MKT 350 Test 3
Reasons for Growth in Services
-Increasing Affluence -More Leisure Time -More Female Participation in Workforce -Longer Life Expectancy -Greater Complexity of Products -Greater Complexity of Life -Greater Concern for Environment -Technology Growth
Channel of Distribution
A channel of distribution, or group of interrelated intermediaries (middlemen) who direct products to consumers.... any series of firms or individuals who participate in the flow of products from producer to final user or consumer Two major types of intermediaries: Merchants—take title to merchandise and resell it and Agents and Brokers who receive a fee or commission for expediting exchanges.
Characteristics of Digital Marketing
Addressability -ability to identify customers before they make purchase and when they return (cookies to personalize) Interactivity -Can interact with customers in "real time. (Community) Accessibility -Ease with which we can access information. (Google it) Connectivity -Social media, Review sites, crowdsourcing, reviews Control -Consumer controls—Permission based marketing
Virtual Sites/ Gaming
Allows new and different ways for marketers to connect with customers. Virtual technology for meetings/recruiting
Services Defined
An intangible product involving a deed, performance or an effort that cannot be physically possessed. Can be provided through human or mechanical efforts.
Facilitating Agents
Are not channel members but provide limited services to channel members... Public Warehouses Finance Companies Ad Agencies Transportation Companies Trade Shows/Marts Factoring Houses
The Armadillo's Revenge is an off-beat steak house that features highway signs, parts of diesel tractor trucks, and billboards as part of the interior decor. Restaurant personal are dressed as paramedics and colorful armadillo posters decorate the ceiling. These surroundings are designed to attract a certain type of target customer. This is referred to as:
Atmospherics
what differentiates from "for profit" marketing?
Bosses (board) don't oversee as directly— More creativity—fewer dollars/less supervision Sometimes controversial More diverse beneficiaries
Which of the following products would probably use the longest channel of distribution?
Chewing gum.
Which of the following would have the greatest width at the retail level?
Coca Cola soda
Aspects of Digital Marketing
Consumer and Business to Business Ability to Share Information-Wikis, Blogs, Social Networking, You Tube, Websites themselves Rapid Response, Expanded Customer Service, Reduced Costs and Reduced Geographic Barriers
A channel of distribution is a group of individuals and organization that:
Directs the flow of products from producers to customers.
Channel Conflict
Dual Distribution issues: Gray Marketers (diverters) Freeriders disagreements among marketing channel members on goals, roles, and rewards - who should do what and for what rewards
If a manufacturer uses UPS to deliver a rush package to a retailer, UPS is a\an:
Facilitating agent.
If some merchants in the Battlefield Mall refuse to pay their mall association dues, this may lead to vertical channel conflict.
False
One reason that franchising is growing so rapidly is that franchise agreements only loosely describe the franchisor's and franchisee's respective rights and obligations, giving both considerable competitive flexibility in management decisions.
False
The retailer is usually in an excellent position to:
Gain feedback from consumers.
Most Popular Search Engine
Channel Integration
Horizontal Integration—Act of acquiring other operations at same level of channel ie., Safety buys Kroger AT&T buys MCI Vertical Integration-Combining two or more levels of marketing channels..Wal-mart buys a manufacturer or Ann Taylor develops retail outlets....
Unique Characteristics of services
Intangibility Inseparability of production & consumption Perishability Heterogeneity Client-based relationships Customer contact
Sam's Widgets used to be available everywhere. But, as Sam became more successful, he specialized in more expensive widgets that not every household could afford. Accordingly, Sam reduced the number of Widget outlets to a few in each town and gave more Widget business to his dealers who proved they could support the product well. Sam is moving from which kind of distribution strategy to which other kind?
Intensive to selective.
Types of Distribution
Intensive—Widely distributed, convenience products Selective—Shopping products, limited distribution in selected market Exclusive—Specialty products, singular distribution in selected area
A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called:
Just-in-time (JIT)
Vertical and horizontal integration/expansion are carefully scrutinized for legality by the federal government. The main concern here is for:
Lessening of competition.
Relationship of Marketing and IT
Marketing is the slick body of the car, but IT is the engine! IT department is your friend
Social Media Trends
Mobile Marketing Viral Marketing Apps Facebook Twitter Pinterest YouTube Instagram Linked In
Mattie went shopping for a new pair of Levi jeans yesterday. She saw jeans at a department store priced from $45 to $59, but she chose not to buy any because she thought they were too expensive. On her way home she passed a stand where a man was selling Levi jeans for $20 a pair, and she bought two pairs from him. The sign in front of his stand announced that he had bought the jeans from a retailer who had gone out of business. Mattie's jeans were being sold:
On the gray market.
Dual Distribution
Operating through more than one channel I.e, Barnes and Noble with "Brick and Mortar" stores and Internet site.... Coke—Vending Machines, Corporate, Distributors
A concert is given for which 5,000 seats remain unsold. The impossibility of saving those seats for sale at another time is related to which characteristic of services?
Perishability
Push vs. Pull
Push: the idea that marketers are attempting to push their products at consumers. Common sales tactics include trying to sell merchandise directly to customers via company showrooms and negotiating with retailers to sell their products for them, or set up point-of-sale displays. Pull: to get the customers to come to you, hence the term pull, where marketers are attempting to pull customers in. Common sales tactics used for pull marketing include mass media promotions, word-of-mouth referrals and advertised sales promotions. From a business perspective, pull marketing attempts to create brand loyalty and keep customers coming back, whereas push marketing is more concerned with short-term sales.
How google search works
Relvance, key words
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n)
Retailer
Ways Marketers use the Web to Market
SEO/SEM - Search Engine Optimization (Free) PPC - Pay per click Emails/Eblasts Affiliate Marketing Social Networking/Branded Content Website Itself Apps
Experience and Credence Qualities of Service
Search Qualities-tangible attributes Experience Qualities-can be assessed only during/ after consumption Credence Qualities-customer may be unable to evaluate even after consumption[
Ethical/Legal Issues
Security Children and the Internet (COPA) Privacy Spam-unsolicited E-mail Online Fraud Intellectual Property/File sharing
Because of complaints that, depending on the bartender, the drinks being served in the Sea Breeze Hotel were either too weak or too strong, the manager installed a computerized bar that mixed all beverages. This was a response to problems associated with service:
Standardization/heterogeneity
E-Marketing
Strategic process of creating, distributing, promoting and pricing products for targeted customers in the virtual environment of the Internet and beyond.
According to class lecture/notes, 70% of customers research a product online regardless of where they make their final purchase.
True
Approximately 80% of people will not look past the first page of a search. If they don't find what they are looking for in the first few items that pull up, they will tend to refine their search.
True
Merchant wholesalers assume risks of ownership.
True
The Web is sometimes referred to as a pull medium because customers determine which Web sites they visit.
True
Two ways to pull up higher in the organic search rankings is through appropriate use of key words and linking.
True
Whereas the marketing channel is a group of interrelated organizations that direct products to customers, physical distribution deals with physical movement and inventory holding both within and among intermediaries
True
Wholesalers may provide marketing activities for those above and below them in the marketing channel.
True
You can "eliminate the middleman" but you can't eliminate the middleman's functions.
True
Digital Marketing
Uses all digital media to develop communication and exchanges with customers.
If a wine maker decides to buy a bottle labeling operation, it would be an example of:
Vertical integration
Structure of Channels
Vertical—Length of Channel Short channels, more control/contact with customers Long channels Horizontal—Number of participants of the same type at a given level of channel. i.e, Toy Industry—Manufacturers—Tyco, Mattel, Hasbro, Ty Retailers-Toys R Us, Wal-mart, Kaybee
Nonprofit Marketing
Whereas the chief beneficiary of a business enterprise is whoever owns it or has stock in it, in theory, the only beneficiaries of a nonprofit organization are its clients, its member or the public at large.
The salvage value of unsold services is:
Zero.
Spam
unsolicited email