Marketing 305 Exam 4 Chapter 13 Retailing Forms of ownership o Independent retailer o Includes all activities involved in selling renting and providing products and services to ultimate consumers for personal family or household use Owned by an individual Account for 1 1 million retail establishments in US Advantage owner gets to be his own boss o Corporate chain o Contractual systems Multiple outlets under common ownership Macy s etc Wholesaler sponsored voluntary chains Like SAMs Club or COSTCO Business format franchises Like McDonalds Radio Shack etc Franchiser provides step by step procedures for most aspects of the business and guidelines for the most likely decisions a franchise will face Product format franchises Ford dealership Coca Cola distributor Franchiser provides a few general guidelines and the franchisee is much more independent Level of service o Self service process o Limited service o Full service Requires that customers perform many functions during the purchase Gas stations airlines supermarkets Redbox Customers are responsible for most shopping activities although salespeople are available in departments such as consumer electronics jewelry and lawn and garden Mostly specialty stores and department stores Provide many services to customers Examples Nordstrom free returns gift cards credit cards through Nordstrom bank wedding specialists personal stylists etc Depth vs breadth of line are limited line stores o Depth stores that carry a considerable assortment depth of a related line of items Number of items within each product line Ex Sports Authority carries considerable depth in sports equipment ranging from weight lifting accessories to running shoes Stores that carry tremendous depth in one primary line of merchandise are single line stores o Breadth stores that carry a broad product line with limited depth Number of different product lines Large department stores carry a wide range of different types of products but not unusual sizes Wheel of retailing Know how it works 1 Outlet starts with low prices low margins low status As time passes outlet adds services 2 Outlet how has higher prices higher margins higher status 3 Outlet now has still higher prices still higher margins still higher As more time passes outlet adds still more services 4 New form of outlet enters retailing environment with characteristics of outlet in box 1 The retail life cycle o Early growth o Accelerated development o Maturity o Decline o Catalog retailers o Business district retailers o General stores Chapter 14 Promotional mix Be familiar with the circumstances under which the three types of retailers in the decline phase of the retail life cycle can back themselves out of that phase give themselves new life from my lecture o The combination of one or more of the communication tools used to inform persuade or remind prospective buyers Communication process o Source may be a company or person who as information to convey o Encode the process of having the sender transform an idea into a set of symbols o Channel of communication how the message is sent o Message o Noise what is going on in the channel of communication Ex physical noise emotional state what s going on in the office etc o Decode the reverse of encoding the process of having the receiver take a set of symbols the message and transform and the symbols back to an idea o Receiver must have a shared field of experience with the sender o Feedback loop starting the process over Response Feedback Promotional elements Know the strengths and weaknesses of each o Advertising any paid form of nonpersonal communication about an organization product service or an idea by an identified sponsor o Personal selling the two way flow of communication between a buyer and a seller often in a face to face encounter designed to influence a person s or group s purchase decision o Public relations a form of communication management that seeks to influence the feelings opinions or beliefs held by customers stockholders suppliers employees and others about a company and its products or services o Sales promotions a short term offer designed to arouse interest in buying a product or service o Direct marketing promotional element that uses direct communication with consumers to generate a response in the form of an order a request for further information or a visit to a retail outlet Promotional objectives for each phase of the product life cycle Remember what I told you about the real world overlap of these objectives o To inform introduction Publicity Advertising Sales force calling or intermediaries Sales promotion in form of free samples o To persuade and inform growth Personal selling to intermediaries Advertising to differentiate attributes from those of competing brands o To remind persuade and inform maturity Reminder advertising Direct mail reminders Sales promotion in form of discounts coupons and events Limited personal selling o To phase out to re inform persuade and remind decline Little money spent on promotion Push vs pull strategy Know the textbook and family examples I gave you o Push flow of demand stimulation and promotion goes from manufacturer to consumer Manufacturer Wholesaler Retailer Consumer o Pull flow of demand stimulation goes from consumer to manufacturer and flow of promotion goes directly from manufacturer to consumer skipping over wholesaler and retailer Manufacturer Wholesaler Retailer Consumer Promotion decision process o Planning Developing the promotion program o Implementation Executing the promotion program o Evaluation Assessing the promotion program Specifying promotion objectives o Awareness the consumer s ability to recognize and remember the product or o Interest an increase in the consumer s desire to learn about some of the features brand name of the product or the brand o Evaluation consumer s appraisal of the product or brand on important attributes o Trial the consumer s actual first purchase and use of the product or brand o Adoption through a favorable experience on the first trial the consumer s repeated purchase and use of the product or the brand Chapter 15 Product advertisements found o Pioneering tell people what the product is what it can do and where it can be o Competitive advertising that promotes a specific brand s features and benefits o Reminder used to reinforce previous knowledge of a product Institutional advertisements o Advocacy state the position of a company on an issue o
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