USC Buad 307 Marketing Final

Identify the advantages that brands provide firms and consumers.

1. Brands facilitate purchases. 2. Brands establish loyalty. 3. Brands protect from competition and price competition. 4. Brands are assets. 5. Brands affect market value.

Rebates:

A consumer discount in which a portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.

Brand licensing:

A contractual arrangement between films, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee.

Family Brand:

A firm's own corporate name used to brand its product lines and products.

Predatory pricing:

A firm's practice of setting a very low price for one or more of its products with the intent to drive its competition out of business; illegal under both the Sherman Antitrust Act and the Federal Trade Commission Act.

Monopsony:

A market similar to a monopoly except that a large buyer not seller controls a large proportion of the market and drives the prices down. Sometimes referred to as the buyer's monopoly. There is only one buyer.

Top-of-mind awareness:

A prominent place in people's memories that triggers a response without them having to put any thought into it.

Department stores:

A retailer that carries many different types of merchandise (broad variety) and lots of items within each type (deep assortment); offers some customer services; and is organized into separate departments to display its merchandise.

Order getter:

A salesperson whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale.

Order taker:

A salesperson whose primary responsibility is to process routine orders or rebuys for products.

Order Taker:

A salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products.

Category killers:

A specialist that offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing.

Specialty stores:

A type of retailer that concentrates on a limited number of complementary merchandises categories in a relatively small store.

Off-price retailers:

A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices.

Intermediary:

An entity that acts as the middleman between two parties in a financial transaction.

Noise:

Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels.

Captive pricing:

At least 2 pieces to product: fixed affordable piece and expensive replaceable piece. (Printer & cartridge)

Product portfolio width and depth:

Breadth- represents a count of the number of product lines offered by a firm. Depth- this equals the number of products within a product line. Too much breadth in the product mix becomes costly to maintain and too many brands may weaken the firm's reputation.

Trail:

Gets people to try out new products; the ability to try something before purchasing.

Bundling:

Independent products get bundled at a price less than those independent products being paid for separately.

Brand awareness:

Measure how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

Reach:

Measure of consumer's exposure to marketing communication; the percentage of the target population exposed to a specific marketing communication, at least one.

Frequency:

Measure of how often the audience is exposed to a communication within a specific period of time.

Gross rating point (GRP):

Measure used for various media advertising—print, radio, or television; GRP=reach X frequency.

Brand dilution:

Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

Horizontal price fixing:

Occurs when competitors that produce and sell competing products collude, or work together, to control prices, effectively taking price out of the decision process for consumers.

Aided recall:

Occurs when consumers recognize a name that has been presented to them.

Vertical price fixing:

Occurs when parties at different levels of the same marketing channels (manufactures or retailers) collude to control the prices passed on to consumers.

Store brands (private label brands):

Private Label Brand: AKA "Store Brands". Products developed by retailers. Applies to 1 in 5 items sold in U.S. stores. Margins are 10% higher (due to minimal marketing costs and contract purchases).

Product line width and depth:

Product Line Depth: Number of different products carried within a product category. (Ex. Toothpaste: Crest, Gleem) Width: Number of different product categories carried (Ex. Hair Care, Cosmetics, Toothpastes)

Specialty products:

Products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.

Multiple channels:

Selling in more than one channel (store, Internet, catalog).

Equal line:

Size 4 jean and size 16 jean same price; all products are priced at the same price.

Sales Promotions:

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

Zone of tolerance:

The areas between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customers really wants and what he or she will accept before going elsewhere.

Posttest:

The evaluation of an IMC campaign's impact after it has been implemented.

Co-branding:

The practice of marketing two or more brands together, on the same package or promotion.

Price discrimination:

The practice of selling the same product to different resellers (wholesalers, distributors, or retailers) or to the ultimate consumer at different prices; some, but not all, forms of price discrimination are illegal.

Media plan:

The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience.

Broker:

The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.

Shopping products:

Those for which consumers will spend time comparing alternatives, such as apparel, fragrances, and appliances.

Convince products:

Those for which the consumer is not willing to spend any effort to evaluate prior to purchase.

Convenience stores:

Type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout.

Rack jobber:

Wholesalers that furnish racks or shelves full of merchandise to retailers, display products.

Unbundling:

You get base item and pick from menu to customize (ex. cars).

Lagged effect:

a delayed response to a marketing communication campaign.

Premiums:

a gift/goodie or something your are given when you buy something.

Factory outlets:

a store in which goods, especially surplus stock, are sold directly by the manufacturers at a discount.

Patronage rewards:

an incentive\e or reward for regular customers (encourages you to come back).

Premium:

an item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing.

Pre-test:

assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do.

Value-added:

including feats to increase value while keeping price the same

Return on investment:

is a measure of profitability that indicated whether or not a company is using its resources in an efficient manner.

Cold Calling:

is a method of prospecting in which a salespeople telephone or go to see potential customers without appointments.

Wholesaler:

is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers.

Click-through-rate:

it measures how successful an ad has been in capturing users' interests. The higher the click rate the more successful the ad has been in generating interest.

Search advertising:

method of using ads that will show up when an internet user types in specific key words or phrases in search of a product or service.

Discount stores:

retailers that offer low prices, limited service, and a board variety of merchandise.

Puffery:

the legal exaggeration of praise, stopping just short of deception, lavished on a product.

Point-of-sale:

the place where sales are made. Macro- mall, market, or city. Micro- the area surrounding the counter where customers pay.

House brands (private label brand):

used by a retailer for a product or line of products that are typically sold for prices lower than that of comparable items with manufacturer brand names.

Reverse channels:

used products go back to remanufactures.

Define the steps in the personal selling process.

• 1. Generate and qualify leads- generate a list of leads and asses their potential. • 2. Preapproch and the use of CRM systems- occurs prior to meeting the customer for the first time and extends the qualification of leads procedure described. So, the salesperson gathers info about the customer and prepares for presentation. • 3. Sales presentation and overcoming reservations- the salesperson is ready for a person to person meeting (between the salesperson and the customer). • 4. Closing the sale- means obtaining a commitment from the customer to make a purchase. • 5. Follow up- salesperson and support staff solidify the long term relationship by making sure the customer is satisfied with the purchase and addressing any complaints.

Describe the various stages involved in developing a new product or service.

• 1. Idea generation- to generate ideas for new products or service using several alternative techniques, such as internal research and development, R&D consortia, licensing, tracking competitors. o Internal research and development- many firms have their own R and D departments, in which scientists work to solve complex problems and develop new ideas. o R and D consortia- they explore new ideas or obtain solutions for developing new products. o Licensing- firms buy the rights to use the technology or ideas from other research-intensive firms through a licensing R and D. o Brainstorming- groups work together to generate ideas. o Outsourcing- people with special skills come together to foster creativity and innovation. o Competitor's products- reverse engineering- involves taking apart a product, analyzing it, and creating an improved product that does not infringe on the competitors patents, if they exist. o Customer input- listening to customers is essential for successful marketing ideas. • 2. Concept testing- firms test their concepts by either describing the idea of the new product or service to potential customers or showing them images of what the product would look like. • 3. Product development- entails a process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features or a service's features. • 4. Market testing- o Premarket tests- before they actually bring a product or service to the market to determine how many customers will try and then continue to use the product or service according to a small group of potential consumers. o Test marketing- introduces the offering to a limited geographical area prior to a national test. • 5. Product launch- promotion, place, price, and timing. • 6. Evaluation of results- firms evaluate the new product or service to determine its success.

Describe the steps in designing and executing an advertising campaign.

• 1. Identify target audience. • 2. Set advertising objectives. o Advertising plan. o Pull/push strategies. • 3. Determine the advertising budget. • 4. Convey the message. • 5. Evaluate and select media. • 6. Create assignments. • 7. Assess impact.

Identify three objectives of advertising.

• 1. Informative advertising- communication used to create and build brand awareness. • 2. Persuasive advertising: communication used to motivate consumers to take action. • 3. Reminder advertising: communication used to remind or prompt repurchases.

Discuss four gaps in the Service Gap Model.

• 1. Knowledge gap- reflects the difference between customers' expectations and the firm's perception of those customer exceptions. Firms need to match customer expectations with actual service through research. • 2. Standards gap- pertains to the difference between the firm's perceptions of customer's expectations and the service standards it sets. Appropriate service standards and measurements of service performance help close this gap. • 3. Delivery gap- is the difference between the firm's service standards and the actual service it provides to customers. Closing this gap requires adequate training and empowerment of employees. • 4. Communication gap: refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises. Firms close the communications gap by managing customer expectations and promising only what they can deliver.

Recognize and understand 3 components of a social media strategy - - listen, analyze, do.

• 1. Listen- listen to customer using techniques like sentiment analysis. • 2. Analyze- analyze data collected using metrics like bounce rates, click paths, and conversion rates. • Do- use this info to develop tactics to engage customers.

Identify three service recovery strategies.

• 1. Listening to the customers and involving them in the service recovery- • 2. Finding a fair solution- fair means based on their previous experience with firms. o Distributive fairness- pertains to customer's perception of the benefits he or she received compared with the cost. o Procedural fairness- refers to the perceived fairness of the process used to resolve them. • 3. Resolving problems quickly- the longer it takes to resolve a service failure, the more irritated the customer will become and the more people he or she is likely to tell about the problem.

Indicate the four types of price competitive levels.

• 1. Monopolistic competition- when there are many firms competing for customers in a given market but their products are differentiated. • 2. Oligopolistic competitive: few firms dominate and tend to set prices according to a competitor-oriented strategy. • 3. Pure competition- occurs when different companies sell commodity products that consumers perceive as substitutable; price usually is set according to the laws of supply and demand. • 4. Price war- occurs when two or more firms compete primarily by lowering their prices.

Identify 4 elements of a successful CSM program.

• 1. Offering. • 2. Funding mechanism. • 3. Support system. • 4. Employee management.

List the four pricing orientations.

• 1. Profit orientation- specifically by focusing on target profit pricing, maximizing profits, or target return pricing. • 2. Sales orientation- to set prices believe that increasing sales will help the firm more than will increasing the profits. • 3. Competitor orientation- they strategize according to the premise that they should measure themselves primarily against their competition. • 4. Customer orientation- is when a firm sets its pricing strategy based on how it can add value to its products or services.

Describe the legal and ethical issues in personal selling.

• 1. The sales manager and the sales force- a sales manager must treat people fairly and equally in everything he or she does. • 2. The sales force and corporate policy- sometimes salespeople face a conflict between what they believe represents ethical selling and what their company asks them to do to make a sale. • 3. The salesperson and the customer- salespeople have a duty to be ethically and legally correct in all their dealings with their customers.

Calculate ROI for a marketing communication campaign.

• = (Gross prft. - IMC Invest.) / IMC Invest. • = (CLV - IMC Invest.) / IMC Invest.

Explain the 4 steps in the AIDA model.

• AIDA Model- suggests that awareness leads to interest, which leads to desire, which leads to action. • 1. Awareness- refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service. • 2. Interest- consumer starts to "feel" and become intrigued to explore the product or brand. • 3. Desire- makes the consumer want the product. • 4. Action- a purchase, a commitment, a recommendation, or whatever else the company is trying to get consumers to do.

Describe how marketing channels are managed.

• Administered marketing channel: when a dominant and powerful marketing channel member has control over the other members. • Contractual marketing channel (e.g., franchising): coordination and control are dictated by contractual relationships between members. • Corporate marketing channels: operate relatively smoothly because one firm owns the various levels of the chains. Marketing channels also can be effectively managed through strong relationships developed with marketing channel partners. To create such relationships, the partners must trust each other, communicate openly, have compatible goals, realize there is benefit in being interdependent, and be willing to invest in each other's success.

Additional terms:

• Administered- when a dominant and powerful marketing channel member has control over the other members. • Contractual- coordination and control are dictated by contractual relationships between members. • Corporate-owned- operate relatively smoothly because one firm owns the various levels of the chains.

Describe the various integrative communication channels.

• Advertising- a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future. Advertising has long been the primary channel for marketing communication and is still a constant presence, but other media channels have become more and more prominent. • Public relations- the organizational function that manages the firms communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media. • Sales promotions- special incentives or excitement—building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays. • Personal selling- the two way flow of communication between a buyer and a seller that is designed to influence the buyers purchase decision. • Direct marketing media: particularly online options have increased in recent years. Out bound direct marketing telephone calls have declined, but Internet-based technologies like e-mail and m-commerce have increased. • Mobile marketing/online marketing- marketing through wireless handheld devices—websites, blogs, and social media.

Explain the various components of brand equity.

• Brand equity- or the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. • 1. Brand awareness- measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. • 2. Perceived value- of a brand is the relationship between a product's or service's benefits and cost. • 3. Brand associations- reflect the mental and emotional links that consumers make between a brand and its key product that consumers make between a brand and its key products attributes, such as a logo and its color, slogan, or famous personality. • 4. Brand loyalty- occurs when a consumer buys the same brand's product or service repeatedly over time rather than buy from multiple suppliers within the same categories.

Distinguish between a brand extension and a line extension.

• Brand extension- refers to the use of the same brand name in a different product line. It uses the same brand name for a new product that gets introduced into new or the same markets. • Line extension- it is an increase of an existing product line by the brand. It is the use of the same brand name within the same product line and represents an increase in a products line's depth.

Determine the various types of branding strategies used by firms.

• Brand ownership- brands can be owned by any firm in the supply chain, whether manufacturers, wholesaler, or retailers. o Manufacturer brands-are owned and managed by the manufactures. o Retailer/store brands- are products developed by retailers. • Naming brands and products lines- o Family brands- the individual brands benefit from the overall brand awareness associated with the family name. o Individual brands- use names for each of its products. • Brand lines and extensions- refers to the use of the same brand name in a different product line and line is the use of the same brand name within the same product line and represents an increase in a product line's depth. • Co- branding- is the practice of marketing two or more brands together on the same package, promotion, or store. • Brand licensing- is a contractual arrangement between firms whereby one firm allows another to use its brand name, logo, symbols, and or characters for a negotiated fee. • Brand repositioning- refers to a strategy on which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences. • First: decide whether to offer manufacturer and/or private-label brands. Second: have a choice of using an overall corporate brand or a collection of product line or individual brands. Third: they can extend their current brands to new products. Fourth: co brand with another brand to create sales and profit synergies for both. Fifth: license their brands to other firms. Finally: often necessary to reposition a brand.

Describe how to calculate a product's break-even point.

• Break even point = units sold generate just enough profit to cover the total costs of producing those units, it requires knowledge of the fixed cost, total cost, and total revenue curves. When these curves intersect, the marketer has found the break even point.

Identify the benefits of stores.

• Browsing, touching and feeling products, personal service, cash and credit payment, entertainment and social experience, and immediate gratification.

What is direct marketing and what advantages can it provide consumers and selling companies?

• Buyer Benefits: Convenient, Easy to use, Private • Seller Benefits: Low cost and efficient, Effective for building customer relationships • It is a variety of media used for contacting prospective customers. For example: o Catalogs o Telephone o Direct mail o E-mail 4. Benefits of direct marketing.

Identify the reasons firms create new products.

• Changing customers needs- Firms need to innovate to respond to changing customer needs. • Market saturation- Prevent declines in sales from market saturation. • Managing Risk through diversity- Delete an entire product line in order to address changing market condition and meet internal strategic priorities. • Fashion cycles- Diversify their risk, and respond to short product life cycles, especially in industries like fashion, apparel, arts, books, and software markets, where most sales come from new products. • Improving business relationships- Innovations can help firms improve their business relationships with suppliers.

Identify the types of consumer products.

• Consumer products- are products and services used by people for their personal use. • 1. Specialty products and services- are those for which consumers express such a strong preference that they expend considerable effort to search for the best suppliers. • 2. Shopping products and services- are products or services for which consumers will spend a fair amount of time comparing alternatives, such as furniture, apparel, fragrances, appliances, and travel alternatives. • 3. Convenience products and services- are those products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase. • 4. Unsought products and services- are products consumers either do normally think of buying or do not know about at all.

Describe the value added by personal selling.

• Customers can buy many products and services with- out the help of a salesperson, but in many other cases, it is worth the extra cost built into the price of a product to be educated about the product or get valuable advice. Salespeople can also simplify the buying process and therefore save the customer time and hassle. (Provide information and advice and save time and simply buying).

List the pricing practices that have the potential to deceive customers.

• Deceptive reference points- a reference point is what the buyer compares selling points and this happens when they make/change this point. • Loss leader pricing- takes this tactic one step further by lowering the price below the stores cost. • Bait and switch- tactic is a deceptive practice because the store lures customers in with a very low price on an item and only to aggressively pressure these customers into purchasing a higher priced model by disparaging the low-priced item, comparing it unfavorably with the higher-priced model.

Identify the benefits of multichannel retailing.

• Deeper and broader selection. • Personalization: personalized customer service and personalized offering. • Expand market presence. • If a retailer adopts a multichannel strategy, it can exploit the benefits and mitigate the limitations of each channel and help expand its overall market presence. Furthermore, a multichannel strategy offers the chance to gain a greater share of customers' wallets and more insight into their buying behaviors. (Availability, convenience, and safety)

Describe the different groups of adopters articulated by the diffusion of innovation theory.

• Diffusion of innovation theory- the process by which a use of an innovation—whether a product, service, or process—spreads throughout a market group, over time and across various categories of adopters. • Innovators- are those buyer who want to be the first on the block to have the new product or service. These buyers enjoy taking risks and are highly knowledgeable. • Early adopters- they do not like to take as much risk, but they instead wait and purchase the product after careful review. • Early majority- which represents approximately 34 percent of the population is crucial because few new products and services can be profitable until this large group buys them. • Late majority- is the last group of buyers to enter a new product market. The product has achieved its full market potential. • Laggards- make up roughly 16 percent of the market. These customers avoid change and rely on traditional products until they are no longer available.

Compare and contrast 2 ways for measuring marketing communication effectiveness (direct test vs. indirect test, explicit vs. implicit).

• Direct Test- asking customers to take an action you can track • Indirect- measuring shift before and after a test. (BEF/AFT) • Explicit- direct recall, not very effective, but does show good/bad memories. • Implicit- how you perceive a brand and how the attitudes toward the brand have caused a shift in attitude. (BEF/AFT)

Understand the difference between direct and indirect channels.

• Direct marketing channel: customer can purchase goods from the manufacturer without needing to go through a retailer or intermediary, generally online (e.g., Ascend speakers) or at company stores (e.g., Apple). • Indirect: manufacturers choose to offer their goods to consumers through an intermediary, such as a retailer (e.g., Walmart).

List the three levels of distribution intensity.

• Distribution intensity- the number of channel members to use at each level of the marketing channel. • 1. Intensive distribution- strategy is designed to place products in as many outlets as possible. • 2. Exclusive distribution- policy by granting exclusive geographic territories to one or very few retail customers so no other retailers in the territory can sell a particular brand. • 3. Selective distributive- which relies on a few selected retail customers in a territory to sell products.

Identify new trends in retailing.

• Emerging retail trends- Shift from indoor malls to "lifestyle centers"...open air walkways, smaller stores without an anchor store. • Increased sophistication in tracking customer purchases, and making follow-up offers. • Fast fashion. • Many retailers offering services with their products...some complementary, some not. • Online retailers continue to seek a holy grail for "fit." • Mobile apps. • New interactive technologies. • Wayfinding technology. • Hand-held scanners. • LCD smart signs • "Retailtainment" or "Entertaining" - showing customers a good time

Describe the difference between everyday low prices and a high-low strategy.

• Everyday low prices- maintained when a product's price stays relatively constant at a level that is slightly lower than the regular price from competitors using a high/low strategy, and is less frequently discounted. Customers enjoy an everyday low pricing strategy because they know that the price will always be the about the same and a better price than the competition. • High-low strategy- starts out with a product at one (higher) price, and then discounts the product. This strategy first attracts a less price sensitive customer that pays the regular price, and then a very price sensitive customer that pays the low price.

Identify the various types of media.

• Firms can use mass media channels like newspapers or television to reach large numbers of anonymous audience members. • Niche media (cable tv/specialty magazines)- used to reach narrower segments with unique demographic characteristics or interests. When choosing media, firms must match their objectives to that channel. Also, certain media are better at reaching a particular target audience than others • Mass media- channels include national newspapers, magazines, radio, and television; they are ideal for reaching large numbers of anonymous audience members.

Describe the various types of retailers.

• Food retailers- supermarkets, supercenters, and convenience stores. • General merchandise retailers- department stores, full-line discount stores, specialty stores, drugstores, category specialists, extreme value retailers, off-price retailers. • Services retailers- or firms that primarily sell services rather than merchandise, are a large and growing part of the retail industry.

Describe the different types of basic pricing objectives a for-profit or non-profit organization might have, and how each might be used.

• For profit- o Competitive Obj.- no real significant difference in price. o Relationship incentives- giving value customers something special. o Prestige/Image Pricing- setting prices purposely on the high side to show quality. • Non-profit- o Cost recovery- just need to break even, no profit. o Market suppression- Pricing to discourage certain behavior. o Market Incentives- pricing to encourage behavior.

Describe how new product development and stock prices are linked.

• If a new product is coming out and investors think that it isn't going to do well then the stock prices will fall before it comes out. • Ex/ Nokia is constantly going down, because Apple (competitors) are making better products so investors are going there instead of supporting their products.

Benefits of direct marketing.

• Individual offers are aligned to customers, low cost, not interactive or powerful.

Describe the different ways that advertisers appeal to consumers.

• Informational appeals: influence purchase decisions with factual information and strong arguments built around relevant key benefits that encourage consumers to evaluate the brand favorably. • Emotional appeals: indicate how the product satisfies emotional desires rather than utilitarian needs.

Explain price elasticity.

• It measures how changes in a price affect the quantity of the product demanded. Elasticity measures the extent of price effect on demand. Based on the percentage change in quantity / the percentage change in price. De-pending on the resulting value, a market offering can be identified as elastic, market is very price sensitive, or inelastic, market cares little about the price. The demand curve provides the information we need to calculate the price elasticity of demand.

Distinguish between manufacturer's brands and private label brands.

• Manufacturer's brand- (national brands) are owned and managed by the manufacturer-- owned and created by the maker of a product. • Private label brands- (retailer/store brand) are products developed by the retailer—owned by specific companies and purchased at those companies.

Outline the considerations associated with choosing retail partners.

• Manufacturers often start by noting the basic channel structure, which includes the level of vertical integration, the relative strength of the retailer and the manufacturer, and the strength of the brand. They also consider where their target customers expect to find products, which depends largely on the retailer's image. Channel member characteristics also are important inputs, as is the level of distribution intensity.

Understand the importance of marketing channels and supply chain management.

• Marketing channels: allow companies to get products in the appropriate outlets in sufficient quantities to meet consumer demand. To anticipate this demand, advertising and promotions must be coordinated with the departments that control inventory and transportation. Otherwise, customers would come in seeking a promotion and not find the product. • Without a marketing channel, consumers would be forced to find raw materials, manufacture products, and somehow get them to where they could be used, all on their own. Each marketing channel member adds value to the product by performing one or more of these functions. Marketing channel management also creates value for each firm in the chain and helps bind together many company functions, including manufacturing, inventory management, transportation, advertising, and marketing

Explain the methods used to allocate the IMC budget.

• Objective and task method- determines the budget required to undertake specific takes to accomplish communication objectives. • Rule of thumb methods- Various rule-of-thumb methods rely on prior sales and communication activities to determine the best allocation. o Competitive parity method: sets the budget so the share of communication expenses equals the firm's market share. o Percentage-of-sales method: uses a fixed percentage of sales as the amount of the budget. o Available budget method- marketers forecast their sales and expenses, excluding communication, during the budgeted period.

Indicate the advantages of a product's packaging and labeling strategy.

• Packaging and labels help sell the product and facilitate use. • Primary package: holds product/label provides product information. • Secondary package: provides additional consumer information on its label/facilitates transportation and storage for both retailers and their customers. • Labels: supply important safety, nutritional, and product usage information.

Given certain market characteristics, determine when selling is superior to advertising.

• Personal Selling: Lower # buyers, expensive products, high price margin, short channel. Advertising: High # buyers, inexpensive products, low price margin, long channel.

Understand the types of mobile applications.

• Price check apps- can compare prices of different things while on the go. • Fashion apps- consumers are likely to buy from technology and fashion-oriented firms. • Location-based gamified apps- GPS function of their phone to share what they are doing and where they are.

Calculate implications of price changes.

• Price increase- o Price Increase % / (Original margin % + Price increase %) = Break even sales decrease • Price decrease/ reduction- • Price Reduction % / (Original margin % - Price increase %) = Needed sales increase

Explain the difference between a price skimming and a market penetration pricing strategy.

• Price skimming- product or service must be perceived as breaking new ground or customers will not pay more than what they pay for other products. Used to signal high quality, limit demand, recoup their investment quickly, and/or test people's price sensitivity. Easier to price high initially and then lower the price than vice versa. • Market penetration- helps firms build sales and market share quickly, which may discourage other firms from entering the market. Building demand quickly also typically results in lowered costs as the firm gains experience making the product or delivering the service.

Explain the product life cycle.

• Product life cycle- defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace. • 1. Introduction stage- companies attempt to gain a strong foot hold in the market quickly by appealing to innovators. • 2. Growth stage- marked by a growing number of product adopters, rapid growth in industry sales, and increase in both the number of competitors and the number of available products versions. • 3. Maturity stage- is characterized by the adoption of the product by the late majority and intense competition for market share among firms. • 4. Decline stage- they either position themselves for a niche segment of diehard consumers or those with special needs or they completely exit the market. . Knowing where a product or service is in its life cycle helps managers determine its specific strategy at any given point in time.

Describe the components of a product.

• Product- is anything that is of value to a consumer and can be offered through a voluntary marketing exchange. • At the center is core customer value- the basic problem solving benefits that customers are seeking. • Convert the core value into actual product- features, design, and quality level. • Associated service (augmented product)- include the nonphysical aspects of the product, such as product warranties, financing, product support, and after-sale service.

Describe the components of a retail strategy.

• Product. • Price. • Promotion. • Place.

What are pros and cons of using a line extensions or brand extensions?

• Pros- o The brand name is already well established and the firm can spend less in developing consumer brand awareness and brand association for the new product. o If the original brand or the brand extension has strong consumer acceptance that extension will carry over to the new product. o They can work with the past products to sell the new ones. • Con- o Brand dilution- occurs when the brand extension adversely affects consumer perceptions about the attributes of the brand.

Describe characteristics of each integrated marketing communication (IMC) mix element.

• Public Relations- positive marketing for free. • Consumer Sales Promotions- short term attention getters. • Sponsorship- provides support to another entity while they have attraction. • Direct Marketing- listed info in database; Ads, Personal Selling, Digital Media.

Identify the elements of a public relations toolkit.

• Publications. • Video and audio programs. o Public service announcements and programs. • Media relations. • Annual reports, media kits (e.g., press kits). • News releases. • Electronic media (e.g., websites).

Distinguish between push and pull promotion strategies.

• Push- offers or suppliers push goods/info towards customers; • Pull- goods/info are pulled from customers as they demand.

Distinguish between a rational appeal and emotional appeal.

• Rational appeal- To use this method effectively, the advertisement must underscore consumer benefits rather than product features. o Dependability. o Durability. o Ease of use. • Emotional appeal- o Fear. o Security. o Sex attraction. o Status.

Identify agencies that regulate advertising.

• Regulated by federal and state agencies. • The most important federal agencies are the FTC: protects consumers against general deceptive advertising. • FCC: jurisdiction over radio, television, wire, satellite, and cable and covers issues regarding the use of tobacco products and objectionable language. • FDA: regulates food, dietary supplements, drugs, cosmetics, and medical devices.

Understand criteria for predicting new product success.

• Relative advantage- how it is better than other products. • Compatibility- how it fits into our lives. • Complexity- conformability understanding the product. • Observability- if the success is seen easy, or if the product can be tried. • Trialability- trying the product before you can buy it.

Detail the challenges of multichannel retailing.

• Retailers must organize their operations carefully to ensure an integrated customer experience. They have to have an integrated CRM system, and determine how to maintain a consistent brand image across the various channels, whether to charge the same or different prices, and how best to deliver merchandise to multiple channels • Integrated CRM, brand image, pricing, and supply chain.

Describe the key functions involved in managing a sales force.

• Sales management- involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force. • Sales force structure: o Company sales force or manufacturer's representative. o A company sales force comprises people who are employees of the selling company. Independent agents are sales peoples who sell a manufacturer's product on an extended contract basis are not employees of the manufacturers. • Recruiting and selecting salespeople- o Sales manager: determine whether to use a company sales force or manufacturer 's representatives. Must determine what the primary selling responsibilities will be—order getter, order taker, or sales support. Recruits and selects salespeople, but because there are all sorts of sales jobs, he or she must determine what it takes to be successful and then go after people with those attributes. • Sales training- o Firms choose between on-the-job and online training. • Motivating and compensating salespeople- o Sales managers: also responsible for motivating and compensating salespeople. Most salespeople appreciate a balance of financial and nonfinancial rewards for doing a good job. Sales Mangers: responsible for evaluating their salespeople. Sales people: should be evaluated on a combination of objective measures, such as sales per hour, and subjective measures, such as how friendly they appear to customers.

Identify the various types of sales promotions.

• Sales promotions: special incentives or excitement-building programs that encourage purchase and include coupons, deals, premiums, contests, sweepstakes, samples, POP displays, rebates, and product placement. They push sales through the channel, as is the case with contests directed toward retail sales people, or pull sales through the channel, as coupons and rebates do.

Explain how the marketing of services differs from the marketing of products.Explain the product life cycle.

• Services are intangible, inseparable, variable, and perishable. Cannot be seen or touched, which makes it difficult to describe their benefits or promote them. Service providers enhance service delivery with tangible attributes, like a nice atmosphere or price benefits. Services get produced and consumed at the same time, so marketers must work quickly, and they are more variable than products, though service providers attempt to reduce this variability as much as possible. Consumers can't stockpile perishable services, marketers often provide incentives to stagger demand.

Identify marketing metrics used to measure IMC success.

• Setting and allocating a IMC budget. • Traditional media- o Frequency. o Reach. o Gross rating points. • Non-traditional. o Web based. • Marketers rely on a mix of traditional and non- traditional measures to determine IMC success. Potential customers need to be exposed to IMC messages before they will buy, firms estimate the degree to which customers are exposed to a message by multiplying frequency (the number of times an audience is exposed to a message) by reach (the percentage of the target population exposed to a specific marketing communication). Measuring Internet IMC effectiveness requires different measures: click-through tracking that measures how many times users click on banner advertising.

Understand basic types of social media.

• Social network sites- they are a great way to create excitement, people can interact with friends or business acquaintances. (Ex/ Facebook, LinkedIn, and Google+). • Media-Sharing Sites- Connect people more easily and in more ways than have ever before been possible. (Ex/ Instagram, YouTube, Flickr and other photo sites). • Thought-sharing sites- there are different types such as: corporate, professional, personal, and micro. (Ex/ blogs and micro blogs).

Understand why price is set at MR = MC based on economic theory.

• This is where total profit reaches its maximum point (profit maximization)

Describe three strategic reasons supporting why a company might price a product below cost.

• To cover variable costs. • To gain an important order. • To increase market shares.

Distinguish among traditional, benefit, and relationship selling based on level of customer relationship.

• Traditional: Understand your product, consumers are prospects, sales approach is persuasion. • Benefit: understand customer's problems, consumers are targets, sales approach is problem solving. • Relationship: understand customer's business/lifestyle, consumers are assets of the business, sales approach is partnering.

Differentiate between opt-in and opt-out direct marketing approaches.

• When a page asks you for permission to send you stuff and you say yes, then you are opting-in. • Someone gets your name from somewhere else and they call you and you say no, then you are opting out. • An opt-in policy requires a potential customer to self-select the services they wish to subscribe to, permission-based marketing. • An opt-out policy is where an existing customer receives electronic communications—usually on the basis of a prior relationship—without providing express permission.

Explain the relationship between price and quantity sold.

• When prices go up, quantity sold goes down. Sometimes, however particularly with prestige products and services—demand actually increases with price.