BU352 - CH 13,14 Flashcards
What types of retailers are available to distribute products?
1) Food Retailers
a) Convenience Stores
b) Conventional supermarket
c) Big-Box Food Retailer
2) General Merchandise Retailers
a) Discount stores – offers broad variety of merchandise, limited service, and low prices
b) Speciality stores – concentrates on a limited number of complementary merchandise categories
c) Category specialists – narrow variety but a deep assortment (Future Shop)
d) Drugstores
e) Off-Price Retailers – offers an inconsistent assortment of merchandise at relatively low prices
f) Extreme Value Retailers – a general merchandise discount store found in lower-income areas
g) Department Stores
what are the Forms of Non-Store Retailing?
a) Online
b) Personal Selling
c) Direct Mail - targeted, printed form of communication sent to a prospective customers mail
d) Catalogue
e) Telemarketing
f) Direct Response TV - television commercials or infomercials with a strong call to action
g) Kiosk
what are the Advantages of Web Retailing?
- offers unlimited space to describing an item
- access to a global market and to markets without retail stores
- 24/7 ordering capability
- no postage costs associated with catalogues
- abilities to verify shipping status
- integration of video/audio
- ability to compare offerings of merchants, prices, product features
- ability to customize mailings to past and ongoing customers
- appeal to market segments that prefer Web-based shopping
- enables prices of be easily and quickly changed
How do retailers use the four Ps to create value for customers?
- Provide customers with a choice of merchandise in the quantitiesW they want to buy and services that facilitate the sale and use of those products.
- they offer convenient locations to shop and an atmosphere and presentation that enhance the shopping experience.
- Promotions provide customers with information
- Price provides signal to the customers about the image of the store, its merchandise, and its services.
what is Integrated Marketing Communications (IMC)?
Represents the promotion dimension of the 4 P’s; encompasses a variety of communication disciplines – general advertising, personal selling, sales promotion, public relations, direct marketing and electronic media – in combination to provide clarity, consistency and maximum communicative impact.
Explain the parts of the process that firms use to communicate with consumers?
- Sender – The firm from which the IMC message originates; the sender must be clearly identified to the intended audience
- Transmitter- An agent or intermediary with which the sender works to develop the marketing communications; for example, a firms creative department or an advertising agency
- Encoding- The process of converting the senders ideas into a message, which could be verbal, visual, or both
- Communication channel – The medium; print, broadcasts, the internet or etc. that carries the message
- The Receiver – The person who reads, hears or sees the information contained in the message or advertisement
- Noise – Any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels
- Feedback Loop – Allows the receiver to communicate with the sender and thereby informs the sender whether the message was received and decoded properly
Explain the six tools of IMC campaigns?
- Advertising – A paid form of communication form an identifiable source, delivered through a communication channel and designed to persuade the receiver to take some action now or in the future
- Personal Selling – The two way flow of communication between a buyer and seller that is designed to influence the buyers purchase decision
- Sales Promotions – special incentives or programs that encourage the purchase of a product or service, such as coupon, rebates, contests, free samples, and point of purchase displays
- Direct Response Marketing – Sales and promotional techniques that deliver marketing communications to individual prospective consumers.
- Public Relations- The organizational function that manages the firms communications to achieve a variety of objectives and maintaining positive relationships with the media
- Electronic Media – Tools including website content, corporate blogs, games, text messaging and social media
List the steps in planning an integrated marketing communications campaign.
1) identify their target market
2) set objectives
3) determine the budget
4) convey the message
5) evaluate and select media
6) create the communication
7) assess the impact of the ad
Describe what appeals advertisers use to get customers’ attention/(convey the message)?
o Rational Appeal – Help consumers make purchase decisions by offering factual information and strong arguments, built around relevant issues that encourage consumers to evaluate the brand favourably on the basis of the key benefits it provides.
o Emotional Appeals- Aims to satisfy consumers emotional desires rather than their utilitarian needs – use of emotion to create a bond between consumer and the brand – Safety, fear, humour, happiness etc.
identify how firms determine which media to use?
- can choose: mass media channels (television) or Niche media channels (direct mail, specialty magazines).
- when choosing the media, firms must match their objectives to the media. Also certain media are better at reaching a particular target audience than others.
How do firms budget for and measure integrated marketing communications success?
- examine when and how often consumers have been exposed to various marketing communications. - use measures of frequency and reach to gauge consumers’ exposure
- marketing managers usually state their media objectives in terms of Gross rating points (GRP) - GRP = reach x Frequency
- when comparing the calculations they must refer to the same medium
what are the different kinds of Advertising Schedules?
- Continuous – runs steadily throughout the year and therefore is suited to products and services that are consumed continually or a relatively steady basis. (P&G with Tide etc)
- Flighting – Schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising. Good for products whose demand fluctuates (Snowboards etc.)
- Pulsing – Combines continuous and Flighting by maintaining a base level of advertising but increasing advertising intensity during periods.
ways to determine marketing communication Budget?
Competitive Parity - The communication budget is set so that the firms share of communication expenses equals its market share
Percentage of sales - The budget is a fixed percentage of sales
Affordable Budgeting - Marketers forecast sales and expenses, excluding communication. The difference between the forecasted sales and expenses plus desired profits is reserved for communication budget.
Three main components of any IMC strategy?
- the consumer or target market
- the channels or vehicles through which the message is communicated
- the evaluation of results of communication
