Marketing Exam (chapters 13-16)

Creative decisions: Advertising appeals

can appeal to you through -profit -health -fear-->if you are going to present a problem/have to provide a solution or else people will associate your product with the problem ex: skin cancer commercials -admiration -convenience -fun and pleasure -vanity and egotism -environmental consciousness

Classification of retailers (level of service and product assortment): Product assortment

can base it off width and depth of product lines •Width - Assortment of products offered wide=walmart, meijer, department stores •Depth - Number of different brands offered within each assortment ex:finish line, cabellas

Classification of retailers (level of service and product assortment): service

can be from full service to self service ex: nordstrom-->has personal shoppers vending machine->full self service

Digital media types: Owned media

company websites, company blogs advantage=have control over the information being given to consumers disadvantage=considered biased, hard to drive traffic to websites (people have to seek you out) **marketing controlled*

supply chain integration

Occurs when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another

Alternative Channel Arrangements: Gray Marketing Channels

•Unintended secondary channel that often flow illegally obtained or counterfeit product toward customers

Supply chain orientation

System of management practices that are consistent with a "systems thinking" approach

Alternative Channel Arrangements: Dual channel

•Use of two or more channels to distribute the same product to target markets ex: Apple and Nike

Classification of retailers (type of ownership): Chain Stores

Part of a group of the same stores owned and operated by a single organization ex: Walmart, Macy's

Retail Marketing Mix (6Ps): Personnel

sales people are trained in the following selling techniques: -trading up: trying to get people to buy more expensive product -suggested selling: trying to add purchases with related items

Classification of retailers (type of ownership): Independent Retailer

•Establishment is owned by an individual or a group these are mom and pop shops

Eight key processes in supply chain management (EXTERNAL): Supplier Relationship Management

*how you identify and maintain your most valued suppliers* •Highly dependent on supplier relationships for flexibility •Provides structural support for developing and maintaining relationships with suppliers

Impact of social media

-->consumers have become senders too markets can now personalize ads with mass communication

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-Sampling- promotional program that allows the consumer the opportunity to try a product or service for free •Point-of-Purchase (POP) is a promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying -->Advantage - Offers manufacturers a captive audience in retail stores

advertising can...

-change a consumer's negative attitude into a positive one about a product -reinforces positive attitudes toward brands -can affect the way a consumer ranks a brand's attributes

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-contests: Promotions in which participants use some skill or ability to compete for prizes **involve skill -sweepstakes: Promotions in which participants are able to win depending on chance **completley up to chance* Unsuccessful tools to generate long-term sales*

Media selection: Schedule

-continuous media:Advertising is run steadily throughout the period ex: mon-friday an ad runs for 4 weeks -flighted media: Advertising is run heavily every other month or every two weeks ex: run ad for two weeks and take it off for two weeks -Pulsing media: Advertising combines continuous scheduling with flighted scheduling -seasonal: Advertising is run only when the product is likely to be used ex: holiday ads

Integrated Marketing Communications

-coordination of all promotional messages for a product-->To ensure the consistency of messages at every contact point where a company meets the consumer **because there are so many outlets now, you have to have a consistent message across all platforms, and because the mass market is so fragmented (harder to reach people)

Tools for consumer sales promotion

-coupons: Certificate that entitles consumers to an immediate price reduction when the product is purchased -rebates: cash refund given for the purchase of a product during a specific period (company's make this a pain to do) -premium:Extra item offered to the consumer in exchange for some proof of purchase of the promoted product •Reinforces consumer's purchase decision •Increases consumption and persuades nonusers to switch brands

Types of in store retail operations

-department stores -specialty stores-->carry a narrow assortment but have depth in product lines -supermarkets -drugstores -convinience stores -Discount stores -restaurants-->a combination of goods and services **a lot of overalp within the 7 operations

effects of advertising on market share

-form of promotion -new brands with small market shares spend more on advertising because consumers have to see an ad a certain number of times to make it stick with them/affect purchase habits (Advertising response function) *but at some point it won't make a difference

Categories of discount stores

-full line discounters=walmart -supercenters=target super center -specialty discount stores=ex: footlocker -->category killers=specialty discount store that carries everything, covers every possiblty for purchase -warehouse club=sams club, costco -off price retailers=TJ Maxx -->factory outlets=outlet malls -->used good retailers-->goodwill

Types of Consumers and Sales Promotion Goals

-loyal customers: do loyalty programs -competitor's customers: sweepstakes, sampling to get them to try your product -brand switchers: promotion that lowers price of product, trade deals that make your product more readily available than competitor -price buyers: coupons to make price match that of competitors/product that would have been purchased

Media selection examples

-newspapers -Magazines -Radio -Television -Internet -Outdoor media

Factors that affect promotional mix: PLC

-preintro: small amounts of advertising --intro/growth: heavy advertising and PRto build awareness, personal selling -maturity: competitors come in, want to build brand loyalty, see product line extensions, back off advertisements, just want to remind consumers of your product -decline: cut all non essential marketing expenses, trying to harvest product before you divest it

Factors that affect promotional mix: Push/Pull

-push: pushing the product through the supply chain -pull: pulling product ex: pharmacuticals, now we see drug ads on TV, so people go ask for these at the doctor, going directly to the patient who pulls it through the supply chain

Factors that affect promotional mix: Type of buying

-routine: use advertising and sales promotion to tell customers don't forget about us -neither routine nor complex: use advertising and public relations -complex: use personal selling and print ads because the products are more expensive ex: cars, won't buy a car without going to the dealership

Developments in retail management

-showrooming is an issue-->have a lot of overhead and customers could come in and then order from somewhere else --->channel omnification: developed as a way to decrease showrooming, if a store doesn't have what you want they will order it for you in stores and price match, its a way to have a single channel of inventory -click and collect: buy something online and pick it up in store -robots are replacing retail employees-->retailers then go to work in warehouses where they could get paid more

Creative decisions: AIDA model

-used for advertising campaigns •Depending on where the consumers are in the model, creative development might focus on: •Creating attention •Arousing interest •Stimulating desire •Leading to the action of buying the product

Service recovery

-you have to have plans in place when there is failure* -could notify customers in advance of stockouts ex: Amazon says how many are left in stock -liberal return policies-->Neiman Marcus, Nordstrom -product line recalls tied with promotional offers->apple does this

Goals of promotion

1. Informative: converts an existing need into a want or stimulates interest in a new product 2. Persuasive: Stimulates a purchase or an action, how do we prompt consumer to buy 3. Reminder: Keeps the product and brand in the public's mind 4. Connection: Forms relationships with customers through social media

Public relation tools

1. New Product Publicity 2. Product Placement ex: products in movies 3. Consumer Education 4. Sponsorship 5. experiental marketing 6. Company Websites

functions of public relations

1.Press relations 2.Product publicity 3.Corporate communication 4.Public affairs 5.Lobbying 6.Employee and investor relations 7.Crisis management

Levels of distribution intensity: selective

Achieved by screening dealers to eliminate all but a few in any single area ex: car dealerships

Levels of distribution intensity: intensive

Aims at having a product available in every outlet where target customers might want to buy it ex: gum, candy

Types of Intermediaries: Merchant wholesaler

Buys goods from manufacturers and resells them to wholesalers, retailers, or businesses •Takes title to goods, stores them, and later ships them-->they can now decide pricing and will now hold the risk if something happens in transit, usually carry low cost items ex: gum, candy

supply chain

Connected chain of all of the business entities, both internal and external to the company that perform or support the logistics function-->integating all activities into a seamless process

Alternative Channel Arrangements: Strategic channel alliances

Cooperative agreement between business firms to use the other's already established distribution channel ex: Sephora inside Macy's

Public relations

Element in the promotional mix that: •Evaluates public attitudes •Identifies issues that may elicit public concern •Executes programs to gain public understanding and acceptance **typically publicity is free but have to pay someone to do PR* publicity=Effort to capture media attention, often initiated through press releases that further a corporation's public relations plans

Levels of distribution intensity: exclusive

Establishes one or a few dealers within a given area ex: Tesla, don't need more than one dealership in an area because its a specialty item and consumers will travel for them because they won't accept substitutes

Factors that affect promotional mix: Available funds

Permit firms to optimize their return on promotion dollars while minimizing the cost per contact •Cost per contact •High for personal selling, public relations, and sales promotions •Low for national advertising since it reaches a large number of people

Alternative Channel Arrangements: Drop and Shop

•System used by retailers that allows customers to bring used products for return or donation at the entrance of the store ex: Staples haaving boxes to collect ink cartridges

Omnichannel Marketing

Helps unify retail interfaces so that all customers receive equal and efficient service •Helps retailers merge their distribution channels -->By making their inventory data available to customers in real time •Creates greater customer control over the shopping experience, leading to greater satisfaction and loyalty *a seamless process*

Retail Marketing Mix (6Ps): Presentation

Influential factors in creating a store's atmosphere •Employee type and density •Merchandise type and density ex: Anthropology vs. Old Navy •Fixture type and density •Sound, odors, and visual factors •Layout of the store

Factors that affect promotional mix: Target market

More advertising and sales promotion and less personal selling are required for a target market characterized by: •Widely scattered potential customers (geographically located) •Highly informed buyers •Brand loyal repeat purchases **less personal selling and more advertising**

Communication

Process by which meanings are exchanged or shared through a common set of symbols two kinds: 1. interpersonal communication: direct face to face communication advantages=builds relationships and trust, easier to convince people to buy things but more expensive 2. mass communication: communicating a concept to a large audience ex: mass emails advantage=can be cheaper and easier to reach a lot of people but hard to personalize, don't know if customers are interpreting the message the way you intended

Sales promotion

Short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately by: •Lowering the price •Adding value •Goal is to give the consumer an incentive to make an immediate purchase

Demand Supply integration

•Type of internal** supply chain integration •Integrates the supply-management and demand-generating functions of an organization •Enhances customer satisfaction

Types of Intermediaries: Agents and Brokers

Wholesaling intermediaries who facilitate the sale of a product by representing channel members •Do not take title to a product •Get a fee or commission based on sales volume **so they facilitate the sale of a product and get commission based on the sale ex: real estate, stock brokers, insurance usually expensive, complex, and personal items

scrambled merchandising

a lot of retailers are trying to survive by becoming a "one stop shop" and meet a number of consumer needs ex: patio furniture in super markets, food in drug stores

AIDA concept

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action **progression of decisions in buying* -example: Advertising is good at getting our attention but bad at getting us to buy the product (action) and sales promotion is very good at getting us to buy products (action)

Marketing channels

a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer •Channel members: Parties who: -->Negotiate with one another -->Buy and sell products -->Facilitate the change of ownership between buyer and seller while moving the product from the manufacturer to the final consumer **these reduce the number of transactions ex: best buy is an intermediary that sells lots of brands of TVs **but ecommerce has influenced this because you could go straight to Sony's website

Types of advertising: Product advertising

advertises the benefits of a specific good and has thee sub categories 1. Pioneering advertising: stimulating primary demand, introductory stage when you are the only player, so stimulating demand for the entire industry ex: iphone being the first smart phone so they advertised smartphones as a whole 2. competitive advertising: have competition now, in growth stage, want you to buy specific brand 3. comparative advertising: when you mention a competitor by name and compare it to your product, use when your growth is slow or competition in the market is strong ex: verizon/cell phones **but sometimes you are advertising against yourself ex: Apple getting you to buy their newest phone

Digital media types: Earned media

any PR media coverage, any publicity coverage outlets pick up advantage=unbiased dis=can be negative because you don't have control

Promotion

anything that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response **but hard to prove cause and effect of why consumers purchase a product and if it's linked to promotion* 5 elements of promotional mix: -advertising -Public relations -personal selling -sales promotion -social media

where is social media concentrated

between owned media and earned media with some but not much paid media

overview

direct channel-->Apple retailer-->apple also does this by shipping to best buy and selling their products wholesaler-convenience, low cost goods Agent/broker-houses

Alternative Channel Arrangements: nontraditional channels

ecommerce, ex: amazon

Retail Marketing Mix (6Ps): Place

factors to consider when choosing a location: -growth potential of location -competition nearby -geography -->stores in isolated locations must become destination stores to success ex: IKEA, people are willing to drive there only to go to that store

Retail Marketing Mix (6Ps): Promotion

includes advertising, public relations/publicity (store openings), sales promotion (coupons/discounts) -the risk=band cannibalization-->sales of one brand/new product takes away sales from another brand (established brand)

Retailing decisions for services

•Service industries are customer oriented, and service quality is a priority -Service distribution focuses on: •Minimizing wait times •Managing service capacity •Improving service delivery •Establishing channel-wide network coherence

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loyalty marketing programs -Build long-term, mutually beneficial relationships between a company and its key customers •Frequent buyer program is one of the most popular types -Benefits of the programs are: •Shoppers receive discounts, alerts on new products, and other types of enticing offers •Retailers are able to build customer databases and understand customer preferences

Non store retailing

not visiting a physical location, helps keep overhead low the different kinds are: -vending -direct retailing-->ex=mary kay, going through a sales rep -direct marketing-->ex=catalogs, QVC -online retailing

Retailers

sell directly to end users •Simplify distribution by: •Reducing the number of transactions required by consumers •Making an assortment of goods available in one location

Communication process

sender encoding the message-store display, press release, coupon, social media message channel-could be media, sales person, retail store, local news show decoding the message-receiver interprets the message receiver-customers, viewers/listeners, news media, clients -feedback channel-goes between sender and receiver, this is market research, sales results (how you know the message got across) -noise-goes though encoding the message, message channel, and decoding the message, this is anything that impedes communication, other ads, other store displays, news articles

Digital media types: Paid media

sponsored ads, pop up ads advantage=still have control over the content disadvantage=can still seem biased and can be pricey *marketing controlled*

Define target market

start with market segmentation the challenge is the market changes so fast in retailing -->will define it with demographics, geographics, and psychographics

CHapter 14

starts now

Chapter 15

starts now

Chapter 16

starts now

chapter 13

starts now

Marketers

they can be senders or receivers of a message, much more of a dialogue-->get feedback and adapt messages -communication process: many things can go wrong, consumers might not get the message company wanted them to -senders: could be the company or consumers ex: bloggers, leaving reviews, word of mouth -receivers:Develop and adapt messages and spot new communication opportunities

Creative decisions: Ad campaign

•Series of related advertisements focusing on a common theme, slogan, and set of advertising appeals -campaign begins with setting advertising objectives: -->DAGMAR helps set objectives that define -target audience -desired percent change in some specified measure of effectiveness -time frame for change **this is important because company spends lots of money on this, want to make sure you are meeting goals

Eight key processes in supply chain management (EXTERNAL): Demand management

•Aligns supply and demand throughout the supply chain by: -->Foreseeing customer requirements at each level -->Creating demand-related plans of action prior to actual customer purchasing behavior •Allows customer satisfaction through greater flexibility in manufacturing, marketing, and sales programs -->By sharing customer demand forecasts and data during sales and operations planning meetings **want to involve your suppliers in forecasting, have to trust that they will deliver*

the importance of retailing

•All activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use •Retailer: Channel intermediary that sells mainly to consumers -retailing is only B to C-->not B to B the retail industry is mostly comprised of small businesses-->dominated in terms of sales by a few large companies

Eight key processes in supply chain management (EXTERNAL): Customer Relationship Management

•Allows companies to prioritize their marketing focus on different customer groups -->Based on each group's long-term value to the company or supply chain

Media selection

•Choice of medium-->pick this based off of how you can reach the largest number of people -media planning: series of decisions advertisers make regarding selection and use of media -->Allows the marketer to optimally and cost-effectively communicate the message to the target audience

Factors affecting channel choice: product factors

•Complexity •Price •Customization •Standardization •Life cycle **if complex or high price or customized, use broker **if standard, use wholesaler, short life cycle

Factors affecting channel choice: Marketing factors

•Customer profiles •Consumer or industrial customer •Size of market •Geographic location **how big is the market*

Multichannel Marketing

•Customers are offered information, goods, services, and/or support through one or more synchronized channels •Creates redundancies and complexities in the firm's distribution system **two different channels which does not make for a great experience for the customer*

Types of advertising: Institutional

•Designed to enhance a company's image rather than promote a particular product advertising the image of the company rather than a particular product ex: budweiser during the superbowl -->advocacy advertising: expressing views on controversial issues or responds to media attacks (sub category of institutional)-->Budweiser does this by stating their opinion on environmental issues and not drinking and driving

Alternative Channel Arrangements: Reverse channels

•Enable customers to return products or components for reuse or remanufacturing ex: selling your Iphone back for recycling

Eight key processes in supply chain management (EXTERNAL): returns management

•Enables firms to manage volumes of returned product efficiently •Minimizes returns-related costs and maximizes the value of the returned assets to the firms in the supply chain •Handling returns quickly creates a positive image -->Gives the company an additional opportunity to please the customer **encourages brand loyalty, has to be easy for customer to return and have to get the product back in the condition to sell it

Eight key processes in supply chain management (EXTERNAL): Manufacturing Flow Management

•Ensures that firms in the supply chain have the needed resources to: -->Manufacture with flexibility -->Move products through a multi-stage production process •Intends to improve overall manufacturing output by leveraging the capabilities held by multiple members of the supply chain -->want to create flexible agreements with suppliers and shippers so unexpected demand can be accomodated

Eight key processes in supply chain management (EXTERNAL): Product Development and Commercialization

•Group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms •Capability for developing and introducing new offerings quickly is key for competitive success versus rival firms *involve your suppliers in product development, could lead to getting new products to market faster*

Eight key processes in supply chain management (EXTERNAL): Order fulfillment

•Highly integrated process -->Requires people from multiple companies and functions to gather and coordinate to create customer satisfaction at a given place and time •Reduces order cycle time when at its best (time ordered to the time delivered) •Involves understanding and integrating the firm's internal capabilities with customer needs and matching these together -->For allowing supply chain to maximize profits and minimize costs and waste ex: Amazon does order fulfillment-->they sell third party goods

benefits of the supply chain

•Lower inventory, transportation, warehousing, and packaging costs •Greater logistical flexibility •Improved customer service •Higher revenues •Provides better value to customers with only marginal incremental expenditure on company assets ex: walmart-->they refuse both late and early shipments because wasted inventory on shelves ties up their money

Eight key processes in supply chain management (EXTERNAL): Customer service management

•Presents a multi-company, unified response system to customers when complaints, concerns, questions, or comments are voiced **enables companies to prioritize their marketing focus on different customer groups based on their long term value to the company •Has strong positive impact on revenues when executed properly •Enhanced by the use of customer care software

Factors affecting channel choice: producer factors

•Producer resources •Number of product lines •Desire for channel control *how much control does the producer want, will usually not establish own distribution channel*

Classification of retailers (type of ownership): Franchise

•Relationship in which business rights to operate and sell a product are granted by the franchisor to the franchisee usually fast food is franchised the postive is that you have infrastructure in place and good brand recognition (established) the negative is you lose a lot of control (if you are franchisee), core business functions are dictated by the franchisor-->leads to friction

what are alternative media selections

•Shopping carts •Computer screen savers •Interactive kiosks •Advertisements before movies •Posters •Advertainments (ads masked in entertainment)