Marketing Exam 3!

logistics

what firms do to get the right amount of product in the right place at the right time

wholesaler

a company that buys from the producer and sells products en masse to retailers

supply chain

the companies that make and deliver products to buyers or other companies

marketing channel aka channel of distribution

people or companies that help make a product ready for sale

supply chain management

coordination of all the aspects of the supply chain

what are the goals of aligning the supply chain with marketing strategy

• Understand the customer

• Understand the supply chain

• Harmonize the supply chain with the marketing strategy

what step(s) is/are there in a DIRECT consumer product channel?

2, producer, consumer

what step(s) is/are there in a RETAILER consumer product channel?

3, producer, retailer, consumer

what step(s) is/are there in a WHOLESALER consumer product channel?

4, producer, wholesaler, retailer, consumer

what step(s) is/are there in an AGENT/BROKER consumer product channel?

5, producer, agent/broker, wholesaler, retailer, consumer

name 2 factors that influences the choice of marketing channel strategy

• Market Factors

• Target market coverage

• Buyer requirements (where do they shop, when do they shop
  what is important to them?)

• Product Factors

• Complexity, customized vs. standardized, perishability, cost of product, etc...

• Producer Factors

• Resources and capabilities

• Desired control

• Cost vs. Profitability

• Adaptability

dual distribution systems

Using multiple channels to either the same target market or to different target markets

who makes the decisions in a dual distribution system?

manufacturer/producer

Multichannel/Omnichannel

a blending of channels that help each other sell, to build relationships with consumers who shop in both

who makes the decisions in a multichannel/omnichannel distribution system?

retailer

Disintermediation

a channel member bypasses another member and sells/buys products directly to consumers

What advantages can a distributor add to the product distribution system?

• overcoming discrepancies

• time/place/form/possession utility

TIME utility in distribution system

channel members help to provide products when customers are ready to buy them

PLACE utility in distribution system

channel members help to provide products where customers are ready to buy them

FORM utility in distribution system

making the good or service better so buyers will want it more

POSSESSION utility in distribution system

help buyers get the product in their hands so they can have the benefits of using it

Exclusive Distribution

Only one retailer in a specific geographic area can sell the company’s products

Selective Distribution

Only a few retail stores in an area can sell a company’s products

Intensive Distribution

goal is to put a company’s products in as many stores as possible

channel captain

the dominant company that controls the distribution channel

Independent/Conventional channel relationships

channel members mostly work independently of one another

Vertical administered channel relationships

none of the companies have common ownerships or contractual relationships, so the dominant channel member controls the relationship between them

Vertical contractual channel relationships

independent companies work together by contract to make bigger sales and do better marketing than they could alone

vertical corporate channel relationships

a parent company owns companies at multiple levels of the distribution channel and can decide the priorities of the channel

Horizontal channel relationships

channel members at the same level work together through formal arrangements like a contract

5 items in the promotion mix

advertising, sales promo, pr, personal selling, direct marketing

advertising affords the marketing company a _____ level of control

higher

sales promo affords the marketing company a _____ level of control

higher

direct marketing affords the marketing company a _____ level of control

medium

personal selling affords the marketing company a _____ level of control

medium

pr affords the marketing company a _____ level of control

lower

word of mouth affords the marketing company a _____ level of control

lower

(hierarchy of effects) awareness

how much the buyer can recognize and remember the product

(hierarchy of effects) interest

how much the buyer wants to learn about the product

(hierarchy of effects) evaluation

what the customer thinks of the brand’s important qualities and values

(hierarchy of effects) trial

when the consumer first tries the product

(hierarchy of effects) adoption

when the customer repeatedly buys and uses the product

push strategy

manufacturer promotes to wholesaler, who then promotes to the retailer then the consumer

pull strategy

manufacturer promotes to customer, who then demands the product from the retailer who then demands it from the wholesaler who orders from the manufacturer

(communication) source

who is saying something

(communication) encoding message

what you’re saying

(communication) communication channel

where or through what you are saying the message

(communication) decoding message

what the other person interprets the message to be

(communication) receiver

who is interpreting the message

(communication) noise

anything that would make the message less clear or speedy to the receiver

consumer generated media

social media posts or homemade flyers

paid media

advertising, personal selling, direct marketing, sales promotions

Earned media

pr and publicity

Owned Media

brands publish own content to maximize brand value

Integrated Marketing Communications (imc)

marketing comms programs that make promotional messaging cohesive at every point where the consumer and the company interact

direct marketing

use direct communication with the consumer to get a response (i.e. consumer asks for more info or goes to visit a retail store

opt-in/opt-out, tracking, and ethical and regulatory violations are concerns associated with _____ marketing

direct

sales promo

making a product cheaper or adding perceived value to boost interest and sales

coupons and samples are examples of ______ sales promotion

pull

contests/sweepstakes and premiums are examples of ______ sales promotion

pull

loyalty programs and product placement are examples of ______ sales promotion

pull

incentive programs and allowances/discounts are examples of ______ sales promotion

push

free merch and retailer push money are examples of ______ sales promotion

push

pr

comms management that announces good deeds by the company to influence consumers’ opinions

name 2 types of pr activities

• News/Press Releases and conferences

• Media relations

• Sponsorships

• lobbying

• consumer education

• crisis management

pr is a _____ field than publicity, which is concerned primarily with media relations

broader

t/f: there is such a thing as free publicity

f

personal selling

selling that is founded on communication between buyer and seller, personal relationship develops

advertising is ___-way communication, personal selling is ___-way

one, two

(steps in selling process) 1. prospecting

make a list of your sales leads and decide which ones have potential

(steps in selling process) 2. preapproach

research and develop your plan for when you approach

(steps in selling process) 3. approach

first contact with your buyer, gain attention and interest

(steps in selling process) 4. presentation

assess your buyer’s needs, listen to them, and customize your presentation according to the questions they are likely to ask

(steps in selling process) 5. close the sale

gain their commitment to purchase but know when to stop to deepen your relationship

(steps in selling process) 6. follow up

check in with the buyer to offer support and receive feedback

institutional advertising

advertisements that build goodwill or an image for an organization

(media schedule) continuous

runs all year

(media schedule) flighting

happens in spurts throughout the year to reflect seasonal demand

(media schedule) pulse

steady throughout year, but heavier at certain times

gross rating points

reach frequency (# of unique people/households exposed * number of exposures per individual)

unaided recall

marketing research technique that measures how well a brand or product is remembered without any hints or suggestion

aided recall

a marketing technique that measures how well a consumer can remember a brand or advertisement when prompted with a hint or clue

attitude tests

a type of market research study which aims to understand how consumers feel about a product, service, or brand by measuring their attitude towards it, typically through surveys or focus groups

inquiry tests

technique used in advertising research where the advertising, brand, or product is tested through random inquiries of respondents

sales tests

a strategy where a company introduces a new product, service, or marketing campaign to a limited group of consumers in a specific market before launching it widely

advertainment/advergaming

a piece of media made to promote a product