Marketing an Introduction - Chapter 9, mkt 327 for exam 3 quiz 13, 14, 15, 16, Marketing Chp. 15, 16, 21, Marketing Ch 9 10 12, MKTG 3433 Exam 2 UARK, MGMT 3433 UARK Exam 2, Marketing 3433 Lezon Test 2, MKTG 3433 UARK Test 2, MKTG 3433 Chapters 9,10,...
Behavioral Evaluation
Assessments of a salesperson's attitude, attention to customers, product knowledge, selling and communication skills, appearance, and professional demeanor
The Product Mix
Assortment of product lines and individual product offerings.
Trademarks
Brand for which the owner claims legal protection.
Manufacturer's brand
Brand name owned by a manufacturer or other producer.
Private brands
Brands offered by wholesalers and retailers.
For which of the following products would their respective manufacturers be MOST LIKELY to use exclusive distribution?
Chanel perfume, Steinway pianos, and Baccarat crystal
Business Products
Goods and services purchased for use either directly or indirectly in the production of other goods and services for resale.
Target Market
Group of people a company believes would be the most active purchaser of its goods and services or most attractive
Target Market
Group of people a firm believes is most likely to buy its goods and services.
Market
Group of people with sufficient purchasing power, authority, and willingness to buy.
Product Lifecycle
Introductory stage -> Growth stage -> Maturity stage -> Decline stage.
Line extension
Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line.
Forms of segmented pricing: Customer-segmented pricing
Different customers pay different prices for the same product or service. (senior, student, adult)
Product-form pricing
Different variations of the product are priced differently but not according to differences in their costs.
Is Consumer Behavior difficult or easy to predict?
Difficult
__________ begins with new-product purchases first by innovators, and then by early adopters
Diffusion of innovation
Federal regulations contain provisions that allow consumers to avoid being called at any time through the __________, and imposes fines for violations.
Do Not Call Registry
Missionary Salespeople
Do not directly solicit orders but rather concentrate on performing promotional activities and introducing new products
Nonrecognition
Final customers do not recognize the brand even though branders may use the brand name for identification and inventory control
infomercials
Television advertising - program length advertisements that take a educational approach to communication with potential customers.
Order taker
processes routine orders or reorders for products that were already sold by the company
Presentation Stage
The core of the order-getting selling process, and its objective is to convert a prospect into a customer by creating a desire for the product or service
Business Cycle
The cyclical 4-stage pattern that the economy has historically followed: -prosperity -recession -depression -recovery
Love/Belonging Needs
The desire to be accepted by people and groups important to the person
Social/Belonging Needs
The desire to be accepted by people and groups important to you
Online Communication
The dialogue that unfolds between the website and its users.
Viral Marketing
The digital version of word-of-mouth marketing: websites, videos, email messages, or other marketing content that is so infectious that customers will want to pass them along to friends
Price adjustment strategies: Geographical Pricing =FOB-origin pricing
The goods are placed free on board (hence, FOB) a carrier. At that point the title and responsibility pass to the customer, who pays the freight from the factory to the destination.
Target Market
The group of people (or organizations) toward whom the firm directs its marketing efforts: -specific demographic groups -specific geographical regions -specific organizations
promotion clutter
The growing use of sales promotion has resulted in consumers increasingly tuning out promotions, weakening their ability to trigger immediate purchase.
Relationship Experience
The level of usage of a service or product or brand that provides the consumer with want or need satisfying information
order taker
processes routine orders or reorders for products that were already sold by the company
Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing.
True
Direct Channel
producer and ultimate consumers deal directly with each other. many products and services are distributed this way.
consumer promotions
sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships
business promotions
sales promotion tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople
When Lean Cuisine promotes the quality, taste, and calorie contents of its line of frozen meals, it is attempting to develop
selective demand
Which is the most common form of distribution intensity used today?
selective distribution
In classifying social media, the degree to which a person's thoughts, feelings, likes, and dislikes are made public is referred to as
self-disclosure.
Among recent retailing innovations is Zipcar. With this service, you sign up, receive a Zipcard, book online, walk to a car, scan your card across a reader on the windshield to open the doors, and drive away. This would be considered a __________ retailer.
self-service
In Marketing in the News, we heard about a company called DRIZLY, which helps marketers to:
sell alcohol online.
Product advertisements refer to advertisements that focus on
selling a product or service.
high-pressure selling
selling that persuades people to buy goods they had no thought of buying
Order getter
sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, close sales, and follow up on a customer's use of a product or service
order getter
sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service
In the context of social media, evangelists are those who
send messages to friends and advertisers about the joys of using a brand.
email marketing
sending highly targeted, tightly personalized, relationship-building marketing messages via email
hierarchy of effects
sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action.
Capacity Management
service component of the marketing mix must be integrated with efforts to influence consumer demand.
The output of a supply chain is the
service delivered to customers.
Which of the following occurs during the planning stage of the promotion decision process?
specify the objectives
A waitress at a Chili's restaurant uses a __________ when she asks a family if "they have any room left for dessert."
stimulus-response presentation
Suggestive selling is a form of __________.
stimulus-response presentation
After completing an 18-week sales training program, Joshua was told, "You will be paid 4 percent on net dollar volume up to $10 million. Sales in excess of $10 million command a rate of 6 percent." The company Joshua works for is using a __________ for him after completing the sales training program.
straight commission compensation plan
With a __________, a salesperson's earnings are directly tied to sales or profits generated.
straight commission compensation plan
When Daniel was hired to work for Bush Refrigeration Company, he was told, "The sales training program is 18 weeks, and we'll pay you $750 per week during that time." While in training, the company used a __________ to compensate Daniel for his time and effort.
straight salary compensation plan
With a __________, a salesperson is paid a fixed fee per week, month, or year.
straight salary compensation plan
The three commonly used compensation plans are:
straight salary, straight commission, and a combination of salary and commission
Most stores today are near several others in one of five settings: the central business district, the community shopping center, the regional shopping center, the power center, or the __________.
strip mall
A good brand name should: (1) __________; (2) be memorable, distinctive, and positive; (3) fit the company or product image; (4) have no legal or regulatory restrictions; (5) be simple and emotional; and (6) have favorable phonetic and semantic associations in other languages.
suggest the product benefits
A sales technique whereby complementary products are presented to a customer after the customer has demonstrated a desire and willingness to purchase a particular product is referred to as a __________.
suggestive selling
A waitress at a Cracker Barrel restaurant uses __________ when she asks a family if "they have left any room left for dessert."
suggestive selling
All of the following tactics are used to generate leads EXCEPT:
suggestive selling
A pioneering (or informational) ad
tells people what a product is, what it can do, and where it can be found.
emotional intelligence
the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis
Doug Ames sells Mercedes Benz automobiles. While making his sales presentation to a newly qualified prospect, the prospect said, "Doug, I would really like to buy the car, but you know, the price of the automobile is just too high." In order to answer the prospect's objection, Ames responded, "Sir, you are correct. The price of the Mercedes Benz automobile is high because of what you are getting for that price." Ames then proceeded to describe the quality of the materials used in the car, the high resale value of the car, and the dependability and prestige associated with the Mercedes Benz. What technique did Ames use to handle the prospect's objection?
the acknowledge and covert technique
brand equity
the added value a brand name gives to a product beyond the functional benefits provided.
The personal selling process refers to
the sales activities occurring before, during, and after the sale itself, consisting of six stages: prospecting, preapproach, approach, presentation, close, and follow-up.
preapproach
the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call
prospecting
the sales step in which a salesperson or company identifies qualified potential customers
handling objections
the sales step in which the sales person is seeking out, clarifying, and overcoming any customer objections to buying
closing
the sales step in which the salesperson is asking the customer for an order
follow-up
the sales step in which the salesperson is following up after the sale to ensure customer satisfaction and repeat business
presentation
the sales step in which the salesperson is telling the value story to the buyer, showing how the company's offer solves the customer's problems
As a MooreChem sales manager, you note that one of your salespeople has exceeded his sales target but is well below his profit goal. The best explanation for this performance is
the salesperson is selling too many low margin products
Consumers are increasingly going online for information and opinions about goods and services as well as about companies. Research has shown that _____ is the most important attribute about a ratings website.
the site's credibility
A sales quota refers to
the specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period
approach
the step in which a salesperson meets with the customer for the first time
selling process
the steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up
All of the following are characteristics of warehouse clubs EXCEPT:
the stores are used to clear excess merchandise.
Types of Costs: total costs
the sum of the fixed and variable costs for any given level of production
FedEx provides next-morning delivery, which is considered an example of __________ utility.
time
Many retailers take a markdown as soon as sales fall to free valuable selling space and cash. This illustrates one tactic for handling the __________ of markdowns.
timing
institutional Advertisement
to build goodwill or an image for an organization rather than promote a specific product or service.
When communicating with its target audience, Taco Bell considered each of its _________ including social media channels, packaging, point of purchase displays, and advertising. These places of contact between a firm and its customers are critical elements for building an integrated marketing communication plan.
touch points
A ________ identifies that a firm has legally registered its brand name or trade name so the firm has its exclusive use, thereby preventing others from using it.
trademark
Ralston Purina offers super-premium dog foods based on "life-stage nutrition." The repositioning strategy Ralston Purina is using here is called
trading up.
As part of its ________ function, an intermediary such as a wholesaler performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales.
transactional
Opinion Leaders
trendsetters who purchase new products before others in a group and then influence others in their purchases. Act as opinion leaders based on their knowledge of and interest in products
Asking the prospect to make a decision on some aspect of the purchase is referred to as a(n) __________ close.
trial
Just in Time Inventory
Inventory policies boost efficiency by cutting inventory and requiring vendors to deliver products in exact quantities and exact timing
Trial Close
Involves asking the prospect to make a decision on some aspect of the purchase
Idea Generation
Involves developing a pool of concepts to serve as candidates for new products, building upon the previous stage's results
Closing Stage
Involves obtaining a purchase commitment from the prospect Must determine when the prospect is ready to buy
Preapproach Stage
Involves obtaining further information on the prospect and deciding on the best method of approach
Approach Stage
Involves the initial meeting between the salesperson and the prospect, where the objectives are to gain the prospect's attention, stimulate interest, and build the foundation for the sales presentation itself and the basis for a working relationship
Interactive Marketing
Involves two ways buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.
Salesforce Recruitment and Selection
It entails finding people who match the type of sales position required by a firm. Practices will differ greatly between order-taking and order-getting sales positions
Which of the following statements is true of the use of social media in brand communications?
It is used to reach active receivers, who will then become brand evangelists.
AIO Statements
Items on lifestyle surveys that describe various activities, interests, and respondents' opinions.
Accessories
Items such as chairs, desks and projectors in a classroom
Brand
Name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from competitors' offerings.
Captive brands
National brands sold exclusively by a retail chain Example: Target's sale of products by Michael Graves.
Why Study Consumer Behavior (Customer)
Need to make a lot of decisions on a daily basis: - In almost any shopping context they choose from a wide array of products differing on several dimensions. - Understanding consumer behavior will make us better consumers
Psychological needs
Needs concerning essential requirements for survival, such as food, water, shelter, and clothing
Extending the Product Lifecycle: Finding new users.
New applications extend a products lifecycle.
Extending the Product Lifecycle: Changing package sizes, labels, or product quality.
New packaging and labels with updated images and slogans can help revitalize a product.
Idea generation
New-product development begins with ideas from many sources.
Levels of Brand Familiarity
Nonrecognition Recognition Preference Insistance Rejection
Product mix length
Number of different products a firm sells.
Product mix width
Number of product lines a firm offers.
Universal product code (UPC)
Numerical bar code system used to record product and price information.
Primary Data
Observed or collected directly by the company for a specific marketing research project
Second Mover Strategy
Observing the innovations of the first movers and then improving on them to gain advantage in the marketplace
Applying the Consumer Products Classification System
Obstacle to implementing this system results from the suggestion that all goods and services must fit within one of the three categories: Convenience goods, Shopping goods, Specialty goods.
Non-store Retailing
Occurs outside a retail outlet through activities that involve varying levels of customer and retailer involvement. (Does not include brick and motor)
Forms of discounts: Functional discount (trade discount)
Offered by the seller to those members that perform certain functions. -trade discount for channel members
Cash rebates
Offered to consumers who buy the product from dealers within a specified time; the manufacturer sends the rebate directly to the customer.
Product development
Offering new or improved products for present markets
Marketspace
Offers possibilities for customer value creation that are greater in marketspace than in the traditional marketplace.
__________ is when multiple retail channels become complementary through a series of touch points with consumers.
Omnichannel retailing
Offshoring
Out of US; took services to other countries.
Two types of order takers exist. ______ visit customers and replenish inventory stocks of resellers, whereas ______ typically answer simple questions, take orders, and complete transactions with customers.
Outside order takers; inside orders takers
Brand name
Part of a brand that can be spoken. Should give buyers the correct connotation of the product's image.
Strategic Alliance
Partnership in which two or more companies combine resources and capital to create competitive advantages in a new market
Which of the following is the best example of a shopping product?
Patagonia jacket
Reference Groups
People or institutions such as family, friends, or celebrities whose opinions you value above all others, to whom a person looks for guidance in his or her own behavior, values or conduct Used as a standard for evaluating yourself and your behavior
Reference Groups
People such as family, friends, or celebrities: -Whose opinions are valued -To whom a person looks for guidance in his or her own behavior, values, and conduct -With whom a person has emotional connections
Consumer innovators (intro stage)
People who purchase new products almost as soon as the products reach the market.
Consumer Attitudes
Person's enduring favorable or unfavorable evaluations, emotions or actions toward some object or idea Components: Cognitive Affective Behavioral
Personal Selling
Personal presentations by the firm's sales force for the purpose of engaging customers, making sales and building customer relationships.
Positioning
Placing a product at a certain point or location within a market in the minds of perspective buyers.
Product Positioning
Placing a product at a certain point or location within a market in the minds of prospective buyers. Distinguishes a company's offering from its competitors
Merchandisers
Plan floor space and secure needed products at the best possible prices and selection
Sales management Chapter 20
Planning the selling program and implementing and evaluating the personal selling effort
Sales Management
Planning the selling program and implementing and evaluating the personal selling effort of the firm
Service Encounter
Point at which the customer and service provider interact.
Account Management Policies
Policies that specify who salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
Product Differentiation
Position products to appeal to distinct consumer groups/segments because of product uniqueness and benefits
Product Sales Organization
When specific knowledge is required to sell certain types of products
The market and demand
a firm's flexibility in setting price varies depending on the nature of the market.
A geographical sales organization would NOT be the best structure if
a firm's products or customers require specialized knowledge
Logistics
focus on getting the right amount of products to the right place at the right time at the lowest possible cost.
Consultative selling refers to a presentation format that
focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution.
At which stage in the personal selling process would a salesperson ask the customer whether he or she is satisfied with the product?
follow up
All of the following are behaviorally-related sales objectives EXCEPT:
number of new customers
All of the following are output-related sales objectives EXCEPT:
number of sales calls
frequency
number of times the average person in the target market is exposed to the message
Which type of salesforce training is the most popular type of training?
on-the-job training
Cross-Channel Shopper
online consumer who researches products online and then purchases them at a retail store.
blogs
online forums where people and companies post their thoughts and other content, usually related to narrowly defined topics
exclusive distribution
only one retailer in a specific geographical area carries the firm's products. usually for specialty products or services.
Georgina is the owner of a company called Piquant (which means having a pleasantly sharp taste or appetizing flavor). She was looking for a new product to pair with her company's line of food condiments, so she worked with students at a local culinary school to generate recipe ideas. This is an example of
open innovation
The lag from ordering an item until it is received and ready for use or sale is referred to as
order cycle time.
Which of the following statements regarding order getters is most accurate?
order getter sales calls traditionally require the greatest financial investment from the firm
sales management
planning the selling program and implementing and evaluating the personal selling effort of the firm
Diffusion process
Process by which new goods or services are accepted in the marketplace.
Non-Probability Sample
Sample selected from among readily available respondents -Convenience sample -Quota sample
Which of the following statements regarding order getters is most accurate?
order getters are most often used in new-buy or modified rebut situations
Which of the following statements regarding order getters is most accurate?
order getters need a high degree of creativity
Probability Sample
Sample that gives every member of the population a chance of being selected -simple random sample -stratified sample -cluster sample
homogeneous Goods
Shopping products the consumer sees as basically the same and wants the lowest price
Heterogeneous Goods
Shopping products the consumer sees as different and wants to inspect for quality and suitability
D. Sales promotion Chapter 17
Short-term inducement of value offered to arouse interest in buying a product - Advantages: no limit to creativity or possibilities; can really make people buy things NOW; great for introduction and trial; flexible - Disadvantages: easily abused; don't necessarily create brand loyalty; possible negative effect on buyer behavior; lead to promotion wars; easily duplicated
Geographical Sales Organization
Simplest structure, first divided into regions and each region is divided into districts or territories Salespeople are assigned to each district with defined geographical boundaries and call on all customers and represent all products sold by the company
Family brand
Single brand name that identifies several related products; Tylenol.
Individual brand
Single brand that uniquely identifies a product; go pro.
Personal Selling Process
Six stages: Prospecting - preapproach - approach - presentation - close - and follow up
Types of execution styles
Slice of life, lifestyle, spokesperson, fantasy, humorous, real/animated product symbols, mood or image, demonstration, musical, scientific,
Developing the Promotional Mix Chapter 17
Some of the factors affecting the selection of a promotional mix: - Target market - different targets respond better to different forms of promotion - Stage of the product's life cycle - Characteristics of the product - complexity, risk, ancillary services (degree of service/support required after sale) - Stage of adoption process - The budget
Sales Engineers
Specialize in identifying, analyzing, and solving customer problems
Services
Specialized services that support operations of a firm, these are variables
Sales Quota
Specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period
Goods-services continuum
Spectrum along which goods and services fall according to their attributes, from pure good to pure service.
Development
Stage of the new-product process that turns the idea on paper into a prototype.
Adoption process
Stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again: Awareness ->Interest ->Evaluation ->Trial -> Adoption/rejection.
Customer Experience
Standard for measuring a meaningful marketspace company presence
Sales plan Chapter 20
Statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
Undifferentiated Marketing
Strategy that focuses on producing a single product and marketing it to all customers; also called mass marketing.
Differentiated Marketing
Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments.
Which of the following statements regarding order getters is most accurate?
order getters require considerable product knowledge
The two types of personal selling are order taking and ______.
order getting
A salesperson who processes routine orders or reorders for products that were already sold by the company is referred to as a(n)_______.
order taker
Which form of personal selling had the lowest requirement for problem solving?
order taker
Broadly speaking, there are two types of personal selling: ______ and order getting.
order taking
Business analysis
Assessing the new product's potential market, growth rate, and likely competitive strengths.
Seniors
65 or older High discretionary income Spend money conservatively but indulge in luxury Not likely to be the first to try new products
Commercialization
A product is ready for full-scale marketing.
Personal Determinants of Consumer Behavior
-Information Processing -Conscious Mind -Unconscious Mind -Affect as Information -Motivation -Maslow's Hierarchy of Needs -Perception -Perceptual screens Techniques for grabbing consumers' attention
Market Decline
A stage in the PLC when sales are decreasing throughout and new products replace the old (Harvesting/Deletion)
Brand Licensing
Ch 13 slide 22. Ex disney folders
Market Segmentation Process
Ch 9 slide 40-41.
Market Growth
A stage of new competition when the PLC industry sales grow faster but industry profits rise and then start falling (Market Development)
Types of vertical Marketing systems: Corporate VMS
-a vertical marketing system that combines successive stages of production and distribution under the single ownership -channel leadership is established through common ownership
marketing channel decisions
-affect other marketing decisions, such as pricing or product design -can lead to competitive advantage
Market Maturity
A stage of the PLC when industry sales rise at a slower rate of increase and competition gets tougher (Product Development)
Introduction
A stage of the PLC when sales are low as when a new idea is first introduced to the market (Market Penetration)
Hypothesis
A statement about the relationship of the variables as to why you're doing research
Criteria for Effective Segmentation
+Must present measurable purchasing power and size +Must be sufficiently large to offer good profit potential +Must aim for segments that much its marketing capabilities +Must find a way to effectively promote and serve the market segment
Types of Primary Research
+Observational +Surveys +Controlled Experiments
Installations
Important capital items such as buildings, land rights, and major equipment
Maslow's Hierarchy of Needs
+Physiological Needs +Safety Needs +Social/Belonging Needs +Esteem Needs +Actualization Needs
Social Classes -- W. Lloyd Warner
+Upper-Upper +Lower-Upper +Upper-Middle +Lower-Middle +Working Class +Lower Class Determined by family background, education, occupation, income, residence location
Selling styles Chapter 20
- Adaptive selling - adjusting presentation to fit the selling situation - Consultative selling - focuses on problem identification - business to business marketing
Sales Plan
A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
Product Life Cycle
Introduction Market Growth Market Maturity Market Saturation Market Decline
Market Segmentation
Division of the total market into smaller, relatively homogenous groups. Look over 3 main segmentation Ch 9 slide 9.
Which of the following statements should a salesperson use to agree with and neutralize an objection?
"That's true. It does have a shorter shelf life, but that really hasn't been a problem. It is so popular it never stays on the shelf that long anyway."
Which of the following statements should a salesperson use as a denial response to a prospect's objection?
"Where did you hear that? Your source must have erroneous information."
Which of the following statements should a salesperson use to accept the objection?
"Yes, you're right, it is lighter but that is done intentionally to make your work easier."
Which of the following statements should a salesperson use to acknowledge and convert the prospect's objection into a reason for buying?
"Yes, you're right, it is lighter but that is done intentionally to make your work easier."
Types of sales promotion Chapter 18
- Consumer-oriented sales promotion - sales tools used to support a company's advertising and personal selling - Trade-oriented sales promotions - support a company's ads directed to wholesalers, retailers or distributors
In class, we considered the issue of the "intensity of distribution." A concern we have is "how many" outlets should we have. The "correct" answer offered in class was:
"just enough to meet the desires of the target market," anything else is waste.
Core Values of the U.S.
- Importance of education, freedom, heath, volunteerism - Work ethic - Desire to accumulate wealth - Communicating with anyone, anytime, anywhere -Individualism, "making a difference"
Logistical Function
Activities include: gathering, storing and dispersing products.
It is estimated that the average cost of an outbound telemarketing sales call on a business customer is about __________, versus $350 for a single field sales call.
$20 to $25
It is estimated that the average cost of a single field sales call on a business customer is about __________, factoring in salespeople compensation, benefits, and travel-and-entertainment expenses.
$350
Product Adaptation
Adapting a product to meet local conditions or wants in foreign markets.
Price Changing
- when a competitor lowers prices, a company may just emphasize value instead of lowering, too. - lowering price may be interpreted as a product lowering their value. - a successful price increase can generate great profits.
An antiques dealer buys a grandfather clock for $200. She sets the selling price at $350. When the clock doesn't sell after two months, she raises the price to $800 and moves the clock to her downtown store to appeal to a different market. The clock sells for $800 the next day. What is the maintained markup?
$600
five sustainable marketing principles that businesses take towards sustainable marketing
(1) consumer-oriented marketing (2) customer value marketing (3) innovative marketing (4) sense-of-mission marketing (5) societal marketing
Content
(In terms of online experience) it is, text, pictures, sound and videos that the website contains.
BCG Matrix
-A market share/market growth matrix that plots market share against market growth potential
Business Products
(also called B2B products or industrial products) are products organizations buy that assist in providing other products for resale.
Business Portfolio Analysis
-An evaluation of a company's products and divisions to determine the strongest and weakest -The analysis should fit the company's strengths and weaknesses to opportunities in the environment
price elasticity of demand
*a measure of the sensitivity of demand to changes in price. 1. inelastic demand- demand hardly changes with a small change in price. 2. elastic demand- demand changes greatly with a small change in price.
Reference Group (Aspirational Social Groups)
-High profile groups/persons: we don't personally know these people, but we admire them. -Individuals who aspire to membership in a group may adopt its standards of behavior and values
organizational cosiderations
-must decide who within the organization should set prices* Large: usually product management. In small companies usually top management. -this will vary depending on the size and type of company -some firms maintain pricing departments
channel behavior and organization
-Horizontal conflict occurs among firms at the same level of the channel (e.g., between different dealers of the same brand) -Vertical conflict occurs between different levels of the same channel (e.g., between a brand and intermediaries or its franchisee)
transportation
*trucks- a mode of transportation for high-value merchandise over short hauls with flexible routing and time schedules *railroads- one of the most cost-effective modes for shipping large amounts of bulk products- coal, sand, minerals, and farm and forest products-over long distances in the United States *water carriers *pipelines *air carriers-the ideal mode of transport for perishable goods for distant markets *intermodal transportation - (piggyback, fishyback, trainship {cheapest}, airtruck
Environmental Sustainability and Sustainable Value
501
Societal Classification of Products
509
2 ways to change attitudes
+ Attempt to produce consumer attitudes that will lead to the purchase of existing products +Evaluate existing consumer attitudes and create or modify products to appeal to these attitudes** **Least costly!!!!
3 fastest growing subcultures
+African Americans +Hispanics +Asians
Components of the Learning Process
+Drive +Cue +Response +Reinforcement
The personal selling process encompasses __________ distinct selling stages.
6
Which of the following statements should a salesperson use to postpone a prospect's objection?
"I think I might be able to explain that better to you after showing you this diagram."
Which quadrant shown in Figure 16-8 above MOST LIKELY are retailers that pay great attention to store design and product lines, whose merchandise often has a high margin of profit and is of high quality, and whose stores typically provide high levels of service?
"B"
Roles of Salesforce Chapter 20
- Link between firm and customers - Salespeople are the company in the consumer's eyes - Dominant role in firm's marketing program - Probe customers - they really need to understand what customers need and want - Adjust marketing offers - salespeople may need to change things to complete a sale - Negotiate terms of sales - Build long-term personal relationships
Forms of Personal Selling Chapter 20
- Order-taking salespeople - processes routine order that were already sold by the company -> preserve ongoing relationship - Order-getting salespeople - identifies customers and gives them information about a product - Customer sales support personnel - perform a variety of services
Types of Advertisements Chapter 18
- Product advertisements - focus on selling a good or service A. Pioneering (informational) - intro stage; inform customers or build primary demand B. Competitive (persuasive) - growth stage; build selective demand; comparative, promotes specific benefits of your brand; can also be used to change perception of a brand or product C. Reminder - maturity stage; reinforce previous knowledge; keeps consumers thinking about a product D. Institutional - build goodwill or image for an organization as opposed to a specific product
Key Takeaways Chapter 17
- The promotional mix consists of advertising, personal selling, public relations/publicity, sales promotion, and direct marketing. These tools vary greatly with respect to flexibility, cost, and level of seller control. - Ultimate consumer programs rely more on advertising while personal selling is more important to industrial buyers
Team Selling Chapter 20
- Used to service large, complex accounts; can include experts from different areas of the selling firm - Downfalls: potential to overwhelm the customer and deciding/maintaining team roles Types: A. conference selling - firm meets with buyers to discuss problems and opportunity B. seminar selling - educational program for customer's technical staff
number of marketing intermediaries: exclusive distribution
- giving limited number of dealers the exclusive right to distribute the company's products in their territories -advantage the dealers get a steady source of supply from producers.
number of marketing intermediaries: intensive distribution
- stocking the product in as many outlets as possible, so consumers can get them where and when they want the product.
number of marketing intermediaries: selective distribution
- the use of more that one but fewer than all of the intermediaries who are willing to carry the company's products
Product Development
Introduction of new products into identifiable or established markets.
Consumer Decision Process
-Awareness of a gap between the existing situation and a desired situation -Gathering information about the attainment of a desired state of affairs -Consumer evaluates the evoked set of options -The consumer narrows the alternatives down to one -Post-purchase evaluation - Buyer feels either: satisfied or dissatisfied
Marketing Logistics and Supply chain management: Inventory Management
-Balance between too much and too little. -Just-in-time logistics system- when producers and retailers carry only small inventories of merchandise lasting for a few days -RFID or smart tag technology
Strategic Business Unit (SBU)
-Can be a single product or brand -Has its own managers, resources, objectives, and competitors -Pursues its own distinct mission and develops its own plans independently - They help focus the attention of company managers
Environmental Scanning
-Collecting external marketing environment information to identify and interpret potential trends -Trends represent significant opportunities or threats to the company
5 Environmental Dimensions
-Competitive -Political/Legal -Economic -Technological -Social/Cultural
Distribution Strategy (Marketing Mix)
-Consumers need to find their products in the proper quantities at the right times and places -Involves modes of transportation, warehousing, inventory control order processing, and selection of marketing channels -Some manufacturers sell their products directly to customers without using intermediaries -Technology has opened new channels of distribution in many industries
Factors Affecting Consumer Behavior
-Cultural -Social -Personal -Psychological -Buyer
Interpersonal Determinants of Consumer Behavior
-Culture -Subculture -Different types of reference groups -General social influence -The Asch phenomenon -Social pressure -Opinion leaders
Pricing Strategy (Marketing Mix)
-Deals with methods of setting profitable and justifiable prices -Subject to regulation and public scrutiny -Decisions made for other marketing mix variables may effect pricing decisions
Types of Competition
-Direct: among marketers and similar products -Indirect: businesses that don't necessarily sell the same products but offer different alternatives to satisfying the same customer need -This among all firms that are fighting for the same type of consumer. All firms compete for a limited number of dollars that consumers can or will spend
Techniques For Grabbing Consumers' Attention
-Doubling the size of an ad -Using certain colors or graphics -Developing unique packaging -Custom advertising
Reference Group (Membership Social Groups)
-Everyone belongs to multiple social groups -Direct impact of these groups: Every group establishes certain norms of behavior the group deems appropriate for its members. -Indirect impact of these groups: Members desire to strengthen their position in the group.Advices provided by the group is perceived as being truthful
The new marketing communications model
-Major factors changing today's marketing communications *changing consumers *changing marketing strategies *sweeping advances in communications technology -companies these days are doing less broadcasting (mass marketing) and more narrowcasting (email, mobile texts, blogs) -consumers are better equipped to find product and brand information on their own -as technology advances, consumers rely less on marketer-supplied information than before. -marketers are targeting customers in more narrowly defined micro markets.
Structure of the Market
-Monopoly: market structure in which a single seller dominates the market of a good or service for which buyers can find no close substitute -Antitrust Laws: designed to prevent restraints on trade, such as business monopolies -Oligopoly: Few number of sellers in an industry with high start-up costs which keep out new competitors
Types of Primary Research
-Observation ex: traffic counts, tv ratings -Surveys ex: focus group interviews, telephone and online surveys -Controlled Experiments ex: test market
General Social Influence
-Online reviews -Impact of the crowdedness of the environment/store on consumers' thoughts and behaviors: As the environment becomes more crowded, people automatically become more safety-oriented, and indeed more sensitive to risks in general. -Consumers often modify their responses, consciously or subconsciously, when surrounded by others with conflicting opinions.
Marketing logistics involves:
-Outbound distribution (moving products from the factory to resellers and ultimately to customers) -Inbound distribution (moving products and materials from suppliers to the factory) -Reverse distribution (reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers)
4 Step Pyramid of Social Responsibility (Top to Bottom)
-Philanthropic: be a good corporate citizen (Contribute resources to the community. Improve the quality of life) -Ethical: be ethical (Obligation to do what is right, just, and fair. Avoid harm) -Legal: obey the law (play by the rules) -Economic: be profitable (the foundation on which all others rest)
Different Types of Data
-Primary -Secondary
Marketing Mix
-Product -Distribution -Price -Promotion
Types of Costs: fixed cost (overhead)
-Remain the same (rent, exec salaries, electricity) costs that do not vary with production or sales level
Maslow's Hierarchy of Needs (Top to Bottom)
-Self-Actualization -Esteem -Love/Belonging -Safety -Psychological
Perceptual Screens
-The mental filtering processes through which all inputs must pass -Consumers respond selectively to messages that break through this
Social/Cultural Environment
-The relationship between the marketer, society, and culture -Marketers must be sensitive to demographic shifts and changing values, because they represent opportunities and threats.
Affect as information
-We tend to assume that our judgments reflect information about the object of judgment. -But...Being happy or sad influences the content and style of thought.
Vertical marketing system (VMS)
-a channel structure in which producers, wholesalers, and retailers act as a unified system. -One channel member owns the others, has contracts with them, or has so much power that they all cooperate
direct marketing channel
-a marketing channel that has no intermediary levels -shortest distribution channel -full control *SALES through company website
The Nature of Sales Promotion
-attracts consumer attention to buy the item now (advertising invites for later) -offers strong incentives to purchase or price off (i.e. installment plans) -can be used to dramatize product offers and boost sagging sales -invites and rewards quick responses -effects are short-lived -not very effective in building long-run brand preference and customer relationships.
High-low pricing*
-based on sales promotion. Regular and sales pricing -charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. (JC Penny)
persuasive advertising
-becomes more important as competition increases. -objective is to build selective demand (i.e. advertising discounts)
types of franchise systems: service-firm sponsored retailer franchise
-burger king and its 10,500 franchise-operated restaurants around the world
types of franchise systems: manufacturer- sponsored wholesaler franchise
-coca cola licensed bottlers, buy syrup, bottle and sell locally
pull strategy
-company spends a lot of money on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel.
considerations in setting price
-consumer perceptions of the product value set the ceiling price -product costs set the floor to the products price -perceived value is the price the customer will buy at. If priced below, you lose revenue.
setting the advertising budget -objective-and task method
-developing the promotion budget by... *defining specific objectives *determining the tasks that must be performed to achieve these objectives -estimating the costs of performing these tasks
marketing at work
-digital and interactive media are key to new marketing approach and is undercutting spending on mass-media -advertisers are using highly targeted media to reach smaller customer segments
breakeven calculation
-fixed cost/price- variable costs *$60,000/$2,000- $0.80= 50,000 units
types of franchise systems: manufacturer- sponsored retailer franchise
-ford and its network of independent franchise dealers
reminder advertising
-important for mature products -helps tho maintain customer relationships and keep consumers thinking about the product.
The Nature of Personal Selling
-is the most effective in building up buyers' preferences, convictions, and actions -allows all kinds of customer relationships to spring up -is a company's most expensive promotional tool -buyers feel a greater need to listen and respond to personal selling -requires the most interaction with the customer
The Nature of Public Relations
-is very believable -reaches many prospects and can be very targeted -dramatizes a company or product -it is not a sales-directed form of communication -economical if used with other mix elements -used to maintain company image
informative advertising
-issued heavily when introducing a new-product category -objective is to build primary demand
when to use market-penetration pricing
-market is highly price sensitive so a low price produces more growth (elastic) -production and distribution costs decrease as the sales volume increases -low price can help keep out the competition, and the penetration pricer can maintain its low-price position
The Nature of Direct Marketing
-message is interactive and directed to a specific person, like personal selling -message is immediate and customized -allows a dialogue between the marketing team and the consumer to build a one-to-one relationship -telemarketing, online help
Marketing logistics
-planning, implementing, and controlling the physical flow of materials, final goods, and related information form points of origin to points of consumption to meet customer requirements at a profit. -customer-centered logistics starts with the marketplace and works backward to the factory or even to sources of supply.
public policy and pricing: pricing across channel levels
-price discrimination- price different to differ retailers (The Robinson-Patman Act) -retail (or resale) price maintenance -deceptive pricing- stating price or savings that mislead consumers
public policy and pricing: Pricing within channel levels:
-price fixing can't talk with competitors -predatory pricing (punish competition to put out of business)
Distribution: full-line forcing
-producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. -when the seller allows only certain outlets to carry its products, this strategy is called exclusive distribution -when the seller requires that these dealers not handle competitors' products, its strategy is called exclusive dealing.
when to use market-skimming pricing
-product's quality and image supports its higher price -costs of low volume cannot be so high that they cancel out the benefit of higher price. -competitors should not be able to enter market easily and undercut price
The Nature of Advertising
-reaches mass of geographically dispersed buyers at a low cost per exposure -enables the seller to repeat a message often -can build up long-term image for a product -can trigger quick sales -consumers tend to view advertised products as more legitimate -problem with advertising is it only allows one way communication -entices customers to purchase later
integrated marketing communications
-recognizes all points where the customer may encounter the company's brands -solves the issue of blurred brand perceptions of consumers advertising message (marketing dept) different than sales message (sales dept) integrate messaging *deliver a consistent and positive message at each contact *ties together company messages and images -there is a shift toward micro marketing and the fragmentation of the mass market
Push strategy
-sales force and trade promotion are used to push the product through channels. -producer promotes the product to channel members who in turn promote it to final consumers.
Which of the following statements regarding the role of salespeople is most accurate?
-salespeople can identify creative solutions to customer problems -salespeople create customer value by providing a follow through after the sale
Product pricing strategies: market skimming pricing (price skimming)
-setting a high price for a new product to skim maximum revenues to layer by layer from the segments willing to pay the high price -the company makes fewer, but more profitable sales.
setting the advertising budget -Percentage of sales method
-setting promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price *based on profits
setting the advertising budget -affordable method
-setting promotion budget at the level management thinks the company can afford *calculated based on an amount remaining after operating expenses and capital outlays are deducted from total revenues *it undervalues the importance of promotion in sales
setting the advertising budget -competitive-parity method
-setting the promotion budget to match the competitors' outlays *the budget is based on the amount spent by competitors' in the same industry
forms of Madison & Vine
-the merging of advertising and entertainment to break through the clutter and create new avenues for reaching consumers with more engaging messages. *advertainment-aims to make ads themselves so entertaining that people want to watch them *brand entertainment or brand integrations- making the brand and inseparable part of some other form of entertainment (i.e. most common is placing product in a movie scene)
promotion mix
-the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships.
how channel members add value
-the use of intermediaries results from their greater efficiency in making goods available to target markets -channel members can offer *specialization *scale of operation
types of advertising- institutional advertising
-tries to develop goodwill for a company rather than sell a specific product. -its objective is to improve the advertiser's image, reputation, and relations with various groups the company deals with.
types of advertising- competitive advertising
-tries to develop selective demand; demand for specific manufacturer's product rather than a product category.
types of advertising- reminder advertising
-tries to keep the product's name before the public
horizontal marketing systems
-two or more companies at one level join together to follow a new marketing opportunity -can develop between two competitors *McDonald's now places "express" versions of their stores in Walmart stores
6 major decisions in international marketing
. Looking at the global marketing environment 2. Deciding whether to go global 3. Deciding which markets to enter 4. Deciding how to enter the markets 5. Deciding on the global marketing program 6. Deciding on the global marketing organization
Salesperson Motivation Suggests
1) A clear job description 2) Effective sales management practices 3) A personal need for achievement 4) Proper compensation, incentives, or rewards will produce a motivated salesperson
Handling Objections
1) Acknowledge and covert the objection: using the objection as a reason for buying 2) Postpone: objection will be dealt with later in the presentation 3) Agree and neutralize: agree with the objection, then show it is unimportant 4) Accept the objection: probe reason behind objection and open to further discussion 5) Denial: meet objection head-on with a firm denial 6) Ignore the objection: objection appears as a stalling mechanism or clearly is not important to the prospect
Salesforce Organized in Companies
1) Geography 2) Customer 3) Product
Three Major Tasks Involved in Implementing a Sales Plan
1) Salesforce recruitment and selection 2) Salesforce training 3) Salesforce motivation and compensation
Personal Selling Three Main Roles in Firm's Marketing Effort
1) Salespeople are critical link between the firm and its customers 2) Salespeople are the company in a consumer's eyes 3) Personal selling may play a dominant role in a firm's marketing program
Sales Plan Formulation
1) Setting objectives 2) Organizing the salesforce 3) Developing account management policies
Salespeople Paid using Three Plans
1) Straight salary 2) Straight Commission 3) A combination of salary and commission
Job Description Explains
1) To whom a salesperson reports 2) How a salesperson interacts with other company personnel 3) The customers to be called on 4) The specific activities to be carried out 5) The physical and mental demands of the job 6) The types of products and services to be sold
Three Closing Techniques
1) Trial Close 2) Assumptive Close 3) Urgency Close
Methods for handling objections Chapter 20
1. Acknowledge and convert objection - "yes, the price is high because we use the finest materials, let me show you..." 2. Postpone - "i will address that issue shortly" 3. Agree and neutralize - agree with objection and then shows it is unimportant 4. Accept the objection - stimulate further discussion of objection 5. Denial - based on misinformation 6. Ignore the objection
Increasing the Value of Promotion Chapter 18
1. Building long term relationships - increased engagements with consumers 2. Self-regulation - increased efforts to help consumers gain confidence in communication efforts
Marketing Research Steps
1. Define the problem 2. Conducting exploratory research 3. Formulating a hypothesis 4. Creating a research design 5. Collecting data (primary and secondary) 6. Interpreting and representing the research information
the American Marketing Association code of conduct:
1. Do no harm. This means consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make. 2. Foster trust in the marketing system. This means striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery or distribution. 3.Embrace ethical values. This means building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency, and citizenship.
Promotion Decision Process Chapter 17
1. Planning - identify target audience, specify objectives, set budget, select right promotional tools, design promotion, and schedule promotion 2. Implementation - pretest, then carry out promotion 3. Evaluation - posttest, make needed changes
The Personal Selling Process Chapter 20
1. Prospecting - identifying and qualifying potential customers 2. Pre-approach - gather information and decide how to approach the prospect 3. Approach - gain a prospect's attention, stimulate interest and make transition to the presentation; first impression is critical 4. Presentation/Demonstration - begin converting a prospect into a customer by creating a desire for the product or service 5. Handling objections - discuss problems, find solutions 6. Closing - obtain a purchase commitment from the prospect and create a customer 7. Follow up - ensure that the customer is satisfied with the product or service; resolve any problems to ensure future sales
Sales management process Chapter 20
1. Sales plan formulation - set objectives, organize salesforce, develop account management policies 2. Sales plan implementation - salesforce recruitment, selection training, motivation and compensation 3. Salesforce evaluation - quantitative assessment of performance, behavioral evaluation
The four types of industrial structures:
1. Subsistence economies. In a subsistence economy, the vast majority of people engage in simple agriculture. They consume most of their output and barter the rest for simple goods and services. These economies offer few market opportunities. Many African countries fall into this category. 2. Raw material exporting economies. These economies are rich in one or more natural resources but poor in other ways. Much of their revenue comes from exporting these resources. Some examples are Chile (tin and copper) and the Democratic Republic of the Congo (copper, cobalt, and coffee). These countries are good markets for large equipment, tools and supplies, and trucks. If there are many foreign residents and a wealthy upper class, they are also a market for luxury goods. 3. Emerging economies (industrializing economies). In an emerging economy, fast growth in manufacturing results in rapid overall economic growth. Examples include the BRIC countries—Brazil, Russia, India, and China. As manufacturing increases, the country needs more imports of raw textile materials, steel, and heavy machinery and fewer imports of finished textiles, paper products, and automobiles. Industrialization typically creates a new rich class and a growing middle class, both demanding new types of imported goods. As more developed markets stagnate and become increasingly competitive, many marketers are now targeting growth opportunities in emerging markets. 4.Industrial economies. Industrial economies are major exporters of manufactured goods, services, and investment funds. They trade goods among themselves and also export them to other types of economies for raw materials and semifinished goods. The varied manufacturing activities of these industrial nations and their large middle class make them rich markets for all sorts of goods. Examples include the United States, Japan, and Norway.
price
1. The amount of money charged for a product or service. 2. The sum of the values that customers exchange for the benefits of having or using the product or service. - only element in the marketing mix that produces REVENUE. - most FLEXIBLE marketing element - number one PROBLEM facing many marketing executives - small percentage IMPROVEMENT can generate a large percentage increase in profitability
Traditional buyers' rights
1. The right not to buy a product that is offered for sale 2. The right to expect the product to be safe 3. The right to expect the product to perform as claimed
Consumer advocates call for the following additional consumer rights:
1. The right to be well informed about important aspects of the product 2. The right to be protected against questionable products and marketing practices 3. The right to influence products and marketing practices in ways that will improve "quality of life" 4. The right to consume now in a way that will preserve the world for future generations of consumers
Traditional sellers' rights
1. The right to introduce any product in any size and style, provided it is not hazardous to personal health or safety, or, if it is, to include proper warnings and controls 2. The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers 3. The right to spend any amount to promote the product, provided it is not defined as unfair competition 4.The right to use any product message, provided it is not misleading or dishonest in content or execution 5. The right to use buying incentive programs, provided they are not unfair or misleading
Three Aspects of Product Life Cycle
1. Their length 2. The shape of their sales curves 3. the rate at which consumers adopt products
three factors that lead to high prices
1. high costs of distribution 2. high advertising and promotion costs 3. excessive markups
Two economic factors reflect the country's attractiveness as a market:
1. industrial structure- shapes its product and service needs, income levels, and employment levels. 2. income distribution.
Deceptive practices fall into three groups:
1. promotion 2. packaging 3. pricing
types of markets:
1. pure competition-many buyers and sellers no effect on price (commodities: wheat, copper, financial services) 2. oligopolistic competition- few large sellers highly sensitive to competition pricing 3. pure monopoly- one large seller
About __________ percent of U.S. companies now include customer satisfaction as a behavioral measure of salesperson performance.
60
Products can be classified according to their degree of immediate consumer satisfaction and long-run consumer benefit.
1.Deficient products, such as bad-tasting and ineffective medicine, have neither immediate appeal nor long-run benefits. 2.Pleasing products give high immediate satisfaction but may hurt consumers in the long run. Examples include cigarettes and junk food. 3.Salutary products have low immediate appeal but may benefit consumers in the long run, for instance, bicycle helmets or some insurance products. 4. Desirable products give both high immediate satisfaction and high long-run benefits, such as a tasty and nutritious breakfast food.
New-Product Process
1.New product strategy development 2.Idea generation 3.Screening and evaluation 4. Business analysis 5. Development 6. Market Testing 7. Commercialization
marketing impact on other businesses
1.acquisitions of competitors 2.marketing practices that create barriers to entry 3. unfair competitive marketing practices.
other product criticisms
1.too often, products and services are not made well or do not perform well. 2. Product safety has been a problem for several reasons, including company indifference, increased product complexity, and poor quality control. 3. many products deliver little benefit or may even be harmful.
Virtually every occupation that involves customer contact has an element of personal selling in it. The Bureau of Labor Statistics reports that almost ______ people are employed in sales positions in the U.S.
14 million
Industry research shows that outside order getters, or field service representatives spend 41 percent of their time selling, and another __________ is devoted to customer service calls.
16%
According to lecture, Corporate Chains are responsible for about _____ of retail sales.
40%
What percentage of a sales representative's time is spent selling?
41%
The National Retail Federation estimates that about __________ percent of retail shrinkage is due to employee theft.
44%
Indicators of Market Potential
472
Industry research shows that outside order getters, or field service representatives, often over _____ per week.
50 hours
One reason follow-up is so important is that research shows that the cost and effort to obtain repeat sales from a satisfied customer is roughly __________ of that necessary to gain a sale from a new customer.
50%
Today, __________ percent of companies employ cross-functional teams of professionals to work with customers to improve relationships, find better ways of doing things, and, of course, create and sustain value for their customers.
75%
80/20 principle (Praedo's law) (Segmentation by usage rates)
80 percent of a product's revenues come from 20 percent of its customers.
Best Buy has approximately what amount of sales per square foot according to the UMD16A: Sales per Square Foot Marketing Dashboard above?
900
Percentage of Internet B2B sales
91% -- cuts operating costs by processing through e-commerce
Which quadrant shown in Figure 16-8 above MOST LIKELY are retailers that typically trade a lower price for increased volume in sales, focus on price with low service levels, and possess an image of being a place for good buys?
A
Channel Captain
A channel member who coordinates, directs and supports other channel members is called a:
Forms of segmented pricing: Location-based pricing
A company charges different prices for different locations, even though the cost of offering each location is the same. (seats in stadium)
Seminar Selling
A company team conducts an educational program for a consumer's technical staff, describing state-of-the-art developments
Prospect
A consumer who wants or needs the product
Joint Ownership
A cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control.
According to lecture, retailers can be classified based on the form of ownership and their marketing strategies. Which would describe Sears?
A corporate chain with broad and relatively deep product assortments
Esteem Needs
A desire for a sense of accomplishment and achievement
Customer Sales Organization
A different salesforce calls on each separate type of buyer or marketing channel
You are successful in business and have decided to add several helicopters to your existing fleet. What channel of distribution would you most likely use to make this purchase, based on our class discussion?
A direct business marketing channel
In class, we talked about the distribution channels used by Dell computers. One way that Dell sells computers is by allowing customers to go to the Dell web site and to create their own "customized" computer, which is then built to the customer's specifications and shipped to the customer's home. What type of distribution channel does this represent?
A direct channel
How is customer service related to logistics management?
A firm must drive down logistics costs as long as it can still satisfy customer requirements.
Global Firm
A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages in its costs and reputation that are not available to purely domestic competitors.
Forms of segmented pricing: Time-based pricing
A firm varies its price by the season, the month, the day, and even the hour. (seasonal, hourly)
Communication Adaptation
A global communication strategy of fully adapting advertising messages to local markets.
free trade zones or economic communities
A group of nations organized to work toward common goals in the regulation of international trade.
Contract Manufacturing
A joint venture in which a company contracts with manufacturers in a foreign market to produce its product or provide its service.
Management Contracting
A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
Research Design
A master plan or model for conducting research selection of respondents importatn
Research Design
A master plan or model for data collection Important considerations -Does the research measure what it intends to measure? -Primary vs. secondary data -Selection of respondents
Which of the following is not a factor that would be considered noise in the communication process?
A message has been repeated very frequently on radio and television.
unique features that must be understood
A nation's readiness for different products and services and its attractiveness as a market to foreign firms depend on its economic, political-legal, and cultural environments.
Consultative Selling
A need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution
Adaptive Selling
A need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information
Forms of discounts: Seasonal discount
A price reduction to buyers who buy merchandise or services out of season
Forms of discounts: Cash discount
A price reduction to buyers who pay their bills promptly. 2% to pay yearly
Trialability
A purchasing or consumption event that provides first time or limited experience with a service, product, or brand, the ability to try makes the consumer more inclined to test out because the risk is minimized
Discounts
A reduction from normal prices to increase sales and reduce inventories.
Interpretive Method
A researcher observes a customer or group of customers in their natural setting. Interprets their behavior based on an understanding of the social and cultural characteristics of that setting
Straight Rebuy
A routine purchase that may have been made many times before and are red zone decisions
Stimulus-Response Presentation
A sales presentation format that assumes that given the appropriate stimulus by a salesperson, the prospect will buy
Formula Selling Presentation
A sales presentation format that consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect
Need-Satisfaction Format
A sales presentation format that emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers
need-satisfaction presentation
A sales presentation format that emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers.
Conference Selling
A salesperson and other company resource people meet with buyers to discuss problems and opportunities
Straight Salary Compensation Plan
A salesperson is paid a fixed fee per week, month, or year
Cold Canvassing (Cold Calling)
A salesperson may open a directory, pick a name, and contact that individual or business
Straight Commission Compensation Plan
A salesperson's earnings are directly tied to the sales or profit generated
Combination Compensation Plan
A specified salary plus a commission on sales or profit generated
Job Analysis
A study of a particular sales position, including how the job is to be performed and the tasks that make up the job
Hypothesis
A tentative claim about the cause(s) of the "problem" (A tentative answer to the question) -can include "a cause and an effect" or a numerical prediction -can address an existing phenomenon or a future one
Which of the following statements regarding Internet marketing channels is most accurate?
A unique feature of these channels is that they combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers.
Esteem Needs
A universal desire for a sense of accomplishment and achievement
Marketing web site
A web site that engages consumers in interactions that will move them closer to a direct purchase or other marketing outcome
Job Description
A written document that describes job relationships and requirements that characterize each sales position
Types of institutional advertisements Chapter 18
A. Advocacy - state firm's position on an issue B. Pioneering institutional - what a company is, what it can do, where it is located C. Competitive institutional - promote advantage of one product class over another (milk over soda) D. Reminder institutional - bring company's name to attention of target market
Brand Equity
Added value that a respected, well-known brand name gives to a product in the marketplace. Built sequentially on four dimensions: Differentiation, Relevance, Esteem, Knowledge.
Types of trade oriented sales promotions Chapter 18
A. Allowances and discounts - i. Merchandise allowance - reimbursing a retailer for extra in-store support ii. Case allowance - discount on each case order during a certain time period iii. Finance allowance - paying retailers for financing costs associated with consumer sales promotions B. Cooperative advertising - manufacturer pays a percentage of retailer's local ad expenses for advertising the manufacturer's products C. Training of distributor's salesforce
Types of consumer-oriented sales promotion Chapter 18
A. Coupons - offer discounted price to consumer; stimulates demand, encourages retailer support; cause consumers to delay purchases B. Deals - short-term price reductions; used to increase trial or in reaction to a competitor, reduce consumer risk; cause consumers to delay purchases, reduce perceived value C. Premiums - products offered for free or reduced price; build goodwill and company image; consumers buy for premium rather than the product itself D. Contests - consumers apply their skill to win a prize; increase customer involvement and purchases; require creative or analytical thinking E. Sweepstakes - participants submit entry for chance at a prize; encourages brand loyalty and increased purchases or visits to store; sales drop after sweepstakes end F. Samples - offering the product for free or at a greatly reduced price; encourages product trial, low risk to consumer; high cost for company G. Loyalty programs - sales programs used to encourage repeat customers; creates brand loyalty; expensive H. Point of purchase displays - in store ads for a product; high product visibility; hard to get retailers to allocate high traffic space in store I. Rebates - offers the return of a portion of the price of a product based on proof of purchase; stimulates demand; easily copied, steals future sales, reduces perceived product value J. Product placements - use of a brand name/product in a movie, TV show, video game, or commercial; demonstrate product uses, positive message in noncommercial setting; little control over presentation of product
Carrying out advertising program Chapter 18
A. Full-service agency - does research, selects media, develops copy, and produces artwork; coordinates integrated campaigns with all marketing efforts B. Limited-service (specialty) agency - specializes in one aspect of creative process; usually provides creative production work; buys previously unpurchased media space C. In-house agency - made up of company's own advertising staff, may provide a range of services depending on company needs
Organization sales structure for salespeople Chapter 20
A. Geography - based on customer location B. Customer - based on industry C. Product - based on specific product
Types of prospects Chapter 20
A. Lead - name of person who may be a possible customer B. Prospect - customer who wants or need product C. Qualified prospect - person who wants the product, can afford it and can make the decision to buy it Methods of finding prospects: A. Trade shows, conferences, internet, social networks B. Cold canvassing/cold calling - sales person opens a directory, picks a name, contacts the person -> high refusal rate
Types of customer sales support personnel Chapter 20
A. Missionary salespeople - promote new products B. Sales engineer - solves costumer problems and has technical expertise C. Team selling - using entire team of professionals in selling to and servicing major customers - when specialized knowledge is needed
Types of order taking Chapter 20
A. Outside order takes - visit customers and replenish inventory stocks B. Inside order takes/order clerks - answer questions and take order for customers -> inbound telemarketing - customers call to ask questions and make purchases
Methods for setting promotional budget Chapter 17
A. Percentage of sales - funds are allocated to promotion as a percentage of past or anticipated sales B. Competitive parity - matching competitor's absolute level of spending or proportion point of market share C. All you can afford - money is allocated to promotion only after all other budget items are covered -> fiscally conservative (small businesses) D. Objective and task - company determines promotion objectives, outlines tasks, determines cost from there
Pretesting advertisements Chapter 18
A. Portfolio tests - tests actual advertisement with other ads to gauge reaction to new ad B. Jury tests - showing ad copy to panel of customers and having them rate it C. Theater tests - consumers invited to view new television shows or movies where test commercials are shown
Push vs. Pull Strategy Chapter 17
A. Push strategy - directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product - personal selling and sales promotions very important; pushing product through channels to consumers; promotes intermediaries B. Pull strategy - directing promotional mix at ultimate consumers to encourage them to ask retailer for product
Types of personal selling Chapter 20
A. Relationship selling - building ties to customers based on a salesperson's attention and commitment to customer needs over time -> creates customer value B. Partnership/Enterprise selling - buyers and sellers combine expertise to create customized solutions for mutual benefit
Types of presentations Chapter 20
A. Stimulus response format - given appropriate stimulus, prospect will buy the product - try one sales appeal after another B. Formula selling format - presentation consists of info that must be provided in an accurate, thorough and step by step manner to inform the prospect -> canned sales presentation -> memorized standardized message C. Need satisfaction format - emphasizes probing the prospect and identifying their needs and interests and tailoring the presentation to them
Types of cost-based pricing: cost-plus pricing
Adding a standard markup to the cost of the product. Remains popular because: 1. Sellers are more certain about costs than about demand. 2. When all firms in the industry use this pricing method, prices tend to be similar and price competition is thus minimised.
Profiles of Major Media Types -Outdoor
Advantages- flexibility; high repeat exposure; low cost; low message competition; good positional selectivity Limitations- little audience selectivity; creative limitations
Different media alternatives Chapter 18
A. Television - choice of large or specific audience, effective; high cost, short exposure time, can't convey complex info B. Radio - target specific local audiences, ads placed quickly; no visual element, short exposure, can't convey complex messages C. Magazines - target specific audiences, high-quality color, can be saved, can convey complex messages; long time to place ad, competing with other magazine features, high cost D. Newspapers - covers local markets, quick ad placement, can be saved, quick consumer response, low cost; competing with other paper features, short life span, poor color quality E. Yellow pages - excellent geographic coverage, long life span, always available; competitive directories in many markets, difficult to keep up to date F. Internet - wide range of video and audio capabilities, interactive ads; requires large files and time to load, effectiveness hard to gauge G. Outdoor - low cost, high visibility in local markets, repeat exposure; message must be short and simple, lack of control over who actually sees ad, traffic hazard H. Direct mail - high selectivity, can convey complex information, highly personalized, high quality graphics; high cost per contact, junk mail gives company bad image I. Place based media - nontraditional forms of advertisements, ie. airports, health clubs, hotels
Closing techniques Chapter 20
A. Trial close - asking the prospect to make a decision on some aspect of the purchase - "do you want the grey or blue one" B. Assumptive close - asking prospect to consider choice concerning delivery, warranty, etc. C. Urgency close - commit the prospect quickly by making reference to the timeliness of the purchase - "the low interest ends next week"
Promotional Elements Chapter 17
A. advertising - mass selling B. personal selling - customized interaction C. public relations - mass selling D. sales promotion - mass selling E. direct marketing - customized interaction
Which of the following statements regarding cold canvassing is most accurate?
About 75 percent of U.S. consumers consider cold canvassing an intrusion on their privacy.
Corporate Social Responsibility
Accepting an obligation to give equal weight to profits, consumer satisfaction, and social well-being -Ex: Green Marketing- manufacturing and selling products that can be used and disposed of with minimal impact on the environment
Profiles of Major Media Types -Newspapers
Advantages- flexibility; timeliness; good local market coverage; broad acceptability; high believability Limitations- short life; poor reproduction quality; small pass-along audience good for local customers
Profiles of Major Media Types -Radio
Advantages- good local acceptance; high geographic and demographic selectivity; low cost Limitations- audio only; fleeting exposure; low attention ("the half-heard" medium); fragmented audiences
Profiles of Major Media Types -Television
Advantages- good mass marketing; low cost per exposure; combines sight, sound, and motion; appealing to the senses. Limitations- high absolute costs; high clutter; fleeting exposure; less audience selectivity
Profiles of Major Media Types -Direct Mail
Advantages- high audience selectivity; flexibility; no ad competition within the same medium; allows personalization Limitations- relatively high cost per exposure; "junk mail" image
Profiles of Major Media Types -Magazines
Advantages- high geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good pass along readership Limitations- long ad purchase lead time; high cost; no guarantee of position
Profiles of Major Media Types -Internet
Advantages- high selectivity; low cost; immediacy; interactive capabilities; quickest medium Limitations- potentially low impact; the audience controls exposure
Online advertising
Advertising that appears while consumers are browsing the web, including display ads, search related ad
Differential Marketing
Aims to create a highly specialized product or service that appeals to a smaller group of people
distribution
All the activities invovlved in moving or transferring the ownership of goods or services from producers to consumers
Evoked Set
Alternatives that a consumer actually considers in making a purchase decision
Qualified Prospect
An individual wants the product, can afford to buy it, and is the decision maker
Salesperson
An individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.
Wholesaler
An intermediary who sells to other intermediaries.
Adapted Global Marketing
An international marketing approach that adjusts the marketing strategy and mix elements to each international target market, which creates more costs but hopefully produces a larger market share and return.
Standardized Global Marketing
An international marketing strategy that basically uses the same marketing strategy and mix in all of the company's international markets.
Cue
An object or signal in the environment that determines the nature of the consumer's response to a drive
Customer Database
An organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data
Sales Force Management
Analyzing, planning, implementing, and controlling sales force activities.
Inside Order Takers
Answer simple questions, take orders, and complete transactions with customers
Agent or broker
Any intermediary with legal authority to act on behalf of the manufacturer
Agent/Broker
Any intermediary with legal authority to act on behalf of the manufacturer.
A. Advertising Chapter 17
Any paid form of non-personal communication about an organization or product by an identified sponsor - Advantages: efficient means for reaching large numbers; creates demand for product; very high degree of control over message creation and distribution; repeatable - Disadvantages: high costs; difficult to receive good feedback and measure impact; lack of control over who actually sees the message; one-way, impersonal communication
B. Personal selling Chapter 17
Any paid form or personal presentation of goods and services for the purpose of making sales and building customer relationships - Advantages: immediate feedback, persuasive, select audience, can give complex info; more genuine/personal, individualized service, establishes a long-term relationship; potential for up-selling; flexibility - Disadvantages: expensive per exposure; inconsistent, messages differ between sales people; lack of control over the creation/delivery of the message
Undifferentiated Marketing
Appeals to a broad market base known as mass marketing ex. milk, gas, bag of ice
Opinion Leaders
Are more knowledgeable about a certain product or service than the average consumer. -Sometimes they purchase new products before others and influence others in their purchases -Examples: Celebrities with Chanel,Rolex
Engel's Laws
As household income increases: -A small percentage of expenditures goes for food. -Percentage spent on housing, household operations, and clothing remains constant. -Percentage spent on recreational and educational items increases.
Assumptive Close
Asking the prospect to consider choices concerning delivery, warranty, or financing terms under the assumption that a sale has been finalized
Gap Analysis
Asks consumers to assess their expectations and experiences on dimensions of service quality.
Business Analysis
Assessing key potential performance factors including profit, margins, turnover, channels acceptance and product prototype development
Brand extensions
Attaching a popular brand name to a new product in an unrelated product category.
Extending the Product Lifecycle: Increasing the number of users.
Attracting new customers who have not previously used the product.
Six forms of Nonstore retailing
Automatic vending - Direct mail and Catalogs -Television home shopping - online retailing - Telemarketing - and Direct selling
Quantitative Assessments
Based on input- and output-related objectives set forth in the sales plan
Marketing Mix Strategy
Blending the 4 strategy elements to fit the needs and preferences of a specific target market
Baby Boomers
Born between 1946-1964 Popular segment because their money Control 80% of personal financial assets
Generation X
Born between 1968-1979 Largest generation demographic Family oriented, well educated, and optimistic
________ do not take title to merchandise, but unlike agents, they usually have no continuous relationship with the buyer or seller but negotiate a contract between two parties and then move on to another task.
Brokers
C. Public relations Chapter 17
Building good relations with the company's various publics by obtaining favorable publicity, building up good corporate image and handling or heading off unfavorable rumors, stories, and events Publicity - non-personal, indirectly paid presentation of an organization (news story) - Advantages: most credible source in consumer's mind; can fix problems; inexpensive, no direct payment - Disadvantages: difficult to get media cooperation; lack of control; can appear disingenuous depending on the situation and how it's handled
Product
Bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs. Symbolic attributes: Logo, Shape of product.
Types of products:
Business and consumer.
B2B Marketing
Business to Business
Label
Carries an item's brand name or symbol, the name and address of the manufacturer or distributor, information about the product's composition and size, and recommended uses.
Caterpillar vs John Deer
Caterpillar makes construction equipment and only sells equipment to businesses (B2B) John Deer sells to consumers and businesses
Characteristics of Services
Ch 12 slide 9.
Mary is currently working on updating her company's website, incorporating signs and symbols that will help represent the ideas that the company is trying to express. Mary is most likely working on the _____ for the website.
Coding process
Marketing Research
Collecting and using information for marketing decision making
Promotion Strategy (Marketing Mix)
Communication link between sellers and buyers. Firms may communicate messages: -directly through salespeople -indirectly through advertisements and promotions
Wasted coverage Chapter 17
Communication with consumers who are not in the target audience
Market Development
Concentrates on finding new markets for existing products.
Product Mix
Consists of all of the product lines offered by an organization.
Political/Legal Environment
Consists of laws that require firms to operate under competitive conditions and to protect consumer rights Ex: Federal Trade Commission (FTC) which has the broadest regulatory powers over marketing
Brand recognition
Consumer awareness and identification of a brand.
Brand preference
Consumer choice of a product on the basis of a previous experience.
Limited Problem-Solving
Consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand
Routinized Response Behavior
Consumer makes many purchases routinely by choosing a preferred brand or one of a limited group of acceptable brands
Recovery (Business Cycle)
Consumer purchasing power increases -offering superior service at lower prices, holding down costs because demand is uncertain
Brand insistence
Consumer refusal of alternatives and extensive search for desired merchandise.
Prosperity (Business Cycle)
Consumer spending power is high; buyers are willing to spend more for premium versions of well-known brands. -Offering new products, increasing promotional efforts, and expanding distribution.
Depression (Business Cycle)
Consumer spending sinks to its lowest level
Consumer Behavior (Economist)
Consumers are "rational," that is they rationally weigh the costs and benefits of every possible item and choose the item that maximizes their satisfaction (utility) -Ex:A U of A student is trying to decide what courses he should take, in order to get the highest possible grade point average.
Recession (Business Cycle)
Consumers focus on basic, functional products -lowering prices, increasing promotions that includes special offers
Product positioning
Consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands.
In class, we talked about various franchises, such as Midas Mufflers and Wendy's, as good examples of:
Contractual Vertical Marketing Systems
Extending the Product Lifecycle: Increasing frequency of use.
Convincing current customers to buy a product more frequently boosts total sales even if no new buyers enter the market.
In class, we discussed various ways to classify retailers based on their ownership. We noted that Starbucks is a good example of a(n):
Corporate Chain.
In Business in the News, we heard about "detractors" of the proposed the free-trade Trans-Pacific Partnership deal. From what we heard, those against the deal feel that it favors which group?
Corporations over labor.
Limited-time offers (flash sales)
Create buying urgency and make buyers feel lucky to have gotten in on the deal.
Product Invention
Creating new products or services for foreign markets.
Recognition
Customers acknowledge the brand for identification processes
Insistence
Customers insist on a product brand and are willing to exercise considerable effort to acquire the product brand
Insistence Goods
Customers insist on a product brand and are willing to exercise considerable effort to acquire the product brand
Eight-Second Rule
Customers will abandon their efforts to enter and navigate a website if download time exceeds:
Marketing Research
Data mining to understand your target market, is the root of all product development to meet trends in the industry
Product Strategy (Marketing Mix)
Deciding what goods or services the firm should offer to a group of customers: -customer service -package design -brand names, trademarks, patents, and warranties -lifecycle of a product -product positioning -new-product development
Joint Demand
Demand for a product that depends on the demand for another product used in combination with it ex. if housing construction slows the drop in the supply of lumber will affect the demand for concrete The demand for one resource affects the demand for another
Inelastic Demand
Demand throughout an industry will not change significantly due to a price change ex. if the price of lumber drops construction companies will not buy more unless the overall demand for housing also increases
Volatile Demand
Derived demand creates volatility in business market demand ex. demand for gas pumps may decrease if demand for gas slows down
Product Life Cycle
Describes the stages a new product goes through in the marketplace; introduction, growth, maturity, and decline.
Whole-channel view
Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network.
Actualization Needs
Desire to realize potential and find fulfillment. Expressing your unique talents and capabilities
Quality of Services
Determined by 5 variables: Tangibles, Reliability, Responsiveness, Assurances, Empathy.
E. Direct marketing Chapter 17
Direct communication with consumer to generate a response in form of order, visit, request for further information, etc. - Advantages: geo-demographic targeting; direct communication; relevance to consumer; highly customizable, adaptable - Disadvantages: annoying to consumer; declining customer response; the necessary database management is expensive
Catalog marketing
Direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online
Direct response television marketing (DRTV)
Direct marketing through television, including direct response television advertising (or infomercials) and home shopping channels and interactive television advertising
Pull Strategy
Directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product. seeing demand from ultimate consumers, retailers order the product from wholesalers.
Push Strategy
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
Selective Distribution
Distribution lies between the two distribution extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products.
Market Segmentation
Dividing a larger target market into subsets of consumers. These subsets have common needs the goal is to design a marketing strategy to fill their needs
Psychographic segmentation
Division of a pop into groups that have similar attitudes, values and lifestyles (VALs). 6 types.
Product Related Segmentation
Division of a population into groups based on their relationships/ aspirations to a product
Psychographic Segmentation
Division of a population into groups that have similar attitudes values and lifestyles
Product-related Segmentation
Division of a population into homogeneous groups based on their relationships to a product.
Geographic Segmentation
Division of an overall market into groups based on their location
Geographic Segmentation
Division of an overall market into homogeneous groups based on their locations; Marketers look at: Economic variables, Geographic indicators, Migration patterns. Pay close attention to fast growing states. (GIS) = Geographic information system.
Demographic Segmentation
Division of an overall market into homogenous groups based on: Gender and age, Income and occupation Education, Sexual orientation, Household size, Stage in the family life cycle. Look over slides Ch 9 17-31.
Demographic Segmentation
Division of market into groups based on gender and age, income, education, sexual orientation, household cycle
Cultural environment
Each country has its own folkways, norms, and taboos. When designing global marketing strategies, companies must understand how culture affects consumer reactions in each of its world markets. In turn, they must also understand how their strategies affect local cultures.
Which statement regarding efficient supply chains is MOST ACCURATE?
Efficient supply chains may utilize cross-docking.
Data Mining
Efficient way to sort through huge amounts of data and make sense of it. Focuses on identifying relationships that are not obvious to marketers
Electronic Marketing Channels
Employ the Internet to make goods and services available for consumption or use by consumers or industrial buyers.
Direct and digital Marketing
Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and cultivate lasting customer relationships
Direct Investment
Entering a foreign market by developing foreign-based assembly or manufacturing facilities.
Joint Venturing
Entering foreign markets by joining with foreign companies to produce or market a product or service.
Exporting
Entering foreign markets by selling goods produced in the company's home country, often with little motivation.
Licensing
Entering foreign markets through developing an agreement with a licensee in the foreign market.
Physiological Needs
Essential requirements for survival ex. food water shelter clothing
Screening
Evaluating and eliminating new product ideas for their potential marketability against some set of standards
Segmenting by brand loyalty
Ex frequent purchaser program.
Choice
Exists in the product or service selection offered to consumers.
Service Quality
Expected and perceived quality of a service offering.
Supplies
Expense items that do not become part of a finished product, these are not a part of the finished product
Total logistics Cost
Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.
Market Testing
Exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy.
Noise Chapter 17
Extraneous factors that can work against effective communication by distorting messages or feedback received ie. printing error, accent, slang
Economic Environment
Factors that influence consumer buying power and marketing strategies
Scheduling advertising Chapter 18
Factors: - Buyer turnover - how often new buyers enter market to buy the product - Purchase frequency - how often is product purchased - Forgetting rate - speed buyers forget brand if advertising not seen Approaches: - Continuous (steady) schedule - run continuously throughout year - Flighting (intermittent) schedule - reflect seasonal demand - Pulse (burst) schedule - flighting mixed with continuous because of increases in demand, new products, etc.
Product placement is illegal in all countries outside of the United States
False
Emerging Economies (Industrializing Economies)
Fast growth in manufacturing results in rapid poor in other ways. Industrialization normally creates a new rich class and a growing middle class. As more developed markets stagnate and become increasingly competitive, many marketers are now targeting growth opportunities in emerging markets. Ex. Brazil, Russia, India, China
Evaluative Criteria
Features that a consumer considers in choosing among alternatives
Safety Needs
Financial or lifestyle security, protection from physical harm, and avoidance of the unexpected
Safety Needs
Financial or lifestyle security. protection from physical harm, avoidance of the unexpected ex. insurance
Development
Financial outlays increase substantially as a firm converts an idea into a visible product.
Limited Service Research Supplier
Firm that specializes in a number of activities such as conducting field interviews or performing data processing but not sophisticated moduling
Intensive Distrubtion
Firm tries to place its products and services in as many outlets as possible.
Backshoring
Firms return much of their offshore work to the U.S. to save money and improve customer service efficiency.
Product diversification
Focuses on developing entirely new product for new markets.
the Central American Free Trade Agreement (CAFTA-DR)
Following the apparent success of NAFTA, in 2005 the Central American Free Trade Agreement (CAFTA-DR) established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
European Union
Formed in 1957, the EU set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations. Today, the EU represents one of the world's largest single markets.
Developing an IMC Program Chapter 17
Four W's of developing a promotion program: - Who is the target audience? - behavioral targeting, research consumer interests/needs - What are the promotion objectives, budget, kinds of promotions available? - where in the adoption process/hierarchy of effects are the target consumers? - Where should the promotion be run? - When should it be run?
Business Products
Goods and services purchased directly or indirectly in the production of other goods and services for resale ex. plastic for toothpaste tube, rubber for shoes
Subcultures
Groups with their own distinct modes of behavior -Can differ by ethnicity, nationality, age, rural versus urban location, religion, and geographic distribution -Population mix in U.S. is changing as the Hispanic, African American, and Asian populations grow
Subcultures
Groups with their own distinct modes of behavior. Can differ by ethnicity, nationality, age, rural vs urban location, religion, and geographic distribution. ex. Punk Rock
Diversification
Harvest and delete and focus on improving the best sellers in the market
Relative Advantage
Having a product that is better than others
SWOT Analysis
Helps planners compare internal organizational strengths and weaknesses with external opportunities and threats
Homeshoring
Hiring workers to do jobs from their homes.
Cognitive Dissonance
Imbalance among knowledge, beliefs, and attitudes that occurs after an action or decision, such as a purchase
Hispanics, African Americans, Native Americans, Asians
Hispanics growing faster than African Americans but marketers are having trouble connecting with them Asians: fastest growing group with the most money and education Native Americans: Neglected by marketers and poorest group
Marketing Logistics and Supply chain management: Warehousing
How many, what types, and where? -Storage warehouses- stock for extended timeframes -Distribution centers- automated warehouses, which receives goods from suppliers and turns quickly to customers.
Allegra is an antihistamine. To create brand awareness, the company is offering people who request information about the product a seat cushion to use at their favorite sporting event. Its television ad shows a woman half-heartedly watching a sporting event. The voiceover asks if she is bored or congested. In the next scene, the person is having a great time and is decongested after taking Allegra. This use of the same promotional theme throughout a company's marketing campaign is an example of how marketers use __________.
IMC
Taco Bell allocates its promotional budget to 70% traditional media, which includes television advertising; 20% to digital media, which includes website development; and 10% to new media channels. The fact that the message consumers receive is the same regardless of which channel delivers it reflects Taco Bell's dedication to ___________.
IMC
New Product Development Process
Idea Generation Screening Business Analysis Test Marketing Commercialization
Compatibility
If compatible to life then it will be adopted
Indirect Channels
Include intermediaries that are between the producer and consumer and perform numerous channel functions.
Retailing
Includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use. (Act of providing the end consumers with a product or service)
Follow-Up Stage
Includes making certain the customer's purchase has been properly delivered and installed and addressing any difficulties experienced with the use of the item
Extending PLC
Increase frequency of use Increase number of uses Find new users Improve existing products
Market penetration
Increase sales of existing products in existing markets.
Form of Ownership
Independent Retailer - Corporate chain - Contractual systems
In class, we discussed various ways to classify retailers based on their ownership. We noted that Scribbles Coffee shop in Kent is a good example of a(n):
Independent Retailer.
Response
Individual's reaction to an set of cues and drives
Based on lecture, which of the following is the best representation of a conventional marketing channel?
Individual, independent channel members focusing on their own needs
Marketing Channels
Individuals and firms involved in the process of making a good or service available for use or consumption by consumers or industrial users; help create value for consumers through the four utilities: time, place, form and possession.
The Asch Phenomenon
Individuals conform to majority rule even if that majority rule goes against their beliefs Peer pressure can change opinions even of obvious facts -- think jurors Can affect many purchase decisions
Social Pressure (Asch Phenomenon)
Individuals conform to majority rule, even if that majority rule goes against their beliefs -The Asch phenomenon can be a big factor in many purchase decisions -From major choices such as buying a car to deciding whether to buy a pair of shoes on sale
2nd economic factor: income distribution
Industrialized nations may have low-, medium-, and high-income households. In contrast, countries with subsistence economies consist mostly of households with very low family incomes. Still other countries may have households with either very low or very high incomes.
Primary Data
Information collected for a specific investigation
Compatibility
Innovation consistent with the values and experiences of potential adopters.
Relative advantage
Innovation that appears far superior to previous ideas.
Decline stage
Innovations or shifts in consumer preferences bring about an absolute decline in industry sales.
B-2-B Product Classifications
Installations Accessories Raw Materials Component Parts Supplies Services
FOUR I's of Service
Intangibility, Inconsistency, Inseparability, Inventory
Services
Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
Services
Intangible tasks that satisfy the needs of consumers and business users. Ex -> Warranty, Customer service.
Degrees of Distribution Density
Intensive, exclusive and selective.
Benefits from Internet
Interactivity, individuality.
Screening and Evaluation
Internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.
Cannibalization
Introducing a new product that adversely affects sales of existing products.
In Marketing in the News, we heard that Walmart acquired what company for $3 billion?
Jet.com
In class, we considered the case of an Administered Vertical Marketing Systems. One good example of such a system is:
Kraft selling its mayo in Acme stores
Industrial Economies
Major economies of manufactured goods, services, and investment funds. Trade goods among themselves and export them to other types of economies for raw materials and semifinished goods. Rich market for all sorts of goods. Ex. United States, Japan, Norway
Which of the following statements regarding direct marketing is most accurate?
Many customers believe direct marketing saves time, is entertaining, and offers privacy.
Consumer Behavior (Psychologist)
Many times, we behave in an irrational and inconsistent manner when making decisions
Marketing Stratagies
Market Penetration Market Development Product Development Diversification
Core Regions
Marketers draw 40 to 80 percent of sales from region.
Straight Product Extension
Marketing a product in a foreign market without making any changes to the product.
Integrated Marketing Communications (IMC) Chapter 17
Marketing communications programs that coordinate all promotional activities - advertising, personal selling, sales promotion, public relations, and direct marketing - to provide a consistent message across all audiences
Full Service Research Suppliers
Marketing research organizations that offer all aspects of the marketing research process
Direct mail marketing
Marketing that occurs by sending an offer, announcement, reminder, or other item to a person at a particular physical or virtual address
____________ gives its outstanding salespeople some unconventional rewards that include new pink Cadillacs and jewelry.
Mary Kay cosmetics
Commercialization
Mass market rollout of the product and developing distribution systems to ensure adequate supportive product flow to the market
RFID tags
May replace some of the functions of UPC codes. Reduce labor costs and improve inventory control.
Perception
Meaning that a person attributes to incoming stimuli gathered through the five senses Results from the interaction of two types of factors: -Stimulus factors -Individual factors
Benchmarking
Measuring quality by comparing performance against industry leaders. Requires two types of analyses: internal and external (Read CHP 12 Slide 24-25).
Designing an Advertisement Chapter 18
Message content: - Fear appeals - source credibility is important - Humor Appeals - most attention-grabbing and memorable usually, but the content is more likely to be remembered than the actual brand/product; humor is not universal - Sex appeals - using or being associated with a product will make the consumer more attractive Selecting the right media: - Reach - how many people/households will see the ad - Frequency - the number of times people will see the ad - Related to target audience, type of product, nature of message, objectives, budget, costs of alternatives - Knowing media habits of target audience - Product attributes may necessitate certain media be used - Cost
Complexity
More complex, the slower it moves
Why Study Consumer Behavior (Marketer)
More effective marketing strategies, by understanding: -Customers' thoughts and emotions -How customers are influenced (e.g. family, friends, media) -How customers process information and make decisions?
Purchasing and Negotiation Process
More formal and professional than consumer purchasing process because B2B involves more complex decisions Supplier who serve B2B markets must work with multiple buyers Purchasers require a longer time frame
Online Consumers
More likely to be women than men and tend to be better educated, younger and more affluent than the general U.S. population, which makes them an attractive market.
In Marketing in the News, we heard that a company is "polishing its luxury credentials" by offering things such as a weekend stay at the Gleneagles estate in the Scottish Highlands, including a scotch tasting in the cellar and a champagne picnic in the hills, for $10,200 a couple. What company did we hear about with this offering?
Moët Hennessy
Consumer products (B2C)
Product destined for use by ultimate consumers.
Assessing the Advertising Program Chapter 18
Posttests - used to determine whether ad accomplished its intended purpose A. Aided recall - subject asked what they remember about an ad B. Unaided recall - subjects asked what ads they generally remember, no specific prompting C. Attitude tests - measure changes in subject's attitudes after seeing ad D. Inquiry tests - additional product information, product samples, or premiums are offered to an ad's viewers/readers E. Sales tests - involve controlled experiments such as using different advertising campaigns in different markets and then comparing consumer purchasing reports to determine effectiveness of ad campaign
Rejection
Potential customers will not buy the product brand unless its image is changed to meet their expectations
In Business in the News, we heard about the new "free-trade Trans-Pacific Partnership" deal that was discussed at a recent conference in Vietnam. Based on what we heard, who told this group that "nations need to stay committed to economic openness or risk being left behind?"
President Xi Jinping, China
Secondary Data
Previously published information Internal Data + External Data
Secondary Data
Previously published information: -less expensive -less time consuming
Forms of discounts: Quantity discount
Price reduction to buyers who buy large volumes.
Forms of allowances: Trade-in allowances
Price reductions for turning in an old item when buying a new one.
Reference pricing
Prices that buyers carry in their minds and refer to when they look at a given product. - a company might produce a higher prices product to make their other one sell better.
Special‑event pricing
Pricing differently in certain seasons to draw more customers.
4. Price adjustment strategies: Psychological pricing
Pricing that considers the psychology of prices and not simply the economics: the price is used to say something about the product. (Higher price= better quality) - lawyer prices - are they actually better if they charge more?
Test marketing
Prior to mass market roll out, assessing the viability of the other marketing mix variables including promotion, distribution requirements, and pricing structure. The product is not tested
Communication Chapter 17
Process of conveying a message to others Elements of communication: a. source - company or person who has info to convey b. message- info sent by source c. channel of communication - conveys the message (salesperson, advertisement) d. receiver - consumers who read, hear, see message e. encoding - having sender transform idea into set of symbols f. decoding - receiver take symbols (the message) and transform back into an idea
Exploratory Research
Process of discussing a marketing challenge with informed sources both within and outside the firm and examining information from secondary sources
Exploratory Research
Process of discussing a marketing problem with informed sources both within and outside the firm and examining information from secondary sources -Customers -Suppliers -Retailers -Sales force Using internal data -Sources of internal data are sales records, financial statements
Family Lifecycle
Process of family formation and dissolution Lifestage -- not age-- is primary concern
Family Lifecycle
Process of family formation and dissolution.
Sampling
Process of selecting survey respondents (research participants)
Consumer Behavior
Process through which buyers make purchase decisions
Component Parts
Processes expense items that become part of a finished product and may be finished goods or materials needing further processing
Order Taker
Processes routine orders or reorders for products that were already sold by the company
In lecture, we heard from Gary Trinetti talking about Supply Chain Management. Gary told us that supply chain management is a "new" concept, that was not used when he was in class at KSU. However, the idea of supply chain management did relate to concepts that he did learn. Which concepts are related to supply chain management according to Gary?
Procurement and Logistics
Marketing Mix: 4P's
Product Place Price Production
How stage of product's life cycle and stage of consumer's adoption process affects development of promotional mix Chapter 17
Product Life Cycle - Advertising is most important during introduction period of product life cycle, personal selling during growth, and sales promotion in maturity and decline a. introduction stage -to inform: publicity, advertising, sale-force calling intermediaries, sales promotion like free samples b. growth stage -to persuade: personal selling, advertising to differentiate c. maturity stage -to remind: reminder advertising, sales promotion(discounts), limited personal selling, direct-mail reminders d. decline stage -to phase out: little money spent on promotion Adoption Process a. pre-purchase stage -advertising is most important because informing is the goal, sales promotions like free samples b. purchase stage - personal selling is the most important, advertising low, sales promotions like coupons, direct marketing c. postpurchase stage - salesperson still important, advertising for assurance, sales promotion
Trademark Searches
Product names must be carefully trademark searched prior to introduction into the market because products extend globally more today than ever before. What you say in one country doesn't mean the same in another country
Business products (B2B)
Product that contributes directly or indirectly to the output of other products for resale; also called industrial or organizational product.
Convenience Goods
Products a consumer needs but is not willing to spend much time shopping for. Red zone buy Staple Goods Impulse Goods Unplanned Goods Emergency Goods
Consumer Products
Products bought by ultimate consumers for personal use.
Generic products
Products characterized by plain labels, no advertising, and the absence of brand names.
Introductory stage
Products in this stage might bring new technology to a product category; Technical problems and financial losses are common.
New Unsought Goods
Products offering really new ideas that potential customers don't really know about yet
Regular Unsought Goods
Products or services that consumers may need but don't regularly think about their acquisition until a time of recognized need occurs
Unplanned Goods
Products purchased because of merchandising or opportunity and will be consumed or used at some point in the future
Consumer Products
Products purchased by the end consumers for personal use ex. toothpaste, shoes
Consumer Products
Products purchased by the ultimate consumer.
Shopping Goods
Products that a consumer feels are worth the time and effort to compare with competing products Heterogeneous Homogeneous
Specialty Goods
Products that a consumer really wants Preference Insistence
Staple Goods
Products that are bought often, routinely and without much thought
Impulse Goods
Products that are bought quickly because of a felt need
Emergency Goods
Products that are purchases immediately when the need is great
Unsought Goods
Products that consumers do not want yet or even know they can buy New Unsought Goods Regular Unsought Goods
You are meeting with the head of a consumer advocacy group that claims your firm's promotion activities are causing food prices to rise. Naturally, you disagree with this claim, and you are meeting with this individual to make your case. Which of the following statements would be a strong defense against this advocacy group's claim?
Promotion can help keep prices lower by facilitating price competition.
Syndicated Services
Provides standardized data on a periodic basis to its subscribers
Public Relations Chapter 18
Publicity tools - methods of obtaining non-personal presentation of an organization or product without direct cost Types: A. News releases - inform media of an idea for a story B. News conference - to introduce new products or big changes C. Public service announcements - free time donated by media - used for non profits D. High visibility individuals
Motivation
Purchase behavior is driven by the desire to fill a perceived need. -Need : An imbalance between the consumer's actual and desired states: food,water,warmth, love,status -Once the need is satisfied, this decreases. -Marketers attempt to make a need "felt"
Which of the following statements describes the major difference between a prospect and a qualified prospect?
Qualified prospect have not only the need or desire for your product, but also the ability and authority to purchase it.
Which of the following firms has made the wisest wholesaler choice for its product?
Raisha's Retros uses a rack jobber for its replica racecar radios in travel plazas on interstate highways.
2. Price adjustment strategies- Allowances
Reduction from the list price for buyer actions such as a trade-in or promotional and sales support
Reinforcement
Reduction in drive that results from a proper response
Breadth of Product Line
Refers to the variety of different items a store carries, such as appliances and books. (Many products being sold in a single place)
Factors Affecting the Adoption Curve
Relative Advantage Complexity Compatibility Trialability Observability
Complexity
Relative difficulty of understanding the innovation influences the speed of acceptance.
Observation Methods
Researchers view the overt actions of subjects being studied ex. testing soft drinks, evaluating usage of kitchenware
Feedback loop Chapter 17
Response - impact of the message on the receiver Feedback - sender's interpretation of response and whether message was decoded as intended
Extended Problem-Solving
Results when brands are difficult to categorize or evaluate -Typical of high-involvement purchases
Raw Material Exporting Economies
Rich in one or more natural resources but poor in other ways. Much of their revenue comes from exporting those resources. Good markets for large equipment, tools, supplies, and trucks. If there is a large wealthy portion of the population, they are also a market for luxury goods. Ex. Chile, Congo
"Everyone lives by selling something" was an observation made by ______.
Robert Louis Stevenson
Levels of Problem Solving
Routine Limited Extensive
In lecture, we noted that SCM usually requires significant changes in the firm's organization structure. This is because:
SCM cuts across functional areas within the firm and even across different firms.
In lecture, we noted that:
SCM does not replace what we have learned about management, but rather builds on our past practices
Personal Selling Process
Sales activities occurring before, during, and after the sale itself, consisting of six stages: 1) prospecting 2) preapproach 3) approach 4) presentation 5) close 6) follow-up
personal selling process
Sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up.
Maturity stage
Sales of a product category continue to grow during the early part of this stage but eventually reach a plateau as the backlog of potential customers dwindles.
When a soft drink manufacturer offers digital coupons that customers can use in retail stores, it is using
Sales promotion
Growth Stage
Sales volume rises rapidly as new customers make initial purchases and early buyers repurchase the product.
Idea Generation
Seeking ideas supporting new product marketing and new product ideas can come from any and many sources
3. Price adjustment strategies: Segmented pricing
Selling a product or service at two or more prices, where the difference in prices is not based on differences in costs.
Order Getter
Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service
Screening
Separates ideas with commercial potential from those that cannot meet company objectives.
Product Line
Series of related products. Desire to grow.
Packaging
Serves three major objectives: Protection against damage (protect product), spoilage, and pilferage. Assistance in marketing the product. Cost effectiveness.
Which of the following statements concerning the pricing of services is most accurate?
Service pricing plays a role in balancing consumer demand for services.
Types of cost-based pricing: break even pricing (target return pricing)
Setting price to break even on the costs of making and marketing a product, or setting price to make a target return. *does not take into consideration customer value or supply
Brand mark
Symbol or pictorial design that distinguishes a product.
Profiles of Major Media Types
TV, Newspapers, the internet, direct mail, magazines, radio, outdoor
Goods
Tangible products that customers can see, hear, smell, taste, or touch.
Preference
Target customers will usually choose the brand over other brands perhaps because of habit or past favorable experience
Preference Goods
Target customers will usually choose the brand over other brands perhaps because of habit or past favorable experience
Micromarketing
Target potential customers at very narrow, basic levels.
Market Segmentation
Targeting distinct markets. Homogeneous Heterogeneous
Tariffs/ Duties
Taxes on certain imported products designed to raise revenues or protect domestic firms. They are often used to force favorable trade behaviors from other nations.
Technological Environment
Technology leads to: -new products -improvements in existing products -better customer service -reduced prices
5. Price adjustment strategies: Promotional pricing (temp)
Temporarily pricing products below the list price, and sometimes even below cost to increase short-run sales. -discounts (sales) -special-event pricing -cash rebates -low interest financing -longer warranties -free maintenance
Strategic Window
Temporary periods when key requirements of a market and a firm's particular competencies best fit together -requires quick action
The Cohort Effect
Tendency of members of a generation to be influenced and bound together by significant events in their formative year; Ages 17 to 22.
The Cohort Effect
Tendency of members of a generation to be influenced and bound together by significant events in their lives
Emotional Intelligence
The ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis
Multichannel Marketing
The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining and building customer relationships.
What would most likely occur at the preapproach stage in a business selling situation?
The buying role of the prospect, important buying criteria, and the prospect's receptivity to a presentation would be determined.
First Mover Strategy
The company first to offer a product in a market place will be the long term market winner
Personalization
The consumer-initiated practice of generating content on a marketer's website that is custom-tailored to individual's specific needs and preferences.
Observability
The more you see things the more they are internalized
Lead
The name of a person who may be a possibly customer
Self-Actualization Needs
The need to realize our own potential, to achieve our dreams and ambitions. What a man can do, he must do
Saturation Point
The point in the PLC when sales have reached their peak and will soon begin to fall in sales decline (Product Development)
Relationship Selling
The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time
Team Selling
The practice of using an entire team of professionals in selling to and servicing major customers
Key account management Chapter 20
The practice of using team selling to focus on important customers so as to build mutually beneficial long term cooperative relationships
Key Account Management
The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships
Outbound Telemarketing
The practice of using the telephone rather than personal visits to contact current and prospective customers
partnership selling
The practice whereby buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning, and share customer, competitive, and company information for their mutual benefit, and, ultimately, the benefit of the customer. Also called enterprise selling
Research
The process of gathering information to learn about something that is not fully known.
Modified Rebuy
The process where some review of the buying situation is done and especially when a new supplier is evaluated for existing needs and are yellow zone decisions
Prospecting Stage
The search for and qualification of potential customers
Price adjustment strategies: Geographical Pricing =Basing-point pricing
The seller selects a given city as a "basing point" and charges all customers the freight cost from that city to the customer location, regardless of the city from which the goods are actually shipped.
Field of experience Chapter 17
The sender and receiver of a message must have a similar understanding and knowledge they apply to the message -> without this there will be a miscommunication
Conspicuous Consumption
The spending of money on and the acquiring of goods and services to publicly display group membership.
Depth of Product Line
The store carries a large assortment of each item, such as a show store that offers running shoes, dress shoes, and children's shoes. (A large assortment of a single type of item)
Population
Total group of people a researcher wants to study
Consumer Behavior
The study of individuals groups or organizations and the processes they use to satisfy needs. The blending of psychology, sociology, social anthropology, marketing, and economics. Assessing the influences on the consumer from all sides The process through which buyers make purchase decisions
Personal Selling
The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision
Extensive Problem Solving
The type of problem solving consumers use for a completely new or important need- when they put much effort into deciding how to satisfy it. Blue zone
Salesforce Automation (SFA)
The use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient
salesforce automation (SFA)
The use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient.
Inbound Telemarketing
The use of toll-free telephone numbers that customers can call to obtain information about products or services and make purchases
Culture
The values, beliefs, preferences and tastes handed down from one generation to the next
Derived Demand
There is a direct link between demand for a company's output and its purchases ex. demand for a computer microchips is derived from demand for laptops
What do automatic vending, television home shopping, and direct selling have in common?
They are all forms of nonstore retailing.
Setting Objectives
This task specifies what is to be achieved
Product mix decisions
To evaluate a firm's product mix, marketers look at the effectiveness of its depth, length, and width (look for gaps).
According to lecture, SCM requires us to put information systems and metrics in place that focus on performance across the entire supply chain. Why is this important?
To help assure that all of the units in the supply chain are working well together (and not attempting to maximize their individual performance).
Which of the following is a major goal of integrated marketing communications?
To send a consistent message to consumers.
Test marketing
To verify that the product will perform well in a real-life environment.
Which of the following is the best example of noise that originates with the receiver in the communication process?
Tony checks his e-mail when the television commercial break begins.
Market Development
Trying to increase sales by selling present products in new markets
Market Penetration
Trying to increase sales of a firm's present products in its present markets probably through a more aggressive marketing mix
Personal selling Chapter 20
Two way flow of communication between a buyer and seller (often face to face) designed to influence a person's or group's purchase decision
trade system.
U.S. companies looking abroad must start by understanding the international trade system.
Which of the following statements about user-generated content (UGC) is most accurate?
UGC is published on a publicly accessible website or a social networking site.
Raw Materials
Unprocessed, natural or agricultural expense items such as logs, iron ore, wheat, and cotton that are moved to the next production process with little handling
Quantitative Forecasting
Use of statistical forecasting techniques ex. test market, trend analysis
Qualitative Forecasting
Use of subjective techniques to forecast sales ex. executive opinion, sales force composite
Urgency Close
Used to commit the prospect quickly by making reference to the timeliness of the purchase
Telemarketing
Using the telephone to sell directly to customers
Price adjustment strategies: Geographical Pricing =Freight-absorption pricing
Using this strategy, the seller absorbs all or part of the actual freight charges in order to get the desired business.
Brand Equity
Value of a brand's overall strength in the market place Differentiation Relevance Esteem Knowledge
Direct Marketing Chapter 17
Value of direct marketing to consumers: - Don't have to go to store - Can shop 24 hours a day - Saves time - Avoid salespeople - Privacy - Save money Value of direct marketing to sellers: - High level of use - Generates responses - - Direct orders - result of offers that contain all necessary info - Lead generation - offer designed to generate interest in a product so consumers ask for additional information - Traffic generation - offer designed to motivate people to visit a business Technological, Global and Ethical Issues: - Privacy and legal issues relating to data collection and direct mailing, lack of reliability and safety in global mail systems, availability of credit
Culture
Values, beliefs, preferences, and tastes handed down from one generation to the next -The broadest environmental determinant of behavior -sets boundaries (norms) for behaviors -characteristics may vary from both county to county and country to country
Product mix depth
Variations in each product that the firm markets.
Subsistence Economy
Vast majority of people engage in simple agriculture. Consume most of their output and barter the rest for simple goods and services. Few market opportunities. Ex. many African countries
Family Influences
Very important in consumer behavior. Family structure is changing to more single heads of households Children and Teenagers are a huge market that influence what their parents buy Growing influence because single parent households. Single parents are more likely to engage their children in purchasing decisions
Outside Order Takers
Visit customers and replenish inventory stocks of resellers, such as retailers or wholesalers
Trade dress
Visual components that contribute to the overall look of a brand. Visual components may be related to color selections, sizes, package, label shapes, etc.
Product Positioning Strategy
What do customers think of different brands relative to an IDEAL brand and other competing within a product category?
Which of the following is the best example of the promotional objective of combating competitive promotional efforts?
When McDonald's advertises that it has the best fries based on the number of fries sold, Burger King advertises it has the best fries based on taste tests.
Limited Problem Solving
When a consumer is willing to put some effort into deciding the best way to satisfy a need. Yellow zone
New-Task Buying
When and organization has a new need and the buyer wants a great deal of information and are blue zone decisions
Routine Problem Solving
When consumers regularly select a particular way of satisfying a need when it occurs. Red zone
You are leading a meeting of your marketing team where you are deciding on the promotion mix for your flagship product. You are working your way through the various factors that should be considered when determining an appropriate promotion mix. You are currently focused on the characteristics of your target market. Because of the nature of your product, your target market represents millions of potential customers. Which of the following best describes the appropriate promotion mix for your product?
Your promotion mix should emphasize advertising and sales promotion.
Price adjustment strategies: Geographical Pricing
Zone pricing falls between FOB-origin pricing and uniform-delivered pricing. All customers within a given zone pay a single total price; the more distant the zone, the higher the price.
Which of the following statements describes a major drawback associated with a canned sales presentation?
a canned sales presentation allows little room for customer feedback
conventional distribution channel
a channel consisting of one or more independent producers, wholesalers, and retailers, each separate business seeking to maximize its own profits, perhaps even the expense of profits for the system as a whole
Research indicates that there are four key factors involved with salesforce motivation: (1) __________; (2) effective sales management practices; (3) a personal need for achievement; and (4) proper compensation, incentives, or rewards.
a clear job description
Political-Legal Environment
a company should consider factors such as the country's attitudes toward international buying, government bureaucracy, political stability, and monetary regulations.
sense-of-mission marketing
a company should define its mission in broad social terms rather than narrow product terms
societal marketing
a company should make marketing decisions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's long-run interests
customer value marketing
a company should put most of its resources into customer value-building marketing investments
innovative marketing
a company should seek real product and marketing improvements
consumer-oriented marketing
a company should view and organize its marketing activities from the consumer's point of view
multiproduct branding
a company uses one name for all its products in a product class.
Central to integrated marketing communications (IMC) is
a consistent message across all audiences.
demand curve
a curve that shows the number of units the market will buy (responsiveness) in a given time period, at different prices that might be charged
Research shows that __________ is the single most important factor for a new product to defeat competitive ones—having superior characteristics that deliver unique benefits to the user.
a distinctive point of difference
When Tracy went to work as a new sales rep for Paradise Candles, she was told to use the following speech in her sales presentations: "Hello, Mr./Ms. (customer name). My name is (your name here). I'm calling on behalf of Paradise Candles. We carry the best wax-burning mechanical candles available in the commercial decorating industry...." Paradise instructed Tracy to use
a formula selling presentation
Which of the following is considered a durable good?
a hand mixer
channel level
a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
environmental sustainability
a management approach that involves developing strategies that both sustain the environment and produce profits for the company
Two sources of horizontal conflict are common. One is when __________.
a manufacturer increases its distribution coverage in a geographical area
indirect marketing channel
a marketing channel containing one or more intermediary levels
consultative selling
a need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution
adaptive selling
a need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information
branded community website
a web site that presents brand content that engages consumers and creates customer community around a brand
Forward integration means
a producer owns an intermediary at the next level down in the marketing channel.
The word flow as it relates to the definition of logistics management refers to decisions needed to move
a product from the source of raw materials to consumption.
point of purchase
a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying
Ralph Lauren is planning a promotion where it will showcase all of its clothing lines to buyers at retail stores. It also plans to develop a direct marketing campaign that will use social media to introduce its new seasonal styles. Ralph Lauren is using ___ with the retail showcase and ___ with the social media campaign.
a push policy; a pull policy
product sales force structure
a sales force organization in which salespeople specialize in selling only a portion of the company's products or lines
Customer (or market) sales force structure
a sales force organization in which salespeople specialize in selling only to certain customers or industries
customer sales force structure
a sales force organization in which salespeople specialize in selling only to certain customers or industries
territorial sales force structure
a sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line
stimulus-response presentation
a sales presentation format that assumes that given the appropriate stimulus by a salesperson, the prospect will buy
formula selling presentation
a sales presentation format that consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect
straight salary compensation
a salesperson is paid a fixed fee per week, month, or year
An order getter refers to
a salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service.
Brand Personality
a set of human characteristics associated with a brand name.
sales quota
a standard that states the amount a salesperson should sell and how sales should be divided among the company's products
sales plan
a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
1. Price adjustment strategies- Discount
a straight reduction in price on purchases during a stated period of time or in price on purchases during a stated period of time or in larger quantities.
General Mills and Nestlé work together to distribute General Mills products in about 140 international markets from Mexico to China. This distribution arrangement is known as
a strategic channel alliance.
A job analysis refers to
a study of a particular sales position, including how the job is to be performed and the taste that make up the job
Types of vertical Marketing systems: Contractual VMS
a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts -Franchises
Types of vertical Marketing systems: Administered VMS
a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties
In lecture, we heard from Gary Trinetti talking about Supply Chain Management. He indicated that supply chain management crosses over many areas. Which of the following is NOT one the areas that SCM covers?
a. Raw Materials b. Manufacturing c. Transportation by airplanes, barges, trucks, and rail d. Getting the item on the shelf in the store
According to lecture, retail operating costs are higher than wholesaler operating costs. Why is that true?
a. retailers need to have nicer stores than wholesalers. b. Retailers need to be more convenient to their customers than do wholesalers. c. Retailers need to deal with their customers questions d. Retailers need to deal with their customers' needs and expectations.
Aspects of __________ policies might include which individuals in a buying organization should be contacted, the amount of sales and service effort that different customers should receive, and the kinds of information salespeople should collect before or during a sales call.
account management
A policy that specifies whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out are referred to as
account management policies
Logistics refers to
activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
greening
activities that will pay off for the firm and environment in the short run
beyond greening
activities that will pay off in the longer term
In Marketing in the News, we heard that in order to be successful, retailers must:
adapt to changing consumer expectations.
A need-satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information, is referred to as __________.
adaptive selling
As a salesperson asks questions about a prospect's transportation system, the prospect says, "What I really want is reliable transportation at the lowest price I can get." The salesperson stops asking questions and pulls out a comparative price list that shows her company's transportation is the lowest priced and most reliable on the market. The salesperson has engaged in
adaptive selling
Sales research and practice show that knowledge of the customer and sales situation are key ingredients for __________.
adaptive selling
Two selling styles associated with the need-satisfaction presentation format are
adaptive selling and consultative selling
7. Price adjustment strategies: Dynamic pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations. *especially prevalent online
The three major types of vertical marketing systems are corporate, contractual, and
administered
In the hierarchy of effects, the final stage is known as
adoption
A paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor is referred to as __________.
advertising
As part of its integrated marketing communication strategy, Taco Bell utilized commercials aired during the Super Bowl. This form of _________ has an extremely large reach and hefty price tag.
advertising
Generally, companies whose customers are numerous and geographically dispersed will find promotion mixes featuring _____ to be more practical.
advertising
Leo is working on finalizing the promotion plan for his company's line of air fresheners. They plan on using a nonpersonal communication method that will use a mass medium for transmission to the target audience. Leo's company is using _____ as its promotion method.
advertising
One of the problems associated with _____ is that it is often difficult to measure its effect on sales.
advertising
Paula is working on a promotional program for her company's line of designer dog collars. Her company needs to promote the dog collars to pet owners, so she is likely to use _____ because it reaches a vast number of people at a low cost per person.
advertising
Posttests
after it has been shown to the target audience to determine whether it accomplished its intended purpose.
You respond by saying courteously, "You're absolutely right, and I am going to make it my business to be sure that never happens again." Which method have you used to handle the customer's objection?
agree and neutralize
Promotions help consumers because they
allow customers to make more intelligent buying decisions
Nonprofit service organizations use them, but public service announcements (PSAs)
alone are not a good foundation because their timing and location are controlled by others.
The most frequently used type of compensation plan for salespeople is a __________.
combination compensation plan
Multichannel Marketing
also called omnichannel marketing, is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
Personal selling assumes many forms based on the ______ and the ______ to perform the sales task.
amount of selling done; amount of creativity required
Kellogg's uses a promotional program that incorporates both pull and push policies. Kellogg's will most likely use _____ for the push policy and _____ for the pull policy.
an allowance to retailers for promoting the cereals; advertisements to the customer
Which type of salespersons would routinely be involved in an industrial straight rebut situation?
an insider order taker
consumerism
an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers
environmentalism
an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment. It is concerned with damage to the ecosystem caused by global warming, resource depletion, toxic and solid wastes, litter, the availability of fresh water, and other problems. Other issues include the loss of recreational areas and the increase in health problems caused by bad air, polluted water, and chemically treated food.
A stimulus-response presentation refers to a format that
assumes that given the appropriate stimulus by a salesperson, the prospect will buy.
Advertising refers to
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
Advertising
any paid from of nonpersonal communication about and organization, a product, a service, or an idea by an identified sponsor.
A brand name refers to __________.
any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's products or services
At the __________ stage in the personal selling process, a salesperson gains a prospect's attention, stimulates interest, and builds the foundation for the sales presentation itself.
approach
If the salesperson's objective is to "gain a prospect's attention, stimulate interest, and make transition to the presentation," what is the name of this stage of the personnel selling process?
approach
In many societies outside the United States, considerable time is devoted to nonbusiness talk designed to establish a rapport between buyers and sellers. This occurs during the __________ stage of the personal selling process.
approach
In the __________ stage of the personal selling process, the cultural setting is very important.
approach
In the __________ stage of the personal selling process, the first impression is critical.
approach
Channel Conflict
arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
A trial close refers to
asking the prospect to make a decision on some aspect of the purchase.
An assumptive close refers to
asking the prospect to make choices concerning delivery, warranty, or financing terms.
At the end of her sales presentation, the salesperson asks, "Do you want to make monthly payments of $75 with a 10 percent down payment or will you be writing a check for the full amount today?" She has just executed a(n) __________.
assumptive close
value added pricing
attaching value-added features and services to differentiate a company's offers while charging higher prices to battle competition lower pricing. - ex: movie theaters adding amenities and charging more
Behavioral measures used to evaluate salespeople include assessments of a salesperson's __________, attention to customers, product knowledge, selling and communication skills, appearance, and professional demeanor.
attitude
Hotels or motels without dining facilities are good locations for
automatic vending machines.
As shown in Figure 16-2 above, the GREATEST dollar amount of retail sales in the United States is generated by __________.
automotive dealers
Tiffany & Co., the exclusive jewelry retailer, uses ________ when it manufactures about half of the fine jewelry items for sale through its more than 250 specialty stores and boutiques worldwide.
backward integration
About 60 percent of U.S. companies now include customer satisfaction as a __________ measure of salesperson performance.
behavioral
A third type of sales objective that is __________, which is typically specific for each salesperson and includes his or her product knowledge, customer service, and selling and communication skills.
behaviorally-related
Logan turned around and left the boutique after she saw the price of a simple lightweight cotton blouse was $80. Though it was the first item she looked at, she doubted she could afford anything in the store. A product used in this way is known as a(n)__________ item.
benchmark
nontariff trade barriers
biases against its bids, restrictive product standards, or excessive host-country regulations or enforcement.
The closing stage in the selling process involves obtaining a purchase commitment from the prospect. This stage is the most important and the most difficult because the salesperson must determine when the prospect is ready to buy. Telltale signals indicating a readiness to buy include
body language, statements, and questions
Which of the following is not one of the basic product decisions?
brand awareness
Which of the following product decisions has product differentiation as its purpose in part or in whole?
branding
Your local Target retailer carries a variety of different items. You can find everything ranging from socks and DVDs to baby items and groceries. This is an example of the __________ carried by Target.
breadth of product line
Retail outlets vary by their merchandise lines, the key distinction being the __________ and __________ of the items offered to customers.
breadth; depth
Shrinkage refers to
breakage, theft, and fraud by customers and employees.
corporate marketing ethics policies
broad guidelines that everyone in the organization must follow. These policies should cover distributor relations, advertising standards, customer service, pricing, product development, and general ethical standards.
In its commercials, the mattress company Sealy focuses on the comfort and quality of its brand of mattress. This advertisement is best described as being designed to
build selective demand
4. Major promotion tools- Public relations
building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, new product announcements and events.
In the new-product development process, the __________ stage assesses the total "fit" of the proposed new product with the company's mission and objectives—from whether the product or service can be economically produced to the marketing strategy needed to have it succeed in the marketplace.
business analysis
Consultative selling style is very prominent in
business-to-business marketing
Price increases
can greatly improve profits and may be initiated due to: -cost inflation -overdemand
Facsimile, e-mail, and voice mail are common __________ technologies salespeople use today.
communication
A benefit of performing a SWOT analysis and an environmental scan during the new-product strategy development process is that they
can help identify the strategic role the new product might serve in the firm's portfolio
A memorized, standardized message conveyed to every prospect is referred to as a __________.
canned sales presentation
Which type of sales presentation would be best suited for an inexperienced, less knowledgeable salesperson?
canned sales presentation
integrated marketing communications
carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
A manufacturer's branch office
carries a producer's inventory and performs the functions of a full-service wholesaler.
General merchandise wholesalers
carry a broad assortment of merchandise and perform all channel functions.
The four major types of limited-service merchant wholesalers are drop shippers, rack jobbers, truck jobbers, and __________.
cash and carry wholesalers
Arianna is responsible for the cleaning, pet, and paper products in the grocery store where she works. She considers herself an expert; she knows all about the various manufacturers, the types of products they sell, and even how consumers use these items. She is responsible for what to order, how much to order, and how to price these products in the store. Arianna is engaged in __________ for the store.
category management
Target gives a portion of its profits to local organizations. This is an example of
cause-related marketing
planned obsolescence
causing their products to become obsolete before they actually should need replacement
Consumers often view ________ shopping as less convenient because of lack of parking, higher crime rates, and exposure to the weather.
central business district
Repositioning
changes the place a product occupies in a consumer's mind relative to competitive products.
Aaron is in charge of advertising for his company and he has designed a magazine ad to promote one of his company's new products. When he shares the ad with his manager, the manager tells him that the ad has too much visual information. The manager is concerned with the _____ of the receiver.
channel capacity
With a __________, a salesperson is paid a specified salary plus a commission on sales or profits generated.
combination compensation plan
Product mix pricing strategies: product bundle pricing
combining several products and offering the bundle at a reduced price (free breakfast with room)
Sports Port, a motorcycle and fishing boat retailer located in a small northern Minnesota town, was the world's largest dealer for Crestliner fishing boats. In order to meet the demand of his many customers, the owner of Sports Port works with a wide variety of channel members, ranging from the manufacturer of the boats to trucking firms, other retailers, and even detailers (firms that clean, polish, and wax boats). Such a diverse channel of distribution often resulted in channel conflict. However, due to his strong consumer following, the owner of Sports Port had the power to resolve disputes between channel members. The owner of Sports Port serves as the __________ in the channel of distribution.
channel captain
growth stage
characterized by rapid increases in sales.
Every day low pricing (EDLP)*
charging a constant, everyday low price with few or no temporary price discounts. *walmart
If the salesperson's objective is to "obtain a purchase from the prospect and create a customer," what is the name of this stage of the personnel selling process?
close
At which stage of the personal selling process would a salesperson obtain a purchase commitment from the prospect?
closing
Russ Berry Company sells stuffed animals and holiday gifts. When its salesperson asks a retailer, "Do you want to order the two dozen assorted bears or two dozen white-only bears?", he has executed which stage of the selling process?
closing
When a salesperson in the Apple store asks, "Will that be charge or cash?", he has executed which stage of the personal selling process?
closing
A method of selling in which a salesperson makes a telephone call or a visit to a prospective customer without a referral is called __________.
cold calling
Another name for cold calling is
cold canvassing
Russ Berry Company is a company that makes gifts and collectibles. When its southeastern sales representative is driving through a community on her way to make a sales call, she looks for small independent florists and gift shops. When she finds a retailer whom she knows is not carrying Russ products, she stops and makes a sales call. The company's sales rep uses __________ to find prospects.
cold canvassing
Tylenol products have extensive instructions for users to prevent accidental overdose and associated liver function complications. This is an example of which type of benefit that packaging can provide?
communication benefits
ClearView Windows sends out postcards containing an advertisement and a coupon to potential residential customers. This is part of the _____ component of the communication process.
communication channel
In order to increase sales of its fishing poles, Corinthian Fishing Supplies launched a social media campaign. After the campaign ended, Corinthian learned through marketing research that most of its target market is not active on social media and instead visit fishing websites. The promotion program suffered from an error in the selection of
communication channel
The Barrister's Deli decides to run advertisements for its lunch specials on a local FM radio station. Marketing research later reveals that the restaurant's target market listens primarily to satellite radio stations. This promotion program suffered from an error in the selection of ____________.
communication channel
A minor league baseball team communicates to its target market by advertising on local television and radio stations, in local newspapers, on its own website, through postings on social media, and on banner ads. These vehicles through which the baseball team transmits its coded messages to potential customers are called
communication channels
The Internet, mobile apps, and billboards are all considered
communication channels
When traditional media are used in advertising communications,
communications generally end with the receiver.
After reading the daily newspaper, the restaurant owner of Zefferelli's Tower of Pizza said, "I see that the owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll have to match his efforts by running our own ad the day after tomorrow." Based on this statement, what promotional budgeting technique is the Zefferelli's restaurant owner most likely using?
competitive parity budgeting
Intel Core processors are purchased by Toshiba for its laptops, and are thus considered what type of business product?
components
Cookies
computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer's website.
Pretests
conducted before the advertisements are placed in any medium
N.W. Ayer
conducted the first organized marketing research project in 1879
There are a variety of types of conflict that can occur among channel members. If a hardware store down the street from our ice cream shop starts selling the same brand of ice cream as we do, there is likely to be conflict. This is a good example of:
conflict caused by the hardware store adopting "scrambled merchandising" marketing.
Four key challenges that package and label designers face include: (1) __________; (2) environmental concerns; (3) health, safety, and security issues; and (4) cost reduction.
connecting with customers
Integrated marketing communications is the concept of designing marketing communications programs that coordinate all promotional activities - advertising, personal selling, sales promotion, public relations, and direct marketing - to provide __________.
consistent message accross all audiences
Off-peak Pricing
consists of charging different prices during different seasons of the year and different times of the day or days of the week to reflect variations in demand for the service.
Conscious Mind
consists of everything inside of our awareness. It is the aspect of mental processing that we can think and talk about in a rational way.
Unconscious Mind
consists of feelings, thoughts, urges, and memories outside of our conscious awareness. It continues to influence our behavior and experience, even though we are unaware of these underlying influences.
Marketing channel
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
A formula selling presentation refers to a format that
consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect.
Sales management
consists of planing the selling program and implementing and evaluating the personal selling effort of the firm
Personal selling process
consists of sales activities occurring before, during, and after the sale itself consisting of six stages: (1) prospecting (2) preapproach (3) approach (4) presentation (5) close (6) follow up
Sales quota
consists of specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period
Which of the following actions or objectives would be appropriate for your product in the maturity stage of the product life cycle?
consolidate value chain to maximize outlets
A straight commission compensation plan is well-suited to sales positions where
consoling activities are minimal
A need-satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution, is referred to as
consultative selling
In 2010, Gartner Research and 1To1 Media recognized Microsoft Dynamics Customer Relationship Management (CRM) and its xRM framework for delivering increased productivity and cost savings for customers worldwide. Microsoft experts work individually with customers on problem recognition and resolution and adapt their enterprise software to meet the unique needs of the customer. The Microsoft expert is engaged in
consultative selling
With __________, problem solutions are not simply a matter of choosing from an array of existing products or services. Rather, novel solutions often arise, thereby creating unique value for the customer.
consultative selling
There are three key reasons for putting the customer into customer solutions in selling: (1) considerable time and effort is necessary to fully understand a specific customer's requirements; (2) effective customer solutions are based on relationships among sellers and buyers; and (3)
consultative selling is central to providing novel solutions for customers, thereby creating value for them
two major movements to promote sustainable marketing
consumerism and environmentalism
Sales Quota
contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
perceived obsolescence
continually changing consumer concepts of acceptable styles to encourage more and earlier buying
When it was introduced, Jergens Ultra Healing Extra Dry Skin Moisturizer was an example of a
continuous innovation
The Coalition of Independent Music Stores, a group of sixty prominent independent record stores across the United States, is a way for these stores to strengthen themselves with tactics such as cooperative advertising. This form of ownership is known as a(n)
contractual system.
Franchising is a variation of
contractual vertical marketing systems.
Whereas traditional media build credibility through experts being influencers in a particular field, with social media a sender often simply begins to participate in the __________, hoping that the quality of the message will establish credibility with the receivers.
conversation
Which of the following is an advantage of advertising?
cost per contact
Types of Costs: variable costs
costs that vary directly with the level of production (raw material, packaging)
A department store recently replaced its fabric-covered chairs with oversized leather couches. This was most likely done to
create a more masculine ambiance for male shoppers.
event marketing (event sponsorship)
creating a brand-marketing event or serving as a sole or participating sponsor or events created by others
The four steps in the sequential process of building the brand equity pyramid include: (1) developing positive brand awareness; (2) establishing a brand's meaning in the minds of consumers; (3) eliciting the proper consumer responses to a brand's identity and meaning; and (4) __________.
creating a consumer-brand connection
omni-channel retailing
creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
If Lay's introduces a new line extension of its famous potato chips, it is likely going to engage in promotions that focus on _____ in order to have customers start the product adoption process.
creating awareness
several "evils" that the American marketing system has created
creating too much materialism, too few social goods, and a glut of cultural pollution
When different types of buyers have different needs, a __________ sales organization structure used.
customer
Which salesforce organizational structure is best when there are many different consumers with many different or specialized needs?
customer
According to experts studying services, the ________ should be intentional, planned, and consistent so that every performance is similar, differentiated from other services, relevant, and valuable to the target market.
customer experience
A sales organization practice whereby a different salesforce calls on each separate type of buyer or market channel is referred to as a __________.
customer sales organization
A firm needs to drive down logistics costs as long as it can deliver expected __________.
customer service
Retailers that advocate an everyday fair pricing strategy may not offer the lowest prices but try to create value for customers, what decision factor becomes important in this situation?
customer service
The ability of a logistics system to satisfy users in terms of time, dependability, communications, and convenience is referred to as
customer service
Within the context of a supply chain, __________ is the ability of a logistics system to satisfy users in terms of time, dependability, communication, and convenience.
customer service
You are responsible for the product decisions in your company. Your market analyst have determined that the market will most respond to greater time and place utility (value). Which of the following product decisions would you focus on in order to impact these aspects of value?
customer service
One of the biggest problems an online retailer faces is
customers' tendencies to get to the checkout and leave the website without concluding the purchase.
Emphasizing consistently low prices and eliminating most markdowns is referred to as __________.
everyday low pricing
A commercial for a piece of exercise equipment says that customers can become fit like the models in the commercial if they use the equipment but does not disclose that the models were already in shape before using the equipment. This could be considered _____ advertising.
deceptive
Frequently, a product enters the __________ stage of its product life cycle not because of any wrong strategy on the part of companies, but because of environmental changes.
decline
After watching a 30-second commercial from Jared for fine jewelry, Mariah was certain the necklace she saw would look spectacular with her new formal dress. In terms of the communication process, Mariah engaged in the task of __________.
decoding
In marketing, the term __________ is used to describe the number of stores in a geographical area.
density
As consumer demand for new homes increases, appliance manufacturers and building material suppliers may experience an increase in demand for their products, which is an example of
derived demand
The tasks involved in managing personal selling include all of the following EXCEPT:
designing new direct sales promotions to generate new sales.
Primary Demand
desire for the product class rather than for a specific brand, since there are few competitors with the same product.
Brand equity building steps are: (1) __________ and an association with a product class or need in consumers' minds to create an identity; (2) establishing a brand's meaning in the minds of consumers; (3) eliciting the proper consumer responses to a brand's identity and meaning; and (4) creating an intense, active, and loyal consumer-brand connection.
developing positive brand awareness
Google's driverless car is an extreme example of the complexity of which step of the new-product process?
development
Fitness trackers are in the growth stage of the product life cycle. A manufacturer selling one of these devices would most likely use advertising to
differentiate one brand of device from another.
5. Major promotion tools- Direct Marketing
direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Factors such as the need for improved reliability and security in postal systems and new government regulations represent important challenges for __________ in the global market
direct marketing
A customer was unable to go to the store on her own to buy gifts for the holidays. She contacted a Pampered Chef representative who came to her home, showed her not only catalogs but actual products, answered all her questions, and had all the customer's gifts sorted and delivered. This is an example of __________.
direct selling
The marketing managers at Omaha Steaks used airlines' databases to mail a special offer to frequent flyers. Eight weeks after shipping the steaks to the frequent flyers who responded to the offer, the company's salespeople followed up by telephoning customers to ask for new orders. This is an example of which types of nonstore retailing?
direct-mail and telemarketing
Channel conflict that arises when one member bypasses another member and sells or buys products direct is referred to as __________.
disintermediation
In class, we considered the case of Black & Decker, who chose to use the internet to advertise their products but decided NOT to sell their products directly to consumers. Instead, their web site directs consumers to Black & Decker's distributors (on the web and in stores). By taking this approach, Black & Decker has avoided:
disintermediation
Quantitative assessments of sales performance may be based on output-related measures, such as
dollar or unit sales volume, last year/current year sales ratio, and new accounts generated.
redlining
drawing a red line around disadvantaged neighborhoods and avoiding placing stores there.
In a strategy known as ________, GE sells its large appliances directly to home and apartment builders, but uses retail stores, including Lowe's home centers, to sell to consumers.
dual distribution
A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Which of the following is the most likely source of that influence?
economic power
According to the textbook, one of the MOST crucial tasks of sales management is
effective recruitment and selection of salespeople
Inventory management systems that are designed to make the process of reordering and receiving products as simple as possible are referred to as __________.
efficient consumer response systems
Walmart's marketing strategy is to be a reliable, lower-price retailer for a wide variety of mass consumption consumer goods. This strategy favors a(n) __________ designed to deliver products to consumers at the lowest possible cost.
efficient supply chain
Customer convenience is an important consideration when choosing a marketing channel. A commonly held view among website developers is the "__________" where consumers will abandon their efforts to enter or navigate a website if download time exceeds this amount of time.
eight second rule
A need-satisfaction presentation refers to a presentation format that
emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.
As Lynn is working on writing the text that will be incorporated into a new magazine ad for her company's line of handbags, she is engaging in the _____ stage of the communication process.
encoding
In the ____, concepts and ideas are converted into signs or symbols by the source.
encoding process
Cooperative Advertising.
encourage both better quality and greater quantity in the local advertising efforts
You work for a company that has just launched a new line of juice drinks. Customers are aware of the product, but have not decided to purchase your company's brand of juice. You decide to give out free samples in grocery stores in an attempt to
encourage product trial
If children and teenagers are insisting on wearing expensive name-brand apparel, a criticism of promotion can be made that promotion __________.
encourages materialism
Various food products for sale at Costco are offered as small portions for consumers to taste while shopping in the store. These efforts have a primary promotional objective of
encouraging product trial
Sellers view a solution as a customized and integrated combination of products and services for meeting a customer's business needs. Buyers think of a solution to a business problem as one that meets their requirements, is designed to uniquely solve their problem, can be implemented, and
ensures follow up
North American Free Trade Agreement (NAFTA)
established a free trade zone among the United States, Mexico, and Canada
The tasks involved in managing personal selling include the following: (1) setting objectives; (2) organizing the salesforce; (3) recruiting, selecting, training, and compensating salespeople; and (4)
evaluating the performance of individual salespeople.
When Birds Eye introduced its Steamfresh line of microwaveable frozen vegetables, it likely gave incentives to grocery stores to purchase the product. This effort was primarily designed to
facilitate reseller support
When Kroger mails out a circular that advertises its upcoming sales, the cost of the circular is partially paid for by manufacturers that are included in the advertisements. The manufacturers are helping pay for the advertising expenses as a way to
facilitate reseller support
Encoding is the process by which a receiver takes the coded message received from the source and converts it into ideas and concepts.
false
If a pull policy is used in promoting a product, the producer promotes the product only to the next marketing institution down the channel.
false
Viral marketing is an attempt to incite publicity and public excitement surrounding a product through a creative event.
false
While the specific communication vehicles employed in promotion have not changed, the fundamental role of promotion is changing.
false
Drive
fear, pride, greed, jealousy, hunger, thirst, comfort
During a television commercial, the announcer reads a toll-free telephone number that viewers can call to order the product. The announcer has included the phone number to facilitate _____ for this communication.
feedback
Some well-known message problems have occurred when U.S. companies have taken their messages to cultures with different ________, resulting in misinterpretations.
fields of experience
The Upjohn Company first targeted men for its Rogaine topical solution, a drug to restore hair growth, but later marketed this product to women. In this example, the Upjohn Company is using which of the following market modification strategies?
finding new users
upstream
firms that supply the raw materials, components, parts and other elements necessary to create a product or service *suppliers raw material, expertise to create products
If the salesperson's objective is to "ensure that the customer is satisfied with the product or service," what is the name of this stage of the personnel selling process?
follow up
In the personal selling process, the stage that includes making certain the customer's purchase has been properly delivered and installed and difficulties experienced with the use of the item are addressed is referred to as the __________ stage.
follow up
The final stage in the personal selling process is referred to as __________.
follow up
At the Rio Olympics in 2016, members of the U.S. Women's National Team were among the first to use Nike's new lighter soccer cleats that allow for more control of the ball. The cleats also help wick away mud and grass. Shortly after the games, retailers were able to sell the same cleats, allowing them to offer which utility?
form
Public Relations
form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stock-holders, suppliers, employees, and other public's about a company
There are three key methods of classifying retail operations. These include:
form of ownership, level of service, and merchandise line.
Three major presentation formats exist: (1) stimulus-response format; (2) __________; and (3) need-satisfaction format.
formula selling format
A selling format that consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect is referred to as a __________.
formula selling presentation
The four stages of the retail life cycle are
franchise system
What type of contractual system describes a situation where assistance in selecting the location, setting up the store or facility, advertising, and training personnel is provided by the parent company?
franchise system
Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off are MOST LIKELY doing so to __________.
free up valuable selling space and cash
Consumer products are classified based on the attributes used in making the purchase decision, the effort spent by the consumer, and the
frequency of purchase
Most specialty stores and department stores, which provide many services to their customers, are considered to be __________.
full-service retailers
the Wheeler-Lea Act
gave the Federal Trade Commission (FTC) power to regulate "unfair or deceptive acts or practices."
A __________ is the simplest salesforce structure, where the United States, or indeed the globe, is first divided into regions and then each region is divided into districts or territories.
geographic sales organization
The office memo read, "Sales representatives from Kansas, Nebraska, Iowa, and Missouri will report directly to the regional manager." From this information, it would appear the company that issued the memo uses a ___________ sales organization for its salesforce.
geographical
Which is the simplest form of salesforce organizational structure?
geographical
If a company chooses to employ its own salesforce, there are three basic organizational salesforce structures from which to choose, which are
geography, customer, and product/service
Apple's iPad is considered a ________ because it can be touched and its features can be seen and heard.
good
Regional shopping centers refer to a
group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.
During which stage of the product life cycle does a company need to focus on the differentiation of its brand from competitors, leading to an improved version or new features being added to the original design?
growth
Which of the following is among the six criteria most often mentioned as important in selecting a good brand name?
have no legal or regulatory restrictions
Which of the following is not one of the disadvantages of using advertising as a promotion method?
high cost per person reached
When using an account management policy grid, an account would receive a high level of sales calls if the account opportunity level assessment is
high, and the sales organization has strong competitive position.
A disadvantage of a customer sales organization is
higher administrative costs and some duplication of selling effort
Goodyear Tire dealers became irate when Goodyear Tire Company decided to sell its brands through Sears, Walmart, and Sam's Club. Many switched to competing tire makers. This is an example of __________.
horizontal conflict
A car dealership airs a television ad in which it tells customers to visit their website to sign up for special offers. This ad has the primary objective of
identifying prospects
A contractor who specializes in upgrading kitchens has a table set up at the county fair where he offers people a free estimate in exchange for their contact information. This promotional effort is directed at
identifying prospects
Bowflex uses infomercials to demonstrate its fitness products and encourage customers to call and receive a free video with more information about its products. This promotional effort is directed at ____________.
identifying prospects
When a manager at Jackie's Bar & Grill sent some of his wait staff home early on a slow Tuesday night, he recognized a need to manage his
idle production capacity
Promotions can lead to increased prices
if they do not stimulate demand
There are six commonly used techniques to deal with objections: acknowledge and convert the objection; postpone; agree and neutralize; accept the objection; denial; and __________.
ignore the objection
A straight commission compensation plan is one
in which a salesperson's earnings are directly tied to the sales or profits he or she generates.
Marilyn called the Butterball toll-free hotline to learn how to prepare her Thanksgiving turkey and dressing. This telephone number is an example of __________.
inbound telemarketing
the use of toll-free telephone numbers that customers call to obtain information about products and make purchases is referred to as ________.
inbound telemarketing
Retailing Mix
includes activities related to managing the store and the merchandise in the store. the retailing mix is similar to the marketing mix.
Retailing
includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
deceptive packaging
includes exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms
Markdowns can be used to
increase demand for complementary products.
Because soup consumption rises in the winter and declines during the summer, Campbell Soup Co. now advertises more heavily in warm months to encourage consumers to think of soup as more than a cold-weather food. It is primarily using which of the following market modification strategies?
increasing the product's use
social media
independent and commercial online social networks where people congregate to socialize and share messages, opinions, pictures, videos, and other content
Your neighborhood dry cleaner or florist is likely to be categorized as an independent retailer. This means it is owned by a(n) __________.
individual
Effective management of integrated marketing communications is based upon ___________.
information about customers
The sales manager instructed the salesperson to "Make five hundred customer contacts between January 1st and July 1st." The sales manager voiced a(n) __________ sales objective.
input-related
Encoding
ins the process of having the sender transform an idea into a set of symbols.
Keith liked how the dry cleaner down the street washed and pressed his clothes, but he found the repeated phone calls from staff about his finished laundry annoying. He began to think of the whole place as annoying, which is a function of the __________ aspect of services.
inseparability
Services are
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value
Chris sees a television commercial for Arby's promoting its roast beef sandwiches at 5 for $5.95. Later that day he goes to the nearest Arby's for a roast beef feast, but is told that the special offer is not available at that location. Arby's seems to lack ___________.
integrated marketing communications
In a marketing context, the acronym IMC refers to __________.
integrated marketing communications
In an effort to practice _____, Gammons International is hiring an external marketing company to handle its marketing efforts. These efforts will include advertising, public relations, and sales promotions.
integrated marketing communications
The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines
integrated marketing communications
The three degrees of distribution density are
intensive, exclusive, and selective.
Choiceboard
interactive, internet-enabled system that allows individual customers to design their own products and services.
indirect channel
intermediaries are inserted between the producer and consumers and perform channel functions.
Retailer
intermediary who sells to consumers
Wholesalers
intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets
Perhaps the greatest impact on salesforce communication is the application of __________ technology.
internet
Competition for the same or similar type of product or service between very dissimilar types of retail outlets that results from a scrambled merchandising policy is referred to as __________.
intertype competition
Convection ovens for home use required consumers to learn a new way of cooking and alter familiar recipes used with conventional ovens. As a result, these ovens spent years in the ________ stage of the product life cycle.
introduction
Skimming or penetration pricing are appropriate pricing strategies during the __________ stage of a product's life cycle.
introduction
The use of advertising to create awareness for a product is most likely to occur in which stage of the product life cycle?
introduction
Which of the following is considered a part of total logistics cost, like transportation and order processing?
inventory
Adaptive selling refers to a presentation format that
involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information.
Product Modification
involves altering one or more of a product's characteristics, such as its quality, performance, or appearance, to increase the product's value to customers and increase sales.
6. Price adjustment strategies: Geographical Pricing
involves deciding how to price products for customers located in different parts of the country or world.
Discontinuous Innovation
involves making the consumer learn entirely new consumption patterns to use the product.
pollution prevention
involves not just cleaning up waste but also eliminating or minimizing waste before it is created
Sales management
involves planning the selling program and implementing and evaluating the personal selling effort of the firm.
Personal Selling
involves the two-way flow of communication between a buyer and seller, often in face-to-face encounter, designed to influence a person's or group's purchase decision.
design for environment and cradle-to-cradle practices
involves thinking ahead to design products that are easier to recover, reuse, or recycle
Interactive Marketing
involves two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind of amount of information received from the seller.
Work load method
is a formula based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size
Product Line
is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.
Consultative selling
is a need satisfaction presentation format that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution
Adaptive selling
is a need satisfaction presentation format that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and knowing when to ask for more information
Stimulus response presentation
is a presentation format that assumes that given the appropriate stimulus by a salesperson the prospect will buy
Formula selling presentation
is a presentation format that consists of information that must be provided in an accurate, thorough, and step by step manner to inform the prospect
Need satisfaction presentation
is a presentation format that emphasizes probing and listening by a salesperson to identify needs and interests of prospective buyers
Product Item
is a specific product that has a unique brand, size, or price.
Sales plan
is a statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed
Advertising
is any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.
An advertisement is more likely to be unintentionally deceptive if it
is directed at children
Emotional intelligence
is the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis
Personalization
is the consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.
Relationship selling
is the practice of building ties to customers based on a salesperson's attention and commitment to cutomer needs over time
Team selling
is the practice of using an entire team of professionals in selling to and servicing major customers
Key account management
is the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships
Partnership selling
is the practice whereby buyers and sellers combine their expertise and resources to create customized solutions, commit to joint planning and share customer, competitive, and company information for their mutual benefit and ultimately the consumer, also called enterprise selling
Personal selling
is the two way flow of communication between seller and buyer often in a face to face encounter designed to influence a person's or group's purchase desicion
Salesforce automation
is the use of computer information, communication, and internet technologies to make the sales function more effective and efficient
Not every suburban store is located in a shopping mall. Many neighborhoods have clusters of stores, referred to as a strip mall, to serve people who are within a 5- to 10-minute drive. Unlike the larger shopping centers, the composition of these stores usually __________.
is unplanned
A disadvantage of a straight commission compensation plan is
it can discourage salespeople from providing customer service
An advantage of the straight salary compensation plan is
it is easy to administer
Information from a _____ is used to write a job description.
job analysis
A __________ explains: (1) to whom a salesperson reports; (2) how a salesperson interacts with other company personnel; (3) the customers to be called on; (4) the specific activities to be carried out; (5) the physical and mental demands of the job; and (6) the types of products and services to be sold.
job description
A __________ is a written document that describes job relationships and requirements that characterize each sales position.
job description
Applied to recruiting and selecting salespeople, a __________ explains to whom a salesperson reports and how a salesperson interacts with other company personnel.
job description
As they walk to the car, Erin tells her sales representative, Joachin, that they may need to modify the price structure they just presented to the prospect. Erin bases her statement on the way the prospect folded his arms when Joachin quoted him the prices on the new system. Joachin says he didn't notice. Erin recommends a book on ____ communication to Joachin.
kinesic
Sam is meeting with a purchasing agent about an order for his company's forklifts. As he is describing the features of the newest version, the purchasing agent nods her head to signal that she understands the features. Sam does not notice the ____ communication the purchasing agent is sending and goes into more detail about the new features.
kinesic
The name of a person who may be a possible customer is referred to as a __________.
lead
Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking them to request additional information on the telephone or through a website. In terms of direct marketing, this is known as
lead generation
What are three types of prospects?
leads, prospects, and qualified prospects
The PRIMARY way in which relationship selling creates customer value is by
learning the customer's needs to maintain and long-term relationship of trust and respect.
exchange controls
limit the amount of foreign exchange and the exchange rate against other currencies.
quotas
limits on the amount of foreign imports that they will accept in certain product categories. The purpose of a quota is to conserve on foreign exchange and protect local industry and employment
The value added dimension of the retail positioning matrix includes elements such as product reliability, prestige, and __________.
location
The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements is referred to as __________.
logistics management
When using an account management policy grid, an account would replace personal calls with telemarketing or direct mail if the account opportunity level assessment is
low, and the sales organization has a low competitive position.
Adding a wholesaler to the marketing channel for consumer products is most common for
low-cost, low-unit value items.
The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships is referred to as __________.
major account management
The use of teams of sales, service, and technical personnel who work with purchasing, manufacturing, engineering, logistics, and financial executives in customer organizations is referred to as __________.
major account management
A marketing channel
makes possible the flow of products and services from a producer, through intermediaries, to a buyer.
Amazon uses supply chain and logistics management to
manage the flow of customer orders from the distribution centers to individual's homes.
supply chain management
managing upstream (inbound) and downstream (outbound) value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
When Paulette first saw the dress in the store window, she knew two things. She had to own the dress, and she could not afford it at its current price. Disappointed, she left. Two weeks later, she passed by the store again and saw that the price of the dress had been reduced to one that she could afford. Specifically, the store had reduced the price by 30 percent to "move" it. Paulette was able to purchase the dress because of a(n)
markdown.
downstream
marketing channel partners (intermediaries) that link the firm to the customer *Wholesalers, retailers
Customer and Business Marketing Channels
marketing intermediaries
mobile marketing
marketing messages, promotions, and other marketing content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices
Online marketing
marketing via the internet using company Web sites, online ads and promotion, emails, online video, and blogs
Advertising, sales promotion, and public relations are often said to use __________ because they are used with groups of prospective buyers.
mass selling
According to Figure 16-10 above, "C" represents which stage of the retail life cycle?
maturity
At which stage in the product life cycle would a company's promotional objective most likely be to remind buyers of the product's existence?
maturity
Presweetened breakfast cereals would most likely be in the __________ stage of the product life cycle.
maturity
Personal selling serves three major roles in a firm's overall marketing effort. Salespeople: (1) are the critical link between a firm and its customers; (2) are the company in consumers' eyes; and (3)
may play a dominant role in a firm's marketing program
An advantage of online advertising such as offered through Google is that it is __________, which allows it to immediately assess its __________.
measurable; effectiveness
In classifying social media, the degree of acoustic, visual, and personal contact between two communication partners is referred to as __________, whereas the degree to which a person's thoughts, feelings, likes, and dislikes are made public is referred to as __________.
media richness; self-disclosure
During the creative process, Taco Bell considered a number of different slogans, finally setting on Live Mas! The Live Mas! campaign reinforces Taco Bell's position as a dynamic brand whose customers enjoy experiencing the world and trying things first. Live Mas! is Taco Bell's _______ in the communication process.
message
An advantage of a geographical sales organization is that it
minimizes travel time, expenses, and duplication of selling effort
Product Stewardship
minimizing not only pollution from production and product design but also all environmental impacts throughout the full product life cycle, while at the same time reducing costs
Black & Decker uses a __________ strategy to reach the do-it-yourself market with the Black & Decker brand name and the professional construction market with the DeWalt brand name.
multibranding
Publicity
nonpersonal, indirectly paid presentation of an organization, product, or service. it can take the form of a news store, editorial, or product announcement.
Most of Lands' End's revenues come through catalog and Internet sales, but it also operates several retail stores and factory outlets. This makes Lands' End an example of a(n) __________ marketer.
multichannel
Product line extensions are a form of which strategy?
multiproduct branding
Discount Fishing Tackle is a shop that carries a large selection of fishing rods and reels, bait, tackle boxes, waders, nets, and a few other fishing implements. Discount Fishing Tackle's breadth of product line would be described as __________ and its depth of product line would be described as __________.
narrow; deep
A selling format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers is referred to as a __________.
need-satisfaction presentation
The __________ is a selling format that emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers.
need-satisfaction presentation
The car salesman was overheard having the following conversation with a prospective customer: "What type of driving do you do?" "How many people will you usually have riding in your car?" "Maybe you should look at vans instead of sedans." From this information, the car salesman was using a
need-satisfaction presentation
value delivery network
network composed of the company, suppliers, distributors, and ultimately customers who partner to help the entire system deliver better customer value
The objective of a(n) __________ is to inform a newspaper, radio station, or other medium of an idea for a story.
news release
Carlos is listening to the radio while driving with his kids in the back seat. During the commercial break, one of the children repeatedly asks Carlos if they have arrived at their destination. The child's questions would be considered _____ in the communication process.
noise
While watching a television commercial, Chloe receives a text message from her friend and responds immediately. This is an example of _____ in the communication process.
noise
In lecture, we noted that it is relatively easy to become a retailer. Which of the following is NOT one of the reasons that was given?
o large investment in production equipment is required b. merchandise can often be purchased on credit, c. store space can be leased with no down payment d. simple website can be set up at a modest costs
Excuses for not making a purchase commitment or decision are referred to as __________.
objections
According to the lecture, if our customer wants high quality products, innovation, and a broad product line, the our SCM team should focus on:
obtaining a high quality supplier, the shortest time to market, and short manufacturing changeover times.
Showrooming
occurs when a shopper visits a retail store to inspect merchandise but then purchases the merchandise online.
disintermediation
occurs when product and service producers cut out intermediaries or displace traditional resellers with radical new types of intermediaries or go direct to customers
Decline Stage
occurs when sales drop.
Burlington Coat Factory and Ross stores offer customers the sport of searching the racks for great deals on brand-name products. Both retailers use a(n) __________ retailing strategy.
off-price
Consider the T.J. Maxx HomeGoods photo above. This retailer uses a(n) __________ pricing practice.
off-price retail
The selling of brand name merchandise at lower than regular prices is referred to as __________.
off-price retailing
good value pricing
offering just the right combination of quality and good service at a fair price.
QVC is a television home shopping network. It generates sales of more than $8 billion from its 70 million customers by
offering more than 1,150 products each week.
Scrambled Merchandising
offering several unrelated product lines in a single store.
private branding
often called private labeling or reseller branding, when it manufactures products but sells them under the brand name of a wholesaler or retailer.
Branding
organization uses a name, phrase, design, symbols, or combination or these to identify its products and distinguish them from those of competitors.
Charles C Parlin
organized the nation's first commercial research department at Curtis Publishing
cultural pollution
our senses are being constantly assaulted by marketing and advertising.
In lecture we learned that it may be easier to talk about implementing SCM than it is to align it with our Marketing Strategy. One "real life" problem we find is that:
our supply chain team may focus on short-term operational results, instead of on satisfying customers wants.
The practice of using the telephone rather than personal visits to contact customers is referred to as __________.
outbound telemarketing
The sales manager told the salesperson, "Your goal is to increase sales volume for the second quarter 5 percent over the sales volume of the first quarter." The sales manager voiced a(n) __________ sales objective.
output-related
Selling objectives can be __________ and focus on dollar or unit sales volume, number of new customers added, and profit. Alternatively, they can be __________ and emphasize the number of sales calls and selling expenses.
output-related; input-related
Salespeople called ______ visit customers and replenish inventory stocks of resellers, such as retailers or wholesalers.
outside order takers
John Whitaker works for American Greetings. Included in his job description are the following responsibilities: (1) stock and arrange point-of-purchase displays of present customers—60 percent of his work week and (2) receive orders from customers and complete the transactions—40 percent of his work week. Whitaker is primarily engaged in which type of selling?
outside order taking
Direct selling is likely to grow in markets
outside the United States.
Cessna is considered the volume leader in the executive-jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna
owns several of the entities that would make up the traditional marketing channel.
1. Major promotion tools- Advertising
paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
Forms of allowances: Promotional allowances
payments or price reductions to reward dealers for participating in advertising and sales support programs.
The seven Ps of services refer to an expanded marketing mix for services that includes the four Ps (product, price, place, and promotion) as well as
people, physical environment, and process.
sustainable mission
people, planet, profits
reach
percentage of people in the target market who are exposed to an ad campaign during a given period of time
3. Major promotion tools- personal selling
personal presentation by the firm's sales force for the purpose of making sales and building customer relationships
Proxemic communication is an element of which form of promotion method?
personal selling
The promotional mix consists of communication tools that include advertising, public relations, sales promotion, direct marketing, and
personal selling
The two-way flow of communication between a buyer and sweller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision is referred to as
personal selling
The use of a push policy may require heavy expenditures for
personal selling
Which element of the promotional mix is characterized by a customized interaction that is extremely expensive but very persuasive and likely to yield immediate feedback?
personal selling
Tiffany is planning a promotion plan for Owens Corning, which manufactures fiberglass insulation. Her company is trying to promote the insulation to home builders to use in the building of new residential homes. She is most likely to recommend _____ because it allows marketers to adjust their message to improve communication. One downside is that it costs _____ than advertising to reach one customer.
personal selling; more
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
Word-of-mouth communications are most effective for _______________ products.
personal services
What is the promotional objective of the decline stage of the product life cycle?
phase out
Rob is working on the promotional plan for a new bicycle helmet that has added technology to sense when a bicycler has fallen and has a head injury. The technology then releases an audible signal that will help others know that there is an injury that needs treatment. This is considered to be a new product that is in the introduction stage of the product life cycle. Which type of promotion should Rob focus on?
pioneer
Tony is on the marketing team for a new line of self-heating soups designed for mountain climbers. The soups come in a convenient pouch that hooks on to a mountain climber's gear and collapses for easy storage when empty. The product is considered a new product in the introductory stage of the product life cycle. What type of promotion should the marketing team focus on?
pioneer
When tablet computers were first introduced to the market, which of the following would have been the logical choice for promotion?
pioneer promotion
When flat-screen televisions were first introduced, manufacturers tried to increase customer awareness of the new product by using _____ to build _____.
pioneer promotion; primary demand
The three primary types of product advertisements are __________.
pioneering, competitive, and reminder
The strategic location of products or product promotions within entertainment media content to reach the product's target market.
placement
account management policies
policies that specify who salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
Commercialization
positions and launches a new product in full-scale production and sales.
During the sales presentation, the prospect interrupted the salesperson's presentation and said, "Wait a minute. This looks like it's going to cost too much." The salesperson responded, "I think you'll be delighted with how relatively inexpensive this program is. I'll address the subject of price in just a moment." Which objection-handling technique has the salesperson used?
postpone
One step in evaluation of the promotion program is to
posttest the promotion.
Government officials and consumer groups suggest products that ______ should not be promoted.
potentially have harmful effects
Dynamic pricing
practice of changing prices for products and services in real time in response to supply and demand conditions.
deceptive pricing
practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail list price
deceptive promotion
practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock
If the salesperson's objective is to "gather information and decide how to approach the prospect," what is the name of this stage of the personnel selling process?
pre approach
At which stage in the personal selling process would the salesperson obtain further information about the prospect and decide on the best method of contact?
preapproach
Identifying the buying role of the prospect would be typically done at the __________ stage of the personal selling process.
preapproach
An effective sales plan objective should be
precise, measurable, and time specific
At the __________ stage in the personal selling process, a salesperson begins converting a prospect into a customer by creating a desire for the product or service he or she is selling.
presentation
If the salesperson's objective is to "begin converting a prospect into a customer by creating a desire for the product or service," what is the name of this stage of the personnel selling process?
presentation
The objective at the __________ stage of the personal selling process is to convert a prospect into a customer by creating a desire for the product or service.
presentation
The primary responsibility of order takers is to
preserve ongoing relationships with existing customers and maintain sales
Trends among category killers such as office supplies (Staples) and electronics (Best Buy) include moving to smaller stores and ________ to compete with online retailers.
price matching
Retail Pricing
prices for merchandise, retailers must decide on the markup, markdown, and timing for markdowns.
target costing
pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.
Looking to attract more millennial tourists, Discover Los Angeles, the city's tourism office, portrays its city as a hipster utopia in a new campaign. It released a 2-minute YouTube video that follows a young couple as they shop for vinyl, take pictures of their food, eat tacos from a food truck, and pose for selfies during a whirlwind day in the city. This ad campaign was an attempt to stimulate __________ demand
primary
The National Cattlemen's Beef Association tries to generate _____ by airing advertisements with the slogan "Beef: It's What's for Dinner.
primary demand
Communication
process of conveying a message to others, and it requires six elements; a source a message, a channel of communication, a receiver, and the processes of encoding and decoding.
Retail Life Cycle
process of growth and decline that retail outlets, like products, experience.
Decoding
process of having the receiver take a set of symbols, the message, and transform the symbols into an idea.
Reverse Logistics
process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.
Collaborative Filtering
process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.
Over Taker
processes routine orders for products that were already sold by the company.
The disadvantage of product sales organization is
produces high administration costs and duplication of selling effort because two company salespeople may call on the same customer.
supply chain and the value delivery network
producing and making products available to buyers requires building relationships with upstream and downstream supply chain partners
ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At one time, ABB had a salesforce that sold only generators, one that only sold boilers, another that only sold transformers, and so forth. Each of its salespeople was an expert on the items he or she sold. Its salesforce was organized by __________.
product
introduction stage
product is introduced to its intended target market. during that period, sales grow slowly, and profit is minimal.
Axe Anarchy Bodywash, a men's personal care product, is an example of a
product item
When specific knowledge is required to sell certain types of products or services, then a __________ is used.
product organization
In episodes of American Idol, the judges drink out of cups featuring the Coca-Cola logo. The promotion strategy being used by Coca-Cola.
product placement
In many television shows and movies, you will see characters using Apple computers and laptops during the show. This promotion strategy is called _________.
product placement
Suppose that Samsung has decided to contract with the producers of The Avengers to have characters in the movie exclusively use Samsung tablets and smartphones. This would best be an example of
product placement
You are the marketing manager for a soft drink manufacturer. You recommend that the company should try to get the actors and actresses in television shows to drink its products. What type of promotion activity are you suggesting with your idea?
product placement
There are two general types of franchises: business-format and __________ franchises.
product-distribution
desirable products
products that give both high immediate satisfaction and high long-run benefits
pleasing products
products that give high immediate satisfaction but may hurt consumers in the long run
salutary products
products that have low immediate appeal buy may benefit the consumers in the long run
deficient products
products that have neither immediate appeal nor long-run benefits
The primary purpose of a competitive advertisement is to
promote a specific brand's features and benefits.
The __________ element of the marketing mix consists of communication tools, including advertising, personal selling, sales promotion, public relations, and direct marketing.
promotion
For her sixteenth birthday, Josie has asked her parents for a new handbag from Coach. She insists that she must have a Coach bag, which has a high price and recognizable brand name. This insistence on the Coach brand supports the criticism of promotion that
promotion encourages materialism
The __________ includes advertising, personal selling, sales promotion, public relations, and direct marketing.
promotion mix
Promotional mix Chapter 17
promotional elements including communication tools, advertising, personal selling , sales promotion, public relations, and direct marketing
The customer who wants or needs the product is referred to as a __________.
prospect
Advertising with a coupon, using a toll-free number, exhibiting at trade shows, using e-mail, and making cold calls are all activities that would take place during the __________ stage of the personal selling process.
prospecting
If the salesperson's objective is to "search for and qualify potential customers," what is the name of this stage of the personnel selling process?
prospecting
In the personal selling process, a telemarketer for a life insurance firm who calls and asks the head of the household, "If you were to die tomorrow, would your family be cared for?" is engaged in __________.
prospecting
Personal selling begins with the __________ stage.
prospecting
The search for and qualification of potential customers during the personal selling process is referred to as __________.
prospecting
White Chemical Company is examining its selling strategy and one of the issues it believes needs attention is the role its sales staff has in undertaking sales support (non-selling) activities; yet it wants to keep the salespeople directed towards increasing sales for the next year. If you did not know which plan the firm presently uses, what advice would you give?
provide a base salary and a commission on sales generated
When choosing a marketing channel and intermediaries, marketing executives typically consider, among other things, which will
provide the best coverage of the target market.
While in a sales meeting, Andre notices that the customer he is speaking to takes a step backward during the conversation. Feeling that the customer is disinterested in his sales pitch, Andre changes his approach to make the conversation more interesting to the customer. Andre is paying attention to ____ communication from the customer.
proxemic
Apple regularly holds events where the company CEO announces the latest products in front of a large group of stakeholders. This type of event is best categorized under which of the following types of promotion?
public relations
Kohler, a manufacturer of bathroom fixtures such as sinks and toilets, has uploaded several videos to YouTube that help demonstrate how to install their fixtures. These videos are best categorized under which of the following types of promotion?
public relations
When a company is trying to communicate with its suppliers, employees, stockholders, the media, potential investors, government officials, and society in general, it is important to use
public relations
Which element of the promotional mix has the inherent weaknesses related to the difficulty in getting media cooperation?
public relations
When Glade introduced its Wax Melts line of air fresheners, if it offered coupons available in the newspaper that consumers would then take to their favorite stores, this would be an example of a _____ policy.
pull
When a pharmaceutical company places an ad in a home and garden magazine for its new arthritis drug, it is using a ________ strategy.
pull
Tombstone Pizza is planning on starting a new online advertising campaign to reach consumers where they will develop banner ads and increase their social media presence. They also plan on increasing their spending on personal selling with its wholesalers. Tombstone is using _____ with the online campaign and _____ with the increase in personal selling.
pull policy; push policy
A __________ is an individual that wants a product, can afford to buy it, and is the decision maker.
qualified prospect
If an individual wants the product, can afford to buy it, and is the decision maker, this person is referred to as a(n) __________.
qualified prospect
media impact
qualitative value of message exposure through a given medium
An urgency close refers to
quickly committing the prospect by making references to the time limits of the purchase.
A limited-service wholesaler who performs all channel functions and sells on consignment to retailers, which means it retains the title to the products displayed and bills retailers only for the merchandise sold, is a _________.
rack jobber
The four major types of limited-service merchant wholesalers are cash and carry wholesalers, drop shippers, truck jobbers, and __________.
rack jobbers
Jack is watching television when an infomercial for a vacuum cleaner begins. As he watches the infomercial, he sees the power of the vacuum being demonstrated. In this case, Jack is the _____ and the company selling the vacuum cleaner is the _____.
receiver; source
A bed and breakfast inn holds crafting getaways where all of the people staying at the property are interested in the same activity. These getaways are typically done during the fall when fewer people typically visit. These getaways are designed to
reduce sales fluctuations
Promotional efforts designed to allow a manufacturer of a seasonal product to operate at peak efficiency year-round seek to
reduce sales fluctuations
The Colorado Tourism Office advertises that people can visit Colorado ski slopes and mountains for hiking, ziplining, and horseback riding during the summertime in an effort to
reduce sales fluctuations
What is the primary motivation when a retailer such as Home Depot offers a discount on lawn mowers in September and October?
reduce sales fluctuations
De-marketing
reducing consumer demand for a good or service to a level that the firm can supply
Process
refers to the actual procedures, mechanisms, and flow of activities by which the service is created and delivered.
A group of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores is referred to as a(n) __________.
regional shopping center
The Mall of America is an example of which type of setting for a store location?
regional shopping center
The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time is referred to as _______.
relationship selling
MooreChem created a marketing dashboard for each of its sales representatives. These dashboards included seven measures—sales revenue, gross margin, selling expense, profit, average order size, new customers, and customer satisfaction. Each metric was gauged to show actual salesperson performance
relative to target goals
What type of product advertisement is the Dove Promises Chocolate ad above?
reminder
Selling agents refer to agents who
represent a single producer and are responsible for the entire marketing function of that producer.
The retailing mix includes store location, merchandise, and which two other elements?
retail communication and retail pricing
The analytical tool that positions retail outlets in terms of the breadth of their product line and value added, such as location, product reliability, or prestige, is referred to as the __________.
retail positioning matrix
__________ includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.
retailing
ValueCut has a Haircut Club that gives customers their eighth haircut for free after they have bought seven at regular price. The primary objective of this type of program is
retaining loyal customers
Hewlett-Packard's recycling service for computers and printers is available today in more than 73 countries, regions, and territories. Hewlett-Packard has recycled over 2 billion pounds of used electronic products and supplies to be refurbished for resale or donation or for recovery of materials. Hewlett-Packard is practicing
reverse logistics
If an auto manufacturer creates an ad showing that the people in the car can feel secure in case of an accident, it is attempting to influence the customer's _____ need.
safety
All of the following are behavioral measures that are used to evaluate salespeople EXCEPT:
sales
Quantitative assessments of sales performance may be based on input-related objectives set forth in the sales plan, such as those involving
sales calls, selling expenses, and account management policies.
SFA is an acronym for _______.
sales force automation
Planning the selling program and implementing and evaluation the personal selling effort of the firm is referred to as ________.
sales management
A sales quota contains goals, such as sales produced, accounts generated, profit achieved, and/or
sales of specific products
A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed is known as a __________.
sales plan
Sales management consists of three interrelated functions: (1) __________; (2) sales plan implementation; and (3) salesforce evaluation.
sales plan formulation
The most basic of the three sales management functions is
sales plan formulation
A short-term inducement of value offered to arouse interest in buying a product or service is referred to as __________.
sales promotion
In the weeks leading up to Thanksgiving, Butterball turkey may allocate more of its promotion budget to _____ in order to account for the coupons it will be issuing to consumers.
sales promotion
The McDonald's Monopoly game is an example of which type of promotion?
sales promotion
To communicate with consumers, a company can use one or more of five promotion alternatives. In Figure 14-2 above, the promotional element labeled E represents __________.
sales promotion
To give consumers an incentive to try its new Doritos Locos Tacos, Taco Bell gave out free samples of the new tacos to its customers. The free Doritos Locos tacos giveaway is an example of ________.
sales promotion
When sales representatives for Owens Corning meet potential customers, they offer stuffed pink panthers to promote their insulation. This example illustrates Owens Corning's use of which of the following elements of the promotion mix?
sales promotion
Which of the following elements of the communication (or promotional) mix has as its purpose within that mix the creation of a sense of urgency?
sales promotion
You are working with a sales management consultant to improve your company's sales performance of its line of juices. You and the consultant agree your promotional activities should include a greater attempt at inducing trial of the products being sold. Based on this information, which of the elements of promotion should you emphasize more?
sales promotion
trade promotions
sales promotion tools used to persuade resellers to carry a brand, give it a shelf space, promote it in advertising, and puts it to customers
Valpak is a company that mails out packets of coupons to consumers. These coupons mostly include discounts for local and regional businesses. Valpak is helping these companies with their
sales promotions
coupons
sales promotions that usually offer a discounted price to the consumer, which encourages trial.
A __________ contains specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period.
sales quota
Consumer-oriented Sales Promotions
sales tools to support a company's advertising and personal selling.
Inside order takers are also referred to as _______.
salesclerks
The use of computer, information, communication, and Internet technology to make the sales function more effective and efficient is referred to as____________.
salesforce automation
The three major tasks involved in the implementation stage of the sales management process are: salesforce recruitment and selection; salesforce training; and __________.
salesforce motivation and compensation
There are three major tasks involved in the implementation stage of the sales management process: salesforce motivation and compensation, salesforce training, and __________.
salesforce recruitment and selection
The advantage of a product sales organization is that
salespeople can develop expertise with technical characteristics, applications, and selling methods associated with a particular product or family of products.
inside sales force
salespeople who conduct business from their offices via telephone, the internet, and social media interactions, or visits from prospective buyers
outside sales force (field)
salespeople who travel to call on customers in the field
An order taker refers to a
salesperson who processes routine orders or reorders for products that were already sold by the company
Customer Service
satisfy users in term of time, dependability, communication, and convenience.
In class, we talked about Haagen-Dazs and the company's initial plans for distribution of its ice cream. The initial plan was to use their own stores and ___________ distribution.
selective
The four most popular types of franchise arrangements are
service-sponsored franchise systems, service-sponsored retail franchise systems, manufacturer-sponsored wholesale franchise systems, and manufacturer-sponsored retail franchise systems.
Inconsistency in services refers to the fact that
services depend upon the people who provide them, and the quality of that performance may vary from day to day or employee to employee
marketing channels
set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business users
Product pricing strategies: 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.
Product mix pricing strategies: by product pricing
setting a price for by-products in order to make the main products price more competitive. - ex: coca-cola sells its waste like orange peels
Product mix pricing strategies: 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
Formulating the sales plan involves three tasks: (1) __________; (2) organizing the salesforce; and (3) developing account management policies.
setting objectives
customer value-based pricing
setting price based on buyers' perceptions of value rather than on the seller's cost *types: =good value pricing> =value-added pricing> (Ex. Steinway piano) - price floor: no profits below this price - price ceiling: no demand above this price
competition based pricing
setting prices based on competitors strategies (external), prices, costs and market offerings.
cost-based pricing
setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk
Which of the following tasks are involved in the sales plan formulation stage of the sales management process?
setting sales objectives, organizing the salesforce, and developing account management policies
Product mix strategies: product line pricing
setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors prices.
An important feature of supply chain management is its application of sophisticated information technology that allows companies to
share and operate systems for order processing, transportation scheduling, and inventory and facility management.
The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store is referred to as
shopper marketing.
2. Major promotion tools- sales promotion
short-term incentives to encourage the purchase of sale of a product or service
sales promotion
short-term incentives to encourage the purchase or sales of a product or service
Sales Promotion
short-term inducement of value offered to arouse interest in buying a product or service.
Twitter, Facebook, Vine, Instagram and Snapchat were all utilized to engage customers during the Doritos Locos Tacos introduction as part of the _________ element of the campaign.
social media
sustainable marketing
socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs
Permission Marketing
solicitation of a consumer's consent (opt in) to receive e-mail and advertising based on personal data supplied by the consumer.
7. International pricing
some things like airplanes are priced the same everywhere, but some products are priced differently to fit the countries' economy.
In the McDonald's advertisements that state, "I'm lovin' it," McDonald's is the communication
source
To accomplish a successful repositioning of the brand, Taco Bell needed to inform its consumers that Taco Bell food should be thought of as an experience rather than as just fuel. In the communication process, Taco Bell would be the ______ and the consumer would be the ________.
source, receiver
Gordon is driving on the highway and sees a billboard for a local auto dealership. On the billboard he sees pictures of three of the dealership's cars and an announcement of a current promotion. In this situation, the auto dealership is a _____, which is one who _____.
source; encodes
Limited- and single-line stores are often referred to as __________.
specialty outlets
Ideally, before a new product is developed, a firm should have a precise protocol, which includes which of the following?
specific customers' needs, wants, and preferences
sales quota
specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period
Social networks are
specific social media like Facebook, Twitter, LinkedIn, and YouTube.
Account management policies
specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out
Account management policies refer to policies that
specify whom salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out.
Account management policies Chapter 20
specifying whom salespeople should contact, what kinds of selling and customer service should be engaged in and how these activities should be carried out
In a _____________ test market, a company chooses test-market cities that are demographically representative of markets targeted for the new product, and sells the product to distributors, wholesalers, and retailers, just as it would do for other products.
standard
A sales plan refers to a
statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.
Sales plan
statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed.
A job description is a written document that describes job relationships and requirements that characterize each sales position. Once established, the job description is then translated into a __________.
statement of job qualifications
The aptitudes, knowledge, skills, and a variety of behavioral characteristics considered necessary to perform a job successfully are contained in a __________.
statement of job qualifications
Attributes such as imagination and problem-solving ability, strong work ethic, honesty, intimate product knowledge, effective communication and listening skills, and attentiveness reflected in responsiveness to buyer needs and customer loyalty and follow-up are found in the
statement of qualifications
In a __________, the salesperson tries one appeal after another, hoping to "hit the right button."
stimulus-repsonse presentation
A salesclerk at L.L. Bean uses a __________ when he asks a customer if they also need a pair of hiking socks with the purchase of her mountain boots.
stimulus-response presentation
A selling format that assumes that given the appropriate prompts by a salesperson, the prospect will buy is referred to as a __________.
stimulus-response presentation
A division of IBM works out of 360 locations in 64 countries, tracking more than 1.5 million assets for both IBM and its clients. The division also deals with about 23,000 suppliers in nearly 100 countries. The individuals who monitor these transactions are engaged in
supply chain management.
Product Advertisements
take three forms; Pioneering (informational) , competitive(persuasive) , and reminder.
Merchant wholesalers are independently owned firms that __________ the merchandise they handle.
take title to
Integrated Marketing Communications
taking consumer expectations into consideration, IMC is a key element in a company's customer experience management strategy.
The three guidelines on marketing and promoting a brand using YouTube include: (1) exploit visual aspects of your message, perhaps sacrificing product messages to tell a more entertaining story; (2) create a branded channel rich in key words to improve the odds of the video showing up in user searches; and (3) __________.
target viewers by using YouTube's insights and analytics research to reveal the number of views, where they originate within YouTube, and what key words are driving user visits
Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle?
tattoos
DuPont assigned chemists, sales and marketing executives, and regulatory specialists to create an herbicide for corn growers that recorded sales of $57 million in its first year. This type of sales approach is referred to as __________.
team selling
Many firms such as Xerox use a cross-functional sales practice known as __________.
team selling
Salesforce automation is the use of __________ to make the sales function more efficient and effective.
technology
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
All of the following are reasons a company would likely emphasize personal selling in its promotion mix except
the company's products are seasonal in nature
Selective distribution refers to
the density of distribution whereby a firm tries to place its products or services in a few retail outlets in a specific area.
Intensive distribution refers to
the density of distribution whereby a firm tries to place its products or services in as many outlets as possible.
The central business district refers to
the oldest retailing setting, located in a community's downtown area.
Price adjustment strategies: Geographical Pricing =Uniform-delivered pricing
the opposite of FOB pricing. Here, the company charges the same price plus freight to all customers, regardless of their location.
Mass selling is
the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers.
Sales activities occurring before, during, and after the sale itself, and which consist of six stages, are referred to as
the personal selling process
Relationship selling refers to
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time
relationship selling
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time
Relationship Selling
the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time.
team selling
the practice of using an entire team of professionals in selling to and servicing major customers
key account management
the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships
Major account management refers to
the practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships.
Product mix strategies: optional product pricing
the pricing of optional or accessory products along with a main product
The marketing metrics related to a retailer's customers include all of the following EXCEPT:
the turnover of inventory.
personal selling
the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision
"bottom of the economic pyramid,"
the vast untapped market consisting of the world's poorest consumers
In Marketing in the News, we heard that alcohol online sales have lagged, in part due to a complicated patchwork of post-Prohibition state laws that govern its sale and distribution. One factor inhibiting sales which we heard about is the:
three-tier distribution system requirement.
Three closing techniques are used when a salesperson believes a buyer is about ready to make a purchase. They are __________ closes.
trial, assumptive, and urgency
types of advertising- pioneering advertising
tries to develop primary demand, that is demand for a product category rather than a specific brand.
types of advertising- product advertising
tries to sell a product
A promotion mix is a blend of four possible ingredients, which are advertising, personal selling, public relations, and sales promotion.
true
One reason that promotion suffers from widespread criticism is that promotional efforts are highly visible and affect our everyday lives.
true
Which of the following is a strategy to get consumers to share a marketer's message in a way that spreads dramatically and quickly?
viral marketing
Vertical conflict refers to conflict that occurs between
two different levels in a marketing channel.
Personal selling requires the _______ flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person's or a group's purchase decision.
two-way
Personal Selling
two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision. (usually face to face communication)
Full-line forcing is a special kind of __________, which involves a supplier requiring that a channel member carry its full line of products in order to sell a specific item in the supplier's line.
tying arrangement
Form of ownership, level of service, and the ____________ are important ways that retail outlets can be classified.
type of merchandise line
If a manufacturer decides to use a pull policy to promote its products, it is likely to focus its efforts on
ultimate consumers
According to lecture, it is possible that our Supply Chain Management objectives may not match well with our Marketing strategies. A good way to cure this problem is to:
understand our customers' needs and what they value.
Products that the consumer does not know about or knows about but does not initially want are referred to as
unsought products
Davidson-Uphoff & Company sells ironware accessories for home and garden to retailers. When its salesperson told the prospect, "For this week only, we will pay the all the shipping costs for new customers," the salesperson was using a(n) __________.
urgency close
GUM Soft Picks were introduced as an alternative to flossing to reach and remove food and plaque between teeth. Because the product requires a difference technique, this company would most likely face a(n) __________ barrier with new users.
usage
Salesforce Automation
use of technologies to make the sales function more effective and efficient.
Supply Chain
used to create and deliver a product or service to consumers or industrial users.
Trade-Oriented Sales Promotions
used to support a company's advertising and personal selling directed to wholesalers,distributors, or retailers.
Product Placement
uses a brand-name product in a movie, TV show, video game, or commercial for another product.
Behavioral Targeting
uses information provided by cookies for directing online advertising.
digital and social media marketing
using digital marketing tools, such as web sites, social media, mobile apps, and ads, online video, email, and blogs to engage consumers anywhere, anytime via their digital devices
social selling
using online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance
team selling
using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts
Which form of retailing is Best Buy now using in airports to distribute its mobile phone and computer accessories, digital cameras, flash drives, and other consumer electronics?
vending machines
Kmart's "Ship My Pants" online commercial was shared by thousands of people through social media and watched millions of times on YouTube. This is an example of
viral marketing
Kristen received an e-mail from a friend that linked to a video of a funny commercial made by Old Spice. Kristen thought it was so funny that she shared the video on her Facebook page and on Twitter so that all of her friends and followers could see the video as well. This is an example of
viral marketing
The General Agreement on Tariffs and Trade (GATT)
was designed to promote world trade by reducing tariffs and other international trade barriers. It established the World Trade Organization (WTO), which replaced GATT in 1995 and now oversees the original GATT provisions.
According to the __________, retail stores start out simply and gradually add fixtures and more embellishments to their stores to increase the attractiveness for customers.
wheel of retailing
Market Modification
when a company tries to find new customers, increase a product's use among existing customers, or create new use situations.
maturity stage
where most consumers who would buy the product are either repeat purchasers of the item or have tried and abandoned it.
Which of the following statements about salesforce training is most accurate?
whereas recruitment and selection of salespeople is a onetime event, salesforce training is an ongoing process that affects both new and seasoned salespeople
A channel intermediary in the consumer market that sells to other intermediaries, usually retailers, is called a(n)
wholesaler
If Honda gives one of its new motorcycles to a popular blogger so that the blogger would share information on the blog, this is best described as an example of
word of mouth communication
Ascribed Status
you are placed into a social status by an inherited position ex. Prince William + Queen Elizabeth
Achieved Status
you earn your social status by achieving ex. Bill Gates + Steve Jobs
When Procter & Gamble bought the Old Spice brand in 1990, it planned to transform the old, stagnating brand into a men's "personal-care powerhouse." The ads that P&G developed shed the older-man image, and the message is now targeted at the 18- to 34-year-old age group. In terms of the communication process, the __________ would decode the message.
younger-men market segment
