Mkt 301 - final exam Flashcards
1
Q
Relation to consumers and real estate
A
- all retailing is apart or real Estate development
- retail is curious about the location
- marketing what anyway want to shop in that type or store
- Located near profitable areas
- Shopping goods
- Population impacts income is a factor
2
Q
understored/overstored
A
Not enough retailers vs too many retailers
Not enough people to support the stores
3
Q
undermailed/overmalled
A
Same concept-> few shopping malls, too many shopping malls
4
Q
Industry structure
A
- Around 2 million retailers in the united states
- Heavy food and auto component
- About 2/3 are involved with food
- About 1/3 are involved with auto
- Total industry sales: $4 Trillion
- Originally have retailers in every city/region/area
- 1980s major consolidation amongst retailers
5
Q
Evolution in the U.S
A
1850: Department Store (Macy’s)
1880: Direct Mall (Sears)
1915: Chains (Walgreens)
1930: Grocery Supermarkets, Classic Strip Malls (A&P)
1950: Discounters, Classic Regional Malls
1962: Wal-Mart, K-Mart, Target
1975?: Membership Warehouses
1985: Off Pricers, Outlets
1990: New Discounters and Mall
1995: Online Retailing
6
Q
Five general trends across all forms
A
- Non-Store and Multi-Channel Strategies
-Door to door selling - Increased Private Branding
-All retailers are doing this - Hybrid Concepts
-Start with a model and then corporate another model
half discount and half market - New store Formats and Prototypes
-supermarket and regular - Ongoing Industry Consolidation
7
Q
hyper market
A
offers everything under one roof
8
Q
Video: Mall of America
A
-Unique shopping experience + amazing entertainment
4.2 million square feet
-520 stores (something for everyone)
-Legoland
-Retail store
-Entertainment theme park
-Mix of retail, entertainment
-$1.8 billion dollars in sales
-Leasing department looking out for new stores and trends to bring it back to the mall
–Entrepreneurial program to launch new stores
400 million customers each year 40% are tourist 6% international
-150 mile radius customer coverage
-1/3 of visitors are outside their trade radius
-5 minutes from an international airport
-Partners with southwest airlines
-Stage two
-Includes hotels, spas, restaurants
-Accommodations to tourist
9
Q
_____ is communication and one of the 4P’s
A
Promotion
10
Q
The promotional mix: also 4 parts
A
- Advertising
- Public Relations
- Personal Selling
- Sales Promotions
11
Q
(2) Sales Promotions
A
- Consumer
2. Trade of “Channel Members”
12
Q
IMC definition
A
Integrated Marketing Communication
-Mix and match sales and promotion techniques to form an integrated plan
13
Q
Push Aimed
A
Promotes intermediaries to carry the product
14
Q
Pull Aimed
A
Generates end user demand to get intermediaries to carry the product
15
Q
5 step process in promotion
A
1. Specify Objectives Goals 2. Budget Methods and Allocation (Budgeting) Naive Percentage of Sales Parity Objective and Task 3. Campaign issues 4. Various Details (Schedules) The specifics on what, when, and how to do it 5. Assessment Evaluate it
16
Q
(5) Budgeting methods
A
Naïve %Sales Parity Objective Task
17
Q
Possible ad objectives
A
- New Product Introduction
- Open 50 Accounts
- Build Channel Relationships
- Improve awareness
18
Q
Message strategies (4 major)
A
- Humor
- problem with humor it isn’t funny anymore after you watch it - Fear
- scare you
- gets into social marketing
- offer a resolution - Sex
- carl jr - Emotion
- guilt
- babies
- dogs
- grandparents
19
Q
Media choices (pros/cons) Old
A
Television Radio Print Outdoor Yellow pages
20
Q
Media choices (pros/cons) New
A
Direct TV Sirius Online Versions Out-or-home Internet Social Media
21
Q
What is the major media choice?
A
TV
22
Q
Push
A
Manufactures/Distribution
23
Q
Pull
A
Consumers
24
Q
(4) Various sales promotion objectives
A
- Trial
- Brand Switching
- Inoculation
- Inventory Shifts
25
Consumer promotion methods:
| product related
```
Product related
Samples
Packaging
Premiums
Contests/Sweepstakes
Placements
```
26
Consumer promotion methods:
| Price related
Rebate
Coupons
Cents off Deals
Continuity plan
27
Rebate abuses
Most consumers don't turn in rebates
28
Continuity plans/rewards programs
- Frequent flyer programs
- Reward programs
- Lock consumers in with a promotion so they always use your product
29
“Side effects” from promotions
Company's get hooked on these methods and continually increase the amount or discounts of sale promotion
30
Statistic of all spending on consumer sales promotion
2/3 of all spending on consumer sales promotion
31
Statistics on couponing
Grown by 450% over the past few years
| 90% of consumers redeem at least 1 coupon a year
32
Distribution: Free standing inserts (FSI’s)
Coupons stuffed in your mailbox or in newspapers
33
Redeems about ____ % are redeemed
1-2%
34
Misredemption and Fraud
1. Retailers don’t want to offend customers so they accept coupons regardless of expiration dates.
a. Some stores accept all coupons, even competitors
2. Fraudulent coupons coupons were stolen and redirected distribution and funneled to a store to redeem for money.
35
Who uses the coupons the most
Middle class soccer moms with higher education
36
trade promotion
a lot of money is invested in this
short-term
most people like since of promotion and short-term results
37
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Trade discounts (margins)
Discount to other channels
```
Cheaper price to push product through the channel downwards to the consumers
Allows larger margins for retailers and wholesalers
38
Promo Allowance
1. Scheme that manufacturers pitch to the middleman
| 2. Cooperative promotional program
39
Cash/Seasonal
During slow selling seasons.
| Selling seasonal product during the off-season.
40
Various PM’s
1. “Promotional Money”, “Push Money”, “Free Money”
| 2. Push Money
41
(4)Quantity discounts: savings vs. inventory costs
1. Buy a large amount to get a discount
2. Forward Buying: Buying into the future
3. Hand to Mouth Buying: Buying from day to day
4. “Diversion” when retailers can’t sell a product, they sell to another retailer
42
Slotting
Pay money to get your product onto the shelves. (Like extortion)i.
-Safeway earns about 5% of income from these fees
43
Missionary selling: not trying to get orders
Spreading the word/Information
Informing other companies about a product
Not necessarily selling
44
Trade shows: aimed at channel members, communication, importance to Las Vegas
a. Sharing information/ revealing products/ networking/ latest news
b. Who? people in the businessi. Not open to the public
c. Examples:i. World of concrete?ii. CESiii. MAGIC
45
2 way communication
1.
| 2.
46
Benefits or a sales force
Some industries have Sales Forces, some don’t
Depending how effective they are
Some sales forces at 10,000 people, and very diverse
Pharmaceutical companies spend a large amount or personal selling
47
Agents
Represents a variety or manufactures, Independent
48
Salesforce
Company hires employee to
49
Sales force organization:
```
1. Geography
Cheapest and simplest
2. Markets
Specialize to your customers
Sales people to better understand the customers/businesses and truly understand their business
Higher cost
3. Products
Does the salesmen know enough about the product to sell it
4. Key accounts/Teams
Call on key customers
Costly
```
50
What is the cheapest and simplest sales force organization
Geography
51
Specialists
Certain markets require intelligent salesmen such as educated people
Pros
Get a better message across to educated people
Cons
Cost a lot more
52
Sales turnover and hidden costs
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A company with 10,000 people…. Employees constantly leaving of are being hired
Replacing workers
Types or cost
1. Recruiting
2. Other
```
53
“Similarities” idea; women/minorities in sales force
They can't handle
Rejection
They aren't tough enough
54
Motivation and training
Motivation and training is expensive
| It's good to steal the people who are trained from your competitors
55
Compensation:
Usually it's 25% sales commission and 75% salary
56
E-commerce definition
-
57
B2C -
business to consumer
| Online retailing
58
B2b
- Business to Business
Organizational retailing
Electronic retailing
59
(2) Public policy issues: regulation and taxation, current events
Privacy issues
Regulation and taxation
-No regulation for taxation on e-commerce
60
Scope of B2B and business models
B2b is a lot bigger than b2c
61
Zones (4) of social media
1. Community
2. Publishing
3. Entertainment
4. Commerce
62
Business focus of social media
Technology has enabled this
63
Social media participation
```
Creators
Conversationalist
Critics
Collectors
Joiners
Spectators
Inactives
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64
Rationale for Marketing Planning
What is the reasoning for planning
| Planning is like planning for anything else
65
Audits
Static
| -What is the current situation
66
Plans “Move” and look Forward
What should we do in the short/long term
| it looks forwards
67
Issues in the planning process
9/11 was a huge problem
no planes
that means no tourist for Las Vegas
every business has something that can blow them out or the water
contgiencey plan
-you do it ahead or time so when it comes to present you know what to do
68
Actual content of the plan
1. Environment What is happening around you? Political, Industry
2. Products What does your company offer? What is it that you do?
3. Markets Your market and your potential or current market share of it
4. Competition Who are your competitors? What are they doing?
5. Promotion (Sales force) What are you going to do?
69
Grids
Product/Market Grids Products on one axis and markets on the other axis
very useful
what product fits in the market
70
portfolio models (BCG and GE),
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Portfolio Models (BCG, GE) What is the stage of your product/company?
BCG Market Growth Rate vs. Market Share (Star, Cashcow, Question Mark, Dogs)
```
71
Stars
Fast Growth, High market Share (Huge Potential and can turn into a cashcow) (Needs a bunch of money but shows results)
72
Cashcow
Low Growth and High Market Share (The Money Maker) (Needs less money but returns a lot of money).
73
Question Mark
High Growth, Low Market Share (Unknown potential (Needs a bunch of money, can flop and turn into a dog or become a Star)
74
Dogs
Low Growth, Low Market Share (A barely surviving survivor... Failures...) (Doesn’t require much money, but wont return much money either)
75
PIMS
Profit Impact of Marketing Strategies.
1. Housed at the Harvard Business School
2. Attempts to mimic medical models and apply to marketing situations
A. Cause vs Effects / Action Results
3. Survey a bunch of businesses on their marketing strategies and also collect the results of these strategies to see what works and what doesn’t
