Marketing Final

New Marketing Communications Model

-Consumers are changing -Marketing strategies are changing -Advances in digital technology

growth of non-store retailing

-Direct -Online -Mobile -Social Media

Choosing Communication Channels and Media

-Personal Communication -Opinion Leaders and Buzz Marketing -Nonpersonal Communication

benefits of cost-plus pricing

-Sellers are certain about costs -Price competition is minimized -Buyers feel it is fair

Identifying the Target Audience

-What will be said -How it will be said -When it will be said -Where it will be said -Who will say it

types of promotion tools

-advertising -sales promotion -personal selling -public relations -direct and digital marketing

Determine the communication objectives

-awareness -knowledge -liking -preference -conviction -purchase

platforms for advertising

-broadcast -print -online -mobile -outdoor

examples of sales promotion

-discounts -coupons -displays -demonstrations

Purpose of personal selling

-engaging customers -making sales -building customer relationships

examples of personal communication

-face to face -phone -mail -texting

personal selling does not

-offer bribes -does not attempt to obtain competitors trade secrets -do not disparage competitors or their products

communication process

-sender -encoding the message -message channel -noise -decoding the message -receiver -feedback

megaretailers include

-superior information systems -buying power -large selection

Steps in Developing Effective Marketing Communication

-target audience -communication objectives -design the message -choose the media -select message source and collect feedback

example of convenience store

7-Eleven

supply chain management

A set of approaches used to integrate their suppliers, manufacturers, warehouses, stores and transportation intermediaries into a seamless operation

designing the message

AIDA model - get attention - hold interest - arouse desire - obtain action

business marketing channels

Channel 1: Producer - Business Customer Channel 2: Producer - business distributor - business customer Channel 3: Producer - Manufacturer's representatives or sales branch - business distributor - business customer

consumer marketing channels

Channel 1: Producer - Consumer Channel 2: Producer - Retailer - Consumer Channel 3: Producer - Wholesaler - Retailer -Consumer

green retailing

Environmentally sustainable practices

sales promotion

Short-term incentives to encourage the purchase or sale of a product or service

example of off-price retailer

TJ Maxx

price

The amount of money exchanged for a good or service

selecting the message source

The message's impact on the target audience is affected by how the audience views the communicator

selective distribution

a form of distribution achieved by screening dealers to eliminate all but a few in any single area

intensive distribution

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

exclusive distribution

a form of distribution that establishes one dealers within a given area

price ceiling

a maximum price that can be charged for a good or service

price floor

a minimum price for a good or service

value delivery network

a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system

supermarkets

a self-service food store with grocery, meat, and produce departments with limited sales of nonfood items

marketing channel (distribution channel)

a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

cost-plus pricing

adding a standard markup to the cost of the product

retailing

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

factory outlets

an off-price retailing operation that is owned and operated by a manufacturer

advertising

any paid form of non-personal presentation and promotion

full service retailers

assist customers in every phase of the shopping process

emotional appeal

attempt to stir up positive or negative emotions to motivate a purchase

public relations

building good relations with the company's various publics

retailers

businesses whose sales come primarily from retailing

Integrated Marketing Communications

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

department stores

carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise.

high-low pricing

charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items

specialty stores

concentrate on a limited number of complementary merchandise categories and provide a high level of service

example of warehouse clubs

costco

fixed costs

costs that do not vary with production or sales level

omni-channel retailing

creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

content marketing

creating, inspiring, and sharing brand messages and conversations with consumers

buzz marketing

cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities

moral appeal

directed at the audience's sense of right and proper

category killers

discount stores that offer a narrow but deep assortment of merchandise

direct and digital marketing

engaging directly with carefully targeted individual consumers and customer communities

personal selling follows rules of

fair competition

upstream partners

firms that supply raw materials, components, parts, information, finances, and expertise needed to create a product or service

shopper marketing

focusing on turning shoppers into buyers as they approach the point of sale

majority of convenience stores sales

gasoline and cigarettes

example of category killer

home depot

message structure and format

how to say it

downstream partners

include the marketing channels or distribution channels that look toward the customer

personal communication

involves two or more people communicating directly with each other

warehouse clubs

large retailers that offer a limited and irregular assortment of food and general merchandise, little service, and low prices to the general public and small businesses

supercenter

large stores that combine a supermarket with a full-line discount store

price too high might signal

low value

example of department store

macys

non personal communication

media that carry messages without personal contact or feedback

retail convergence

merging of consumers, products, prices, and retailers

full-line discount stores

offer a broad variety of merchandise, limited service, and low prices

off-price retailers

offer an inconsistent assortment of brand name merchandise at low prices

good-value pricing

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

opinion leaders

people whose opinions are sought by others

price too low many signal

poor quality

what is one of the most important factors in purchase decision

price

what is the only marketing mix element that generates revenue

price

pull strategy

producers to consumers to retailers and consumers in order to create demand

push strategy

producers to retailers and wholesalers to consumers

convenience stores

provide a limited variety and assortment of merchandise at a convenient location in a small store with speedy checkout

self-service retailers

provide a minimal level of service and contact between customers and employees

limited service retailers

provide more sales assistance because they carry more shopping goods about which customers need information

example of supermarket

publix

rational appeal

relates to the audience's self-interest

discount stores

retailers that sell a variety of everyday goods below the market price by keeping their overhead low

competition based pricing

setting prices based on competitors' strategies, prices, costs, and market offerings

cost based pricing

setting prices based on the costs of producing, distributing, and selling the product

everyday low pricing (EDLP)

setting prices lower than competitors and then not having any special sales

what is the fastest growing retail category

supercenters

basic model of supply chain

suppliers to manufacturers to distributors to retailers to customers

example of full-line discount store

target

Collecting Feedback

the communicator understanding the effect on the target audience by measuring behavior resulting from the content

personal selling

the personal interaction by the firm's sales force

showrooming

the practice of checking out merchandise in stores, then buying it online.

webrooming

the practice of first checking out merchandise online, then buying it in traditional stores.

the rise of megaretailers

the rise of mass merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions

the promotion mix

the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

total costs

the sum of the fixed and variable costs for any given level of production

customer value based pricing

uses buyers' perceptions of value as the key to pricing

variable costs

vary directly with the level of production

example of specialty store

vitamin shoppe

example of supercenter

walmart

message content

what to say