Mid Term 3 Marketing
What are the steps in distribution planning and what kinds of decisions does a supplier make when choosing a strategy?
1. Develop distribution objectives 2. Evaluate internal and external environmental influences 3. Choose a distribution strategy 4. Develop distribution tactics · When picking a strategy, the supplier 1.) decides the number of channel levels, 2.) Conventional, vertical, or horizontal marketing system 3.) Intensive, exclusive or selective distribution.
What is cross elasticity of demand? Describe two situations that illustrate this concept
of demand is when changes in the price of one product affect the demand for another item. Two situations that illustrate this concept are: (1) if the price of bananas go up, people may buy other fruit instead such as apples (2) if the price of gasoline goes up, consumers may drive less or carpool which means there will be a decrease in demand of tires.
What are the ethical issues in retailing?
is advertising is manipulative, deceptive and untruthful, offensive and in bad taste, and causes people to buy thing they do not really need. You can describe these in your own way if needed but they are fairly obvious.
What are possible causes for a shift in the demand curve that do not involve changing price?
a. Change in income b. Population shift c. Taste and preferences d. Future expectations
What is channel conflict, and why is it important for a supplier to think about this before choosing a partner with which to do business? What are some ways suppliers can avoid channel conflict?
a. Channel Conflict is when the same company is selling the same product at different stores. Cuisnart at Belk and TJ Maxx. It is important to think about this because it brands yourself.
Out of the many different types of retail formats, name four, briefly describe how they are different from the perspective of merchandise assortments, service levels, store size and pricing, and give an example of each.
a. E-Commerce: nonstore retailing, direct selling, cheaper, no store b. Direct Selling: occurs when a salesperson presents a product to one individual or a small group, takes orders, and delivers the merchandise, door to door sales, party, c. Automatic Vending: usually best suited to items like candy, offers many benefits to consumers and marketers, small space d. B2C E-Commerce: online exchange between companies and individual consumers
What are the characteristics of service? Briefly describe them and challenges posed.
a. Intangibility · marketing the product that isn't there · difficult for consumers to evaluate · physical cues help reassure the buyer (Target vs Walmart) b. Perishability · Can't be stored · Use it or lose it · Spa treatments, skiing c. Variability · Service delivery can vary over time for the same service to the same consumer · And, therefore, perception of "the exchange" can vary · One bad service experience at a restaurant can/will deter customers from coming back. (Hard to find new customers vs. taking good care of the customers you have) d. Inseparability · Hard to separate the production of the service from the consumption of the service. (Restaurant example—great food can be undone by it arriving late or served by an unruly waiter.) · The "moment of truth" is critical to success
What are the stages of the product life cycle? Briefly describe each, and how product, pricing, promotion and place might change during the product life cycle
a. Introduction- After all research and development has be done it is time to launch the product and begin its lifecycle. The introduction stage of the product life cycle is when the marketing team emphasizes promotion and the product's initial distribution. b. Growth- In the growth stage of the product life cycle, the market has accepted the product and sales begin to increase. The company may want to make improvements to the product to stay competitive. c. Maturity- In the maturity stage of the product life cycle, sales will reach their peak. Other competitors enter the market with alternative solutions, making competition in the market fierce. The company that introduced the new product may begin to find it difficult to compete in the market. d. Decline- In the decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point. Most products are phased out of the market at this point due to the decrease in sales and because of competitive pressure. The market will see the product as old and no longer in demand.
What is a category killer, and what are its characteristics? If you owned a small stationary store and knew Staples was about to open a new store near your location, what would you do to compete effectively with them?
a. Only sells one product (Sunglass Hut) b. Lower the prices of your product
What are the functions of logistics and describe each one
a. Order Processing- The series of activities that occurs between the time an order comes into the organization and the time a product goes out the door. b. Warehousing- Storing goods in anticipation of sale or transfer to another member of the channel of distribution. c. Distribution center- A warehouse that stores goods for a short period of time and that provides other functions such as breaking bulk. d. Materials handling- The moving of products into, within, and out of warehouses. e. Transportation- The mode by which products move along channel members.
What is a two-way product line stretch? When a company does this, what are they trying to accomplish, and what are its advantages and disadvantages?
a. The act of introducing a new product into an already existing product line within the same period of time, and both the lower and higher priced ends of that overall product line. A company might do this to because they realize that their target market is too small, but they do not want to create a cheap name brand for the company. · Advantage- Could gain more customers due to a lower price point · Disadvantage- Could have existing customers choose the lower end model because it's cheaper, or loose a customer because the product is available to a more diverse population
What is brand equity and why is it so important to marketers?
the commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. b. Marketers need good brand equity because it provides competitive advantage and brand loyal consumers and attachment.
Briefly describe the five branding strategies that companies use. Give an example of each
· Co branding- an agreement between two brands to work together to market a new product. Example: Taco Bell selling spicy chicken cool ranch Doritos locos tacos. · Licensing- is an agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time. Example: Distiller Brown-Forman licensed its famous Jack Daniels bourbon name to T.G.I. Friday's to use on menu items. · Generic brands-generic branding is a strategy in which products are not branded and are sold at the lowest price possible. Example: Walmart does this with generic prescriptions such as basic antibiotics. · Individual brands vs family brands- individual branding is using a separate unique brand for each product item, whereas, family branding is a brand that a group of individual products or individual brands share. Examples: Campbell's uses a family branding strategy to identify its chunky line of soups. Oreo uses individual branding. · National brands and store brands- national brands are brands that the product manufacturer owns, and store brands, also called private label brands are brands that a certain retailer or distributor owns and sells. Examples: Costco features a fine line of more than 300 products under its own private label Kirkman signature. Ben & Jerry's ice-cream however, would be a national brand.
Proctor and Gamble, like other large companies, typically use three different methods to organize their product management efforts. What are they, and give an example of each
· Emphasis on intermediate category: take transformational innovations and deliver major new benefits. Ex. Crest creating pro health and white strips. · Create larger growth factory teams. Develop ideas covering each product category. Ex. beauty care groups, household item groups. · Strategy and development and review process. Link the CEO, CTO, and CFO all together. Ex. each group determines the innovation types it needs to grow.
