EXAM 4 Marketing 100S

Store demonstrations

Manufacturers can also arrange with retailers to perform an in-store demonstration.

Media Types

Newspaper, Magazines , radio, television, internet , outdoor media

convenience store

a miniature supermarket, carrying only a limited line of high-turnover convenience goods

Price

how much its going to cost; "value-based pricing", can focus more on the value of the product to the customer more than the cost of the product to the supplier.

Personeel

Customer service and personal selling

Product

Width and Depth of product assortment

Third Party Logistics (3PL)

a firm that provides functional logistics services to others Example 3PL products and services are managed warehouse space, transportation solutions, information sharing, manufacturing postponement and enhanced technological innovations.

Advertising objective

a specific communication task that a campaign should accomplish for a specified target audience during a specified period.

Presentation

layout and atmosphere

strategic channel alliance

(alternative channel arrangement) a cooperative agreement between business firms to use the other's already established distribution channel, used most often when the creation of marketing channel relationships may be to expensive and time consuming.

Drop and Shop

(alternative channel arrangement) a system used by several retailers that allow customers to bring used products for return or donation at the entrance of the store

reverse channels

(alternative channel arrangement) channels that enable customers to return products or components for reuse or remanufacturing

Nontraditional Channels

(alternative channel arrangement) non-physical channels that facilitate the unique market access of products and services, like mail-order television or video channels, or infomercials.

gray marketing channels

(alternative channel arrangement) secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit product toward customers

dual or multiple distribution

(alternative channel arrangement) the use of two or more channels to distribute the same product to target markets

Pull strategy example

-manufacturer promotes to consumer -Consumer demands product from retailer -Retailer demands product from wholesaler -Wholesaler demands product from manufacturer

push strategy example

-manufacturer promotes to wholesaler -Wholesaler promotes to retailer -Retailer promotes to consumer -consumer buys from retailer

Promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response Advertising, publicity, and public relations

Tools for Consumer Sales promotion

Coupons and Rebates, premiums, loyalty marketing programs, contests and sweepstakes, sampling, and point-of-purchase

Types of consumers and sales promotion goals

Loyal customers- people who buy your product most or all the time -Competitor's customers- people who buy a competitor's product most or all the time -Brand switchers- people who buy a variety of products in the category -Price buyers- people who consistently buy the least expensive brand

Desire

Potential customers for the Apple iPad may like the concept of a portable tablet computer, but the may not necessarily think that it is better than a laptop or smartphone. Apple creates brand preference and convinces potential customers that they want the new iPad

Action

Some potential target market customers may have been persuaded to buy and iPad but yet to make the actual purchase. ex. Having been attracted to the new iPad and convinced that they need it, customers purchase the iPad

Tools for Trade Sales Promotion

Trade allowances, push money, training , free merchandise, store demonstrations, business meetings conventions, and trade shows.

Business meetings, conventions, and trade shows

Trade association meetings, conferences and conventions are an important aspect of sales promotion and a growing, multi-billion-dollar market

noise

`anything the interferes with, distorts, or slows down the transmission of information ex.other advertisement, news articles, other store displays

rebates

a cash refund given for the purchase of a product during a specific period

coupon

a certificate that entitles consumers to an immediate price reduction when the product is purchased

retailing mix

a combination of the six Ps—product, place, promotion, price, presentation, and personnel—to sell goods and services to the ultimate consumer (Target Market)

Unique Selling proposition

a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign

full-line discount stores

a discount store that carries a vast depth and breadth of product within a single product category

Institutional advertising

a form of advertising designed to enhance a company's image rather than promote a particular product

competitive advertising

a form of advertising designed to influence demand for a specific brand

pioneering advertising

a form of advertising designed to stimulate primary demand for a new product or product category.

Advocacy advertising

a form of advertising in which an organization expresses it views on controversial issues or responds to media attacks

Product advertising

a form of advertising that attempts to sell the benefits of a specific good or service

comparative advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

order fulfillment process

a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time

Category Killer

a large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category

Supercenter

a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise

Supermarket

a large, departmentalized, self-service retailer that specializes in food and some nonfood items

Warehouse Club

a large, no-frills retailer that sells bulk quantities of merchandise to customers at volume discount prices in exchange for a periodic membership fee Ex: Costco, Sam's Club, BJ's Wholesale Club

Supply Chain Management

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value. Its eight critical business processes continued.

Pull strategy

a marketing strategy that stimulates consumer demand to obtain product distribution

Push strategy

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or retailers to carry and sell particular merchandise.

flighted media schedule

a media scheduling strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times

continuous media schedule

a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for product in the later stages of the product life cycle

Seasonal media schedule

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

pulsing media schedule

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales period

Channel

a medium of communication—such as a voice, radio, or newspaper—for transmitting a message ex. media, salesperson, retail store

AIDA concept

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action

Advertising Response Function

a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns

Trade allowance

a price reduction offered by manufacturers to intermediaries such as wholesalers and retailers

loyalty marketing program

a promotional program designed to build long-term mutually beneficial relationships between a company and its key customers.

advertising appeal

a reason for a person to buy a product

specialty store

a retail store specializing in a given type of merchandise within a single category of interest EX. Children's Place, Williams-Sonoma, and Foot Locker

Drugstores

a retail store that stocks pharmacy-related products and services as its main draw

discount store

a retailer that competes on the basis of low prices, high turnover, and high volume

Restaurants

a retailer that provides both tangible products—food and drink—and valuable services—food preparation and presentation Ex: Olive Garden Italian Restaurants and Starbucks coffeehouses

off-price retailer

a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn't ask for return privileges Ex: Marshall's, TJ Maxx, Ross

Used goods retailer

a retailer whereby items purchased from one of the other types of retailers are resold to different customers. Used goods retailers can be either brick-and-mortar locations (such as Goodwill stores) or electronic marketplaces (such as threadUP)

Advertising campaign

a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

Marketing Channel (Channel of Distribution)

a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer. Represents "place" or "distribution" element of the marketing mix (product, price, promotion, and place), in that they provide a route form company products and services to flow to the customer.

department store

a store housing several departments under one roof EX. JCPenney, Macy's

Customer Relationship Management (CRM)

allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain

premium

an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product

Factory Outlet

an off-price retailing operation that is owned and operated by a single manufacturer and carries one line of merchandise- its own.

manufacturing flow management process

concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process

Media Scheduling

designation of the media, the specific publications or programs, and the insertion dates of advertising There are four types of schedule

returns management process

enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain

Product development and commercialization process

includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms

decoding

interpretation of the language and symbols sent by the source through a channel ex. Receiver interpretation of message

transactional function

involve contacting and communicating with prospective buyers to make them aware of existing products and to explain their features, advantages, and benefits

promotional strategy

is a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media

Interests

it arranges iPad demonstrations and develops target messages to create interest among innovators and early adopters.

Place (Distribution)

location and hours

The communication process

marketers are both senders and receivers of messages. Senders attempt to inform, persuade, and remind the target marker to take actions compatible with the need to promote the purchase of goods and services. Receivers: marketers listen to the target market in order to develop the appropriate messages, adapt existing messages, and spot new communication opportunities. Sender, encoding the message, message channel, decoding the message, receiver, noise, and feedback channel

Sales Prmotion

marketing activities-other than personal selling, advertising, and public relations- that stimulate consumer buying and dealer effectiveness

push money

money offered to channel intermediaries to encourage them to "push" products- that is, to encourage other members of the channel to sell the products.

Channel Members (also called intermediaries, resellers, and middlemen)

negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving finished goods from the manufacturer into the hands of the final consumer.

Free merchandise

often a manufacturer offers retailers free merchandise in lieu of quantity discounts. Free merchandise is used as a payment for trade allowances normally provided through other sales promotions.

Customer Service Management

presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced

Retailing

represents all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non business use. Continued are the types In-Store Retailers.

facilitating function

researching and financing. Research provides information about channel members and consumers by getting answers to key questions: Who are the buyers? where are they located? Why do they buy? Financing ensures that channel members have the money to keep products moving through the channel to the ultimate consumer

Diminishing Return

sales and market share improvements slow down and eventually decrease no matter how much is spent on advertising and sales promotion.

demand managment process

seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior

Training

sometimes the manufacturer will train an intermediary's personnel if the product is rather complex- as frequently occurs in the computer and telecommunications industries

Supplier Relationship Management (SRM)

supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers

Attention

the advertiser must first gain the attention of the target market. A firm cannot sell something if the market does not know that the good or service exists. ex. Apple uses a number of media outlets to gain the attention of the target market

Gross Margin

the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

Integrated marketing communications (IMC)

the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer

medium

the channel used to convey a message to a target market

Promotional Mix

the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization's overall goals

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

encoding

the conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs ex. Advertisement, Sales presentation, Coupon

Sender

the originator of the message in the communication process ex. Marketing manager, Advertising manager

receiver

the person who decodes a message ex. customers, viewers/listeners

Feedback

the receiver's response to a message ex. market research, Sales result, change in market share social media

media planning

the series of decision advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience

Channel Functions Performed by Intermediaries

transactional functions, logistical functions, and facilitating functions

Logisitical Function

typically include transportation and storage of assets, as well as their sorting, accumulation, consolidation, and/or allocation for the purpose of conforming to customer requirements