MKTG 350 Exam 4

competition-matching approach

Determining an advertising budget by trying to match competitors' advertising outlays

Encourage Product Trial

If customers stall in the evaluation stage, marketers can use methods to BLANK in order to move them to product adoption

suppliers, manufacturers, distributors, retailers, customers

Who are the members of supply chain? (5)

aided recall test

a posttest that asks respondents to identify recent ads and provides clues to jog their memories

Administered VMS

channel members are independent, but informal coordination achieves a high level of interorganizational management.

Coding Process (Encoding)

converting meaning into a series of signs or symbols

decoding process

converting signs or symbols into concepts and ideas

advertising

paid non personal communication about an organization and its products transmitted to a target audience through mass media. used to promote goods, services, ideas, issues, and people. highly flexible

channel captain and channel power

2 aspects of channel leadership

vertical & horizontal

2 types of channel integration

1. cost efficient-reaches lots of people at low cost 2. lets source repeat message several times 3. visibility gained enhances an organization's image

3 advantages of advertising

1) Continuous 2) Flighting 3) Pulsing

3 advertising schedules

Intensive, Selective, and Exclusive Distribution

3 levels of intensity of market coverage

Create awareness, encourage trial, combat competitive promos

3 possible objectives of promotion

1. comparative 2. reminder 3. reinforcement

3 types of competitive advertising

1. traditional 2. category killers 3. off price retailers

3 types of specialty retailers

corporate, administered, contractual

3 types of vertical management systems

advertising, personal selling, public relations, sales promotion

4 elements of promotion mix

1. promotional resources, objectives, & policies 2. characteristics of target market 3. characteristics of product 4. cost & availability of promotional methods

4 factors that influence which promotional element to use

1. objective and task approach 2. percent of sales approach 3. competition matching approach 4. arbitrary approach

4 parts in determining the advertising appropriation/budget

1. absolute dollar outlay can be high 2. rarely provides rapid feedback 3. often difficult to measure effect on sales 4. less persuasive than personal selling 5. has limited time exposure

5 disadvantages of advertising

promotion mix

A combination of promotional methods used to promote a specific product

Electronic Data Interchange (EDI)

A computerized means of integrating order processing with production, inventory, accounting, and transportation

Marketing channel

A group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

vertical management systems

A marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers

personal selling

A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation. Most extensively used in the business-to-business market and also in the business-to-consumer market for high-end products such as homes, cars, electronics, and furniture.

source

A person, group, or organization with a meaning it tries to share with a receiver or an audience

viral marketing

A strategy to get consumers to share a marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly

power shopping center

A type of shopping center that combines off-price stores with category killers (Harbison Road)

lifestyle shopping center

A type of shopping center that is typically open air and features upscale specialty stores, dining, and entertainment (Main Street)

category killers

A very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability (petsmart)

sales promotion

Activities or materials that act as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or customers (free samples, games. rebates. sweepstakes, contests. premiums, coupons)

flighting advertising

Advertisements run for set periods of time alternating with periods in which no ads run

institutional advertising

Advertising that promotes organizational images, ideas, and political issues

product advertising

Advertising that promotes the uses, features, and benefits of products

reminder advertising

Advertising used to remind consumers about an established brand's uses, characteristics, and benefits

Supply Chain

All the organizations and activities involved with the flow and transformation of products from raw materials through to the end customer

With a party plan, a consumer acts as a host and invites friends and associates to view merchandise, often at someone's home. The informal atmosphere helps to overcome customers' reluctance and encourages them to try out and buy products. Tupperware and Mary Kay were the pioneers of this selling technique and remain global leaders.

Although the majority of direct selling takes place on an individual, or person-to-person, basis, it sometimes may be carried out in a group, or "party" plan, format.

Just-in-time (JIT)

An inventory-management approach in which supplies arrive just when needed for production or resale

retailer

An organization that purchases products for the purpose of reselling them to ultimate consumers

noise

Anything that reduces a communication's clarity and accuracy

objective-and-task approach

Budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them

channel integration

Channel members can either combine and control activities or pass them to another channel member. Channel functions may be transferred between intermediaries and producers, even to customers. Various channel stages may be combined, either horizontally or vertically, under the management of a channel captain. Such integration may stabilize supply, reduce costs, and increase channel member coordination.

vertical channel integration

Combining two or more stages of the marketing channel under one management

Integrated marketing communications

Coordination of promotion and other marketing efforts for maximum informational and persuasive impact on customers

primary demand

Demand for a product category rather than for a specific brand. used When an organization is the first to introduce an innovative product (chia seeds)

multichannel retailing

Employing multiple distribution channels that complement brick-and-mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers' reviews, and make actual purchases

superstore

Giant outlet offering all food and non-food products found in supermarkets, as well as most routinely purchased products (Walmart)

the number and kinds of outlets in which a product will be sold. This decision depends on the characteristics of the product and the target market. To achieve the desired intensity of market coverage, distribution must correspond to behavior patterns of buyers. In considering products for purchase, consumers take into account such factors as replacement rate, product adjustment (services), duration of consumption, and time required to find the product.These variables directly affect the intensity of market coverage.

Intensity of market coverage

LOOK OVER CHAPTER 17 Table 17.1 !!!

LOOK OVER CHAPTER 17 Table 17.1 !!!

warehouse club

Large-scale, members-only establishments combining cash-and-carry wholesaling with discount retailing (Costco)

direct selling

Marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace (cutco, Avon, Mary kay)

The attributes of the product can have a strong influence on the choice of marketing channels. Marketers of complex and expensive products (like automobiles) will likely employ short channels, as will marketers of perishable products (such as dairy and produce). Less-expensive standardized products with long shelf lives, such as soft drinks and canned goods, can go through longer channels with many intermediaries. Fragile products that require special handling are likely to be distributed through short channels to minimize the amount of handling and risk of damage. Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.

Product attributes in the marketing channels

pull policy

Promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel (stresses advertising and sales promotion) an example would be children's toys advertised on children's tv channel

push policy

Promoting a product only to the next institution down the marketing channel (stresses personal selling) an example would be mobile phone selling

Combat Competitive Promotional Efforts

Promotional activities may aim to offset or lessen the effect of a competitor's promotional and marketing activities

Managing activities from production to final delivery through system-wide coordination

Sample activity of operations management

supermarket

Self-service store offering complete line of food products and some non-food products (Kroger)

off price retailers

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts (TJ Maxx)

traditional specialty retailers

Stores that carry a narrow product mix with deep product lines. Sometimes called limited-line retailers, they may be referred to as single-line retailers if they carry unusual depth in one product category. Specialty retailers commonly sell such shopping products as apparel, jewelry, sporting goods, fabrics, computers, and pet supplies. The Limited, Gap, Sunglass Hut, and Foot Locker are examples of retailers offering limited product lines but great depth within those lines

channel power

The ability of one channel member to influence another member's goal achievement

Supply Chain Management; operations management, procurement, logistics management, marketing management, and channel management

The coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer & 5 examples

channel captain

The dominant leader of a marketing channel or a supply channel

receiver

The individual, group, or organization that decodes a coded message

feedback

The receiver's response to a decoded message

competitive advertising

Tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands

audience

Two or more receivers

1. make products available at the right time, at the right place, in the right quantities. 2. they can have a strong influence on the other elements of the marketing mix (i.e., product, promotion, and pricing) 3. they determine a product's market presence and accessibility 4. create utility 5. facilitate exchange efficiencies

What is the significant of marketing channels (5) side note: least flexible

public relations

a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders (publicity). it is an ongoing program, not only to be used during crises. Maintaining a positive relationship with one or more stakeholders can affect a firm's current sales and profits, as well as its long-term survival. The goal is to create and enhance a positive image of the organization.

consumer jury

a panel of a product's existing or potential buyers who pretest ads

unaided recall test

a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues

recognition test

a posttest in which respondents are shown the actual ad and are asked if they recognize it

continuous advertising

advertising runs at a constant level with little variation throughout the campaign project

reinforcement advertising

advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it

pioneer advertising

advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

buzz marketing

an attempt to incite publicity and public excitement surrounding a product through a creative event

arbitrary approach

budgeting for an advertising campaign as specified by a high-level executive in the firm

percent-of-sales approach

budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage

Corporate VMS

combines all stages of the marketing channel, from producers to consumers, under a single owner.

pulsing advertising

combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods

comparative advertising

compares the sponsored brand with one or more identified brands on the basis of one or more product characteristics

create awareness

crucial to initiating product adoption process refresh interest in existing brands / products

selective demand

demand for a specific brand; requires singling out attributes important to potential buyers (Geico, SunnyD)

1. source 2. coded message 3. communications channel 4. decoded message 5. audience/receiver 6. feedback 7. noise

elements of Communications process model (7)

pretest

evaluation of advertisements performed before a campaign begins

posttest

evaluation of advertising effectiveness after the campaign

Directing the flow of products

sample activity of channel management

Managing the efficient and effective flow of materials, products, and information from the point of origin to consumption

sample activity of logistics management

Processes to obtain resources to create value through sourcing, purchasing, and recycling, including materials and information

sample activity of procurement

stockouts

shortages of products that can result in loss of customers

advertising appropriation

the advertising budget for a specific time period

channel capacity

the limit on the volume of information a communication channel can handle effectively

communications channel

the medium of transmission that carries the coded message from the source to the receiver

contractual VMS

the most popular type of vertical marketing system. Channel members are linked by legal agreements spelling out each member's rights and obligations. Franchise organizations, such as McDonald's and KFC. Others include wholesaler-sponsored groups, such as IGA stores, in which independent retailers band together under this leadership of a wholesaler.

Communications process model

the process of sharing a meaning through a transmission of info model