Exam #3 Flashcards
Supply Chain
Three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer.
Downstream flow of products/services
Movement of goods, information, promotion, etc. toward the final consumer
Upstream flow of finances
Movement of payment, information, returns, etc. from the customer toward the manufacturer and other supply chain partners
Supply Chain Value Added
Value added to products as it moves downstream (availability, manufacturing, packaging); returns value moving upstream (payment, feedback, product development, etc.)
Production Costs
reduce production costs by streamlining processess
Location
Add value through better logistics (movement of goods)
Time
Add value by reducing upstream and downstream flow time
Control
Add value by allowing firms better oversight of upstream and downstream flows
Channel Level
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer adding value
Direct to Consumer
Channel level with no intermediaries
Wholesaler
Buys large quantities from various producers, warehouses them, and resells them to retailers/businesses
Distributors
Buys noncompeting products, warehouses them, and resells to retailers or directly to end users
Intensive
Distribution of products in as many outlets as possible (consumer products). Boosts revenue, impulse buying, convenience, awareness, etc.
Selective
Distribution of products through a limited number of dealers (luxury brands - reduces cost, improves relationship building, consistent with price/value)
Exclusive
Distribution of a product through one/few intermediaries in a specific geographic region (automobiles, appliances) - exclusiveness, control, relationships
Pull strategies
Gain customer interests for product
Push strategies
Gain intermediaries interests for product
Supply chain orientation
a management philosophy that guides the actions toward actively managing the upstream and downstream flow (outward focus)
Supply chain management
Actions taken to coordinate the flows in a supply chain; view as a system of interrelated companies that make up the supply chain and something to be managed
Supply chain management cont.
Ultimate goal is to integrate related companies to such a degree that they function as one organization
X - one/more independent channel members, each separate businesses = individual profit seeking
DO - provide channel leadership and act as a unified system to meet customer needs
Logistics
Part of supply chain management that plans, implements, and controls the flow of goods, services, and information between the point of origin and the final customer
Retailers
Purchase and resell products to consumers for their personal or family use; differentiated by product category and target market
Value added to consumers - retail
providing the products to consumers when and where they want them
Value added to manufacturers - retail
Allow manufacturers to focus on the development and production of goods rather than the final distribution to end-customers
Supermarkets
Large, self-service retailers supplying a wide variety of food beverage and kitchen products
Supercenters
Traditional grocery items, apparel, beauty, home goods, electronics [one stop shopping]
Warehouse retailers
Food and general merchandise products usually in larger quantities
Convenience retailers
Offer a limited variety and assortment of merchandise, usually snack foods and minor essentials, at an easily accessible location
Department stores
Wide range of products displayed as a collections of smaller “departments” within the store
Specialty retailers
Concentrate on a specific product category
Off-price retailers
An inconsistent variety and assortment of branded products
Drugstores
Primarily sell pharmaceuticals, health and wellness, medicine, beauty, limited food and beverages
Service retailers
Mostly sell services rather than merchandise (banks, auto shops)
E-tailers
Allow customers to shop for and buy products online for home delivery
Omnichannel retailing
Multichannel retailing approach that allows the customer to have an integrated customer experience across all of a retailer’s distribution platforms (carmax)
Needs for a successful omnichannel retailer:
Infrastructure, Process, People
Infrastructure
Successful vendor and supplier relationships, appropriate supply chain and logistics capabilities
Process
Retailers must implement processes and strategies to ensure that the experience is seamless across channels
People
Success or failure of an omnichannel retailing strategy is totally dependent on a firm’s employees
Product decisions (made by retailers)
Must fit the target market and positioning includes: product assortment, service mix, store atmosphere
Experiential retailing
Offering customer experiences; its more than just an assortment of goods; included in store atmosphere
Pricing decisions (made by retailers)
Everyday- low- pricing (charging constant low prices and offering few sales discounts) or high-low pricing (charging higher prices on and everyday basis, coupled with frequent sales and other price promotions)
Place decisions
Central business districts (located in cities) or shopping center (group of retail businesses)
Promotion decisions
Advertising, personal selling, sales promotions, public relations, direct marketing
Integrated Marketing Communications (IMC)
Used to coordinate the various promotional mix elements to provide customers with a clear and consistent message about a firm’s products; more effective creating and developing relationships with customers
Communications mix
Advertising, sales promotions, personal selling, public relations, direct/digital
Promotional strategy
Inform, persuade, remind
Promotional media and message
Communicate customer value
Communication method
means for marketers to get a message to consumers (mass media, electronic media, personal communications, point-of-purchase, physical space, press)
Developing Marketing Communication (6 steps)
- Identify target audience
- Establish communications goal
- Design a message
- Choose the media to send message
- Select the message source
- Collect feedback
- ID Target Audience
Effects what will be said, how it will be said, when it will be said, and where it will be said, and who will say it
- Establish Goals for Each Promotion
Inform, persuade, remind
Appeal
Reason for purchase, “what to say”, content
Execution
The way the message is communicated, “how to say it”, structure/format
Personal
involves two or more people communicating directly with each other
Word-of-Mouth
the impact of the personal words and recommendations of trusted friends, etc. carries considerable influence
Buzz Marketing
Cultivating opinion leaders and getting them to spread information about a product/service to other in their communities also carries considerable influence
Non-Personal
media that carry messages without personal contact or feedback
Broadcast
TV, Radio
Newspaper, magazines, direct mail
Display
Billboards, signs, posters
Digital
Email, websites, mobile, social media
Events
grand opening, shows, exhibitions, tours
Product placement
brands incorporated into movie or TV show
The New Marketing Communications Model
Recognizes all touchpoints where customer encounters company, each contact will deliver a brand message, Goal: consistent, flexible, positive messages, IMC
Message source
the message’s impact depends on how the target audience views the communicator; messages delivered by highly credible or popular sources are more persuasive
Selecting specific media
selecting the best media vehicles, specific media, within each general vehicle type
Selecting timing
selecting the best time to present the media (all year, same time every year, real-time)
Feedback
involves the communicator understanding the effect on the target audience by measuring behavior resulting from the content
Elements of promotional mix
attention, interest, desire, action
Attention
first step attract attention
Interest
increasing interest
Desire
move to “I want it”
Action
Purchase the product
Mass advertising best for
simple product, large audience, lower cost
Sales promotions best for…
New product to increase trial of product
Personal selling best for…
complex, higher cost
Public relations best for…
increase awareness of overall brand/ product line
Advertising strength:
Attention and interest, large target market
Sales promotion strength:
desire and action, highly informed buyers
Personal selling strength:
interest, desire, action, small # of customers, higher prices products
Public relations strength:
attention and interest, large markets, firm has multiple products
Marketing budgets
all-you-can-afford, % of sales, competitive-parity, objective-task
Content marketing
marketers now view themselves more broadly as content marketers, using their own and user-generated, it is not about product - it informs, educates and entertains
Digital marketing
online marketing that can deliver content immediately to consumers through digital channels, devices and platforms
Inbound marketing
utilizes tools such as blogging, webinars, or follow-up emails
Search Engine Marketing
the process of driving traffic to a company’s website from “free” or “organic” search results
Email marketing
a cost-effective method of retaining, nurturing, or attracting a new consumer base
Social media marketing
utilize online social networks and applications as a method to communicate mass and personalized messages about brands and products
Product focused buyers
involves replacing an existing product or purchasing a product that has been pre-chosen or regularly purchased items. Most likely to purchase
Browsers
consumer is not really looking to make purchase
Researchers
purchasing product for first time, unlike browsing this is more deliberate and will likely result in purchase
Bargain hunters
involves coupon and auction sites; often combined with browsing
On-time focused
may combine product-focused shopping, browsing, researching, and bargain hunting all at the same time, shopping for a gift and will not return to shop once the purchase is made
Digital malls
digital retail site where a variety of sellers stock their goods with different purchase options; consumer unaware of firm selling
Digital marketplaces
digital retail site made up of small, independent sellers (Etsy)
Auction sites
list goods from individuals or firms that can be purchases through an auction bidding process or directly through “purchase now”
Buying clubs
allow consumers to buy in bulk, similar to warehouse clubs
Visible and invisible influencers
once marketers understand how consumers make purchasing decisions, they develop strategies to influence those decisions
Visible influencers
paid search, paid stores, paid display ads, sponsorship
Invisible influencers
cookies, cookie syncing, geotracking, bots
Social media
customizable, two way communications, targeted
Consumer feedback
feedback, reviews, chatter, influencers
Mobile marketing
a set of practices that enable organizations to communicate and engage with their audience through any mobile device or network; allows for location based ads, instant feedback, make educated decisions
Advertising
nonpersonal promotion communications about offerings that is paid for by the firm identified in the communication
Paid Advertising
requires a purchased time or space for communicating a message
Nonpersonal
Uses media to transmit a message to large numbers of individuals rather than marketing to consumers face-to-face
Advertising campaign
a collection of coordinated advertisements that share a single theme with the objective to inform, persuade, remind
Product lifecycle
the time it takes a product category to go from introduction until it is removed from the market
Two metrics
to gauge how often and how many consumers see an advertisement
Frequency
a count of how often a consumer is exposed to a promotional message
Reach
the % of the target market that has been exposed to the promotional message at least once during a specific time period
Puffery
ads that make broad exaggerated or boastful statements about a product that are subjective; marketers are allowed to make claims that cannot technically be proven false
Federal agents responsible for regulating ads
Federal Trade Commission, Federal Communications Commission, Self regulation
Sales Promotions
a set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product
Business-to-consumer sales promo
coupons, rebates, samples, contests, sweepstakes, loyalty programs
Trade (business-to-business) sales promo
allowances, training (better equip salesforce to speak with customers), cash incentives, sales contest, cost reduction
Trade Sales Promo
typically directed toward front-line employees that deal directly with customers and designed to increase sales for a product or brand
