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Marketing > Slide Notes > Flashcards

Slide Notes Flashcards

1
Q

Ethics

A

Accepted principles of right or wrong that govern

  • the conduct of a person
  • the members of a profession
  • the actions of an organization
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2
Q

Business ethics

A

Accepted principles of right or wrong governing the conduct of business people

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3
Q

Ethial strategy

A

A strategy, or course of action, that does not volate these acepted principles

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4
Q

Why is customer satisfaction important in the U.S.?

A

Basic objective of our market-related economic system has been to satisfy consumer needs as they, the consumers, see them

Implies that political freedom and economic freedom go hand in hand and that citizens in a free society have the right to live as they choose

The majority of American consumers would be unwilling to give up the freedom of choice they now enjoy

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5
Q

Marketing Concept

A

Means that an organization aims all its efforts at satisfying its customers - at a profit

customer satisfacition, total comapny effort, profit (or another measure of long-term success) as an objective

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6
Q

Marketing strategy

A

Specifies a target market and a related marketing mix. It is a big picture of what a frim will do in some market

two parts: target market and marketing mix

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7
Q

Marketing program

A

Blends all of the firm’s marketing plans into one “big” plan

An integrated part of the whole-company strategic plan

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8
Q

Marketing plan

A

A written statement of a marketing strategy and the time-related details for carrying out the strategy

It should spell out the following: what marketing mix will be offered, to whom and for how long.

  1. what company resources will be needed at what rate
  2. what results are expected (sales and profits perhaps monthly or quarterly, customer satifaction levels, and the like)
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9
Q

SWOT analysis

A

Identifies and lists the firm’s strengths and weaknesses and its opportunities and threats

The name SWOT is simply an abbreviation for the first two letters of the words strengths weaknesess opportunties and threats

A good SWOT helps the manager focus on a strategy that takes advantage of the firm’s strengths and opportunities while avoiding its weaknesses and threats to its success

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10
Q

4 p’s

A

Product

Place

Promotion

Price

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11
Q

True or False: A marketing plan is a static document it should not change over the planning period

A

False

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12
Q

Which ethical issues are most relevant to business?

A

Employment practices

Human rights

Environmental regulations

Corruption

Moral obligation of companies

Product safety

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13
Q

Ethical dilemma

A

Situations in which none of the available alternatives seem ethically acceptable

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14
Q

Why do Managers behave unethically?

A

Personal ethics

Decision making processes

Organizational culture

Unrealistic performance expectations

Leadership

Societal culture

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15
Q

How can managers make ethical decisions?

A
  1. Hire and promote people with a well grounded sense of personal ethics
  2. Build an organizational culture that places a high value on ethical behavior
  3. Make sure that leaders within he business articulate the rhetoric of ethical behavior and act in a manner that is consistent with that rhetoric
  4. Put decision making processes in place that require people to consider the ethical dimensions of busniess decions
  5. Develop moral courage
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16
Q

The Marketing Concept guides:

A

ethics

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17
Q

Micro-Macro Dilemma

A

Group needs vs. individual needs

Social responsibility, should all needs be satisifeied? What if profits suffer?

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18
Q

Invest in customer satisfaction

A

Allow your customer to complain!

Train and empower your employees to act!

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19
Q

Sources of Marketing Inefficiency

A

Lack of interest in customers

Improper blending of the 4P’s

Lack of understand of the enviornment

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20
Q

Criticisms of Macro-marketing

A

Advertising wastes resources

Consumers are too easily controlled - consumers are not puppets, needs and wants change

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21
Q

Marketing Objectives SMART

A

Specific

Measurable

Attainable

Relevant to the target

Timely

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22
Q

Combiner

A

Aims at 2 or more submarkets with the same marketing mix

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23
Q

Legal and Ethical Concerns

A

Consumer Privacy

Legal vs. ethical

Supply chain

targeting & deception

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24
Q

Pricing

A

Pricing directly affets the bottom line

Your pricing policy addresses:

  • brand/company objectives
  • image/positioning
  • behavior of channel and end-user
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25
Q

One-Price Policy

A

The same for everyone

Frequently purchased items

Convenient

Low cost

Maintains goodwill

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26
Q

Flexible Price Policy

A

Different customers, different prices

Databases make it easier

Salepeople can adjust prices

Too much cutting can hurt profits

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27
Q

Discount price policies are designed to:

A

Elicit a specific action from the consumer or channel member

Satisfy a specific business requirement

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28
Q

Discount Policies

A

Discounts are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself

Quantity discounts - cumulative quantity discounts encourage repeat purchase and relationships, noncumulative ecnourage large orders

Seasonal discounts smooth out demand

Cash discounts encourage early payment

Trade (functional) discounts go to middlemen

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29
Q

Allowance policies

A

Designed to get the channel to perform specific duties or take on certain responsibilities

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30
Q

Common Types of Allowances

A

Advertising

Trade-ins

Stocking

Push money

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31
Q

Common geographic policies

A

FOB

Zone

Freight Absorpotion

Uniform Delivered

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32
Q

Zone pricing

A

An average freight charge to all buyers within specific geographic areas

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33
Q

Uniform Delivered pricing

A

The same (average) freight charge to all buyers

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34
Q

Freight Absorption Pricing

A

Seller pays freight cost so delivered price matches competition

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35
Q

Key issues with price discrimination

A

Robinson-patman act

proportionatley equal basis

like grade and quality

cost differences

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36
Q

Robinson-Patman Act

A

Regulates price discrimation - selling the same products to different buyers at different prices

Cost differences can justify price differences - analysis must habe been done in advance

You can match a competitor’s prices

Functional discounts are usually ok

Does not apply to sales to final customers

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37
Q

Cost Based end-user strategies

A

Cover cost

Achieve a specific profit/market share objetive

Does not consider demand/external environment

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38
Q

Demand based end user strategy

A

What does the customer value?

What are they willing to pay?

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39
Q

Skimming price policy

A

Tries to sell at the top of the market at a high price before aiming at more price-sensitive customers

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40
Q

Skimming policy graph

A

More vertical than penetration

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41
Q

Penetration pricing

A

Firm tries to sell the whole market at one low price

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42
Q

Legality of Pricing Policies Key Issues

A

Unfair Trade Practice Acts

Price Fixing

Dumping

Phony List Prices

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43
Q

Price

A

The amount of money that is charged for something of value

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44
Q

Sales oriented objective

A

Seeks some level of unit sales, dollar sales, or share of the market without referring to profit

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45
Q

Status-quo objectives

A

Managers satisfied with their current market share and profits sometimes adpot status quo objectives

Managers may say the want to stabailize prices, or meet competition, or even avoid competition

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46
Q

Profit-oriented objective

A

Seeks to get as much profit as possible

It might be stated as a desire to earn a rapid return on investment

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47
Q

One-price policy

A

Adv: conveneience and goodwill among customer

Dis. this can be a price competitors can undercut especially is if the price is somewhat high

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48
Q

Flexible-pricing policy

A

Frequent changes to price are easier

Most common in the channels

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49
Q

Skimming price policy

A

Tries to sell the top at a high price before aiming at more price-sensitive customers

*used if there are few substitutes or if some customers are not price sensitive

**also useful when you dont know very much about the shape of the demand curbe

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50
Q

Penetration Pricing Policy

A

Tries to sell the whole market at one low price

*when the elite market is small

**when the whole demand curve is fairly elastic

***more attractive if selling larger quantities resulsts in lower costs because of economies of scale

Also wise if the firm expects strong ompetition very soon after introduction

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51
Q

Rebates

A

Refunds paid to consumers ater purchase

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52
Q

Geographic Pricing Policies

A

FOB

Zone pricing

Uniform delivered pricing

Freight-absorption pricing

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53
Q

Value pricing

A

Means setting a fair price level for a marketing mix that really gives the target market superior customer value

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54
Q

Unfair trade practice acts

A

Puts a lower limit on prices, especially at the wholesale and retail levels

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55
Q

Dumping

A

Pricing a product sold in a foreign market below the cost of producing it or at a price lower than its domestic market

These laws are usually designed to protect the country’s domestic producers and jobs.

*illegal

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56
Q

Phony list prices

A

Prices customers areshown to suggest that the price has been discounted from list

Unethical

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57
Q

Wheeler Lea Amendement

A

Bans unfair or deceptive acts in commerce

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58
Q

Price fixing

A

Competitors getting together to raise, lower, or stabilize prices- completely illegal in the US

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59
Q

Robinson-Patman Act makes illegal any price discrimination -

A

selling the same products to different buyers at different prices if it injures competiotion

Does permit some price differences but they must be based on:

  1. cost differences
  2. the need to meet competition

**Both buyers and sellers are considered guilty if they know they’re entering into discriminatory agreements

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60
Q

______________________________ regulates price discrimination

A

Robinson-Patman ACt of 1936

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61
Q

Target return objective

A

Sets a specific level of profit as an objective

Often stated as a percentage of sales or of capital investment

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62
Q

Nonprice discrimination

A

Agressive action on one or more of the Ps other than price

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63
Q

Adminstered prices

A

Price policies usually lead to administered prices - consciously set prices

Instead of letting market decide, most firms set their own prices

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64
Q

Introductory price dealing

A

Temporary price cuts to speed new products into a market and get customers to try them

Raise prices as soon as the introductory offer is over

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65
Q

Basic list prices

A

The prices final customers or users are normally asked to pay for products

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66
Q

Discounts

A

Reductions from list price given by a seller to buyers who either give up some marketing function or provide the function thesselves

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67
Q

Quanitity discounts

A

Discounts offered to encourage customers to buy in larger amounts

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68
Q

Cumulative quantity discounts

A

Apply to purchases over a given period- and the discount usually increases as the amount purchased increases

Encourage repeat buying by reducing the customer’s cost for addtional purchases

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69
Q

Noncumulative quantity discounts

A

Apply only to individual orders

Encourage large orders but do not tie a buyer to the seller after that one purchase

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70
Q

Seasonal discounts

A

Discounts offered to enocurage buyers to buy earlier than present demand requires

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71
Q

Net

A

Means that payment for the face value of the invoice is due immediatley. These terms are sometimes changed to net 10 or net 30 which means payment is due within 10 or 30 days

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72
Q

Cash discounts

A

Reductions in price to encourage buyers to pay their bills quickly

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73
Q

2/10 net 30

A

Buyer can take a 2 percent discount off the face value if the invoice is paid within 10 days. Otherwise, the full face is due within 30 days

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74
Q

Sale price

A

Temporary discount from the list price

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75
Q

Everyday low pricing

A

Setting a low list price rather than relying on frequent sales, discounts, or allowances

Many supermarkets

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76
Q

Allowances

A

Like discounts, are given to inal consumers, coustomers, or channel members for doing something or accepting less of something

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77
Q

Advertising allowances

A

Price reductions given to firms in the channel to encourage them to advertise or otherwise promote the suppier’s products locally

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78
Q

Stocking allowances

A

Slotting allowances*

Given to an itermediary to get shelf space for a product

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79
Q

Push money (prize money) allowances

A

PMs or spiffs

Given to retaliers by manufacturers or wholesalers to pass on to the retailers salesclersk for aggresively selling certain items

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80
Q

Trade-in allowance

A

A price reduction given for used products when similar new products are bought

Give the marketing manager an easy way to lower the effective price without reducig list price

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81
Q

FOB

A

Means free on board

Typically FOB names the place

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82
Q

Uniform delivered pricing

A

Making an average freight charge to all buyers

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83
Q

Freigh absorpotion pricing

A

Abosorbing frieght cost so that a firm’s delivered price meets that of the nearest competitor

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84
Q

Value pricing

A

Setting a fair price level for a marketing mix that really gives the target market superior customer value

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85
Q

Wheeler-Lea Amendment

A

Bans unfair or deceptive acts in commerce

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86
Q

Markups

A

Dollar amount added to the cost of the products to get the selling price

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87
Q

Markup percent: Two methods to calculate

A

Based on selling price: the percentage of selling price that is added to the cost to get the selling price

  • percent of selling price unless otherwise noted

Based on cost: the percentage of cost that is added to the cost to get the selling price

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88
Q

Mark-ups and profit

A

Products may be marked up several times through the channel

  • the sequence of markups is the markup chain

High markups dont always mean high profits - depends on the stockturn rate

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89
Q

High markups dont always mean:

A

big profits

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90
Q

Average-cost Pricing

A

Adds a reasonable markup to the average cost of a product

Simplifies pricing

Quite common, especially among middlement

Usually based on estimates or past records

  • actual average cost depends on quantity sold!
  • quantity sold depends on price
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91
Q

The Marketing Manager must consider various kinds of costs

A

Total Variable cost

total cost

average cost

average fixed cost

average variable cost

total fixed cost

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92
Q

Break-even analysis

A

Used to evaluate whether the firm will be able to cover costs at a particular price

indicates the break-vevn point (units or dollars) needdd to break even

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93
Q

Problems with break even analysis

A

Assumes any quantity can be sold at at a given price

Total cost curve is assumed to be a straight line

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94
Q

Cost based

A

What it costs you to make and deliver to the customer + margin

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95
Q

Value based

A

What the customer is willing to pay

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96
Q

Types of demand-oriented pricing

A

Value-in-use

Auctions

Sequetial reductions

reference

Leader & Bait

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97
Q

Can you buy the advertised brand?

A

Leader= legal

bait = unethical

bait and switch = illegal

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98
Q

Pricing a Full Line

A

Full=line pricing

Costs are complicated

Complentary product pricing

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99
Q

Product-Bundle Pricing

A

Bundle pricing is a “win-win”

  • the customer pays less for the total bundl than they would buyig the items individually
  • the custoemrs buys more for a higher ticket value on a given purchase

Producer must keep an eye on margins to make bundles profitable

Consumers must perceive a value

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100
Q

Markup (percent)

A

Percentage of sellibg price that is added to the cost to get the selling price

1.20 markup on the 3.60 selling price is a 33.33% markup

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101
Q

Markup

A

A dollar amount added to the cost products to the cost of products to get the selling price

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102
Q

Markup chain

A

The sequence of markups firms use at different levels in a channel

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103
Q

Stockturn rate

A

The number of times the average invnetory is sold in a year

104
Q

Average-cost pricing

A

Means adding a reasonable markup to the average cost of a product

105
Q

Total fixed cost

A

The sumn of those costs that are fixed in total

106
Q

Total variable cost

A

The sum of those changing expenses that are closely related to output

107
Q

Total cost

A

Sum of total fixed and total variable costs

108
Q

Average cost per unit

A

Obtained by dividing total cost by the related quaniyty

109
Q

Average fixed cost (per unit(

A

Dividing total fixed cost by quantity

110
Q

Average variable cost

A

Dividing total variable cost by the related quantity

111
Q

Break even point

A

The quantity wherethe firm’s total cost will just equal its total revenue

112
Q

Marginal analysis

A

Focuses on the changes in total revenue and total cost from selling one more unit to find the most profitable price

113
Q

Value in use pricing

A

Setting prices that wil capture some of what customers will save by substituting the firm’s product for the oe currently being used

114
Q

reference price

A

the price they expect to pay

115
Q

bait pricing

A

Setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store

116
Q

Psychological pricing

A

setting prices that have special appeal to target customers.

Whole range of prices that potential customers see the same

117
Q

Odd-even pricing

A

Setting prices that end in certain numbers

118
Q

price lining

A

Setting a few price levels for a product line and then marking all items at these prices

Assumes that customers have a certain reference price in mind that they expect to pay for a product

119
Q

Demand=backward pricing

A

Setting an acceptable final consumer price and working backward to what a producer can charge

Consumer products

120
Q

Prestige pricing

A

Setting a rather highe price to suggest high quality or high status

121
Q

Full-lie pricing

A

Settibng prices for a whole line of products

122
Q

Complentary product pricing

A

Setting prices on several products as a group

123
Q

Product bundle pricing

A

Settig one price for a set of products

124
Q

Bid pricing

A

Offering a specific price for each possible job rather than setting a price that applies for all customers

125
Q

Negotiated price

A

Price set based on bargaining between buyer and seller

126
Q

Surge pricing

A

Let supply and demand determine the price

127
Q

Price promotion

A

It is all about the $$ and the behavior desired

A disciplined, measured approach is required

Easy to make costly mistakes

Focus should be long term but is often short term

128
Q

Consumer promotion

A

Complex

designed to attract the desired target while reinforcing the product image

ofte paird with a price promoiton

both costs are factored into margin

129
Q

Key problems with sales promotion

A

Erodes brand loyalty

not for amateurs

hard to manage

need for aleternatives

130
Q

What is supply chain?

A

The complete set of firms, facilities, and logistics activities involved in procuring materials, transforming them into entermediate and finished products, and distributing the to customers

Focus on information flows

131
Q

Goal of Supply Chain

A

Right product. Right Quantity Right place right time

132
Q

Supply chain managment is all about tradeoffs

A

Cost - speed- quality

133
Q

Retailing

A

Activities involved in the sale of products to final consumers

consumers buy about 4.5 trillion a year from retailers

retailers must develop their own strategy to survive

wholesaling and retailing are changing rapidly

134
Q

Key features affecting consumers retail choice

A

Convenience

Product selection

Fairness in dealings

Helpful information

Prices

Social image

Shopping atmosphere

135
Q

Retailing on the Internet

A

Moving information

New meaning of convenience

amount of information

online costs for retailers & customers

Brick & mortar stores add online capabilities

136
Q

Some Trends in retailing

A

Growth of interent merchants and online retailing

electronic retailing

more price competition

vertical integration

more chains and franchises - chains becoming larger, more powerful

more and better information

137
Q

What a wholesaler might do for producer-suppliers

A

Provide part of the selling function

Store inventory

Supply capital

Reduce credit risks

Provide marketing infrmation

138
Q

Types of Agent Wholesalers

A

Auction companies

selling agents

brokers

manufactuer’s agents

139
Q

Manufacturers’ agents

A

Sell similar products for several noncompeting producers

work on a commission basis

basically are independent, aggressive sales reps

Especially helpful to small producers and producers whose customers are very spread out

140
Q

Brokers

A

Main purpose is to bring buyers and sellers together

Usually have a temporary relationship with buyer and seller while the deal is negotiated

Earn a commission - from either the buyer or seller - dpeending on who hired them

141
Q

Retailing

A

Covers all of the activies involved in the sale of products to final consumers

142
Q

General sstores

A

Carried anything they could sell in reasonable volume

143
Q

Single line stores

A

Stores that specialize in certain lines of related products rather than a wide assortment

144
Q

Specialty shop

A

Type of conventional limited line store - suaually small and has a distinct personality

145
Q

Department stores

A

Largest stores that are organized into many seperate departments and offere many product lines

146
Q

Mass merchandising concept

A

Says that retailers should offer low prices to get faster turnover and greater sales volumes

147
Q

supermarkets

A

Large stores specialzing in groceries with self-service and wide assortments

148
Q

Discount houses

A

Offered “hard goods” at sbustantial price cuts to customers who would go the discounter’s low rent store, pay cash, and take care of any service problems themselves

149
Q

Mass-merchandisers

A

Large, self-service stores with many dpeartments that emphasize soft goods but still follow the discount houses’ emphasis on lower margins and fast turnover

150
Q

Supercenters

A

Very large stores that try to carry not only food and drug but all goods and services that conumser purchases routinely

151
Q

Convenience food stores

A

Convenience oriented varaionat of the conventiaonal limited line food store

152
Q

Automatic vending

A

Selling and delivering products through vending machines

153
Q

Wheel of retailing theory

A

Says that new types of retaliers enter the market as low-status, low-margin, low-price operators and then evolve into more conventional retailers offering more services with higher operating costs and higher prices

154
Q

Scrambled merchandising

A

Carrying any product lines they think they can sell profitably

155
Q

Corpporate chain

A

A firm that owns and managers more than one store

156
Q

Cooperative chains

A

Retailer-sponsored groups that run their own buying organizations

157
Q

Voluntary chains

A

Wholesaler-sponsored groups that work with independent retailers

158
Q

Franchise operation

A

Franchisor develos a good marketing strategy and the retail franchise holders carry out the srategy in their onw units

159
Q

Wolesaling

A

Concerned with the activities of those persons or establishments that sell to retailers and other merchants but that do not sell in large amounts to final consumers

160
Q

Wholesalers

A

Firms whose main function is providing wholesaling activities

161
Q

Manufactuerers’ sales branches

A

Warehouyses that producers set up at seperate locations away from their factories

162
Q

Merchant wholesalers

A

Own the products they sell

163
Q

Service wholesaler

A

Merchant wholesalers that provide all the wholesaling functions:

  1. general merchandise
  2. single line
  3. specialty
164
Q

Single line wholesalers

A

Service wholesalers that carry a wide variety of nonperishable items

165
Q

Specialty wholesalesr

A

Service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers

166
Q

Limited function wholesalers

A

Provide only some wholesaling functions

167
Q

Cash and carry wholesalers

A

Operate like service wholesalers - except that the customer must pay cash

168
Q

Drop shippers

A

Own the products they sell- but they do not actually handle, stock, or deliver them

169
Q

Truck wholesalers

A

Specialize in delivering products that they stock in their own trucks

170
Q

Rack jobbers

A

Speialize in hard-to-handle assortments of products that a retailer doesnt want to manager

171
Q

Catalog wholesalers

A

Sell out of cataglos that may be distributed widely to smaller industrial customers or retailers that might not be called on by other wholesalers

172
Q

Agent wholesalers

A

Wholesalers who do not own the products they sell

173
Q

Manufacuter’s agent

A

Sells similar products for several noncompeting producers - for a commission on what is actually sold

174
Q

Export or import agents

A

Basically manufactuerers agents who specialize in international trade

175
Q

Brokers

A

Bring buyers and sellers togehter

176
Q

Export and import brokers

A

Operate like other borkers, but they specialize in brining together buyers and sellers from differenty countries

177
Q

Selling agents

A

Take over the whole marketing job of producers not just the selling function

178
Q

Combination export manager

A

A blend of manufactuerers’ agent and selling agent - handling the entire eport function for several producers of similar but noncompeting lines

179
Q

Auction companies

A

Provide a place where buyers and sellers can come together and bid to complete a transaction

180
Q

____________ is the more accepted method of markup

A

cost-based

181
Q

Marketers like the markup method based on selling price

A

It makes it look better because it is often lower

182
Q

Average-cost pricing

A

Adds a reasonable markup to the average cost of a product

simpliifies priincing

quite common, middle men

Usually based on estimates or past recors

  • actual average cost depends on quantity sold!
183
Q

Problems with break even analysis

A

Assumes any quantity can be sold at a ggiven price

Total cost curve is assumed to be a straight line

184
Q

Fixed cost contribution per unit

A

Price - variable cost

Contribution margin per unit

185
Q

Value-in use example

A

Buying a copy machine

we will charge you more up front but overtime you will incurr less costs

186
Q

Sequential Reductions

A

Going out of business sales

Continue to markdown to get more and more groups in

187
Q

Reference price

A

Something that the consumers expect to pay for the product

If it is too low, they may see it as something that is not worth it

188
Q

Leader & Bait

A

Leader - prices product very low to attract customers

ex. run a 1 day discount on milk and increase foot traffic

LEGAL

Bait - you set a price unusually low for an item

  • when the customer comes in you try to get them to buy something else
    ex. looking for 10 dollar mp3 and they are like nahh you should buy the 100 dollar mp3 player

not illegal

189
Q

Bait and Switch

A

Illegal

We are bringing you in a fake advertisement

190
Q

Psychological Pricing

A

Discover range a customer is willing to pay for a product

If you go below psychological barrier they will notice and buy

191
Q

Odd-even pricing

A

Seen in gas stations

end in some number

192
Q

Price Lining

A

Group their items in a good, better, best

neck ties 15, 20, and 25 dollars

193
Q

Demand-Backward

A

Get an idea of what your price could be and then roll that price back

194
Q

prestige pricing

A

set a high price to indicate quality

*common in luxury products

195
Q

Harry Winston Watches are an example of:

A

prestige pricing

196
Q

Bundle pricing

A

You see it in the fast food industry

idea: win win for restaraunt and consumer
- consumer spends more
- additional items are added in at savings

197
Q

Bundle pricing

A

Counsumers have to perceve a value

Producer must keep an eye on the margin

198
Q

Wholesalers sell to:

A

Other wholesalers or other businesses

199
Q

3 basic types of wholesalers

A

Merchant wholesalers - majority

Agent wholesalers - popular option for companies who cannot afford their own sales force

Manufacturere sales branches

200
Q

What a wholesaler might do for producer-suppliers

A

Provide part of the selling function

Store inventory (cut producers’s warehousing costs)

Supply capital (by purchasing producers’s put before it is sold to final custmoers)

reduce credit risks

provide marketing information

201
Q

Merchant wholsealers

A

Take title to the product

202
Q

Limited function merchant wholesaler

A

Cash and carry wholesaler

Drop shipper

Truck wholesalers

Rack jobbers

catalog wholesalers

203
Q

Agent wholesalers

A

Deal brokers

Do not take title to the goods

Make the deal and take a commission

204
Q

Cash and Carry

A

Buy inventory from supplier - when customer comes in they do not offer any credit

205
Q

Drop-shippers

A

Take title but they dont handle the product

No physical handling of the product

206
Q

Truck wholesalers

A

deliver products that they stock in their own trucks

fill gaps in a distribution channel

207
Q

Rack Jobber

A

Take title to goods

Service oriented

They bring in a display rack of greeting cards and keep it stocked and monitor inventory - sell products to the store whatever it sells

Understand their customer and market

208
Q

Catalog wholesalers

A

Send out a catalog to their customers

Being replaced by the interent

209
Q

Agent Wholesalers

A

Do not take title to the goods

manufacuterers’ agents - independent agents that take on a number of noncompleting lines and they represent those lines to retailers

  • save cost of full time sales force

brokers - bring buyers and sellers together - their relationship with people tends to be temporary.

selling agents - take over the whole marketing job. when a company wants to liquidate seasonal items. or liquidate an obsolescent ish product

Auction companies - ebay cristies. They take a percentage on the total selling price

210
Q

Manufactuerer’s agents

A

Sells similar products for several nonocompeting producers

work on commission basis

independent, agressive sales reps

helpful to small producers and producers whose customers are very spread out and small

211
Q

Brokers

A

Bring buyers and sellers together

temporary relationshisp

earn a commisssion

212
Q

Takes title =>

A

merchant wholesaler

213
Q

Promotion objectives

A

Linked to the marketing objectives which are derived from business objetives

When promotion objevtives become unhinged from the marketing objectives the liklihood of failiure increases

214
Q

Advertising objectives should be specific

A

Specific

Measurable

Attainable

Relevant to the target

Timely

Link to marketing strategy

link to promotion

215
Q

Nature of the media

A

Different media have different costs and advantages

Who it reaches

with what frequency

at what impact

at what cost

216
Q

Ad agencies

A

Specialists in planning and handling mass selling details for advertisers

make monehy on percentage of media they buy

15% is not required, but still common

217
Q

Personal selling

A

Often the single largest operating expense

1 or 10 people in sales work

218
Q

Order Getter

A

Responsible for brining in new business and closing deals

219
Q

Order takers

A

work in support of order getters

once business is in house, they service that business

220
Q

Supporting staff

A

Support order takers and getters

Missionary salespeople - pave way for order getter to come in and close business

technical specialists - a team selling expert

221
Q

Missionary salesperson

A

Not actually selling accounts - she is supporting them

222
Q

Sales manager responsibilities

A

Estimate hwo much work can be done by any one prson in a given time period

Use that info to estimate who many people are needed in total

223
Q

Sales Selection and Training

A

Written job description

Multiple interviews

personnel and psycholgical tests

background checks

initial and ongoing training

224
Q

Key steps in the personal selling process

A

Prospect for new customers => set effort priorities => select target

225
Q

Selling formula approach

A

Used for mid-range products

226
Q

Read same sales script to every potentail customer

A

prepared sales presentation

227
Q

Setting the Promotion Budget

A

Percentage of sales - most popular to set marketing budget, not the best, easy, take a fixed percentage of last years sales

problem: incorrectly assumes sales drives marketing

Task method - zero based budgeting

228
Q

Adoption process

A

Diagrams how people understand a product category

229
Q

Innovators

A

First people to adopt product

risk takers

230
Q

Early adopters

A

Get information from sales people and innovators

Not necessarily viewing advertising

231
Q

Early majority are:

A

most influenced by advertisement

232
Q

Market introduction

A

Innovators jump on board

Not making any money

Heres why this new idea is better than your old solution

233
Q

Market growth

A

When the early adopters come in as well as some of the early majority

Marketing strategy changes from explaining the category to here is why my brand is best

234
Q

Market maturity

A

You get the late majority entering in and sales peakY

You have to add a lot more features and benefits

Say your brand is better than everybody elses

235
Q

Sales decline

A

Could still be profitable

Marketing expenses could go down

They could pay more

236
Q

Wicks Hot Chili

A

For manly men chili

237
Q

Two regulatory agencies for labeling

A

CTC ACT of 1914 held that flase misleading labels lables constitute unfair competition

Both federal and state laws regulate labelign

238
Q

FDA regulates:

A

food and drug labels

239
Q

The importance of packaging

A

PAckaging can enhance the product

UPC Codes speed handling

Packaging can lower distribution costs

Packaging sends a message

240
Q

Promote

A

Cleanex package in the shape of a watermellon

241
Q

Display packaging

A

Difficult to open

242
Q

Pros and Cons to the skippy type of packaging

A

They dont have to change their production line

243
Q

New ketchup bottle does what?

A

Enhance product usage

244
Q

What have we learned?

A

Product incorporates many attributes

A well thought out product will addresss the needs of the company, the consuer and will oprimize the mix

245
Q

Individual product

A

A particular product within a product line

A stock keeping unit (sku)

246
Q

Product line

A

set of individual products that are closely relatd

Depth and breadth

Breadth impies number of product lines

Depth concerns choice within product lines

247
Q

Product assortment

A

The set of all product lines and individual products thta firm sells

248
Q

Warranty policies

A

Regulated by magnuson-moss act - producers must often a clearly written warranty if they offer one

Service guarantee

May improve marketing mix

Promises in writing

249
Q

Consumer Product Classes

A

Convenience products - inexpensive, buy them a lot

ex. staples, impulses, emergency

Shopping products - homogeneous and heterogeneous

Unsought products - new unsought, regularly unsought

250
Q

Shopping products

A

Homogeneous - considers brands but price is the decider

Heterogeeous - considers brands, effort made, something other than price decides

251
Q

Specialty products

A

Brand insistence - you will accept no substitutes for

252
Q

One product may be seen in:

A

several ways

253
Q

Jack buying a shirt

A

Homogenous shopping product - thought all the shirts were the same so selected based on price

254
Q

Business products are different

A

Derived demand - a business is not going to buy something that they cant turn around and resell

Inelastic industry demand

Tax treatments differ

255
Q

Business product classes

A

Installations - one time or very infrequent large expensive purchases

professional services

accessories - can be expensive but bought more often

component parts and materials - you are buying radios if you are making cars

Mro supplies

Raw materials

256
Q
A

Marketing (15 decks)

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