Marketing 2101 Exam 3 Review Outline Study Guide Chapters 10 15 April 2013 Chapter 10 Marketing Channels Delivering Customer Value Marketing Channels o Upstream Raw Materials Resources o Downstream Channels that focus on customers Channel Member Functions o Assortment Buying large quantities from several producers and breaking them down into smaller quantities and broader assortments o Matching o Information Buyers with sellers supply demand About markets customers and competition o Promotion Stimulate purchasing o Physical distribution Transportation and storage aka marketing logistics Channel Length o Direct marketing channels NO intermediary levels between manufacturer and the customer o Indirect marketing channels One or more intermediaries Franchises o Franchisee on rules o Franchisor Channel Conflict assigns territory training support o Horizontal conflict same channel level o Vertical conflict different channel levels up front cost payments to franchisor buys materials and runs Chapter 11 Retailing and Wholesaling Retailer Classification Product line o Convenience stores o Supermarkets o Superstores o Specialty Stores o Department Stores o Category Killers o Service Retailers Retailer Classification o Amount of Service Self Service E g discount stores Limited Service E g most department stores Full Service E g high end department stores and specialty stores o Relative price Regular Prices Discount Stores low margins offset by high volume Off price retailers Independent off price retailers TJ Maxx Marshall s Factory Outlets Vanity Fair Nike Warehouse Clubs Sam s Club Costco Retailer Classification o Organization Corporate chain stores Commonly owned controlled o e g Pottery Barn Starbucks Sears Voluntary chains Wholesaler sponsored groups of independent retailers o e g Western Auto IGA True Value Franchise organizations Franchisor franchisee o e g McDonald s Jiffy Lube 7 Eleven o Shopping Centers Shopping Malls Community Neighborhood Shopping centers Power Centers Lifestyle Centers Wholesaling o Types of wholesalers Merchant wholesalers take ownership of products Brokers and agents do not take ownership Brokers Assist in negotiations between buyers and sellers Agents Selling Purchasing agents Manufacturers and retailers branches o Add value by Assortment building Bulk breaking Warehousing and transportation Promoting Financing Sharing marketing information Chapter 12 Advertising Public Relations Promotion Mix o Advertising o Direct Marketing o Public Relations o Sales Promotion o Personal Selling Advertising o Setting advertising objectives Inform Persuade Remind o Determining advertising budget and task method o Developing advertising strategy Creating message and selecting media o Evaluating advertising effectiveness Measuring communications effects Measuring sales effects Return on Advertising investment Selecting Advertising Media o Reach frequency and impact Affordable Percentage of Sales Competitive Parity Objective Reach of people in the target audience who are exposed to ad campaign Frequency how many times an average person in the target audience is exposed to your message Impact measure of message exposure o Media types and vehicles Electronic Print Other o Media timing Television radio Internet Newspapers magazines Outdoor etc Schedule over course of a year Pattern of ads Public Relations o Obtaining favorable publicity building good corporate image and handling defusing unfavorable rumors o Strong impact on public awareness at much lower cost with generally greater credibility than advertising o Lacks control or recurrence o PR Tools News Press Releases Stories Articles Speeches Special Events Chapter 13 Personal Selling and Sales Promotions The Sales Force o Types Agents Sales consultants Sales representatives Account executives Sales engineers District Managers Marketing reps Account development reps o Sales force strategy Focus New business Relationship or both Type Staffing Outside Inside or both Dedicated Manufacturers reps or both o Sales force structure How organized Territorial Customer Team selling The Sales Force Cont d Compensation o Options Straight salary Straight commission Salary plus bonus or commission o Goal support company s marketing objectives Increase market share Sell specific products Maximize profitability How Salespeople Spend Their Time o Administration 31 o Travel Time 18 o Personal Downtime 17 o Problem Solving 14 o Prospecting 10 o Active Selling 10 The Selling Process Close Follow up Sales Promotion o Can be targeted toward o Prospect Pre approach Approach Presentation Objections Final buyers consumer promotions Retailers wholesalers trade promotions Business customers business promotions Sales force sales force promotions o Growing trend Product brand managers facing more pressure to increase current sales Companies are facing more competition Advertising efficiency is declining Consumers more deal oriented Chapter 14 Direct Marketing Direct Marketing consumers o Consists of direct connections with carefully targeted individual One on one communication Offers tailored to needs of narrowly defined segments Usually seeks direct immediate and measurable consumer response Direct Marketing o Direct mail marketing Sending an offer announcement or other item to a person at a particular address o Telephone marketing Telemarketing Out o Catalog Marketing bound or Inbound Direct marketing through print video or digital catalogs Mailed to select customers made available in stores or presented online o Direct response TV marketing Direct response television advertising DRTV TV spots that are 60 or 120 seconds long Infomercials 30 minute or longer advertising program Home shopping channels Cable channels dedicated to selling o Kiosk marketing Information and ordering machines generally found in stores airports and other locations Direct Marketing o Types of Online Marketers Brick and mortar companies Click only companies Operate solely online Click and mortar companies Sometimes referred to as brick and click Multi channel distribution o Online Marketing Domains B2C B2B C2C C2B Chapter 15 The Global Market Place Entrance Strategies o Exporting o Joint Ventures o Direct Investment Industrial Structures o Four types of industrial structure include Subsistence economies Raw material exporting economies Industrializing economies Industrial economies External Forces Global Communication Strategies o Standardized global marketing mix Using