Marketing (MK303): Exam III (from Learnsmart)

A selective policy might be used to avoid selling to wholesalers or retailers that...

(1) place orders that are too small to justify making calls, (2) make too many returns or request too much service, (3) have a poor credit rating, or (4) are not in a position to do a satisfactory job.

What is pushing?

(a product through a channel) means using normal promotion effort—personal selling, advertising, and sales promotion—to help sell the whole marketing mix to possible channel members. This approach emphasizes the importance of securing the wholehearted cooperation of channel members to promote the product in the channel and to the final user.

What is negotiated contract buying?

Agreeing to contracts that allow for changes in the purchase arrangements. In such cases, the general project and basic price are described but with provision for changes and price adjustments up or down.

What are some reasons a company might choose a direct channel of distribution?

1. Because it believes it can offer a cheaper price that way 2. Because it believes it can better serve customers that way 3. Because it wants to directly manage the entire marketing mix

What are the three basic promotion objectives?

1. Informing 2. Persuading 3. Reminding target customers about the company and its marketing mix. All try to affect buyer behavior by providing customers with information. Also try to state exactly whom you want to inform, etc. and why.

What is a landing page?

A customized web page that logically follows from clicking on an organic search result, online advertisement, or other link. Landing pages may be linked from social media, an e-mail campaign, or search engine optimization around specific key terms. The goal of a landing page is to move customers along in the purchase process. Because customers can easily click away from a web page, a landing page that directly addresses a customer's needs minimizes click-away. Often a landing page will make an offer to the customer—perhaps the opportunity to download a white paper—and ask for their contact information in return.11

What are the two basic types of conflict in channels of distribution?

1. Vertical channel conflict occurs between firms at different levels in the channel of distribution. A vertical conflict can occur if a producer and a retailer disagree about how much promotion effort the retailer should give the producer's product. 2. Horizontal channel conflict occurs between firms at the same level in a distribution channel. ** these are illegal in the U.S.

Which of the following are ways in which marketing managers can make use of customers' independent searches for information on the web?

1. contribute to social media posts about the product 2. monitor online comments about the product for important feedback

What are the 5 dimensions that help characterize most buyer-seller relationships?

1. cooperation: treats problems as joint responsibilities 2. information sharing: useful but may be risky 3. optional linkages: share functions between firms 4. legal bonds: spell out obligations 5. relationship-specific adaptations: invest in the relationship

What is the three step approach to business and organizational buying?

1. defining the problem 2. decision-making process 3. managing the buyer-seller relationship

What are the types of promotion?

1. personal selling 2. mass selling 3. sales promotion 4. publicity

What are the six STEPPS suggested by Jonah Berger which can increase the odds of a message going viral?

1. social currency 2. emotion 3. public 4. stories 5. practical value 6. triggers

What is a joint venture?

A domestic firm enters into a partnership with a foreign firm.

What is a sales territory?

A geographic area that is the responsibility of one salesperson or several working together. A territory might be a region of a country, a state, or part of a city, depending on the market potential. An airplane manufacturer like Boeing might consider a whole country as part of a sales territory for one salesperson. Carefully set territories can reduce travel time and the cost of sales calls. Assigning territories can also help reduce confusion about who has responsibility for a set of sales tasks. Consider the Hyatt Hotel chain. At one time, each hotel had its own salespeople to get bookings for big conferences and business meetings.

What is a brand community?

A group of customers joined around a particular brand or common set of shared interests. A brand community should be designed to serve the interests of its members—and the brand often enjoys increased customer loyalty, larger purchases, or simply being viewed as a trusted partner.

What is a channel captain?

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.

What is a direct investment?

A parent firm has a division (or owns a separate subsidiary firm) in a foreign market. This gives the parent firm complete control of marketing strategy planning. Direct investment is a big commitment and usually entails greater risks.

What is a blog?

A regularly updated website, usually managed by one person or a small group and written in an informal, conversational style. Many companies use blogs as a way to regularly communicate with customers. A blog allows a company or individual Page 428to get their ideas out to interested target customers. Some firms use a blog to position a firm or individual as a thought leader on a particular topic or to just demonstrate their helpfulness and concern. Customers like to do business with experts and caring people and companies.

What is an inside sales force?

A sales force that meets with customers in a manner that is not face-to-face. Inside salespeople are often used with small or hard-to-reach customers a firm might otherwise promote to with mass selling or just ignore. But now many firms find an inside sales force to be more efficient and effective than a traditional face-to-face sales force. The big advantage of telephone selling by an inside sales group is that it saves time and money for the seller and it gives customers a fast and easy way to solve a purchasing problem. For example, many customers just call into the inside sales force for assistance or to place an order. Telephone contact may supplement a good website; the website provides standard information and an inside salesperson answers specific questions on the phone.

What is an infographic?

A visual image such as a chart or diagram used to represent information or data. The visual images, often combined with minimal text, grab attention, simplify complex information, and highlight trends or patterns. A well-designed infographic quickly conveys useful information and gets passed along more readily than a text-heavy website. DESIGNED TO COMMUNICATE WITH CUSTOMERS WHO HAVE SHORT ATTENTION SPANS.

What are purchasing specifications?

A written description of what the firm wants to buy. When quality is highly standardized, as is often the case with manufactured items, the specification may simply consist of a brand name or part number. In other situations, an organization may simply decide what it wants and move quickly through this stage. Often larger organizations, with formal procedures, spend more time detailing the purchase requirements.

What is vertical integration?

Acquiring firms at different levels of channel activity.

What are regrouping activities?

Adjusts the quantities or assortments of products handled at each level in a channel of distribution. There are four regrouping activities: 1. accumulating 2. bulk-breaking 3. sorting 4. assorting When one or more of these activities is needed, a marketing specialist may develop them to fill this need.

What is advertising?

Advertising is a primary form of mass selling. Advertising is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. It includes the use of traditional media such as magazines, newspapers, radio and TV, signs, and direct mail as well as new media such as the Internet. Marketing managers pay for advertising to be placed on specific media.

What are purchasing managers? (can be called procurement officer, supply manager, purchasing agent, or buyer)

Buying specialists for their employers. In large organizations, they usually specialize by product area and are real experts. help cut costs and provide competitive advantage

What is a buying center?

All the people who participate in (or influence) a purchase.

Are long term relationships with a business always a good thing?

Although close relationships can produce benefits, they are not always best. For buyers, long-term commitments can also reduce flexibility. When competition drives down prices and spurs innovation, customers may be better off letting suppliers compete for their business. It may not be worth the customer's investment to build a relationship for purchases that are not particularly important or made that frequently. Besides that, close relationships take time and attention to build and manage. Sellers don't usually want closer relationships with all of their customers either. Some customers may place orders that are too small or require so much special attention that the relationship would never be profitable for the seller. Also, in situations where a customer doesn't want a relationship, trying to build one may cost more than it's worth. Buyers and sellers should choose closer relationships where the benefits outweigh the costs.17

What are white papers?

An authoritative report or guide that addresses important issues in an industry and offers solutions).

What is a white paper?

An authoritative report or guide that addresses important issues in an industry and offers solutions. Some companies will self-publish an extended version of a white paper as an e-book. E-books and white papers are most successful when, in addition to describing a problem, they help the customer solve it without promoting a particular company's products. An objective tone helps the provider build trust and credibility with potential customers. PURPOSE: to establish a company as an industry expert

What are business and organizational customers?

Any buyers who buy for resale or to produce other goods and services. There are many different types of organizational customers, including the following: Producers of goods and services—including manufacturers, farmers, real estate developers, hotels, banks, and even doctors and lawyers Intermediaries—wholesalers and retailers Government units—federal agencies in the United States and other countries as well as state and local governments Nonprofit organizations—national organizations such as the American Red Cross and Girl Scouts as well as local organizations such as museums and churches As this suggests, not all organizational customers are business firms. Even so, they are sometimes loosely referred to as business buyers, intermediate buyers, or industrial buyers—and marketing managers often refer to organizational customers collectively as the "business-to-business" market, or simply, the B2B market.

What is noise?

Any distraction that reduces the effectiveness of the communication process.

Channel of Distribution

Any series of firms or individuals who participate in the flow of products from producer to final user or consumer.

What is publicity?

Any unpaid form of nonpersonal presentation of ideas, goods, or services. Of course, publicity people are paid. But they try to attract attention to the firm and its offerings without having to pay media costs. Publicity includes a wide range of different types of media: a company's website and the material it posts on the website, viral videos, word-of-mouth communication, a company's Facebook page, and its "tweets" on Twitter. It can also include coverage it receives in the press—for example, when a movie is reviewed in the newspaper. Includes EARNED, OWNED, and SOCIAL MEDIA.

What is a requisition?

Arequest to buy something. For larger purchases, there may be rules requiring that multiple suppliers are contacted so that prices can be compared.

What is accumulating?

Involves collecting products from many small producers.

What is a vertical marketing system?

Channel systems in which the whole channel focuses on the same target market at the end of the channel. Three types: 1. corporate 2. administered 3. contractual

What are reverse channels?

Channels used to retrieve products that customers no longer want. The need for reverse channels may arise in a variety of different situations: A firm that makes an error in completing an order may have to take returns. Soft drink companies may need to recycle empty bottles. Consumers sometimes buy something in error and want to return it. This is common with online purchases where consumers can't see, touch, or try the product before purchasing it. BENEFITS: 1. Demonstrating commitment to customers 2. Commitment to environment 3. Gaining Profit

What is promotion?

Communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior. The promotion part of the marketing mix involves telling target customers that the right Product is available at the right Place at the right Price. Just as Promotion must be fine-tuned for a specific target market, it must fit with the other variables of the marketing mix and reinforce the strategy's differentiation and positioning.

What is public relations?

Communication with noncustomers, including the press, labor, public interest groups, stockholders, and the government. A social media manager may be in charge of a company's social media (Facebook page, Twitter feed, LinkedIn page, etc.) and possibly its website. Any of these jobs may be outsourced—though a firm that manages public relations probably differs from one that manages social media or a firm's website.

What are order getters?

Concerned with establishing relationships with new customers and developing new business. Order-getting means seeking possible buyers with a well-organized sales presentation designed to sell a good, service, or idea. Order getters must know what they're talking about, not just be personal contacts. Order-getting salespeople normally are well paid—many earn more than $100,000 a year! Producers' order getters—find new opportunities Wholesalers' order getters—almost hand it to the customer Retail order getters influence consumer behavior

What do sales managers do?

Concerned with managing personal selling. Often the sales manager is responsible for building good distribution channels and implementing Place policies. In smaller companies, the sales manager may also act as the marketing manager and be responsible for advertising and sales promotion.

What is a corporate channel system?

Corporate ownership all along the channel—we might say the firm is going "direct." But actually the firm may be handling manufacturing, wholesaling, and retailing—so it's more accurate to think of the firm as a vertical marketing system. This is a type of vertical marketing system. They use vertical integration.

What is primary demand?

Demand for the general product idea—not just for the company's own brand. This is during market introduction.

What are NAICS codes?

Detailed information is often available to help a marketing manager learn more about customers in different lines of business. The U.S. government collects and publishes data by the North American Industry Classification System (NAICS) codes—groups of firms in similar lines of business. (NAICS is pronounced like "nakes.") The number of establishments, sales volumes, and number of employees—broken down by geographic areas—are given for each NAICS code. A number of other countries collect similar data, and some of them try to coordinate their efforts with an international variation of the NAICS system. However, in many countries data on business customers are incomplete or inaccurate. So let's take a closer look at how the NAICS codes work. The NAICS code breakdowns start with broad industry categories such as construction (23), manufacturing (31), retail trade (44), and so on (see Exhibit 6-8). Within each two-digit industry breakdown, much more detailed data may be available for three-digit industries (that is, subindustries of the two-digit industries). For example, within the two-digit manufacturing industry (code 31) there are manufacturers of food (311), leather (316), and others, including apparel manufacturers (315). Then each three-digit group of firms is further subdivided into more detailed four-, five-, and six-digit classifications. For instance, within the three-digit (315) apparel manufacturers there are four-digit subgroups for knitting mills (3151), cut and sew apparel (3152), and producers of apparel accessories (3159). Exhibit 6-8 illustrates that breakdowns become more detailed as you move to codes with more digits. However, detailed data (say, broken down at the four-digit level) aren't available for all industries in every geographic area. The government does not provide detail when only one or two plants are located in an area.

What is bulk-breaking?

Involves dividing larger quantities into smaller quantities as products get closer to the final market. The bulk-breaking may involve several levels in the channel. Wholesalers may sell smaller quantities to other wholesalers or directly to retailers. Retailers continue breaking bulk as they sell individual items to their customers.

What is direct marketing?

Direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling. Sometimes direct marketing promotion is coupled with direct distribution from a producer to consumers. Direct communication with consumers to generate a response in the form of an order, request for further information, or visit to a retail outlet; no intermediaries. BENEFITS TO DIRECT DISTRIBUTION: 1. sensitivity to shifts in customers moods 2. ability to transform its marketing mix rapidly

(T/F): Companies spend the most on advertising.

False: Although total spending on advertising seems high, U.S. corporations spend an average of only about 2.5 percent of their sales dollars on advertising.

(True/False): Most money is spent on advertising rather than personal selling or sales promotion.

False; All the special sales promotions—coupons, sweepstakes, trade shows, and the like—add up to even more money. Similarly, much personal selling goes on in the channels and in other business markets. In total, firms spend less money on advertising than on personal selling or sales promotion.

(True/False): Marketing managers should ignore bad reviews.

False; Marketing managers should not ignore negative reviews—they should respond and fix the problems.

(True/False): Social media is free to advertise on.

False; There is no media placement cost but it is not free. Most social media have no direct media cost, but that doesn't mean use of social media platforms is free. A company needs to hire staff or an agency to manage its presence on social media. Once a company starts a Facebook page or Twitter stream, it should regularly maintain the page—or customers may wonder if the company has gone out of business.

(True/False): An Avon cosmetics rep is a "direct seller."

False; they're not company employees. They usually work independently, and the companies that they sell for refer to them as dealers, distributors, agents, or some similar term. So in a strict technical sense, this is not really direct producer-to-consumer distribution.

Why would a business sell direct-to-customer?

Fewer transactions, orders are larger, and customers may be concentrated in one geographic area. A firm may have to go direct if suitable intermediaries are not available or will not cooperate.

What are innovators?

First adopters of new products.

What are some potential advertising objectives?

For our target market, position the new product as the most technologically advanced in the industry by January 1. Increase unaided brand awareness to 50 percent in our primary target market by July 1. In our new geographic market, obtain trial of our product from 5 percent of the market by the end of the year. Get 100,000 new customers to visit the website and click through to view information about our new product by December 1.

What is personal selling?

Involves direct spoken communication between sellers and potential customers. Customer service is a form of personal communication between a customer and seller to resolve a problem with a purchase. Salespeople get immediate feedback, which helps them adapt. Although some personal selling is included in most marketing mixes, it can be very expensive. So it's often desirable to combine personal selling with advertising, sales promotion, and/or publicity.

When would a company focus on reminding?

If target customers already have positive attitudes about a firm's marketing mix—or a good relationship with a firm—a reminding objective might be suitable. Customers who have been attracted and sold once are still targets for competitors' appeals. Reminding them of their past satisfaction may keep them from shifting to a competitor.

What is the late majority group?

Is cautious about new ideas. Often they are older and more set in their ways, so they are less likely to follow early adopters. In fact, strong social pressure from their own peer group may be needed before they adopt a new product. Business firms in this group tend to be conservative, smaller-sized firms with little specialization. The late majority makes little use of marketing sources of information—mass media and salespeople. They tend to be oriented more toward other late adopters rather than outside sources they don't trust.

What is ideal market exposure?

It makes a product available widely enough to satisfy target customers' needs but not exceed them. Too much exposure only increases the total cost of marketing.

What is marketing automation software?

It tracks individual customers' behavior and triggers actions in response to specific customer actions. For organizations with customers who spend a lot of time online, this software provides a low-cost way to learn more about customers and deliver the right messages at the right time. For example, a customer who visits a site three times might automatically be delivered a "pop-up" question "Can I answer any questions for you?" that links to a waiting salesperson.

Place

Making goods and services available in the right quantities and locations, when customers want them.

What do advertising managers do?

Manage their company's mass-selling effort—in television, newspapers, magazines, and other media. Their job is choosing the right media and developing the ads. Advertising may be handled in-house, by departments existing within the firms, or it may be contracted to outside advertising agencies.

What do sales promotion managers do?

Manage their company's sales promotion effort. In some companies, a sales promotion manager has independent status and reports directly to the marketing manager. If a firm's sales promotion spending is substantial, it probably shouldhave a specific sales promotion manager. Sometimes, however, the sales or advertising departments handle sales promotion efforts—or sales promotion is left as a responsibility of individual brand managers. Regardless of who the manager is, sales promotion activities vary so much that many firms use both inside and outside specialists.

During what stage would mass selling and promotion dominate?

Market maturity

What is mass selling?

Mass selling is communicating with large numbers of potential customers at the same time. It's less flexible than personal selling, but when the target market is large and scattered, mass selling can be less expensive.

What is the communication process?

Means a source trying to reach a receiver with a message.

What is pulling?

Means getting customers to ask intermediaries for the product.

What is multiple buying influence?

Means that several people—perhaps even top management—play a part in making a purchase decision. Possible buying influences include the following: Users—perhaps production line workers or their supervisors. Influencers—perhaps engineering or R&D people who help write specifications or supply information for evaluating alternatives. Buyers—the purchasing managers who have the responsibility for working with suppliers and arranging the terms of the sale. Deciders—the people in the organization who have the power to select or approve the supplier—often a purchasing manager but perhaps top management for larger purchases. Gatekeepers—people who control the flow of information within the organization. Gatekeepers might include purchasing managers, receptionists, secretaries, research assistants, bookkeepers, and many more.

Customer service is...

NOT THE PRODUCT PART OF PROMOTION

What is multichannel distribution?

Occurs when a producer uses several competing channels to reach the same target market—perhaps using several intermediaries in addition to selling directly. Multichannel distribution is becoming more common. Reflects customer behavior.

What is pass-along?

Occurs when one customer passes information on to one or more other customers. Customers pass along videos, articles, coupons, or websites to other customers. They also recommend brands when the seller has earned an endorsement—or advise against a brand that deserves it. Sellers can earn more recommendations by making it easy for customers to share recommendations or content.7

What is a referral program?

Offers a current customer an incentive for recommending a new customer to a business. Usually referral programs require the new customer to make a purchase. To give both the person giving and the person receiving the referral an incentive, both are usually offered some sort of discount. ADVANTAGE: RELATIVELY INEXPENSIVE So, for example, after a customer gives a positive review at Airbnb (a website where customers can rent out lodging), they are asked if they would like to refer a friend. The friend is sent a $25 discount—and after the friend books a place to stay through Airbnb, a similar credit is given to the person who made the referral.24

What is the copy thrusts?

Once you decide how the messages will reach the target audience, you have to decide on the copy thrust—what the words and illustrations should communicate. Carrying out the copy thrust is the job of advertising specialists. But the advertising manager and the marketing manager need to understand the process to be sure that the job is done well. Basically, the overall marketing strategy should determine what the message should say. Getting attention is an ad's first job. Holding interest is more difficult. Arousing desire to buy a particular product is one of an ad's most difficult jobs. To arouse desire, an ad should usually focus on a unique selling proposition that aims at an important unsatisfied need. Getting action is the final requirement—and not an easy one. From communication research, we now know that prospective customers must be led beyond considering how the product might fit into their lives to actually trying it.

What are the three basic sales tasks?

Order-getting, order-taking, and supporting. For convenience, we'll describe salespeople by these terms—referring to their primary task—although one person may do two or all three tasks in some situations.

When would a company focus on informing?

Potential customers must know something about a product if they are to buy it. A firm with a really new product may not have to do anything but inform consumers of the product's features and benefits. An informing objective can show that it meets consumer needs better than other products can.

What are laggards or non adopters?

Prefer to do things the way they've been done in the past and are very suspicious of new ideas. They tend to be older and less well educated. The smallest businesses with the least specialization often fit this category. They cling to the status quo and think it's the safe way. The main source of information for laggards is other laggards. This certainly is bad news for marketers. In fact, it may not pay to bother with this group.12

What are advertising allowances?

Price reductions to firms further along in the channel—to encourage them to advertise or otherwise promote the firm's products locally.

What is integrated marketing communications?

The intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.

What does sales promotion refer to?

Promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion generally complements other promotion methods. Although advertising campaigns and sales force strategy decisions tend to have longer-term effects, a sales promotion activity usually lasts for a limited time. Sales promotion can often be implemented quickly and get sales results sooner than advertising. Further, sales promotion objectives usually focus on prompting some short-term action. For an intermediary, such action might be a decision to stock a product, provide a special display space, or give the product extra sales emphasis. For a consumer, the desired action might be to try a new product, switch from another brand, or buy more of a product. The desired action by an employee might be a special effort to satisfy customers.

What is owned media?

Promotional messages generated by a brand (or company or nonprofit organization) communicated through a message channel the brand directly controls. Owned media include the brochures and catalogs a company mails to target customers. A brand's product website, blog, and social media pages—YouTube channel, Facebook page, or Instagram—are also examples of owned media. As with paid media, the selling company is the source of the message. HIGH MESSAGE CONTROL, LOWER COST

What is earned media?

Promotional messages not directly generated by the company or brand, but rather by third parties such as journalists or customers. The company or brand is assumed to earn the attention of journalists or customers because there is an interesting story to tell or because others would value this information. Earned media can be positive or negative. Poor customer service might earn a restaurant a bad review on Yelp. ALSO INCLUDES USER-GENERATED CONTENT.

What is assorting?

Putting together a variety of products to give a target market what it wants. This usually is done by those closest to the final consumer or user—retailers or wholesalers who try to supply a wide assortment of products for the convenience of their customers.

What is sales promotion?

Refers to promotion activities—other than advertising, publicity, and personal selling—that stimulate interest, trial, or purchase by final customers or others in the channel. Sales promotion may be aimed at consumers, at intermediaries, or at a firm's own employees. Examples include contests and coupons aimed at consumers, trade shows or calendars for wholesalers or retailers, or sales contests and meetings aimed at a company's own sales force. Relative to other promotion methods, sales promotion can usually be implemented quickly and get results sooner. In fact, most sales promotion efforts are designed to produce immediate results.

What is social media?

Refers to websites or software applications that allow users to create and share ideas, information, photos and videos, and interact in a social network. Examples of social media include Facebook, Twitter, Instagram, Pinterest, and LinkedIn. About 7 in 10 Americans are on at least one social media platform. Among those who are 18 to 29 years old, the number is 9 in 10. Let's look closely at how social media differ from traditional media before we focus on how social media can work in the promotion blend.27

During what stage would the total amount spent on promotion usually decreases as firms try to cut costs to remain profitable?

Sales decline stage

What is intensive distribution?

Selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product. "Sell it where they buy it."

What is exporting?

Selling some of what the firm produces to foreign markets. Some firms start exporting just to take advantage of excess capacity—or even to get rid of surplus inventory. Some firms decide to change little if anything about the product, the label, or even the instructions.

What is licensing?

Selling the right to use some process, trademark, patent, or other right for a fee or royalty. The licensee in the foreign market takes most of the risk because it must make some initial investment to get started. The licensee also does most of the marketing strategy planning for the markets it is licensed to serve. If good partners are available, this can be an effective way to enter a market.

What is exclusive distribution?

Selling through only one intermediary in a particular geographic area.

What is selective distribution?

Selling through only those intermediaries who will give the product special attention. "Sell it where it sells best."

What is sorting?

Separating products into grades and qualities desired by different target markets.

What is the adoption curve?

Shows when different groups accept ideas.

What is a branded app?

Sponsored software applications that benefit customers by providing entertainment, solving a problem, and/or saving time. A branded app can be a positive reminder for the brand, especially when its function ties closely to the core product.

What is a case study?

Success stories about how a company helped another customer.

What are supporting salespeople?

Supporting salespeople help the order-oriented salespeople, but they don't try to get orders themselves. Their activities are aimed at enhancing the relationship with the customer and getting sales in the long run. For the short run, however, they are ambassadors of goodwill who may provide specialized services and information. There are three types of supporting salespeople: missionary salespeople, technical specialists, and customer service reps.

What are technical specialists?

Supporting salespeople who provide technical assistance to order-oriented salespeople. Technical specialists are often science or engineering graduates with the know-how to understand the customer's applications and explain the advantages of the company's product. They are usually more skilled in showing the technical details of their product than in trying to persuade customers to buy it. Before the specialist's visit, an order getter probably has stimulated interest. The technical specialist provides the details.

What are missionary salespeople?

Supporting salespeople who work for producers—calling on intermediaries and their customers. They try to develop goodwill and stimulate demand, help intermediaries train their salespeople, and often take orders for delivery by intermediaries. Missionary salespeople are sometimes called merchandisers or detailers.

What is the AIDA model?

The AIDA model consists of four promotion jobs: (1) to get Attention, (2) to hold Interest, (3) to arouse Desire, and (4) to obtain Action.

What is a message channel?

The carrier of the message.

What is a contractual channel system?

The channel members agree by contract to cooperate with one another.

What is an administered channel system?

The channel members informally agree to cooperate with one another. They can agree to routinize ordering, share inventory and sales information over computer networks, standardize accounting, and coordinate promotion efforts.

What are discrepancies of assortment?

The difference between the lines a typical producer makes and the assortment final consumers or users want.

What are discrepancies quantity?

The difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.

What is search engine optimization?

The process of designing a website so that it ranks high in a search engine's unpaid results. SEO considers how target customers search, what keywords they use in a search, and how the search engine prioritizes its results. Although the technical elements of SEO are beyond the scope of this textbook, a range of techniques can be employed to influence standing in search results.6

What is decoding?

The receiver translating the message. This process can be very tricky. The meanings of various words and symbols may differ depending on the attitudes and experiences of the two groups. People need a common frame of reference to communicate effectively.

What is management contracting?

The seller provides only management and marketing skills—others own the production and distribution facilities.

What is encoding?

The source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver.

What is a sales quota?

The specific sales or profit objective a salesperson is expected to achieve. Often a salesperson receives a bonus for meeting the sales quota.

What is a competitive bid?

The terms of sale offered by the supplier in response to the purchase specifications posted by a buyer. If different suppliers' quality, dependability, and delivery schedules all meet the specs, the buyer will select the low-price bid. But a creative marketer needs to look carefully at the buyer's specs—and the need—to see if changing other elements of the marketing mix could provide a competitive advantage.

What is a traditional channel system?

The various channel members make little or no effort to cooperate with one another. They buy and sell from one another—and that's the extent of their relationship. Each channel member does only what it considers to be in its own best interest. It doesn't worry about other members of the channel.

What is trade promotion?

Trade promotion refers to sales promotion aimed at intermediaries. A range of tools may be used depending on the promotion objective. Sometimes a producer uses trade promotion to get the intermediary's sales force to pay more attention to the producer's products. Sales contests can help achieve that goal, encouraging intermediary salespeople to earn prizes by exceeding sales targets. Another approach is to train intermediary salespeople on the product, perhaps at a producer-sponsored sales meeting in a desirable location (so that attendance has its own rewards, in addition to professional growth).

(True/False): Most customers are reluctant to recommend products—even when they do have a great experience.

True

(True/False): If a blogger is sponsored, they must ALWAYS disclose that sponsorship.

True; When a blogger (or someone posting on social media) offers an endorsement or testimonial for a product, this must be disclosed.

What is telemarketing?

Using the telephone to call on customers or prospects.

What is a branded service?

Valued services a brand provides that are not directly connected to a core product offering. Branded services are usually free or low cost and offer target customers benefits that leave a positive impression. This helps customers perceive a company or brand as caring about the customers' welfare. Customers experience these benefits and develop a positive attitude that fosters trust.

What are early adopters?

Well respected by their peers and often are opinion leaders. They tend to be younger, more mobile, and more creative than later adopters. But unlike innovators, they have fewer contacts outside their own social group or community. Business firms in this category also tend to be specialized. Of all the groups, this one tends to have the greatest contact with salespeople. Their acceptance is crucial. The next group, the early majority, look to the early adopters for guidance. The early adopters can help the promotion effort by spreading word-of-mouth information and advice among other consumers.

When would a company focus on persuading?

When competitors offer similar products, the firm must not only inform customers that its product is available but also persuade them to buy it. A persuading objective means the firm will try to develop a favorable set of attitudes so customers will buy, and keep buying, its product. A persuading objective often tries to demonstrate how one brand is better than others.

What is team selling?

When different people work together on a specific account. Sometimes members of a sales team are not from the sales department at all. If improving the relationship with the customer calls for input from the quality control manager, then that person becomes a part of the team, at least temporarily. Producers of big-ticket items often use team selling.

When would a business look for an intermediary?

When they first enter international markets. Specialists can provide crucial information about customer needs and insights into differences in the market environment. **An intermediary can often help produces serve customer needs better and at lower cost.

What is a vendor analysis?

a formal rating of suppliers on all relevant areas of performance. The purpose isn't just to get a low price from the supplier on a given part or service. Rather, the goal is to lower the total costs associated with purchases. Analysis might show that the best vendor is the one that helps the customer reduce costs of excess inventory, retooling of equipment, or defective parts.1

What is a job description?

a written statement of what a salesperson is expected to do. It might list 10 to 20 specific tasks—as well as routine prospecting and sales report writing. Each company must write its own job specifications. And it should provide clear guidelines about what selling tasks the job involves. This is critical to determine the kind of salespeople who should be selected—and later it provides a basis for seeing how they should be trained, how well they are performing, and how they should be paid. Company's sales training program should cover at least the following areas: (1) company policies and practices, (2) product information, (3) how to build relationships with customer firms, and (4) professional selling skills. STARTS WITH ORIENTATION

What is corrective advertising?

ads to correct deceptive advertising. The FTC forced Bayer to run corrective advertising after Bayer made unproven claims about its drug Yaz's efficacy for treating acne and premenstrual syndrome. Other advertisers learn from these cases. The possibility of large financial penalties or the need to pay for corrective ads causes most advertisers to stay well within the law.

What is the early majority group?

avoids risk and waits to consider a new idea after many early adopters have tried it—and liked it. Average-sized business firms that are less specialized often fit in this category. If successful companies in their industry adopt the new idea, they will too. The early majority have a great deal of contact with mass media, salespeople, and early adopter opinion leaders. Members usually aren't opinion leaders themselves.

What is pioneering advertising?

builds primary demand Pioneering advertising is usually done in the early stages of the product life cycle; it informs potential customers about the new product and helps turn them into adopters. When digital cameras first came out, consumers didn't know their benefits or why they might want one—and at the same time they worried about how they could get printed pictures. So advertising for the early products in the market had to explain these basics and build primary demand.

What is outsourcing?

contract with an outside firm to produce goods or services rather than to produce them internally. Many firms have turned to outsourcing to cut costs—and that's why much outsourcing is handled by suppliers in countries where labor costs are lower. For example, many American companies are outsourcing production to firms in China and customer service to India.

What is selective demand?

demand for a company's own brand. The main job is to persuade customers to buy, and keep buying, the company's product. This is during the market growth stage. Now that there are more potential customers, mass selling becomes more economical. But salespeople and personal selling must still work in the channels, expanding the number of outlets and cementing relationships with channel members.

What is competitive advertising?

emphasizes selective demand tries to develop selective demand for a specific brand. A firm is forced into competitive advertising as the product life cycle moves along—to hold its own against competitors. For example, as digital cameras moved to the growth stage of the product life cycle, advertising emphasized features and benefits to persuade customers that they needed more megapixels, lower prices, or face recognition. Competitive advertising may be either direct or indirect. Direct competitive advertising aims for immediate buying action. Indirect competitive advertising points out product advantages to affect future buying decisions.

What are two reasons that producers who target business customers emphasize personal selling over other promotion methods?

fewer customers and larger purchases

What is a key characteristics in B2B?

fewer customers but each spends more dollars

what is prospecting?

following all the leads in the target market to identify potential customers.

What is AIDA?

helps plan sales presentations Most sales presentations follow the AIDA sequence: Attention, Interest, Desire, Action. The time a sales rep spends on each of the steps varies depending on the situation and the selling approach being used. But it is still necessary to begin a presentation by getting the prospect's attention and, hopefully, to move the customer to action.

Which of the following are possible ethical concerns related to promotion?

honesty and fairness

What is a consultative selling approach?

involves developing a good understanding of the individual customer's needs before trying to close the sale. This name is used because the salesperson is almost acting as a consultant to help identify and solve the customer's problem. With this approach, the sales rep makes some general benefit statements to get the customer's attention and interest. Then the salesperson asks questions and listens carefully to understand the customer's needs. Once they agree on needs, the seller tries to show the customer how the product fills those needs and to close the sale. This is a problem-solving approach—in which the customer and salesperson work together to satisfy the customer's needs. That's why it's sometimes called the need-satisfaction approach.

What is cooperative advertising?

involves producers sharing in the cost of ads with wholesalers or retailers. Franchisors might also use cooperative advertising to help local franchisees build their business. This helps the intermediaries compete in their local markets. It also helps the producer get more promotion for its advertising dollars because media usually give local advertisers lower rates than national or international firms. In addition, a retailer or wholesaler who is paying a share of the cost is more likely to follow through.

What is a straight rebuy?

is a routine repurchase that may have been made many times before. Buyers probably don't bother looking for new information or new sources of supply. Most of a company's small or recurring purchases are of this type—but they take only a small part of an organized buyer's time. Think of a grocery store placing an order to refill 21-ounce boxes of Cheerios because supply is low. Important purchases may be made this way too—but only after the firm has decided what procedure will be "routine." OFTEN USE E-COMMERCE ORDER SYSTEMS

Which of the following methods are commonly used to deliver direct marketing materials?

mail and e-mail

What is comparative advertising?

means making specific brand comparisons—using actual product names. Verizon touted its superior coverage with ads showing maps that highlighted its service as compared to AT&T. An Audi television ad shows a guy driving down the highway in his BMW. At full speed, he jumps out of his car and climbs onto a passing truck that is carrying a delivery of new Audi Q5s.

What is new task-buying?

occurs when a customer organization has a new need and wants a great deal of information. The company may have never purchased this type of product before. For example, an automaker that was just starting an electric car project may be purchasing large batteries for the first time. New-task buying involves setting product specifications, evaluating sources of supply, and establishing an order routine that can be followed in the future if results are satisfactory. Multiple buying influence is most often found in new-task buying. REQUIRES THE MOST INFORMATION SEARCH ENGINES ARE THE FIRST STEP TO GATHERING INFORMATION

What is the foreign corrupt practices act (1977)?

prohibits U.S. firms from paying bribes to foreign officials. A person who pays bribes, or authorizes an agent to pay them, can face stiff penalties. However, the law was amended in 1988 to allow small grease money payments if they are customary in a local culture. Since 1998, the law applies to foreign firms or foreign individuals who accept payments while in the United States.

What is reminder advertising?

reinforces a favorable relationship tries to keep the product's name before the public. It may be useful when the product has achieved brand preference or insistence, perhaps in the market maturity or sales decline stages. It is used primarily to reinforce previous promotion. Here the advertiser may use soft-sell ads that just mention or show the name—as a reminder. Hallmark, for example, often relies on reminder ads because most consumers already know the brand name and, after years of promotion, associate it with high-quality cards and gifts.

What is just-in-time delivery?

reliably getting products there just before the customer needs them.

What are order takers?

sell to the regular or established customers, complete most sales transactions, and maintain relationships with their customers. After a customer becomes interested in a firm's products through an order getter, supporting salesperson, or through advertising or sales promotion, an order taker usually answers any final questions and completes the sale. ORDER-TAKING is the routine completion of sales made regularly to target customers. It usually requires ongoing follow-up to make certain that the customer is totally satisfied. Producers' order takers—train, explain, and collaborate Wholesalers' order takers—not getting orders but keeping them In retail, salesclerks are usually order takers

What is a major accounts sales force?

sells directly to large accounts—such as Lowe's, Home Depot, Ferguson, or other major retail chains that carry plumbing fixtures.

What are advertising agencies?

specialists in planning and handling mass-selling details for advertisers. Agencies play a useful role. They are independent of the advertiser and have an outside viewpoint. They bring experience to an individual client's problems because they work for many other clients. They can often do the job more economically than a company's own department. And if an agency isn't doing a good job, the client can select another. However, ending a relationship with an agency is a serious decision. Too many marketing managers use their advertising agency as a scapegoat. Whenever anything goes wrong, they blame the agency.

What is the selling formula approach?

starts with a prepared presentation outline—much like the prepared approach—and leads the customer through some logical steps to a final close. The prepared steps are logical because we assume that we know something about the target customer's needs and attitudes.

When a real estate office needs to purchase a new printing system, it will consider the initial price and which of the following?

supply costs, office productivity, and reliability

What is a modified rebuy?

the in-between process where some review of the buying situation is done—though not as much as in new-task buying. This might be a buying decision that has not been done before, or the criteria used to make a purchase decision may have changed. For example, the firm may have new objectives around sustainability that were not part of previous buying decisions.

What is advertising media?

the various means by which the message is communicated to the target market. most common kinds of media—television, digital (computers and mobile phones), print, outdoor, and directories. Marketing managers seek the best medium, which varies with the situation. Effectiveness depends on how well the medium fits with the rest of a marketing strategy—that is, it depends on (1) your promotion objectives, (2) what target markets you want to reach, (3) the funds available for advertising, and (4) the nature of the media, including whom they reach, with what frequency, with what impact, and at what cost. Medium should fit promotion objectives Match your market with the media Select media to zero in on specific target markets

What is product advertising?

tries to sell a product. THREE CATEGORIES: pioneering, competitive, and reminder—which focus on getting consumers to know, like, and remember something.

What is a prepared sales presentation?

uses a memorized presentation that is not adapted to each individual customer. This approach says that a customer faced with a particular stimulus will give the desired response—in this case, a yes answer to the salesperson's prepared statement, which includes a close, the salesperson's request for an order.

What is institutional advertising?

usually focuses on the name and prestige of an organization or industry. It may seek to inform, persuade, or remind. Its basic objective is to develop goodwill or improve an organization's relations with various groups—not only customers but also current and prospective channel members, suppliers, shareholders, employees, and the general public. The British government, for instance, uses institutional advertising to promote England as a place to do business. Many Japanese firms, like Hitachi, emphasize institutional advertising, in part because they often use the company name as a brand name. Companies sometimes rely on institutional advertising to present the company in a favorable light, perhaps to overcome Page 395image problems. Other organizations use institutional advertising to advocate a specific cause or idea. Insurance companies and organizations such as Mothers Against Drunk Driving, for example, use these advocacy ads to encourage people not to drink and drive.

What are customer service reps?

work with customers to resolve problems that arise with a purchase, usually after the purchase has been made. Unlike other supporting sales activities, which are needed only in certain selling situations, every marketing-oriented company needs good people to handle customer service. Customer service is important to both business customers and final consumers. There are times when a customer's problem simply can't be resolved without a personal touch. The salespeople who promote a customer's next purchase by being sure that the customer is satisfied with a previous purchase.