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Flashcards in Chapter 15 Deck (95):
1

Objectives Guide Implementation

Awareness => Internet => Evaluation and Trial => Decision -> confirmation

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2 types of advertising

Product advertising

Institutional advertising

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3 types of product advertising

Pioneer advertising

Cometitive advertising

reminder advertising

4

3 types of competitive advertising

Direct

Indirect

Comparative

5

Life Cycle Stages

Market Introduction

Market Growth

Market Maturity

Sales Decline

6

Risks of comparative advertising

Annoy your consumer

Tarnish your image

Illegal in some countries

7

Measuring Advertising is Not easy

Awareness

trial

Preference

Use

New media metrics

perceptions

mesage/ ad content

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Research Assessment

Success depends on the total marketing mix, not just promotion

- the effectiveness of promotion is hard to seperate from the effects of the other elements of the mix

ex. a great advertisement cannot be faulted for failing to sell a poorly deisnged product

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Advertising Regulation

Federal Trade Commission controls unfair or deceptive advertising

- can require corrective advertising

- focus is on what is deceptive, instead of what is subjectively defined as unfair

Comparative advertising claims may need to be sustained

- rules are not always clear

- hard to define exactly what research is needed

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Puffery

Puffery protects marketers whose claims are either so excessive they are clearly not expected to be believe, or so generic they have no substantive meaning

"Better, best, greatest, finest"

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Weasel words

Used in advertising to make a claim look legitimate to the casual listener or reader

Proves to be empty and meaningless

help control acne


helps, acts, works, can be, up to, as much as, refreshes, comforts, fights

12

Deception

Causes consumers to have a false belief about the advertiser's or competitor's product

Deception is material

Someone has been or is likely to be hurt

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Generation Y

Millenials

Digital natives

text preference

1-3 talk about a brand online monthly

2/3 say they participate in one or more content creating activities on the internet

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Gen Y more characteristics

Ad savy/skeptics

Multi taskers

Open to new ideas and trying new products

15

PR

More cost effective

Greater longevity

Has a far wider audience

Credability

16

Extend your marketing tactics with a PR plan

Social networking

Crowd power

Guerilla Marketing

Viral marketing

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Sales Promotion

Other than advertising that stimulate interest, trial, or purchase

May be targeted at channel members, final customers or users, or employees

Sales promotion spending is increasing

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Key problems in managing sales promotions

Erodes brand loyalty

not for amateurs

need for alternatives

hard to manage

19

Advertising objectives

Specific

measurable

attainable

relevant to the target

timely

link to marketing strategy

link to promotion

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Ad agencies

Specialists in planning and handling mass selling details for advertisers

15% is not required, but still common

Some services are provided on a fee basis

increased use of performance-based pay

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Product advertising

Tries to sell a product

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Institutional advertising

which promotes an organization's image, reputation, or ideas rather than a specific product

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Pioneer advertising

Tries to develop primary demand for a product category rather than demand for a specific product

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Competitive advertising

Tries to develop selective demand for a specific brand

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Direct type

aims for immediate buying action

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Indirect type

points out product advantages to affect future buying decisions

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Comparative advertising

Means making specific brand comparrisons using actual product names

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Reminder advertising

Tries to keep the product's name before the public

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Advertising allowances

price reductions to firms further along in the channel to encourage them to advertise or otherwise promote the firm's products locally

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Cooperative advertising

Involves producers sharing in the cost of ads with wholesalers or retailers

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Copy thrust

What the words and illustrations should communicate

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Advertising agencies

Specialists in planning and handling mass-selling details for advertisers

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Corrective advertising

ads to correct deceptive advertising

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4 critical advertising and promtion decisions a marketing manager must make:

1. advertising objectives and what they want to achieve

2. who the target audience

3. what kind of advertising to use

4. which media to use to reach target customers

5. what to say (copy thrust)

6. who will do the work - the firm's own marketing or advertisnig people our otuside agnecies

 

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Why is it important for advertising objective be specific?

Every ad campaign should have clearly defined objectives

The marketing manager must decide exactly what advertising should do

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Advantages of advertising allowances and cooperative advertising

coordination and integration of messages in the channel

allowances dont ensure coorporation

37

Vertical coordination examples

advertising allowances

cooperative advertising

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Criteria when deciding the best advertising medium to use?

depends on:

1. your promotion objectives

2. what target markets you want to reach

3. the funds available for advertising

4. the natuer of the media - icnluding who they reachm, with what frequency, with what impact, and at what cost

39

AIDA model

getting attention

holding interst

arousing desire

obtaining action

40

Supply Chain

The complete set of firms, facilities, and logistics activities involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers. Focus on information flows

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Goal of Supply Chain

Right Product. Right Quantity. Right Place, Right Time

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Rankings based on:

Peer opinion

Gartner Opinion

3-year weighted ROA

Inventory Turns

3- year weighted revenue growth

43

Takeaway of supply chain rankings:

Takeaway: leading global brands are leaders in supply chain management

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Supply Chain is Good for the World

Source Sustainable Materials

transport efficiently

recycle via reverse logistics

create what people will buy "reduce waste"

supply chain = sustainability

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What does a supply chain look like?

supplier - manufactuer - wholesaler/distributor - retailer - consumer

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supply chain is all about tradeoffs

cost - speed- quality

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Operations Research

The academic discipline of studying how analytical methods can be used to make better decisions

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Linear Optimization

A widely used technique to find an optimal solution using  aset of algebraic equations

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ERP Enterprise Resource Planning

Provides a real time view of core business processes using common databases

track business resources - cash, faw materials, production - and the status of business commitments: orders, purchase orders and payroll in one single application

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A systems Approach

1. Know your Target Market

2. focus on total cost

51

5 major transportation modes

rail

truck

water

pipelines

air

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Why do we have inventory?

needed when production doesnt match consumption

keep prices steady

achieves production economies of scale

builds channel flexibility

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Total Inventory Cost

Cost of storage facilities

handilng costs

cost of damage while in inventory

cost of risks

cost of inventory becoming obsolete

interest expense & opportounity cost

cost of storage facilities

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Place

Making goods and services available in the right quanties and locations, when customers want them

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Channel of distribution

any series of firms or individuals who participate in the flow of products from producer to final user or consumer

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Direct marketing

direct communication between a seller and an individual customer using a promotion mehtod other than face to face seling

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disrepancy of quantity

difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want

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Discrepancy of assortment

The difference between the ilnes a typical producer makes and the assortment final consumers or users want

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Regrouping activities

Adjust the quantities or assortments of products handled at each level in a channel of distribution

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Accumulating

Involves collecting products from many small producers

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Bulk breaking

involves dividing larger quantities into smaller quantities as products get closer to the final market

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Sorting

Seperating products into grades and qualities desired by different target markets

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Assorting

Putting together a variety of products to give a target market what it wanst

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Traditonal channel systems

The various channel members make little or no effort to cooperate with each other

65

Channel captain

A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflcts

66

Vertical marketing systems

Channel systems in which the whole channel focuses on the same target market at the end of the channel

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Corporate channel systems

corporate ownership all along the channel

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Vertical integration

acquiring firms at different levels of channel activity

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Administered channel systems

the channel members informally agree to cooperate with each other

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contractual channel systems

the channel members agree by contract to cooperate with each other

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ideal market exposure

Make a product available widely enough to satisfy target customers needs but not exceed them

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Intensive distribution

selling a product through all responsible and suitable wholesales or retailers who will stock or sell the product

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Selective distribution

selling through only those intermediairies who will give the product special attention

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Exclusive distribution

selling through only one intermediary in a particualr geographic area

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multichannel distribution

occurs when a producer uses several competing channels to reach the same target market - perhaps using several intermediaires in addition to selling directly

76

reverse channels

channels used to retrieve products that customers no longer want

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exporting

selling some of what the firm produces to foreing markets

78

Licensing

selilng the right to use some process, trademark, patent, or other right for a fee or royalty

79

Management contracting

means that the seller provides only management and marketing skills - others own the production and distribution facilities

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joint venture

a domestic firm enters into a partnership with a foreign firm

81

direct investment

means that a parent firm has a division in a foreign market

82

Logistics

The transporting, storing, and handling of goods in ways that match target customers' needs with a firm's marketing mix - both within individual firms and along a channel of distribution

83

Physical distribution (PD)

Another common name for logistics

84

Customer service level

How rapidly and dependably a firm can deliver what they, the customers, want

85

Physical distribution conept

Says that all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level

86

Total cost approach

evaluating each possible PD system and identifying all of the costs of each alternative

87

supply chain

the complete set of firms and facilities and logistics activiteis that are involved in procuing materials, transforming them into finished products, and distributing  them to customers

88

Electronic data interchange (EDI)

an approach that puts information in a stnadardized format easily shared between different comuter systems

89

Transporting

The marketing function of moving goods

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Containerization

grouping individual items into an economical shipping quanity and selling them in protective containers for transit to the final destination

91

piggyback service

means loading truck trailers, or flatbed trailers carryiing containers, on railcars to provide both speed and flexibility

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private warehouses

storing facilities owned or leased by companies for their own use

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public warehouses

independent storing facilities

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distribution center

a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs

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