Marketing - Exam 3

independent retailer corporate chain franchising

(form of ownership) - independent business owned by an individual; owner is boss; can offer convenience, personal service, and lifestyle compatibility - multiple outlets under common ownership (Macy's owns other outlets); centralization in decision making and purchasing; advantages in dealing with manufacturers; buying power = lower prices and multiple outlets - an individual or firm (franchisee) contracts with parent company (franchisor) to set up business or retail outlet; offers opportunity for people to enter a well-known, established business; organization reduces cost of expansion but loses some control

blockchain technology and vendor-managed inventory (not on vocab)

- A decentralized digital system for recording, documenting, and facilitating transactions across all participants in a supply chain. - An inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items.

hypermarket vs supercenter

- A form of scrambled merchandising, which consists of a large store (more than 200,000 square feet) that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location. - variation of the hypermarket which combines a typical merchandise store with a full-sized grocery store

Percentage of Sales Budgeting Competitive parity budgeting All-you-can-afford budgeting Objective and task budgeting

- Allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold. - Allocating funds to promotion by matching the competitor's absolute level of spending or the proportion per point of market share. Also called matching competitors or share of market - Allocating funds to promotion only after all other budget items are covered - Allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish those objectives; and (3) determines the promotion cost of performing those tasks.

full-service agency limited-service agency In-house agency

- An advertising agency that provides the most complete range of services, including marketing research, media selection, copy development, artwork, and production. - An advertising agency that specializes in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services. - Consists of the company's own advertising staff, who may provide full services or a limited range of services.

Cookies ** First-party cookies Third-party cookies Behavioral Targeting **

- Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website. - record a user's visits and store and retrieve info in future; contain visitor info like product preferences, personal data, passwords, CCN; contribute to satisfying content - tracked a user's search patterns; pop-up ads, behavioral targeting - Uses information provided by cookies to direct online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising.

Form of ownership Level of service Merchandise line

- Distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet. - Describes the degree of service provided to the customer from three types of retailers: self-, limited-, and full-service. - Describes how many different types of products a store carries and in what assortment.

What are the different types of sales roles? (7)

- Inside sales: junior sales, inside org, cultivate current customers; maybe upsell - Outside sales: client site, current customers (upsell); - sales support: behind the scenes, making stories, data; allows salespeople to be effective - Client services: customer service, happy customer, resolve issues, loyal customers - lead gen: generate potential leads behind scenes, phone #"s /emails - business dev: similar to lead gen, new business, follow up on leads, prospects into clients - account managers: strategic rather than transactional, analyzing client business, specific to account; point person on account; partners/consultant

What are all the types of intermediaries? (6)

- Middleman: Any intermediary between the manufacturer and end-user markets - Agent/broker: Any intermediary with legal authority to act on behalf of the manufacturer - Wholesaler: An intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets - Retailer: an intermediary who sells to consumers - Distributor: An imprecise term, usually used to describe intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on; a more common term in business markets but may also be used to refer to wholesalers - Dealer: A more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth

Informercials rich media

- Program-length (30-minute) advertisements that take an educational approach to communication with potential customers. - interactive ads that have drop-down menus, built-in games, or search engines to engage viewers

What's the difference between consumer-oriented sales promotions and trade-oriented sales promotions?

- Sales tools used to support a company's advertising and personal selling directed to ultimate consumers. Also called consumer promotions. - Sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.

four business practices that lead to success

- Strategy: making right tough choices on where to focus on how to win - Execution: consistently creating and executing tactics that support strategy - Structure: building and maintaining a fas, flexible, and flat org that puts company goals first - Culture: creating a performance-oriented culture that promotes a sense of purpose

Promotional Mix Integrated Marketing Communications

- The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product. - The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences.

personalization permission marketing

- The consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences. - The solicitation of a consumer's consent (called "opt-in") to receive e-mail and advertising based on personal data supplied by the consumer.

Reach ** Rating Frequency** Gross Rating Points (GRPs) ** Cost per thousand (CPM) **

- The number of different people or households exposed to an advertisement. - The percentage of households in a market that are tuned to a particular TV show or radio station - The average number of times a person in the target audience is exposed to a message or an advertisement. - A reference number used by advertisers that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency. - The cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000).

Direct Orders Lead Generation Traffic Generation

- The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. - The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information. - The outcome of a direct marketing offer designed to motivate people to visit a business

Depth of product line Breadth of product line

- The store carries a large assortment of each product item. -- limited and single line stores are often called specialty outlets - The variety of different product items a store carries. -- broad product line and limited depth are general merchandise stores

Personal selling Sales Management Relationship selling Customer relationship management

- The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision. - Planning the selling program and implementing and evaluating the personal selling effort of the firm. - The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. - first learning about customer needs and wants then tailoring solutions to customer problems as a means to customer value creation; designed with the goal of improving business relationships w customers, creating value

Social commerce and subscription commerce

- The use of social networks for browsing and buying. - The payment of a fee to have products and services delivered on a recurring schedule.

Logistics and logistics management and the three emphasized elements

- Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost - practice of organizing the cost-effective flow or raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements 1. flow: decisions needed to move a product from the source of raw materials to consumption 2. cost effective 3. customer service: satisfying customer requirements

What do the terms "logistics" and "supply chain" mean and how can they add value to marketing? (4)

- Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. - The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users. 1. Understand customer 2. Understand supply chain 3. Harmonize supply chain with marketing strategy customer service: satisfying time, dependability, communication, convenience

interactive marketing choiceboard collaborative filtering (not on vocab)

- Two-way buyer-seller electronic communication in which the buyer controls the kind and amount of information received from the seller; characterized by sophisticated choiceboard and personalization systems that transform information from customers into responses customized to their individual needs - An interactive, digitally enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options. - A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.

web communities chatbots bots

- Websites that allow people to congregate online and exchange views on topics of common interest. - sophisticated computer programs that mimic human conversation using AI - electronic shopping agents or robots that search websites to compare prices and product or service features

trial close assumptive close urgency close ( not on vocab)

- asking prospect to make decision on some aspect of purchase - asking prospect to consider choices concerning delivery, warranty, financing terms under assumption that a sale has been finalized - commit prospect quickly by making reference to timeliness of purchase

marketplace vs digital marketspace

- buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects - digitally enabled environment characterized by face-to-screen exchange relationships and electronic images and offerings marketplace: physical store, static and declining marketspace: online store, dynamic and growing

Sales promotion pros and cons

- coupons: encourage retailer support; consumers delay purchases - deals: reduce consumer risk; consumers delay purchases/reduce perceived value - premiums: consumers like free/reduced-price merch; buy for premium, not product - contests: encourage consumer involvement; require creative or analytical thinking - sweepstakes: get customer to use product and store more often; sales drop after sweepstakes - samples: low risk for consumer; high cost for company - loyalty programs: help create loyalty; high cost for company - point-of-purchase displays: provide goof product visibility; hard to get retailer to allocate high-traffic space - rebates: effective at stimulating demand; easily copied/steal sales from future/reduce perceived value - product placements: positive message in a noncommercial setting; little control over presentation of product

What are the different ways a manufacturer can get its product to consumers? (7)

- direct channels - indirect channels - digital marketing: make products and services available for consumption or use by consumers or organization buyers by combining electronic and traditional intermediaries to create time, place, form, and possession utility - direct to consumer: Allow consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson; direct-mail sales, catalog sales, telemarketing, websites, televised home shopping - multichannel marketing: The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. Sometimes called omnichannel marketing; BOPUS: buy online pick up at store, BORIS: buy online return in store - dual distribution: a firm reaches different buyers by employing two or more different types of channels for the same basic product; - strategic channel alliances: one firm's marketing channel is used to sell another firm's products; popular in global marketing; Starbucks using PepsiCo to sell ready-to-drink products

Buyer turnover Purchase frequency Forgetting Rate types of schedules

- how often new buyers enter the market to buy product - the more frequently the product is purchases, the less repetition required - speed with which buyers forget brand if ad not seen - continuous/steady, flighting/intermittent, pulse/burst

category killers scrambled merchandising intertype competition

- outlets that dominate the market - Offering several unrelated product lines in a single store. - Competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy.

What does it mean to be vertically integrated?

- professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact - can increase level of control for an organization and decrease markup costs, but it takes significant organizational investment and coordination to make it work

self service limited service full service

- requires customers perform many functions during the purchase process; co-creators of value they receive - provide some services but not others; general merchandise stores give customers responsibility for most shopping activities, although salespeople are available in departments - provide many services to their customers; most specialty stores and department stores

Feedback Loop Response Feedback Pretesting Noise (not on vocab)

- response and feedback - impact the message had on the receiver's knowledge, attitudes, or behaviors - sender's interpretation of the response and indicates whether the message was decoded and understood as intended - ensure messages are decoded properly - extraneous factors that can work against effective communication by distorting a message or the feedback received

types of automation

- salesforce automation: The use of various technologies to make the sales function more effective and efficient. - marketing automation: applies systems and technologies, including AI algorithms, to provide insights to salespeople - customer service and support automation: process and technologies that supply customers with info about postsale activities

Online retailing - Intermediaries - Marketplaces - Aggregators

- social shopping options; match consumers with merchants (GroupOn) - self-service sites for online stores - crawl the Web to find deals to list on their own site

Product characteristics - complexity - risk - ancillary services

- technical sophistication of the product and the amount of understanding required to use it - financial, social, physical - degree of service or support required after the sale

lead prospect qualified prospect

- the name of a person who may be a possible customer - a customer who wants or needs the product - an individual who wants the product, can afford to buy it, and is the decision maker

Geographical sales organization Customer sales organization Product sales organization

- the simplest structure, where the United States, or indeed the globe, is first divided into regions and each region is divided into districts or territories; salespeople are assigned to each district - a different salesforce calls on each separate type of buyer or marketing channel -- key account management: The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships. - when specific knowledge is required to sell certain types of products

social selling cold canvassing/calling

- utilize websites and other online things to connect individuals and companies that may be interested in their products or services - salesperson may open a directory, pick a name, and contact them

blog spam buzz (not on vocab)

- web page that serves as a publicly accessible personal journal for an individual or org - Communications that take the form of electronic junk mail or unsolicited e-mail - popular term for marketplace word-of-mouth behavior

Exclusive dealing Tying arrangements Full-line forcing Refusal to deal Resale restrictions (not on vocab)

- when a supplier requires channel members to sell only its products or restricts distributors from selling directly competitive products - supplier requires a distributor purchasing some products to buy others from the supplier; usually in franchising - supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line - refusing to deal with existing channel members - refer to a supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may be sold

Strategic marketing process - planning phase

1. Conduct a SWOT: SITUATION ANALYSIS; environmental scanning -> 5C's -> SWOT 2. Develop market focus, value proposition, goals: SEGMENTATION, TARGETING, POSITIONING 3. Design the marketing program: 4 Ps: PRODUCT, PRICE, PROMOTION, PLACE discovering to satisfying needs

Buyer Requirements (4)

1. Information: important requirement when buyers have limited knowledge or desire specific data about a p/s - in-store displays, demonstrations, personal selling 2. Convenience: can be proximity, driving time, minimum of time and hassle, easy navigation of website 3. Variety: buyer's interest in having numerous competing and complementary items from which to choose; both breadth and depth 4. Pre-postsale: important buying requirement for products such as large household appliances that require delivery, installation, service, and credit (services)

3 summary statements

1. Marketing is far more than advertising, it's all about discovering and satisfying needs for you target market across the 4 Ps 2. The foundation to marketing strategy is creating and maintaining a robust situation analysis, which informs an actions-oriented SWOT analysis 3. The best marketing happens when the 4Ps are executed in a consistent and complementary manner in a way that streamlines the customer journey

Strategic marketing process - overview

1. Planning phase - results: marketing plan 2. Implementation phase - results: results - possible corrective actions 3. Evaluation phase - results: possible corrective actions

Stages of consumer journey

1. Prepurchase - ADVERTISING is more helpful because it informs - sales promo = free trials 2. Purchase stage - importance of PERSONAL SELLING is highest; adv lowest - sales promos helpful - social media - direct marketing 3. Postpurchase stage - personal selling and adv are important - sales promos for repeat - public relations

1. Markup ** 2. Original markup 3. Maintained markup (gross margin) 4. markdown **

1. how much should be added to the cost the retailer paid for a product to reach the final selling price 2. the difference between retailer cost and initial selling price 3. difference between final selling price and retailer cost 4. discounting a product because an adjustment is necessary

What's the process to create an IMC program? (6/2/2)

4 Ws: - Who is the target audience? - What are (1) the promotional objectives, (2) amounts of money that can be budgeted for the promotion program, (3) the kinds o promotion to be used? - Where should the promotion be run? - When should the promotion be run? PLANNING: developing the promotion program - identify target audience - specify objectives - set budget - select promotional tools - design promotion - schedule promotion IMPLEMENTATION: executing the promotion program - pretest promotion - carry out promotion EVALUATION: assessing the promotion program - posttest promotion - make needed changes

how consumers shop online

60% computer 5% phone 6% tablet 29% combination

What is viral marketing and how is it created?

A digitally enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs. 1. marketers can embed a message in the product or service so that customers hardly realized they are passing it along (Hotmail) 2. marketers can make the website content so compelling that viewers want to share it with others 3. marketers can offer incentives (discounts, sweepstakes, free merch)

retail positioning matrix

A matrix that positions retail outlets on two dimensions: breadth of product line and value added, such as location, product reliability, or prestige. - breadth on left axis (narrow-broad), value added on bottom axis (low to high) - top left = walmart, top right = bloomingdale's, bottom left = DSW shoes, bottom right = Tiffany & Co.

publicity

A nonpersonal, indirectly paid presentation of an organization, product, or service.

reverse logistics (not on vocab)

A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.

Advantages and disadvantages of advertising

ADV - attention-getting and communicate specific product benefits - since its paid, can control what it wants to say and whom the message is sent - decide when to send and how often - nonpersonal aspect allows the same message to be sent to all receivers (efficient for large number of people) DIS - significant costs to produce an place - lack of direct feedback

ADV and DIS of Personal selling

ADV - control whom the presentation is made, reducing wasted coverage - can see/hear reaction to message and can modify - very persuasive and can select audience - immediate feedback DIS - different salespeople can mean varied communication/message - high cost; cost-per-contact is most expensive

ADV and DIS of public relations

ADV - credibility; often most credible DIS - difficult to get media cooperation (lack of control)

ADV and DIS of direct marketing

ADV - messages can be prepared quickly - facilitates relationship with customer DIS - decline customer response - databased management is expensive

ADV and DIS of sales promotions

ADV - stimulates sales due to ST nature - can increase store traffic from those who are not store-loyal DIS - gains are temp and sales drop when deal ends - easily abused - can lead to promotion wars - easily duplicated

institutional advertisements (4)

Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service. - advocacy: state position of a company on an issue; or when orgs make a request related to a particular action/behavior - pioneering: used for announcements about what a company is, can do, is located - competitive: promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers - reminder: bring company's name to the attention of the target market again

product advertisements (3)

Advertisements that focus on selling a product or service - pioneering (informational): tell people what product is, what it can do, and where it can be found; INFORM target market, introductory stage - competitive (persuasive): promotes a specific brand's features and benefits; PERSUADE target market -- comparative: shows one brands strength relative to competitors - reminder: reinforce previous knowledge of product; mature phase -- reinforcement: assure current users they made the right choice

What are the benefits and limitations of advertising, sales promotion, and public relations?

Advertising: paid nonpersonal communication by an identified sponsor - provides customers a reason to buy - TV, print, radio, out-of-home, paid search, social Sales promotion: short term incentives meant to initiate a purchase - provides customers an incentive to buy - sampling, rebates, loyalty program, sweepstakes, coupons Public relations: public dissemination of noteworthy corporate events - influences customers via third party influencers - press release, stunts, press conferences, trade shows, challenges, targeted sampling

retailing

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.

What is category management?

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category. - category managers are responsible for every aspect of a specific category in store - endless pursuit of finding the right mix of branded and private label products to drive sales and profit - performance indicators include units/$ per store per week, sales per square foot, same-store sales growth

What is a cross-channel consumer?

An online consumer who shops online but buys offline, or shops offline but buys online.

advertising and the two types

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. - product - institutional

What are the sources of conflict that can arise in marketing channels? (3/2)

Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. 1. vertical: occurs between different levels in a marketing channel - disintermediation: when a channel member bypasses another member and sells or buys products direct. - disagreements over how profit margins are distributed among channel members - manufacturers believe wholesalers or retailers are not giving their products adequate attentions 2. horizontal: occurs between intermediaries at the same level in a marketing channel - manufacturer increases its distribution coverage in a geographic area - dual distribution causes conflict when different types of retailers carry the same brands

What are the elements of the purchase funnel and how can an understanding of the purchase funnel direct you marketing tactics?

Awareness: think about me - Problem recognition, Information search (identify consumer need and create product awareness) - advertising - television, billboards, newspaper, radio Consideration: consider me - Information search, Evaluation of alternatives (educate on benefits and assist in making comparisons) - advertising, personal selling - personal selling, social media, mail email Trial: try me - purchase decision (prompt consumers to purchase) - coupon, free sample, sales promos Loyalty/Repeat: keep me - post purchase assessment (encourage product usage and help them feel good) - advertising

Transactional function (intermediaries)

Buying: purchasing products for resale or as agent for supply of product Selling: contacting potential customers, promoting products, seeking orders Risk Taking: assuming business risks in the ownership of inventory that can become obsolete or deteriorate

Example cases from each chapter

Chapter 15: Channels of dis - Vertical integration: Wallick Communities = much lower price per month and higher margin Ch 16: Retailing - retail merchandising: Bob Evans Ch 17: Interactive/omnichannel marketing - omnichannel revolution = Home Depot app; need something fixed to home improvement inspiration as problem recognition Ch 18: IMC/direct marketing - DM = ensure; segmentation technique, direct to patient and HCP Ch 19: Ad/promo/PR - creative brief = Snickers; satisfying hunger BIG IDEA Ch 21: personal selling/sales manage. - salesforce structure = Bob Evans customer focused approach grouped by Geography

marketing channel

Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

What are the types of sales promotions? (10/4)

Consumer-oriented sales promotions - coupons - deals - premiums - contests - sweepstakes - samples - loyalty programs - point-of-purchase displays - rebates - product placements Trade-oriented sales promotions - allowances - discounts - cooperative advertising - training of salesforces

advertising content and creativity

Content basic information such as the product name, benefits, features, and price Creativity determined by both the originality and appropriateness of the message used to inform and persuade, including visual or auditory presentation - originality: message novelty, unexpectedness, divergence from norm - appropriateness: message relevance and usefulness for the intended recipient

Six reasons consumers shop and buy online

Convenience: websites must be easy to locate/navigate, and images must download fast Choice: both in p/s selection and assistance Customization: digital capabilities that make possible a highly interactive and individualized information and exchange environment Communication: marketer to consumer emails, consumer to marketer b/s requests, consumer to consumer chat rooms/messaging Cost: usually same price or cheaper than retail; dynamic pricing Control: seek info, evaluate alternatives, and make purchase decisions on their own time

What is CRM and what are its benefits?

Customer Relationship Management: software systems that allows businesses to manage their interactions with customers through data analysis - helps businesses prioritize prospects and nurture customer relationships through the selling process - automates and personalizes engagements with prospects

What are the steps in advertising?

DEVELOPING - identifying target audience - specifying advertising objectives - setting the advertising budget - designing the advertisement (content, creativity, appeals) - selecting right media (8) - scheduling the advertising (continuous, flighting, pulse) EXECUTING - pretesting ad (portfolio, jury, theater tests) - carrying out ad (full-service, limited-service, in-house) EVALUATING - posttesting (aided recall, unaided recall, attitude tests, inquiry tests, sales tests - making needed changes

What is the difference between a push vs. pull promotional strategy?

Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product - personal selling and promos to wholesalers Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product. - direct-to-consumer advertising

Future of retailing

Economic evolution - 2008 slowdown began decline for physical store spend - COVID increase unemployment and discount shopping Customer evolution - time-strapped consumers prioritize convenience - COVID = contactless - retailtainment Techn evolution - big data=unprecedented targeting abilities - proximity/beacon tech allows ad based on location of store - extended/augmented reality are combining digital and in-person

What are the types of cross-channel consumers?

Exclusive online consumer - streaming music/shows *Showrooming consumer*: examining products in store and buying them online for a cheaper price - consumer electronics and appliances *Webrooming consumer*: examining products online and buying them in store - cars and fashion Exclusive offline consumer - "premium", luxury handbags and furniture

Facilitating function (intermediaries)

Financing: extending credit to customers Grading: inspecting, testing, or judging products, and assigning them quality grades Marketing information and research: providing information to customers and suppliers, including competitive conditions and trends

What are the different ways that sales forces are structured and what are the pros and cons of each structure?

Geography focused: can get to client but have to be expert on every product Product focused: subject matter experts but not close to all customers Customer focused: customer drives a lot of business, great for clients, salesperson needs to know full scope of products/services

What are some of the key skills that good salespeople possess?

Great salespeople are relationship builders who provide value and help their customers win. Sales is... - encouraging people to buy things that will add value - leveraging data to demonstrate the value - attentive listening - customer focused - in-step with marketing Sales is NOT... - pushing people to spend more money - purely about relationships and smooth talking - all about loud talking - company focused - at odds with marketing

Indirect channels for consumers and business products

Intermediaries are inserted between the producer and consumers and perform numerous channel functions - Producer -> Retailer -> Consumer: most common when retailer is large and can buy in large quantities from a producer or when the cost of inventory makes it too expensive to use a wholesaler - Producer -> Wholesaler -> Retailer -> Consumer: most common for low-cost, low-unit-volume items that are frequently purchased by consumers - Producer -> Agent -> Wholesaler -> Retailer -> Consumer: most indirect; when there are many small manufacturers and many small retailers; agent is used to help coordinate a large supply of product - Producer -> Industrial distributor -> industrial user - Producer -> agent -> industrial user - Producer -> agent > ind distributor -> ind user

Promotional mix along the product life cycle

Intro: to inform - publicity in magazines, advertising, salesforce calling on intermediaries, free samples sales promotion Growth: to persuade - personal selling to intermediaries, advertising to differentiate a product from competing brands Maturity: to remind - reminder advertising, discounts/coupons/events sales promos, limited personal selling, direct-mail reminders Decline: phase out - little money spent on promotion

Publicity tools and the 3 types

Methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost - news release: an announcement regarding changes in the company or product line - news conference: representatives of the media are invited to an informational meeting, and advance materials regarding the content are sent - public service announcement (PSAs): free space or time donated by the media; usually nonprofit

What is omnichannel marketing and how do you implement it?

Omnichannel retailing creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping 1. document cross-channel consumer behavior: consumer journey map 2. employ mutually reinforcing communication and delivery channels 3. monitor and measure performance: marketing attribution

Pros and Cons: Newspapers

PROS - excellent coverage of local markets; placed and changed quickly; ads can be saved; quick consumer response; low cost CONS - ads compete w newspaper features; short life span; poor color in print

Pros and Cons: Directories

PROS - excellent coverage of rural and older seg; long use period; print/digital version available 24/7/365 CONS - public concern over environmental impact of print; print/online versions compete with Google, etc.

Pros and Cons: TV

PROS - extremely large audiences; picture/print/sound/motion for effect; can target specific audiences CONS - high cost to prepare and run; short exposure time; perishable message; difficult to convey complex info

Pros and Cons: Direct mail

PROS - high selectivity of audience; obtain complex info and personalized messages; high-quality CONS - high cost per contact; poor image (junk mail)

Pros and Cons: Outdoor

PROS - low cost; local market focus; high visibility; opportunity for repeat CONS - message must be short and simple; low selectivity; criticized as traffic hazard

Pros and Cons: Radio

PROS - low cost; specific local audience target; place quickly; sound/humor/intimacy effectively CONS - no visual element; short exposure time and perishable message; difficult to convey complex

Pros and Cons: Magazines

PROS - target specific audiences; high-quality color; long life; print ads can be clipped and saved; convey complex info CONS - long time to place ad; relatively high cost; competes for attention with other mag features

Pros and Cons: Internet

PROS - video/audio capabilities; animation; interactive and link to advertiser CONS - can be complicated; advertising fatigue is common

Strategic marketing process - details

Planning 1. SWOT - actions: identify industry trends, competitors, own organization, customers - info: trends for industry and comp; project future sales/exp/profits 2. Market-Product focus and goal setting - actions: set market product goals, target markets, points of difference, position of product - info: market potential studies, market-product gris with targets, perceptual maps and positioning statements 3. Marketing program - actions: develop marketing mix, budget by estimating rev/exp/profits - info: marketing mix; detailed plan for execution Implementation - actions: obtain resources, design marketing org, schedules, execute program - info: time-based agenda, action item list for meeting, organizational charts, marketing research Evaluation - actions: compare results to identify deviations, exploit positive deviations and correct neg - info: tracking reports to measure results, action memos to correct problems/exploit opps

How do you measure and assess advertising effectiveness? (5)

Posttests: Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose. - aided recall: whether previous exposure was through reading, viewing, or listening; NOTED: remember seeing, ASSOCIATED: saw/read any part of ad identifying the product/brand, READ ANY: ready any part of ad's copy, READ MOST: at least half of ad - unaided recall: asking respondents like "what ads do you remember seeing yesterday" without any prompting to determine whether they saw/heard ad - attitude tests: asking questions to measure changes in their attitudes after ad campaign - inquiry tests: offering additional product info, samples, premiums to ad's viewers/readers - sales tests: controlled experiments and consumer purchase tests

Order-Taking salespeople (2) Order-getting salespeople Customer Sales support personnel (3)

Processes routine orders or reorders for products that were already sold by the company. - Outside order takers: visit customers and replenish inventory stocks of resellers - Inside order takers (order/sales clerks): answer simple questions, take orders, complete transactions with customers Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service. Augment the selling effort of order getters by performing a variety of services - missionary salespeople: do not directly solicit orders but rather concentrate on performing promotional activities and introducing new products - sales engineers: specialize in identifying, analyzing, and solving customer problems - team selling: The practice of using an entire team of professionals in selling to and servicing major customers.

Vertical marketing systems

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

What are the five elements of the promotional mix?

Promotional mix is the translation of your positioning to your target market - Public relations: A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services; A nonpersonal, indirectly paid presentation of an organization, product, or service; EARNED, not bought MASS TARGET, LOW CONTROL - advertising: Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. MASS TARGET, HIGHER CONTROL - sales promotion: A short-term inducement of value offered to arouse interest in buying a product or service. MIDDLE TARGET, MIDDLE CONTROL - direct marketing: A promotional alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. CUSTOMIZED TARGET, HIGH CONTROL - personal selling: The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision. CUSTOMIZED TARGET, HIGH CONTROL

What are the elements of the retailing mix?

Retail pricing - drugstores = convenience/promo, 40-50% margin - supermarkets = just-below/promo, 15% below drug, 24-45% margin - mass merchandiser = EDLP, 15% below food, 15-25% margin - wholesaler = wholesale/bulk, 20% below mass, 14-16% Retail Location - jeff bezos quote - Foot Locker designed buildings for low income areas Retail communications - shopper marketing Retail Merchandising - category management: systematic, disciplined approach to managing a product category as a strategic business unit

What are the different types of retail outlets? (6/6)

Retailing is the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use Store Retailing - convenience stores - supermarkets - limited assortment - general merchandise - off-price retailers - outlet stores Non-store Retailing - online: allows consumers to search for, evaluate, and order products through the Internet - vending: v-commerce; serve customers when and where stores cannot; maintenance and other costs add to cost of products, so typically higher - Direct mail and catalogs: "store that comes to door"; eliminates cost of store and clerks, improve marketing efficiency through segmentation and targeting, provide fast means of making purchase which adds value - TV Home shopping: watch a shopping channel on which products are displayed and orders are placed over phone or internet - telemarketing: Using the telephone to interact with and sell directly to consumers. - direct selling: door-to-door; direct sales of products and service to consumers through personal interactions and demonstrations in their home or office

What is retailing strategy and how is it different than marketing strategy?

Retailing strategy is the same as marketing strategy but with some terminology differences Marketing - situation analysis - STP - 4Ps/marketing mix Retailing - Situation analysis - STP (breadth of product line and value added) - pricing, location, communication, merchandise

What are the key elements in creating "sticky" advertising?

SUCCESS - Simple: not about dumbing down, it's about prioritizing. What is the core of your message - Unexpected: to get attention, violate a schema. to hold attention, use curiosity gaps. audience has to want it - Concrete: use sensory language, paint a mental picture, use velcro theory of memory - hook into multiple types of memory - Credible: credibility from outside authorities or within, using human-scale statistics, try before you buy - Emotional: WIIFY, identity appeals can trump self-interest - Stories: drive action through simulation and inspiration, springboard stories help people see how an existing problem might change - S

What are the stages and objectives in the personal selling process?

Sales activities occurring before, during, and after the sale itself, consisting of six stages 1. Prospecting: search for and qualify prospects 2. Preapproach: gather information and decide how to approach the prospect 3. Approach: gain a prospect's attention, stimulate interest, and make transition to the presentation 4. Presentation: begin converting a prospect into a customer by creating a desire for the product or service 5. Close: obtain a purchase commitment from the prospect and create a customer 6. Follow-Up: ensure that the customer is satisfied with the product or service

consumer-oriented sales promotions and 10 types

Sales tools used to support a company's advertising and personal selling directed to ultimate consumers. Also called consumer promotions. - coupons: sales promos that offer discounted price and encourages trial; stimulate demand - deals: short-term price reductions; stimulate trail to retaliate competitors - premiums: merchandise offered free; or at a significant savings over retail price; SELF-LIQUIDATING: cost charged to consumer covers cost of item; build goodwill - contests: encourage consumers to apply skill/analytical/creative thinking to try to win prize; increase purchases and build business inventory - sweepstakes: require participants to submit some kind of entry but are purely games of chance; encourage present customers to buy more, minimize brand switching - samples: offering product free or at greatly reduced price; usually a trial size; encourage trial - loyalty programs: acknowledging each purchase made my consumer and offering a premium as purchases accumulate; encourage repeat purchases - point-of-purchase display: product displays take form of ad signs, sometimes hold/display the product, high-traffic areas; increase trial, provide in-store support for other promotions - rebates: return of money based on proof of purchase; encourage customers to purchase, stop sales decline - product placement: uses a brand-name product in a movie, television show, video game, or a commercial for another product; REVERSE: brings fictional products to marketplace; introduce new products, demonstrate product use

Trade-oriented sales promotions and the 3 types (3/1/1)

Sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions. Allowances and discounts - Merchandise allowance: reimbursing a retailer for extra in-store support or special featuring - Case allowance: discount on each case ordered during specific time period - Finance allowance: paying retailers for financing costs or financial losses associated with consumer sales promos Cooperative advertising: Advertising programs whereby a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products. Training of distributor's salesforces

off-price retailing - warehouse club - outlet store - single-price/extreme value

Selling brand-name merchandise at lower than regular prices. - large stores are rather stark outlets that typically lack elaborate displays, customer service, or home delivery; usually an annual membership fee - factory outlets that offer products for 25-75% of suggested retail price; manufacturers use the stores to clear excess merchandise and to reach consumers who focus on value shopping - "corner store" experience

Time utility Place utility Form utility Possession utility

T: having a p/s when you want it P: where consumers want it F: enhancing a p/s to make it more appealing to buyers P: efforts by intermediaries to help buyers take possession of a p/s such as offering easy payment methods or leasing contracts

Types of media (8)

TV Radio Magazine Newspapers Directories Internet Outdoor Direct mail

Pretests - portfolio - jury - theater

Tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement. - used to test copy alternatives; placed in portfolio with several other ads, consumers read through it and asked of their impressions on evaluative scales - showing ad copy to panel of consumers and having them rate how they liked it, how much attention it drew, and how attractive it was; unlike portfolio, test ad is not hidden with other ads - consumers invited to view new TV shows/movies in which test commercials are show

What is a creative brief and what are its key elements? (6)

The Advertising Process - client -> creative brief -> agency Brief: contract between client and agency - the challenge - the target audience - the insight - the benefit - the reasons to believe - relevant background creative agencies: brainstorm ideas, shoot ad and send to agencies that broadcast media planning/buying: where ads are placed (media), resonate with target audience

retailing mix

The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise.

mobile marketing

The broad set of interactive messaging options that enable organizations to communicate and engage with consumers through any mobile device.

marketing attribution

The practice and techniques used to credit or value a particular channel and consumer touchpoint. (monitoring and measuring performance in omnichannel marketing)

Team selling - conference selling - seminar selling

The practice of using an entire team of professionals in selling to and servicing major customers. - conference selling: a salesperson and other company resource people meet with buyers to discuss problems and opportunities - company team conducts an educational program for a customer's technical staff, describing state-of-the-art developments

retail life cycle

The process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages. - early growth: emergence of retail outlet; sharp departure from existing comp; gradual rise in market share; possible low profits - accelerated development: market share and profit achieve greatest growth rates; multiple outlets established; focus on distribution element - maturity: some comp drops out; battle for market share - decline stage: market share and profit fall rapidly

What is shopper marketing? (6/4)

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store. - in store: shelf talkers, coupon machines, catalina, floor talkers, weekly ads, displays - online: banner ads, banners with ratings, related items recommendations, sponsored search

Supply Chain and supply chain management

The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users. - the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers

What value do the different retail outlets offer?

Time utility Place utility Form utility: production or alteration of a product Possession utility: payment options Economic value is represented by the people employed in retailing as well as by the total amount of money exchanged in retail sales

Who are the intermediaries in the distribution network and what value do they provide manufacturers and retailers?

Wholesalers: organizations who buy bulk quantities of product from the manufacturer, break it down into smaller quantities and assortments, and resell it to retailers Brokers: intermediaries who leverage their networks to resell products and services for manufacturers (don't take ownership, no touch product) Manufacturer benefits: - can sell bulk quantities - gives access to broad distribution channels and relationships - reduces logistics complexity Retailer benefits - get smaller and more timely shipments - can carry less inventory - purchasing power

marketing automation customer service and support automation

applies systems and technologies, including AI algorithms, to provide insights to salespeople - identify qualified prospects from leads, preparing appropriate preapproach, track customer buying process consists of processes and technologies that supply customers with information about postsale activities, including installation, repair, replacement, and replenishment, and technical expertise pertaining to products - "live chat" opportunities and the ability to provide a single source for customer problem solving

Logistical function (intermediaries)

assorting: creating product assortments from several sources to serve customers storing: assembling and protecting products at a convenient location to offer better customer service sorting: purchasing in large quantities and breaking into smaller amounts desired by customers transporting: physically moving a product to customers

channel captain and their 4 forms of influence

channel member that coordinates, directs, and supports other channel members - reward: economic influence through strong financial position - expertise - identification: desire to be identified with another channel member - legitimate right: usually in contractural vertical marketing systems; franchisor can legitimately direct franchisee behavior

Corporate Vertical Marketing System

combination of successive stages of production and distribution under a single ownership - Forward integration: producer owns the intermediary at the next level down the channel - Backward integration: retailer owns a manufacturing operation Both types of integration increase a company's capital investment and fixed costs

Eight-second rule

customers will abandon efforts to enter and navigate a website if download time exceeds eight seconds; more clicks and pauses are more likely to exit website

What is Integrated Marketing Communications and what are its goals?

designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences

What is a customer journey map and how do you create one (7)? what is in a cross-channel consumer journey map?

detail the time and place consumers and companies engage to exchange information, provide service, or handle buying transaction - buyer's persona, customer's goals, identify touchpoints, identify pain points, remove roadblocks, take the journey yourself, update and improve map identifies communication and delivery channels engaged by cross-channel consumers, shows the links between channels across prepurchase, purchase, and postpurchase phases, highlights consumer touchpoints that are outside control of company - problem definition, informations search, alt evaluation, purchase decision, post-purchase decision

What is direct marketing and what are some examples of direct marketing tactics? (5)

direct communication with customers to generate a response - catalogs - direct mail - online - direct response TV - telemarketing

need-satisfaction format - adaptive selling - consultive selling - upselling - cross-selling

emphasized probing and listening by the salesperson to identify needs and interests of prospective buyers - A need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. - A need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. - introducing a higher-end product solution that the one in question - proposing related/complementary p/s

objections and the 6 ways to deal with them

excuses for not making a purchase commitment or decision 1. acknowledge and covert objection 2. postpone 3. agree and neutralize 4. accept objection 5. denial 6. ignore objection

Channel stewardship (4/4)

how a company designs, manages, and evolves its channel strategy in light of changing competitive and customer environments Channel design - direct versus indirect - channel contracts - channel coverage - channel structure Channel management - channel influence - channel margins and incentives - channel performance - channel conflict

Promotional elements are divided into two categories

mass selling - advertising - public relations - sales promos categorized interaction - direct marketing - personal selling

Message appeals

provides a reason for consumer to act - fear appeals: consumer can avoid some negative experience through the purchase and use of p/s, change in behavior, or reduction in use of product; overly threatening will lead to tuning out message - sex appeals: the product will increase the attractiveness of the user; greater response than other appeals - humorous appeals: imply directly or subtly that the product is more fun or exciting than competitor's offerings

What is "retailtainment" and how is it developed?

retailing marketing that provides entertainment and motivation to buy - offer a broad combination of amenities and services - experiential shopping - appointment-based shopping, local pickup, contactless payment, pop-up shops, technical solutions

Compensation structure and its four elements

single most impactful driver of sales direction Fixed: salary, constant, base Variable: commission, incentivized to sell Expenses: what % of expenses you incur will be covered by company Fringe benefits: company car? phone?

customer experience and seven fundamental website elements

sum total of the interactions that a customer has with a company's website Context - website's aesthetic appeal; functional look/feel of site's layout Content - all digital info on the website; text, audio, graphics Commerce - ability to conduct sales transactions Community - web communities = websites allow people to congregate online and exchange views on topics of common interest Connection - network of linkages between a company's website and other sites Communication - dialogue that unfolds between website and users Customization - ability to modify itself to, or be modified by and for, each individual user

customerization

the growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer

What's the Big Idea?

the hook or creative message that is the overarching theme across your tactics

Channel of Communication communication requirements

the means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process. - source, message, channel of comm, a receiver, encoding and decoding

Target market coverage - density - Intensive distribution - Exclusive distribution - Selective distribution

the number of stores in a geographical area a firm tries to place its products and services in as many outlets as possible - ex. convenience p/s only one retailer in a specific geographic area carries the firm's products; retailers & industrial distributors - limits head to head competition for identical product and provides point of difference for retailer/distributor - specialty products a firm selects a few retailers in a specific geographic area to carry its products; most common

Direct channel for consumers and business products

the producer and the ultimate consumers deal directly with each other - producer performs all channel functions - producer to consumer - Producer -> industrial user: buyers are large and well-defined, extensive negotiations, products are high unit value and require hands-on expertise

What is a marketing channel of distribution? and how do you choose it

the venue a company uses to move its products or services to the world - supplier, distributor/wholesaler, retailer, consumer - supplier, jobber/broker, retailer, consumer - supplier, retailer, consumer - supplier, supplier's own sales and distribution, consumer Level of control, cost, and coverage (target market coverage, profitability, buyer requirements) - need more comm = direct channel ; control of comm. of benefits to customer - low cost = indirect channel; own supply chain is expensive - high = indirect; how fast you want your distribution

Retail image

the way in which the store is defined in the shopper's mind, partly by its functional qualities and partly by an aura of psychological attributes

order cycle/replenishment (not on vocab)

time between the ordering of an item and when it is received and ready for use or sale