Marketing Exam 2

Discuss the selection of nonprofit markets:

-Apathetic or strongly opposed targets—strongly opposed to receiving their services -Pressure to adopt undifferentiated segmentation strategies—fail to recognize the advantages -Complementary positioning—complement, rather than compete

What are product decisions for nonprofits?

-Benefit complexity—complex, long term, and intangible -Benefit strength—weak or indirect -Involvement—elicit low involvement

Describe five product characteristics can be used to predict and explain the rate of acceptance and diffusion of a new product:

-Complexity: The more complex the product, the slower is its diffusion. -Compatibility: Incompatible products diffuse more slowly than compatible products. -Relative advantage: The degree to which a product is perceived as superior to existing substitutes. -Observability: The degree to which the benefits or other results of using the products can be observed by others and communicated to target customers. -Trialability: The degree to which a product can be tried on a limited basis

Describe trends leading to growth in CRM

1. Personalization: one size fits all marketing no longer relevant Time savings: direct and personal marketing efforts will continue to grow to meet the needs of consumers who no longer have the time to spend shopping and marketing purchases online 2. Loyalty: customers will be loyal only to those companies and brands that have earned their loyalty and reinforced it at every purchase occasion 3. Technology: mass media approaches will decline in important as advances in market research and database technology allow marketers to collect detailed info on their customers. 4. Practice: how marketers use csr as a targeting tool Track info with customers to optimize satisfaction How do crm programs grow long term company profits brainstorm

Markets are segmented for what three reasons?

1. Segmentation enables identification of groups of customers with similar needs and the analysis of the buying behavior of these groups 2. Segmentation provides info to design marketing mixs to match the characteristics of the segment 3. Segmentation helps marketers satisfy customer wants and needs while meeting the organization's objectives

What are the four broad segments of the business market?

1. producers 2. resellers 3. government 4. institutions

Until the ___________, market segmentation was not used extensively.

1960s

•Smaller and localized supply chains will become the norm. •Small manufacturers will produce many more custom products than before over short lead times. •3DP removes the need for transportation of goods to distribution centers and retailers •3DP can help create a positive impact on businesses' carbon footprints and the environment at large.

3D printing

__% of sales come from __% of customers

80/20

Principle holding that 20 percent of all customers generate 80 percent of the demand

80/20 principle

Women make ___ percent of consumer goods purchases annually.

85

Explain a concentrated targeting strategy, describing and giving example of a niche market:

A firm selects a niche for targeting its marketing efforts. Because the firm is appealing to a single segment, it can concentrate on understanding the news, motives, and satisfactions of that segment's members and on developing and maintaining a highly specialized marketing mix (intelligentsia coffee and tea). Focus on a narrow market is sometimes more profitable than spreading resources over several different segments. It often enables small firms to compete with larger ones. However, can be dangerous for a firm if it is not successful in its narrowly defined target market (do not put all your eggs in one basket).

Describe a multisegment targeting strategy:

A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each. P and G offers 18 different laundry detergents, each toward different segments of the market.

What are the key advantages of carrying private brands?

A wholesaler or retailer can usually earn higher profits on its own brand. In addition, because the private brand is exclusive, there is less pressure to mark down the price to meet competition. A manufacturer can decide to drop a brand or a reseller at any time or even become a direct competitor to its dealers - a private brand ties the customer to the wholesaler or retailer. A person who wants archer farms snacks must go to target Wholesalers and retailers have no control over intensity of distribution or manufacturers; brands. Walmart store managers don't have to worry about competing with other sellers of sam's american choice products or ol' roy dog food. They know that these brands are sold only in walmart and sam's clubs stores.

Describe uses of the internet for marketing researchers:

Administer surveys, Conduct focus groups, Other types of marketing research

Discuss preparing and presenting the report and follow up:

After data analysis is completed, the report is prepared and conclusions and recommendations are communicated to management. •The report should be tailored to the audience. •Researchers are required to present written and oral reports. •Contents of a report: -Concise statement of the research objectives -Brief explanation of research design -Summary of major findings -Conclusion with recommendations •Follow up: -Researcher should determine why management did or did not carry out the recommendations.

Describe sources of new product ideas:

-Customers: The marketing concept that customers' wants and needs should be the springboard for developing new products. -Employees: Employees know a company's products and processes better than anyone else. -Distributors: A well-trained sales force routinely asks distributors about needs that are not being met. •Competitors: No firms rely solely on internally generated ideas for new product. •Research and development: Product development goes beyond applied research by converting applications into marketable products. •Consultants: Outside consultants are always available to examine a business and recommend product ideas. •Other experts: The goal of brainstorming is to get a group to think of unlimited ways to vary a product or solve a problem.

Discuss levels of relationship marketing (financial, social, customization, structural):

-Financial—Using pricing incentives (Ex. Loyalty program) -Social—Building social bonds (Ex. Birthday Cards) -Customization—Developing one-to-one solutions to fit customers' needs -Structural—Offering value-added services (Ex. Hotel with spa)

What are reasons for globalizing a company's supply chain?

-Increasing demand for imported products worldwide -Cheap labor advantages -Removal of trade barriers/tariffs -Exposure to new technologies -Creating competition to domestic suppliers -Building brand equity

Strategic retailing goals focus on:

-increasing sales, reducing costs of goods sold, and improving financial ratios. -Strategic tasks that precede tactical decisions.

What are the 7 steps of a market research project?

1. Identify and formulate the problem. opportunity 2. Plan the research design and gather secondary data 3. Specify the sampling procedures 4. Collect primary data 5. Analyze the data 6. Prepare and present the report 7. Follow up

_________ combines a consumer's online activity with psychographic and demographic profiles compiled in databases.

Behavioral targeting (BT)

______ segmentation groups potential customers on the basis of their needs or wants only.

Benefit

Describe the benefits of online focus groups:

Better participation rates; Cost-effectiveness; Broad geographic scope; Accessibility

three main purposes of branding

Branding has three main purposes: product identification, repeat sales, and new-product sales. Product identification §Brand equity: Value of a company or brand name §Global brand: Brand that obtains at least one-third of its earnings from outside its home country §Brand loyalty: Consistent preference for one brand over all others Facilitate new product sales and repeat sales

Explain an exclusive (or captive) brand

Brands manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation No evidence of store affiliation Manufactured by a third party Sold exclusively at the chains Retailer can ask a price similar to that of manufacturers' brands and earn higher margins (target brand - archer farms monster trail mix)

__________ tends to customize goods and services offered to customers based on data generated through interactions between carefully defined groups of customers and the company. Can allow marketers to target customers with extremely relevant offerings (etsy - online marketplace where entrepreneurs sell hand made or curated products. Data analytics study user browsing and purchase habits to recommend products, create brand awareness, huge commitment

CRM (customer relationship management)

___________ helps managers assess their competition and vendors in order to become more efficient and effective competitors.

Competitive intelligence

family life segmentation

Consumption patterns among people fo the same age and gender differ because they are in different stages of the family life cycle. Series of stages are determined by a combination of age, marital status, and the presence or absence of children.

What are ways to conduct online surveys?

Designed for web questionnaire construction and delivery (Example: SurveyMonkey •Google consumer surveys -Do-it-yourself web surveys •Online panel providers -Pre-recruit people who agree to participate in online surveys

Discuss how to develop a retail market strategy:

Developed based on the goals established by stakeholders and the overall strategic plans developed by company leadership

_________________ (DMCA) explicitly applies trademark law to the digital world. This includes financial penalties for those who: violate trademarks, register an otherwise trademarked term

Digital millennium copyright act

____________ is used to sell products directly to consumers. No intermediaries are used. -Examples include telemarketing, catalog shopping, online shopping, and shop-at-home television networks.

Direct channel

What is the significance of big data to marketers?

Exponential growth in the volume, variety, and velocity of info. (development of complex, new tools to analyze and create meaning from such data). Gather both online and offline (except for personally identifiable info). Data visualization uncovers subtle patterns from billions of pieces of data (enables managers to share and explain their findings).

Discuss the growing importance of social media data

Facebook owns and controls data collected from 2 billion daily users and 79 billion monthly active users In an effort to expand its information databases even further, Facebook now combines its social data with third-party information from data brokerages like Acxiom, Datalogix, and Alliance Data Systems •New Facebook tool allows advertisers to calculate their return on investment. Facebook has also begun using the like and share buttons embedded in non-Facebook websites to track peoples' browsing histories, so it can more accurately and narrowly target ads

Describe the importance of selecting a target market:

First step in determining whom to approach about buying a product. Next is to choose target market. Because most markets will include customers with different lifestyles, backgrounds, and income levels, it is unlikely that a single marketing mix will attract all segments of the market. Market knowledge is needed for market segmentation

Describe the different gap models of service quality:

Gap 1: The gap between what customers want and what management thinks. Gap 2: •The gap between what management thinks customers want and the quality specifications that management develops to provide the service. -Example: KFC - how much chicken thrown away due to cooking more than demand? Gap 3: •The gap between the service quality specifications and the service that is actually provided. -Untrained employees Gap 4: •The gap between what the company provides and what the customer is told it provides. Marketers need to create realistic expectations. Gap 5: The gap between the service that customers receive and the service they want. This gap can be positive or negative.

Smallest at only 16% of world population however highest income. Sandwich generation. Disloyal and skeptical of brands and do not like to show off their wealth. Want good value

Gen X

tweens and teens Access to 44B buying power - prefer to shop in physical stores, have own rules for social media etiquette

Gen Z

What are the key advantages of carrying manufacturer brands?

Heavy advertising to the consumer by manufacturers such as proctor and gamble helps develop strong consumer loyalties Well known manufacturers' brands, such as kodak and fischer-price can attract new customers and enhance the dealer's (wholesalers or retailers) prestige. Many manufacturers offer rapid delivery, enabling the dealer to carry less inventory. If a dealer happens to sell a manufacturer's brand of poor quality, the customer may simply switch brands and remain loyal to the dealer

segment must be identifiable and its size measurable (are there willing, unwilling, or indifferent customers?

Identifiability and measurement

may be significantly or only slightly changed.

Improvements or revisions of existing products

What are management uses for market research?

Improves the quality of decision making; helps managers trace problems; helps managers understand detailed and complicated relationships; helps managers serve customers accurately and efficiently.

•Many companies have begun to employ a multichannel marketing strategy, whereby customers are offered information, goods, services, and/or support through one or more synchronized channels. •More engaged during the purchase process •The exception is when customers are buying simple, utilitarian products that are well known and intended for frequent use. •Create redundancy and complexity in the firm's distribution system. •Selling through multiple channels is typically accompanied by the construction of multiple, parallel supply chains, each with its own inventory, processes, and performance metrics. •Each channel would operate different transportation and distribution systems, hold and account for its own inventory, and otherwise act as an independent sales and profit center with little knowledge of the other.

multichannel marketing

Most markets contain customers with different characteristics and lifestyles, requiring the development of ______________________

multiple marketing mixes

___________________: Studies the body's responses to marketing stimuli

neuromarketing

allow a firm to enter an established market.

new product lines

growing faster than in-store retailing because of changes in culture and society. It adds a level of convenience for customers who wish to shop from their current locations.

non-store retailing

any sample in which little or no attempt is made to get a representative cross section of the population.

nonprobability sample

____________________: Non-physical channels that facilitate the unique market access of products and services

nontraditional channels

The systematic process of recording the behavioral patterns of people, objects, and occurrences without questioning them. Relies on people watching people; people watching an activity; machines watching people; machines watching an activity.

observation research

American companies have been offshoring, or outsourcing logistics, to service providers located in countries with lower labor costs, such as Vietnam or Bangladesh.

offhshoring

•Companies that use omnichannel marketing allow customers to reserve items online for pickup at nearby stores, offer a web-based find-in-store feature that displays real-time stock information and prevents unnecessary trips to the store, and provide in-store computer terminals or iPads that customers can use to search company websites for products that local stores may not carry. •Helps unify retail interfaces so that all customers receive equal and efficient service •Helps retailers merge their distribution channels -By making their inventory data available to customers in real time •Creates greater customer control over the shopping experience, leading to greater satisfaction and loyalty

omnichannel marketing

________________________: Company markets mainly one product and the brand name does not have negative connotations.

one brand name everywhere

_______ allows the researchers to see the participants, but the participants cannot see the researchers.

one-way mirror

_______________: encourage an answer phrased in the respondent's own words

open-ended questions

Seeks to match supply and demand by varying price

operations-oriented pricing

business customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selecting one.

optimizers

•One of the most fundamental processes in supply chain management is the order fulfillment process, which involves generating, filling, delivering, and providing on-the-spot service for customer orders. •Order cycle time: Time delay between the placement of a customer's order and its receipt •Highly integrated process -Requires people from multiple companies and functions to gather and coordinate to create customer satisfaction at a given place and time -Reduces order cycle time when at its best -Involves understanding and integrating the firm's internal capabilities with customer needs and matching these together §For allowing supply chain to maximize profits and minimize costs and waste

order fulfillment

Manufacturer's or supplier's use of independent third party to manage an entire function of the logistics system -Third party can be third-party logistics company (3PL) or fourth-party logistics company (4PL) -Reduces inventories -Locates stock at fewer plants and distribution centers -Provides same or better levels of service

outsourcing and outsourcing logistics functions

a rapidly growing initiative in which a manufacturer or supplier turns over an entire logistical function (often buying and managing transportation, warehousing, and/or light postponed manufacturing) to an independent third-party logistics company (3PL).

outsourcing or contract logistics

§ Independent retailer: §Establishment is owned by an individual or a group §not operated as part of a larger retail network. § Chain store: §Part of a group of the same stores owned and operated by a single organization §handled by a home office, which ensures consistency across different locations.

ownership agreement

Packages in the product line may have a common look but continue to maintain their individual identities.

package uniformity

Tries to maximize the number of customers by varying price

patronage-oriented pricing

the service is directed at a customer (Medical Care or Transportation)

people processing

___________________: means of displaying or graphing the location of products, brands, or groups of products in customers' minds

perceptual mapping

________________________: Inability of services to be stored, warehoused, or inventoried.

perishability

reflects a person's traits, attitudes, and habit. (fashionista or conservative?)

personality

Focuses on a promotional theme or logo; Consumer information is secondary

persuasive labelling

-Usefulness of a good or service as a function of the location at which it is made available

place utility

directs to customers' physical possessions (Mowing Yard)

possession processing

_______________________________ refers to the follow-up activities that a service firm might engage in after a customer transaction.

post-purchase communication

Addressing "what if" questions; "what if" questions, such as how can descriptive and diagnostic research be used to predict the results of a planned marketing decision?

predictive

Info collected for the first time; used for solving the particular problem under investigation. Advantages: answers specific research questions that secondary research cannot; data are current, and source of data is known; secrecy can be maintained. The cost of primary data may range from a few thousand dollars for a limited survey to several million for a nation wide. To save money, firms must use internet studies or they gather data on two different projects using one questionnaire (piggyback studies).

primary data

a sample in which every element in the population has a known statistical likelihood of being selected.

probability samples

to most people, the term ______ means a tangible good. •However, services and ideas are also ________s.

product

A ___________________ includes all brands that satisfy a particular type of need.

product category_

•A multi-company collaboration is used to execute new-product development, testing, and launch, among other activities. •Designing a new product with the help of suppliers and customers can enable a company to introduce features and cost-cutting measures into final products. •Group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms. •Capability for developing and introducing new offerings quickly is key for competitive success versus rival firms.

product development and commercialization

___________________ is the positioning strategy used by firms to distinguish their products from those of competitors

product differentiation__

a widely familiar concept in marketing and is considered a useful marketing management tool. However, some critics have challenged the theoretical basis and managerial value of the PLC.

product lifecycle

•Contracting product lines is a strategic way to deal with overextension. •Benefits: -Resources become concentrated on the most important products. −Managers do not waste resources trying to improve the sales and profits of poorly performing products. −New-product items have a chance of being successful owing to availability of financial and human resources.

product line contraction

•Adding additional products to an existing product line •A company can add too many products, or demand can change for the type of products that were introduced over time •Product lines can be overextended when: -Products do not contribute to profits -Manufacturing or marketing resources are disproportionately allocated Items in the line are obsolete

product line extensions

Rarely does a company sell a single product. Instead, it sells a variety of product items that may be categorized into ________________ and _________________________.

product lines; product mixes

Changing one or more characteristics of a product •Includes modification in: -Quality: Change in a product's dependability or durability -Function: Change in a product's versatility, effectiveness, convenience, or safety -Style: An aesthetic product change •Planned obsolescence: Practice of modifying products so those that have already been sold become obsolete before they actually need replacement

product modifications

this position base focuses on a personality or type of user

product user

Personality, motives, lifestyles, and geodemographics, going beyond just demographics of age, wealth, education, etc (the skeleton) psychographics add meat to the bones. Psychographic segmentation is market segmentation on the basis of the following psychographic segmentation variables:

pscyhographic segmentation

•It is often assumed that industries and governments work poorly together (or in fact work against one another) when problems common to both emerge. •However, a number of successful PPPs have formed over the past decade to diminish the negative impacts of potentially hazardous supply chain situations. •Critical to the satisfaction of both company and societal interests •Provide a mechanism by which very large-scale problems or opportunities can be addressed •Factor into the solution of future national and global supply chain problems

public-private partnerships (PPP)

Occurs when the selected sample is an imperfect representation of the overall population

random error

a sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample.

random sample

Many services involve ongoing interaction between the service organization and the customer. They can benefit from _________________ marketing as a means of attracting, developing, and retaining customer relationships.

relationship

Ability of two or more companies to develop social connections that serve to guide their interactions when working together

relationship integration

A _______________________ results when the product returns a profit but fails to achieve sales, profit, or market share goals.

relative product failure

are targeted at new markets or market segments.

repositioned products

_______________: changing consumers' perceptions of a brand in relation to competing brands

repositioning

•____________ changes consumers' perceptions of a brand. •Factors that motivate a firm to reposition an established brand: -Changing demographics -Declining sales Changes in the social environment

repositioning

segment need not to be treated separately unless it responds differently to a marketing mix (offering small, medium, and large sizes if customer has willingness to pay more)

responsiveness

tangible products and valuable services

restaraunt

___________ is the reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs.

retail channel omnification

____________________: Channel intermediary that sells mainly to consumers

retailer

All activities directly related to the sale of goods and services to the ultimate consumer for personal, non business use

retailing

•Enables firms to manage volumes of returned product efficiently •Minimizes returns-related costs and maximizes the value of the returned assets to the firms in the supply chain •Handling returns quickly creates a positive image •Gives the company an additional opportunity to please the customer

returns management

Focuses on maximizing the surplus of income over costs

revenue-oriented pricing

__________________: Enable customers to return products or components for reuse or remanufacturing

reverse channels

Occurs when a sample does not represent the target population

sampling error

Once the researchers decide how to collect primary data, the next step is to select the sampling procedures being used. Since it is not possible to interview all users of a new product, a firm must select a sample or a subset of the larger population.

sampling procedure

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements.

satisficers

_________________: closed-ended questions designed to measure the intensity of a respondent's answer

scaled response questions

System for gathering information from a single group of respondents -Involves continuous monitoring of advertising, promotion, and pricing respondents are exposed to •Companies are using neuromarketing to study consumers reactions to package designs and ads

scanner-based research

What are characteristics of leading supply-chain oriented firms?

In a world-class supply chain, the customer may not know where the business activities of one firm or business unit end and where those of another begin—each actor keeps their own interests in mind, but all appear to be reading from the same script, and from time to time, each makes sacrifices that benefit the performance of the system as a whole. Supply chain orientation •System of management practices that are consistent with a "systems thinking" approach Supply chain integration •Occurs when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another •Credibility •Benevolence •Availability of support from top managers •Efficiency in conducting and directing supply chain activity

income levels influence consumers' wants and determines their buying power

Income segmentation

Describe levels of distribution intensity:

Intensive: •Aims at having a product available in every outlet where target customers might want to buy it Selective: •Achieved by screening dealers to eliminate all but a few in any single area Exclusive: •Entails one or only or a few dealers within a given area

Steps to register a trademark:

Intent-to-use application is filled with the US patent and trademark office Company should have genuine intention to use the mark Company should use it within three years of the granting of the application Others are prohibited to use the brand without permission. Parts of a brand or other product identification may qualify for trademark protection. Companies that fail to protect trademarks face the risk of their product names becoming generic. This list includes aspirin, cellophane, thermos, monopoly, cola, and shredded wheat.

Discuss the difference between a manufacturer (or national) brand and a private label (or store) brand:

Manufacturers' Brand (national brand) = del monte fresh cut whole corn kernel Private brand (private label) or store brand, is a brand name owned by a wholesaler or a retailer = hyvee golden corn whole kernel

Process of dividing a market into meaningful, relatively similar, and identifiable segments or group

Market Segmentation

Marketers focus on what type of tangible cues to communicate a service's nature and quality?

Marketers focus on tangible cues to communicate a service's nature and quality -Uniform -Neatness of customer service areas -Décor -Staff's mannerisms

Describe how market research helps a business understand the ever-changing marketplace:

Marketing research helps managers understand what is going on in the marketplace and take advantage of opportunities. Example - one of the hottest trends in tech is the internet of things (IoT). By 2019, 69% plan to have at least one IoT device, such as a thermostat or security system. Men are more likely than women to plan to purchase an in-home IoT device by 2019 (70% compared to 67%). Younger consumers are more likely to adopt connected technologies later on, while older consumers are slightly more likely to already own certain products.

Largest generation group at +75 million - idealistic, pragmatic, tech proficient, prefer brands that are trustworthy, creative, authentic, confident, socially responsible

Millenials

_________ are researchers posing as customers who gather observational data about a store.

Mystery shoppers

______________ to locations such as Mexico or the Caribbean nations ensures low costs while reducing supply chain risk

Nearshoring / inshoring

Explain the new product development process:

New product strategy Idea generation Idea screening Business analysis Development Test marketing Commercialization New product

_____________ links the new-product development process with the objectives of the marketing department, business unit, and corporation. It is part of the organization's overall marketing strategy. It sharpens the focus and provides general guidelines for generating, screening, and evaluating new-product ideas.

New-product strategy

(or discontinuous innovations) create an entirely new market and are the smallest category of new products.

New-to-the-world products

_________ is the palace of a product, brand, or group of products occupies in consumers' minds relative to competing offerings. (positioning assumes that consumers compared products on the basis of important features). Effective positioning requires:

Positioning

Discuss the components of a market research project:

Some companies spend millions on marketing research small firms conduct informal, limited-scale research studies; virtually all firms that have adopted them marketing concept engage in some marketing research because it offers decision makers many benefits. Marketing research problem —- determines what info is needed and how ti can be obtained efficiently and effectively Marketing research objective —-- defines the specific info needed to solve a marketing problem Management decision problem —--- broad-based problem that uses marketing research in order for managers to take proper actions.

Explain methods for collecting the data:

Some primary data are collected by marketing research field service firms, which specialize in interviewing respondents on a subcontract basis •A typical marketing research study involves data collection in several cities, which may require the marketer to work with a comparable number of field service firms. •Field service firms specialize in interviewing respondents on a subcontracted basis. -They also provide focus group facilities, mall intercept locations, test product stores, and kitchen facilities to prepare test food product

What are ways to improve clarity in an interview?

State the survey's purpose at the beginning of the interview; avoid leading questions; avoid asking two questions in one

Describe place decisions for nonprofits:

Success is determined by a nonprofit organization's ability to distribute its service offerings when and where customers want them

Describe the concept test for new ideas:

Test to evaluate a new-product idea, usually before any prototype has been created. -considered fairly good predictors of success for line extensions. -relatively precise predictors of success for new products that are: § not copycat items §not easily classified into existing product categories do not require major changes in consumer behavior.

Discuss the importance of new products:

The introduction of a new product is a monumental undertaking with a lot of open-ended questions •Important to sustain growth, increase revenues and profits, and replace obsolete items •Reaching more people •Building a better business •Spurring mass-market appeal for unusual or highly technical products or services •It is difficult to decide when to replace a successful product. •The new version features a retina display, thinner design, and a longer-lasting battery

Purpose of market segment

To enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments.

First introduced in 1974; Series of thick and thin vertical lines (bar codes) readable by computerized optical scanners [Represent numbers used to track products]; Help retailers prepare records of customer purchases, control inventories, and track sales

Universal Product Codes (UPC's)

___________________ occurs when a company cannot recoup its development, marketing, and production costs—the product actually loses money for the company.

absolute failure

Online focus groups provide access to participants who might otherwise be difficult to recruit

accesibility

marketing mix must be reachable to members of targeted segments (difficult to reach elderly, language barriers, illiterate)

accessibility

________________________: A one-brand name strategy is not possible when the name cannot be pronounced in the local language; is owned by someone else; or has a negative or vulgar connotation.

adaptations and modifications

include new products that supplement a firm's established product line.

additions to existing product lines

•Over time, firms change product items, lines, and mixes to take advantage of new technical or product developments or to respond to changes in the environment. •Adjustment strategies to product items, lines, and mixes -Product modification −Product repositioning −Product line extension −Product line contraction

adjustments

Product lines provide economies of scale in advertising.

advertising economics

________________________: Package aesthetics are important from a cultural perspective. For example, colors may have different connotations in different countries. Package size is influenced by the availability of refrigeration, amount of storage space, and purchasing power of buyers.

aesthetics

At the other end of the spectrum, an ___________ channel may be used in markets with small manufacturers/retailers who lack the resources to find each other. The agents or brokers bring the manufacturers and wholesalers together for negotiations, but they do not take title to merchandise.

agent/broker

-Sales of products downstream by representing the interests of retailers, wholesalers, and manufacturers to potential customers -Do not take title to a product -Get a fee or commission based on sales volume

agents and brokers

a product is associated with an attribute, product feature, or customer benefit

attribute

list positioning bases

attribute, price and quality, use or application, product user, product class, competitor, emotion

the use of machines to offer goods for sale

automatic vending

25% of population or ⅓ of adult population. Live longer, healthier, connected lives Great depression Cautious, play by the rules. Require modifications for products, such as hand rails, easy access restrooms. Wealthiest elders ever seen

baby boomers

Inventory held in reserve for potential future sale in a retailer's storeroom or stockroom

back stock

___________: Sends out connecting signals to customers' smartphones and tablets in order to bring them into a retail store or improve their shopping experience

beacons

Online focus groups are conducted over the course of days. Therefore, participants are less likely to pull out.

better participation rates

Increasing prevalence of powerful computers and methods for capturing customer, supplier, and company information over the past two decades has resulted in the appearance of: ____________________

big data

Today, more and more firms are using _____________ tools to catalog customer attributes and analyze which characteristics they have in common. ____________ analytics focuses on gathering data and learning and adapting based on that data.

big data

______________: Process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior

big data analytics

Name, term, symbol, design, or combination that identifies a sellers' products and differentiates them from competitors' products.

brand

__________________: Reduction of sales for one brand as the result of the introduction of a new product

brand cannibilzation

Value of a company or brand name

brand equity

Consistent preference for one brand over all others Facilitate new product sales and repeat sales

brand loyalty

_________: Elements of a brand that cannot be spoken

brand mark

__________: Part of a brand that can be spoken, including letters, words, and numbers

brand name

Time is flexible online. This provides a worldwide respondent pool.

broad geographic scope

Business processes are composed of _________________________________ that stretch across firms in the supply chain

bundles of interconnected activities

Risk of _____________ - when sales of new product cut into sales of existing product

cannibalization

Part of a group of the same stores owned and operated by a single organization §handled by a home office, which ensures consistency across different locations.

chain store

-Negotiate with one another -Buy and sell products -Facilitate the change of ownership between buyer and seller while moving the product from the manufacturer to the final consumer

channel members

______________________: Extreme climates and long-distance shipping necessitate sturdier packages. Packages may need a longer shelf life.

climate considerations

_________________: ask the respondent to make a selection from a limited list of responses

closed ended questions

-Practice of using remote network servers to store, manage, and process data -It is used to collaborate on big data projects and analyze findings in a quick and cost-effective manner.

cloud computing

________________ is a useful strategy when a combination of brand names enhances the prestige or perceived value of a product or when it benefits brand owners and users. •Placing two or more brand names on a product or its package

co-branding

The final stage in the new-product development process is ___________________.

commercialization

The diffusion process is communication directly from the marketer to potential adopters. -Messages directed toward early adopters should normally use different appeals than messages directed toward the early majority.

communication from marketers to consumers

Geographic location; type of company; company size; product use; volume of purchase (heavy, moderate, light) is a commonly used basis for business segmentation (ex. Banks or credit card companies offering different services, lines of credit based upon volume).

company characteristics

positioning against competitors is part of any positioning strategy

competitor

________________: Suggests usage by advertising and marketing products that are used together

complementary branding

______________________: Selects one segment of a market for targeting marketing efforts

concentrated targeting strategy

Inexpensive items that merit little shopping effort Candy, soft drinks, deodorant, aspirin, hardware, and dry cleaning

convenience

mini supermarket, with high-turnover goods

convenience store

_________________: Occurs when two brands receiving equal treatment borrow from each other's brand equity

cooperative branding

Most basic benefit the customer is buying

core service

Face-to-face groups incur costs for facility rental, airfare, hotel, food, etc.

cost-effectiveness

A ___________ helps the analyst look at the associations between certain responses, such as the association between gender and product choice.

cross-tabulation

Enables firms to offer long-lasting, distinctive, value-added offerings to customers who represent the greatest value to the firm or supply chain

customer integration

he CRM process provides a set of comprehensive principles for the initiation and maintenance of customer relationships and is often carried out with the assistance of specialized CRM computer software. •Allows companies to prioritize their marketing focus on different customer groups based on each group's long-term value to the company or supply chain. •The CRM process includes customer segmentation by value and subsequent generation of customer loyalty for the most attractive segments.

customer relationship management

Describe the eight critical business processes on which supply chain managers must focus:

customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, product development and commercialization, returns management

•Presents a multi-company, unified response system to customers when complaints, concerns, questions, or comments are voiced •Has strong positive impact on revenues when executed properly •Enhanced by the use of customer care software

customer service management

_________________ services —more flexible, respond to individual customers' needs, and command a higher price

customized

•depends on how rapidly consumer tastes change or substitute products are adopted. -Many convenience products and fad items lose their market overnight. •Some firms eliminate all nonessential marketing expenses and let sales decline as more and more customers discontinue purchasing the products. •Long-run drop in sales Large inventories of unsold items

decline stage

What are future channel trends?

delivery options expanded, self driving trucks, embark, amazon drones

•Demand management seeks to minimize the costs of serving multiple types of customers who have variable wants and needs. •It is very difficult to predict exactly what items and quantities customers will buy prior to purchase. •Sales and operations planning (S&OP): Method companies use to align production with demand by merging tactical and strategic planning methods across functional areas of the business

demand management

•Type of internal supply chain integration •Integrates the supply-management and demand-generating functions of an organization •Enhances customer satisfaction •Under the DSI philosophy, those functional areas in a company charged with creating customer demand communicate frequently and are synchronized with the parts of the business charged with fulfilling the created demand

demand supply integration (DSI)

Widely available and often related to consumers' buying and consuming behavior (age, gender, income, ethnic background, family life cycle)

demographic segmentation

carries products and goods

department stores

Product line ________: The number of product items in a product line

depth

___________—Number of different brands offered within each assortment

depth

gathering and presenting factual statements; what is the historic sales trend in the industry? What are consumers' attitudes towards a product?

descriptive

roles of market research

descriptive, diagnostic, predictive

Stores in isolated locations must become ______________ stores in order to be successful

destination_

explaining data; what was the impact on sales after a change in the package design?

diagnostic

_______________________: Local brand names are often used when translation or pronunciation problems occur. (BREAD CO VS PANERA)

different brand names in different markets

_________________: Process by which the adoption of an innovation spreads

diffusion

the delivery of advertising or marketing material to recipients of postal or electronic mail

direct mail

techniques used to get consumers to make a purchase from their home, office, or other nonretail setting

direct marketing

the selling of products by representatives

direct retailing

low prices, high turnover, and high volume

discount store

__________________: System used by retailers that allows customers to bring used products for return or donation at the entrance of the store

drop and shop

pharmacy-related products and services

drugstore

___________________: Use of two or more channels to distribute the same product to target markets

dual channels

A desire to earn the respect of others is a dominant characteristic among early adopters. §The next 13.5 percent to adopt the product. §They are oriented to the community and rely on group norms and values.

early adopter

The early majority is an important link in the process of diffusing new ideas. §The next 34 percent to adopt. §They weigh the pros and cons before adopting a new product and rely on group information.

early majority

A product line enables a full range of choices to customers, which results in better distribution and retail coverage.

efficient sales and distribution

•In the future, electronic distribution will not be limited only to products and services that are composed of information that can be easily digitized. •Includes any kind of product or service that can be distributed electronically -Through traditional forms (fiber-optic cable) or through satellite transmission of electronic signals

electronic distribution

positioning using emotion focuses on how the product makes customers feel.

emotion

All products in a line are perceived as having similar quality.

equivalent quality

Up til 70s ethnic foods were only found at specialty stores. Increasing number of ethnic minorities and increased buying power has changed this Some companies make products geared towards specific ethnic groups. Largest ethnic groups in the US: hispanic americans, african americans, asian americans

ethnic segmentation

comes from the field of anthropology and is becoming popular in commercial marketing research. It is study of human behavior in its natural context. It involves observation of behavior and physical setting. Ethnographers directly observe the population they are studying to gain richer insights into the culture and behavior of people.

ethnographic research

-Increased value of a product that is created as its ownership is transferred -created when channel members (usually retailers) swap the product for money.

exchange utility

Used by researchers to gather primary data; One or more variables are altered, and the effects of the alterations are observed on another variable

experiments

Written guarantee of warranty

express warranty

As changes occur in the firm's ___________________, marketing managers must decide on changes to the existing marketing mix.

external

Marketing several different products under the same brand name

family branding

specialty shops keep high amounts of _________ stock in order to accommodate a broad range of customer demands.

floor and back

Inventory displayed for sale to customer

floor stock

-Elements of the composition and appearance of a product that make it desirable -created when channel members transform raw materials into a consumable form for customers.

form utility

Occurs when a sample drawn from a population differs from the target population

frame error

§Relationship in which business rights to operate and sell a product are granted by the franchisor to the franchisee

franchise

Includes repair of any defects and replacement of the merchandise or a full refund

full warranty

uses different strategies for men and women; many marketers are going after the less-traditional market

gender segmentation

_________________: Identifies a product by class or type and cannot be trademarked

generic product name

______ segmentation clusters potential customers into neighborhood lifestyle categories (college students)

geodemographic

Segments markets by region of a country or the world; market size; market density (number of people within a unit of land); climate (impacts purchasing behavior). Target is testing small stores in urban and college market locations - chicago, manhattan, LA, san francisco, and minneapolis.

geographic segmentation

Brand that obtains at least one-third of its earnings from outside its home country

global brand

___________________: Unintended secondary channel that often flows illegally obtained or counterfeit product toward customers

gray marketing channels

_______________: Attempt to give the impression of environmental friendliness

greenwashing

•sales grow at an increasing rate, many competitors enter the market, and larger companies may acquire small pioneering firms. •Profits rise rapidly, peak, and begin declining as competition increases. •Aggressive brand advertising and communication of the differences between brands is the preferred promotion strategy. •Adequate distribution is a major key to establish a strong market position and product success.

growth stage

_________________________: Variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods.

heterogenity

Price is a key element in a retail store's positioning strategy. For example, _____________ prices indicate a _______________ image for high-end retailers, strengthening their luxury branding

higher/ prestigious

In the buying process, many business marketers find it helpful to segment customers and prospective customers on the basis of __________________.

how they buy

Unwritten guarantee that the good or service is fit for the purpose for which it was sold

implied warrant

Establishment is owned by an individual or a group §not operated as part of a larger retail network.

independent retailer

____________________ are wholesalers and channel members that buy and take title to products.

industrial distributors

Helps consumers make proper product selections; Lowers a consumer's cognitive dissonance after the purchase.

information labelling

use technology or brainpower directed at a customer's assets (Insurance or Consulting)

information processing

_______________: Identifies the brand of a part that makes up the product

ingredient branding

_________________: Product perceived as new by a potential adopter

innovation

___________ are eager to try new ideas and products, almost as an obsession. §The first 2.5 percent who adopt the product. §Many are obsessive about trying new ideas and products.

innovators

________________________: Production and consumption are simultaneous, meaning the consumer takes part in production.

inseparability

________________________: Inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed.

intangibility

Product _________: Groups of closely related product items

lines

•Transportation and storage of assets and their sorting, accumulation, consolidation, and/or allocation of assets

logistical functions

provide performance similar to competing brands at a lower price.

lower-priced products

•Overall manufacturing output is measured in terms of quality, delivery speed, and flexibility, all of which tie to profitability. •Depending on the product, supply chain managers may choose between a lean or agile supply chain strategy. •In a lean supply chain, products are built before demand occurs, but managers attempt to reduce as much waste as possible. Agile supply chains prioritize customer responsiveness more than waste reduction. They wait for demand to occur and use communication and flexibility to fill that demand quickly •Ensures that firms in the supply chain have the needed resources to -manufacture with flexibility. -move products through a production process. •Intends to improve overall manufacturing output by leveraging the capabilities held by multiple members of the supply chain

manufacturing flow management

People or organizations with needs or wants and the ability and willingness to buy

market

Process of planning, collecting, and analyzing data relevant to a marketing decision. Links the consumer, customer, and publix to the market through information. Provides data on the effectiveness of a marketing mix and insights for necessary changes. It is the main data source for management information systems.

market research

Subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

market segment

-Facilitate the movement of products and services from the manufacturer to producers, resellers, governments, institutions, and retailers -Takes title to goods, stores them, and later ships them

market wholesaler

Discuss factors affecting channel choice:

market, product, producer, complexity, price, customization, standardization, and life cycle

Emerging strategy: ___________________ customization: Strategy that uses technology to deliver customized services on a __________________ basis (starbucks)

mass_

Requires firms to link seamlessly to those outsiders that provide goods and services to them

material and service supplier integration

•stage begins when sales increase at a decreasing rate and the market approaches saturation. This is normally the longest stage of the PLC. •Annual models may appear during the maturity stage for shopping and specialty products. Product lines are lengthened to appeal to additional market segments. •Service and repair help manufacturers distinguish their products from others. •Niche marketers that target narrow, well-defined segments of a market emerge. •Sales increase at a decreasing rate •Saturated markets •Annual models appear •Lengthened product lines •Service and repair assume important roles •Heavy promotions to consumers and dealers •Marginal competitors drop out

maturity stage

Occurs when there is a difference between the information desired and the information provided

measurement error

Reflects the idea that performance assessments be transparent, measurable, and should assess the performance of the supply chain as a whole

measurement integration

Succeeding in some countries often requires companies to develop products that _______________.____________________________________.

meet the unique needs of these populations

directs to people's minds (Theater)

mental stimulus processing

•to employ highly detailed data analytics •Shop-at-home television networks •Online retailing (e-tailing)—allows customers to shop over the Internet

microtargeting

Product ______________ (or ______________): Refers to the number of product lines an organization offers

mix width; breadth

Product _________: All products that an organization sells

mixes

Mobile surveys account for 30 percent of interview responses. •It is designed to fit into brief cracks of time •New and better apps make the survey experience easier and more intuitive. •Mobile research has expanded into both quantitative and qualitative research. •With today's mobile qualitative research tools, ethnography shop- alongs can be completely self-guided. As screen size decreases, so do survey completion rates. 76 percent of surveys are completed on desktop, 70 percent on tablet, and 59 percent on mobile phone

mobile research

marketers of baby products and life insurance appeal to consumers' emotional motives -namely, to care for their loved ones. (mercedes benz = status v. subaru = safety.)

motives

______________________: Chooses two or more well-defined market segments and develops a distinct marketing mix for each

multi segment targeting strategy

Data previously collected for any purpose other than the one at hand. Secondary info originating within the company includes the company website, annual reports, reports to stockholders, blogs, product testing results, perhaps made available to the news media, YouTube videos, social media posts, and house periodicals composed by the company's personnel for communication to employees, customers, or others. source: internal corporate information, governmental agencies, trade and industry associations, business periodicals, news media Advantages = save time and money; aids in formulating the problem statement; suggests research methods and data to solve problems; pinpoint the kinds of people to approach; serve as a basis of comparison for other data. Disadvantage - may not give adequate detailed info; quality and accuracy of data may pose a problem/

secondary data

technological interfaces that allow customers

self-service technologies (SST)

__________________ that connects physical objects to decision-making analytics via the Internet is beginning to emerge.

sensory equipment (IoT)

__________________ quality is more difficult to define and measure than is the quality of tangible goods. Business executives rank the improvement of ____________________ quality as one of their most critical challenges.

service

The marketing process is the same for all types of products, whether they are goods or services. •Many manufacturing firms can point to service as a major factor in their success. •Services have some unique characteristics that distinguish them from goods, and marketing strategies need to be adjusted for these characteristics. •Result of applying human or mechanical efforts to people or objects •Involve a deed, a performance, or an effort that cannot be physically possessed •Service-oriented industries that contribute to the U.S. economy -Technology, financial services, health care, and retail -Influences 80% of US economic output -Example: Online money transfer company that allows consumers to send money directly to bank accounts in several countries around the world.

services

Understanding how target consumers behave in different channels and formats §Information is leveraged to generate sales or other positive outcomes §carefully designed to deliver balanced benefits to all stakeholders—brands, retailers, and shoppers.

shopper marketing

Require comparison shopping (More expensive and found in fewer stores) Homogenous shopping products - washers, dryers and televisions Heterogeneous shopping products - furniture, clothing, housing. And universities

shopping

Highly integrated supply chains (those that are successful in achieving many or all of these types of integration) have been shown to be better at:

shown to be better at satisfying customers, managing costs, delivering high-quality products, enhancing productivity, and utilizing company or business unit assets, all of which translate into greater profitability for the firms and their partners working together in the supply chain.

To work together on development, rather than sequentially, is a process called _____________________________.

simultaneous product development_

•allows multiple retailers to sell products to customers through social media sites. Many customers use these websites to find product information or get information on special deals

social shopping

Particular items for which consumers search extensively and are reluctant to accept substitutes Fine watches, expensive automobiles, and gourmet restaurants

specialty

specialized in a type of merchandise

specialty store

__________________ services —more efficient and cost less

standardized

Product lines allow firms to standardize components, thus reducing manufacturing and inventory costs.

standardized components

__________________: Cooperative agreement between business firms to use the other's already established distribution channel

strategic channel alliances

large, departmentalized, self-service retailer

supermarket

Group of services that support or enhance the core service

supplementary service

•The management of supplier relationships is a key step toward ensuring that firms' manufacturing resources are utilized to their maximum potential. •It is clear, then, that the supplier relationship management process has a direct impact on each supply chain member's bottom-line financial performance. •Supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers •Highly dependent on supplier relationships for flexibility •Provides structural support for developing and maintaining relationships with suppliers

supplier relationship management

•Includes all of the companies involved in the upstream and downstream flow of products, services, finances, and information, extending from initial suppliers (the point of origin) to the ultimate customer (the point of consumption). Many companies are turning to supply chain management for competitive advantage

supply chain

__________________________: Operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain.

supply chain agility

can interpret big data and have great potential for improving supply chain operations. -Advanced technology enabled by big data helps improve supply chain operations.

supply chain analytics

___________________________: Coordinates and integrate 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.

supply chain management

In a ___________________, the researcher interacts with people to obtain facts, opinions, and attitudes.

survey research

segment must be large enough to warrant developing and maintaining a special marketing mix (ex. Home banking failed in 1980s due to lack of people owning personal computers. This concept is now thriving)

sustainability

successful segmentation produces markets that meet

sustainability, identifiability and measurement accessibility, responsiveness

include increased store traffic, higher sales of a specific item, developing a more upscale image, and creating heightened public awareness of the retail operation and its products or services.

tactical retail goals

A product is everything, both favorable and unfavorable, that a person receives in an exchange, including:

tangible goods, services, ideas

_________________ is the group of people or organizations for which an organization designs, implements, and maintains a marketing mix to meet the needs of that group, resulting in mutually satisfying exchanges.

target market

Creation and maintenance of information technology systems that connect managers across and through the firms in the supply chain

technology and planning integration

the use of the telephone to sell directly to consumers

telemarketing

•Limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. •Allows management to evaluate alternative strategies and to assess how well the various aspects of the marketing mix fit together. •Often takes one year or more. •Can cost over $1 million. •Exposes the new product and its marketing mix to competitors before its introduction. •Competitors can "jam" testing programs with their own promotions by introducing their own sales, promotion, pricing, or advertising campaign. •Despite the cost, many firms believe it is better to fail in a test market than in a national introduction.

test marketing

product class

the objective is to position the product as being associated with a particular category of products

-Increase in customer satisfaction gained by making a good or service available at the appropriate time -For example, a transport company hired by the producer physically moves boxes of cereal to a store near the customers on time.

time utility

Marketing channel members facilitate distribution by providing specialization and division of labor, overcoming discrepancies, and providing contact efficiencies. These channel members create _________, ___________, __________, and ______________ utility.

time, place, form, exchange

exclusive rights to use a brand or part of a brand. Service mark: trademark fo a service.

trademark

•Contacting and communicating with prospective buyers to explain the features, advantages, and benefits

transactional functions

Essentially mass market philosophy - viewing the market as one big market and using one marketing mix. First firms in an industry sometimes use that strategy. With no competition, the firm may not need to tailor marketing mixes to the preferences of hte market segments. Marketers of commodity products, such as flour and sugar, are less likely to use this strategy Tooo often, it emerges by default rather than by design, reflecting a failure to consider the advantages of a segmented approach. Small stores in small towns with no competition may offer one marketing mix and be successful. The result is often sterile unimaginative product offerings that have little appeal to anyone 9one version of coca cola)

undfifferntiated targeting strategy

_______________________: Views the market as one big market with no individual segments and thus uses a single marketing mix

undifferntiated targeting strategy

Segmentation by ___________ enables marketers to focus efforts on heavy users or to develop multiple marketing mixes aimed at different segments. example : snack foods - healthy, guilty-pleasure, weight watcher

usage rate

stressing uses or applications can be an effective means of positioning a product with buyers.

use or application

The development stage can last a long time and thus be ___________________.

very expensive

•Advances in computer technology have enabled researchers to simulate an actual retail store environment on a computer screen. Depending on the type of simulation, a shopper can "pick up" a package by touching its image on the monitor and rotate it to examine all sides. Virtual shopping, which can speed product development time and lower costs, is always welcomed by manufacturers.

virtual shopping

Confirmation of the quality or performance of a good or service •Manufacturer that promises a full warranty must meet certain minimum standards −Includes repair of any defects and replacement of the merchandise or a full refund

warranty

§ The most prominent difference separating intermediaries is whether they ____________________ product. Taking title means they own the merchandise and control the terms of the sale.

whether they take title to the

_____________—Assortment of products offered

width

§Opinion leaders discuss new products with their followers and with other opinion leaders. §Within and across groups, including social media and viral communication, speeds diffusion.

word of mouth communication

What two strategic tasks precede tactical decisions?

§Defining a target market §Choosing the retailing mix

Explain global issues in product development:

•A firm that starts with a global strategy is able to better develop products that are marketable worldwide. •In many multinational corporations, every product is developed for potential worldwide distribution, and unique market requirements are built in whenever possible. Globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective

What are seven characteristics of successful products?

•A history of listening carefully to customers •An obsession with producing the best product possible •A vision of what the market will be like in the future •Strong leadership •A commitment to new-product development •A project-based team approach to new-product development •Getting every aspect of the product development process right

§ Describe marketing channels and members of marketing channels:

•A marketing channel can be viewed as a canal or pipeline through which products, their ownership, communication, financing and payment, and accompanying risk flow to the consumer. •Business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain. •Marketing channels represent the place or distribution element of the marketing mix, in that they provide a route for company products and services to flow to the consumer. •Provide a route for company products and services to flow to the customer •Facilitate distribution via channel members

Discuss supply chain analytics and technology:

•Advancements in data and technology are beginning to impact the effectiveness and efficiency of the supply chain. •Supply chain analytics: Data analyses that support the improved design and management of the supply chain

Explain the benefits of product lines:

•Advertising economics: Product lines provide economies of scale in advertising. •Package uniformity: Packages in the product line may have a common look but continue to maintain their individual identities. •Standardized components: Product lines allow firms to standardize components, thus reducing manufacturing and inventory costs. •Efficient sales and distribution: A product line enables a full range of choices to customers, which results in better distribution and retail coverage. •Equivalent quality: All products in a line are perceived as having similar quality.

Describe how to best address retail product and service failure

•All retailers inevitably disappoint a subset of their customers. •Best retailers have plans in place to recover and benefit from lapses in service. -Actions that might be taken include: §Notifying customers in advance of stockouts §Implementing liberal return policies §Issuing product recalls in conjunction with promotional offers

Describe benefits of an effectively managed supply chain:

•As well-managed supply chains are able to provide better value to customers with only marginal incremental expenditure on company assets, best-in-class supply chain companies, such as air conditioner manufacturer Lennox International, are becoming significantly more valuable investors. •Provides better value to customers with only marginal incremental expenditure on company assets.

what are other trends in retailing?

•Big data analytics -Process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior •Beacons -Sends out connecting signals to customers' smartphones and tablets in order to bring them into a retail store or improve their shopping experience •Facial recognition and biometric sensors

Explain the three categories for pricing objectives:

•Marketers should set performance objectives when pricing each service. •A firm may need to use more than one type of pricing objective. -Revenue-oriented pricing §Focuses on maximizing the surplus of income over costs -Operations-oriented pricing §Seeks to match supply and demand by varying price -Patronage-oriented pricing §Tries to maximize the number of customers by varying price

Explain the impact of the internet on research:

•Most American marketing research companies conduct some form of online research •Online survey research has replaced computer-assisted telephone interviewing as the most popular mode of data collection −Internet data collection is rated as having the greatest potential for further growth.

Explain the service mix, and service strategy decisions:

•Most service organizations market more than one service. Therefore, each part of the service mix should make a different contribution to achieving a firm's goals. •Each organization's service mix represents a set of opportunities, risks, and challenges. •Service strategy decisions -Introduction of what new services to which target market -Maintenance of existing services -Elimination of services

New-product ideas that survive the initial screening process move to the business analysis stage. Explain this process:

•New-product ideas that survive the initial screening process move to the business analysis stage •Preliminary figures for demand, cost, sales, and profitability are calculated. •The newness of the product, the size of the market, and the nature of the competition all affect the accuracy of revenue projections. •Analyzing overall economic trends and their impact on estimated sales is especially important in product categories that are sensitive to fluctuations in the business cycle.

Describe reasons for product failure:

•No discernible benefit compared to existing products •Poor match between product features and customer desires •Overestimation of market size •Incorrect targeting or positioning •Too high or too low prices •Inadequate distribution •Poor promotion Simply an inferior product

What functions are carried out by nonprofits?

•Often, nonprofit organizations that carry out these functions do not realize they are engaged in marketing: -Identifying desired customers -Specifying objectives explicitly or implicitly -Developing, managing, and eliminating programs and services -Deciding on prices -Scheduling events or programs Communicating their availability

Describe digital channels and m-commerce:

•Pathways for moving product and information toward customers such that they can be sent and/or received with electronic devices, such as computers, smartphones, tablets, or video game consoles •M-commerce -In response to the growth of digital channels, customers are turning in droves to M-commerce, whereby a mobile device is used to assess, compare, and/or buy products. -Ability to conduct commerce using a mobile device for buying or selling goods or services -Enables consumers using mobile devices to connect to the Internet and shop

What are the "4 P's" of marketing?

•Product (or the service) •Place •Price •Promotion

Discuss trends and emerging distribution structures:

•Rapid changes in technology and communication resulting in new, experimental distribution methods and channel structures •Structures that involve renting items that have typically only been sold to end consumers -Ex. Rent the Runway -Ex. EquipmentShare digital marketplaces, fashion flash sale sites, subscription services

Discuss elements of evaluating service quality:

•Reliability -Ability to perform a service dependably, accurately, and consistently •Responsiveness -Ability to provide prompt service. Ex. 24/7 Call Center •Assurance -Knowledge and courtesy of employees and their ability to convey trust. Ex. Skilled/Trained Employees •Empathy -Caring, individualized attention to customers •Tangibles - Physical evidence of the service

What are alternatives to test marketing?

•Scanner-based research •Simulated (laboratory) market testing •Online test marketing: -Advertising and other promotional materials for several products are shown to members of the product's target market. -These people are taken to a mock or real store, where their purchases are recorded. -The Internet offers a fast, cost-effective way to conduct test marketing.

Describe the product (service) strategy:

•Service as a process: •Core and supplementary service products •Customization/Standardization The service mix

Discuss retailing decision for services, and what service distribution focuses on:

•Service industries are customer oriented, and service quality is a priority. -Service distribution focuses on: §Minimizing wait times §Managing service capacity §Improving service delivery §Establishing channel-wide network coherence

Explain internal marketing for services, and the connection to customers:

•Services are performances, so the quality of a firm's employees is an important component in building long-term relationships with customers. •To satisfy employees, companies have designed and instituted a wide variety of programs such as flextime, on-site day care, and concierge services. •Treating employees as customers and developing systems and benefits that satisfy their needs •Critical in service firms -Employees deliver the brand promise directly to customers

Discuss retail channel omnification:

•Showrooming and data analytics have led to the development of virtual reality apps and retail channel omnification. •Retail channel omnification is the reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs.

Explain the development phase:

•Stage in the product development process that includes: -Developing a prototype -Sketching a marketing strategy -Deciding on packaging, branding, and labeling -Mapping out preliminary promotion, price, and distribution strategy -Examining manufacturing feasibility

Explain supply chain orientation and integration:

•Strategic Advantage - Walmart Example -Retailers realize higher-than-average return on assets -Difficult for competitors to duplicate §Walmart - critical factor to success is its information and supply chain mgmt systems. §Competitors recognize this advantage and have difficulty achieving the same level of performance as Walmart

Describe commercialization, and what decisions to market a product involve:

•The best-managed global firms leverage their global networks by sharing best practices, knowledge, and technology. •The final stage in the new-product development process is commercialization. •Decision to market a product involves: -Ordering production materials and equipment -Starting production -Building inventories -Shipping the product to field distribution points -Training the sales force -Announcing the product to the trade -Advertising to potential customers

What implications do the product life cycle stage have on marketers?

•The diffusion process and the PLC concept all have implications. •The new-product development process is sometimes illustrated. •The message may need to change over time. •A message developed for and targeted toward early adopters will not be perceived similarly.

Discuss global issues in services marketing:

•The international marketing of services is a major part of global business, and the United States has become the world's largest exporter of services. •Competition in international services is increasing rapidly. •Many U.S. service industries have been able to enter the global marketplace because of competitive advantages. •To be successful in the global marketplace, firms must: -Determine the nature of their core product -Design marketing mix that reflects each country's cultural, technological, and political environment

Discuss how service is a process:

•Two things get processed in service organizations: people and objects. •In some cases, the process is physical, while in others the process is intangible. •In many service industries, the core service becomes a commodity product as competition increases. As a result, supplementary services are used to create competitive advantage.

Visualizing and exerting control over the entire supply chain allows managers to:

•balance supply and demand needs. •maximize strengths. •increase efficiencies at each level of the process. •ensure that the right product is in the right place at the right time and the right quantities

describe the importance of retailing

•has enhanced the quality of our daily lives. •It provides millions of goods and services that mirror the needs and styles of U.S. society. •The retailing industry is one of the largest employers. •It affects all of us directly or indirectly.

What are unique aspects of nonprofits?

-Indirect payment through taxes is common to marketers of free services. -Separation between payers and users—Services are used by those who are relatively poor and paid for by those who are better off financially. -Below-cost pricing—Example is University tuition §Virtually all private and public colleges and universities price their services below full cost. -Free services include libraries, fire protection, and police protection. •Although examples of separation between payers and users can be found in the profit sector (such as insurance claims), the practice is much less prevalent. •Many nonprofit organizations (federal agencies) are prohibited from advertising or do not have the resources to retain marketing expertise. •Nonprofit organizations seek to redistribute income and strive to allocate resources fairly among individuals or households or across geographic or political boundaries. •In many public assistance programs, about half the people who are eligible do not participate.

Describe pricing decisions for nonprofits:

-Pricing objective is to defray costs rather than to achieve a profit Nonfinancial prices—Consumers must absorb nonmonetary costs such as time, embarrassment, and effort

Explain promotion decisions for nonprofits:

-Professional volunteers—donates services in exchange for potential long-term benefits -Sales promotion activities—use of existing services to draw attention -Public service advertising (PSA)—promotes a federal, state, or local government

aspects of intangibility

-Search quality: Can be easily assessed before purchase §Example: Color of a vehicle -Experience quality: Can be assessed only after use. §Example: Dinner at a restaurant -Credence quality: Can be difficult to assess even after purchase as customers lack necessary knowledge or experience Example: Medical service

What are objectives of nonprofits?

-To generate enough funds to cover expenses -To provide equitable, effective, and efficient services

Explain individual branding:

-Using different brand names for different products -Companies use individual brands when their products vary greatly in use or performance.

What are the "6 P's" of the retailing mix?

Product •The first element in the retailing mix is the product offering, also called the product assortment or merchandise mix. •Many online retailers purposely focus on single product line niches that could never attract enough foot traffic to support a traditional brick-and-mortar store. Promotion •The goal of retail promotion strategy is to position the store in consumers' minds. Ads, special events, promotions, and even grand openings are aimed at specific target markets. •Retailers' advertising is carried out mostly at the local level by providing store information, such as location, merchandise, hours, prices, and sales. In contrast, national retail advertising focuses on image. •Promotion Strategy includes −Advertising −Public relations and publicity −Sales promotion •Risk −Brand cannibalization: Reduction of sales for one brand as the result of the introduction of a new product Place •Factors to be considered while choosing a location -Economic growth potential -Amount of competition -Geography •Stores in isolated locations must become destination stores in order to be successful •The location of a store will affect its future growth and profitability. •While choosing a location, the retailer is making a large commitment of resources that can reduce its future flexibility. •Factors to be considered when identifying a specific site include: -neighborhood socioeconomic characteristics -traffic flows -land costs -zoning regulations -public transportation -visibility of the site -Parking -entrance and exit locations -Accessibility safety and security. Price •Ultimate goal is to sell products to consumers •Based on the cost of merchandise •Pricing is efficient and timely buying •"Value-based pricing"—focuses on the value of the product to the customer •Price is a key element in a retail store's positioning strategy Presentation •The presentation of a retail store helps determine the store's image and positioning in consumers' minds. -For example, positioning as an upscale store would require a lavish or sophisticated presentation. •The main element of presentation is its atmosphere (the overall impression conveyed by a store's physical layout, décor, and surroundings). -Employee type and density -Merchandise type and density -Fixture type and density -Sound, odors, and visual factors -Layout of the store Personnel •Salespeople are trained in the following selling techniques: -Trading up—Persuading customers to buy a higher-priced item than they originally intended to buy -Suggestion selling—Seeking to broaden customers' original purchases with related items •Sales personnel provide their customers with the amount of service prescribed by the retail strategy of the store

Describe planning the research design:

Research questions that must be answered how and when to gather data; the way to analyze data. Project budget is finalized after the research design is approved.

Explain the steps of segmenting a market:

Selecting a market or product category for study (ex. New market, existing market, related market) Choosing a basis or bases for segmentation (requires insight, creativity and market knowledge. No scientific procedure) Selecting segmentation descriptors (demographics, usage rate) Profiling and analyzing segments (size, expected growth, long term sales potential, brand loyalty) Selecting markets Designing, implementing, and maintaining appropriate marketing mixes

•represents the full-scale launch of a new product. •During the introductory stage, sales normally increase slowly. Marketing costs are high due to higher dealer margins required to obtain adequate distribution and the cost of consumer incentives to try a product. •High failure rates •Little competition •Frequent product modification •Limited distribution High marketing and production costs •Sales increase slowly •Profits negative •Communication challenge is to stimulate primary demand -Promotion strategy focuses on developing product awareness and informing consumers about the product's potential benefits. It would require intensive personal selling. • Promotion focuses on awareness and information -Promotion of convenience products often requires heavy consumer sampling and couponing. -Shopping and specialty products demand educational advertising and personal selling to the final consumer.

introductory stage

Product _________: Specific versions of a product that can be designated as a distinct offering among an organization's products

items

______________________: The major labeling concern is the proper translation of ingredient, promotional, and instructional information on labels.

labeling

Some product categories may never be adopted by 100 percent of the population. §The final 16 percent to adopt. §By the time laggards adopt an innovation, it has probably been outmoded. §Marketers typically ignore laggards, who do not seem to be motivated by promotion and personal selling.

laggards

They depend mainly on word-of-mouth communication rather than on the mass media. §The next 34 percent to adopt. §They adopt a new product because most of their friends have already adopted it.

late majority

__ segmentation divides people into groups according to the way they spend their time, the importance of the things around them, their beliefs, and the socioeconomic characteristics such as income and education (green consumer, health conscious, traveler)

lifestyle

Any warranty that does not live up to this tough prescription must be "conspicuously" promoted

limited warranty

Explain how a CRM program can provide valuable research insights:

•CRM is described as a closed-looped system that builds relationships with customers. CRM is a continuous and circular system with no defined starting or end point. -The CRM cycle is initiated by identifying customer relationships within the organization. -Next, the company must understand the interaction each customer has with the company by building on the initial information collected and developing a useful database. -Based on the knowledge of the customer and his/her interactions with the company, the company can then acquire and capture all relevant information about the customer. -Technology plays a critical part in a CRM system. Technology is used to store and integrate customer data. -Not all customers are equally important to a business. Consequently, the company must use data mining to determine its profitable and unprofitable customer segments. -Once the customer data are analyzed, they are leveraged. Data are transformed into information and disseminated throughout the organization—to the right person in the right place at the right time.

Discuss promotion for services:

•Consumers and business users have more trouble evaluating services than goods, because services are less tangible. •In turn, marketers have more trouble promoting intangible services than tangible goods. -Stressing tangible cues— To make their intangible services more tangible, hotels turn down the bedcovers and put mints on the pillows. -Using personal information sources—A personal information source is someone consumers are familiar with (such as a celebrity) or someone they admire or can relate to personally. -Creating a strong organizational image—One way to create an image is to manage the evidence, including the physical environment of the service facility, the appearance of the service employees, and the tangible items associated with a service (such as stationery, bills, and business cards)

Discuss place for services:

•Convenience •Number of outlets •Direct vs. Indirect distribution •Location - relation between market and distribution strategy •Scheduling - time-dependent service providers

Describe analyzing the data:

•Data are organized using techniques such as one-way frequency counts, cross-tabulations, and sophisticated statistical analysis. -One-way frequency tables record the responses to a question and provide a general picture of the study's results.

Discuss price for services:

•Defining the unit of service consumption •Determining if multiple elements are to be bundled or priced separately •Three categories of pricing objectives -Revenue-oriented pricing (Ex. Make profit with more sales) -Operations-oriented pricing (Ex. Fill hotel rooms or theater seats) -Patronage-oriented pricing (Ex. Maximize customers using service, such as senior citizen pricing or student discount)

explain when market research should be conducted:

•Depends on managers' perceptions of its quality, price, and timing •When the expected value of research information exceeds the cost of generating the information •When managers have several possible solutions to a problem, they should not instinctively call for marketing research. The first decision to make is whether to conduct marketing research at all.

Explain nonprofit marketing:

•Effort by nonprofit organizations to bring about mutually exchanges with target markets •Nonprofit organizations account for more than 20 percent of the economic activity in the United States. -Nonprofit organization: Exists to achieve some goal other than the usual business goals of profit, market share, or return on investment §Governments, private museums, theatres, schools, and churches

Describe retailers, and how they simplify distribution:

•Firms in the channel that sell directly to customers as their primary function •Simplify distribution by -reducing the number of transactions required by consumers. -making an assortment of goods available in one location, providing a variety of shopping options. -Goal is to enhance the customer experience

Explain the screening process for new ideas

•First filter in the product development process after new ideas generated. -Eliminates ideas that are inconsistent with the organization's new-product strategy or are inappropriate for some other reason.

Describe the functioning of packaging:

•Hold contents together and protect goods as they move through the distribution channel •Functions: -Contains and protects products -Promotes products -Facilitates storage, use, and convenience of products -Facilitates recycling and reduces environmental damage

Explain sustainable supply chain management:

•In response to the need for firms to both reduce costs and act as leaders in protecting the natural environment, many are adopting sustainable supply chain management principles as a key part of their supply chain strategy. •By enacting sustainable supply chain management principles, companies can simultaneously generate cost savings, protect the Earth's natural resources, and ensure that socially responsible business practices are enacted. •Embraces the need for optimizing social and environmental costs in addition to financial costs •The organization both better addresses current business needs and develops long-term initiatives that allow it to mitigate risks and avail itself of future opportunities in ways that preserve resources for future generations and ensure long-term viability.

Describe the types, functions and activities of channel intermediaries:

•Intermediaries in a channel negotiate with one another, facilitate the change of ownership between buyers and sellers, and physically move products from the manufacturer to the final consumer. •The most prominent difference separating intermediaries is whether they take title to the product. Taking title means they own the merchandise and control the terms of the sale.

List sources of competitive intelligence

•Internet •Company salespeople •Industry experts •CI consultants •Government agencies •UCC filings •Suppliers •Periodicals •Yellow Pages •Industry Trade shows

How do manufacturers and retailers use shopper analytics?

•Manufacturers and retailers use shopper analytics to understand customer shopping attitudes, emotions, and behaviors -Helps fine-tune, develop, or change market offerings -forces managers to coordinate better, measure more, think more creatively, and move faster.