BNAD 303 Exam 3?
category management
A retail strategy of placing products in specific areas of store
IMC Promotional Mix
Advertising, direct marketing, internet marketing, sales promotion, public relations, personal selling
service
An intangible product that involves a deed, a performance, or an effort that cannot be physically possessed
experience qualities
Attributes, such as taste, satisfaction, or pleasure, that can be assessed only during purchase and consumption of a service
Customer Characteristics
Consumer market or business market?
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?
Convenience stores
Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?
Exclusive
Safety Stock
Extra inventory that a company holds
Strategic issues
Location, store image, category management
marketing intermediaries
Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products
discount stores
Self-service, general-merchandise stores that offer brand-name and private-brand products at low prices
off-price retailers
Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
supercenter
Stores that combine supermarket and discount store shopping in one location
Perishability
Unused service capacity from one time period, cannot be stored for future use
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?
Warehouse club
key player in client based relationships
Word of mouth
sales promotion
activities that support advertising and personal selling free samples rebates coupons
retailer
an organization that purchases products for the purpose of reselling them to ultimate consumers
credence qualities
attributes that customers may be unable to evaluate even after purchasing and consuming a service
Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.
creating awareness
Dentists find it difficult to attract customers because many customers cannot distinguish whether or not the product offered is beneficial. This aspect of the dentist's product is called ____ quality.
credence
service quality
customers' perceptions of how well a service meets or exceeds their expectations
In general, differences between goods and services are determined by the
degree of tangibility.
Environmental Forces
economic considerations, technology, and government regulations, trade agreements
Specialty Retailers
emphasize narrow and deep assortments
food retail
focus is primarily on food items including produce, dry goods, dairy and meats
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to
franchising.
Competition
high or low
Brittany recently moved to a new city and is trying to find a new mechanic to do maintenance and repair on her car. She visits several places to judge their overall appearance, cleanliness, and organization and finally chooses a mechanic. Brittany was trying to overcome the ____ aspect of services.
intangibility
During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ____ in the communication process.
noise
channel cooperation
occurs when producers, wholesalers, and retailers depend on one another for success
General Merchandise Retailers
offer a variety of product lines, stocked in considerable depth
Advertising
paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media
Michael is planning a promotional program for AirFam. AirFam is a supplier of new energy-saving engines used to produce air conditioners. His company needs to promote these engines to manufacturers of air conditioners, so he is most likely to use ___, because it provides immediate feedback. The disadvantage is that it is _____ than advertising to reach one customer.
personal selling; more costly
direct marketing
phone, internet, nonpersonal media
Consumers receive the benefits of place utility when
products are available in locations where consumers want to buy them.
Product Attributes
quality, features, style and design
An advertisement from a ski lodge extolling the benefits of a summer getaway in the mountains uses promotion to
reduce sales fluctuations.
Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)
retailer.
When Sophie buys organic produce for her household using a channel with only one intermediary, that intermediary is classified as a
retailer.
An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is
sales promotion.
channel conflict
self interest creates misunderstanding about role expectations of channel members
search qualities
tangible attributes that can be judged before the purchase of a product
Services are usually provided through ____ directed at people or objects.
the application of human or mechanical efforts
order lead time
the average time lapse between placing the order and receiving it
Ashley is currently working on a video to introduce a new line of athletic wear for women. She is using signs and symbols to represent the concept and meaning of the new athletic wear. Ashley is most likely working on the ____ for this promotional video.
the coding process
customer contact
the level of interaction between provider and customer needed to deliver the service
Inseparability of production and Consumption
the quality of being produced and consumed at the same time.
usage rate
the rate at which inventory is sold
nonstore retailing
the selling of products outside the confines of a retail facility
3 types of specialty retailers
traditional category killer off-price retailer
Traditional Advertising
tv, radio, billboard, magazine...
Reorder point=
(order lead time x usage rate) + safety stock
Pricing should consider:
-Consumer price sensitivity -Nature of the transaction -Costs
exclusive distribution
-Uses a single outlet in a fairly large geographic area to distribute a product -For products purchased infrequently, consumed over a long period of time, or requiring service and information -Only authorized dealers are used
intensive distribution
-Uses all available outlets to distribute a product -For most convenience products -Multiple channels may be used
selective distribution
-Uses only some available outlets to distribute a product -For shopping products -Desirable when a special effort is important to customers
Services as a percentage of US GDP
70%
Franchising
A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.
category killer
A very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability (home depot, lowes, staples, Petco)
Client based relationships
Interactions that result in satisfied customers who use a service repeatedly over time
Types of organization
Large or small
Which retail store invests the most in atmospherics?
Neiman Marcus
personal selling
Paid personal communication that seeks to inform customers and persuade them to buy products in an exchange situation
Which of the following is the best example of a high-contact service?
Plastic surgery
Number one service job
Retail Sales
channel power
The ability of one channel member to influence another member's goal achievement
Development of services
The characteristics of services create marketing challenges and opportunities
channel captain
The dominant leader of a marketing channel or a supply channel
reorder point
The inventory level that signals the need to place a new order
Intangibility
The major characteristic that distinguishes a service from a good, cannot be physically possessed
transportation
The movement of products from where they are made to intermediaries and end users
order processing
The receipt and transmission of sales order information
marketing channel
a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain
department store
a large retail store organized into departments offering a variety of merchandise
direct-response marketing
a type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders
A general-merchandise retailer offers
a variety of product lines that are stocked in depth.
Rob Stevens is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.
agents
Retailing
all transactions in which the buyer intends to consume the product through personal, family, or household use
buzz marketing
an attempt to incite publicity and public excitement surrounding a product through a creative event
Michael's, PetSmart, and Staples are all examples of
category killers.
Vertical Integration
combines two or more stages of the marketing channel under one management
Horizontal Integration
combining organizations at the same level of operation under one management
Overall channel goals and individual channel member goals cannot be achieved together without
cooperation.
Integrated Marketing Communications
coordination of promotion and other marketing efforts for maximum impact
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n)
department store.
Inventory Management
developing and maintaining adequate assortments of products to meet customers needs
direct marketing
direct connections with carefully targeted consumers
A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation is
electronic data interchange.
Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to
encourage product trial.
Supply Chain Management
goal is to achieve optimal levels of efficiency and service
The fact that the first massage Gretchen gives each day is better than the last massage demonstrates the ____ of services.
heterogeneity
To expand the number of its retail outlets in the Washington, D.C. area, Whole Foods bought out a small chain of organic food stores in northern Virginia. This type of integration is called
horizontal.
Symbols such as the Travelers' Financial Services umbrella are designed to help customers overcome the ____ of services.
intangibility
The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines
integrated marketing communications.
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location.
Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers.
According to your text, one perspective from which to view services is as a ____ targeted at a(n) ____.
performance; audience
The fact the services cannot be inventoried and then sold at a later date is called
perishability.
Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on
personal selling.
Service Retailing
sells services rather than products
Stockouts
shortages of products that can result in loss of customers
Fragile products that require special handling are more likely to be distributed through
shorter channels.
extreme value retailers
small discount stores often in lower income neighborhoods or towns
service retail
some physical product matched with a service or no physical product at all and only service
A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a
source
traditional specialty retailers
stores that carry a narrow product mix with deep product lines (gap, foot locker)
JIT (just in time)
supplies arrive just when needed for production or resale
Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of
supply chain management.
heterogeneity
variation in quality
Benetton, a leading manufacturer of knitwear in Italy, expanded its operations to include retail outlets in the United States and South America. This type of channel is called
vertical integration.
Stephanie sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Stephanie's work, so Stephanie redoes the job at her own expense because she knows how powerful ____ is (are) for services and wants to stay in business.
word-of-mouth communication