Marketing Final Exam Flashcards
What are the 4 levels of retail service?
Self-service, self selection, limited service, full service.
It is the cornerstone of all discount operations. Many customers are willing to carry out their own “locate-compare-select” process to save money
Self-service
Customers find their own goods, although they can ask for assistance
Self Selection
Retailers carry more shopping goods and services such as credit and merchandise-return privileges
Limited Service
Salespeople are ready to assist in every phase of the “locate-compare-select” process. Customers who like to be waited on prefer this type of store.
Full Service
Nonstore retailing falls into four major categories
direct selling, direct marketing, automatic vending
Also called multilevel selling and network marketing, is a multibillion-dollar industry, with hundreds of companies selling door-to-door or at home sales parties.
Direct selling
This type of nonstore retailing has roots in direct-mail and catalog marketing (Lands’ End, L.L.Bean). It includes telemarketing (1-800-FLOWERS), television direct-response marketing (HSN, QVC), and electronic shopping (Amazon.com, Autobytel.com).
Direct marketing
Offers a variety of merchandise, including impulse goods such as cigarettes, soft drinks, and more.
Automatic vending
Storeless retailer serving a specific clientele—usually employees of large organizations—who are entitled to buy from a list of retailers that have agreed to give discounts in return for membership.
Buying service
New retail forms and combinations Competition between store-based and non-store-based retailing Growth of giant retailers Decline of middle market retailers Growing investment in technology Global profile of major retailers Growth of shopper marketing
Changes in the retail environment`
Walls Lighting Signage Product placement Floors Surface space Music People Aroma
Store atmosphere
Keep shoppers in the store Honor the transition zone Don’t make them hunt Make merchandise available to the reach and touch Note that men do not ask questions Remember women need space Make checkout easy
Tips for Increasing Sales in Retail Space
(also called a reseller, store, house, or distributor brand) is a brand that retailers and wholesalers develop.
Private label brand
Private label brands
Private labels are ubiquitous
Consumer accepts private labels
Private-label buyers come from all socioeconomic strata
Private labels are not a recessionary phenomenon
Consumer loyalty shifts from manufacturers to retailers
Selling and promoting Buying and assortment building Bulk breaking Warehousing Transportation Financing Risk bearing Market information Management services and counseling
Wholesaling functions
starts before physical distribution and means strategically procuring the right inputs (raw materials, components, and capital equipment); converting them efficiently into finished products; and dispatching them to the final destinations.
Supply chain management
The firm must make four major decisions about its market logistics
(1) How should we handle orders (order processing)? (2) Where should we locate our stock (warehousing)? (3) How much stock should we hold (inventory)? and (4) How should we ship goods (transportation)?
Transportation Factors
Speed Frequency Dependability Capability Availability Traceability Cost
wholesaler’s sales forces help manufacturerers reach many small business customers at a low cost
selling and promoting
Wholesalers are able to selct items and build the assortment their customers need, saving them considerable work
buying and assotrment building
wholsalers achieve savings for their customers by buying large carload lots and breaking the bulk into smaller units
bulk breaking
wholesalers hold inventories, thereby reducing inventory costs and risks to suppliers and customers
warehousing
wholesalers hold inventories, thereby reducing inventory costs
transportation
wholesalers finance customers by granting credit, and finance suppliers by ordering early
financing
wholesalers absorb some risk by taking title and bearing the cost of theft, damage, and spoiling
Risk bearing
wholesalers supply information to suppliers and customers regarding competitor’s activities, new products, price developments, and so on
Market information
Marketing Communications Mix
Advertising Sales promotion Events and experiences Public relations and publicity Direct marketing Interactive marketing Word-of-mouth marketing Personal selling
Communication process (macro model)
nine key factors in effective communication. Two represent the major parties— sender and receiver. Two represent the major tools—message and media. Four represent major communication functions—encoding, decoding, response, and feedback. The last element in the system is noise, random and competing messages that may interfere with the intended communication.
What are the steps in developing effective communications
identify target audience determine objectives design communications select channels establish budget decide on media mix measure/results/manage IMC
Establish budget
affordable, percentage of sales, competitive parity, objective-and task
What are the 5 Ms of advertising?
Mission, money, message, media, measurement
Mission
What are our advertising objectives? Sales goals?
Money
How much can we spend and how do we allocate spending across media types? Factors to consider: Stage in product life cycle, market share and consumer base, competition and clutter, advertising frequency, product substitutability
Message
What message should be send?
Media
What media should we use? Reach, frequency, impact
Measurement
How should we evaluate results
advertising objectives
informative, persuasive, reminder, reinforcement
informative
create brand awareness and knowledge of new products or new features of existing products
persuasive
create liking, preference, conviction, and purchase of a product or service.
reminder
aims to stimulate repeat purchase of products and services
reinforcement
aims to convince current purchasers that they made the right choice.
media selection
finding the most cost-effective media to deliver the desired number of exposure to ta target audience
The effect on exposures of audience awareness depends on
reach, frequency, and impact
out-of-home advertising, is a broad category including many creative and unexpected forms to grab consumers’ attention.
place advertising
consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
Offers incentive to buy and advertising offers reason to buy
Sales Promotion
Consumer Directed Sales Promotion Tactics
Samples Coupons Cash refund offers Price offs Premiums Prizes Patronage rewards Free trials Tie-in promotions
Why sponser events?
To identify with a particular target market or life style
To increase brand awareness
To create or reinforce consumer perceptions of key brand image associations
To enhance corporate image
To create experiences and evoke feelings
To express commitment to community
To entertain key clients or reward employees
To permit merchandising or promotional opportunities
Public Relations Functions
press relations, product publicity, corporate communications, lobbying, and couseling
press relations
Presenting news and information about the organization in the most positive light.
product publicity
Sponsoring efforts to publicize specific products.
corporate communications
Promoting understanding of the organization through internal and external communications.
lobbying
Dealing with legislators and government officials to promote or defeat legislation and regulation.
counseling
Advising management about public issues, and company positions and image during good times and bad.
Tasks aided by public relations
Launching new products Repositioning a mature product Building interest in a product category Influencing specific target groups Defending products that have encountered public problems Building corporate image
the use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.
direct marketing
direct marketing channels
direct mail, catalogs, telemarketing, other direct response
Constructing a direct mail campaign
Establish objectives Select target prospects Develop offer elements Test elements Execute Measure success
Components of direct mail mailings
outside envelope, sales letter, circular, reply form , reply envelope
Types of telemarketing
telesales, telecoverage, teleprospecting, customer service and technical support
use of the telephone and call centers to attract prospects, sell to existing customers, and provide service by taking orders and answering questions
telemarketing
Public issues in direct marketing
irritation, unfairness, deception/fraud
Tailored messages possible Easy to track responsiveness Contextual ad placement possible Search engine advertising possible Subject to click fraud Consumers develop selective attention
interactive marketing
Platforms of social media
online communities and forums, blogs, social newtorks,
How to start buzz
Identify influential individuals and companies and devote extra effort to them
Supply key people with product samples
Work through community influentials
Develop word-of-mouth referral channels to build business
Provide compelling information that customers want to pass along
generates excitement, creates publicity, and conveys new relevant brand-related information through unexpected or even outrageous means
buzz marketing
another form of word of mouth, or “word of mouse,” that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online.
viral marketing
Designing a sales force
In designing the sales force, the company must develop sales force objectives, strategy, structure, size, and compensation
Sales Tasks
Prospecting Targeting Communicating Selling Servicing Information gathering Allocating
searching for prospects or leads
prospecting
deciding how to allocate their time among prospects and customers
targeting
Communicating information about the company’s products and services
communicating
Approaching, presenting, answering questions, overcoming objections, and closing sales
selling
Providing various services to the customers—consulting on problems, rendering technical assistance, arranging financing, expediting delivery
servicing
Conducting market research and doing intelligence work
Information gathering
Deciding which customers will get scarce products during product shortages
allocating
Workload Approach to Determining Sales Force Size
Customers are grouped into size classes
Desirable call frequencies are established
Number of accounts in each size class multiplied by call frequency
Average number of calls possible per year established
Number of reps equal to total annual calls required divided by number possible
Managing the sales force
recruiting, selecting, training, supervising, motivating, and evaluating
Steps in effective selling
- Prospecting/qualifying
- Preapproach
- Approach
- Presentation
- Overcoming objections
- Closing
- Follow up
Major decisions in international marketing
deciding whether to go, which markets to enter, how to enter, markting program, marketing organization
Reasons for pursuing global markets
Better profit opportunities
Larger customer base to achieve economies of scale
Less dependence on any one market
Desire to counterattack global competitors in their home markets
Customers require international service
Risks to going abroad
Lack of knowledge of foreign culture
Lack of understanding of foreign needs
Lack of understanding of foreign regulations
Lack of managers with international expertise
Changes in the country environment
Four stages of internationalization
Stage 1: No regular export activities
Stage 2: Export via independent agents
Stage 3: Establish sales subsidiaries
Stage 4: Establish production facilities abroad
Five modes of market entry
indirect exporting, direct exporting, licensing, joint ventures, direct investment
Direct exporting methods
Domestic-based export department
Overseas sales branch or subsidiary
Traveling export sales representatives
Foreign-based distributors or agents
A purely service function may evolve into a self-contained export department operating as its own profit center.
domestic-based export deparment
The sales branch handles sales and distribution and perhaps warehousing and promotion as well. It often serves as a display and customer-service center
overseas sales branch or subsidiary
home-based sales representatives travel abroad to find business
traveling export sales representatives
foreign-based distributors or agents
these third parties can hold limited or exclusive rights to represent the company in that country
Five international product and communication strategies
straight extension, product adaptation, communication adaptation, dual adaptation, and product invention
levels of product adaptation
regional, country, city, and retailer versions
Three options to setting prices in different countries
set a uniform price everywhere, market-based price in each country, cost-based price in each country
categories of service mix
pure tangible goods, good with accompanying services, hybrid, service with accompanying goods, pure service
distinctive characteristics of services
intangibility, inseparability, variability, and perishability
intangibility
services that cannot be seen, tasted, felt, heard, or smelled before they are bought
inseparability
services are typically produced and consumed simultaneously
variability
Because the quality of services depends on who provides them, when and where, and to whom, services are highly variable
perishability
services cannot be stored, so their perishability can be a problem when demand fluctuates.
How to increase quality control
invest in good hiring procedures, standardize the service-performance process, monitor customer satisfaction
10 things companies can do to improve service quality
Listening Reliability Basic service Service design Recovery Surprising customers Fair play Teamwork Employee research Servant leadership
major retailer types
Specialty store Department store Supermarket Convenience store Discount store Off-price retailer Superstore Catalog showroom
specialty store
narrow product line. The Limited, The Body Shop
Department store
several product lines. JCPenney, Bloomingdale’s
Convenience store
small store in residential area. 7-Eleven
Drug store
prescription and pharmacies, health and beauty aids, other personal care, small durable, miscellaneous items. CVS, Walgreens
Discount store
standard or specialty merchandise; low-price, low-margin, high-volume stores. Walmart, KMart
Extreme value or hard-discount store
a more restricted merchandise mix than discount stores but at even lower prices. Aldi, Dollar General, Family Dollar
Off-price retailer
leftover goods, overruns, irregular merchandise. TJ Maxx
Superstore
huge selling space, routinely purchased food and household items, plus services
Hypermarket
huge stores that combine supermarket, discount, and warehouse retailing
The three most identified sources of credibility
expertise, trustworthiness, and likability
specialized knowledge the communicator possess to back the claim
expertise
Describes how objective and honest the source is perceived to be
trustworthiness
describes the source’s attractiveness. Qualities such as candor, humor, and naturalness make a source more likable
likability
