Buying and Merchandising Basic Information To-Know

What is Buying and Why are Buyers Important in this Process

Buying is one of the most important roles in the retail and consumer sector. It is the buyers who decide what products the company is going to sell, and from where it is going to be sourced

What are Merchandisers?

Merchandisers will decide how the products will be displayed and packaged. Increasingly that means looking at how the products will be displayed in shops, online or in apps, as well as deciding where to allocate stock around the network.

What is Branding?

The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products; promise to your customers

What is Product Branding?

How a product interacts with its consumer audience through design, logo, and messaging.

Distribution Channel

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors and even the internet itself.

Marketing Mix

a combination of factors that can be controlled by a company to influence consumers to purchase its products.

Explain the nature of product/service branding

it is how a product interacts with its consumer audience through design, logo, and messaging.

Explain the nature of corporate branding

Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go into corporate branding are different from product and service branding because the scope of a corporate brand is typically much broader.

Describe factors used by businesses to position corporate brands

Competitive positioning is about defining how you'll "differentiate" your offering and create value for your market. It's about carving out a spot in the competitive landscape.

Market profile: Size, competitors, stage of growth

Customer segments: Groups of prospects with similar wants & needs

Competitive analysis: Strengths, weaknesses, opportunities and threats in the landscape

Method for delivering value: How you deliver value to your market at the highest level

brand equity

the commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

Presented Brand

The company's presented brand is the communication that the company controls and that is intended for the customers to see

External Brand Communications

the information about the company that is uncontrolled by the company itself (word of mouth/publicity)

Discuss the nature of customer relationship management

Customer relationship management involves finding customers and keeping them satisfied through a variety of means. The sharing of customer information among businesses has led to privacy issues.

Describe the use of technology in the promotion function?

Involves finding customers and keeping them satisfied through a variety of means. Database marketing is the element of C R M that is the process of creating and maintaining customer lists.

These lists can be developed from face-to-face sales, direct mail responses, phone or e-mail purchases, service requests, Web site visits, or they can be purchased from a third party

Identify communications channels used in sales promotion?

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers - directly, or indirectly - about the products and brands that they sell.

1. Advertising

2. Sales promotion

3. Events and experiences

4. Public relations and publicity

5. Direct marketing

6. Personal selling

Identify the elements of the promotional mix?

Personal selling is direct contact between a salesperson and customer. Advertising is a form of non-personal promotion. Public relations is the development of a favorable image for a company, its products or its policies. Sales promotion includes activities that are used to create purchases and sales not related to the other types of promotion.

Describe factors used by marketers to position products?

Factors used by marketers to position a product or service include price, quality, features,

benefits, competition and relation to another product.

Explain the nature of promotional plan?

A promotion plan outlines the promotional tools or tactics you plan to use to accomplish your marketing objectives.q

Coordinate activities in the promotional mix?

All the different types of advertising

Describe factors used by businesses to position corporate brands?

Factors used to position corporate brands include price, quality, features and benefits and relationship to the competition.

Explain the nature and scope of product / service management function?

Product management includes developing a product plan, which includes defining goals and objectives, specifying tasks or how goals will be achieved, what resources are needed and associating budgets and timelines for completion.

Describe factors used by marketers to position products/services ?

Factors used by marketers to position a product or service include price, quality, features,

benefits, competition and relation to another product.

Identify the impact of product life cycles on marketing decisions?

The product life cycle affects various marketing decisions as it relates to the product mix

of a business.

Explain the nature and scope of the product/service management function

Product/service management is any and all activities involving the obtaining, distribution, and development of products or services. This entails developing a product mix and maintaining and changing it throughout the product life cycle. Product service management is very important when ensuring that the product mix is optimal for the target market

Identify the impact of product life cycles on marketing decisions

• Introduction, growth, maturity, decline

• Depending on the stage of product life cycle, certain management decisions need to be made

• Product mix and management should be adjusted in order to ensure continued sales

• Introduction: Draw customer attention to the product

• Growth: Adjust the product mix in order to surpass the competition, and establish the product mix. Also, gauging customer satisfaction and establishing customer relations

• Maturity: Determine how to fight of upcoming competition, as well as deciding whether or not to continue to change the product mix for continued sales

• Decline: The phase of the product cycle in which it is determined how long the product mix will be maintained for, when to drop the product, and what product mix strategies to use (Discounting the product, recommitting to the product, selling or licensing the product mix, etc.)

Describe the nature of product bundling

Marketers may use product bundling to package two or more complementary goods and services, usually for a lower price than had the products been purchased separately.

• For example, if customer goes to the spa for a manicure and pedicure the price may be lower than if that customer purchased a manicure and pedicure separately.

Describe factors used by businesses to position corporate brands

They include price, quality, and the features and benefits and relationship to the competition.

Identify customer touch points

A touch point is any time a potential customer comes in contact with your brand-before, during, or after they purchase something from you. These include social media, testimonials, word of mouth, staff, website, billing, marketing emails, follow ups, etc.

Explain the nature of product/service branding

• Product/service branding is how a product interacts with its customers through design, logo and messaging and how its distinguishes itself from competitors.

• Branding can identify one product, a family of products, or all products of a company.

• Brands connote various benefits, (e.g. quality and reliability or fun and excitement.)

• The importance of branding is to build product recognition and customer loyalty, ensure quality and consistency, and capitalize on brand exposure

Describe the role of customer voice in branding

Customer voice in branding is extremely important because your customers are who you sell your product to. Therefore, you should create your branding based off of customer's likes and dislikes in order to best appeal to them.

Describe factors used by marketers to position products/services

• The focus of product/service positioning is the image the product/service projects to the public. The goal is to set the product apart from the competition.

• Marketers can position products based on price and quality (focuses on price as in indication of value; high price = quality, low price = value), features and benefits (focuses on effectiveness and use) and in relation to competition or other products in the line (compares benefits of product to others).

5 Factors of Brand Positioning

1.) brand attribution: what brand delivers through features/benefits

2.) consumer expectations: what people expect to receive from brand

3.) competitor attributes: what features/benefits the other competitors offer in the market

4.) price: your prices vs. competitor's prices

5.) consumer perceptions: perceived quality and value of brand's product

Communication Channels Used in Sales Promotion

advertising, sales promotion, events and experiences, public relations and publicity (business' image) interactive/online marketing, word-of-mouth marketing (WOMM), personal selling/direct marketing

Distribution

The process of making a product/service available for use or consumption by a consumer of business user (utilizing either direct or indirect means); spreading a product throughout the marketplace

Direct Channel of Distribution

Model/method used by organizations to move products from production to buyer without the use of wholesalers and retailers; eliminates # of parties involved in distribution process - savings can be realized

Indirect Channel of Distribution

relies on intermediaries to perform most or all distribution functions (a.k.a. wholesale distribution); profit passes through additional steps and parties before reaching the consumer

Explain the relationship between customer service and channel management

-maintain good customer service by delivering products in a timely manner, communicating effectively

-business must have the correct shipping info, correct products, friendly employees, must handle/solve customer complaints

Explain the nature of channels of distribution

The path a product take from its producer to the final destination

-either direct or indirect

-How can we best reach the target market? Where will customer go to buy product or service?

**ex.) wholesalers, retailers (outlets), online channels

-exclusive distribution, selective distribution, intensive distribution

Explain the nature of channel-member relationships

Manufacturer-->intermediary/ies-->consumer

Determine factors affecting business risk

Human(employees)

Natural

Economic

Rate and State of growth

Sensitivity to economy

Intensity of competitors

Service vs necessary product

Market growth

Examples of Customer Touch Points Before Purchase

Social Media, Ratings and Reviews, Testimonials, Word of Mouth, Community Involvement, Advertising. Marketing/PR

Examples of Customer Touch Points During Purchase

Store or Office, Website, Catalog, Promotions, Sales Team/Staff, Phone System, Point of Sale

Examples of Customer Touch Points After Purchase

Billing, Transactional Emails, Marketing Emails, Service and Support Teams, Online help center, Follow Ups, Thank you cards

Explain the relationship between customer service and channel management

Customer satisfaction is a goal of any profitable businesses. In order to meet the needs and wants of customers, channel management must work effectively to deliver a product at the right time to the right place. This includes a business' ability to select a good channel.

Explain the nature and scope of channel management

Channel management is the supervision of a good or service through the manufacturing process to the final user. This includes manufacturers, wholesalers, retailers, direct and indirect distribution and agents.

Explain the role of customer service as a component of selling relationships

Customer relationship management is an important part of selling relationships. Companies use CRM as a method to develop customer loyalty. Impacts future sales.