CTE 3806 Final Exam Study Guide Brands Tony the Tiger for Frosted Flakes Private label brands Advertising integrated marketing communications radio online TV one outlet or spread across many different avenues Zara Abercrombie don t spend a lot on advertising Geico heavily advertises olive garden chili s Print catalogs Holidays candy store for valentines day Nostalgia shows multi generations relationships ex Engagement used a lot for cereals Interested a lot in teens Social media twitter interactivity Catalogs more direct marketing Kiosks more interactive Human Resources How do you manage store Hire and fire Benefits Give rewards and punishments raise parking privileges Extrinsic rewards something s given to you Intrinsic rewards you feel good within yourself when you make a big sale or something Salary can be fixed so much per hour or also have commission on top Vacations typical paid vacation is 2 weeks France gives more vacation time strong union that supports workers 5 weeks a year Employee theft most shrinkage is from employees Flash robs gang related 40 or 50 people go into a store at once and take out store rare usually in big cities young adults Protect against shoplifting mirrors cameras people walking on floor careful where you place expensive merchandise close to register cash wrap or up high impulse items as well candy magazines Newspaper don t keep for too long more daily inside have advertising insert Newspaper makes more money from inserts than subscriptions Kohl s sales going up EAS hard tags on merchandise JC Penney up and down Different Layouts Grid grocery store Racetrack up and down target Free form boutique Store windows done so you see front How you set layout goes with how customer approaches it Displayed in bulk excitement India known for food displays like that Cultures and color favorite American color is blue especially for males means peaceful Mexico favorite color is red 1 in 6 Americans has some Hispanic heritage Don t fight what the customers want highest percent of sales store should be devoted to that Longer in store you buy more slow people down with music displays scent is important throughout store Service Merchandising dog food in country big sacks of food tractor supply very Layouts and designs for merchandise planograms physical layout of store young company gardening gloves shirts fencing tractors mowers Smallest sizes on top down to biggest Disney service recovery emotion of customer and experience Rounder layout 4 way layout looks like a cross Merchandise sells best at up level Amazon delivery system don t make own products Services in store can come from headquarters Some stores allowed to freelance make own choices on customer service Ch 15 Key Points Advertising Personal Selling Public Relations Integrated Marketing Communications Integrate a variety of communication elements to deliver a comprehensive consistent message to all customers over time across all elements of a retail mix and across all delivery channels Entails the placement of announcements and persuasive messages purchased by retailers and other organizations that seek to inform and or persuade members of a particular target market or audience about their products services organizations or ideas Communication processes in which sales associates help customers satisfy their needs through face to face exchanges of information Managing communications and relationships to achieve various objectives Building and maintaining a positive image of the retailer Handling or heading off unfavorable stories or events Maintaining positive relationships with the media Direct Marketing Mobile marketing is marketing through wireless handheld devices such as cellular telephones and m commerce or mobile commerce involves completing a transaction via the cell phone Brands Distinguishing name term or symbol such as a logo that identifies the products or services offered by a seller and differentiates those products and services from those offered by competitors Determine Communication Budget Marginal Analysis Method Based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution Very hard to use because managers don t know the relationship between communication expenses and sales Objective and task Method Determines the budget required to undertake specific tasks to accomplish communication objectives Affordable Budgeting Method sets communication budget by determining what money is available after operating costs and profits are budgeted Drawback The affordable method assumes that the communication expenses don t stimulate sales and profits Percentage of Sales Method communication budget is set as a fixed percentage of forecasted sales Drawback This method assumes the same percentage used in the past or by competitors is still appropriate for the retailer Competitive Parity Method this communication budget is set so that the retailer s share of communication expenses equals its share of the market Drawback This method like the others does not allow the retailer to exploit the unique opportunities or problems they confront in a market Ch 16 Key Points Store Management Store managers are responsible for managing two of the retailer s most important assets employees and real estate Legal Considerations in Hiring Equal Employment Opportunity Commission EEOC Age Discrimination and Employment Act Disparate Treatment Disparate Impact Americans with Disabilities Act Set Goals Employee performance improves when employees feel That their efforts will enable them to achieve the goals set for them by their managers That they ll receive rewards they value if they achieve their goals Evaluation Who Should Do the Evaluation System is designed by the human resource department Evaluation is done by immediate supervisors How Often Should Evaluations Be Made Annually or semiannually Feedback from evaluations is the most effective method for improving employee skills Rewarding Employees Extrinsic Rewards are rewards provided by either the employee s manager or the firm such as compensation promotion and recognition A la Carte plans give effective employees a choice of rewards for their good performance Intrinsic Rewards are rewards employees get personally from doing their job well like doing their job well because they think it is challenging and fun Job enrichment the redesign of a job to