Ch.13, Ch 14, Ch. 15, Ch.16

Supply chain management

- A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

Personnel

- CUSTOMER SERVICE, PERSONAL SELLING −Sales personnel provide their customers with the amount of service prescribed by the retail strategy of the store. −Retail salespeople must be able to persuade customers that what they are selling is what the customer needs. −Providing great customer service is one of the most challenging elements in the retail mix because customer expectations for service vary greatly. - TRAINING

The Key Processes of Supply Chain Management (How are we going to go in and integrate?)

- Create a set of business processes. For Example: How are we actually going to perform these activities? What's going to be our method of action?

Presentation

- LAYOUT AND ATMOSPHERE −The main element of a store's presentation is its atmosphere, the overall impression conveyed by a store's physical layout, decor, and surroundings. §The goal is to use all of the store's space effectively. - In addition to making shopping easy and convenient for the customer, an effective layout influences traffic patterns and purchasing behavior.

Defining A Target Market

- Specific customers you've chosen to market to based on your market research. −Successful retailing has always been based on knowing the customers' desires and preferences, which can change over time. −Target markets in retailing are often defined by demographics, geographic boundaries, and psychographics. −Retailing chains flounder when management loses sight of the customers the stores should be serving or is unable to migrate customers to new and different products.

Product (Retailing Mix)

- The first element in the retailing mix is the product offering, also called the "product assortment" or "merchandise mix." - Developing a product offering is essentially a question of the width and depth of the product assortment, which is the most important factor to consumers. - After determining what products will satisfy target customers' desires, retailers must find sources of supply, evaluate the products, and negotiate prices.

•Managing Unfavorable Publicity Crisis management

- a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event

Unique selling proposition

- a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Ex: Sketchers shoes have memory foam good for feet

Product advertising

- a form of advertising that touts the benefits of a specific good or service

Outsourcing (contract logistics or contracting)

- a manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing

Sales and operations planning (S & O P)

- a method companies use to align production with demand by merging tactical and strategic planning methods across functional areas of the business

Advertising response function

- a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns §A certain minimum level of exposure is needed to measurably affect purchase habits.

Advertising (3)

- impersonal, one-way mass communication about a product or organization that is paid for by a marketer −One of the primary benefits of advertising is its ability to communicate to large numbers of potential customers. −Cost per contact is typically very low, but total cost is usually very high. (because we are going after a larger group of people)

Back stock

- inventory held in reserve for potential future sale in a retailer's storeroom or stockroom

Advergaming

- placing advertising messages in web-based, mobile, console, or handheld video games to advertise or promote a product, service, organization, or issue −Why is this importatnt? Six billion mobile phone users worldwide offers significant growth potential

Supply chain

- the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

14-3 The Rise of Nonstore Retailing (6)

-Broad changes in culture and society, especially technological advancements, have led to non-store retailing, which is currently growing faster than in-store retailing. 1. Automatic Vending 2. Self-Service Technologies 3. Direct Retailing 4. Shop at Home Television Network 5. Online Retailing (e-tailing) 6. Sharing Economy −Automatic vending - the use of machines to offer goods for sale −Self-service technologies (S S T) - technological interfaces that allow customers to provide themselves with products and/or services without the intervention of a service employee. −Direct retailing - the selling of products by representatives who work door to door, office to office, or at home sales parties −Shop-at-home television network - a specialized form of direct response marketing whereby television shows display merchandise, with the retail price, to home viewers −Online retailing (e-tailing) - a type of shopping available to consumers with personal computers and access to the Internet IF MOBILE MENTIONED - IT IS M COMMERCE −Sharing economy - the way connected consumers exchange goods and services with each other through a digital marketplace +Consumers are also increasingly using social media applications as shopping platforms, known as social shopping.

Exam Freebie For Retail channel omnification the online/physical stores are going to have a SINGLE SYSTEM

For Retail channel omnification the online/physical stores are going to have a SINGLE SYSTEM they are going to use for delivering on customer demand. They are going to be working together to review demand.

Exam Freebie #1

Having A long supply chain that is unnecessarily complex is not a good thing. You want a supply chain to be as short and efficient (logistically) as possible.

•Advertising is a popular form of promotion, especially for consumer packaged goods and services. - Typically, promotional spending is divided into:

Measured media ad spending Unmeasured media spending

•Today, promotional tactics can be categorized according to media type:

Paid media - a category of promotional tactics based on the traditional advertising model, whereby a brand pays for media space - most media on social media, commercials, etc Earned media −a category of promotional tactics based on a public relations or publicity model that gets customers talking about products or services. -ex: told u loved using duolingo app Owned Media −a new category of promotional tactics based on brands becoming publishers of their own content in order to maximize the brands' value to customers Ex: It doesn't cost them anything to post it on their own page - From owned and paid media you should be getting earned media

What is the fastest-growing part of our economy? exam freebie

Service Sector

Order fulfillment process

a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time

Social shopping

allows multiple retailers to sell products to customers through social media sites.

Supply chain agility

an operational strategy focused on creating inventory velocity and operational flexibility simultaneously in the supply chain

Business processes

bundles of interconnected activities that stretch across firms in the supply chain

Interpersonal communication

direct, face-to-face communication between two or more people −When communicating face-to-face, people see the other person's reaction and can respond almost immediately.

- Exam Freebie #2: What does a typical meeting look like if you are in sales and operations planning? (S&OP)

it will include procurement, production, and logistics work, together with marketing and sales.

The Retailing Mix

product, place, promotion, price, presentation (personality of your store and brand, layout and atmosphere), personnel (personality of your store and brand)(want to have good training) Ex: Hollister, American Social

Gross margin

the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted

−Media mix -

the combination of media to be used for a promotional campaign

mass communication

the communication of a concept or message to large audiences −When a company advertises, it generally does not personally know the people with whom it is trying to communicate. −Additionally, the company often cannot respond immediately to consumers' reactions to its messages. −Clutter from competitors' messages or other distractions in the environment can reduce the effectiveness of mass-communications efforts.

Order cycle time

the time delay between the placement of a customer's order and the customer's receipt of that order

Digitalization

the use of digital technologies to change a business model and provide new revenue or value

•The Effects of Advertising on Consumers −Advertising may:

§Affect peoples' daily lives by informing them about products and services and influencing their attitudes, beliefs, and ultimately their purchases §Succeed in transforming a person's negative attitude toward a product into a positive one §Reinforce positive attitudes toward brands, which leads to loyal customers and higher market share §Affect the way consumers rank a brand's attributes - Exam Freebies Research shows humorous advertising is most effective when used to shape attitudes when customers already have a positive image of an advertised brand. ****** freebie on exam

−Media mix decisions are typically based on several factors: (5)

§Cost per contact (cost per thousand [CPM]) §Cost per click §Reach &Frequency &Audience Selectivity

Ownership Arrangement Retail ownership takes one of three forms:

§Independent retailer - a retailer owned by a single person or partnership and not operated as part of a larger retail institution §Chain store - a store that is part of a group of the same stores owned and operated by a single organization §Franchise - a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee

•Levels of Distribution Intensity −Organizations have three options:

§Intensive distribution - a form of distribution aimed at having a product available in every outlet where target customers might want to buy it §Selective distribution - a form of distribution achieved by screening dealers to eliminate all but a few in a single area §Exclusive distribution - distribution to only one or a few dealers within a given area Ex: Ferrari

Channel Functions Performed by Intermediaries; Intermediaries in marketing channels perform three essential functions that enable goods to flow between producer and consumer: (3)

§Transactional functions: involve contacting and communicating with prospective buyers to make them aware of existing products and to explain their features, advantages, and benefits. Ex: Sales §Logistical functions: typically include transportation and storage of assets, as well as their sorting, accumulation, consolidation, and/or allocation for the purpose of conforming to customer requirements. Ex: Storing assets and getting prepped for the consumer §Facilitating functions: include research and financing. Ex: accountants and financial analysts

•Factors Affecting Channel Choice •Market Factors −Among the most important market factors affecting distribution channel choices are market considerations. Specifically, managers should answer the following questions:

§Who are the potential customers? §What do they buy? §Where and when do they buy? §How do they buy? ANSWER: MARKET FACTORS

Sales promotion

• marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer buying and dealer effectiveness −Sales promotion is generally a short-run tool used to stimulate immediate increases in demand. −Examples of traditional types of sales promotion include free samples, contests, premiums, trade shows, vacation giveaways, and coupons. - Newer types of sales promotion include experiential marketing and loyalty programs.

Cost per contact (cost per thousand [C P M])

• the cost of reaching one member of the target market −Enables an advertiser to compare the relative costs of specific media vehicles −Advertisers pick the vehicle with the lowest cost per contact to maximize advertising punch for the money spent

Advertising campaign

•- a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. −Before creative work can begin on an advertising campaign, it is important to determine what goals or objectives the advertising should achieve.

Sales Promotion

•- marketing communication activities other than advertising, personal selling, and public relations, in which 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 •Usually less expensive than advertising and easier to measure because marketers know the precise number of coupons redeemed or the number of contest entries received •Usually has more effect on behavior than on attitudes because it gives the consumer an incentive

Audience selectivity

•- the ability of an advertising medium to reach a precisely defined market −a matter of matching the advertising medium with the product's target market

Cost per click

•- the cost associated with a consumer clicking on a display or banner ad −Marketers pay only for "engaged"*** consumers who opt to click on an ad

Reach

•- the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks - how many people (in your target market) that were exposed to your ad

Internet

•Advertising space for goods and services is widely available on Internet sites and search engines.

14-7 Addressing Retail Product/Services Failures

•All retailers inevitably disappoint a subset of their customers either by design (no retailer can plan to satisfy every customer) or by mistake. •Customers are generally indifferent to the reasons for retailer errors, and their reactions to issues can range widely. •The best retailers treat customer disappointments as opportunities to interact with and improve relations with their customers.

•Contests and Sweepstakes

•Contests and sweepstakes are generally designed to create interest in a good or service and are often used to encourage brand switching. •To increase their effectiveness, sales promotion managers must make certain the award will appeal to the target market.

16-4 Media Decisions in Advertising(1 of 14)

•Creating an ad campaign involves several additional significant decisions: −Medium - the channel used to convey a message to a target market ex: TV, Newspapers, Social Media −Media planning - the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience. •Advertisers use marketing analytics to 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.

•A firm's promotional goals determine the type of advertising it uses: (3)

•Institutional advertising •Product advertising 1. pioneering advertising 2. competitive advertising 3. comparative advertising

Marketing Communication (1 of 10)

•Marketers communicate information about the firm and its products to the target market and various publics through their promotional programs. −Communication - the process by which we exchange or share meaning through a common set of symbols

15-3 The Goals of Promotion (1 of 5)

•Promotion seeks to modify behavior and thoughts in some way. •Promotion can perform one or more of four tasks, sometimes simultaneously: −Inform the target audience −Persuade the target audience −Remind the target audience −Connect with the audience * know how they relate to the product life cycle

14-5 Executing a Retail Marketing Strategy(1 of 12)

•Retail managers develop marketing strategies based on the goals established by stakeholders and company leadership. •Strategic retailing goals* typically focus on increasing total sales, reducing costs of goods sold, and improving financial ratios. •At the store level*, more tactical retailing goals include increased store traffic, higher sales of a specific item, developing a more upscale image, and creating heightened public awareness of the retail operation and its products or services. •After goals are set, key tactical decisions must be made.

14-4 Retail Operations Models (1 of 3)

•The retail formats covered so far are co-aligned with unique operating models that guide the decisions made by their managers. •Off-price retailers deemphasize customer service and product selection in favor of lower prices, achieved through lean inventory management. •Specialty shops with higher-priced products generally adopt a high-service approach that is supported by an agile approach to inventory. −Floor stock −Back stock

Level of Service •The service levels that retailers provide range from full service to self-service. (3)

•The service levels that retailers provide range from full service to self-service. §Full service: alterations, credit, delivery, consulting, liberal return policies, layaway, gift wrapping, and personal shopping Ex: Restoration Hardware §Low service: customer responsible for any information gathering, acquisition, handling, use, and product assembly ex: IKEA §Lowest end: product kiosk or vending machine

Retailer

•a channel intermediary that sells mainly to consumers Ex: Best Buy •The millions of goods and services provided by retailers mirror the diverse needs, wants, and trends of modern society. •The best retailers actually anticipate change and develop new and exciting ways to interact with customers.

Third-party logistics company (3PL)

•a firm that provides functional logistics services to others

Institutional advertising

•a form of advertising designed to enhance a company's image rather than promote a particular product -Institutional, or corporate, advertising is designed to establish, change, or promote the corporation's identity as a whole. The purpose is simply to maintain a favorable attitude toward the advertiser and its goods or services in the minds of consumers.

Competitive advertising

•a form of advertising designed to influence demand for a specific brand •In the growth phase, competitive advertising often focuses less on being informative and more on emotions to: −Show subtle differences between competitive brands −Build recall of a brand name −Create a favorable attitude toward the brand

AIDA concept

•a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action 1.Attention: The advertiser must first gain the attention of the target market because a firm cannot sell something if the market does not know the good or service exists. 2.Interest: The next step is to create interest in the product. 3.Desire: Potential customers may like the concept of a product, but they must then be persuaded that the product is the best option to fulfill their needs and desires. 4.Action: Finally, consumers must be motivated to take action by making a purchase. •Not all consumers progress through these stages in order for every purchase, but most buyers involved in high-involvement purchase situations pass through them on the way to making a purchase.

Marketing channel (channel of distribution)

•a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer -A marketing channel can be viewed as a canal or pipeline through which products, their ownership, communication, financing and payment, and accompanying risk flow to the consumer.

Advertising objective

•a specific communication task that a campaign should accomplish for a specified target audience during a specified period −Once objectives are defined, creative work can begin on the advertising campaign.

Retailing

•all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use

Frequency

•the number of times an individual is exposed to a given message during a specific period

Supply chain integration

•when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer •In modern supply chain systems, integration can be either internal or external to a specific company or, ideally, both.

•Interpersonal Communication −Communication can be divided into two major categories:

− interpersonal communication and mass communication

M-commerce

− the ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services (ENTIRE PURCHASE ONLINE) §Mobile devices are used to assess and compare products.

•Type of Buying Decision

−Advertising and sales promotion are the most productive promotion tools to use for products requiring routine buying decisions as they call attention to the brand or remind the consumer about the brand. −If the buying decision is neither routine nor complex, advertising and public relations help establish awareness for the good or service. −When complex buying decisions are involved, personal selling may be the best means of providing the large amounts of information needed to help consumers reach a decision.

Product Factors (1)

−Complex, customized, and expensive products tend to benefit from shorter and more direct marketing channels. - More standard the product, the longer its distribution channel it can be and the greater number of intermediaries can be involved without driving up costs. - The choice of the channel can change the life of the product. As products become more common and less intimidating to potential users, producers tend to look for alternative channels.(Ex as product enters growth channel they have to look for more alternative channels)

•Content Marketing and Social Media

−Content marketing entails developing valuable content for interested audience members, and then using digital means to pull customers to that informative content. −Social media are promotion tools used to facilitate conversations and create engagement and other interactions among people online.**** −Marketers are now using social media as integral components of their campaigns and as a way to extend the benefits of their use of traditional media.

Digitalization is occurring throughout the sequence of events that make up modern SCM, including: (4)

−Demand sensing and decision making −Digitalized process management −Digitalized distribution −Digitalized product and supply chain integrity/verification

•Alternative Channel Arrangements (6)

−Dual or multiple distributions - the use of two or more channels to distribute the same product to target markets + Ex: Vans and Pacsun, Nike and Dicks Sporting Goods −Nontraditional channels - nonphysical channels that facilitate the unique market access of products and services +Examples: using youtube to reach out to potential customers, eBay −Strategic channel alliance - a cooperative agreement between business firms to use the other's already established distribution channel + Examples: Spotify and Uber, Starbucks and Barnes and Noble

•Postcampaign Evaluation

−Evaluating an advertising campaign can be the most demanding task facing advertisers. −Digital advertising and social media generate more data that enable marketers to better understand how well campaigns work. −Regardless of media used, testing ad effectiveness can be done before and/or after the campaign to identify how the campaign might have been more efficient and what factors contributed to its success.

•Consumer Education

−Firms believe educated consumers are more loyal customers.

•Identifying Product Benefits

−In advertising, the goal is to sell the benefits of the product, not its attributes, because customers buy benefits. −A benefit should answer the consumer's question, "What's in it for me?" −Benefits might include such things as convenience, pleasure, improved health, savings, or relief.

Producer Factors (3)

−In general, producers with large financial, managerial, and marketing resources are better able to perform their own marketing and thus will use more direct channels. MORE RESOURCES = MORE DIRECT CHANNELS −Smaller or weaker firms, on the other hand, must rely on intermediaries to provide these services for them. LESS RESOURCES = LESS DIRECT CHANNELS (MORE INTERMEDIARIES) −Compared to producers with only one or two product lines, producers that sell several products in a related area are able to choose channels that are more direct. Therefore, sales expenses can be spread over more products. MORE PRODUCT LINES IN A RELATED AREA = MORE DIRECT CHANNELS = SALES EXPENSES CAN BE SPREAD OVER MORE PRODUCTS

Informing

−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. §Important for promoting complex and technical products such as automobiles, computers, and investment services

Digitalized Demand Sensing and Decision Making (3)

−Internet of Things (I o T) - a system of interrelated computing devices, mechanical and digital machines, objects, animals, or people that are connected and able to transfer data over a network without overt human effort −Big data - the rapidly collected and difficult-to-process large-scale data sets that have recently emerged and push the limits of current analytical capability −Supply chain analytics - data analyses that support the improved design and management of the supply chain

•Experiential Marketing

−Involves engaging with consumers in a way that enables them to feel the brand—not just read about it −Not new but increasing in recent years

Retailing Decisions For Services •Because service industries are so customer-oriented, service quality is a priority. •Service distribution focuses on four main areas:

−Minimizing customer wait time. −Managing service capacity to meet demand. −Improving service delivery by increasing the times that services are available or adding to customer convenience. −Establishing channel-wide network coherence by standardizing service quality across different geographic regions to maintain brand image (training)

•Available Funds

−Money, or the lack of it, is often the most important factor in determining the promotional mix. −When funds are available to permit a mix of promotional elements, a firm will generally try to optimize its return on promotion dollars while minimizing the cost per contact, or the cost of reaching one member of the target market. −Usually, there is a trade-off among the funds available, the number of people in the target market, the quality of communication needed, and the relative costs of the promotional elements.

Persuading

−Persuasive promotion is designed to stimulate a purchase or an action. §Typically used during the growth stage, when the target market is already aware of how the product can fulfill its wants. §Messaging emphasizes the product's real and perceived competitive advantages §Messaging often appeals to emotional needs §For highly competitive products, the promotional message often encourages brand switching and aims to convert some buyers into loyal users

Reminding

−Reminder promotion is used to keep the product and brand name in the public's mind. §Assumes that the target market has already been persuaded of the merits of the good or service, so used during maturity stage (late majority) §Purpose is to trigger a memory that leads to a purchase

•Promotion

−Retail promotion strategies include advertising, public relations and publicity, and sales promotions. −The goal is to help position the store or website in customers' minds. −One risk associated with store promotions is brand cannibalization, the reduction of sales for one brand as the result of the introduction of a new product or promotion of a current product by another brand. −Local advertising by retailers usually provides specific information about their stores, whereas national retail advertising generally focuses on image.

•Enacting Shopper Marketing

−Shopper marketing is becoming increasingly popular. §Shopper marketing - understanding how one's target consumers behave as shoppers, in different channels and formats, and leveraging this intelligence to generate sales or other positive outcomes §Shopper marketing brings brand managers and account managers together to connect with consumers along the entire path to purchase in any retail setting. §Shopper analytics - searching for and discovering meaningful patterns in shopper data for the purpose of fine-tuning, developing, or changing market offerings

Agile companies:(4)

−Synchronize their activities by sharing supply-and-demand market information −Focus on activities that create a direct customer (perceived) benefits −Partner closely with suppliers and service providers to reduce customer wait times for products −Reduce supply chain complexity through the evaluation and reduction (or elimination) of items customers aren't buying

•Promotional mixes vary a great deal from one product and one industry to the next, depending on several key factors.•Nature of the Product

−The characteristics of the product itself can influence the promotional mix. §Business and consumer products require different types of selling. −The costs and risks associated with a product influence the promotional mix. §As a general rule, as the costs or risks of buying and using a product or service increase, personal selling becomes more important.

•Place

−The choice of physical location is important because: §The retailer is making a large, semipermanent commitment of resources. §The physical location will almost inevitably affect the store's future growth and profitability. −Physical site location begins by choosing an appropriate community relevant to the target market. §Freestanding units are increasing in popularity as brick-and-mortar retailers strive to make their stores more convenient to access, more enticing to shop, and more profitable.

•Connecting

−The focus of social media is to form relationships with customers and potential customers through technological ties. −The goal of forming these relationships is to lead to customer engagement with the products or services, and ultimately to purchases. −Brands are increasingly connecting with their customers in hopes that they become brand advocates who promote the brand through their own social networks. (NOT Associated with a decline)

•Order Fulfillment

−The order fulfillment process involves generating, filling, delivering, and providing on-the-spot service for customer orders. −The best processes reduce order cycle time. -Order Fulfillment Process -Order Cycle Time

price (retailing mix)

−The right price is critical to ensure sales. §Because retail prices are usually based on the cost of the merchandise, an essential part of pricing is efficient and timely buying. §Another pricing strategy is "value-based pricing," which focuses on the value of the product to the customer more than the cost of the product to the supplier. −Price is also a key element in a retail store's positioning strategy. §Higher prices often indicate a level of quality, and lower prices can convey good value.

•Recent and ongoing technological advancements:

−The use of big data analytics, or complex mathematical models based on collected data, to make better product mix decisions −The use of beacons that recognize when a customer is in or near a store and ready to receive a marketing message via email or text −The use of R F I D to track items that customers pick up while shopping to instantly create a promotion for the item in the customer's hand −The use of facial recognition to determine a customer's gender and age group so that appropriate promotions and information can be sent to the customer −The use of conversational artificial intelligence to provide world-class service, complete with recommendations and on-demand customer support

•Current general trends: (2)

−The use of purchase and shopping data to better understand customer wants and needs −The pursuit of new and better ways to entice customers into a store and then to spend more money once there

•Timing Factors

−Timing decisions such as when to release a product in different channels, how long to keep a product on the market, and when to launch new products are critical. §Companies that offer products in multiple channels (such as online and in-store) must decide whether to launch in both channels simultaneously or to launch them sequentially—and if sequentially, in what order. −Companies must decide when to withdraw a product from a particular channel if that channel is no longer providing the expected value.

Price

−Traditional department stores and specialty stores typically charge the full "suggested retail price." §Many consumers are not willing to pay full price anymore, so some retailers have begun using dynamic pricing techniques to make customers believe they are getting a bargain, even if they aren't. −Discounters, factory outlets, and off-price retailers use low prices and discounts to lure shoppers. −Gross margin

Pioneering advertising

−a form of advertising designed to stimulate primary demand for a new product or product category −Pioneering advertising is heavily used during the introductory stage of the product life cycle to inform and create interest among consumers.

Comparative advertising

−a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes −Comparative advertising is often used for products experiencing slow growth or for those entering the marketplace against strong competitors. -****really narrowed down the comparison between you and another company

Promotional strategy

−a plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, sales promotion, and social media

Sponsorship

−a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image §The biggest reason for the increasing use of sponsorships is the difficulty of reaching audiences and differentiating a product from competing brands through the mass media. §Sponsorship issues are quite diverse, but the three most popular are education, health care, and social programs.

Product Placement

−a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product, on the Internet, or at special events §Reinforces brand awareness and creates favorable attitudes.

Personal selling

−a purchase situation involving a personal, paid-for communication between two people in an attempt to influence each other −Traditional methods of personal selling include a planned presentation to one or more prospective buyers for the purpose of making a sale. −More current methods emphasize developing a relationship between a salesperson and a buyer. −Personal selling is increasingly dependent on digital communications. Websites drive customers to businesses where personal selling can close the sale.

Advertising appeal

−a reason for a person to buy a product Ex: Sketchers Running Shoes

Promotion

−communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response - Promotion is a vital part of the marketing mix, informing consumers of a product's benefits and thereby positioning the product in the marketplace.

Floor stock

−inventory displayed for sale to customers

Competitive advantage

−one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors

Publicity

−public information about a company, product, service, or issue appearing in the mass media as a news item

Demand management process

−seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchases −Activities such as collecting customer data, forecasting future demand, and developing activities that smooth out demand help bring available inventory into alignment with customer desires.

Integrated marketing communications

−the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every point at which a company has contact with the consumer - Marketing communications for any product or brand should be integrated across the promotional mix, meaning the message reaching the consumer should be the same regardless of which type of promotion is used. - Timing of promotional activities is coordinated. − Results of each campaign are carefully monitored to improve future use of the promotional mix tools.

Promotional mix

−the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization's overall goals - all of them cost money, time, resources, etc. how? Data and data analytics help determine how marketers distribute funding among their promotional mix tactics. -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.

Public Relations

−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 −PR helps an organization communicate with its stakeholders, including customers, suppliers, stockholders, government officials, employees, and the community in which it operates. −Publicity

Retail channel omnification

−the reduction of multiple retail channel systems into a single, unified system for the purpose of creating efficiencies or saving costs