CTE 3806 Final Exam Study GuideBrands- 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 interactiveHuman 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, carefulwhere 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- JC Penney up and down - EAS- hard tags on merchandiseDifferent 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- Layouts and designs for merchandise- planograms- physical layout of store - Merchandising dog food in country- big sacks of food, tractor supply very young company- gardening gloves, shirts, fencing, tractors, mowers- Disney- service recovery, emotion of customer and experience - Rounder layout, 4 way layout looks like a cross - Smallest sizes on top down to biggest - Merchandise sells best at up level- Services in store can come from headquarters- Some stores allowed to freelance- make own choices on customer service - Amazon- delivery system, don’t make own products Ch. 15 Key PointsIntegrated 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.Advertising• Entails the placement of announcements and persuasive messages purchasedby 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.Personal Selling• Communication processes in which sales associates help customers satisfy their needs through face-to-face exchanges of information. Public Relations• 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 mediaDirect 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 PointsStore 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 ActSet Goals• Employee performance improves when employees feel:• That their efforts will enable them to achieve the goals set for them bytheir managers.• That they’ll receive rewards they value if they achieve their goalsEvaluation• 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 improvingemployee skillsRewarding Employees• Extrinsic Rewards are rewards provided by either the employee’s manager or the firm such as