Exam 4: Ch. 11, 12, 13, 14 Flashcards

Question

Type of Channel | what step in Distribution Planning?

Answer 1

* Step 3: Distribution Strategy Conventional Marketing System Vertical Marketing System Horizontal Marketing System

Answer 2

* Step 3: Distribution Strategy | multilevel distribution channel in which members work independently of one another

Answer 3

* Step 3: Distribution Strategy channel in which there is formal cooperation among channel members at two or more different levels: manufacturing, wholesaling, and retailing * power, ownership, contracts = stronger ties * greater efficiency cooperation

Answer 4

* Step 3: Distribution Strategy two or more firms at the same channel level agree to work together to get their product to the customer ex. airlines

Answer 5

Step 3: Distribution Strategy Intensive Distribution Exclusive Distribution Selective Distribution

Answer 6

Step 3: Distribution Strategy Intensity * aims to maximize market coverage by selling a product through all wholesalers or retailer that will stock and sell the product * Convenience products

Answer 7

Step 3: Distribution Strategy Intensity * limit distribution to a single outlet in a particular region specialty products

Answer 8

Step 3: Distribution Strategy Intensity distribution using fewer outlets than intensive distribution but more than exclusive distribution "strike balance" ex. shopping products or "fashion"

Answer 9

* Step 4: Develop Distribution Tactics the ability of one channel member to influence, control, and lead the entire channel based on one or more sources of power * channel leader or Captain

Answer 10

* Step 4: Develop Distribution Tactics Channel Power * ability to control resources

Answer 11

* Step 4: Develop Distribution Tactics Channel Power * legal authority ex franchiser

Answer 12

* Step 4: Develop Distribution Tactics Channel Power * ability to give (hold) profitable products typically in exclusive distribution

Answer 13

the process of designing, managing, and improving the movement of products through a supply chain * plays a crucial role in firm efforts to deliver on their brand's promise

Answer 14

* all activities needed to turn raw materials into a product delivered to a customer * and some say dispose of the product

Answer 15

consideration regarding product returns, recycling, and material reuse, and waste disposal sustainability = competitive advantage

Answer 16

1) Order Processing 2) Warehousing 3) Materials Handling 4) Transportation 5) Inventory Control

Answer 17

Functions of Logistics activities between time an order comes in the product goes out automated with ERP software Enterprise Resource Planning Systems

Answer 18

Enterprise Resource Planning Systems a software solution that integrates information from across the entire company, including finance, order fulfillment, and transportation

Answer 19

Functions of Logistics * storing goods in anticipation of sale or transfer to another member of the channel of distribution * provide "time utility" to consumers

Answer 20

Functions of Logistics | moving of products into, within, and out of warehouses

Answer 21

Functions of Logistics the mode by which products move among channel members * a compromise between minimizing cost and providing the service customer want

Answer 22

Function of Logistics * means developing and implementing a process to ensure that the firm always has sufficient quantities of goods available to meet customers' demands - no more no less

Answer 23

inventory management and purchasing processes that manufacturers and re-sellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed

Answer 24

Inventory Turns the number of times a firm's inventory completely cycles through during a defined time frame * inventory turnover x annual cost of sales / average inventory level for the period

Answer 25

1) Dependability * deliver safely and on time 2) Cost 3) Speed of Delivery 4) Accessibility * # of different locations carrier serves 5) Capability * handle a variety of different products 6) Traceability * locate goods in shipment

Answer 26

1) Railroads 2) Water 3) Trucks 4) Air 5) Pipeline 6) The Internet

Answer 27

selling products to consumers for consumers' end use * provides time, place, and ownership utility * final stop on the distribution path

Answer 28

1) Economic Conditions 2) Demographics and Cultural Change 3) Technology 4) Globalization

Answer 29

a total set of all products offered by a retailer, including all product lines to all consumer groups

Answer 30

Breadth - the number of different product lines available * narrow vs broad assortment Depth - variety of choices available for each specific product line *Shallow vs Deep Assortment

Answer 31

trade off between services and low prices 1) Self Service Retailers - Sams Club * product selection w/o assistance 2) Limited-Service - Walmart, Target * fall between 3) Full-Service - Bloomingdales, Nordstrom * provide supporting services, gift wrapping 4) No-Service * vending machines

Answer 32

retailers that offer a broad assortment of items at low prices with minimal service ex. target, kmart, walmart

Answer 33

carry a moderate selection of limited product lines with many items in larger than normal sizes

Answer 34

a discount retailer, owned by a manufacturer and normally found only in outlet malls, that sells defective merchandise and excess inventory Limited selection from a single manufacturer

Answer 35

* sell a broad range of items and offer a deep selection organized into different departments * full service US department stores have struggled in recent years not the case globally

Answer 36

retailers with the characteristics of both warehouse stores and supermarkets * several times larger than other stores and offer virtually everything from grocery items to electronics

Answer 37

Category Specialist a very large specialty store that carries a vast selection of products in its category ex. best buy, home depot

Answer 38

popup stores that "pop up" one day and then disappear after a period of one day to a few months * build consumer interest "buzz", testing locations

Answer 39

any method a firm uses to complete an exchange that does not require a customer to visit a store * Direct Selling - door to door, parties, multilevel networks * automatic vending or B2C E Commerce

Answer 40

occurs when a salesperson presents a product to one individual or a small group, take orders, and delivers the merchandise

Answer 41

a system in which a master distributor recruits other people to become distributors, sells the company's product to the recruits, and receives a commission on all the merchandise sold by the people recruited

Answer 42

contain computer brains that collect sales data and connect directly to the store's inventory-control system

Answer 43

involve both customers and employees * Shoplifting * Employee Theft * Retail Borrowing * Ethical treatment of customers * customer profiling * sale of harmful products

Answer 44

stock losses due to shoplifting, employee theft, damage to merchandise, and a variety of errors

Answer 45

individuals steal goods from a retailer while pretending to be a customer

Answer 46

the consumer practice of purchasing a product with the intent to return the non defective merchandise for a refund after it has fulfilled the purpose for which it was purchased

Answer 47

the act of tailoring the level of customer service basd on a customer's percieved ability to pay

Answer 48

experience based products

Answer 49

acts, efforts, or performances exchanged from producer to user without ownership rights * account for 4 our of every 5 jobs in the US and nearly 80% of GDP * targeted towards both consumers and organizations * services are ... intangible, perishable, Variable, and Inseparable

Answer 50

Characteristic of Services | * customers can't see, touch, or smell good service

Answer 51

Characteristic of Services | * makes it impossible to store for later sale or consumption

Answer 52

* Characteristic of Services | * means that even the same service performed by the same individual for the same customer can vary

Answer 53

Characteristic of Services | * means that is is impossible to separate the production of a service from the consumption of that service

Answer 54

the actual interaction between the customer and the service provider

Answer 55

the environment in which a service is delivered and where the firm and the customer interact * the actual physical facility where the service is performed, delivered, and consumed

Answer 56

* a multiple-item scale used to measure service quality across dimensions of tangibles, reliability, responsiveness, assurance, and empathy

Answer 57

* gaining market share for a concept, philosophy, belief, or issue ex. religious institutions market ideas about faith * consumers often do not perceive the value they receive when they conform with an idea or fail to believe an idea is worth its ultimate cost

Answer 58

1) Informs ... consumers about new goods and services 2) Reminds ... consumers to continue using certain brands 3) Persuades ... consumers to choose one brand over others 4) Builds ... relationships with customers

Answer 59

strategic business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences * aim is to deliver consistent messaging across platforms

Answer 60

marketing communication strategy where marketers combine traditional advertising, sales promotion, and public relations activities with online buzz building activities * in the "always on" digital world, IMC uses multichannel promotion that combines traditional marketing communication with social media and other online activities

Answer 61

Three Models of Marketing Communication | * model is the traditional form of mass communication whereby a broadcaster sends a message to a very large audience

Answer 62

Three Models of Marketing Communication * format describes messages that are up close and personal * oldest way to communicate

Answer 63

Three Models of Marketing * format describes the social media revolution that allows almost everyone to engage in a constant conversation with almost everyone else

Answer 64

1) Source - individual, company 2) Encoding - translating an idea into a form of communication 3) Message - advertising, PR, Sales Promo 4) Medium - magazine, television, radio 5) Decoding - receiver assigns meaning to a message - translate message into an idea that makes sense to him/her 6) Receiver - consumer * Noise - affects all 6 + feedback, competing messages * Feedback - purchase data, product awareness, brand loyalty - from receiver to source

Answer 65

even color and font carries a message. all these should be coordinated to reinforce the brand 1) Intensity - more intense means more attention, therefore more comprehension 2) Color - colors carry meaning 3) Font - 4) Numbers (codes) Mazda R8 5) Spacing - intervals between repeats

Answer 66

* communication elements the marketer controls 1) Mass (one-to-many) communication includes advertising, sales promotion, and public relations 2) Personal (one-to-one) communication includes personal selling, and direct marketing

Answer 67

``` extent of marketers control over communication Highest to Lowest but increased Credibility 1) Advertising 2) Sale Promotion 3) Personal Selling 4) Direct Marketing 5) Public Relations 6) Word of Mouth ```

Answer 68

1) Identify the Target Audiences 2) Establish the Communication Objectives 3) Determine and Allocate the Marketing Communication Budget 4) Design the Promotion Mix 5) Evaluate the Effectiveness of the Communication Program

Answer 69

Identify the Target Audiences * often you communicate not just to consumer but others. Other stakeholders influence consumers and may require different messages.

Answer 70

Step 2: Establish the Communication Objectives * a series of steps prospective customers move through, from initial awareness of a product to brand loyalty Awareness - Knowledge - Desire - Purchase - Loyalty

Answer 71

Determine and Allocate Marketing Communication Budget Decision 1: set a total marcomm budget Decision 2: decide on a push / pull strategy Push: convince channel members to offer Pull: creating consumer demand, popularity convinces retailers to carry product Decision 3: Allocate spending to specific activities

Answer 72

``` Design the Promotion Mix * most complicated step determine specific communication tools to use * Communication Goals (AIDA Model) Attention, Interest, Desire, Action ```

Answer 73

non-personal communication from an identified sponsor using mass media * practice dates to ancient Greece and Rome, along with flying * changes in media landscape have slowed growth of traditional advertising * but mass communication remains the best way to reach a large audience

Answer 74

1) Product Advertising * message focuses on a specific good or service 2) Institutional Advertising * promotes activities, personality, or point of view of the firm * corporate advertisement promotes company as a whole * Advocacy Advertising influence public opinion * Public Service Advertisements (PSAs) 3) Retail and Local Advertising * tells info: store hours, location, available products, and sales

Answer 75

Consumer-generated Media | * Includes the millions of online consumer comments, opinions, advice, consumer-to-consumer discussion, reviews, etc.

Answer 76

Create the Ads Creative Strategy - the process that turns a concept into an advertisement Creative Brief - guideline or blueprint for the marketing communication program that guides the creative process and is a summary the results of the creative strategy

Answer 77

``` Step 3 - Create the Ads Pick from 3 general components 1) Ad's Appeal * informational, emotional, Unique 2) Content Format * Comparison, Demonstration, Testimonial 3) Ad's Tone * Straightforward, Dramatic, Romantic, Fear ```

Answer 78

Step 4 - Pretest what the Ads will say * advertisers try to minimize mistakes by getting reactions to ad messages before they actually place them * data from pretesting research come from either quantitative or qualitative sources * social media and rapid response has made this more difficult in some channels

Answer 79

correlation between cost and Reach * Newspaper - Magazine - Radio - TV Step 5: Choose Media Type(s) and Media Schedule Continuous - Pulsing - Flighting Schedules

Answer 80

Evaluate the Advertising | Posttesting

Answer 81

Television Radio Newspaper Magazines

Answer 82

1) Owned Media * internet sites, such as websites, Facebook, and twitter accounts that are owned by an advertiser 2) Paid Media * the most similar form to traditional media, includes display ads, sponsorships, and paid key word searches on search engines such as google 3) Earned Media * refers to word of mouth or buzz created by consumers themselves on social media

Answer 83

1) Banners * rectangular graphics at the top or bottom of web pages, were the first form of web advertising 2) Buttons * are small banner-type advertisements that a company can place anywhere on a page 3) Pop-up Ad * an advertisement that appears on the screen while a web page loads or after is has loaded 4) Pre-roll Ads * video messages that play before the content the user has selected

Answer 84

1) Continuous Schedule * maintains a steady stream of advertising throughout the year *usually done by large brands 2) Pulsing Schedule > varies the amount of advertising throughout the year based upon when the product is likely to e in demand. > usually done for larger brands of seasonal products 3) Flighting > advertising that appears in short bursts with periods of little or no activity > often used by smaller companies

Answer 85

plan for what media to use and when

Answer 86

percentage of the target market exposed to the medium

Answer 87

average number of times a person in the target group will be exposed to a message

Answer 88

compares effectiveness of different media | average reach x frequency

Answer 89

is the cost to deliver a message to 1,000 people or homes

Answer 90

programs designed to build interest in, or encourage purchase of, a product during a specified period

Answer 91

> both are paid promotional activities with identifiable sponsors > Sales Promotions typically have a more immediate short-term objective (are often price based)

Answer 92

1) Provide Financial Incentive > Push money, Allowances, Discounts, Deals, Co-o advertising 2) Increase Visibility > Incentive Programs, Point of Purchase displays, Promotional Products, Trade Shows

Answer 93

> internet based platforms that allow users to create their own content and share it with others who access these sites > marketers aren't the only ones who talk about their products > many-to-many (viral) communication model is based on consumers talking to one another about goods, services, and organizations, but marketers are part of the "conversation"

Answer 94

WOM - information about products, services, and experience that is transmitted from consumer to consumer > social media makes it easier for a marketer to spread a message, but bad news travels faster too

Answer 95

Organic Word of Mouth | Consumers spread information naturally

Answer 96

Amplified Word of Mouth | WOM is "helped along" by marketers

Answer 97

integrate GPS technology that enables users to alert friends of their exact location via their mobile phones

Answer 98

a form of one-to-one marketing communication, refers to "any direct communication to a consumer or business recipient that is designed to generate a response on the form of an order, a request for further information, or a visit to a store or other place of business for purchase of a product.

Answer 99

1) Mail Order > sends either a catalog (many goods) or pamphlet (one or few goods) to elicit sales 2) Telemarketing > places phone calls to clients home (and mobile) phones to pitch a product (transactional) or enhance relationship 3) M-Commerce > uses SMS or other mobile messaging to convey an offer 4) Direct Response > allows consumers to respond to an offer. Short commercials (direct-response TV) or infomercials are typical all but direct response can be potentially abused with some form of "spam" or "junk mail"

Answer 100

when a company rep interacts directly with a prospective customer to communicate about a product > far more intimate form of promotion compared to mass media material > salespeople are the eyes and ears of firm > lots of jobs in sales "selling through the retailer" > important when firm engages in a "push" strategy - push the product through channel distribution

Answer 101

> an approach that focuses on making an immediate sale with little concern for developing a long-term relationship with the customer

Answer 102

the process by which a salesperson secures, develops, and maintains long-term relationships with profitable customers

Answer 103

1) Awareness Stage - Get Traffic - Brand Awareness 2) Consideration Stage - Get Leads - Lead Generation 3) Decision Stage - Get Sales - Lead Generation 4) Retention Stage - Retention - client Nurturing

Answer 104

process of seeking out potential customers, analyzing needs, determining how product attributes might provide benefits for the customer, and then communicating that information

Answer 105

Prospect and Qualify > salesperson qualify a customer on the basis of financial ability, volume of business, special needs, location, and growth possibilities

Answer 106

Preapproach | > compile background information and prospective customers and plan the sales interview

Answer 107

Approach > meet customer for the first time > contact the prospect, learn more about the prospects needs, create a good impression, and build rapport

Answer 108

Sales Presentation | > lays out the benefits of the product and its advantages over the competition

Answer 109

Handle Objections | > anticipate objections - reasons why prospect is reluctant to make a commitment

Answer 110

Close the Sale > a point in the sales call at which one or the other party must move toward gaining commitment to the objectives of the call

Answer 111

Follow Up | > salesperson reviews the points of agreement with the customer

Answer 112

efforts that go into selling, such as the number and type of sales calls, expense account management, and a variety of nonselling activities, such as customer follow-up work and client service

Answer 113

the results of the salesperson's efforts

Answer 114

> communication function that seeks to build good relationships with an organization's public stakeholders > Basic Goal: do something good and then talk about it > Marketers create and manage publicity, which is unpaid (earned) media exposure about a company > crisis management - process of managing firm reputation in face of a negative event (special case of PR)

Answer 115

PR strategies are best used with other promotion mix elements > PR counted on to achieve objectives like ... 1) introduce - products to retailers and consumers 2) Influence - government legislation 3) Enhance - organizational image 4) Manage - a crisis 5) Call Attention - to a firm's community involvement > PR is usually a part of effective IMC

Answer 116

means talking with and providing information to government officials to persuade them to vote a certain way on pending legislation or even to initiate legislation or regulations that would benefit the organization

Answer 117

PR specialists provide input on materials such as logos, brochures, building design, and even stationary

Answer 118

> typically "ambushes" customers with promotional content in places they don't expect to encounter such messages

Answer 119

> having consumers spread marketing messages through their online conversations

Answer 120

when consumers are unaware they are being marketed to. Considered unethical

Exam 4: Ch. 11, 12, 13, 14 Flashcards

(144 cards)