BUAD332 EXAM 3

advertising is used by:

-business firms -nonprofit organizations -professionals -social agencies -government

factors changing the face of marketing communications:

-changes in technology have created new media for interactions -shift away from mass marketing -consumers better informed/ more communications empowered

Retailers are classified based on:

-the amount of service they offer -the breadth and depth of product lines -the relative prices charged -how they are organized

what is a distribution channel

A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user

__________ performs any or all of the functions required to get a client's product to market.

A third-party logistics provider

Full-service retailers

Carry more specialty goods Assist customers in every phase of the shopping process (car dealership)

__________ is the fourth step in value-based pricing.

Designing products to deliver the desired value at a target price

__________ is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

Disintermediation

Why advertise online?

Go where the audience is Communicate detailed information Target specific audiences (Google, Facebook) Measure results Engage through interactivity

__________ is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system

Integrated logistics management

__________ only offer specific services, like cash and carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order or web wholesalers.

Limited-service wholesalers

option-product pricing

Pricing optional or accessory products sold with the main product. For example: added memory on a computer

Self-service retailers

Serve customers who are willing to perform their own locate-compare-select process (piggly wiggly)

horizontal marketing system

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

A(n) __________ coordinates successive stages of production and distribution through the size and power of one of the parties.

administered vertical marketing system

The __________ is setting the promotion budget at the level management thinks the company can afford

affordable method

__________ is the sales step in which a salesperson meets the customer for the first time.

approach

mood or image style

builds a mood or image around the product or service, such as beauty, love, intrigue, or serenity.

__________ is setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console.

captive-product pricing

Integrated Marketing Communications (IMC)

carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

rapid growth of sales promotion has been achieved because:

companies face more competition

A __________ is a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods.

convenience store

A(n) __________ is a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

conventional distribution channel

Brand content management

creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.

the goal of the sales force =

customer satisfaction + company profit

__________ is based on a buyer's perceptions of value rather than on the seller's cost.

customer value-based pricing

objective-and-task method

developing the promotion budget by 1) defining specific promotion objectives, 2) determining the tasks needed to achieve these objectives, and 3) estimating the costs of performing these tasks

A(n) __________ is a marketing channel that has no intermediary level.

direct marketing channel

The __________ creates an imaginary situation around the product or its use.

fantasy style

Costs Determine _______ and Customers determine ________

floor; ceiling

Reminder advertising

is important for mature products; it helps to maintain customer relationships and keep consumers thinking about the product.

percentage of sales method

is setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

competitive-party method

is setting the promotion budget to match competitors' outlays

Informative advertising

is used heavily when introducing a new product category. In this case, the objective is to build primary demand.

__________ is the sales step in which a salesperson tells the "value story" to the buyer, showing how the company's offer solves the customer's problems.

presentation

Personal selling

presentations by the firm's sales force for the purpose of making sales and building customer relationships.

__________ is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.

price

What tasks do manufacturers want performed in the channel of distribution?

product availability promotional effort customer service market information

__________ is an activity of public relations that involves the publicizing of specific products.

product publicity

A __________ is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

retailer cooperative

__________ is all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

retailing

__________ refers to analyzing, planning, implementing, and controlling sales force activities.

sales force management

________ is the short-term incentives used to encourage the purchase or sales of a product or a service.

sales promotion

Marketing channel management is _____.

selecting, managing, and motivating individual channel members and evaluating their performance over time

A demand curve __________.

shows the number of units the market will buy in a given time period, at different prices that might be charged

intensive distribution

stocking the product in as many outlets as possible

A __________ is a store that offers a large assortment of routinely purchased food products, nonfood items, and services.

superstore

__________ is using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts.

team selling

why are companies moving online?

thats where the eyeballs are

Preapproach

the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.

why are distribution channels used?

the use of intermediaries results from their greater efficiency in making goods available to target markets

a salesperson builds long term relationships built upon ______

trust

A __________ is a wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.

voluntary chain

vertical marketing system

a channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate

franchise organization

a contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (independent business people who buy the right to own and operate one or more business units in the franchise system)

supermarket

a large, low-cost, low-margin, high-volume self-service store that carries a wide variety of grocery and household products.

indirect marketing channel

a marketing channel containing one or more intermediary levels

pull strategy

a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel

__________ is a promotion strategy that calls for using the sales force and trade promotion to move the product through channels.

a push strategy

department store

a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers.

__________ represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building.

a salesperson

sales quota

a standard that states the amount a salesperson should sell and how sales should be divided among the company's products

the idea of sales promotion is to:

generate immediate sales

exclusive distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories.

__________ is offering just the right combination of quality and good service at a fair price.

good-value pricing

__________ is the sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying.

handling objections

If I don't own the channel, and I don't have contracts with my channel partners, how do I get them to cooperate?

incentives

__________ sell to manufacturers rather than to retailers.

industrial distributors

A(n) __________ is salespeople who conduct business from their offices via telephone, the Internet, or visits from prospective buyers.

inside sales force

press relations

is a function in which companies create and place newsworthy information in the new media to attract attention to a person, product, or service

__________ is building and maintaining relationships with legislators and government officials to influence legislation and regulation.

lobbying

__________ is setting a low price for a new product in order to attract a large number of buyers and a large market share.

market-penetration pricing

price is NOT JUST ________, think of money as a _________

money; sacrifice

The purpose of _______ is to build selective demand.

persuasive advertising

Full-service wholesalers __________.

provide a complete line of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance

__________ is building and maintaining national or local community relationships.

public affairs

__________ is building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

public relations

price is important when customers can't judge _____

quality

__________ is the use of more than one but fewer than all of the intermediaries who are willing carry the company's products.

selective distribution

wholesale merchants

sell primarily to retailers and provide a full range of services

Market-skimming pricing

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.

captive-product pricing

setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console

lifestyle style

shows how a product fits in with a particular lifestyle.

slice of life style

shows one or more typical people using the product in a normal setting.

corporate chain

two or more outlets that are commonly owned and controlled/ appear in all types of retailing but they are strongest in department stores, discount stores, food stores, drugstores, and restaurants

multichannel distribution system

uses a single firm to set up two or more marketing channels to reach one or more customer segments

__________ is attaching features and services to differentiate a company's offers and charging higher prices.

value-added pricing