Marketing Quiz #2
Google uses a social responsibility marketing program called " Made with Code". Why do they go through all the trouble to develop it and spend the money?
- girls start out with a love of science and technology but lose it somewhere along the way, so google wants to help them encourage their passion - jobs in computer science will be among the highest paid jobs over the coming decade, yet women are underrepresented in the roles that make technology happen
CHAPTER 10
CHAPTER 10
international pricing
adjusting prices for international markets
What are the six stages of Buyer - Readiness"?
1. identify the target audience 2. determine the communication objectives 3. design a message 4. choose the media through which to send the message 5. select the message source 6. collect feedback
CHAPTER 11
CHAPTER 11
CHAPTER 12
CHAPTER 12
Psychological pricing is used when a store practices "even / odd pricing". What do they do?
Psychologists argue that each digit has symbolic and visual qualities that should be considered in pricing. 8 is round and even and creates a soothing effect, whereas 7 is angular and creates a jarring effect.
What is a Wholesaler and what vital role do they play in the economy?
Wholesalers are firms engaged primarily in wholesaling activities
What is a "category killer" in retailing?
a giant specialty store that carries a very deep assortment of a product line (Home Depot, Best Buy, Petco)
price elasticity
a measure of the sensitivity of demand to changes in price
How does the selling models of Lyft and Uber threaten the existing car and taxi industry marketing channel strategy?
by offering bester customer experience at lower fees-Lyft's app lets passengers hail the nearest car from any location and then track it on a map as it approaches, it gives accurate estimate of the fare in advance, and then they exit the car and walk away
product bundle pricing
combining several products and offering the bundle at a reduced price
What is Vertical Integration of your channels, "Corporate VMS"? Describe the issues of Direct versus Indirect channel management.
corporate VMS integrates successive stages of production and distribution under single ownership vertical marketing system VMS consists of producers, wholesalers, and retailers acting as a unified system
Why are international prices hard to determine and what are the factors that go into setting them?
economic conditions, competitive situations, laws and regulations, and the nature of the wholesaling and retailing system
What is "Experiential Retailing"?
experiential retailing create retail stores into environments to be experienced by the people who shop in them
Why do companies use a "franchising" strategy and how does it help a company to grow? What is the downside of franchises?
franchise systems are a contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system
Describe the difference between an exclusive, selective or intensive distributor.
intensive distribution- a strategy in which they stock their products in as many outlets as possible exclusive distribution- the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories selective distribution- the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products
What is Third-Party logistics (3PL) and why have these companies mushroomed over the past 20 years?
it is an independent logistics provider that performs any or all functions required to get a client's product to the market. They have mushroomed because the 3PL's take over all logistic control.
What is the difference between manufactured- sponsored retailer, wholesalers and service-firm-sponsored retailers?
manufacturer-sponsored retailer franchise system: example, Ford and its network of independent franchised dealers manufacturer-sponsored wholesaler franchise system: Coca-Cola licenses bottlers in various world markets that buy Coca-Cola syrup concentrate and then bottle and sell the finished product to retailers locally service-firm-sponsored retailer franchise system: Sonic Drive-Ins has more than 3600 franchisee-operated restaurants in the US
There are three methods of determining advertising budgets - % of sales, competitive-parity and objective/ task method. How do they vary in approach?
percentage-of-sales method: setting company's promotion budgets at a certain percentage of current or forecasted sales. The budget varies with year-to-year sales. competitive-parity method: setting a company's promotion budget to match competitor's outlays object-and-task method: the company sets its promotion budget based on what it wants to accomplish with promotion
allowance
promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way
What is the difference between "push' and "pull" strategies for advertising campaigns?
push: involves "pushing" the product through marketing channels
discount and allowance pricing
reducing prices to reward customer responses such as paying early or promoting the product
How does one practice Cost-Based Pricing?
setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of effort and return for risk
What is the role and the future of a "shopping center" and a "lifestyle center"? What is "retail convergence" and why is it so highly competitive?
shopping center: a group of retail businesses built on a site that is planned, developed, owned and managed as a unit lifestyle centers are smaller, open-air malls with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, etc. Retail Convergence is the merging of consumers, products, prices and retailers. This convergence means greater competition for retailers and greater difficulty in differentiating the product assortments of various types of retailers.
promotional pricing
temporarily reducing prices to spur short-run sales
Why is "Competition-based pricing" method often preferred by the sales function? What are the pros and cons?
the goal is to set prices according to relative value, so if a company creates greater value for its customers, higher prices are justified
What is the purpose of the "low-price fighter brand"? How are "store brands" used to serve this function?
they add a lower-price item to the line or create a separate lower-price brand. This is necessary if the particular market segment being lost is price sensitive and will not respond to arguments of higher quality
Why is the choice of marketing channels critical in maintaining your brand image / essence?
they should all work together and run smoothly
Gillette is very challenged in their market today on price and discounting competitors. What is their method and how does target marketing contribute to their strategy of what to charge?
they use captive product pricing, setting a price for a product that must be used along with the main product. Gillet has long sold razor handles at low prices and made its money on higher-price replacement blade cartridges
Why is a company constantly re-evaluating their channel strategy? Economics, Control and Adaptability all play a role.
using economic criteria, a company compares the likely sales, costs, and profitability of different channel alternatives. They must also consider control issues using intermediaries means giving them some control over the marketing of the product. Finally, adaptability criteria consists of channels having long-term commitments, and the company wants to keep the channel flexible so that it can adapt to environmental changes.
elastic demand
when demand changes greatly with a small change in price
inelastic demand
when demand hardly changes with a small change in price
What is "Dynamic pricing" and how does Target implement it?
when in the store, all prices listed in the app resemble the prices listed in the store, but outside of the store is where Target must compete with other online stores and the rest of the world, and the prices there mimic those of Target.com
Give some examples of "channel conflict" and how do "power" relationships play in channel management. What is "horizontal" conflict and "vertical" conflict?
Horizontal conflict occurs among firms at the same level of the channel Vertical conflict conflicts between different levels of the same channel
Why has the warehouse retailer model been so success, like COSTCO and SAM's Club?
In exchange for the bare-bones environment, they offer ultraslow prices and surprise deals on selected branded merchandise
Who within an organization should set price? Product Developers, Finance, Sale, Marketing?
In most cases, prices are set by the marketing department. This is because the price of a product affects how potential customers view a product or service.
How does APPLE use a "premium price" strategy to highlight their value?
It has charged the highest prices and still captured market-leading revenue shares in most of its product categories because when you buy an apple product, you buy the "Life-feels-good" experience and created products customers wanted even before the customers themselves knew they did.
What is a "customer value delivery network" and how do marketing channels play a key role in satisfying consumer needs?
It means that each channel member and level add value for the customer. So, designing the marketing channel starts with finding out what target consumers want from the channel.
market penetration pricing
setting a low price for a new product in order to attract a large number of buyers and a large market share
captive product pricing
setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console
What are "Target-Profit Pricing" or "Break-Even Analysis" and how do determine price?
setting a price to break even on the cost of making a marketing a product, or setting a price to make a target return
Customer "value-based pricing" is best determined in what whom and how?
setting price based on buyer's perceptions on value rather than on seller's cost, and before they set a marketing program
How did the Ritchie Brothers establish price for their used Machinery and what did they do to increase that price? What is the advantage for the Seller when they use "auction-pricing"
-Pressure to bid if someone took what you wanted -Very tense if someone said they need you to get it -Fast-paced because they don't have time to think -Gambling in a way to see if you should jump in now -Group things together so you're betting on choice -Bid catcher would kind of egg you on to try to go higher, more prone to spending more than you would -They would throw a price out there to try to get you to bid close to it
What has changed and is new in today's "Marketing Communication Mix" that requires companies to adopt new tactics and strategies?
-consumers: they are better informed and more communications empowered in this digitally connect, mobile age -marketing strategies: as mass markets have fragmented, marketers are shifting away from mass marketing -digital technology: the digital age has spawned a host of new information and communication tools. digital and social media have given birth to a more targeted, social, and engaging marketing communications model
Name the five types of activities in the "Promotion Mix" and what roles do they play as they execute a Marketing program?
1. Advertising: any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor 2. Sales Promotion: short-term incentives to encourage the purchase or sales of a product or service 3. Personal selling: personal customer interactions by the firm's sales force to engage customers, make sales, and build customer relationships 4. PR: activities designed to engage the company's various publics and build good relations with them 5. Direct and Digital Marketing: engaging directly with carefully targeted individual consumers and customer communities to both obtain and immediate response and build lasting customer relationships
What is a Marketing Channel? Give some examples of types of channels used by markets.
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. Example: Enterprise Rent-A-Car revolutionized the car-rental business by setting up off-airport rental offices
discount
A straight reduction in price on purchases during a stated period of time or of larger quantities
A "Mega-retailer" because of the growth of new Retail technology. Give a few examples of stores are doing to implement new store-based technologies? This includes AR and VR?
Amazon merge the physical and digital worlds through its futuristic Amazon Go stores: shoppers imply enter an Amazon Go store with an app, grab items off the shelves, and walk out without waiting in line. Another example is beacon technology, bluetooth connections that greet and engaged customers via their smartphones as they shop around the stores. For example, Target uses this for shoppers as it shows their locations on a map as they move through the store, and it also shows the locations of items on their shopping list. Additionally, AR and VR are used: at North Face's Manhattan store, customers can use VR headsets that transport them to remote hiking, climbing, or other locations while using NF gear.
Describe the current strategies of Amazon and Walmart in their current Price War for Online Supremacy? What approach and competitive strategy are each one using?
Amazon- adding bricks and mortar to its powerful online empire. For example, it acquired Whole Foods, opening tech-forward physical bookstores and futuristic Amazon Go grocery stores, and formed a partnership with Kohl's, all to employ large does of digital, online, and mobile technology that help Amazon connect the digital and physical worlds. Walmart has invested in its omni-channel capabilities. It upgraded its websites and mobile apps to improve the online shopping experience. It now offers free two-day shipping without an Amazon-Prime-like membership fee and same-day delivery.
What does the term "Green Retailing" and how is it be implemented by IKEA?
At the most basic level, most large retailers are making their stores more environmentally friendly through sustainable building design, construction, and operations. For example, under its "People & Planet Positive" sustainability strategy, home furnishings retailer IKEA's long-term goal is to become 100 percent sustainable. IKEA has committed to owning and operating 416 wind turbines and has installed 750,000 solar panels to power its stores. In its stores, IKEA uses only energy efficient LED lighting. Most stores also sort food waste from in-store customer restaurants for composting or send it to treatment centers where it is turned into animal feed or biogas to fuel cars and buses.
Red Nose day is an IMC campaign to fit hunger. What are the benefits both internal and external for Walgreen in conducting this campaign?
As the only outlet where official Red Nose Day noses can be purchased, it plays an essential role in driving promotional content and in moving people to donate. Walgreens generated 180 million media impressions and 267,000 engagements for Red Nose Day. By focusing their efforts on initiatives like Red Nose Day, they create a unique and powerful opportunity for our customers and the communities they serve to come together to help make an impact on a worthwhile cause like child poverty.
Microsoft Azure is a potential disinter-mediator as a cloud application. How are they offering change and how do they partner with large companies?
Azure's biggest advantage derives from its partnership-building capabilities. When clients sign on with Azure, they gain immediate access to a sales team that pitches in and partners with them to help them get the most out of the cloud services
Gavina Coffee uses 11 different types of channels to help them grow. What are the variety that they use in the 20 states they sell their products?
Bring them here to learn on to make and serve coffee They partner with mcdonalds, kroger, safeway and a bunch of other supermarkets They bing their customers (partners) value Marketing messages: heritage, family, high quality, sustainability, fair labor Brands: Don Francisco, Cafe La Lelave, Gavina Gourmet, House Brands Supply chain partners: Growers, Transporters Channel Partners: Retail, National Chains, Distributors, Dealers, Brokers Importance of Channel Relationships
CHAPTER 13
CHAPTER 13
CHAPTER 14
CHAPTER 14
"Disintermediation" is the constant concern of players in the marketing channel. When does it occur and give some examples of how companies fight it.
Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones Stanley Black & Decker not selling their products on their website, just directing them to places who sell them
How does a franchise represent a marketing channel for a company and what is good and bad about it as a way of doing business?
Distribution channel decisions often involve long-term commitments to other companies. When firms set up distribution channels through contracts with franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or online sites if the conditions change.
Why is your channel strategy so important in developing an International marketing program?
Each country has its own unique distribution system that has evolved over time and changes very slowly. These channel systems can vary widely from country to country. Thus, global marketers must usually adapt their channel strategies to the existing structures within each country.
How is a "Price" created for each product and how is it validated by the marketplace?
Its formed by the customer's perceived value - the sum of all the values that customers give up to gain the benefits of having or using a product or service It's the only element in the marketing mix to produce revenue, validated by the marketplace.
Peloton gets a strong premium price for their product and rarely discounts. Their competitors have created a cheaper alternative for their exercise equipment. How does Peloton counter them?
Joining peloton provides benefits that customers can't get from either stand-alone bikes or in-person spinning studios: owning a premium bike, workout and scheduling convenience, access to quality content, and membership in a dynamic, thriving community
What is a "Limited- service Wholesaler" and give three examples like rack jobber, drop shippers?
Limited-service wholesalers offer fewer services than full-service wholesalers. Limited-service wholesalers include cash-and-carry wholesalers, rack robbers, drop shippers
Lululemon has 1,600 ambassadors represent the brand. How come their program has been so successful?
Lululemon recruits people who are dedicated to "the sweatlife: sweat, grow, and connect." The ambassadors represent the brand to customers and nurture impact in their communities but also give valuable feedback to Lululemon
Why must the Price Demand curve be studied before any strategy or decisions are made on price?
Most companies try to measure their demand curves by estimating demand at different prices. If the company faces competition, its demand at different prices will depend on whether competitors' prices stay constant or change with the company's own prices.
Pharma pricing model is often criticized. What are the two sides of the argument for why Pharma prices are set the way they are?
On one side, critics claim that pharmaceutical companies are free to practice monopoly pricing, sometimes resulting in unfair practices or even seemingly outlandish cases of pricing. On the other hand, industry proponents point out that over the years the drug companies have developed a steady stream of medicines that transform people's lives. Developing such new drugs is risky and expensive, involving legions of scientists, expensive tech, and years of effort with no certainty of success.
Trader Joe's has a new Pricing Mix and marketing strategy that changes the nature of pricing decisions. How do they price? Good-Value or value-added pricing?
Operate under 'operational excellence': they offer a price-value equation. It works to reduce costs and create a lean and efficient value delivery system. It serves customers who want reliable, good-quality products or services but want them cheaply and easily.
The discipline of "Content Marketing" requires many creative people to build the new messaging communication method. They must succeed over paid, owned, earned and shared communication channels. How do they do this?
Paid media: promotional channels paid for by the marketer, including traditional media (TV, radio, print) and online and digital media (paid search ads, web and social media display ads, mobile ads, or email marketing) Owned media: promotional channels owned and controlled by the company, including company websites, corporate blogs, owned social media pages, etc) Earned media: PR media channels, such as television, newspapers, blogs, online video sites and other media not directly paid for or controlled by the marketer but that includes the content because of viewer, reader, or user interest
How does "RFID" and IOT technology make an integrated logistics management supply system simpler and inventory management more accurate?
RFID is a form of "smart tag" technology, by which small transmitter chips are embedded in or place on products, packaging, and shipping pallets for everything. Such smart tags can make the entire supply chain-which accounts for up to 75 percent of a product's cost-intelligent and automated.
Describe how good supply chain management systems work to deliver marketing value for the consumer.
Raw materials, productive inputs, and factory capacity should serve as the starting point for market planning. Planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value.
Segmented pricing" is used to pass along lower prices by segment, geography, demographic, age group or sex. Is this fair and why do they do it?
Segmented prices should reflect real differences in customers' perceived value. Consumers in higher price tiers must feel that they're getting their extra money's worth for the higher prices paid. Otherwise, segmented pricing practices can cause consumer resentment.
How does a consumer use "Showrooming" to get the best price? Why do retailers hate the practice?
Showrooming: consumers visiting stores to see an item, compare prices online while in store, and then requested price matches or simply buy the item online at a lower price. Best Buy embraced it by combining in-store and online capabilities through their omni-channels that online-only retailers can't match.
Describe the seven different types of Retail Store models and what they focus on as their business models?
Specialty store: a store that carries a narrow product line with a deep assortment, such as apparel store, sporting-goods stores, furniture stores, florists, and bookstores (Sephora) Department store: a store that carries several product lines-typically clothing, home furnishings, and household goods-with each line operated as a seperate department managed by specialist buyers or merchandisers (Macy's) Supermarket: a relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer's total needs for grocery and household products (Kroger) Convenience store: a relatively small store located near residential areas, open 24/7, and carrying a limited line of high-turnover convenience products at slightly higher prices (7-Eleven) Discount store: a store that carries standard merchandise sold at lower prices with lower margins and higher volumes (Walmart, Target, Kohls) Off-price retailer: a store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail (ex: factory outlets, TJ Maxx, Costco) Superstore: a very large store that meets consumers' total needs for routinely purchased food and nonfood items (Walmart Super center, SuperTarget)
How does the Intuit "Giant Story" Advertisement fit in a content marketing strategy?
The Giant Story campaign positions QuickBooks, Mint and TurboTax as an ecosystem-as a go-to suite of products that work on their behalf and deliver on Intuit's "powering" prosperity promise. It created a content-rich campaign spanning a full slate of traditional and digital platforms
Aldi's has implemented a unique pricing strategy. What do they do in designing their stores?
The give customers an assortment of good-quality items at every-day extra-low prices. They operate small, energy saving stores, they get a small selections, bring their own bags, bag their own groceries, and put their own shopping cart away.
What are the latest trends in wholesaling as technology changes and disintermediation occurs?
The industry remains vulnerable to one of its most enduring trends-the need for ever-greater efficiency. Tight economic conditions and retailer woes have led to demands for even lower prices and the winnowing out of suppliers who are not adding value based on cost and quality.
Bass Pros Shop and Jungle Jim's are two Retail business models that represent "experiential retailing" shopping.
The store's atmosphere is another important element in the reseller's product arsenal. Retailers want to create a unique store experience, one that suits the target market, enhances brand positioning, and moves customers to buy, so retailers practice experiential retailing
What is Walmart's strategy to beat their rivals, especially Amazon?
Walmart has invested heavily to build its omni-channel capabilities: -it has upgraded its websites and mobile apps to improve the online shopping experience -aligned with Google for voice shopping via Google Home -pay $3.3 billion for innovative online discount retailer Jet.com and then scooped up a slew of trendy niche sites like Bonobos
What is a "service retailer" and what is their role or mission?
a retailer whose product line is actually a service, including hotels, banks, airlines, restaurants, colleges, hospitals, etc.
What is Cost-Plus method of pricing?
adding a standard markup to the cost of the product
dynamic pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations
psychological pricing
adjusting prices for psychological effect
geographical pricing
adjusting prices to account for the geographic location of customers
segmented pricing
adjusting prices to allow for differences in customers, products, or locations
What is a "corporate" chain, a retail cooperative and a "voluntary" chain in retail?
corporate chain: two or more outlets that are commonly owned and controlled retail cooperative: group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts voluntary chain: wholesaler-sponsored group of independent retailers engaged in group buying and merchandising
What is Omni-channel retailing? Why is it so important in today's environment for survival?
creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping its important in today's environment because consumers are increasingly omni-channel buyers, who buy in-store and online
Price Fixing
sellers setting a price after talking to competitors
Predatory Pricing
selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business
Market-skimming pricing
setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
reference price
the price against which buyers compare the actual selling price of the product and that facilitates their evaluation process
