MKT Unit 4 Study Guide

What is supply chain management? What is its goal?

-A set of approaches used to integrate the functions of operations management, logistics management, supply management and marketing channel management so products are produced and distributed in the right quantities, the right locations and at the right time -The goal is to achieve optimal levels of efficiency and service -The supply chain includes all entities that facilitate product distribution and benefit from cooperative efforts

What is retailing? Why is it important?

-All transactions in which the buyer intends to consume the product through personal, family or household use -Retailing often takes place in stores or service establishments but also occurs through direct selling, direct marketing, and vending machine sales -There is a clear expectation that consumers will increasingly buy their goods online

What is a category killer?

-Big box retailer that focuses on one or a few product categories -Generally competes on the basis of price and product availability -Makes it hard for general merchandisers to compete

What is a Channel Captain? Channel Power? Channel Conflict?

-Channel captain: The dominant leader of a marketing channel or a supply channel; May be a producer, wholesaler, or retailer -Channel power: The ability of one channel member to influence another channel member's goal achievement -Channel conflict: Self-interest creates misunderstanding about role expectations of channel members; Communication is poor between channel members

What are the main types of sales promotions?

-Consumer-oriented sales promotions: sales tools used to support a company's advertising and personal selling directed to ultimate consumers. -Trade-oriented sales promotions: sales tools used to support a company's advertising and personal selling directed to wholesalers or retailers. -Coupons: sales promotions that offer a discounted price to the consumer, which encourages trial; most widely used. -Deals: a form of short-term price reductions (BOGO) -Premiums: merchandise offered for free. -Promotional Contests: consumers apply skill or analytical or creative thinking to win a prize -Sweepstakes: require participants to only submit an entry; Purely games of chance -Sampling: offering of a product free. -Loyalty Programs: encourage and reward repeat purchases. -Point-of-Purchase displays: promotional tools located in store aisles or on store counters -Cash rebates: offer consumers money ("money back") based on proof of purchase -Product placement: the use of a brand-name product in a movie, television show, video game, or commercial for another product.

What are the main types of salespeople?

-Current customer sales: concentrate on current customers call on people and organizations that have purchased products from the firm before -New business sales: locate prospects and convert them into buyers. -Support personalle: facilitate selling but usually are not involved solely with making sales. They engage primarily in marketing industrial products, locating prospects, educating customers, building goodwill, and providing service after the sale. -Trade sales people: not strictly support personnel, because they usually take orders as well. However, they direct much effort toward helping customers promote the product. -Technical sales people: give technical assistance to the organization's current customers, advising them on product characteristics and applications, system designs, and installation procedures.

· What factors are involved in selecting a marketing channel?

-Customer characteristics: Consumer market or business market? Business customers often prefer to deal directly with producers; are more likely to buy complex products and in large quantities -Product attributes: Complex/Expensive or standardized? Durable or Fragile? -Type of organization: Large or small? Large firms are often in a better position to have more distribution centers, which reduce delivery times. Smaller firms may be in a better position to serve smaller-scale regional needs -Competition: High or low? Highly competitive markets require companies to keep costs and prices low -Marketing environmental forces: Economic considerations will force organizations to make compromises. Technology may help a firm modify/improve its channel strategy. Government regulations and trade agreements can affect channel strategy -Characteristics of intermediaries: If an intermediary is not adequately promoting an organization's products, it may reconsider channel choices

What are the foundations of the supply chain? Describe each.

-Distribution: The decisions and activities that make products available to customers when and where they want to purchase them -Supply Chain: All the activities associated with the flow and transformation of product from raw materials through to the end consumer -Operations management: The total set of managerial activities used by an organization to transform resource inputs into products, services, or both. -Logistics management: Planning, implementing and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants -Supply chain management: The processes that enable the progress of value from raw materials to final customer and back to redesign and final disposition •Purchasing, procurement, sourcing

What are the main aspects of sales force management?

-Establishing Sales Force Objectives -Determining Sales Force Size -Recruiting and Selecting Salespeople -Training Sales Personnel -Compensating Salespeople -Motivating Salespeople -Managing Sales Territories -Controlling and Evaluating Sales Force Performance

What are some strategic issues with retailing?

-Location: the least flexible of the strategic issues but is important because it dictates where the store will draw its customers -Positioning: •Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment -Store image: To attract customers, a retail store must project an image that appeals to its target market. Atmospherics are the physical elements in a store's design that appeal to consumers' emotions and encourage buying (music, color, etc)

What types of activities do intermediaries perform? What kind of utility do they help to create

-Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangement or through the purchase and reselling of products. -They create: •Time Utility - Having products available when the customer wants them •Place Utility - Making products available in locations where customers wish to purchase them •Possession Utility - Customers have access to the product to use now or store for future use •Form Utility - Formed by assembling, preparing, or otherwise refining the product to suit customer needs

What are the steps in personal selling?

-Prospecting: looking for buyers -Pre-approach: researching buyers potential needs -Approach: contact buyer, get to know them -Making the presentation: explain product, listen to buyer -Overcoming objectives -Closing the sale: ask prospect to buy product -Following up

What are the 4 media planning measures?

-Reach: to the number of different people or households exposed to an ad at least once during a given period -Frequency: the average number of times a person in the target audience is exposed to a message or advertisement -Gross ratings points: reference measurements that advertisers use to assess campaign performance / potential -Cost per thousand (CPM): the cost of reaching 1,000 individuals or households with the advertising message in a given medium

What is direct marketing? What are some of it's

-The use of the telephone, Internet and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone or the Internet -Direct marketing is one type of nonstore retailing •Catalog marketing - a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone or the Internet •Direct-response marketing - a type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders •Telemarketing - The performance of marketing-related activities by telephone •Online Retailing - Makes products available to buyers through computer connections •Automatic vending is the use of machines to dispense products •Direct selling: The marketing of products to ultimate consumers through face-to-face sales presentations at home or in the workplace

What are the different appeals used in creating advertising messages?

1.Fear appeals suggest that consumers can avoid some negative experience through a behavior change or purchase (or vote) (Automobile safety ads, political advertising, etc.) 2.Sex appeals suggest that the product's use will increase the attractiveness of the user 3.Humorous appeals imply, either directly or subtly, that the product is more fun or exciting than competitors' offerings; Can "wear out" quickly and bore the consumer.

What are the steps in developing an advertising campaign?

1.Identify and Analyze Target Audience: the group of people at whom advertisements are aimed at. Advertisers identify the target audience to develop more effective and efficient advertising. 2.Define Advertising Objectives: Objectives help advertisers select media and evaluate an ad campaign 3.Create Advertising Platform: basic issues or selling points to be included in an advertising campaign; The platform should consist of issues important to customers. 4.Determine Advertising Appropriation: the advertising budget for a specific time period; Corporate budgets tend to be set annually; Media prices vary. 5.Develop Media Plan: specifies the media vehicles to be used and the schedule for running advertisements; Determines how many people in the target audience will be exposed to the message and how the message will effect them 6.Create Advertising Message: An advertising message should focus on the key benefits of the product that are important to prospective buyers 7 & 8.Execute Campaign & Evaluate Advertising Effectiveness: Executing and evaluating the advertising campaign involves: 1.Pretesting the advertising copy. 2.Carrying out the advertising campaign. 3.Post-testing the advertising.

What is the marketing channel?

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

What is sales promotion?

A short-term inducement of value offered to arouse interest in buying a product or service. Examples include coupons, samples, rebates, and contests.

What is a wholesaler?

An individual or organization that sells products that are bought for resale, for making other products or for general business operations

What is advertising?

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor, directed at a target audience. -Institutional advertising: Promotes organizational images, ideas and political issues -Advocacy advertising: Advertising that promotes a company's position on a public issue -Product advertising: promotes the uses, features and benefits of products -Pioneer advertising: type of product advertising that stimulates demand for a product category rather than a specific brand by informing potential buyers about the product -Competitive advertising: type of product advertising used to stimulate demand for a specific brand by promoting its features, uses and advantages; sometimes through indirect or direct comparisons with competing brands -Native advertising: Digital advertising that matches the appearance and purpose of the content in which it is embedded

What is an off-price retailer?

Buy manufacturers' seconds, overruns, returns and off-season merchandise for resale to consumers at deep discounts -Offer limited lines of national-brand and designer merchandise, usually clothing, shoes or housewares -Keep prices low by offering few services and sustaining high inventory turnover -Ensure a regular flow of merchandise by establishing long-term relationships with suppliers that provide large quantities of goods at reduced prices

Why is sales promotion a short-term concept?

Customers will be more motivated to buy if there's a risk of running out of time or running out of product.

What services do wholesalers provide to producers and retailers?

Producers: •Serves as an extension of the producer's sales force and acts as a conduit of information •Provides financial assistance •Reduces the producer's expenses and inventory •A source of working capital Retailers: •Assists with the distribution component •As market specialists, helps retailers select inventory •Reduces retailer's burden of looking for and coordinating supply sources •Wholesalers have a consistent, wide-range of products

What is public relations? What is publicity?

Public relations: A form of communication management that seeks to influence the feelings, opinions, or beliefs about a company and its products and services held by stakeholders. •Used to create / maintain favorable relationships between organization and stakeholders Publicity: a news story type of communication about an organization and/or its products transmitted through a mass medium at no charge

What value do retailers provide?

Retailers add value for customers by providing services and assisting in making product selections

What is the intensity of market coverage? What are the three levels?

The number and kinds of outlets in which a product will be sold -Intensive: convenience products (coke, Pringles, batteries) that are available in most retail outlets -Selective: Shopping products (iPhones, TVs, smart watches, shoes) that are available in some outlets -Exclusive: specialty products (BMWs, Fendi handbags) that are available in very few outlets

What is dual distribution?

The use of two or more marketing channels to distribute the same products to the same target market(Coke and Monster)

What is personal selling?

a aid personal communication that attempts to informs customers and persuades them to buy products in an exchange situation

An advertisement that persuades a consumer to avoid a negative outcome or experience through a behavior change is using a(n) ___________. a. Fear appeal b. Emotional appeal c. Humorous appeal d. Benefit appeal e. Sex appeal

a. Fear appeal

Joanna's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Joanna would best be classified as a(n) a. Order getter b. Order taker c. Order generator d. Missionary salesperson e. Technical salesperson

a. Order getter

Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____. a. Wholesaler; retailer b. Wholesaler; broker c. Broker; retailer d. Broker; agent e. Agent; retailer

a. Wholesaler; retailer

Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of a. dual distribution. b. vertical integration. c. horizontal integration. d. tying agreements. e. exclusive dealing.

a. dual distribution.

Which of the following services would a wholesaler least likely provide to a manufacturer? a. Assume the risks of selling to poor credit customers b. Look for and coordinate supply sources c. Pay the costs of transporting goods d. Provide up-to-date information on market developments e. Serve as an extension of the manufacturer's sales force

b. Look for and coordinate supply sources

A marketing channel is defined as a group of individuals and organizations that a. consumes about one-half of every dollar spent on products in the United States. b. directs the flow of products from producers to customers. c. links producers to other marketing intermediaries. d. takes title to products and resells them. e. manages transportation and warehousing functions.

b. directs the flow of products from producers to customers.

To increase sales of its cereals, Kellogg offered a free pound of bananas to customers who bought the large-size box. This form of sales promotion is called a a. coupon b. premium c. free sample d. money refund e. cents-off offer

b. premium

Fragile products that require special handling are more likely to be distributed through a. longer channels. b. shorter channels. c. direct channels. d. strategic alliances. e. exclusive outlets.

b. shorter channels.

If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach. a. Arbitrary b. Objective-and-task c. Competition-matching d. Percent-of-sales e. Industry-standard

c. Competition-matching

Michael's, PetSmart, and Staples are all examples of a. discount stores. b. off-price retailers. c. category killers. d. traditional specialty retailers. e. superstores.

c. category killers.

The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ____ for the campaign. a. The target audience b. A budget c. objectives d. A media plan e. Advertising directives

c. objectives

Olivia is the manager of Human Recourses for Zappos.com. She is currently in the process of revising the firm's compensation method for its sales force. She would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements? a. Combination b. Straight salary plus generous fringe benefits c. Straight salary d. Straight commission e. Salary plus a bonus

d. Straight commission

The supply chain includes a. producers, wholesalers, and retailers. b. suppliers, producers, intermediaries, and customers. c. suppliers and suppliers' suppliers. d. all entities that facilitate product distribution. e. buyers, seller, marketing intermediaries, and agents.

d. all entities that facilitate product distribution.

The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called a. prospecting b. making the presentation c. preapproach d. approach e. prospecting

d. approach

By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except a. inventory planning. b. transportation. c. materials handling. d. unit pricing. e. communication.

d. unit pricing.

Consumers receive the benefits of place utility when a. they have to travel excessively to obtain products they want. b. retailers remain open 24 hours a day. c. they can stock up on products they need but not use them right away. d. they make purchases with credit and debit cards. e. products are available in locations where consumers want to buy them.

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

If during an advertising campaign a certain portion of advertising runs continuously, and then during specific periods additional advertising is used to intensify the level of communication, a(n) ____ media schedule is being used. a. beating b. alternating c. flighting d. continuous with emphasis e. pulsing

e. pulsing