MKT 300 Exam 4 (final)

Brokers and agents both:

- Negotiate purchases and expedite sales in exchange but do not take title to products - Perform a limited number of services in exchange for a commission, which generally is based on the product's selling price - Know their markets well and often form long-lasting associations with customers - Enable manufacturers to expand sales when resources are limited, benefit from the services of a trained sales force, and hold down selling costs

Analysis includes

- locations - demographics - lifestyle - consumer attitudes -WHY THEY BUY

advantages of trade sales promotion

- provide an incentive for resellers to handle new products - achieve temporary price reductions - Stimulate purchase of items in larger-than normal quantities

Advantages of Personal Selling

-Provides detailed explanation/demonstration of product -Message can be varied according to motivations of each customer -Can be directed only to qualified prospects -Can purchase personal selling in small increments -Most effective promotion form in obtaining sale and satisfying customer

Integrated Marketing Communications (IMC)

-coordination of all promotion and other marketing efforts for maximum informational and persuasive impact on customers -IMC promotes efficiency/effectiveness -Mass media is used -New promotional tool are a lot more targeted

Types of Wholesalers

1. Merchant wholesalers 2. Full service wholesalers 3. General-merchandise wholesalers

Storyboard

A blueprint that combines copy and visual material to show the sequence of major scenes in a commercial

dealer loader

A gift given to a retailer that purchases a specified quantity of merchandise

merchandise allowance

A manufacturer's agreement to pay resellers certain amounts of money for providing special promotional efforts, such as setting up and maintaining a display

free merchandise

A manufacturer's reward given to resellers that purchase a stated quantity of products

scan-back allowance

A manufacturer's reward to retailers based on the number of pieces scanned

feature article

A manuscript of up to 3,000 words prepared for a specific publication

vertical marketing system

A marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers

viral marketing

A strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly

community shopping center

A type of shopping center with one or two department stores, some specialty stores, and convenience stores (MEDIUM)

Advertising

A written or spoken media message designed to interest consumers in purchasing a product or service

Horizontal Integration

Absorption into a single firm of several firms involved in the same level of production and sharing resources at that level

institutional advertising

Advertising that promotes organizational images, ideas, and political issues

product advertising

Advertising that promotes the uses, features, and benefits of products

reminder advertising

Advertising used to remind consumers about an established brand's uses, characteristics, and benefits

Preapproach

All about preparation

sales promotion

An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it

tying aggreement

An agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

franchsing

An arrangement in which a supplier (franchisor) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration.

wholesaler

An individual or organization that sells products that are bought for resale, for making other products, or for general business operations

AIDA

Attention, Interest, Desire, Action

Specialty Retailers

Carry a narrow product mix with deep product lines. They are sometimes called "limited-line retailers"

Identify Prospects

Certain types of promotional efforts aim to identify customers who are interested in the firm's product and are likely potential buyers

contractual vertical marketing system

Channel members are linked by legal agreements spelling out each member's rights and obligations

disadvantage of publicity

Companies do not have control over the message being sent out

being able to explain the value of your product offering is _________.

Critical

competition-matching approach

Determining an advertising budget by trying to match competitors' advertising outlays

Prospecting

Developing a database of potential customers

Warehouse Showrooms (General-Merchandise Retailers)

Facility in a large, low-cost building with large on-premises inventories

create awareness

For an organization that is introducing a new product or a line extension, making customers aware of the product is crucial to initiating the product adoption process

limited-line wholesalers

Full-service wholesalers that carry only a few product lines but few many products within those lines

specialty-line wholesalers

Full-service wholesalers that carry only a single product line or a few items within a product line

superstore

Giant outlet offering all food and nonfood products found in supermarkets, as well as most routinely purchased products

Advantages of Publicity

High credibility and low cost

Encourage Product Trial

If customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to product adoption

manufacturer's agents

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines

merchant wholesalers

Independently owned businesses that take title to goods, assume ownership risks, and buy and resell products to other wholesalers, business customers, or retailers (aka jobber, distributor, assembler, exporter, and importer)

selling agents

Intermediaries that market a whole product line or a manufacturer's entire output

Warehouse Clubs (Wholesale Clubs)

Large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing (COSTCO, SAM'S CLUB)

mail-order wholesalers

Limited-service wholesalers that sell products through catalogs

drop shippers

Limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products

cash-and-carry wholesalers

Limited-service wholesalers whose customers pay cash and furnish transportation

_________ is critical to business success.

Location

Retain Loyal Customers

Maintaining long-term relationships is a major goal of most marketers

marketing intermediaries

Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

_____________ word-of-mouth information is much more likely to spread than positive word-of-mouth info.

Negative

Stimulate Demand

Often through ads and sales promotion, particularly important when using a pull strategy

personal selling

Paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation

straight commission compensation plan

Paying salespeople according to the amount of their sales in a given time period

pull policy

Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel - done primarily through advertising and sales promotion

push policy

Promoting a product only to the next institution down the marketing channel - normally stresses personal selling

customer success manager (CSM)

Provides proactive support to customers to help increase customer value realization over time

product placement

Putting products into TV shows and movies where they will be seen

trade salespeople

Salespeople involved mainly in helping a producer's customers promote a product

sales promotion

Short-term incentives to encourage the purchase or sale of a product or service (coupons)

off-price retailers

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts (MARSHALL'S, TJ MAXX, HOME GOODS)

TRUE/FALSE: if you have a story with your message, you can be very successful as a market

TRUE

sales territories

The customer groups or geographic districts to which an individual sales person or a sales team sells.

Promotion mix

a combination of promotional methods used to promote a specific product

straight salary compensation

a compensation plan in which salespeople or managers receive a fixed amount of compensation for each hour or week they work

selective distribution

a form of distribution achieved by screening dealers to eliminate all but a few in any single area

category killer

a large discount store that specializes in a single line of merchandise and becomes the dominant retailer in its category (dick's, Best Buy, Lowes)

channel captain

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

press conference

a meeting used to announce major news events

publicity

a news story type of communication about an organization and/or its products transmitted through a mass medium at no charge

captioned photograph

a photograph with a brief description of its contents

media plan

a plan that specifies the media vehicles to be used and the schedule for running advertisements

department store

a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers (Macy's, Kohl's, JCPenny)

sales contest

a sales promotion method used to motivate distributors, retailers, and sales personnel through recognition of outstanding achievements

discount store

a self-service general-merchandise outlet that sells products at lower-than-usual prices (Walmart, dollar general, target)

News Release (Press Release)

a short piece of copy publicizing an event or a product

exclusive dealing

a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers

convenience store

a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods

buy-back allowance

a sum of money given to a reseller for each unit bought after an initial promotion deal is over

buying allowance

a temporary price reduction to resellers for purchasing specified quantities of a product

power shopping center

a type of shopping center that combines off-price stores with category killers

lifestyle shopping center

a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores (Avalon or Halcyon)

neighborhood shopping center

a type of shopping center usually consisting of several small convenience and specialty stores (SMALL)

regional shopping center

a type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers (LARGE)

superregional shopping center

a type of shopping center with the widest and deepest product mixes that attracts customers from many miles away (HUGE)

dealer listings

advertisements that promote a product and identify the names of participating retailers that sell the product

reinforcement advertising

advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it

competitive advertising

advertising that attempts to persuade consumers that a product is different from and superior to any other

comparative advertising

advertising that makes specific brand comparisons using actual product names

pioneer advertising

advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

Retailing

all transactions in which the buyer intends to consume the product through personal, family, or household use

disadvantages of trade sales promotion

allows people to early buy more than they need at a discount

flighting advertising schedule

an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising

cooperative advertising

an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer's brand

buzz marketing

an attempt to incite publicity and public excitement surrounding a product through a creative event

retailer

an organization that purchases products for the purpose of reselling them to ultimate consumers

advertising platform

basic issues or selling points to be included in an advertising campaign

arbitrary approach

budgeting for an advertising campaign as specified by a high-level executive in the firm

percent-of-sales approach

budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage

procurement

buying

administered vertical marketing system

channel members are independent, but informal coordination achieves a high level of interorganizational management

The significance of marketing channels

channel selection is critically important determines product availability long term commitments; less flexibility functions must create value!

corporate vertical marketing system

combines all stages of the marketing channel, from producers to consumers, under a single owner

pulsing advertising schedule

combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods

Public Relations (PR)

communication function that seeks to build good relationships with an organization's publics, including consumers, stockholders, and legislators

headline

critical because often it's the only part of the ad that gets read

_______ are critically important in supply chain.

data and technology

primary demand

demand for a product category rather than for a specific brand (ex: got milk?)

selective demand

demand for a specific brand

objective-and-task approach (best, most difficult strategy)

determining campaign objectives and then attempting to list the tasks required to accomplish them

Wearout Effect

effect that happens when over exposed to a stimuli and start to acquire negative feelings towards it

multichannel retailing

employing multiple types of retailing

premium money (push money)

extra compensation to salespeople for pushing a line of goods

2 types of franchises

full franchise limited franchise

general merchandise wholesalers

full-service wholesalers with a wide product mix but limited depth within product lines

Rack jobbers

full-service, specialty-line wholesalers that own and maintain display racks in stores

Distribution

getting a product to the consumer

exclusive distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

environmental monitoring

identifies changes in public opinion affecting an organization

channel member activities

information marketing management assortments, cooperation promotion pricing logistics

Broker

intermediaries that bring the buyers and the sellers together temporarily

agents

intermediaries that represent either buyers or sellers on a permanent basis

truck wholesaler (truck jobber)

limited-service wholesalers that transport products directly to customers for inspection and selection

Restricted Sales Territories

manufacturer grants exclusive sales territory rights to distributors

Market Selling

marketing is the business function that identifies your customers and their needs and want

competitive priorities in marketing channels

may be source of competitive advantage effective and efficient supply chain can sustain a business supply chains driven by firm-established goals focus on the "competitive priorities" of speed, quality, cost, or flexibility as the performance objective

communications audit

may include a content analysis of messages, a readability study, or a readership survey

marketing channel

members of supply chain from producer to the consumer right time right place right quantities customer satisfaction

full-service wholesalers

merchant wholesalers that perform the widest range of wholesaling functions

limited-service wholesalers

merchant wholesalers that provide some services and specialize in a few functions

trade sales promotion methods

methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively

logistics management

moving products and materials

Push and Pull strategies are not _________.

mutually exclusive - most companies use both

Channel Integration

occurs when one business owns the organizations at other levels of the channel

General Merchandise Retailers

offer a variety of product lines stocked in considerable depth mostly "self-service" manufacturer brands private-label brands

combination compensation plan

paying salespeople a fixed salary plus a commission based on sales volume

word-of-mouth communication

personal informal exchanges of communication that customers share with one another about products, brands, and companies

Four Possible Elements of a Promotion Mix

personal selling, public relations, sales promotion, advertising

refusal to deal

producers have the right to choose channel members

new introductory promotion

promotion that informs consumers about a new product

online retailing

retailing that makes products available to buyers through computer connections

continuous advertising

runs steadily throughout the year

consumer sales promotion methods

sales promotion techniques that encourage consumers to patronize specific stores or try particular products (coupons)

support personnel

sales staff members who facilitate selling but usually are not involved solely with making sales

supermarket

self-service store offering complete line of food products and some nonfood products

intensive distribution

stocking the product in as many outlets as possible

Exterior Atmospherics

storefront, displays, entrances

Types of Compensation

straight salary straight commission combination

technical salespeople

support salespeople who give technical assistance to a firm's current customers

advertising appropriation

the advertising budget for a specific time period

Vertical Integration

the combination in one company of two or more stages of production normally operated by separate companies.

supply chain

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

Supply Chain Management

the coordination of all supply chain activities involved in enhancing customer value

advertising campaign

the creation and execution of a series of advertisements to communicate with a particular target audience

supply chain should focus on _______.

the customer

target audience

the group of people at whom advertisements are aimed

approach

the manner in which a salesperson contacts a potential customer

Public Relations

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance

Disadvantages of personal selling

the most expensive element in the promotion mix

geographic distribution

the natural arrangement and apportionment of the various forms of animals and plants in the different regions and localities of the earth.

Frequency

the number of times an individual is exposed to a given message during a specific period

reach

the percentage of the target market that will be exposed to the media vehicle

Closing

the stage in the personal selling process when the salesperson asks the prospect to buy the product

Operations Management

the transformation process that converts resources into finished goods and services

copy

the verbal portion of advertisements

Wholesaling

transactions in which products are bought for resale, for making other products, or for general business operations

PRICE IS THE LAST THIS YOU SHOULD COMPETE ON

true

public relations audit

used to assess an organization's image among the public or to evaluate the effect of a specific public relations program

social audit

used when an organization wants to measure the extent to which stakeholders view it as being socially responsible

team selling

using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts

members of the supply chain MUST create ________.

value

Interior Atmospherics

• lighting • wall decorations • color • floors • fixtures • merchandise displays • signage • layout • smell • temperature • music • video screens • mannequins • cleanliness (restrooms)