16- 21 KSU marketing final

1. independent retailers

2. corporate chains

3. contractual systems

What are the 3 types of ownership?

Independent retailer

an independent business owned by an individual

hardware stores, convince stores, clothing stores

What are examples of independent retailers?

Corporate chains

involves multiple outlets under a common ownership

Macys Inc operates department stores but also owns 36 Bloomingdales which competes with other department stores

What is an example of corporate chains?

Contractual systems

involve independently owned stores that band together to act like a chain

Associated grocers, which consists of neighborhood grocers that all agree with several other independent grocers to buy their goods directly from food manufacturers

What is an example of Contractual sytems?

franchise

What is an example of contractual vertical marketing?

Levels of service

used to describe the degree of service provided to the customer

1. Self-service

2. Limited-service

3. Full-service

What are the 3 levels of service?

Self-service

requires that customers perform many function during the purchase process

Redbox

What is an example of self-service?

Limited-service

Provide some services such as credit and merchandise return, but not others such as clothing alterations

walmart and target

What is an example of a limited-service?

Full-service

provides full-service for customers

Nordstrom

What is an example of a full-service?

Breadth of Product Line

the variety of different product items a store carries

Product of Depth Line

the store carries a large assortment of each product item.

Category killers

buisnesses that dominate the market

staples

What is an example of a category killer

staples

What is an example of a category killer?

Scrambled merchandising

consists of offering several unrelated product lines in a single store

Hypermarket

is A form of scrambled merchandising, which consists of a large store (more than 200,000 square feet) that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location.

Intertype competition

consists of competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy.

McDonalds and Burger king

What is an example of intertype competition?

Those are forms of non-store retailing

What do we need to know about this graph?

Direct selling

when you buy from a company but you are using a sells rep to purchase it

Retailing mix

The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise.

Off-price retailing

Involves selling brand-name merchandise at lower than regular prices.

Ross

What is an example of off-price retailing

Central business district

The oldest retail setting, usually located in the community’s downtown area.

Regional shopping centers

A retail location consisting of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

Community shopping center

A retail location that typically has one primary store (usually a department store branch) and often 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20-minute drive.

Strip Mall

A retail location consisting of a cluster of neighborhood stores to serve people who are within a 5- to 10-minute drive.

Power center

A retail location consisting of a huge shopping strip with multiple anchor (or national) stores.

1. Central business district

2. Regional shopping centers

3. Community Shopping center

4. Strip mall

5. Power center

What are the types of store locations?

direct selling

vending machines

what are examples of nonstore retailing?

Traditional marketplace

buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices) and most likely tangible objects

Digital marketspace

a digitally enabled environment characterized by face-to-screen exchange relationships and electronic images and offerings

Choiceboard

allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes.

M&M’s

What is an example of choiceboard?

Choiceboard : how you make it

Personalization: what comes out of how you make it

what is the difference between choiceboard and personalization?

Collaborative filtering

A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases.

Personalization

 is the consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences.

Permission marketing

The solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer.

convenience, choice, customization, communication, cost, and control

What are the 6 reasons why consumers buy online?

shopping in any time of day pj’s

What would be an example of customers shopping online for convenience?

being able to chose from 10,000 items online

What would be an example of customers shopping online for choice?

being able to find the most effective cost

What would be an example of customers shopping online for cost?

Duolingo

Which company humanized their brand by regularly posting on tiktok?

1. Context

2. Content

3. Customization

4. Connection

5. Communication

6. Community

7. Commerce

What are the 7 C’s of website design?

Context

refers to a websites aesthetic appeal and the functional look and feel of the layout and visual design

Content

the reason why people visit a website

Customization

is the ability of a site to modify itself to, or be modified by and for, each individual user

Connection

is the network of linkages between a company’s website and other sites

the knot.com for wedding planning

What is an example of the Connection C of website design

Communication

Refers to the dialogue that unfolds between the website and its users

Community

the ways that the site enables user-to-user communication

Commerce

the websites ability to conduct sales transactions for products and services

Bots

 are electronics shopping agents or robots that comb websites to compare

Eight-second rule

A view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.

Customerization

The growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer.

Dynamic Pricing

The practice of changing prices for products and services in real time in response to supply and demand conditions.

Cookies

 Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website.

Behaviroal targeting

Uses information provided by cookies to direct online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising.

Social commmerce

The use of social networks for browsing and buying.

Cross-Channel Consumer

 An online consumer who shops online but buys offline, or shops offline but buys online.

showrooming & webrooming

What are examples of cross channel consumers?

Showrooming

The practice of examining products in a store and then buying them online for a cheaper price

Webrooming

The practice of examining products online and then buying them in a store.

1. items for which product information is an important part of the purchase decision but pre purchase trial is not necessarily critical

2. items that can be delivered digitally

3. items that are regularly purchased where convivence is important

3 Categories of things people buy online

Promotional Mix

The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product.

Integrated Marketing Communications (IMC)

The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences.

• efficient means for reaching large numbers of people

What are the strengths of advertising?

• high absolute cost

• difficult to receive good feedback

What are the weaknesses of advertising?

• immediate feedback

• very persuasive

• can select audience

• can give complex information

What are the strengths of personal selling

• extremely expensive per exposure

• messages may differ between salespeople

what are the weaknesses of personal selling

• often most credible source in the consumer’s mind

what are the strengths of public relations

• difficult to get media cooperation

what are the weaknesses of public relations

• effective at changing behavior in short run

• very flexible

what are the strengths of sales promotion

• easily abused

• can lead to promotion wars

• easily duplicated

what are the weaknesses of sales promotion

• messages can be prepared quickly

• facilitates relationship with customer

what are the strengths of direct marketing

• declining customer response

• database management is expensive

what are the weaknesses of direct marketing

mass

Is advertising mass or customized?

customized

Is personal selling mass or customized?

mass

Is public relations mass or customized?

mass

Is sales promotion mass or customized?

customized

Is direct marketing mass or customized?

1. advertising

2. personal selling

3. public relations

4. sales promotion

5. direct marketing

What are the 5 elements of the promotional mix?

advertising

Which element of the promotional mix is the most important in the prepruchase stage

Advertising definition

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Public relations definition

A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

Personal selling definition

 The two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.

sales promotion definition

 A short-term inducement of value offered to arouse interest in buying a product or service.

to inform

What is the promotional objective the introduction stage of the product life cycle

to persuade

What is the promotional objective the growth stage of the product life cycle

to remind

What is the promotional objective in the maturity stage of the product life cycle

to phase out

What is the promotional objective the decline stage of the product life cycle

• publicity in magazines

• advertising

• salesforce calling on intermediaries

• sales promotion in form of free samples

What is the promotional activity of the introduction phase of the product life cycle?

• personal selling to intermediaries

• advertising to differentiate a product from competing brands

What is the promotional activity of the growth phase of the product life cycle