marketing/ supply chain final

new marketing communications model

- factors changing the face of todays marketing communications : *changing customers *changing marketing strategies *advancements in digital technology -marketers reach smaller consumer segments in interactive and engaging ways -mix of traditional mass media and a wide array of online, mobile, and social media -content marketing managers create, inspire, and share brand messages and conversations

the great supply chain divide

- the gap between the creation of demands and the operational activities required to fulfill demand has been called the great divide

public relations

- very believable to readers -can dramatize a company or product -reaches many prospects -effective and economical when well thought out

Customer value-based pricing

-Based on buyers' perceptions of value rather than on the seller's cost -price is considered before marketing program is set

price

-The amount of money exchanged for a product or service -determines a firms market share and profitability -product revenue

The focal firm

-a manufacturer of consumer goods who sell to the retailer who then sells to... -focal firm has its own -suppliers-> focal firm-> retailer-> customer *focal firm identified first

value delivery network

-a network composed of the company (focal firm), suppliers, distributors, and ultimately, customers who partner with each other to improve the performance of the entire system on delivering customer value -core concepts: the value we create for the customer is the sum of the value created by all our suppliers and their suppliers and theirs plus the value we add to the product in our manufacturing on production process

selecting advertising media

-advertising media: vehicles through which advertising messages are delivered to their intended audiences -steps in advertising media selection: 1. determining reach, frequency, impact and engagement 2. choosing among major media types 3. selecting specific media vehicles 4. choosing media timing

cost based pricing

-based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk -types of costs: fixed costs (overhead), variable costs, total costs

IMC (Integrated Marketing Communications)

-carefully blended mix of promotion tools

dynamic pricing

-computer software constantly watching sales -compare whats been sold for specific date from historic data to decide the rate

good value pricing

-creating a reputation and position for being a great value -for what we are giving the customer, we have a lower price -*lower price

emerging challenges in scm

-disruptive technology -global geopolitical and social changes -talent and skill requirements

evolution of supply chain

-individual functional grouping of related activities and processes in: *procurement *manufacturing *service operations and logistics *internal integration across one organization *integrated end-to-end supply chain

number of intermediaries

-intense distribution, exclusive distribution, selective distribution

marketing channels (distribution channels)

-interdependent organizations that help make product or service available for use or consumption -the cumulative activities of channel members that make a product available when, where, what quantities a customer wants it -channel decisions: *affect every other marketing decision *can lead to competitive advantage *may involve long term commitments to other firms

how channel members add value

-intermediaries create greater efficiency in making goods available to target markets -marketing intermediaries transform the assortments of products made by producers into the assortments wanted by consumers -intermediaries bridge the major time, place, and possession gaps that separate goods and services from users.

today, integrated end to end concept

-internal functional boundaries -suppliers' suppliers -customer -end customers -intermediary goods and service firms

channel design decisions

-marketing channel design involves designing effective marketing channels by *analyzing customer needs *setting channel objectives *identifying major channel alternatives *evaluating the alternatives **** stockout(s)

price elasticity of demand

-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

direct and digital marketing

-more targeting and interactive -immediate and personalized

scm

-most experts expect even greater change in the next 20 years -much of this change is driven by broad mega trends impacting not only supply chains, but the external geo-political social and economic environment in which supply chains operate -changes challenge supply chain managers to proactively grasp new requirements and capabilities to continue to deliver improving economic and societal value

personal selling (the opposite of advertising)

-personal interaction between two or more people -allows all kinds of customer relationships to spring up -buyer feels a greater need to listen and respond -most expensive promotion tool

types of channel flows that connect the institution in the channel

-physical flow of products -flow of ownership -payment flow -information flow -promotion flow

original scm had a very functional focus

-procurement -manufacturing -logistics

common consumer marketing channels

-producer---> consumer= channel 1, ex. apple consumers -producer----> retailer--> consumer+ channel 2, ex. buying laptop from best buy -producer--> wholesaler--> retailer--> consumer= channel 3, ex. Bic pens

advertising

-reaches masses of buyers at a low cost per exposure -builds a longterm image for a product -can trigger quick sales -has a public nature and is viewed as legitimate -very expressive -impersonal and lacks the direct persuasiveness of salespeople

competition-based pricing

-setting prices based on competitors strategies, costs, prices, and market offerings -company should ask several questions to assess competitors pricing strategies : 1. how does the companies market offerings compare In terms of customer value 2.how strong are current competitors 3. what are their current pricing strategies

drivers and results of the great divide

-siloed functional areas -internal integration -end to end supply chain integration

value added pricing

-where marketers charge a higher (than competitors) price to create better value for customers -paying higher price for a lot more value

sales promotion

-wide assortment of tools with unique qualities -attracts attention and offers incentives to purchase -used to dramatize product offers and boost sales -invites and rewards quick response but short lived effects

4 Ways Organizations Create Value

1. determine and generate customer demand 2. fulfill or supply customer demands 3. plan, source, make, deliver 4. ...

impact financial performance

1. supply chains can increase top-line revenue by providing a better product or service that enables the company to charge more 2. supply chains can increase bottom line profitability through lower cost of goods sold or more efficiency in manufacturing expense 3. supply chains can reduce the need for working capital through reducing inventories needed to effectively operate a companies supply chain 4. companies through well executed supply chain management can increase their return on investments through better utilization of fixed assets ex. plants, property, equipment, transportation assets

considerations affecting price decisions

1.internal factors: -overall marketing strategy, objectives, and mix -organizational considerations 2. external factors: -market and demands -economy -impact on other parties in its environment

promotion mix

A company's total marketing communications mix consists of tools that the company uses to engage customers, persuasively communicate customer value, and build customer relationships

types of cost based pricing

Cost-plus pricing (markup pricing) -Adding a standard markup to the cost of the product 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

how does the supply chain management create value

Form, time, place, exchange

Push Promotional Strategies

Producer--->(producer marketing activities: personal selling, trade, promotion) retailers and whole sales--> (push strategy) consumers (reseller marketing activities: personal selling, advertising, sales, promotion, other)

supply chain management refers to

The management of up and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole

supply chain management refers to a relatively new business phenomenon meaning

The management of up and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole

which of the following is an example of horizontal channel conflict

a ford dealer complaining that another ford dealer is advertising in its territory (a disagreement among 2 or more channel members at the same level)

what is the most common type of contractual VMS

a franchise

promotion mix

a promotion mix, or marketing communications mix, is a specific blend of promotion tools: 1. advertising 2. sales promotion 3.personal selling 4. public relations (PR) 5. direct and digital marketing MARCOM

what is supply chain?

a supply chain consists of the organizations, people, activities, information, and resources involved in moving a product or service from the origins of supply all the way to the point of final consumption, and increasingly reentering material that was not consumed back into the supply chain for reuse or recycling. -began in ancient Mesopotamia *Silk Road- an important trade route

value based pricing

access customer needs and value perceptions -> set target price to match customer perceived value -> determine costs that can be incurred -> design product to deliver desired value at target price

channels so often involve long term commitments and companies have many alternatives what type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes

adaptability criteria

what enables highly specific machining on site quickly and at a low cost with the potential to revolutionize the form/ time/ place mix in some industries for example, spare parts, prosthetics, etc.

additive manufacturing and 3D printing

larger retailers like Walmart have enormous channel control due to their size and power. which type of channel arrangement does this represent

administered vms

in the promotion mix, ___ refers to any paid form of nonpersonal and promotional ideas, goods, or services, by an identified sponsor

advertising

roshika has been invited to a fancy wine dinner party and wants to bring a good bottle of Wine as a gift for the host. since she doesn't know a lot about wine, she will likey use price as

an indicator of quality

what is the first step in the marketing channel design

analyzing consumer needs

what is NOT an innovation related to disruptive technology

automotive distribution

which of the following is a cost oriented pricing approach

breakeven pricing

Gillette charges a fairly low price for its razors​ (relative to​ costs) and a high price for razor blades. It is using a strategy of​ ___________ pricing.

captive pricing

what is a layer of intermediaries that perform some work in bringing the product and its ownership closer to find the final buyer

channel level

intermode transportation

combining two or more modes of transportation -piggyback: rail and trucks -fishyback: water and trucks -trainship: water and rail -airtruck: air and trucks

5 modes of transportation

companies can choose among 5 modes of transportation: truck, rail, water, pipelines, air

as delta invests in luggage tracking-it Is switching to baggage tag with radio frequency ID chips embedded, delta will now be able to accurately track customers baggage in real time! even through new technologies costs a great deal, delta could save on fewer luggage claims and deliveries. what does this example imply

companies need to evaluate cost-to-serve versus the perceived benefits

what is made up of one or more independent producers, wholesalers, retailers, and consumers

conventional distribution channel

Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) _________.

corporate VMS (vertical marketing system)

logos, stationary, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucks are examples of which promotional tool?

corporate identity materials

which of the following approaches would NOT help business deal with the great divide

creating a production oriented focus across the supply chain

which of the following is not am element of the integrated supply chain for General Mills honey nut cheerios

dairy cow farmers

the goal of integrated marketing communication is to

deliver clear, consistent, and compelling messages about the organization and its brands

supply chain supports organizational strategy by

delivering on the promise of exchange through form, time, and place -organizations that do this well create value that exceed that of their competition -significantly impact organizational performance: *enhanced revenue *reduced cost *improved asset management

an example of the role of the supply chain in a firm is

delivering on the promise you made to customers

the "great divide" in supply chain occurs between

demand focused activities and supply focused activities

downstream logistics

demand serviced from existing inventory- taking actual questions regarding the desires of marketing demand to be able to provide those products to customers exactly when and where they want them

cost based pricing

design a good product -> determine product cost-> set price based on cost -> convince buyers of product value

Online marketers taking business from traditional​ brick-and-mortar retailers is an example of​ _____.

disintermediation

which emerging megatrends will greatly challenge supply chain managers

disruptive technology , talent requirements and social changes

Continually adjusting prices to meet the characteristics and needs of individual customers and situation is known as

dynamic pricing

which of the following statements is true regarding oligopolistic competition

each seller is alert, and responsive to competitors price strategies and marketing moves

selective distribution

ex pepperidge farm cookies

supply chain management

extends the linking and coordination of materials management, manufacturing management and distribution upstream to suppliers and downstream to customers

which of the following utility does general mulls provide the nit uses its specific food ingredients to make honey nut cheerios

form

which economic utilities are associated with supply chain management

form, time, place

form, time, and place utility

form-spring water/ purified water time- single source far from market/ multiple sources close to marker place- limited availability as "premium item"/ wide availability

which geo-political and social patterns will alter the conduct of supply chain management

global unrest, and complexity in trade laws

procurement

identification, acquisition, and management of goods and services needed to run business or organizations

linking supply chain performance to financial performance

increase customer service---> profit and loss statement reduce fixed capital---> balance sheet reduce total cost---> total operating expense reduce working capital---> current assets -scm can have up to 70% impact on earnings per share

gaining competitive advantage through scm

increasing value: -tailored service, reliability, responsibility increase productivity: - capacity utilization, asset turns, integration

Producers of convenience products typically use​ ______ distribution.

intensive

producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of it line. this is known as full-line forcing. which of the following statements is true regarding full line forcing

it may or may not be legal

which of the following describes a just-in-time logistics system

just-in-time logistics system allow producers and retailers to carry small inventories to last for only a few days of operations

exclusive distribution

limit the number of intermediaries to give our product an exclusive feel. ex. rolls roice

how a distributor reduces the number of channel transactions

manufactures go through on distributor which go to customers

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use?

market penetration pricing

When Apple Computer Company introduced its​ iPhone, its priced the new product at​ $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a​ ___________________ new product pricing​ strategy.

market-skimming

which of the following is a reason that producers use marketing channels and channel intermediaries

marketing channel members are able to transform the assortment of products made by producers into the assortment wanted by consumers

One key function performed by channel members is​ ___________, or shaping offers to meet the​ buyer's needs, including activities such as​ manufacturing, grading,​ assembling, and packaging.

matching

components of supply chain

materials--->procurement, inbound logistics(supplier base)---> (integrated enterprise) MFG/SVC operations , order management--->(market distribution network) outbound logistics, customer service/ post sales support---> end customer

disintermediation

occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones. ex. bell--> your doorstep

the coordination of forecasting, finished goods inventory management, warehousing, customer service, outbound transportation and production scheduling describe which activity in the porter value chain

outbound logistics

Companies today see channel members as​ first-line customers and practice strong​ ________.

partner relationship management

generally, ____ is a companys most expensive promotional tool

personal selling

logistics/ supply chain management is closely tied with marketing as it typically fills which OPO

place

Selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business is an illegal practice called​ _______.

predatory pricing

manufacturing and services operations

processes and activities involved in transforming these raw resources or subcomponents into finished products as well as those involved in planning and controlling the systems that produce these goods or services

one side: upstream activities in the supply chain

procurement, inbound logistics, manufacturing and serivce operations, placement of finished goods close to customer conducted for in advanced to actual demand, and in very large volumes to take advantage of the economies of scale

pull promotional strategy

producer--> (producer marketing activities: advertising, sales, promotion, online/ social media, others) consumers--> (demand) retailers and whole sailers-->(demand) producer etc.

intense distribution

product for sale in as many retailers as possible. ex. Twix

one popular method of brand entertainment is____which embed brands as props within other programming, for example, television shows and movies

product placement

Companies who primarily direct their promotional activities to channel members are using​ a(n) ______ strategy.

push

which technology could one day make the entire supply chain intelligent and automated

radio frequency identification

upstream logistics

real time questions masked as efficiently maximizing long term plan rather than doing what customers want in the real time. -result often= is availability In markets of products customers don't actually want, in places and times they don't want them -occur in the form of stock outs and cost sales, or expedited cost to produce and or move and store small volumes in short lead times to accomplish what customers want

which of the following is NOT a component of a supply chain as listed in SCM1

retail management

involves reusing, recycling, refurbishing, or disposing broken, unwanted, or excessive products returned by consumers or resellers

reverse logistics

_____ is a short term incentive to encourage the purchase or sale or products or service

sales promotion

It is said today that marketing is responsible for identifying profitable demand and creating products to incentivize customers to buy, while supply chain management role is to

satisfy demand by putting the product in customers hands at the right time, place, right quantity and right price

customer service and after sales support

services provided after delivery of final goods such as repairs, maintenance, or customer service support

companies that excel at scm are structured and include all of the following except

siloed organizational structure

the___ message execution style shows one or more "typical" people using the product in a normal setting

slice of life

which channel partners in a company's supply chain are upstream from a manufacturer or producer

suppliers

Geared2Beer, a craft beer​ brand, identifies a market segment that is willing to pay premium prices for its craft​ beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The​ company's pricing approach is referred to as​ ________.

target costing

when setting marketing channel objectives, companies should state the objective in terms of

targeted levels of customer service

when setting marketing channel objectives, companies should state the objectives in terms of

targeted levels of customer service

what is at THE CENTER of the integrated supply chain in SCM1

the customer experience

which of the following statements regarding the changing communications landscape is correct

the dominance of television, magazines, and other traditional mass media is declingin

the separation between demand focused activities and supply focused activities is sometimes referred to as

the great divide

price floor

the lowest price that could be charged -the break even point

inbound logistics

the management of materials coming from suppliers and vendors into the production process or storage facilities waiting for production

downstream

the movement of our finished goods and products through whatever marketing intermediaries there may be until they reach the final customers

which of the following indicates the length of a channel

the number of intermediary levels in the channel

order management

the planning, directing, monitoring, and controlling of the processes related to customer orders, manufacturing orders, and purchase orders

outbound logistics

the process related to the movement and storage of finished products from the end of the production line out to the end user.

when the company has defined its channel objectives, it should next identify its major channel alternative in terms of the types of intermediaries, the number of intermediaries and

the responsibilities of channel members

integrated supply chain management

the systematic coordination of traditional business functions within a particular organization and across organizations within the supply chain for the purposes of improving the long term performance of the individual enterprises and the supply chain as a whole - maximizing relevant value creation

which of the following accurately represents the three characteristics of advertising appeals?

to be meaningful, to be believable, and to be distinctive

a____ is made up of the company, suppliers, distributors, and ultimately consumers who "partner" with each other to improve there performance of the entire system

value delivery network

under which type of system does the customer share real-time data on sales and current inventory levels with the supplier and the supplier the takes full responsibility for managing inventories and deliveries

vendor-managed inventory

what are the four major functions of logistics

warehousing, inventory management, transportation, logistics information management

price ceiling

what the most normal customer would pay