MKT 301 Final Exam

Chapter 10: Pricing: Understanding & Capturing Customer Value

If effective product development, promotion, and distribution sow the seeds of business success, effective pricing is the harvest.

Marketing Strategies for Service firms

In addition to traditional marketing strategies, service firms often require additional strategies. Service-profit chain: the chain that links service firm profits with employee and customer satisfaction. 1. Internal service quality 2.Satisfied and productive service employees 3. Greater service value 4.Satisfied and loyal customers 5. Healthy service profits and growth Internal marketing:hat the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. Interactive marketing: service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.

3 major marketing tasks for service companies

service differentiation: service quality: service productivity:

Horizontal Marketing Systems

an arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

Other External Factors

-How will resellers react to various prices? -The government is another important external influence on pricing decisions. -Finally, social concerns may need to be taken into account. ****In setting prices, a company's short-term sales, market share, and profit goals may need to be tempered by broader societal considerations.

Types of Wholesalers

-Merchant wholesalers -Brokers and agents: They do not take title to goods, and they perform only a few functions. -Manufacturers' and retailers' branches and offices: done by sellers and buyers independently w/o third party interference

Market Structure and Demand

-business marketer normally deals with far fewer but far larger buyers than the consumer marketer does. ** few buys account for most of the purchase - inelastic and more fluctuating demand ****The total demand for many business products is not much affected by price changes, especially in the short run. ****A small percentage increase in consumer demand can cause large increases in business demand. B-to-B marketers sometimes promote their products directly to final consumers to increase business demand.

Nature of Buying Unit

-more decision participants -more professional purchasing effort ***business buying is done by trained purchasing agents who spend their working lives learning how to buy better. *several people will participate in the decision-making process companies need: -well-trained marketers -salespeople to deal with these well-trained buyers.

Channel Design Decisions

1) Analyzes customer needs: finding out what target consumers want from the channel. 2) setting channel objectives: The company should decide which segments to serve and the best channels to use in each case. In each segment, the company wants to minimize the total channel cost of meeting customer service requirements. 3) identifying major channel alternatives: When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and the responsibilities of each channel member 4) evaluate: Each alternative should be evaluated against economic, control, and adaptability criteria.

Levels of Products and Services

1. core customer value: problem-solving benefits or services that consumers seek. 2. actual product: develop product and service features, a design, a quality level, a brand name, and packaging. 3. augmented product: built around the core benefit and actual product by offering additional consumer services and benefits. *****When developing products, marketers first must identify the core customer value that consumers seek from the product. They must then design the actual product and find ways to augment it to create customer value and a full and satisfying brand experience.

Product and Service Classification

1. Consumer Products: products and services bought by final consumers for personal consumption. ***Consumer products include convenience products, shopping products, specialty products, and unsought products. Convenience products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Specialty products are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort. Unsought products are consumer products that a consumer either does not know about or knows about but does not normally consider buying. 2. Industrial Products: products purchased for further processing or for use in conducting a business. Materials and parts include raw materials as well as manufactured materials and parts. Capital items are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. supplies and services:

Major Pricing Strategies

1. Customer value-based pricing: understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value. - uses buyers' perceptions of value as the key to pricing. ***In the end, the customer will decide whether a product's price is right good-value pricing: offering the right combination of quality and good service at a fair price value-added pricing: attaching value-added features and services to differentiate a company's offers and charging higher 2. Cost-based pricing: involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk. -Fixed Costs/Overhead Costs: costs that do not vary with production or sales level -Variable Costs: vary directly with the level of production -Total Costs: the sum of the fixed and variable costs for any given level of production Cost-PlusPricing: adding a standard markup to the cost of the product Break Even Pricing: The firm sets a price at which it will break even or make the target return on the costs of making and marketing a product 3. Competition-based pricing: involves setting prices based on competitors' strategies, costs, prices, and market offerings

Price Adjustment Strategies

1. Discount and allowance pricing Paying bills early or trading something old in for something new 2. Segmented pricing: he company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs. ** Economy seat vs. First Class Seat 3. Psychological pricing: consider the psychology of prices, not simply the economics. ***consumers usually perceive higher-priced products as having higher quality. *** A 9 or 0.99 at the end of a price often signals a bargain 4. Promotional pricing: Temporary pricing products below the list price, and sometimes even below cost, to increase short-run sales - discounts -limited time offers - special event-pricing 5. Geographical pricing: setting prices for customers located in different parts of the country or world -FOB-origin pricing: pricing in which goods are placed free on board a carrier; the customer pays the freight from the factory to the destination - uniform delivered pricing: pricing in which the company charges the same price plus freight to all customers regardless of their location -zone pricing: pricing in which the company sets up two or more zones. all customers within a zone pay the same total price; the more distant the zone, the higher the price - basing-point pricing: pricing in which the seller designates some city as the basing point and charges all customers the freight cost from that city to the customer. - freight-absorption pricing: pricing in which the seller absorbs all or part of the freight charges order to get the desired business. 6. Dynamic pricing: adjusting prices continually to meet the characteristics and needs of individual customers and situations. 7. International pricing **a company can set a uniform worldwide price. **most companies adjust their prices to reflect local market conditions and cost considerations.

Product Mix Pricing Strategies

1. Product line pricing: management must determine the price steps to set between the various products in a line. ***The price steps should take into account cost differences between products in the line 2. Optional-product pricing: pricing optional or accessory products along with the main product. **buying a car w/ full option or no added features 3. Captive-product pricing: setting a price for a product that must be used along with a main product, such as blades for a razor and games for a video-game console 4. By-product pricing: setting a price for by-products to help offset the costs of disposing of them and help make the main product's price more competitive ***cheese makers in Wisconsin have discovered a use for their leftover brine, 5. Product bundle pricing: combining several products and offer the bundle at a reduced price. ***Combo price at McDonalds

Channel Management Decisions

1. Selecting channel members 2. Managing channel members: In managing its channels, a company must convince suppliers and distributors that they can succeed better by working together as a part of a cohesive value delivery system. 3. Motivating channel members 4. Evaluating channel members

major logistics functions

1. Warehousing 2. Inventory Management 3. Transportation 4. Logistics Information Management

the business buyer decision process

1. problem recognition: The buying process begins when someone in the company recognizes a problem or need that can be met by acquiring a specific product or service. 2. general need description: describes the characteristics and quantity of the needed item 3. product specification: the buying organization decides on and specifies the best technical product characteristics for a needed item 4. supplier search: buyer tries to find the best vendors 5. proposal solicitation: the buyer invites qualified suppliers to submit proposals. 6. supplier selection: buyer reviews a proposal and selects a supplier or suppliers 7. order-routine specification: ncludes the final order with the chosen supplier or suppliers and lists items such as technical specifications, quantity needed, expected delivery time, return policies, and warranties. 8. performance review: buyer assessed the performance of the supplier and decides to continue, modify, or drop the arrangement.

product and service decisions

1. product attributes: defining the benefits that it will offer. quality: the characteristics of a product pr service that bear on its ability to satisfy stated or implied customer needs features: A product can be offered with varying features. Features are a competitive tool for differentiating the company's product from competitors' products. style and design: Style simply describes the appearance of a product. Good design contributes to a product's usefulness as well as to its looks. 2. branding: a name, term, sign, symbol, or design or a combination of these that identifies the maker or seller of a product or service. ****Consumers view a brand as an important part of a product, and branding can add value to a consumer's purchase. **** Branding helps the seller to segment markets. 3. packaging: involves designing and producing the container or wrapper for a product. ***packages must now perform many sales tasks—from attracting buyers to communicating brand positioning to closing the sale. 4. labeling: range from simple tags attached to products to complex graphics that are part of the packaging. 1. identifies the product or brand 2. describe several things about the product—who made it, where it was made, when it was made, its contents, how it is to be used, and how to use it safely 3.promote the brand and engage customers. 5. product support services: Support services are an important part of the customer's overall brand experience.

Responding to Competitor Price Changes

1. reduce price to match that of competitor 2. raise the perceived value 3. improve quality and increase price 4. low-price fighter brand

vertical marketing system

A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate. ***provide channel leadership. Corporate VMS: vertical marketing system that combines successive stages of production and distribution under single ownership- channel leadership is established though common ownership Contractual VMS: independent firms at different levels of production and distribution spin together through contracts ***franchise organization: Administered VMS: coordinates succesive stages of production and distribution though the size and power of one of the parties

Push" & "Pull

A push strategy involves "pushing" the product through marketing channels to final consumers. The producer directs its marketing activities (primarily personal selling and trade promotion) toward channel members to induce them to carry the product and promote it to final consumers. Using a pull strategy, the producer directs its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product.

Advertising and PR

Advertising involves communicating the company's or brand's value proposition by using paid media to inform, persuade, and remind consumers. PR involves building good relations with various company publics—from consumers and the general public to the media, investor, donor, and government publics.

Promotion Mix

Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service. Personal selling: Personal customer interactions by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships. Public relations (PR): Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Direct and digital marketing: Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.

Chapter 6: Business Markets and Business Buyer Behavior

B2B- Business to Business B2C- Business to Consumer

Chapter 8: Products, Services, and Brands

Brand experience through products and services

derived demand

Business demand that ultimately comes from (derives from) the demand for consumer goods. EXAMPLE: an increase in the need for wood because of the increase in the need for furniture. Business demand = derived demand

Business Buyer Behavior

Buying behavior consists of 2 major parts 1. the buying center:composed of all the people involved in the buying decision 2. the buying decision process. ****influenced by internal organizational, interpersonal, and individual factors as well as external environmental factors.

Channel Behavior and Organization

Channel Behavior ***A marketing channel consists of firms that have partnered for their common good. ***Each channel member plays a specialized role in the channel. ***The channel will be most effective when each member assumes the tasks it can do best. Chanel Conflict: disagreement among marketing channel members on goals, roles, and rewards- who should do what and for what rewards ***Horizontal Conflict: occurs among firms at the same level of the channel. ***Vertical Conflict: conflict between different levels of the same channel,

Personal Communication Channels

Channels through which two or more people communicate directly with each other, including face to face, on the phone, via mail or e-mail, or even through an internet "chat"

Managing Brands

Communicate the brand's positioning Manage all brand touch points Train employees to be customer centered Audit the brand's strengths and weaknesses

New Product Development Strategy

Developing new products through the firm's own research and development efforts New Product Development: the development of original products, product investment, product modifications, and new brands through the firms's own product development efforts.

Chapter 17: Direct, Online, Social Media, and Mobile Marketing

Direct, Online, Social Media, and Mobile Marketing

Changing Channel Organization

Disintermediation: the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries EX: Netflix to Blockbuster

Engaging business buyers with digital and social marketing

E-Procurement and Online Purchasing ***E-Procurement: online purchasing - online purchasing is standard procedure for most companies today - business marketers can connect with customers online to share marketing information, sell products and services, provide customer support services, and maintain ongoing customer relationships. Benefits: -it shaves transaction costs -reduces the time between order and delivery -eliminates the paperwork associated with traditional requisition B-to-B digital and social media marketing isn't just growing, it's exploding. Digital and social media marketing have rapidly become the new space for engaging business customers.

Analyze the Price- Demand Relationship

Each price the company might charge will lead to a different level of demand. The demand curve shows the number of units the market will buy in a given time period at different prices that might be charged. ***the higher the price, the lower the demand.

The Economy

Economic factors such as a boom or recession, inflation, and interest rates affect pricing decisions because they affect consumer spending, consumer perceptions of the product's price and value, and the company's costs of producing and selling a product. ****Rather than cutting prices on their main-market brands, many companies are holding their price positions but redefining the "value" in their value propositions.

Price Changes

INITIATING PRICE CHANGES Initiating Price Cuts - excess capacity -falling demand in the face of strong price competition or a weakened economy -dominate the market through lower costs. Initiating Price Increases - improve profits - pass costs to customers ***Price increases should be supported by company communications telling customers why prices are being raised. Buyer reactions to Price Changes increase = positive decrease = negative

Other Internal and External Considerations Affecting Price Decisions

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix as well as other organizational considerations. External factors include the nature of the market and demand and other environmental factors. 1. Overall Marketing Strategy, Objectives, and Mix ***the company must decide on its overall marketing strategy for the product or service before setting a price If a company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Target Costing: starts with an ideal selling price based on customer value considerations and then targets costs that will ensure that the price is met.

Organizational Considerations

Management must decide who within the organization should set prices. -In small companies, prices are often set by top management -In large companies, pricing is typically handled by divisional or product managers. -In industrial markets, salespeople may be allowed to negotiate with customers within certain price ranges.

Public Policy and Pricing

Many federal, state, and even local laws govern the rules of fair play in pricing.

The Nature and Importance of Marketing Channels

Marketing channel/ distribution channel: set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. How channel members add value: greater efficiency in making goods available to target markets Information: Gathering and distributing information about consumers, producers, and other actors and forces in the marketing environment needed for planning and aiding exchange. Promotion: Developing and spreading persuasive communications about an offer. Contact: Finding and engaging customers and prospective buyers. Matching: Shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging. Negotiation: Reaching an agreement on price and other terms so that ownership or possession can be transferred. Physical distribution: Transporting and storing goods. Financing: Acquiring and using funds to cover the costs of the channel work. Risk taking: Assuming the risks of carrying out the channel work. *****In dividing the work of the channel, the various functions should be assigned to the channel members that can add the most value for the cost.

Online Marketing

Marketing via the Internet using company Web sites, online ads and promotions, e-mail, online video, and blogs. marketing websites: designed to engage customers and move them closer to a direct purchase or other marketing outcome.

Chapter 16: Personal Selling and Sales Promotions

Personal Selling and Sales Promotions

Product Life-Cycle Strategies

Product Life Cycle 1. Product development: begins when the company finds and develops a new product idea. 2. Introduction: is a period of slow sales growth as the product is introduced in the market. 3. Growth : a period of rapid market acceptance and increasing profits. 4.Maturity: is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. 5. Decline: is the period when sales fall off and profits drop. PLC describes: product class, product form, or brand ***The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction.

Chapter 13

Retailing and Wholesaling

Branding Strategy : Building Strong Brands

Some analysts see brands as the major enduring asset of a company, outlasting the company's specific products and facilities. brand equity: the differential effect that knowing the brand name has on customer response to the product and its marketing *** powerful brand has high brand equity measure of the brand's ability to capture consumer preference and loyalty. Brand value: the total financial value of a brand. *****High brand equity provides a company with many competitive advantages. A powerful brand enjoys a high level of consumer brand awareness and loyalty.

Advertising

any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor set advertising objectives ***An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time -inform, persuade, or remind

Products

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Pricing Across Channel Lines

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade. Pricing practices across channel levels, such as retail price maintenance, discriminatory pricing, and deceptive pricing

Service Marketing

The promotion of economic activities offered by a business to its clients. Might include the process of selling telecommunications, health treatment, financial, hospitality, car rental, air travel, and professional services ***Services now account for almost 80 percent of the U.S. gross domestic product

multi channel distribution system

a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments

Services

a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

online advertising

advertising that appears while consumers are browsing online, including display ads, search-related ads, online classifieds, and other forms

Wholesaling

all the activities involved in selling goods and services to those buying for resale or business use ***Wholesalers buy mostly from producers and sell mostly to retailers, industrial consumers, and other wholesalers Selling and promoting: Wholesalers' sales forces help manufacturers reach many small customers at a low cost. The wholesaler has more contacts and is often more trusted by the buyer than the distant manufacturer. Buying and assortment building: Wholesalers can select items and build assortments needed by their customers, thereby saving much work. Bulk breaking: Wholesalers save their customers money by buying in carload lots and breaking bulk (breaking large lots into small quantities). Warehousing: Wholesalers hold inventories, thereby reducing the inventory costs and risks of suppliers and customers. Transportation: Wholesalers can provide quicker delivery to buyers because they are closer to buyers than are producers. Financing: Wholesalers finance their customers by giving credit, and they finance their suppliers by ordering early and paying bills on time. Risk bearing: Wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence. Market information: Wholesalers give information to suppliers and customers about competitors, new products, and price developments. Management services and advice: Wholesalers often help retailers train their salesclerks, improve store layouts and displays, and set up accounting and inventory control systems.

The Demand and Market

before setting prices, the marketer must understand the relationship between price and demand for the company's product. Pricing in Different Types of Markets - pure competition: he market consists of many buyers and sellers trading in a uniform commodity ***In a purely competitive market, marketing research, product development, pricing, advertising, and sales promotion play little or no role. -monopolistic competition: he market consists of many buyers and sellers trading over a range of prices rather than a single market price. ***Because there are many competitors, each firm is less affected by competitors' pricing strategies than in oligopolistic markets. -oligopolistic competition: the market consists of only a few large sellers. ***Because there are few sellers, each seller is alert and responsive to competitors' pricing strategies and marketing moves. -pure monopoly: the market is dominated by one seller

Building Strong Brands

brand positioning: Marketers need to position their brands clearly in target customers' minds. brand name selection: A good name can add greatly to a product's success. brand sponsorship brand development

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 Content Marketing: Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.

Product Line Decisions

consist of offering the right combination of products within a given line A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. product line length—the number of items in the product line. ***A company can expand its product line in two ways: by line filling or line stretching Product line filling involves adding more items within the present range of the line. Product line stretching occurs when a company lengthens its product line beyond its current range.

Person marketing

consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.

organization marketing

consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.

Product Mix Decisions

decisions about which products to sell and in what quantities *** A product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale. A company's product mix has four important dimensions: width, length, depth, and consistency. 1. width refers to the number of different product lines the company carries. 2. length refers to the total number of items a company carries within its product lines. 3. depth refers to the number of versions offered of each product in the line. 4. consistency of the product mix refers to how closely related the various product

Chapter 9: New Product Development and Product Life-Style Strategies

developing new products managing products through their life cycles.

Number of Channel Levels

direct marketing channels: no intermediary levels indirect marketing channels: containing one or more intermediaries.

Major Influences on Business Buyers

environmental, organizational, interpersonal, individual

Price Elasticity of Demand

how responsive demand will be to a change in price. *** If demand hardly changes with a small change in price, we say demand is inelastic. If demand changes greatly, we say the demand is elastic.

Business Buyer Behavior

refers to the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.

The New Product Development Process

idea generation: the systematic search for new product ideas. *** internal idea sources ***external idea sources *** crowdsourcing idea screening: helps spot good ideas and drop poor ones as soon as possible. Is it real? Can we win? Is it worth doing? concept development and testing: a detailed version of the new product idea stated in meaningful consumer terms - product idea: an idea for a possible product that the company can see itself offering to the market. - product concept: etailed version of the idea stated in meaningful consumer terms. - product image: the way consumers perceive an actual or potential product marketing strategy development: designing an initial marketing strategy for introducing this car to the market. 1. the target market; the planned value proposition; and the sales, market-share, and profit goals for the first few years. 2. outlines the product's planned price, distribution, and marketing budget for the first year 3. describes the planned long-run sales, profit goals, and marketing mix strategy business analysis: involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives. *****If they do, the product can move to the product development stage. product development: company growth by offering modified or new products to current market segments *****develop and test one or more physical versions of the product concept test marketing: the stage at which the product and its proposed marketing program are tested in realistic market settings. -controlled test markets: new products and tactics are tested among controlled panels of shoppers and stores. -simulated test markets: researchers measure consumer responses to new products and marketing tactics in laboratory stores or simulated online shopping environments. commercialization: introducing the new product into the market

Nature and Characteristics of Service

intangibility, inseparability, variability, perishability

Place marketing

involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places.

Brand Development

line extensions: occur when a company extends existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category. brand extensions: extends a current brand name to new or modified products in a new category. multi-brands: Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share. new brands: A company might believe that the power of its existing brand name is waning, so a new brand name is needed. Or it may create a new brand name when it enters a new product category for which none of its current brand names is appropriate.

Business Markets

many sets of business purchases were made for only one set of consumer purchases. ****Business markets operate "behind the scenes" to most consumers

New Product Pricing Strategies

market skimming pricing: setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price *** the company makes fewer but more profitable 1. product's quality and image must support its higher price, and enough buyers must want the product at that price. 2. he costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. 3. competitors should not be able to enter the market easily and undercut the high price. market penetration pricing: setting a low price for a new product in order to attract a large number of buyers and a large market share ***Companies set a low initial price to penetrate the market quickly and deeply—to attract a large number of buyers quickly and win a large market share. 1. the market must be highly price sensitive so that a low price produces more market growth 2. production and distribution costs must decrease as sales volume increases 3. the low price must help keep out the competition, and the penetration pricer must maintain its low-price position. ***Otherwise, the price advantage may be only temporary.

mobile marketing

marketing messages, promotions, and other content delivered to on-the-go consumers through mobile phones, smartphones, tablets, and other mobile devices

Chapter 11- Pricing Strategies: Additional Considerations

new product pricing product mix pricing price adjustments initiating and reacting to price changes

Supply Chain Management

outbound logistics (moving products from the factory to resellers and ultimately to customers) inbound logistics (moving products and materials from suppliers to the factory) reverse logistics (reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers)

Choosing Communication Channels and Media

personal and nonpersonal communication channels In personal communication channels, two or more people communicate directly with each other. Nonpersonal communication channels are media that carry messages without personal contact or feedback

email marketing

sending highly targeted, highly personalized, relationship-building marketing messages via email

Percentage of sales method

setting their promotion budget at a certain percentage of current or forecasted sales. based on the availability of funds rather than on opportunities. It may prevent the increased spending sometimes needed to turn around falling sales.

sales promotion

short-term incentives to encourage the purchase or sales of a product or service. ***buy now They are targeted toward final buyers (consumer promotions), retailers and wholesalers (trade promotions), business customers (business promotions), and members of the sales force (sales force promotions). Sales promotions are usually used together with advertising, personal selling, direct and digital marketing, or other promotion mix tools. Consumer promotions include a wide range of tools—from samples, coupons, refunds, premiums, and point-of-purchase displays to contests, sweepstakes, and event sponsorships. Samples are offers of a trial amount of a product. Coupons are certificates that save buyers money when they purchase specified products. Rebates (or cash refunds) are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. Price packs (also called cents-off deals) offer consumers savings off the regular price of a product. Premiums are goods offered either free or at low cost as an incentive to buy a product, Advertising specialties, also called promotional products, are useful articles imprinted with an advertiser's name, logo, or message that are given as gifts to consumers. Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of sale. Contests, sweepstakes, and games give consumers the chance to win something, such as cash, trips, or goods, by luck or through extra effort. Trade promotions can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. Business promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

Types of Retailers

specialty store department store supermarket convenience store discount store off-price retailer superstore Amount of Service ***self-service, limited service, and full service. Organizational Approach corporate chains: Macy's voluntary chains: Western Auto retailer cooperatives: Ace Hardware franchise organizations: subway

Major types of Buying Situations

straight rebuy: buyer reorders something without any modifications ***handled on a routine basis by the purchasing department *****"in" suppliers try to maintain customer engagement and product and service quality. "Out" suppliers try to find new ways to add value or exploit dissatisfaction so that the buyer will consider them. modified rebuy:buyer wants to modify product specifications, prices, terms, or suppliers. ***The "in" suppliers may become nervous and feel pressured to put their best foot forward to protect an account. "Out" suppliers may see the modified rebuy situation as an opportunity to make a better offer and gain new business. new task: A company buying a product or service for the first time ****marketer's greatest opportunity and challenge ***the greater the cost or risk, the larger the number of decision participants and the greater the company's efforts to collect information.

Supply Chain & Value Delivery Network

supply chain consists of upstream and downstream partners. Upstream from the company is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. Downstream marketing channel partners, such as wholesalers and retailers, form a vital link between the firm and its customers. supply chain/ demand chain ****identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value. Value Delivery Network: a network composed of company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.

supplier development

systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others

What is a Price?

the amount of money charged for a product or a service. ***price remains one of the most important elements that determine a firm's market share and profitability.

Participants in the Buying Process

the buying center: all the individuals and its that take play a role in the purchase decision-making process users: are members of the organization who will use the product or service. In many cases, users initiate the buying proposal and help define product specifications. influencers: often help define specifications and also provide information for evaluating alternatives. Technical personnel are particularly important influencers. buyers: have formal authority to select the supplier and arrange terms of purchase. deciders: have formal or informal power to select or approve the final suppliers. In routine buying, the buyers are often the deciders, or at least the approvers. gatekeepers: control the flow of information to others. For example, purchasing agents often have authority to prevent salespersons from seeing users or deciders. ***the size and makeup of the buying center will vary for different products and for different buying situations.

Business Buying Process

the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands

social marketing

the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well-being and that of society

Growing Importance of Retail Technology

they have adopted sophisticated systems for checkout scanning, RFID inventory tracking, merchandise handling, information sharing, and customer interactions.

Social Media Marketing

utilization of social media or social networks to market a product, company, or brand - targeted and personal -interactive -immediate and timely -real time marketing -cost effective -engagement and social sharing capabilities

Types of Decisions and the Decision Process

• Usually involves large sums of money • More technical information • More people in company involved ***The business buying process also tends to be longer and more formalized. ***detailed product specifications, written purchase orders, careful supplier searches, and formal approval the buyer and seller are often much more dependent on each other.