MKTG 3600 Exam 3
List four primary characteristics of Direct Marketing
(direct mail, catalogs, online marketing, telephone marking- all examples of different marketing techniques) 4 primary characteristics: -nonpublic -immediate -customized -interactive
Define Regional Shopping Center
(shopping center- a group of retail businesses build on a site that is planned, developed, owned and managed as a unit) Regional Shopping Center: the largest and most dramatic shopping center has from 50 to more than 100 stores, including 2 or more full line department stores.
What is the difference between a discount store and an off-price store?
Discount store: A store that carries standard merchandise sold at lower prices with lower margins and higher volumes. EX- Walmart, Target, Kohls Off-Price Store: A store that sells merchandise bought at less than regular wholesale prices and sold at less than retail. These include factory outlets owned and operated by manufactures. independent off price retailers owned and run by entrepreneurs or by divisions of larger retail corporations. (warehouse). EX-Mikasa (factory outlet) TJ Maxx (independent off price retailer) Costco (warehouse club).
How does a Drop Shipper operate?
Do not carry inventory or handle product. On receiving an order, drop shippers select a manufacturer, who then ships the merchandise directly to the customer. Drop shippers operate in bulk industries such as coal, lumber and heavy equipment.
How can advertising accomplish Frequency and Reach?
Frequency: Measure of how many times the average person in the target market is exposed to the message (EX- advertiser might want an average exposure frequency of three) Reach: Is a measure of the percentage of people in a target market who are exposed to the ad campaign during a period of time. (EX-70% target market last month)
Explain informative, persuasive, and reminder advertising
Informative Advertising: building customer value, building a brand and company image, telling the market about a new product, explaining how a product works Persuasive Advertising: Building brand preference, encouraging switching to a brand, changing customer perceptions of product value, persuading customers to purchase now and tell others about the brand. Reminder Advertising: Maintaining customer relationship, reminding consumers that the product may be needed in the near future, reminding consumers where to by the product.
What does IMC mean?
Integrated Marketing Communications: Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message abut the organization and its products.
What is non-store retailing?
Internet, house parties, catalogues
Classify retailers by these methods: level of service:
Level of Service: -Self Service: retailers serve customers who are willing to perform their own "locate-compare-select" processes to save money (Target, Kohls) -Limited Service: retailers provide more sales assistance because they carry more shopping goods about which customers seek information (Sears, JCpennys) Full Service: retailers usually carry more specialty goods for which customers need or want a lot of assistance or advice (tiffany, Nordstrom)
Define CPM and which of the promotional tools has the highest CPM
Measuring the cost per thousand viewer in any medium.
Which group of wholesalers is divided into two groups: Full-service and Limited-service?
Merchant Wholesaler: Full Service: -Wholesale merchants -Industrial Distributors Merchant Wholesaler: Limited Service: -Cash and carry wholesalers -Truck wholesalers -Drop Shippers -Producers cooperatives -Mail-order wholesalers
What is the difference between Merchant Wholesalers and Agents/Brokers?
Merchant Wholesalers: are independently owned businesses that take title to the merchandise they handle. They are full-service and limited-service jobbers, distributors, and mill supply houses. Agent/Brokers: both perform wholesaling functions. They facilitate buying and selling, on commission of 2 percent to 6 percent of the selling price and generally specialize by product line or customer type. Brokers bring buyers and sellers together and assist in negotiation;
Of the Sales Promotion methods, which is most expensive? which is most effective?
Most Expensive: Personal Selling Most Effective: Personal Selling ( at certain stages of the buying process: building up buyers)
What is Scrambled Merchandising?
Offering several, unrelated product lines in a single store; hypermarket.( department stores, specialty stores, drugstores)
When producers promote to the trades, are they doing a PUSH or a PULL promotion?
PUSH. Push: the sales force and trade promotion are used to push the product through channels. The producer promotes the product to channel members who in turn promote it to the final consumers. (EX- john does very little promoting for his lawn mowers, instead johns sales force works with Home Depot, Lowes, to push his product). Pull: company spends a lot of money on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel. (EX-john promotes his product through facebook, youtube, tv- if consumers like his product they will demand it to retailers such as walmart, walgreens, etc).
What is Continuity and Pulsing in advertising?
Pattern of running ads: Continuity: Scheduling ads evenly within a given period Pulsing: Scheduling ads unevenly over a given period of time
What is the difference between a Power Center and a Lifestyle Center?
Power Center: Huge unenclosed shopping centers consisting of a long strip of retail stores, including large freestanding stores, such as walmart, best buy. etc. Lifestyle Center: Smaller, open-air malls with upscale stores, convenient locations, and nonretail activities, such as playground, skating rink, hotel, dining, movie theatre
What are the media choices in Advertising?
television, newspapers, internet, direct mail, magazines, radio, outdoor
What are the five major tools of a Promotional Mix? What are the advantages/disadvantages of each?
-Advertising-(can reach masses of geographically buyers at a low cost per exposure, can repeat a message many times, consumers view advertised products as more legitimate, is impersonal, one way communication, can be very costly for some media types) -Personal Selling-(involves personal interaction between 2 or more people, most effective tool at building preferences:convictions: and actions, allows relationship building and two way communication, requires long term commitments, most expensive promotion tool) -Public Relations-(Very believable, reaches people who avoid salespeople ads, can dramatize a company or products, tends to be used as an afterthought, planned use can be effective and economical)-- news speeches, special events -Direct Marketing-(Many forms of direct marketing exists, direct marketing forms share 4 characteristics: nonpublic-immediate-customized-interactive, Suited to highly targeted marketing) -Sales Promotion-(wide assortment of tools, attracts consumer attention, can be used to dramatize product, offers strong incentives to buy, invites and rewards quick consumer response, effect are short lived)
How does a Manufacturer's Agent operate?
Represents two or more manufacturers of complementary lines. Often used in such lines as apparel, furniture, and electrical goods. A manufacturers agent is hired by small manufacturers who cannot afford their own field sale forces and by large manufacturers who use agents to open new territories or cover territories that cannot support full time sales people
List the functions that wholesalers perform
Selling and promoting Buying and assortment building Bulk-breaking Warehousing Transportation Financing Risk bearing Market information Management services and advice
How does a Rack Jobber operate?
Serve grocery and drug retailers, mostly in nonfood items. Sends delivery trucks to stores, where the delivery people set up toys, paperbacks, hardware items, heath and beauty aids, or other items. They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records.
Classify retailers by these methods: product lines:
Specialty Stores Department Stores Supermarkets Convenience Store Superstore Service Center
Define Category Killer
Stores that have large assortments and low prices in a specific product category. they drive less specialized retailers out of competition.
Is Public Relations free advertising? what is?
Strong impact on public awareness at a much lower cost than traditional advertising. A company does not pay for the space or time in the media. Rather it pays for staff to develop and circulate information and manage events.
How does a Truck Jobber operate? How is that different from Cash-and-Carry wholesalers?
Truck Jobber: perform primarily a selling and delivery function. carry a limited line of semi perishable merchandise (milk, bread, snack foods) which is sold for chase as deliveries are made to supermarkets, small groceries, hospitals, restaurants, factory cafeteria and hotels. Cash-and-carry: carry a limited line of fast-moving goods and sell to small retails for cash. Normally do not deliver.
Define Factory Outlet
an off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturers surplus, discontinued, or irregular goods.
What are the things you can do for Sales promotion?
coupons, contest, discounts, premiums. (you want to create something that encourages a quick response) something the speaks :Buy it now!
