MKTG FINALS REVIEW

Omni-Channel Marketing

creating a seamless cross-channel buying experience that integrates in-store

Self-service retailer

serve customers who are willing to perform their own locate-compare-select process to save time or money.

Self-Service retailer examples

Supermarket, Target, Kohl's

Limited service retailer

provide more sales assistance because they carry more shopping goods about which customers need information.

Limited service retailer example

JCPenny's, Macy's

Full-service retailer

Assist customers in every phase of the shopping process.

Full-service retailer example

Nordstrom

Product line/assortment

Length vs breadth

Corporate Chain

two or more outlets that are commonly owned and controlled. Their size allows them to buy in large quantities at lower prices and gain promotional economies. They can hire specialists to deal with areas such as pricing, promotion, merchandising, inventory control, and sales forecasting.

Voluntary chain

a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising.

Retailer Cooperative

group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.

Retailer cooperative example

Ace Hardware

Voluntary chain example

Western Auto

Franchise organization

normally based on some unique product or service; a method of doing business; or the trade name, goodwill, or patent that the franchisor has developed

Franchise organization examples

fast-food, motel, fitness center

Retail Mix

3 major product variable

product assortment, services mix, and store atmosphere.

Product assortment

should differentiate it while matching target shoppers’ expectations.

Services Mix

used to set retailer apart from one another

Store Atmosphere

Retailers creating unique store experience

Regional shopping center

largest and most dramatic shopping center, has from 50 to more than 100 stores, including two or more full-line department stores.

Community Shopping center

contains between 15 and 50 retail stores. It normally contains a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.

Neighborhood shopping center

1. contain between 5 and 15 stores.

Power center

shopping centers consisting of a long strip of retail stores, including large, freestanding anchors such as Walmart, Home Depot, Costco, Best Buy, Michaels, PetSmart, and Office Depot.

Lifestyle center

smaller, open-air malls with upscale stores, convenient locations, and nonretail activities, such as a playground, skating rink, hotel, dining establishments, and a movie theater complex.

Showrooming

trend in shopping behavior where consumers visit stores to touch and feel the products but opt to purchase them online

wholesaling

all the activities involved in selling goods and services to those buying them for resale or business use.

Brokers

a. Do not take title to goods
b. Facilitate buying and selling
c. Earn a commission based on selling price

Agents

a. Represent buyers or sellers on a relatively permanent basis
b. Perform only a few functions
c. Do not take title to goods

Manufacturer’s agents

Represent two or more manufacturers of complementary lines. Often used in such lines as apparel, furniture, and electrical goods.

Selling Agents

Have contractual authority to sell a manufacturer’s entire output.

Purchasing agent

Generally have a long-term relationship with buyers and make purchases for them, often receiving, inspecting, warehousing, and shipping the merchandise to buyers. They help clients obtain the best goods and prices available.

Promotional Mix

Advertising, Sales promotion, Personal selling, Public relation, direct and digital marketing

Advertising

any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

Sales Promotion

Short-term incentives to encourage the purchase

Personal selling

Personal customer interactions by the firm’s sales force to engage customers, make sales, and build customer relationships

Public relations

Activities designed to engage the company’s various publics and build good relations with them.

Direct and digital marketing

Companies are now moving away from traditional mass media and now moving towards digital and streaming platforms

IMC (Integrated Marketing Communications)

company carefully integrates its many communication channels to deliver a clear, consistent, and compelling message about organization/brand

Media convergence

Mixing TV, and print ads with web and social media advertisements.
Ex) Land Rover has a website feature that shows stories of people riding Land Rover to cool places and sharing stories about it.

Push strategy

strategy that calls for using the sales force and trade promotion to push the product through channels.
The producer promotes the product to channel members who in turn promote it to final consumers.

Push strategy example

John Deree does very little promoting but Lowe's pushes the product for them

Pull Strategy

Markets straight to final consumers

Pull strategy example

Tide markets to final consumers
If it is effective, consumers demand the brand from retailers such as walmart

Advertising objective

Inform, persuade, remind

Comparative/ attack advertising

company directly or indirectly compares its brand with one or more other brands.

Comparative/ attack advertising example

Samsung Galaxy ads bashing on Apple iPhone products.

Affordable method

set the promotion budget at the level they think the company can afford
used by smaller businesses
promotion is the weakest priority, even when needed

Percentage of sales method

setting their promotion budget at a certain percentage of current or forecasted sales. Or they budget a percentage of the unit sales price.

Competitive-parity method

setting their promotion budgets to match competitors’ outlays

Objective and task method

company sets its promotion budget based on what it wants to accomplish with promotion.

Breaking through the clutter

Simply interrupting or disrupting consumers no longer works. Unless ads provide content that is engaging, useful, or entertaining, many consumers will simply avoid, ignore, or skip them.

Madison and Vine

Merging of entertainment and advertising

Native advertising

advertising or other brand-produced online content that appears to be “native to” the web or social media site in which it is placed.
example --> Instagram stories advertisements, lego movie

Creative concept (big idea)

bring the message strategy to life in a distinctive and memorable way.Must be meaningful and believable and distinctive

Communication effects

tells whether the ads and media are communicating the ad message well

Sales and Profit

affected by many factors other than advertising—such as product features, price, and availability.

Order taker example

department store salesperson standing behind the counter

Order giver

Demand creative selling, social selling, and relationship building for products and services ranging from appliances, industrial equipment, and airplanes to insurance and IT services.

Territorial sales force

each salesperson is assigned to an exclusive geographic area and sells the company’s full line of products or services to all customers in that territory.

Product sales force

i. Used when business has numerous and complex products
ii. sales force specializes along product lines
company organizes its sales force along customer or industry lines

Customer (or market) sales force structure

company organizes its sales force along customer or industry lines

Inside sale

conduct business from their offices via phone, online and social media interactions, or visits from buyers.

Outside sale

travel to call on customers in the field

Team selling

using teams of people from sales, marketing, engineering, finance, tech support, and even upper management to service large, complex accounts.

Sales force automation system

computerized, digitized sales force operations that let salespeople work more effectively anytime, anywhere

Selling Quota

standards stating the amount they should sell and how sales should be divided among the company’s products.

Social selling

use of digital platforms and sales tools to engage customers, build stronger customer relationships, and augment sales performance.

LAER

Listening, Acknowledgement, Explore, Respond

Sales promotion example

Clearance, pamphlets with discount information

Forms of Digital and social media marketing

internet, search engine optimization, instagram

Forms of traditional direct marketing

direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising

Branded community websites

primarily aim not to sell products but to present brand content that engages consumers and creates customer–brand communities

Branded community websites example

Peloton's website does more than just selling their fitness equipment, but has live-stream fitness classes, 2 million user community, etc.

Rich Media ads

incorporate animation, video, sound, and interactivity

Search-related ads

text- and image-based ads and links appear atop or alongside search engine results on sites such as Google, Yahoo!, and Bing

Opt-in email marketing

To not be intrusive and annoying, only send on a permission basis

Spam

Intrusive and annoying emails that people just skip

Viral marketing

digital version of word-of-mouth marketing.
Involves advertisements that are so infectious that customer will seek out for them

Blogs

online forums where people and companies post their thoughts and other content, usually related to narrowly defined topics

Examples of social media marketing

Use social media to Introduce new products, create brand personality and engage with customers.
Instagram, facebook,

Types of mobile marketing

a. Mobile ads
b. Coupons
c. Apps
d. Texts
e. Mobile websites

Internet fraud examples

Phishing (identity theft)

Phishing

uses deceptive emails and fraudulent web and online mobile sites to fool users into divulging personal data.

Protectionism practice

Tariff, quota, nontariff trade barriers

Tariff

tax on goods or products entering a country

Quota

this restrict the quantity of a good imported from another country.

Nontariff trade barriers

biases against certain kinds of bids for business contracts, restrictive product standards, and excessive or selective host-country regulations or enforcement

Nontariff trade barriers example

New restriction on foreign-owned online sellers caused major obstacle for Amazon in India’s huge e-commerce market

WTO

a. Promotes world trade by reducing tariffs and other international trade barriers.
b. Negotiates to reassess trade barriers and establish new rules for international trade
c. Imposes international trade sanctions and mediates global trade disputes

EU

a. Free trade zone
b. Shared currency
decreased much of the currency risk associated with doing business in Europe

NAFTA

Free trade zone
eliminated trade barriers and investment restrictions among US, MEX, CANADA

Political-Legal Environment

Factors such as country’s monetary regulations, bureaucracy and stability

Cultural Environment

Understanding country’s Norms
Chinese people lying down and stuff at Ikea

3 market entry strategy

Exporting, Joint Venturing, Direct investment

Exporting

entering foreign markets by selling goods produced in the company's home country, often with little or no modification

Joint Venturing

joining with a foreign company to produce or market products or services abroad

4 types of Joint venturing

i. Licensing
ii. Contract Manufacturing
iii. Management Contracting
iv. Joint Ownership

Direct Investment

development of foreign-based assembly or manufacturing facilities.