MKT 3010:Test 3
112 Cards in this Set
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Supply Chain Management
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a connected chain of business entities. Supports logistic function.
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Logistics
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activities that focus on getting right amount of products to right place at right time at lowest cost
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Supply Chain Management (2)
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Supply Chain Management (2)
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Supply Chain Managers are responsible for:
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-Making Decisions
-Management of information through supply chain
-Coordinate relationships b/t company and external partners
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Benefits of Supply Chain Management
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lower inventory, transportation, warehousing, and packaging costs
Greater supply chain flexibility
Improved customer service
higher revenues
increased profitability
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Supply Chain is which of 4 P's?
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Place
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Marketing Channels
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transfers of ownership.
(Manufacturer to wholesaler to retailer)
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*Logistics Components
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1. Sourcing & Procurement
2. Production Scheduling
3. Order Processing
4. Inventory Control
5. Transportation
6. Warehouse & Materials handling
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Intermediaries
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Middleman
Agent/Broker
Wholesaler
Retailer
Distributor
Dealer
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Intermediaries Functions Performed (3)
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Transactional (Buying, selling, risk taking)
Logistical (assorting, sorting, storing, transporting)
Facilitating (financing, grading, mkt info)
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Supply Chain Streamline
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Distribution: reduce number of transactions, increased value for consumers, more efficient and effective.
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Supply Chain Management effects MKT by
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fulfilling delivery promises, meet customer expectations, reliant on an efficient supply chain
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Information flows
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supply chain is great source of information and a data warehouse catelogues information
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EDI
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Electronic Data Interchange: Information technology that replaces paper documents that accompany business transactions with electronic transmissions of information
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Benefits of EDI
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reduces cycle time, easily analyzed & used, quality of communications
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*Electronic Data Exchange (5)
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Vendor-managed inventory
advanced shipping notice
CPFR
Extranet
Intranet
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CPFR
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Collaborative Planning Forecasting & Replenishment
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Supply Chain Technology
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Automatic Identification Systems
Communications Technology
Supply Chain Software Systems
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Automatic Identification Systems
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Barcoding, radio frequency technology
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Pull Supply Chain Management
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Customer demand - orders based on sales data, more accurate inventory, better when demand is uncertain
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Push Supply Chain Management
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regularly demanded - merchandise allocated based on forecast, does not need sophisticated system, good for ready demand items
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*Cross-Docking
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form of warehousing in which large incoming shipments are received and then broken down into (sometimes) smaller outgoing shipments to demand points in a geographic area
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Ticketing/ Merchandising
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creating price and identification labels and placing them on merchandise
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JIT
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Just In Time - process that redefines & simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed
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Advantages of JIT
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reduced raw materials inventory
shorten lead times
creates better supplier relationships
reduces production and storeroom costs
reduces paperwork
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*Independent (Conventional) Supply Chain
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A loose coalition of several independently owned and operated supply chain members - a manufacturer, a whole-saler, and a retailer - all attempting to satisfy their own objectives and maximize their own profits, often at the expense of the other members.
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*Contractual Vertical Marketing System
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A system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict.
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*The goal of inventory control is to:
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minimize inventory levels while maintaining an adequate supply of goods to meet customer demand
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FedEx CEO
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Fred Smith
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*RFID
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Radio Frequency Identification Device. Traces a package as it is moved through the supply chain.
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*Vendor Managed Inventories
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A system in which the supplier has access to the customer's inventory data and is responsible for maintaining the inventory on the customer's site
requires a collaborative effort, creates cost savings, improves customer service
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*Costco is _ largest retailer in United States
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3rd largest, largest memebership warehouse
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Costco Effect
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spending more than you planned
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Costco "treasures"
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not the staple items, the fun, exciting items
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Retailing Activities
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selling, renting, & providing products/services to the final consumer for personal use.
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Retailing accounts for __ % of GDP
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40% of GDP
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Factors for establishing a relationship with retailers (4)
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1.Choosing retail partners
2.Identify the types of retailers
3.Develop their strategy
4.Multichannel strategy (catalog, stores, internet)
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Channel Structure
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degree of vertical integration, manufacturers brand
power of manufacturer & retailer
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Customer Expectations (Choosing Retail Partners)
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match product to customer expectation (don't want to see high end product at low end places)
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Channel Member Characteristics (Choosing Retail Partners)
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Larger firms are less likely to use supply chain intermediaries: Can gain more control, be more efficient, and save money.
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*Distribution Intensity (Choosing Retail Partner)
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-Intensive (sell product in as many places as possible - coke)
-Exclusive (don't let everyone sell product - Michael Khors)
-Selective (mix of intensive and exclusive - Apple Products)
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*Types of Food Retailers
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Supermarket - Publix
Supercenter - Walmart
Warehouse Club- Costco
Convenience Store - QT
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*Type of General Merchandise Retailer
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Dept Store - Macy's
Full-Line Discount - Big Lots
Specialty - Coach
Drug Stores - CVS
Category Specialist - Petsmart
Extreme Value - Dollar Store
Off-Price - TJ Maxx
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*Paco Underhill's American Shopper
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1. Butt Brush Theory Female Shoppers
2. Humans Walk the Way they drive
3. Avg. amount of time spend in store
4. Dad's in stores
5. Subtle Way of appeal to the sexes
6. Destinations Items deep in store
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Avg amount of time spent in store (boys and girls)
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Boys - 2:33
ladies - 7:20
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What way do we shop
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Counter-clockwise circulation b/c most shoppers are right handed
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Grocery Store Secrets
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bigger carts
mirage on staple items (pricing)
meandering walkways/displays
half isles for noncommittal
sensory environment
most expensive foods at eye level
free sample foods
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Science of Spending
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1. move in predictable pattern
2. cant resist shiny objects
3. shopping gets you high (anticipation of purchase)
4. Can't comprehend numbers
5. Taste can be tricked by brand recognition
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Scrambled Merchandising
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Offering several unrelated product lines in a single store (Walgreens)
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Developing Retail store using 4 P's
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Product: Provide right mix of merchandise/service
Price: Defines value
Promotion: retailers use a variety of promotions both with retailer environment and through mass media
Place: Location (convenience) and Supply Chain Management (getting product to customer)
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*Proper Location: Choosing a Community
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economic growth potential
competition
geography
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*Proper Location: Choosing an Site
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-Freestanding store
-Mall
-Shopping Center
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*Advantages of Mall/ Shopping Center as Site Location
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design attract shoppers, ample parking, activities draw customers, unified image, share common area expenses
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*Disadvantages of Mall/ Shopping Center as Site Location
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Expensive Leases, failure of common promotion, lease restrictions, hours of operations, anchor store domination, direct competitors, customer time limits
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Presentation in Retail Store: Atmosphere
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overall impression conveyed by a stores physical layout, decor, and surroundings
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*Presentation in Retail Store: Components
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Employee Type & number
Merchandise type & number
Fixture Type & number
Sound
Odors
Visual Factors
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Multichannel Retailing
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-deeper and broader selection
-personalization
-insight into consumer shopping behavior
-increased consumer loyalty & Satisfaction
-Expand market presence
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3 Different Channels
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-Stores: browse, touch, personal service, cash/credit, social interaction, instant gratification, risk reduction
-catalogues: convience, info, safety
-internet: broad selection, more info, personalization, touch/feel attributes
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Effective Multichannel MKT
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integrated Customer Relationship Management, Brand Image, Pricing, Supply Chain
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*IMC
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Integrated Marketing Communications - careful coordination of all promotional message to assure the consistency of msgs at every contact point where a company meets the consumer
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Example of IMC
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Budweiser wanted to be number one beer in world, came up with Bud United.
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*Communicating with Customers
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noise from environment --> sender (firm), transmitter (encodes msg), communication channel (media), receiver (consumer, decodes msg). Receiver gives feedback which goes back to sender.
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Perceiving Communication
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receivers decode message differently, senders adjust messages according to the medium and receivers traits.
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*AIDA Model
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Attention, Interest, Desire, Action - model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message.
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*Attention (AIDA)
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senders first must gain the attention of consumers, multichannel approach increased the likelyhood the message will be received.
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*Interest (AIDA)
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after customer is aware, must be persuaded. Customer must want to further investigate product
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*Desire (AIDA)
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I want it, must have it! Builds with logic and emotion.
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*Action (AIDA)
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Purchase is just one type of action. Can decide not to text and drive after seeing ad.
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The Logged Effect
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advertising does not always have immediate impact. Multiple exposures are often necessary. It is difficult to determine which exposure led to purchase.
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*Elements of Integrated Communication Strategy
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1.Advertising
2.Public Relations
3.Sales Promotion
4.Personal Selling
5.Direct MKT
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Advertising (IMC)
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most visible element of IMC, extremely effective at creating awareness and generating interest.
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Public Relations (IMC)
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free media attention, importance of PR has grown in cost, consumers becoming more skeptical about mkt = PR is more important.
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Sales Promotion (IMC)
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can be aimed at both end user consumer/ channel members, used in conjunctions with other forms of IMC, short term and long term objectives.
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Personal Selling (IMC)
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Some products require the help of salesperson, more expensive than other forms of promotion, salesperson adds value
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Direct MKT (IMC)
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growing element of IMC, includes e-mail & m-commerce, good for multicultural groups, database technology improves
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*Measuring Success
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Frequency
Number of times to run an ad (on tv, ad, website)
Reach
How many people see that message (watch that television show, go to that website, subscribe to the magazine)
Gross Rating Points
Frequency x Reach
Web Tracking
Track and see how many clicks/hits that particular site …
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Advertising
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one form of communication. Paid, identifiable source, delivered through media, persuade receiver to act.
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Why advertise during SuperBowl?
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1. cost relative to other opportunities
2. interest in advertisements
3. Positive brand association
4. Public Relations
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Risks of Advertising during SuperBowl:
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Negative PR (Go Daddy)
Wasted resources
No longer part of overall mkt strategy, yet expected to be there.
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Advertising Strategies
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Buzz/Teasers
Branding
Contests/Interactive
Get Competitive
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Small Businesses and Advertising
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new brands with small market share spend proportionally more for advertising and sales promotion. Beyond certain level of spending, diminishing return sets in.
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Effects of Advertising on Consumers
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average US citizen is exposed to 100's of ads each day. It may change a consumer's negative attitude toward a product, or reinforce a positive attitude. It can also effect consumer ranking of a brand's attributes.
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Steps in Planning Ad Campaign (7)
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1.Identify Target Audience (STP)
2. Set Advertising Objectives
3. Determining Ad Budget
4. Convey the Message
5. Evaluate & Select Media
6. Create Advertisements
7. Assess impact
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*Advertising Objectives (Planning Ad Campaign)
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-Informative (communicates brand awareness, push consumer through buying cycle, inform about upcoming sales or new stuff)
-Persuasive (occurs in growth/early maturity, can reposition an established brand)
-Reminder (remind or prompt repurchases, occurs after products have gained mkt …
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Focus on Ads
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institutional- enhances company's image rather than prompting product
product - touts the benefits of a specific good/service.
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Social MKT:
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under Federal Communication Commission rules, boadcasters must devote a specific amount of free airtime to PSA's (public service advertising)
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Determining Ad Budget (Planning Ad Campaign) - Considerations
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1. role that advertising plays in their attempt to meet overall promotional objectives
2. expenditures vary over the course of the product life cycle
3. nature of the mkt & the product influence the size of the budget
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Convey the message (Planning Ad Campaign) - USP
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Unique Selling Proposition: how to convey the message of core value
(ex. Red Bull - Gives you wings ...
Nike - Just Do It. )
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*Informational (Advertising Appeal)
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more cognitive and persuade rational thought.
(Profit - product saves,
Health - appeals to body Convenience - used for fast food, Environmental Protection)
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*Emotional (Advertising Appeals)
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triggers emotional response
(Humor
Sex
Fear
Admire - celebrity
Fun & Pleasure - vacation, parks, alcohol
Vanity/Egotism - expensive, conspicuous items)
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Evaluate & Select Media
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Media Planning (billboard, internet, etc)
Media Mix (what you decide to do)
Media Buy (purchasing media for ad)
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*Advertising Process
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Research > Strategy > Message > Creative > Planning > Execution > Evaluation
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*Advantages of TV advertisements
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Reaches large audience, uses picture, print sound, and motion. Can target specific audiences
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*TV Disadvantages
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-Information (can't get a lot of facts)
-Not Self-Paced
-Absolute Cost (cost to make a commercial; prime-time)
-Poor attentiveness (DVR to skip commercials)
-CLUTTER
- Fleeting message
- Limited viewer attention (zipping- fast forward, zapping - changing channels to avoid commercial…
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*continuous flighting
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advertise all year long
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*pulsing advertising
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only advertise at certain times of the year
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*Sales happen where?
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on the internet, phone, face to face (best way), video teleconferencing.
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Sales Management Strategies
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Customization, supply chain relationships, relationship selling, value based selling, customer research, CRM (customer relationship management)
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Sales People and the value they add
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educate customers, provide advice, save time, simplify buying, provide support
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*Best Way to make sale
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become friendly before you start, find common ground, ask intelligent questions that draw out needs/motives, relax throughout sale convo, ask for date of beginning commitment, create an atmosphere where people want to buy.
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Selling is like _____.
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dating
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Personal Selling Process
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1. generate leads
2. Preapproach
3. Sales Presentation
4. Closing the Sale
5. Personal Selling Process
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Sources of Leads
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current customers, networking events, the internet (best source), Trade shows, prospecting (cold calls, telemarketing).
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Preapproach
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extends qualification (check credit before showing someone a million dollar home to see if customer is serious)
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Sales Presentation
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tell about the product, handling reservations, very important to listen!
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*5 Service quality dimensions
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Reliable - performing service correctly the 1st time
Responsive - prompt service 24/7
Assurance - knowledgeable, trustworthy employees
Empathy - individualized attention to customers
Tangibles - physical appearance of building, employees, equipment, etc
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Managing Sales Force
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Sales force Structure, recruiting and selecting, sales training, motivating and compensating salespeople, evaluating sales people.
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Good Sales traits in people
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personality, optimism, resilience, self-motivation, empathy
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Sales Training
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selling and negotiation techniques, **Products and service knowledge (biggest component), technologies used in the selling process, time & territory management, company policies and procedures
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Financial Reward
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an sort of money (ex. commissions, bonus check)
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Nonfinancial Reward
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TV, vacation days, anything not money.
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Evaluation measures can be either _____ or _____
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objective or subjective
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MKT 3010:Exam 4