermarkets, as well as most routinely purchased products
Advantages of Publicity
High credibility and low cost
Encourage Product Trial
If customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to product adoption
manufacturer's agents
Independent intermediaries that represent two or more sellers and usually offer customers complete product lines
merchant wholesalers
Independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers (aka jobber, distributor, assembler, exporter, and importer)
selling agents
Intermediaries that market a whole product line or a manufacturer's entire output
Warehouse Clubs (Wholesale Clubs)
Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing (COSTCO, SAM'S CLUB)
mail-order wholesalers
Limited-service wholesalers that sell products through catalogs
drop shippers
Limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products
cash-and-carry wholesalers
Limited-service wholesalers whose customers pay cash and furnish transportation
_________ is critical to business success.
Location
Retain Loyal Customers
Maintaining long-term relationships is a major goal of most marketers
marketing intermediaries
Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products
_____________ word-of-mouth information is much more likely to spread than positive word-of-mouth info.
Negative
Stimulate Demand
Often through ads and sales promotion, particularly important when using a pull strategy
personal selling
Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
straight commission compensation plan
Paying salespeople according to the amount of their sales in a given time period
pull policy
Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel - done primarily through advertising and sales promotion
push policy
Promoting a product only to the next institution down the marketing channel - normally stresses personal selling
customer success manager (CSM)
Provides proactive support to customers to help increase customer value realization over time
product placement
Putting products into TV shows and movies where they will be seen
trade salespeople
Salespeople involved mainly in helping a producer's customers promote a product
sales promotion
Short-term incentives to encourage the purchase or sale of a product or service (coupons)
off-price retailers
Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts (MARSHALL'S, TJ MAXX, HOME GOODS)
TRUE/FALSE: if you have a story with your message, you can be very successful as a market
TRUE
sales territories
The customer groups or geographic districts to which an individual sales person or a sales team sells.
Promotion mix
a combination of promotional methods used to promote a specific product
straight salary compensation
a compensation plan in which salespeople or managers receive a fixed amount of compensation for each hour or week they work
selective distribution
a form of distribution achieved by screening dealers to eliminate all but a few in any single area
category killer
a large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category (dick's, Best Buy, Lowes)
channel captain
a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts
press conference
a meeting used to announce major news events
publicity
a news story type of communication about an organization and/or its products transmitted through a mass medium at no charge
captioned photograph
a photograph with a brief description of its contents
media plan
a plan that specifies the media vehicles to be used and the schedule for running advertisements
department store
a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers (Macy's, Kohl's, JCPenny)
sales contest
a sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements
discount store
a self-service general-merchandise outlet that sells products at lower-than-usual prices (Walmart, dollar general, target)
News Release (Press Release)
a short piece of copy publicizing an event or a product
exclusive dealing
a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers
convenience store
a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods
buy-back allowance
a sum of money given to a reseller for each unit bought after an initial promotion deal is over
buying allowance
a temporary price reduction to resellers for purchasing specified quantities of a product
power shopping center
a type of shopping center that combines off-price stores with category killers
lifestyle shopping center
a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores (Avalon or Halcyon)
neighborhood shopping center
a type of shopping center usually consisting of several small convenience and specialty stores (SMALL)
regional shopping center
a type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers (LARGE)
superregional shopping center
a type of shopping center with the widest and deepest product mixes that attracts customers from many miles away (HUGE)
dealer listings
advertisements that promote a product and identify the names of participating retailers that sell the product
reinforcement advertising
advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it
competitive advertising
advertising that attempts to persuade consumers that a product is different from and superior to any other
comparative advertising
advertising that makes specific brand comparisons using actual product names
pioneer advertising
advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product
Retailing
all transactions in which the buyer intends to consume the product through personal, family, or household use
disadvantages of trade sales promotion
allows people to early buy more than they need at a discount
flighting advertising schedule
an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising
cooperative advertising
an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand
buzz marketing
an attempt to incite publicity and public excitement surrounding a product through a creative event
retailer
an organization that purchases products for the purpose of reselling them to ultimate consumers
advertising platform
basic issues or selling points to be included in an advertising campaign
arbitrary approach
budgeting for an advertising campaign as specified by a high-level executive in the firm
percent-of-sales approach
budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage
procurement
buying
administered vertical marketing system
channel members are independent, but informal coordination achieves a high level of interorganizational management
The significance of marketing channels
channel selection is critically important determines product availability long term commitments; less flexibility functions must create value!
corporate vertical marketing system
combines all stages of the marketing channel, from producers to consumers, under a single owner
pulsing advertising schedule
combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods
Public Relations (PR)
communication function that seeks to build good relationships with an organization's publics, including consumers, stockholders, and legislators
headline
critical because often it's the only part of the ad that gets read
_______ are critically important in supply chain.
data and technology
primary demand
demand for a product category rather than for a specific brand (ex: got milk?)
selective demand
demand for a specific brand
objective-and-task approach (best, most difficult strategy)
determining campaign objectives and then attempting to list the tasks required to accomplish them
Wearout Effect
effect that happens when over exposed to a stimuli and start to acquire negative feelings towards it
multichannel retailing
employing multiple types of retailing
premium money (push money)
extra compensation to salespeople for pushing a line of goods
2 types of franchises
full franchise limited franchise
general merchandise wholesalers
full-service wholesalers with a wide product mix but limited depth within product lines
Rack jobbers
full-service, specialty-line wholesalers that own and maintain display racks in stores
Distribution
getting a product to the consumer
exclusive distribution
giving a limited number of dealers the exclusive right to distribute the company's products in their territories
environmental monitoring
identifies changes in public opinion affecting an organization
channel member activities
information marketing management assortments, cooperation promotion pricing logistics
Broker
intermediaries that bring the buyers and the sellers together temporarily
agents
intermediaries that represent either buyers or sellers on a permanent basis
truck wholesaler (truck jobber)
limited-service wholesalers that transport products directly to customers for inspection and selection
Restricted Sales Territories
manufacturer grants exclusive sales territory rights to distributors
Market Selling
marketing is the business function that identifies your customers and their needs and want
competitive priorities in marketing channels
may be source of competitive advantage effective and efficient supply chain can sustain a business supply chains driven by firm-established goals focus on the "competitive priorities" of speed, quality, cost, or flexibility as the performance objective
communications audit
may include a content analysis of messages, a readability study, or a readership survey
marketing channel
members of supply chain from producer to the consumer right time right place right quantities customer satisfaction
full-service wholesalers
merchant wholesalers that perform the widest range of wholesaling functions
limited-service wholesalers
merchant wholesalers that provide some services and specialize in a few functions
trade sales promotion methods
methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively
logistics management
moving products and materials
Push and Pull strategies are not _________.
mutually exclusive - most companies use both
Channel Integration
occurs when one business owns the organizations at other levels of the channel
General Merchandise Retailers
offer a variety of product lines stocked in considerable depth mostly "self-service" manufacturer brands private-label brands
combination compensation plan
paying salespeople a fixed salary plus a commission based on sales volume
word-of-mouth communication
personal informal exchanges of communication that customers share with one another about products, brands, and companies
Four Possible Elements of a Promotion Mix
personal selling, public relations, sales promotion, advertising
refusal to deal
producers have the right to choose channel members
new introductory promotion
promotion that informs consumers about a new product
online retailing
retailing that makes products available to buyers through computer connections
continuous advertising
runs steadily throughout the year
consumer sales promotion methods
sales promotion techniques that encourage consumers to patronize specific stores or try particular products (coupons)
support personnel
sales staff members who facilitate selling but usually are not involved solely with making sales
supermarket
self-service store offering complete line of food products and some nonfood products
intensive distribution
stocking the product in as many outlets as possible
Exterior Atmospherics
storefront, displays, entrances
Types of Compensation
straight salary straight commission combination
technical salespeople
support salespeople who give technical assistance to a firm's current customers
advertising appropriation
the advertising budget for a specific time period
Vertical Integration
the combination in one company of two or more stages of production normally operated by separate companies.
supply chain
the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
Supply Chain Management
the coordination of all supply chain activities involved in enhancing customer value
advertising campaign
the creation and execution of a series of advertisements to communicate with a particular target audience
supply chain should focus on _______.
the customer
target audience
the group of people at whom advertisements are aimed
approach
the manner in which a salesperson contacts a potential customer
Public Relations
the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
Disadvantages of personal selling
the most expensive element in the promotion mix
geographic distribution
the natural arrangement and apportionment of the various forms of animals and plants in the different regions and localities of the earth.
Frequency
the number of times an individual is exposed to a given message during a specific period
reach
the percentage of the target market that will be exposed to the media vehicle
Closing
the stage in the personal selling process when the salesperson asks the prospect to buy the product
Operations Management
the transformation process that converts resources into finished goods and services
copy
the verbal portion of advertisements
Wholesaling
transactions in which products are bought for resale, for making other products, or for general business operations
PRICE IS THE LAST THIS YOU SHOULD COMPETE ON
true
public relations audit
used to assess an organization's image among the public or to evaluate the effect of a specific public relations program
social audit
used when an organization wants to measure the extent to which stakeholders view it as being socially responsible
team selling
using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
members of the supply chain MUST create ________.
value
Interior Atmospherics
• lighting • wall decorations • color • floors • fixtures • merchandise displays • signage • layout • smell • temperature • music • video screens • mannequins • cleanliness (restrooms)