MKT 301 Final Exam

promotion mix

-advertising -public relations -direct marketing -sales promotion -personal selling

identify alternatives

-types of intermediaries -number of marketing intermediaries -responsibilities of channel members

channel objectives

-what segments to serve -best channels to use -targeted levels of customer service -minimizing the cost of meeting customer service requirements.

without communication from competitors

1) Federal legislation on price fixing requires that sellers set their prices ________.

channel design decisions

1. analyze customer needs 2. set channel objectives 3. identify channel alternatives 4. evaluation

number of intermediaries

few- exclusive, middle-selective, many-intensive

convenience stores

limited line of high turnover goods

Blocker effect

members blocking out marketing communications from competitors

classify retailers by

merchandise election

types of wholesalers

merchant wholesalers agents and brokers manufacturer's sales branches and offices

intermediaries

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

specialty stores

narrow product line with deep assortment Tiffany's

Positive Effects of Loyalty Programs

Longevity effect: the process of lengthening a customer's lifetime value over time Blocker effect: members blocking out marketing communications from competitors Spreader effect: buyers are more likely to try related products offered by a marketer Accelerator effect: consumers approach the higher level of benefits

Public relations role

Lower cost than advertising Stronger impact on public awareness than advertising

horizontal

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

spreader

One of the positive effects of loyalty programs is ________ effect that the buyers are more likely to try related products offered by a marketer.

an indirect marketing channel

Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end consumers. This is an example of ________.

vertical marketing system

Producers wholesaler Retailer Consumer

Rapid Growth of Sales Promotions

Product managers are under pressure to increase current sales Companies face more competition Competing brands offer less differentiation Consumers have become more deal-oriented

narrow product lines; deep assortments

Specialty stores carry ________ with ________ within them.

Make and Sell

Suppply Chain. This view includes the firm's raw materials, productive inputs, and factory capacity

franchise

The ________ organization is the most common type of contractual vertical marketing system.

greater the channel complexity

The greater the number of channel levels in a marketing channel, the ________.

sales promotion

The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.

VMS

Vertical Marketing Systems provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: corporate marketing system contractual marketing system administered marketing system

comparative advertising

When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________.

determining pricing policy for channel members

Which of the following is NOT a step in designing an effective marketing channel?

expanding sales and market coverage

Which of the following is an advantage of adding new channels in a multichannel distribution system?

direct marketing

Which of the following is one of the five major promotion tools?

public relations

Which of the following promotion tools involves building up a positive corporate image and handling unfavorable stories and events?

short term inventives

___ ____ ______ to encourage purchases or sales of a product or service. sales promotion

upstream

____ partners. The set of firms that supply the raw materials, components, parts, information, finances and expertise needed to create a product or service.

channel conflict

______ _______ refers to disagreements over goals, roles, and rewards by channel members.

third party logistics

or Contract Logistics/ Outsourced logistics is the outsourcing of logistics functions to third part logistics providers. Outsourcing of 3rd party logistics providers.

marketing logisitics

physical distribution involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

robinson patman act

price discrimination- illegal price maintenance- illegal deceptive pricing- illegal

pricing within channels

price fixing- illegal predatory pricing- illegal

classify retailers by

retail price discount stores- Kohls off price retailers- TJ Maxx Factory Outlets Warehouse Clubs- Sam's, Costco

retailing

retailing includes all the activities in selling products or services directly to final consumers for their personal non business use

selective distribution

shopping products

exclusive distribution

specialty products 1. better control 2. more support 3. brand image

sense-and-respond

A view of the market that specifies that planning starts by identifying the needsof target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value is a(n) ________ view.

agent

A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker.

public relations

Building good relations with the company's publics through favorable publicity, a good corporate image, and effective handling of unfavorable news

conventional distribution systems

Consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profit and there is little control over the other members and no formal means for assigning roles and resolving conflict.

sales promotion objectives

Consumer promotions Trade promotions Sales force promotions

loyalty programs

______ ___________ Marketing efforts that reward a person or organization for frequent purchases and the consumption of offerings. Data collected from loyalty programs can be useful for designing and improving the company's offerings.

downstream

______ partners. The marketing channels or distribution channels that look toward the custome.

comparative

_______ advertising directly or indirectly compares the brand with one or more other brands

informative

_______ advertising is used when introducing a new product category; the objective is to build primary demand

Persuasive advertising

________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand.

Intensive

________ distribution is a strategy in which producers of convenience products and common raw materials stock their products in as many outlets as possible.

Wholesaling

________ includes all activities involved in selling goods and services to those buying for resale or business use.

Self-service

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

Deceptive pricing

________ occurs when a seller states price savings that are not actually available to consumers.

disintermediation

________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

persuasive

_______________ advertising is important with increased competition to build selective demand

Spreader effect

buyers are more likely to try related products offered by a marketer

multi channel distribution

companies rely on multiple channels. advantage: increase market share risk: system gets more complicated, lose control, increase exposure

Horizontal Conflict

conflict among members at the same channel level

vertical conflict

conflict between different levels of the same channel.

Accelerator effect

consumers approach the higher level of benefits

intensive distribution

convenience products

brokers and agents

do not take title, perform a few functions, and specialize by product line or customer type. brokers bring buyers and sellers together and assist in negotiations. agents represent buyers or sellers.

evaluate alternatives

each alternative should be evaluated against economic criteria control adaptive criteria

manufacturers' sales branches and offices

is a form of wholesailing by sellers or buyers themselves rather than through independent wholesalers.

marketing channels

the decisions and activities that make products available to customers when and where they want to purchase them.

supermarket

the most frequently shopped type of retail store

Longevity effect

the process of lengthening a customer's lifetime value over time

horizontal system

two or more companies at one level join together to follow a new marketing opportunity

classify retailers by service level

walmart- self service belk- limited service bloomingdales- full service

wholesailing

wholesailing includes all activities involved in selling goods and services to those buying for resale or business use.

department stores

wide variety of product lines