Marketing 305 Exam #4Chapter 13- Retailingo Includes all activities involved in selling, renting, and providing products and servicesto ultimate consumers for personal, family, or household use- Forms of ownershipo Independent retailer Owned by an individual Account for 1.1 million retail establishments in US Advantage: owner gets to be his own bosso Corporate chain Multiple outlets under common ownership (Macy’s, etc.)o Contractual systems 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 serviceo Self-service Requires that customers perform many functions during the purchase process Gas stations, airlines, supermarkets, Redboxo Limited-service Customers are responsible for most shopping activities, although salespeopleare available in departments such as consumer electronics, jewelry, and lawnand gardeno Full-service 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 lineo Depth: stores that carry a considerable assortment (depth) of a related line of items are limited-line stores 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 storeso 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 services2. Outlet how has: higher prices, higher margins, higher status3. Outlet now has: still higher prices, still higher margins, still higher**As more time passes, outlet adds still more services4. New form of outlet enters retailing environment with characteristics of outlet in box 1- The retail life cycleo Early growtho Accelerated development o Maturityo Decline- 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 Catalog retailerso Business-district retailerso General storesChapter 14- Promotional mixo The combination of one or more of the communication tools used to inform, persuade, or remind prospective buyers- Communication processo Source – may be a company or person who as information to conveyo Encode – the process of having the sender transform an idea into a set of symbolso Channel of communication – how the message is “sent” o Messageo 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 ideao Receiver – must have a shared “field of experience” with the sendero 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 sponsoro 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 decisiono 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 serviceso Sales promotions – a short-term offer designed to arouse interest in buying a product or serviceo 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 sampleso To persuade and inform – growth  Personal selling to intermediaries Advertising to differentiate attributes from those of competing brandso To remind, persuade, and inform – maturity  Reminder advertising Sales promotion in form of discounts, coupons, and events Limited personal selling Direct-mail reminderso 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  Consumero 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 processo Planning – Developing the promotion programo Implementation – Executing the promotion programo Evaluation – Assessing the promotion program- Specifying promotion objectiveso Awareness – the consumer’s ability to recognize and remember the product or brand name o Interest – an increase in the consumer’s desire to learn about some of the features of the product or the brando Evaluation – consumer’s appraisal of the product or brand on important attributeso Trial – the consumer’s actual first purchase and use of the product or brando Adoption – through a favorable experience on the first trial, the consumer’s repeated purchase and use of the product or the brandChapter 15- Product