MKT 300 Final Exam: UKY Holly Hapke

wholesaler

firms that buy products from manufacturers and resell them to retailers

Fulfillment center

are used to ship directly to individual customers

Quick Response (QR)

an inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it, frequent

direct channel strategy

There are no intermediaries between the buyer and seller

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

Power in a marketing channel

exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution

Information Flow through marketing channels, flow 3

Buyer to manufacturer

Distribution center advantages

Lower inventory in each store, lower overall inventory costs

Retailing

a set of business activities that adds value to the products and services sold to consumers for their personal or family use

Distribution intensity

intensive, selective, exclusive

intensive distribution

puts products into as many retail outlets as possible

Selective distribution

relies on a few selected retail customers in a territory to sell products

exclusive distribution

granting exclusive rights to one dealer in an area

General Merchandise Retailers

retail establishments that offers a variety of product lines stocked in considerable depth

General merchandise retailer categories

Department stores and Off price

Component of retail strategy

Price

Component of retail strategy - price

Defines the value of both the merchandise and the service provided

Benefit of omnichannel

Creates a seamless experience for customers

brand image

The consumers' beliefs about the company and/or its goods or services often in terms of quality, price, and value

Integrated Marketing Communications

coordination of promotion and other marketing efforts for maximum informational and persuasive impact

Feedback loop

Receivers response to a decoded message

Aida Model (awareness)

- Senders first must gain the attention of the consumer.

Awareness metrics include:

Aided recall

Top-of-mind awareness

AIDA Model: Action

The ultimate goal of any form of marketing communications is to drive the receiver to action.

The lagged effect

a delayed response to a marketing communication campaign

Direct marketing

communicates directly with target customers to generate a response or transaction

Direct marketing types

Email, mobile

Email marketing

Can be directed to a specific user

Mobile marketing

marketing through wireless handheld devices

The goal the firm hopes to achieve

Value in its products

click through rate

the number of times a user clicks on an online ad divided by the number of impressions

Advertising

a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future

The most visible form of marketing communication

Advertising

The third step in planning and executing an advertising campaign

Determining the advertising budget

Factor of advertsing budget

The intensity of the role that advertising play in attempt to meet their overall promotional objectives

Step 4 in planning and executing an advertising campaign

Convey the message

Appeals

Informational, emotional, and nostaligia

Emotional appeal

Fear/safety, humane, happiness, love/sex, comfort

Media mix

the combination of the media used and the frequency of advertising in each medium

Niche media

channels are more focused and generally used to reach narrower segments, often with unique demographic characteristics or interests

Mass media

Forms of communication, such as newspapers and radio, that reach millions of people.

Step 5 of planning and executing an advertising campaign

Evaluate and select medxia

Step 6 of planning and executing an advertising campaign

Create advertisments

Step 2 in planning and executing an advertising campaign.

Set advertising objectives

Step 1 in planning and executing an advertising campaign

Identify target audience

Major factors in creating advertisements

Creativity, message

Puffery

the legal exaggeration of praise, stopping just short of deception, lavished on a product

Public relations

Involves managing communications and relationships to achieve various objectives

Objectives of public relations (3)

Building and Maintaining a positive image

Handing unfavorable stories or events

Main attaining positive relationships with the media

Sales promotion

An activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it

Premiums

Items offered free or at a minimal cost as a reward for a certain behavior (buying , sampling)

Loyalty programs

specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time

Personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

relationship selling

a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties

step 1 of personal selling process

generate and qualify leads

For current customers use

CRM

step 2 of personal selling process

Preapproach and the Use of CRM Systems

step 3 of personal selling process

sales presentation and overcoming reservations

Handling Reservations

An integral part of the sales presentation is handling reservations or objections that the buyer might have about the product or service.

step 4 of personal selling process

closing the sale

Step 5 of the personal selling process

follow up

Following up

Prime time to solidify the relationship between firm and customer through great customer service

Sales management

involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force

Order taking

a salesperson whose primary responsibility is to process routine orders, reorders, or rebuys for products

Peronsality

Good sales people are friendly, sociable, and like being around people

Optimistic

Salespeople need to see the bright side

Sales people need to have

Good personality and optimism

Motivating and Compensating Salespeople

financial and non-financial rewards

Financial rewards

salary, commission, bonus, sales contest

Nonfinancial rewards

vacations, T-shirts, awards, certificates

Evaluating salespeople

Use of marketing metrics tied to a reward structure. Objective or subjective.