9-12

Question 1

what is a channel

Answer 1

path that enables products and services to flow from producers to end users

Question 2

value delivery network

Answer 2

company, suppliers, distributors, and customers partner to improve performance of entire system

Question 3

3 types of channel functions

Answer 3

transactional (buying, selling, risk taking, (agent and brokers)

Logistical (transporting, storing, sorting, “breaking bulk”, creating assortments) (distributors, wholesalers, retailers)

Facilitating (financing, payment processing, shipping, information/research, testing/inspecting, promoting) (facilitating and logistical agents)

Question 4

4 step consumer channel

Answer 4

producer, wholesaler, retailer, consumer

Question 5

4 step business channel

Answer 5

producer, manufacturer’s sales branch, business distributor, business customer

Question 6

density of coverage

Answer 6

intensive (all possible), selective, exclusive (single)

Question 7

brand portfolios enhance

Answer 7

coverage

Question 8

trends

Answer 8

disintermediation, “downstream power shifts”, tech sophistication in order fulfillment and customer service, omnichannel distribution to reach different customers

Question 9

disintermediation

Answer 9

move towards direct to consumer, hybrid systems, e-commerce, reduces channel conflict

Question 10

integration (vertical marketing system (VMS))

Answer 10

combining successive stages of production and distribution under single ownership

Question 11

corporate vs administered vms

Answer 11

luxottica vs zara

Question 12

li and fung

Answer 12

flat world philosophy- own nothing

Question 13

advantages to retail

Answer 13

low barrier to entry, replication and scale, cash flow and growth

Question 14

key retailing metrics

Answer 14

total revenue - top line, revenue per square foot, gross margin (%), inventory turn: short head (popular, fast turnover) vs long tail (slower turning, less popular)

Question 15

wal mart

Answer 15

geographic segmentation, tight control of dist. channels, EDLP, agent for customers (reduce cost of living)

Question 16

whole foods

Answer 16

separate segment from wal mart - wealthy, liberal, higher margins and revenue per square foot

Question 17

store brand strategies

Answer 17

inferior goods (generics, lesser quality at lower price)

exploit installed base (parity quality at value price, me-too store brands),

private label, (exclusive brands offering unique quality as good or better than category leader, proprietary brand (trader joes))

Question 18

retailers want to create brands

Answer 18

private label greater profit opportunity, differentiation, bargaining clout with national suppliers, reduced double marginalization

nice! walgreens

Question 19

brands want to become retailers

Answer 19

retail stores are giant billboards, greater market coverage, control over brand message, full product line offering, reduction in double marginalization

Question 20

Integrated marketing communications: communications mix

Answer 20

advertising, sales promotion, personal selling, PR, word of mouth (high to low control)

Question 21

why IMC

Answer 21

extend brand relationship, improve effectiveness of marketing tactics, increase relevance of message, manage marketing resources, drive results and ROI

Question 22

Paid, owned, earned media

Answer 22

PAID: print, TV, mags, cinema, outdoor, DM, in store (strangers)

OWNED: brochures, stores, website, facebook fan page, apps (customers)

EARNED: word of mouth, social media, blogs/forums (fans and skeptics)

Question 23

5 M’s

Answer 23

motivation (objectives), money (budget), message, media, metrics (evaluation)

Question 24

advertising objectives

Answer 24

build awareness, strengthen preference, incite action

inform (awareness and value), persuade (drive decision), remind (value prop top of mind)

Question 25

budget

Answer 25

top-down method best benchmark
(1% on commodities, commercial equip,
>10 for toys, liquor)

parity - relative to competitors

objective and task: bottom up, spend to achieve objective

Question 26

message: the creative brief

Answer 26

background/ overview (key facts)
objectives
target audience
competitive positioning
key promise
supporting facts
creative considerations

Question 27

total media add spending

Answer 27

increasing

Question 28

media metrics

Answer 28

Reach = % of target market
frequency = # of impressions
GRP = gross ratings points (mean reach x frequency)
CPM = cost per mille impressions
CTR = click through rate
CPA = cost per acquisition
ROI = Return on Investment
ROO = return on objective

Question 29

super bowl ad

Answer 29

largest CPM - $44.64

Question 30

Digital Media

Answer 30

SEO search engine optimization (organic search) vs SEM search engine marketing (PPC pay per click)

Question 31

Digital Media advantages

Answer 31

selective targeting, user selects info, interactive, direct response, data/metrics

Question 32

Disadvantages

Answer 32

fragmented / limited reach
attribution
limited creative
privacy and ethics

Question 33

Media campaign metrics

Answer 33

recall
surveys
tracking
sales and lift analysis

Question 34

attribution

Answer 34

not sure where causality of sale, conversion, acquisition occurs

weaknesses of last touch/click

surveys, unique codes and URLS, behavioral tracking, hold out geographies

models: interactive and cross-channel

Question 35

touchpoints -> behavior - > purchase

Answer 35

online, tv, tablet, mobile

search, website, store

e-purchase, in-store purchase

Question 36

Nielsen Single Source

Answer 36

Watch: tv box

Buy: loyalty shopper program with UPC level data, 125 million credit card holders

single source: measuring media exposure and transaction information for the same people

Question 37

IMC

Answer 37

advertising, sales promotion, personal selling, PR, word of mouth