Test 3 Marketing (11-17)
What type of promotional mix is this? -consists of all marketing activities that stimulate consumer purchasing and dealer effectiveness -a short-run tool used to stimulate immediate increases in demand. -can be aimed at end consumers, trade customers, or a company's employees -include free samples, contests, premiums, trade shows vacation giveaways, and coupons. -includes experiential marketing where marketers create events that enable customers to connect with brands.
Sales Promtion
What must be one of every firm's most critical specialties?
Sales management. Effective sales management stems from a success oriented sales force that accomplishes its mission economically and efficiently.
In the mass production era, manufacturers produced standardized products that were "pushed" down through marketing channels to consumers, who who convinced by ___________ to buy products
Salespeople
HSN and QVC produce television shows that display merchandise to home viewers. Viewers can phone in their orders directly on toll-free lines and shop with their credit cards.
Shop-at-home television networks
Tumblr, Pinterest, Instagram, Snapchat
Social Media
What platform is increasingly being used to make sales?
Social media
Public information about a company, product, service, or issue appearing in the mass media as a news item.
Social media sites like Twitter can provide large amounts of publicity quickly
Radio
Strengths: selectivity and audience segmentation, a large out-of-home audience, low unit and production costs, timeliness, geographic flexibility
Includes all of the companies involved in the upstream and downstream flow of products, services, finances, and information, extending from the initial suppliers (the point of origin) to the consumer (the point of consumption)
Supply Chain
Television
TV broadcasters include network tv, independent stations, cable television, and direct broadcast satellite television. Network TV reaches a wide and diverse market, and cable television, and direct broadcast satellite systems, such as DIRECTV and DISH Network, broadcast a multitude of channels devoted to highly segmented markets.
Consumers are shopping on what devices?
Tablets. One study found that tablets accounted for twice as much in web-based sales as smartphone purchases.
What plays an increasingly important role in personal selling?
Technology plays an increasingly important role in personal selling. Instead of traditional pamphlets and brochures, consumers are now able to easily learn about products and services by searching the Internet before entering a store. Even after entering a store, consumers use their smartphone to browse competitors' websites while evaluating products.
a highly effective marketing technique, recent estimates indicate that 5,000 U.S. companies will spend over $15 billion on inbound and outbound calls by 2015
Telemarketing
Media Advertisers
The 6 major advertising media are newspapers, magazines, radio, TV, the internet, and outdoor media
Consumers still spend a lot of time consuming traditional media.
The average person spends more than 250 minutes a day watching TV and 329 minutes a day using digital media devices like desktops, laptops, and tablets. Americans report an average of 5.3 leisure hours a day, and most of it is spent watching TV
The data side of marketing
The data side of marketing has continued to see rapid growth. Companies are collecting huge amounts of information and need skilled, creative, web-savvy people to interpret the data coming in from Web, mobile, and other digital campaigns.
Connecting
The idea behind social media is to form relationships with customers and potential customers through technological ties such as Facebook, Twitter, Youtube, or other social media platforms.
What eventually happens at the Decline stage?
The product is withdrawn from the market
The combination of advertising, public relations, personal selling, and social media to reach a target market
The promotional mix
The world's largest professional network, with more than 400 million members. LinkdIn offers sales solutions to help salespeople find prospects, qualify leads, and make product recommendations to decision makers. LinkedIn also provides free advice on how to effectively sell using social media, including a six-step guide to aid salespeople in successful social selling. LinkedIn also provides actionable social selling tips, making it a great resource for salespeople looking to harness the power of technology for themselves.
Why do marketers use public relations?
To maintain a positive image, to educate the public about the company's goals and objectives, introduce new products, and help support the sales effort
What is the logo of Traveler's Insurance Company? Why do they use it?
Travelers Insurance Company uses an umbrella symbol as a tangible reminder of the protection that insurance provides.
What type of promotion strategy is this? -someone consumers are familiar with (such as a celeb) or someone they admire or can relate to personally. Service firms may seek to simulate positive word-of-mouth communication among present and prospective customers by using real customers in their ads.
Using personal information sources
Word of mouth communication
WOM communication within and across groups, including social media and viral communication, speeds diffusion. Opinion leaders discuss new products with their followers and other opinion leaders.
What channel is this? Commonly used for low-cost items that are frequently purchased, such as candy, cigarettes, and magazines
Wholesaler channel
What traits should sales managers look for in applicants?
-Ego Strength: should have a strong, healthy self-esteem and the ability to bounce back from rejection. -Assertiveness: should have the ability to be firm in one-to-one negotiations, to lead the sales process, and to get their point across confidently w/out being overbearing or aggressive -Sociable: wanting to interact with others is a necessary trait for great sales-people. -Risk Takers: Great salespeople are willing to put themselves in less-than-assured situations, and in doing so, often are able to close unlikely sales. -Creativity: develop client solutions in creative ways.
Agents and brokers
-non-ownership facilitate the sales of products downstream by representing the interests of retailers, wholesalers, and manufacturers to potential customers. Unlike merchant wholesalers, agents or brokers only facilitate sales and generally have little input into the terms of the sale. They do, however, get a fee or commission based on sales volume. Stubhub is an example
Benefits of Supply Chain Management
-report lower inventory -transportation -warehousing -packaging costs -greater logistical flexibility -improved customer service -higher revenues
Compensation planning
-tough job for sales' managers Companies and industries with lower levels of compensation suffer higher turnover rates.
Sales manager's basic job is to maximize sales at a reasonable cost while also maximizing profits, other responsibilities and decisions include:
1. Defining sales goals and the sales process 2. Determining the sales force structure 3. Recruiting and training the sales force 4. Compensating and motivating the sales force 5. Evaluating the sales force
Service Processes: 4 Categories
1. People Processing (Uber and Lyft) 2. Possession Processing (Ubereats, pizza, doggy day care) 3. Mental Stimulus Processing (classes) 4. Information Processing (Turbotax)
If Walmart was a country, its sales would rank ____th in the world in GDP
28th
Advertising reinforces positive attitudes toward brands.
A brand with a distinct personality is more likely to have a larger base of loyal customers and market share.
What will entice shoppers to try a different brand?
A cents-off coupon, free sample, or eye-catching display
What can be viewed as a canal or pipeline through which products, their ownership, communication, financing and payment, and accompanying risk flow to the consumer
A marketing channel
Who is responsible for integrating the company's marketing communications?
A marketing communications director
Marketing managers use sales promotion used to increase the effectiveness of promotional efforts.
A short-term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value.
What type of promotional mix? -any form of impersonal paid communication in which the sponsor or company is identified
Advertising
Which intermediaries facilitate the sales of products downstream by representing the interests of retailers, wholesalers, and manufacturers to potential customers?
Agents and Brokers
Which online retailer sells more than 200 million products in the United States, including more than 5 million items in the clothing department and more than 20 million in the sports and outdoors department
Amazon
Getting a job after college is an example of this intagible experience
An experience quality
Magazines
Another traditional medium that has been successful
The five most valuable U.S. brands
Apple: $170 billion, up 43% from last year Google: $120 billion, up 12% Coca-Cola: $78 billion Microsoft: $67 billion IBM: $65 billion
The major forms of nonstore retailing are
Automatic vending, direct retailing, direct marketing, and Internet retailing (or e-tailing)
How do agents and brokers earn revenue if they do not take ownership of the goods?
Bc they get a fee or commission based on sales volume. The broker facilitates the sale of many different manufacturers' products to the grocery chain by marketing the producers' stock, but the broker never actually take ownership of any food products
On online retailing, why can shoppers look at a much wider variety of products online?
Because physical space restrictions do not exist
Why is consistency and quality control hard to achieve in heterogeneity?
Because services tend to be labor intensive and production and consumption are inseperable
How do retailers simplify distribution?
By reducing the number of transactions required by consumers, and by making an assortment of goods available in one location.
Who negotiates with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving finished goods from the manufacturer into the hands of the final consumer.
Channel member
What countries does McDonalds deliver in?
China and India
Promotion
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
what type of promotion is this? -The idea behind social media is to form relationships with customers and potential customers through technological ties such as Facebook, Twitter, Youtube, or other Social media platforms
Connecting
McDonald's strength
Consistency. Whether customers order a Big mac in Chicago or Seattle, they know exactly what they are going to get.
Distribution strategies must focus on...
Convenience, number of outlets, direct versus indirect distribution, location, and scheduling. A key factor influencing the selection of a service provider is convenience
Can be highly efficient or highly inefficient
Direct mail
techniques include telemarketing, direct mail, and mail-order catalogs
Direct marketing
Companies like Avon, Mary Kay, and The Pampered Chef use this approach
Direct retailing
Next 13.5% to adopt the product -A new product's best friend -bc of viral, buzz, and word of mouth advertising is on the rise, marketers focus a lot of attention identifying the group that begins the viral marketing chain - the influencers -The characteristic influencers share is their desire to talk to others about their experience with the good/service
Early Adopters
Next 34% -weighs to pros and cons before adopting a new product -collect more information -unlikely to be opinion leaders -
Early Majority
Content marketing
Entails developing valuable content for interested audience members and then using e-mail marketing, search engine optimization, paid search, and display advertising to pull customers to the company's website or social media channel so that they can learn about the brand or to make a purchase. Content created by brands is typically distributed through social media.
What form of retailer? A retailer business where the operator is granted a license to operate and sell a product under the brand name of a larger supporting organizational structure, such as Subway or Supercuts.
Franchise
pays the franchisor for the right to use its name, product, and business methods, and takes advantage of the franchisor's brand equity and operational expertise.
Franchisee
FSIs
Free Standing inserts, the promotional coupon inserts found in newspapers, the traditional way pf circulating printed coupons. FSIs are used to distribute 80% of coupons. Such traditional types of coupon distribution, which also include direct mail and magazines, have been declining for several years, as consumers use fewer coupons, Mobile coupons have a much higher redemption rate than paper coupons
More than 36% of every media dollar goes to TV ads, almost 28% to Internet ads. 11% to Internet ads, 9.6% toward magazine ads, 9.5% to radio ads, 5% to outdoor/cinema ads.
Future growth lies primarily in the digital realm, both in paid media (display ads, video ads, and search ads) and earned media (social media)
What stage is this? -Profits rise rapidly in the growth stage, reach their peak, and begin declining as competition intensifies. Emphasis switches from primary demand promotion to aggressive brand advertising and communication of the differences between brands. (Promoting Kindle v Nook)
Growth
What characteristic of service is this? Variability of inputs and outputs, tend to be less standardized and uniform than goods
Heterogeneity
One special pricing challenge of service
In order to price a service, it is important to define the unit of service consumption. For example? should pricing be based on completing a specific service task (cutting a customer's hair) or should it be time based (how long it takes to cut hair?) Restaurants charge customers for food and drink rather than the use of table and chairs
Growth Stage
In the growth stage, sales typically grow at an increasing rate many competitors enter the market, and large companies may start to acquire small pioneering firms
growth stage of product life cycle
In this stage, sales typically grow at an increasing rate, many competitors enter the market, and large companies may start to acquire small pioneering firms.
The biggest trend in sales promotion on both the trade and consumer side has been the increased use of the...
Increased use of the internet. Social media, email, and website-based promotions have expanded dramatically in recent years. Marketers are now spending billions of dollars annually on such promotions. Sales promotions online have proved both effective and cost-efficient--generating response rates 3 to 5 times higher than off-line promotions.
The goals of promotion
Inform, persuade, remind, connect
What task of promotion is this? -seeks to convert an existing need into a want or to stimulate interest in a new product -more prevalent during the early stages of the PLC
Informing
The first 2.5% of all those who adopt the product. -Are Eager to try new ideas and products, almost as an obsession. -Have higher incomes -More worldy and more active outside their community -Rely less on group norms -more self-confident
Innovators
Diffusion Process: (Five Categories)
Innovators Early Adopters Early Majority Late Majority Laggards
Consumers must be present during this production of service.
Inseparability
Services like haircuts or surgery, where the consumer has to be involved in the production of service are examples of what type of service?
Inseparability
What characteristic of Services does this describe? -cannot be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed.
Intangible
Services have four unique characteristics that distinguish them from goods
Intangible Inseparable Heterogeneous Perishable
The careful coordination of all promotional messages-- traditional advertising, direct marketing, social media, personal selling, event marketing, and other communications-- for a product or service to assure the consistency of messages at every contact point where a company meets the consumer
Integrated Marketing Communications (IMC)
A product progresses through four major stages
Introduction Growth Maturity Decline
What stage is this? -Advertising expenses are high bc of the need to educate consumers abt the product's benefits -Production costs are high, as product and manufacturing flaws are identified and corrected -Sales normally increase slowly during the introductory stage -Profits are usually negative because of R&D costs, factory tooling, and high introduction costs -Intensive personal selling is required to gain acceptance for the product among wholesalers and retailers
Introductory
Which PLC stage is this? A high failure rate, little competition, frequent production modification, and limited distribution
Introductory stage
The final 16% to adopt -By the time they adopt an innovation, it has been outmoded and replaced by something else. -Marketers ignore them, bc they are not motivated by advertising or personal selling and are virtually impossible to reach online
Laggards
The retailing industry is dominated by a small number of what size of company?
Large companies
The next 34% to adopt a product -adopt a new product cuz their friends have it -are older, and below average in income and education -Depend mainly on WOM communication rather than on the mass media -Skepticism is the dominant characteristic
Late Majority
What is experiential marketing?
Marketers create events that enable customers to connect with brands
a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain.
Marketing channel
What stage of the PLC is this? -New users cannot be added indefinitely -the longest stage of the PLC -As prices and profits continue to fall, marginal competitors start dropping out of the market -dealer margins shrink -lower dealer inventories -heavy consumer promotion by the manufacturer is required to maintain market share. -Cuththroat competition can lead to price wars
Maturity Stage
Organizations that facilitate the movement of products and services from the manufacturer to producers, resellers, governments, institutions, and retailers
Merchant Wholesalers
Which intermediaries operate one or more warehouses where they receive finished goods, store them, and later reship them to retailers, manufacturers, and institutional clients.
Merchant wholesalers
Communication directly from the marketer to potential adapters.
Messages directed toward early adopter should normally use different appeals than messages directed toward the early majority, the late majority, or the laggards.
Are there intermediaries in Direct channel?
No! Producers use a direct channel to sell directly to consumers in order to keep purchase prices low.
What type of channel uses approaches such as mail order television or video channels, or infomercials. They may limit a brand's coverage, but they also can give a producer serving a niche market a way to gain market access and customer attention without having to establish physical channel intermediaries and can also provide sales avenue for larger firms.
Nontraditional channels
Newspapers
One of the oldest forms of media. The advantages of newspaper: include geographic flexibility and timeliness. Also encounters distractions from competing ads and news stories.
What is key to retail success? (in selling)
One-to-one interactions
Classifications of retail establishments
Ownership Level of Service Product Assortment Price
An empty hotel room or airplane produces no revenue that day. The revenue is lost. This characteristic of service is
Perishability
Refers to the inability of services to be stored, warehoused, or inventoried.
Perishability
What type of Promotional Mix is this? -involves a personal, paid-for communication between two people in an attempt to influence each other. -attempts to persuade the buyer to accept a point of view.
Personal Selling
What task of promotion is this? -designed to stimulate a purchase or action -the target market should have general product awareness and some knowledge of how to product can fulfill its wants
Persuading
Persuading
Persuasive promotion is designed to stimulate a purchase or an action. It becomes the main promotion goal when the product enters the growth stage of its life cycle. -By this time, the target market should have general product awareness and some knowledge of how the product can fulfill its wants.
The PLC concept can be used to analyze...
a brand, a product form, or a product category
Marketing channel (aka channel of distribution)
a business structure of interdependent organizations that reaches from the point of production to the consumer and facilitates the downstream physical movement of goods through the supply chain. Channels represent the "place" or "distribution" element on the marketing mix (product,price,promotion and place), in that way they provide a route for company products and services to flow to the customer.
Coupon
a certificate that entitles consumers to an immediate price reduction when the product is purchased. Coupons are a particularly good way to encourage product trial and repurchase. They are also likely to increase the amount of a product bought. Coupons can be distributed in stores as instant coupons on packaging, on shelf displays with pull-off coupon dispensers, and at cash registers, printed based on what the customer purchased; through freestanding inserts (FSIs), and through various Internet daily deal sites.
retailer
a channel intermediary that sells mainly to consumers
Marketing channel is also called
a channel of distribution
Experience quality
a characteristic that can be assessed only after use, such as the quality of meal in a restaurant
Outdoor or out-of-home advertising
a flexible, low-cost medium that may take a variety of forms. Examples include billboards, skywriting, giant inflatables, mini billboards in malls, bustop shelters, signs in sports arenas, lighted moving signs in bus terminal and airports, ads painted on cars, trucks, buses, water towers, manhole covers, drinking glass coasters, and even people, called "living advertising"
telemarketing
a form of DM that employs outbound and inbound telephone contacts to sell directly to consumers. telemarketing is a highly effective marketing technique, recent estimates indicate that 5000 US companies will spend over $15 billion on inbound and outbound calls by 2015
chain store
a group of retailers (of one or more brand names) owned and operated by a single organization
Convenience
a key factor influencing the selection of a service provider
Supermarkets
a large, departmentalized, self-service retailer that specializes in food and some nonfood items
Decline Stage
a long-run drop in sales
M-commerce
a mobile device is used to assess, compare, and/or buy products. -Uber-fricitonless payment interface
maturity stage of product life cycle
a period during which sales increase at a decreasing rate
Maturity Stage
a period during which sales increase at an decreasing rate
Promotional Strategy
a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media
Innovation
a product perceived as new by a potential adopter
Personnal Selling
a purchase situation involving a personal, paid for communication between two people in an attempt to influence each other. Traditional methods of personnel selling include a planned presentation to one or more prospective buyers for the purpose of making a sale. Whether it takes place face to face or over the phone, personnel selling attempts to persaude the buyer to accept a point of view. For example, a car salesperson may try to persuade a car model in certain features, such as gas mileage. Once the buyer is somewhat convinced, the salesperson may attempt to elicit some action from the buyer, such as a test drive or purchase.
franchise
a retailer business where the operator is granted a license to operate and sell a product under the brand name of a larger supporting organization
Old adage in business says: nothing happens until...
a sale is made. Without sales, there is no need for accountants, production workers, or even a company president. Sales provide the fuel that keeps the corporate engine humming.
Competitive Advantage
a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition
Quota
a statement of the salesperson's sale goals, usually based on sales volume alone. Individual salespeople are assigned goals in the form of quotas.
Sampling
allows the customer to try a product risk-free. Samples can be directly mailed to the customer, delivered door-to-door, packaged with another product, or demonstrated or distributed at a retail store or service outlet. Sampling at special events is a popular, effective, and high profile distribution method that permits marketers to piggyback onto fun-based consumer activities-- including sporting events, college fests, fairs and festivals, beach events, and chili cook offs.
Infomercial
an alternative to a commercial spot, a 30 minute or long advertisement, which is relatively inexpensive to produce and air.
An __________ quality is a characteristic that can be assessed only after use, such as the quality of a meal in a restaruant
an experience quality
Premium
an extra item offered to the consumer, usually in exchange for some proof that the promoted product has been purchased. Premiums reinforce the consumer's purchase decision, increase consumption, and persuade nonusers to switch brands.
factory outlet
an off price retailer that is owned and operated by a single manufacturer and carries one line of merchandise—it's own
Advertising
any form of impersonal paid communication in which the sponsor or company is identified. Traditional media, such as TV, radio, newspapers, magazines, pay-per-click online advertising, display advertising, direct mail, billboards, and transit advertising (such as on buses and taxis and at bus stops)- are most commonly used to transmit advertisements to consumers. Other options include websites, email, blogs, videos, and interactive games. Marketer's budgets are shifting more to digital options (including social media)
Why are marketing channels valuable?
because they aid producers in creating time, place, and exchange utility for customers, such that products become aligned with their needs. Members of marketing channels are available to undertake these tasks for us
Loyalty Marketing program
builds long-term, mutually beneficial relationships between a company and its key customers.
direct mail
can be highly efficient or highly inefficient retailing method, depending on the quality of the mailing list and the effectiveness of the mailing piece. with direct mail, marketers can precisely market to their customers according to their demographic, geographic, and/or psychographic characteristics
Channel members (also called intermediaries, resellers, and middlemen)
channel members negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving finished goods from manufacturer into the hands of the final consumer
The Promotional mix
combination of promotional tools-- advertising, public relations, sales promotion, personal selling, and social media. The proper promotional mix is the one that management believes will meet the needs of the target market and fulfill the organization's overall goals.
Wholesaler channel
commonly used for low-cost items that are frequently purchased, such as candy, cigarettes, and magazines
loyalty marketing enables
companies to strategically invest sales promotion dollars in activities designed to capture greater profits from customers already loyal to the product or company.
A new salesperson generally receives instruction in ...
company policies and practices, selling techniques, product knowledge, industry and customer characteristics, and non selling duties such as: filling out sales and market information reports and using a sales automation computer program.
discount stores
compete on the basis of low prices, high turnover, and high volume
self service technologies
comprise a form of automatic vending where services are the primary focus -atms, pay at the pump gas stations, and movie ticket kiosks allows customers to make purchases that once required assistance from a company employee
Sales Promotion
consists of all marketing activities that stimulate consumer purchasing and dealer effectiveness. Sales promotion is generally a short-run tool used to stimulate immediate increases in demand. Sales promotion can be aimed at end consumers, trade customers, or a company's employees. Sales promotions include free samples, contests, premiums, trade shows, vacation giveaways, and coupons. it also includes experiential marketing wherby marketers create events that enable customers to connect with brands
With sales promotion, marketers know the precise number of....
coupons redeemed or the number of contest entries receieved
Some revenue is better than none, which has prompted hotels to offer....
deep discounts on weekends during the off season
Information processing
describes services that use technology or brainpower directed at a customer's assets Examples: insurance and consulting Turbotax
Newer tactics to achieve competitive advantage
digital paid media, social media, and influencer marketing
Google's brand value was built using...
digital platforms
many service firms have to use direct...
direct distribution or franchising. Examples include legal, medical, accounting and personal-care services.
Direct Retailing
direct retailing representatives sell products door to door, in offices, or at in-home sale parties. Companies like Avon, Mary Kay, and the pAmpered chef have used this approach for years
interpersonal communication
direct, face-to-face communication between two or more people. When communicating face to face, people see the other persons reaction and can respond almost immediately.
online retailing (e-tailing)
enables a customer to shop over the internet and have items delivered directly to her door. Global online shopping accounts for more than $1.3 trillion in sales and is expected to reach $2.5 trillion by 2018.
nonstore retailing
enables customers to shop without visiting a physical store location. non store retailing adds a level of convenience for customers who wish to shop from their current locations. Due to broader changes in culture and society, nonstore retailing is currently growing faster than in store
nonstore retailing
enables customers to shop without visiting a physical store location. non store retailing adds a level of convenience for customers who wish to shop from their current locations. Due to broader changes in culture and society, nonstore retailing is currently growing faster than in store -automatic vending, direct retailing, direct marketing and internet retailing (or e tailing)
automatic vending
entails the use of machines to offer goods for sale -vending machines today sell DVDs, digital cameras, perfume, and even ice cream. a key aspect of their continued success is the proliferation of cashless payment systems in response to consumers diminishing preference for carrying cash.
Apple's salespeople are trained not only on Apple's products, but on proper...
etiquette for interacting with customers
Supercenters
extend the full-line concept to include groceries and a variety of services such as pharmacies, dry cleaning, hair salons, optical shops, and restaurants For target, customers are drawn in by food but end up purchasing other items from the full line discount stock
Second pricing challenge of service
for services that are composed of multiple elements, the issue is whether pricing should be based on a "bundle" of elements or whether each element should be priced separately. A bundled price may be preferable when consumers dislike having to pay "extra" for every part of the service (example: paying extra for food or bag on airplane)
originates the trade name, product, methods of operation, and so on
franchisor
The most effective type of online sales promotions are....
free merchandise, sweepstakes, free shipping with purchases, and coupons.
92% trust recommendations from their __________ and ________ more than any other form of advertising
friends, family
Sales departments are often organized by
geographic regions, product lines, marketing functions performed (such as account development or account maintenance), markets, industries, individual clients, or accounts.
Promotion of convenience product often requires...
heavy consumer sampling and couponing
Performance information
helps the sales manager monitor a saleperson's progress through the sales cycle and pinpoint where breakdowns might be occurring.
Unique features of a company with a competitive advantage
high product quality, rapid delivery, low prices, excellent service, or a feature not offered by the competition
The rate of decline is governed by ....
how rapidly consumer tastes change or substitute products are adopted
Product Category
includes all brands that satisfy a particular type of need, such as shaving products, passenger automobiles, or soft drinks
Product category
includes all brands that satisfy a particular type of need, such as shaving products, passenger automobiles, or soft drinks
Supply chain
includes all of the companies involved in the upstream and downstream flow of products, services, finances, and information, extending from initial suppliers (the point of origin) to the ultimate customer (the point of consumption)
Unmeasured Media spending
includes direct marketing, promotions, co-op, coupons, product placement, and event marketing.
Measured Media spending
includes network and cable TV, newspapers, magazines, radio, outdoor, and Internet.
Online advertising
includes search engine marketing (pay-per-click ads like Google AdWords), display advertising (banner ads, video ads), social media advertising (Facebook ads), e-mail marketing, and mobile marketing (includes mobile advertising and SMS).
Direct Marketing
includes techniques used to elicit purchases from consumers homes, offices, and other convenient locations. -common DM techniques include telemarketing, direct mail, and mail catalogs
What form of retailer? owned by a person or group and is not operated as part of a larger network. Around the world, most retailers are independent, with each owner operating a singular store within a local community.
independent retailer
Retailer ownership takes 3 forms:
independently owned, part of a chain, or a franchise outlet
Inform
informative promotion seeks to convert an existing need into a want or to stimulate interest in a new product -generally more prevalent during the early stages of the product life cycle. people typically will not buy a product or service or support a nonprofit organization until they know its purpose and it's benefits to them. -informative messages are important for promoting complex and technical products such as automobiles, computers, and investment services.
Channel members are also known as
intermediaries, resellers, and middlemen
Mass Communication
involves communicating a concept or message to large audiences. A great number of marketing communications are directed to consumers as a whole, usually through a mass medium such as television or newspapers.
independent retailer
is owned by a person or group and is not operated by a larger network. around the world, most retailers are independent, with each owner operating a singular store within a local community
Public Relations
is the marketing function that evaluates public attitude, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance.
Innovation is a product perceived as new by a potential adopter. It really does not matter whether the product is "new to the world" or some other category of a new product. If it is new to a potential adopter,
it is an innovation in this context.
One of the primary benefits of advertising
its ability to communicate to a large number of people at one time
One of the primary benefits of Advertising
its ability to communicate to a large number of people at one time.
The PLC (product life cycle) is a biological metaphor that traces the stages of a product's acceptance, from
its introduction (birth) to its decline (death)
Popularized by the airline industry (frequent flyer programs)
loyalty marketing
Popular Internet Sites and search engines generally sell advertising space to ....
marketers to promote their goods and services
Many household appliances, durable goods and electronics, and many specialty products are at the ____________ stage of the PLC
maturity
How are messages about the organization communicated to customers in intangible services?
messages are communicated through elements such as decor, the clutter or neatness of service areas, and the staff's manner and dress
microblog
Advertainment
mini movies that promote a product and are shown online
The fastest growing platform for Internet advertising is the...
mobile space
Retailer channel
most common when the retailer is large and can buy in large quantities from the manufacturer. Examples: Walmart, Sears, and car dealers
The best reason of all to offer rebates is..
most consumers never bother to redeem them, only 40% of consumers eligible for rebates collect them.
4/5 U.S. consumers report telling people around them about ___________ (positive/negative) customer service experiences
negative
42% of consumers share customer service experiences of social media, roughly half of which is...
negative!
Alternative Media
new media vehicles: shopping carts in grocery stores, computer screen savers, interactive kiosks in department stores, advertisements run before movies at the cinema, posters on bathroom, and advertainments-- mini movies that promote a product and are shown online
Nontraditional channels
non-physical channels facilitate the unique market access of products and services. -include approaches such as mail order television or video channels, or infomercials. -may limit a brand's coverage, but also can give a producer a niche market a way to gain market access and customer attention without having to establish physical channel intermediaries and can also provide another sales avenue for larger firms
Possession processing
occurs when the service is directed at customer's physical possessions. Examples: lawn care, dry cleaning, and veterinary services Ubereats, pizzaa, doggy daycare
Specialty discount stores
offer a nearly complete selection of merchandise within a single category, and use self service, discount prices, high volume and high turnover to their advantage -
Product Life Cycle (PLC)
one of the most familiar concepts in marketing, a biological metaphor that traces the stages of a product's acceptance, from its introduction (birth) to its decline (death). A product progresses through 4 major stages: introduction, growth, maturity, and decline
Most major airlines are now using __________ services to sell tickets directly to consumers, which result in _______ distribution cost for the airlines
online services, lower
Merchant wholesalers
organizations that facilitate the movement of products and services from the manufacturer to producers, resellers, governments, institutions, and retailers. All merchant wholesalers take title (ownership) to the goods they sell, and most of them operate one or more warehouses where they receive finished goods, store them, and later reship them to retailers, manufacturers, and institutional clients
franchisor
originates the trade name, product, methods of operation
All merchant wholesalers take ___________ to the goods they sell
ownership
Digital Channels
pathways for moving products and information toward customers such that they can be sent and/or received with electronic devices, such as computer, smartphones, tablets, or video game consoles.
franchisee
pays the franchisor for the right to use its name, product, and business methods, and takes advantage of the franchisor's brand equity and operational expertise
Which two broad categories of things get processed in service organizations?
people and objects
In order for companies to successfully sell products or services using a sales force, they must be very effective at...
personal selling, sales management, customer relationship management, and technology, all of which play critical roles in building strong long-term relationships with customers.
Online audio and video braodcasts
podcasts
Drugstores
primarily provide pharmacy related products and services
Direct channel
producers use a direct channel to sell directly to consumers in order to keep purchase prices low. Examples: Direct marketing activities--including telemarketing, mail order and catalog shopping, and forms of electronic retailing such as online shopping, and shop-at-home television networks. no intermediaries
Fad Items
products that move through the cycle in weeks. Typically characterized by a sudden and unpredictable spike in sales followed by an abrupt decline. Examples of fad items: Silly bands, Beanie Babies, and Crocs
restaurants
provide both tangible products food and drink, and valuable services, food preparation and presentation -also speciality retailers concentrate their menu offerings on a distinctive type of cuisine—for example olive garden and starbucks
Publicity
public information about a company, product, service, or issue appearing in the mass media as a news item. Social media sites like Twitter can provide large amounts of publicity quickly.
Mental stimulus processing
refers to services directed at people's minds examples: theater performances and education -Classes
Perishability
refers to the inability of services to be stored, warehoused, or inventoried Example: an empty hotel room or airplane seat produces no revenue that day. The revenue is lost.
Search engines generate nearly half of all Internet ad revenue because of
relative low cost and high targetability
retailing
represents all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non business use.
The introductory stage
represents the full-scale launch of a new product into the marketplace
convenience store
resembles a miniature supermarket but carries a much more limited line of high-turnover convenience goods. these self service stores are typically located near residential areas and offer exactly what their name implies: convenient locations, long hours, and fast service in exchange for premium prices
Frequent buyer program
rewards loyal consumers for making multiple purchases. The objective of loyalty marketing programs is to build long-term, mutually beneficial relationships between a company and its key customers.
Although a compensation-based plan motivates a salesperson to sell, sometimes it is not enough to produce the volume of sales or the profit margin required by sales management. Therefore,
sales managers offer rewards or incentives, such as recognition at ceremonies, plaques, or monetary-based rewards such as vacations, merchandise, pay raises, and cash bonuses.
All business people are _______ people
sales people. During a job search, applicants must "sell" themselves to prospective employers in an interview.
warehouse club
sells a limited selection of brand name appliances, household items and groceries. these are sold in bulk from warehouse outlets on a cash and carry basis to members only. -Sams Club, Costco and BJS
The most successful franchises are increasingly...
services retailers
Rebate
similar to a coupon in that a rebate offers the purchaser a price reduction; however because the purchaser must mail in a rebate form and usually some proof of purchase, the reward is not as immediate.
shop at home television networks
such as HSN and QVC product television shows that display merchandise to home viewers. Viewers can phone in their orders directly on toll free lines and shop with their credit cards
Department stores
such as J.c. penney and macy's carry a wide range of products and speciality goods, including apparel cosmetics housewares electronics and sometimes furniture
Off-Price retailers
such as TJ Maxx, Ross, and Marshall's sell at prices 25 percent or more below traditional department store prices because they buy inventory with cash and they don't require return privileges.
category killer
such as best buy is a speciality discount store that heavily dominates its narrow merchandise segment
full line discount stores
such as walmart offer consumers very limited service and carry a vast assortment of well known, nationally branded goods such as houseware , toys, automotive parts, hardware, sporting goods, garden items and clothing
People processing
takes place when the service is directed at a customer example: transportation services and health care uber or lyft
The Service-oriented industries contributing to much of this output include...
technology, financial services, health care, and retail
Examples of Direct Marketing activities
telemarketing, mail order and catalog shopping, and forms of electronic retailing such as online shopping and shop-at-home television networks
The most-used form of direct distribution
the Internet
A longstanding example of the use of premiums is
the McDonald's Happy Meal, which rewards children with a small toy.
Integrated Marketing Communications
the careful coordination of all promotional messages: traditonal advertising, direct marketing, social media, interactive, public relations, sales promotion, personnel selling, event marketing, and other communications, for a product or service to assure the consistency of messages at every contact point where a company meets the consumer.
Medium
the channel used to convey a message to a target market
Most major retailers use trained salespeople to enhance
the customer experience
The introductory stage of the PLC represents...
the full-scale launch of product into the marketplace. Examples of products that have recently entered the PLC: computer databases for personal use, room-deodorizing, air-conditioning filters, and wind-powered home electric generators.
Supply chain management
the goal of supply chain management is to coordinate and integrate all of the activities performed by the supply chain members into a seamless process, from the source to the point of consumption, ultimately giving supply chain managers "total visibility and control" of the materials, processes, money, and finished products both inside and outside the company they work for
Intagibility
the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed.
Inseparability
the inability of the production and consumption of a service to be separated; the consumers must be present during the production example: haircuts or surgery
Personal selling often works better than other forms of promotion given certain customer and product characteristics. Personal selling becomes more important as....
the number of potential customers decreases, as the complexity of the product increases, and as the value of the product grows.
Diffusion
the process by which the adoption of an innovation spreads
Service
the result of applying human or mechanical effort to people or objects
One of the most significant trends on concern to tv advertising is...
the rise in popularity of digital video recorders (DVRs) and on-demand viewing. For every hour of television programming, an average of 20 minutes is dedicated to nonprogram material (ads, public service announcements, and network promotions) So the popularity of DVRs among ad-weary viewers is hardly suprising. Like marketers and advertisers, networks are also highly concerned about ad skipping.
Media planning
the series of decisions advertisers make regarding the selection and use of media, enabling the marketer to optimally and cost-effectively communicate the message to the target audience. Specifically, advertisers must determine which types of media will best communicate the benefits of their product or service to the target audience and when and for how long the advertisement will run.
Heterogeneity
the variability of the inputs and outputs of services. which causes services to tend to be less standardized and uniform than goods Example: physicians in a group practice differ within each group in their technical and interpersonal skills
Retailers
those who sell directly to consumers as their primary function. A critical role fulfilled by retailers within the marketing channel is that they provide contact efficiency for consumers. Retailers simplify distribution by reducing the number of transactions required by consumers, and by making an assortment of goods available in one location
What is the goal of supply chain management?
to coordinate and integrate all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, giving supply chain managers "total visibility and control" of the materials, processes, money, and finished products both inside and outside the company they work for
used goods retailer
turns customers into suppliers:pre owned items bought back from customers are resold to different customers. used goods retailers can either be brick and mortar locations (such as goodwill stores) or electronic marketplaces (such as ebay)
Premiums can also include more product for the regular price, such as
two-for-the price of one bonus packs or packages that include more of the product.
Speciality stores
typically carry a deeper but narrower assortment of merchandise within a single category of interest children's store william sonoma footlocker
New products cannot establish themselves against more mature product unless...?
unless potential buyers are aware of them, value their benefits, and understand their positioning in the marketplace
Reminding
used to keep the product and brand name in the public's mind. This type of promotion prevails during the maturity stage of the life cycle. It's purpose is simply to trigger a memory. Colgate toothpaste and other consumer products often use reminder promotion
Gray marketing channels
used to sell stolen or counterfeited products, which could detract from the profitability of the primary and secondary channels controlled by the business. Example: counterfeit products such as North Face outwear, Rolex watches, and Prada handbags can be very difficult to distinguish from the real thing -These counterfeit products provides unintended competition for the producer when such products are distributed through unauthorized intermediaries
Informing: After Google unveiled the Google Glass wearable computer and display, it released a series of commercials showing...
various practical uses for the device
Mary Kay Cosmetics offers a unique type of incentive where salespeople can earn the use of different types of....
vehicles. From a lowly Ford Fiesta all the way up to the coveted pink Mary Kay Cadillac. To qualify for these vehicles, salespeople must reach certain sales quotas.
Youtube, Twitch, Periscope, and Vine
video platforms
50% of purchase decisions are influenced by ....
word-of-mouth
"Blind Loyalty"
60% of iPhone users report they would switch to Apple's latest iPhone without considering any other options
Redesigning a supply chain can do more than just improve the bottom line. What company estimated that if it moved 10% of its truck-transported inventory to rail, it could both create more than $1 billion in savings and significantly reduce its overall carbon emissions.
Campbell Soup Company
What form of retailer? A group of retailers (of one or more brand names) and operated by a single organization. Under this form of ownership, a home office for the entire chain handles retail buying, creates unified operating, marketing, and other administrative policies, and works to ensure consistency across different locations. The Gap and Starbucks are examples
Chain Store
Landline telephone service is an example of a product in the __________ stage in the PLC. Nearly 40% of U.S. homes do not have a landline, which represents a continued steady increase since 2010. Ppl abandon landlines to go wireless and households are replacing landlines with Internet phones.
Decline
A long run drop in sales signals the beginning of which stage of the PLC?
Decline Stage
The Top 25 largest U.S. advertisers spend more than $53 billion each year. The largest advertiser is...
Procter & Gamble is the largest advertiser, spending almost $4.7 billion annually on its host of brands.
Agent/Broker channel
Producer > Agents/Brokers > Retailers > Consumers
Marketing Channel Chart: Direct Channel
Producer > Consumers
Marketing Channel Chart: Retailer Channel
Producer > Retailers > Consumers
Marketing Channel Chart: WholeSaler Channel
Producer > wholesalers > retailers > consumers
Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response
Promotion
A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media
Promotional Strategy
What type of promotional mix is this? -the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance
Public Relations
Colgate toothpaste often uses this type of promotion
Reminder
What task of promotion is this? -used to keep the product and brand name in the public's mind -this type of promotion prevails during the maturity stage of the life cycle -its purpose is simply to trigger a memry
Reminding
What type of marketing channel is this: most common when the retailer is large and can buy in large quantities directly from the manufacturer. Examples include Walmart, Sears, and car dealers
Retailer channel
Firms in the channel that sell directly to consumers as their primary function.
Retailers
represents all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
Retailing