Ch 16 Different classifications of retailing o Form of ownership Independent retailer Corporate chain Contractual system o Level of service Self service Limited service Full service o Merchandise line Depth of line Breadth of line Identify from a list non store retailing examples o Automatic vending o Direct mail and catalogs o Television home shopping o Online retailing o Telemarketing o Direct Selling Different levels of service which ones are the most labor intensive for the customer as well as the company o Self service most labor intensive for the customer o Full service most labor intensive for the company What is the term shrinkage in retailing refer to o Retailers trying to keep prices low breakage theft and fraud by customers and employees What goes into the retailing mix o Retail pricing o Store location o Retail communication o Merchandise What is the wheel of retailing what does it refer to o Describes how new forms of retail outlets enter the market passage of time Starts with low prices margin status Goes to higher prices margin status Then still higher prices margin status Finally new form outlet enters retail environment with same characteristics What is multi channel marketing o The blending of different communication and delivery channels that are mutually reinforcing in attracting retaining and building relationships with consumers WA Be able to calculate a markup o Markup Selling price COGS o Markup on cost selling price Selling price COGS Selling price x 100 What is a full service merchant wholesaler o General merchandise wholesaler carry a broad assortment of merchandise and perform all channel functions little depth o Specialty merchandise wholesaler narrow range of products but have an extensive assortment of products large depth Define a merchant wholesaler o Merchant wholesalers are independently owned firms the take title to the merchandise they handle What are the different utilities of retailing o Time o Place o Form o Possession Understand an example and differentiate between breadth and depth o Breadth number of different product lines o Depth Number of items within each product line Know the different types of franchising types o Business format franchises McDonalds 7 eleven subway o Product distribution franchises Ford Coca Cola Ch 17 What does the promotional mix include IMC o Advertising mass o Personal selling customized o Sales promotion mass o Public relations mass o Direct marketing customized Understand and what comprises the IMC definition o Integrated marketing communications coordinate a variety of promotion alternatives to provide a consistent message across audiences What are the strengths and weakness of each advertising type o Advertising Efficient in reaching a large amount of people Difficult to receive good feedback high absolute cost o Personal selling Immediate feedback very persuasive can give complex info Extremely expensive messages may vary o Sales promotion Effective in changing behavior flexible Easily abused and duplicated promotion wars o Public relations Credible source Difficult to get media cooperation o Direct marketing Messages can be prepared quickly relationship with consumer Declining customer response database management is expensive Understand the communication process o A source o A message o o o A channel of communication A receiver Processes of encoding and decoding Know the characteristics of the promotional mix o Complexity technological sophistication o Risk financial social and physical risk o Ancillary services degree of service or support required after the sale Be able to differentiate between a push and pull strategy o Push directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product o Pull directing its promotional mix at ultimate consumers retailers order the product from wholesalers and this the item is pulled through the intermediaries Four different budgeting approaches of the IMC o Percentage of sales finds are allocated to promotion as a percentage of past or anticipated sales o Competitive Parity matching the competitor s absolute level of spending or the proportion of point market share o All you can afford money is allocated to promotion only after all other budget items have been covered o Objective and task determines objects outlines tasks determines promotion cost Know the different phases of the IMC o Planning implementation evaluation Identify target audience Specify promotion objectives Set the promotion budget Select design schedule the promotion Know the different forms of direct marketing o Direct mail and catalogs o Television home shopping o Telemarketing o Direct selling Know the EU E privacy directive o Provides explicit laws for website owners concerns the processing of personal data and the protection of privacy online How does IMC effect lead generation o Result of an offer designed to generate interest in a product or service and request for additional information Promotional mix uses three things to persuade people o Pioneering informational o Competitive persuade o Reminder Intro inform Growth persuade Maturity remind Decline phase out Ch 18 Advertising can take 3 forms what are they o Pioneering informational o Competitive persuasive o Reminder Examples of pioneering competitive reminder ad o Pioneering tells people what the product can do what it is and how it where it can be found o Competitive promotes specific brand features and benefits o Reminder reinforces previous knowledge of a product What are the 4 commonly used forms of intuitional advertising o Advocacy states company s position on an issue o Pioneering o Competitive o Reminder Know what advertising appeal is being used from an example o Fear sex and humor What are some of the goal of institutional advertising o Build goodwill or an image for an organization rather than promote a product or service Know the equation o reach x frequency grp gross rating points o Will help solve multiple questions What are advertisers trying to maximize and minimize through advertising o Try to maximize reach in their target market at the lowest cost What kind of advertising schedules are there o Continuous steady schedule when seasonal factors are unimportant advertising is run throughout the year o Flighting intermediate schedule periods of advertising are scheduled between periods of no advertising to reflect seasonal demand o Pulsing burst schedule combined with a