MKTG 3100 Exam 2

The AIDA Model: Desire

"I like it" to "I want it."

Sales Promotions

Can be aimed at both end user consumers or channel members. Used in conjunction with other forms of IMC. Can be used for both short-term and long-term objectives.

Choosing Retailing Partners

Channel Structure. Customer Expectations. Channel Member Characteristics. Distribution Intensity. Most manufacturers like Coach use retailers such as Macy's.

Direct Marketing

Communicating directly with target customers to generate a response or transaction. Growing element of IMC. Improvements in database technology have contributed to the rapid growth. Ability to carefully target consumers.Includes e-mail and mobile marketing. Mobile marketing is marketing through wireless handheld devices.

Electronic data interchange (EDI)

Electronic data interchange (EDI) is the computer-to-computer exchange of business documents from a retailer to a vendor and back.

Communications Gap Difference between the Actual Service Provided and the Service the Firm Promises

Manage customer expectations. Promise only what you can deliver. Communicate service expectations. The communications gap refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises

cross-docked

Merchandise cartons that are cross-docked are prepackaged by the vendor for a specific store.

Online Marketing

websites, blogs, social media

Getting Merchandise to Customers

-ship merchandise to stores -customer store pickup

Integrated Marketing Communications

Consumer Communication channels Results of the communication

The Appeal

Informational appeal • Helps consumers make purchase decisions by offering factual information. Emotional appeal • Aims to satisfy consumers' emotional desires rather than their utilitarian needs.

Inventory Management through Just-In-Time Systems

Just-in-time inventory systems are inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems. Also known as quick response (QR) inventory systems • Less merchandise on a more frequent basis. • Many firms, such as H&M, Zara, Mango, and Forever 21, have adopted a QR inventory system.

Public Relations (PR)

"Free" media attention. Importance of PR has grown as the cost of other media has increased. As consumers are becoming more skeptical about marketing, PR is becoming more important.

Planning for and Measuring IMC Success: Goals

- Understand the outcome the firm hopes to achieve - Short term or long term - Should be explicitly defined and measured

The Delivery Gap: Delivering Service Quality

- empowering service providers: Allowing employees to make decisions about how service is provided to customers. - support & incentives for employees: The four methods are: Consistent and coherent support from management, provide emotional support to service providers, reward employees for excellent drives and provide instrumental support necessary to deliver service. - use of technology: 1. Low Tech, High Effort: Skype 2. High Tech, High Effort: Doctors working with a robot to remotely deliver service 3. Low Tech, Low Effort: ATMs, self-service kiosks 4. High Tech, Low Effort: Humanoid robots = reduce delivery gap The delivery gap is the difference between the firm's service standards and the actual service it provides to customers.

Economic Importance of Service

- production is cheaper in other countries - high value placed on convenience and leisure - services become more specialized (developed economies are increasingly service economies) The three features are: Production is cheaper in other countries, high value placed on convenience and leisure and services become more specialized.

Focus of Advertisements

-product-focused advertisements: inform, persuade, or remind consumers about a product or service -institutional advertisements: promote a company, corporation, business, institution (e.g. PSAs) Public Service Advertising (PSA): Under Federal Communication Commission rules, broadcasters must devote a specific amount of free airtime to PSAs.

How Consumers Perceive Communication

-receivers decode messages differently -senders adjust messages according to the medium and receivers' traits

Exhibit 19.1: Steps in Planning and Executing an Ad Campaign

1. Identify target audience. 2. Set advertising objectives. 3. Determine the advertising budget. 4. Convey the message. 5. Evaluate a select data. 6. Create advertisements. 7. Assess impact. Step 1: Identify Target Audience: Conduct research to identify target audience. The information is used to set the tone and to select the media. Step 2: Set Advertising Objectives: The objectives of an ad campaign are derived from the overall objectives of the marketing program. Consumers ---> Pull strategy- get consumers to pull the product into marketing channel Wholesalers, Retailers, Salespeople ---> Push strategy- increase demand by focusing on wholesalers, retailers, salespeople

Step 5: Evaluate and Select Media

1. Media Planning: is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience. 2. Media Mix: is the combination of the media used and the frequency of advertising in each medium. 3. Media Buy: is the actual purchase of airtime or print pages.

The AIDA Model: Interest

After awareness comes interest. The customer must want to further investigate the product/service. Interest can also be sparked by a little controversy. To peak interest in the meatless Impossible Whopper, Burger King advertising featured regular customers, noting that they could not tell the difference between a conventional Whopper and the Impossible version.

Service

Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed. By providing good customer service, firms add value to their products and services.

Online Marketing: Blogs

Blogs can: • communicate trends. • announce special events create positive word-of-mouth. • connect customers. • allow the company to respond to customers. • encourage customers to develop a long-term relationship with the company. Blogs are becoming more interactive as the communication between bloggers and customers has increased. Blogs can be linked to other social media.

Reminder Advertising

Communication used to remind, or prompt repurchases. Occurs after the products have gained market acceptance and are in the maturity stage.

Examples of Marketing Goals and the Related Campaigns

Company and Campaign: Nike "Believe in Something" - Goal: Connect with customers who care about social justice issues by running ads featuring ex-NFL quarterback Colin Kaepernick - Target Market: Millennials and Gen Zers - Media Used: Social media, billboard, television, print - Outcome: 31% increase in sales Company and Campaign: RXBAR (kellog co) "No B.S." - Goal: Increase awareness of the brand - Target Market: Everyone - Media Used: Online video advertising, interactive hotline - Outcome: Brand awareness rose from 8% to 15.3% Company and Campaign: Gillette "The best men can be" - Goal: Appeal to traditional male customers while also gaining a new audience among women - Target Market: Men and women - Media Used: Twitter post - Outcome: Over 30 million views, and 51% of women who engaged with the ad expressed joy

Step 3: Determine the Advertising Budget

Considerations: -Role that advertising plays in their attempt to meet their overall promotional objectives -Expenditures vary over the course of the Product Life Cycle -Nature of the market and the product influence the size of the budget

Developing a Retail Strategy Using the Six Ps: Place

Convenient location is a key ingredient to success. Many customers choose stores on the basis of where they are located. Great locations can create a competitive advantage.

Exhibit 17.2: Coach and Cole Haan Distribution

Customers expect to find products in Saks Fifth Avenue, Dillard's, Neiman Marcus and Coach stores. Coach products are currently sold in Marshall's stores, as well as Dillard's, Neiman Marcus and Coach stores. Cole Haan products are sold in Dillard's and Neiman Marcus stores.

Marketing Channel Management Affects Other Aspects of Marketing

DISTRIBUTION CENTER is a facility for the receipt, storage, and redistribution of goods to company stores and may be operated by retailers, manufacturers, or distribution specialists. Manufacturers can ship merchandise either directly to a store or to a distribution center, where it is then shipped to the store. FULFILLMENT CENTERS are used to ship directly to individual customers.

Channel Structure

Degree of vertical integration. Strength of manufacturers' brand. Relative power of manufacturer and retailer. Because M·A·C is made by Estée Lauder, when the new mascara is introduced, the stores receive the new line automatically.

The Standards Gap: Setting Service Standards

Difference between the firm's perceptions of customer expectations and the service standards it sets. Need to set standards for quality. Develop systems to ensure the standards are met. The standards gap is the difference between the firm's perceptions of customers' expectations and the service standards it sets.

Deliver Merchandise Directly to Customer from Fulfillment Center

Driverless delivery vehicles and drones are currently in the experimentation phase, but safety and federal regulations are still a consideration.

Exhibit 19.2: Emotional Appeals in Advertising

Emotional Appeal: Fear/safety Company: National Highway Transportation Safety Administration (NHTSA) Example: "Secure his future. Always seat him in the correct car seat. Emotional Appeal: Humor Company: Orbit Gum Example: "Don't Let Lunch Meet Breakfast" Emotional Appeal: Happiness Company: Instagram Example: "Stories Are Everywhere" Emotional Appeal: Love/Sex Company: Mr. Clean Example: "You Gotta Love a Man Who Cleans" Emotional Appeal: Comfort Company: Charmin Ultra Soft Example: "Embrace Your Softer Side—The Softer, More Cushiony Way to Get Clean" Emotional Appeal: Nostalgia Company: Heinz Example: "Pass the Heinz"

Understanding Customer Expectations

Expectations are based on knowledge and experience. Expectations vary according to type of service. Expectations vary depending on the situation.

Wholesalers

Firms that buy products from manufacturers and resell them to retailers. Convincing wholesalers and retailers to carry new products can be difficult. A viral marketing program can help create interest among consumers.

Services Retailers

Firms that primarily sell services rather than merchandise are a large and growing part of the retail industry. Service retailers, like this nightclub, sell services rather than merchandise

Starting the Flow of Information

Flow 1 (Customer to Store) Flow 2 (Store to Buyer) Flow 3 (Buyer to Manufacturer) Flow 4 (Store to Manufacturer) Flow 5 (Store to Distribution Center) Flow 6 (Manufacturer to Distribution Center and Buyer)

Making Information Flow Through Marketing Channels

Flowchart shows stores directly interacting with customers (1), buyers (2), manufacturers (4), and distribution centers (5). There is to and fro (3) and (6) interaction between buyer and manufacture and manufacturer and distribution center.

Exhibit 17.3 Types of Retailers

Food includes supermarket, supercenter, convenience, and warehouse club. General merchandise includes full-line discount, category specialist, drug, extreme value, specialty, department, and off-price. Service includes auto rental, health spa, vision center, and bank. FOOD - A conventional SUPERMARKET is a self-service food store offering groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise. - SUPERCENTERS are large stores that combine a supermarket with a full-line discount store. - CONVENIENCE STORES provide a limited variety and assortment of merchandise at a convenient location in 2,000-3,000 square foot stores with speedy checkout. - WAREHOUSE CLUBS are large retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses. GENERAL MERCHANDISE - FULL-LINE DISCOUNT STORES are retailers that offer a broad variety of merchandise, limited service, and low prices. - CATEGORY SPECIALISTS are discount stores that offer a narrow but deep assortment of merchandise. - DRUGSTORES are specialty stores that concentrate on pharmaceuticals and health and personal grooming merchandise. - EXTREME VALUE retailers are small, full-line discount stores that offer a limited merchandise assortment at very low prices. - SPECIALTY stores concentrate on a limited number of complementary merchandise categories and provide a high level of service in relatively small stores. - DEPARTMENT stores are retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise. - OFF-PRICE retailers offer an inconsistent assortment of brand-name merchandise at low prices.

Franchising

Franchising is a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchiser. EXHIBIT 16.3 Top 10 Franchises for 2019Table divided into four columns summarizes top 10 franchises for 2019. The column headers are marked from left to right as: Rank, franchise name, number of United States outlets, and start-up costs.Rank Franchise Name Number of U.S. Outlets Start-Up Costs 1 McDonald's Burgers, chicken, salads, beverages 13,226 $1.3M-2.2M 2 Dunkin' Coffee shops 9,499 $396K-1.6M 3 Sonic Drive-In Restaurants Burgers, hot dogs, chicken, sandwiches, breakfast, ice cream, beverages 3,424 $1.2M-3.5M 4 Taco Bell Mexican food 6,161 $526K-3M 5 The UPS Store Postal, business, printing, and communications services 4,819 $138K-470K 6 Culver's Frozen custard, specialty burgers 709 $2M-4.7M 7 Planet Fitness Fitness clubs 1,740 $1.1M-4.2M 8 Great Clips Hair salons 4,216 $137K-259K 9 Jersey Mike's Subs Subs 1,520 $237K-767K 10 7-Eleven Convenience stores 7,206 $47K-1.2M

The Service-Product Continuum

From Service dominant (doctor) to Product dominant (grocery store) the continuum from a pure service to a pure good. Most offerings lie somewhere in the middle and include some service and some good (i.e., a hybrid of the two). doctor, dry cleaner, restaurant, grocery store

Persuasive Advertising

Generally, occurs in the growth and early maturity stages of the PLC when competition is most intense. May be used to reposition an established brand in the later stage of the PLC.

Service Quality, Customer Satisfaction, and Loyalty

Good service quality leads to satisfied and loyal customers. Postpurchase Evaluation leads to satisfaction, dissonance, or loyalty.

Making Merchandise Flow through Marketing Channels EXHIBIT 16.7 Merchandise FlowsAccess the text alternative for slide images.

Illustration shows merchandise flow from manufacturers to distribution/ fulfillment center and stores. From distribution/ fulfillment center to stores and customers, and from stores to customers.

Managing the Marketing Channel and Supply Chain

Illustration shows merchandise flow from manufacturers to distribution/ fulfillment center and stores. From distribution/ fulfillment center to stores and customers, and from stores to customers.

Designing Marketing Channels

In a direct channel, the manufacturer sells directly to the customer. In an indirect channel with one intermediary, the manufacturer sells to a retailer who then sells to the customer. In an indirect channel with two intermediaries, the manufacturer sells to a wholesaler, who sells to a retailer who then sells to the customer.

Exhibit 18.2: The AIDA Model

In the A I D A model, awareness is associated with the customer response of thinking. Interest and desire are associated with the customer response of feeling. Action is associated with the customer response of doing.

Communicating with Consumers: Exhibit 18.1: The Communication Process

In this example, Pepsi (the firm which makes Pepsi) is the sender. The transmitter is an advertising vendor who encodes this message and creates a Pepsi advertisement. The communications channel (media) is represented by the advertisement appearing in a newspaper. The receiver is the consumer who decodes the message (by reading the newspaper). The consumer sends feedback to Pepsi. Noise from the environment can be a factor in all phases of this process.

Services Marketing Differs from Product Marketing EXHIBIT 13.2 Core Differences between Services and Goods

Inseparable, Heterogenous, Perishable, Intangible Intangible: Services cannot be touched, tasted, or seen. Requires using cues to aid customers. Atmosphere is important to convey value. Images are used to convey benefit of value. EX: Because it is difficult to show a service, Amusement park owners evoke images in their advertising of happy families and friends enjoying a ride at one of their parks. Inseparable Production and Consumption: Production and consumption are simultaneous. Little opportunity for a consumer to test a service before use. Lower risk by offering guarantees or warranties. Heterogeneous: The more humans are needed to provide a service, the more likely there is to be heterogeneity or variability in the service's quality. Solutions •Technology. •Training. •Automation. Perishable: Services are perishable in that they cannot be stored for use in the future. Ski areas, airlines, cruise ships, movie theaters, and restaurants must find ways to deal with the challenges of perishability.

Distribution Intensity

Intensive: outs products in as many places as possible. - An intensive distribution strategy is designed to get products into as many outlets as possible. Selective: relies on a few selected retail customers in a territory. - Selective distribution uses a few selected customers in a territory. Exclusive: grants exclusive geographic territories. - An exclusive distribution policy is when manufacturers grant exclusive geographic territories to one or very few retail customers so no other customers in the territory can sell a particular brand.

Channels Used in an IMC Strategy

Interactive and offline channels include personal selling, sales promotions such as contests, and direct marketing such as telemarketing. Interactive and online channels include direct marketing such as mobile marketing, and online marketing such as blogs and social media. Passive and offline channels include advertising, sales promotions such as coupons, public relations, direct marketing such as catalogs. Passive and online channels include direct marketing such as email marketing.

Providing Great Service:The Service Gaps Model

Knowledge gap is between customer expectations for service quality and management perceptions of customer expectations. Standards gap is between management perceptions of customer expectations and standards specifying service to be delivered. Delivery gap is between standards specifying service to be delivered and actual service delivered. Communication gap is between actual service delivered and retailer communications about service quality. Also there is a gap between customer expectations for service quality and actual service delivered.

Channel Member Characteristics

Larger firms: • Can gain more control, be more efficient, and save money. • Because Walmart is the world's largest grocer, it buys direct from the manufacturer.

Exhibit 19.3: Types of Media Available for Advertising

Medium: Television Advantages: Wide reach; incorporates sound and video. Disadvantages: High cost; several channel and program options; may increase awareness of competitors' products. Medium: Radio Advantages: Relatively inexpensive; can be selectively targeted; wide reach. Disadvantages: No video, which limits presentation; consumers give less focused attention than TV.; exposure periods are short. Medium: Magazines Advantages: Very targeted; subscribers pass along to others. Disadvantages: Relatively inflexible; takes some time for the magazine to be available. Medium: Newspapers Advantages:Flexible; timely; able to localize. Disadvantages: Can be expensive in some markets; advertisements have short life span. Medium: Internet/Mobile Advantages: Can be linked to detailed content; highly flexible and interactive; allows for specific targeting. Disadvantages: Becoming cluttered; the ad may be blocked by software on the computer. Medium: Outdoor/Billboard Advantages: Relatively inexpensive; offers opportunities for repeat exposure. Disadvantages: Is not easily targeted; has placement problems in some markets; exposure time is very short. Medium: Direct marketing Advantages: Highly targeted; allows for personalization. Disadvantages: Cost can vary depending on type of direct marketing used; traditional media, like mail, will be more expensive than newer media.

The Importance of Marketing Channel/Supply Chain Management

Merchandise is produced and distributed: 1. in the right quantities 2. to the right locations 3. at the right Supply chain management is a set of approaches and techniques firms employ to integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels that their customers require.

Exhibit 18.6: Rule-of-Thumb Methods(1 of 2)

Method: Competitive parity Definition:The communication budget is set so that the firm's share of communication expenses equals its share of the market. Limitations: Does not allow firms to exploit the unique opportunities or problems they confront in a market. If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time. Method: Percentage-of-sales Definition: The communication budget is a fixed percentage of forecasted sales. Limitations: Assumes the same percentage used in the past, or by competitors, is still appropriate for the firm. Does not take into account new plans (e.g., to introduce a new line of products in the current year). Method: Available budget Definition: Marketers forecast their sales and expenses, excluding communication, during the budgeting period. The difference between the forecast sales and expenses plus desired profit is reserved for the communication budget. That is, the communication budget is the money available after operating costs and profits have been budgeted. Limitations: Assumes communication expenses do not stimulate sales and profit.

Advertising

Most visible element of an IMC strategy. Placement of announcements and persuasive messages in time or space purchased by business firms, nonprofit organizations, government agencies, and individuals

Mass and Niche Media

Niche media: • More focused • Reach narrower segments • Target unique demographics or interests • HGTV, TransWorld Skateboarding, Popstar! Magazine. Mass media: • Ideal for reaching large, anonymous audiences.• Include outdoor/billboards, newspapers, magazines, radio, and television.

Power in the Marketing Channel Exhibit 16.5: Bases of Power

Power in a marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution.

Developing a Retail Strategy Using Two Additional Ps: Presentation and Personnel

Presentation: Lighting, color, and music are used to highlight merchandise and create a mood that will attract the store's target markets. Personnel: Well-trained sales personnel can influence the sale at the point of purchase.

Developing a Retail Strategy Using the Six Ps: Price

Price defines the value of both the merchandise and the service provided.

Developing a Retail Strategy Using the Six Ps: Product

Providing the right mix of merchandise and services that satisfies the needs of the target market. Private-label or store brands help retailers distinguish themselves from competition. Target has about one dozen private-label lines in its stores.

Evaluating Service Quality Using Well-Established Marketing Metrics EXHIBIT 13.4 Dimensions of Service Quality

Reliability: The ability to perform the service dependably and accurately. Responsiveness: The willingness to help customers and provide prompt service. Assurance: The knowledge of and courtesy by employees and their ability to convey trust and confidence. Empathy: The caring, individualized attention provided to customers. Tangibles: The appearance of physical facilities, equipment, personnel, and communication materials. Service quality is the customers' perceptions of how well a service meets or exceeds their expectations.

Developing a Retail Strategy Using the Six Ps: Promotion

Retailers use a wide variety of promotions, both within their retail environment and through mass and social media.

Planning for and Measuring IMC Success: Setting and Allocating the IMC Budget

Rule-of-thumb methods: use prior sales and communication activities to determine the present communication budget. Objective-and-task method: determines the budget required to undertake specific tasks to accomplish communication objectives.

The AIDA Model: Awareness

Senders first must gain the attention of the consumer. Awareness metrics include: • Aided recall. - Aided recall is an awareness metric that occurs when consumers recognize a name (e.g., of a brand) that has been presented to them. • Top-of-mind awareness. - is a prominent place in people's memories that triggers a response without them having to put any thought into it.

Supply Chain Management Exhibit 16.1: Simplified Supply Chain

Shows a simple supply chain example using three manufacturers, a retail distribution center or wholesaler, and five stores. Trucks provide the means of distribution. Manufacturers one and three ship products to the retail distribution center. Then the products are sent from the retail distribution center to each of five store locations. Manufacturer two ships products directly to stores two and four.

Exhibit 13.5: Customers' Evaluation of Service Quality for Lou's Local Diner- Text Alternative

Shows the results of a survey in which customers rated the performances of Lou's Local Diner and a competitor from a well-known national chain in terms of five service dimensions: reliability, responsiveness, tangibles, empathy, and assurance.In each dimension, Lou's Local Diner scored higher than the competition and either met or exceeded the customers' zone of tolerance. Overall, customers placed the most importance on reliability followed by responsiveness, tangibles, empathy, and assurance. Both Lou's Local Diner and the competitor ranked lowest in the customers' zone of tolerance in empathy. Importance scores total 100 points. The importance scores assigned are: Reliability: 40 points Responsiveness; 25 points Tangibles: 20 points Empathy: 10 points Assurance: 5 points

Online Marketing: Social Media

Social media is media content distributed through social interactions. One trend is combining advertising on podcasts with in-home voice assistants. • allows users to interact among themselves. • provide feedback to their community members.

Exhibit 17.1: Factors for Establishing a Relationship with Retailers

The 4 factors are: 1. Choosing retailing partners. 2. Identifying types of retailers. 3. Developing a retail strategy. 4. Managing an omnichannel strategy. (Omnichannel retailers are retailers that use some combination of stores, catalogs, and the Internet to sell merchandise.)

What is Retailing?

The set of business activities that add value to products and services sold to consumers for their personal or family use. Estée Lauder's subsidiary brand M·A·C is introducing a new line of mascara.

Online Grocery Retailers

The set of retailers providing online capabilities continues to expand. Companies seek to add value to the grocery channel by providing delivery.

General Merchandise Retailers

The seven categories are: 1. Department stores have broad variety and deep assortment. 2. Full-line discount has broad variety at low prices. 3. Specialty have limited merchandise with service in small store. 4. Drug store has specialty for pharmaceutical and health. 5. Category specialists: Big-box or category killers with narrow but deep assortment. 6. Extreme-value: Full line, limited, very low prices. 7. Off-price: Inconsistent assortment of brand-name merchandise at low prices.

Zone of Tolerance Used to Measure How Well Firms Perform on the Five Service Quality Dimensions

The three questions are given as follows: 1. What is the desired and expected level of service for each dimension? 2. What are the customer's perceptions of how well the focal service performs and how well a competitive service performs? 3. What is the importance of each service quality dimension?

Knowledge Gap: Understanding Customer Expectations

The three reasons are as follows: Marketing research: understanding customers. Evaluating service quality. Understanding customer expectations. The knowledge gap reflects the difference between customers' expectations and the firm's perception of those customer expectations.

Personal Selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision. Salespeople can add significant value, which can make the expense worth it.

The AIDA Model: Action

The ultimate goal of any form of marketing communications is to drive the receiver to action. But purchase is just one type of action. What other actions can IMC ask consumers to take?

Planning for and Measuring IMC Success: Measuring Success Using Marketing Metrics

Traditional Media • Frequency - the frequency of exposure is how often the audience is exposed to a communication within a specified period of time. • Reach - Reach is the percentage of the target population exposed to a specific marketing communication at least once. • Gross rating points (GRP) - Gross rating points (GRP) represent reach multiplied by frequency. Web-Based Media • Web-tracking software - indicates how much time viewers spend on particular web pages and the number of pages they view.

Step 4: Convey the Message

USP of 5 companies are given as follows: Oreo is milk's favorite cookie, The New York Times is all the news that's fit to print, Ford is built ford tough, Kellogg's Cornflakes is the original and best cereal and TNT is drama.

Informative Advertising

Used to create and build brand awareness. Push the consumer through the buying cycle to a purchase. Inform customers about upcoming sales events or arrival of new merchandise.

Marketing Research: Understanding Customers

Voice-of-customer (VOC) program: Collects customer inputs and integrates them into managerial decisions. Zone of tolerance: Refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service.

Distribution Center versus Direct Store Delivery

What are the advantages of a distribution center? • Should Target stock Dualit toasters in distribution centers or keep all its backup stock in stores?

Marketing Channels Add Value

Wouldn't it be cheaper for consumers to buy directly from manufacturers? If you buy steak from a local farmer, which product do you need to cook it? Each participant in the marketing channel adds value.

The Lagged Effect

a delayed response to a marketing communication campaign Marketing communications do not always have an immediate impact. Multiple exposures are often necessary. It is difficult to determine which exposure led to purchase. The recurrent presence of De Beers' advertising campaign for diamond jewelry resonates with consumers over time. So, when the occasion arises to buy jewelry for oneself or for a loved one, the consumer will think of diamonds

Radio frequency identification (RFID) tags

are tiny computer chips that automatically transmit to a special scanner all the information about a container's contents or individual products.

A strategic relationship or partnering relationship

involves the supply chain members being committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial.

Vendor-managed inventory (VMI)

is an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer's inventory levels in each of its stores.

Service Recovery

listen to the customer, resolve problems quickly, provide a fair solution Listening to the Customers and Involving Them in Service Recovery: - Customers can get emotional over a service failure. - Often customers just want someone to listen. Finding a Fair Solution: - Distributive fairness. - Procedural fairness. Resolving Problems Quickly - The longer it takes to resolve service failure, the more irritated the customer will become and the more people the customer will tell. - It is in the firm's best interest to solve problems quickly.

The Six P's

product, price, promotion, place, presentation, personnel

Food Retailers

supermarkets supercenters warehouse clubs convenience stores online grocery retailers Supermarkets - Limited nonfood - Differentiated by number of SKUs Supercenters - Supermarket combined with a full-line discount store - Walmart, Meijer, K-Mart, Target WarehouseClubs - Limited assortment and little service, low prices - Costco, Sams, BJ's ConvenienceStores - Limited variety Speedy check out - Good locations Online Grocery Retailers - Customers willing to pay more to order online and have groceries delivered - Instacart, Amazon Prime, Fresh

Benefits of the Internet and Omnichannel Retailing

• Deeper and broader selection. • Personalization. • Expanded market presence. • Integrated CRM. • Brand Image. • Pricing. • Supply Chain.