Concepts That May Appear On Your Marketing 305 Exam 4 Chapters Retail and Wholesaling Integrated Marketing communications and direct marketing Advertising sales promotions and public relations You are responsible for knowing these terms their definitions these lists and examples of each term concept Retailing all activities involved in selling renting and providing products and services to ultimate consumers for personal family or household use Forms of ownership o Independent retailer one of the most common forms of retail ownership indep business owned by the individual 1 1 million establishments in the U S Hardware stores jewelry stores Advantage is they can be their own boss 50 have 4 employees Can offer convenience personal service and lifestyle compatibility o Corporate chain multiple outlets under common ownership Centralization in decision and purchase making o Contractual systems Wholesaler sponsored voluntary chains Business format franchises Product format franchises Level of service self service requires customers perform many functions ie gas station redbox Costco limited service provide some services ie Walmart k mart target full service provide many services ie saks Newman Marcus Depth vs breadth of line depth has to do with a considerable assortment of products while breadth has to do with a broad product line but limited depth ie sports authority has considerable depth while Dillard s has considerable breadth Wheel of retailing Know how it works describes how new forms of retail outlets enter the market The retail life cycle the process of growth and decline that retail outlets experience over time 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 Promotional mix the combination of one or more of the communication tools used to inform persuade or remind prospective buyers Communication process the process of conveying a message to others using these six elements o Source o Encode o Channel of communication o Message o Noise o Decode o Receiver o Feedback loop Response Feedback Promotional elements Know the strengths and weaknesses of each o Advertising efficient means for reaching large numbers of people Weaknesses high absolute cost difficult to receive good feedback o Personal selling immediate feedback persuasive can select audience Weaknesses extremely expensive per exposure o Public relations often most credible source in the consumers mind Weaknesses difficult to get media cooperation o Sales promotions effective at changing behavior in short run flexible Weaknesses easily abused lead to promotion wars o Direct marketing messages can be prepared quickly facilitate relationships with costumers Weaknesses declining consumer response database management is expensive Promotional objectives for each phase of the product life cycle Remember what I told you about the real world overlap of these objectives Stage of Product Lifestyle different things dominate mindful there is lots of overlap Intro inform persuading publicity free samples Growth Persuade advertising to differentiate Maturity remind sales promotions and direct email Decline fade out Depends circumstantial little money spend on promotion Push vs pull strategy Know the textbook and family examples I gave you In a macro sense Push Manufacturer wholesaler retailer consumer The commercials that we see on TV billboards Pushing things on you and constantly trying to persuade you Pull Consumer Retailer Wholesaler Manufacturer Not trying to get to you you are the secondary target Use the consumer to get to the retailer MEDICINE COMMERCIALS Much more widely used in past then it is now Micro approach Family Aim broccoli and healthy food prime time of parents Candy sugar at prime Tv time of kids Tv Focus at the children Push pushed product on Mom and Dad who then push it onto their kids Pulled money from them from the children Promotion decision process diagram planning I D target audience set budget design and schedule promotion implementation pretest the promotion carry it out evaluation posttest the promotion make needed changes Specifying promotion objectives o Awareness consumers ability to recognize and remember the product or band o Interest an inc in the consumers desire to learn about some of the features of the o Evaluation the consumer s appraisal of the product or brand on important name product or brand attributes o Trial the consumers 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 brand Product advertisements Institutional advertisements o Pioneering Tell people what a product is what it can do and where it can be found Main focus is to inform target market Example Visa Interesting convincing effective o Competitive objective is to persuade the target market to select the firms brand over the competitor o Reminder used to reinforce previous knowledge of a product M M products that have achieved a well recognized position and are in the ature phase of their product life cycle o Advocacy State te position of a company on an issue Sarah Mcglachlin and the puppies United Nations for Children donating to wildlife fund March of dimes o Pioneering Announcements about what a company is what it can do or where it is located introductory we are informing persuading and also reminding the entire cycle Kinds of advertising with products and services we tend to see with British Petroleum o Competitive Promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers Competative Comparative more likely to see with stars o Reminder bring the companys name to the attention of the target market again More likely to see with cash cow Developing the advertising program o Identifying the target audience understanding the lifestyles attitudes and demographics of the target market NBC o Specifying advertising objectives Selecting media evaluating a campaign product lifestyle and whether we are informing persuading reminding or all of them with one dominating o Setting the advertising budget o Designing the advertising Message Content Create Actual Message Selecting the right media Different media alternatives Know the strengths and weaknesses of each o TV valuable medium