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BCOR 2400: TEST 3
Marketing channel |
consists of individuals and firms involved in the process of making a product or service available for use or consumption by customers |
Time utility |
having a product or service when you want it |
Place utility |
having a product or service where consumers want it
|
Form Utility |
involves enhancing a product or service to make it more appealing to buyers
|
Possession utility |
entails efforts by intermediaries to help buyers take possession of a product or service (traveling agent) |
Intermediaries |
perform transactional functions (when they buy or sell products or service), Logistical functions, and Facilitating fucntions (make a transaction easier for buyers) |
Direct marketing channels |
allow customers to buy products by interacting with various advertising media with out face-to-face meeting with a sales person |
Multichannel marketing |
the blending of different communication and delivery channels that are mutually reinforcing relationship with consumers who shop traditional and online |
Dual distribution |
arrangement whereby a firm reaches different buyers by employing 2 or more different types of channels for the same product ( ex. GE selling to contractors for appt buildings and to Lowe's for customers) |
strategic channel alliances |
ex. General mills & Nestle |
Vertical Marketing systems |
professionally managed and centrally coordinated marketing channels designed to achieve channel economics and maximum marketing impact |
Corporate vertical marketing system |
combination of successive stages of production and distribution under a single ownership |
Contractual vertical marketing systems |
independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone |
Administered vertical marketing system |
achieve coordination at successive stages of production and distribution by the size and influence of one channel rather than through ownership ex. Procter & Gamble |
Intensive distribution |
firm tries to place its products and services in as many outlets as possible |
Exclusive distributon |
only one retailer in a specified geographical area carries the firm's products |
Selective distribution |
a firm selects a few retailers in a specific geographical area to carry its products |
Vertical channel conflict |
occurs between different levels in a marketing channel |
horizontal channel conflict |
occurs between intermediaries at the same level in a marketing channel (b/w Target and Kmart) |
supply chain |
various firms involved in performing the activities required to create and deliver a product or service to customers or industrial users |
total logistics cost |
includes expenses associated with transportation, material handling and warehousing, inventory, stockouts,order processing, and return product handling |
form of ownership |
distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual system own the outlet |
level of service |
describes the degree of service provided to the customer. The three levels are self-, limited-, and full-service retailers |
merchandise line |
describes how many different types of products a store carries and in what assortment |
Depth of product line |
the store carries a large assortment of each item (such as a show store that carries running shoes, dress shoes, and children shoes) |
breadth of product line |
a variety of different items a store carries such as appliances and books |
scrambled merchandizing |
offering several unrelated product lines in a single store |
hypermarket |
offer "everything under one roof" |
issues with online shopping |
2/3 of online shoppers put items into check out and then leave to compare prices other places. 70% of people who leave do not return |
retail positioning mix |
a matrix that positions outlets on two dimensions: breadth of product line and value added |
retailing mix |
activities related to managing the store and the merchandise in the store: retail price, store location, retail communication, merchandise |
Mark up retail pricing |
refers to how much should be added to the cost the retailer paid for a product to reach the final selling price |
original mark up |
the difference between retailer cost and initial selling price |
maintained mark up |
difference between the final selling price and retailer cost |
Markdown retail pricing |
occurs when a product does not sell at the original price and an adjustment is necessary |
off price retail |
selling brand-name merchandise at lower than regular prices |
shrinkage |
breakage, and fraud by customers and employees |
shopper marketing |
the use of display, coupons product samples, and other brand communication to influence shopping behavior in a store |
Prizm |
a data and market research company- groups every household based on demographic and psychographic data into one of 66 segments. Here are those 66 segments organized by wealth and the density of where they live. As a retailing marketer, I want to find people whose lifestyle fits my retail positioning, place my stores near them and merchandise my stores to their |
retailing measurement |
Sales per Square Foot ($) and Same Store Growth (%) |
sales per square footsales per square foot |
total sales ($)/selling area in square feet (#) |
same store growth |
[(store sales year 2($) - store sales year 1($)) /store sales year 1($)] x 100 |
integrated marketing communications |
consistent message across all communications: advertising, sales promotion, publicity, personal selling, direct marketing |
purpose of promotion |
Inform perspective buyers, persuade them to buy, remind them the benefit |
promotion 4 W's |
who is the target audience, what are the objectives, budgets, and tools, where should the promotion be run, and when should the promotion be run |
percentage of sales budgeting |
funds are allocated to promotion as a percentage of past or anticipated sales in terms of dollars or units sold |
competitive parity budget |
matching the competitors absolute level of spending or the proportion per unit of market share |
all you can afford budgeting |
money is allocated to promotion only after all other budget items are covered |
objective and task budgeting |
the company (1) determines its promotion objective, (2) outlines the tasks it will undertake to accomplish those objectives and (3) determines the promotion cost of performing those tasks |
6 key elements of the communication process |
a source, a message, a channel of communication, a receiver, and the process of encoding and decoding |
field of experience |
Similar understanding and knowledge shared between sender and receiver |
Noise |
Extraneous factors that can work against effective communication by distorting a message or the feedback received |
elements of promotional mix |
advertising, personal selling, public relations, sales promotion, and direct marketing |
advertising |
mass, fees paid for space or time, efficient means for reaching large numbers of people, high absolute costs, difficult to receive good feedback |
personal selling |
customized, fees paid to sales as either salaries or commissions, immediate feedback, very persuasive, can select audience, can give complex info, extremely expensive, message may differ between sales people |
PR |
customized, not direct payment to media, often most credible source in consumers mind, difficult to get media cooperation |
sales promotion |
mass, wide range of fees paid, depending on promotion selected, effective at changing behavior in short run, very flexible, easily abused, can lead to promotion wars |
direct marketing |
customized, cost of communication through mail, messages can be prepared quickly, facilitates relationship with customer, decline customer response, database management is expensive |
product life cycle |
introduction stage, growth stage, maturity stage, decline stage |
push strategy |
directing a promotional mix to channel members to gain their cooperation in ordering and stocking the product |
pull strategy |
directing its promotional mix at ultimate consumers to encourage them to ask the retailer for a product |
two types of advertisments |
product advertisements and institutional
|
product advertisements |
pioneering (informational), competitive (persuasive) and reminder |
institutional |
to build goodwill or an image for an organization rather than promote a specific good or service |
advocacy ads |
states the position of a company on an issue |
pioneering institutional |
used for announcements of what about what a company is, what it can do, or where it is located |
competitive institutional |
promotes the advantages of one product class over another |
reminder institutional |
simply bring attention of company name to the target market again |
continuous schedule |
when seasonal factors are unimportant, advertising is run at continuous or steady schedule throughout the year |
flighting schedule |
periods of advertising are scheduled between periods of no advertising to reflect seasonal demand |
pulse schedule |
a flighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion, or intro of new product |
media planning goals |
-Maximize exposure vs minimal costs
-Maximize revenue produced vs costs incurred |
sales promotions |
coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point of purchase displays, rebates, product placement |
media richness |
involves the degree of acoustical, visual, and personal contact between two communication partners. the high media richness and quality of presentation, the greater the social influence that communication partners have on each other's behavior |
self-disclosure |
favorable image is affected by the degree of self disclosure about a person's thoughts, feelings, likes, and dislikes - where greater self-disclosure is likely to increase one's influence on those reached |
order getter |
sells in a conventional sense and identifies prospective customers, provides customers with info, persuades customers to buy, closes sales, and follows up on customers use of a product or service |
order takers |
processes routine orders or reorders for products that were already sold by the company. Preserve an ongoing relationship with existing customers and maintain sales |
handling objections |
1. acknowledge and convert the objection
2. Postpone
3. Agree and neutralize
4. accept the objection
5. Denial
6. Ignore the objections |