supply chain management
four ps
place- delivering to the right location
price- efficient purchasing, inventory warehousing
product- packaging needs
promotiom- sufficient materials to meet demand
review for test
understand different types of new products, advatages, and risks
types of new products
new to the market products
inventions that have never been seen before
require a lot of research and design
replacing something else
smallest percentage of new products
potential for sales, risk because of $$ used in research.
new catergory entries
new to a company but not new to the marketplace
less risky than new to the market products because you can research what other companies are doing.
risk is that the company may not be able to differentiate from it’s customers.
product line extensions
products that extend a company’s existing product line
advantages are brand recognition and loyalty, easier manufacturing, and easier advertisement.
these are common.
risk is that it’s unsure how the product will be accepted, or cannibalization where the existing product flops because the new one is so good.
revamped products
same product with new packaging, features, design, etc.
less risk as it’s the same product. leverages brand recognition and customer loyalty.
describe various stages of new product development
new product strategy development
determining the direction a company will take when it develops a new product.
provides guidelines.
specifies how it will fit into the marketing plan.
outlines general characteristics.
specifies the target audience.
idea generation
internal idea generation
from inside the company.
design thinking
empathetic understanding of customer’s needs
define the problem in a human centric way
external idea generation
ideas from customers and others outside the company
crowdsourcing
input from a large group of people.
companies can outsource their research and design.
open innovation allows a combination of both inside and outside input.
idea screening
stage where most ideas get rejected
has a minimum level of return on investment.
questions
will it sell?
can it be developed and marketed within the time and budget constraints of the company?
is the product within the company’s ability to produce?
some smaller brands use social media to see how their new products will be recieved by customers.
business analysis
estimate costs, figuring out the price it will be sold for, estimating demand
product development
time where marketing department starts figuring out marketing strategy
packaging design
creation of a prototype
is it safe
can it be produced at their facility
can it be cheap enough to make a profit
test marketing
introducing it to limited market to see how well it sells
usually in cities
may try different marketing approaches on different groups
expensive and time consuming
product launch
wow! a new product.
discuss the major risks in new product development and how to reduce those risks
very high risks
fails to meet the needs and wants of customers.
costs are not recouped, company loses money
proves to be dangerous or defective
company suffers legal liabilities and product recalls
high risks
product is not up to customer standards
customers are dissatisfied, there are excessive returns
supply of product is inadequate to meet demand
company loses orders, sales, and customers
new product is not accepted well into the marketplace
company loses revenue and profits and is stuck with obsolete goods
inadequate supply of materials delays production
product launch is delayed, first to market advantage is lost
target price is not accepted by the market
company reduces price, resulting in loss of revenue and profits
moderate risk
supplier cost savings are not achieved
profitability is reduced
product takes sales from existing products
total company revenue and profits are less than expected
competitors copy products and sell them at a lower price
company loses market share and profits \
how to prevent risks
listen to the customer carefully
make commitment to the new product design process
understanding current market trends and anticipating changes in the market
asking the right questions
be willing to fail on occasion
describe the new product adopters and the implication of adoption to marketers
innovators
adopt a product almost immediatley after it is launched
2.5%
provide feedback
early adopters
adopt a product soon after it is launched, but not right at innovators
13.5%
are respected by their peers and can refer them to a product
early majority
gather information and spend more time deciding to make a purchase
34%
by the time they enter, there’s competition. if this group doesn’t purchase the product, it likely won’t be profitable.
late majority
rely on others for information, and buy a good or service because others have already done so
34%
when these folks start buying it, it means it’s achieved all it can
laggards
hate changes. very traditional.
16%
might not ever buy your products.
describe the stages and aspects of product life cycle and how they affect the marketing mix
new product development
see section on new product development.
introduction
few to no competitors
sales are slow
3d printers
growth
sales, profits, and competition increase
may have to improve quality or add new features
differentiate from competition
promotional costs are lower than introduction phase
development of brand loyalty
maturity
late majority and repeat buyers
want to maintain market share for as long as possible
want to generate demand
usually the longest stage
decline
decrease in sales and profits
example: pcs
buy one get one to reduce extra inventory
company looks for ways to cut costs
explain the importance and critera of effective market segmentation
market segmentation…
helps firms define the needs and wants of the customers who are the most interested in buying the firm’s products
helps firms design specific strategies for the characteristics of specific segments
helps firms decide how to allocate their marketing resources in a way that maximizes profit
criteria for effective market segmentation
substansial
have to be enough people for the firm to make a profit by selling to them
measurable
size and purchasing power should be measureable and clearly identified
differentiable
have to want to purchase different things than other people
accessible
have to reach and serve the segment
actionable
attract certain market segments to their goods and services.
describe the bases for segmenting both b2c and b2b markets
b2b - buisness to buisness
demographic
industry
size of the organization
ownership structure
geographic
country
region
state
climate
behavioral
purchasing patterns
supplier requirements
technological orientation
b2c - buisness to customer
demographic
age
gender
income
family size
geographic
nations
regions
states
neighborhoods
psychographic
psychological traits
motivation
consumer attitudes
behavioral
loyalty
price sensetivity
occasion
usage rate
discuss international segmentation bases and the effect of international market segments on the marketing mix
international segmentation bases
global segmentation
group of customers with wants and needs than span the whole globe
regional segmentation
across the region or several countries
unique segmentation
only within one country
effect on the marketing mix
sometimes it works in other countries and sometimes it doesn’t. because of culture. and tariffs.
describe the factors and analytics involved in selecting target markets
growth potential
level of competition
strategic fit - works with who the company wants to be
compare the most common target marketing strategies
undifferentiated targeting
approaches the marketplace as one large segment
best for uniform products
differentiated targeting
persues different markets with a different strategy for each
niche marketing
targeting large share of a small market segment
summarize the ethical issues in target marketing
children differentiating between promotion and entertainmnet
sexualization of children’s clothes
reverse mortgaging taking advantage of people who don’t know what it is
explain the three steps of effective market positioning and why firms may choose to use repositioning strategies
analyze competitiors positions
clearly define your competetive advantage
price quality relationship
attributes
application
evaluate feedback
repositioning strategies
reesiablishing a product to better fit changes in the marketplace
describe the elements of the promotion mix and how they relate to an integrated marketing communications strategy
advertising
internet, radio, tv, print, social media
nonpersonal communication
sales promotion
coupons, rebates, contests, sweepstakes
nonpersonal tool designed to promote frequent purchases of a product
personal selling
prospecting, presentation, closing, follow-up
two way communication between salesperson and customer that seeks to influence the customer’s purchasing decision
public relations
annual reports, speeches, blogs, brochures
focused on promoting positive relationships between the firm and it’s stakeholders
compare the advantages and disadvantages of different types of advertising
television advertising
sight, sound, and motion
better understanding of the product
narrowcasting
product placement
expensive
dvr use
cable abandonment
internet advertising
direct marketing
banner ads too common
pop up ads are intrusive
online ads that cause delay cause negative associations
print advertising
great for local buisnesses
can put ads in specific related sections
very specific audiences for magazine sales
magazines have longer shelf life than newspapers
people don’t use print ads anymore
compete with other ads for attention
long time to place ads in magazines
can’t control the placement
radio advertising
most cost effective medium
allows marketers to segment based off region
easy to switch off commercials
satellite radio
aux cord
outdoor advertising
flexability and reduced costs
hard to miss a big ass sign
exposure time for people in cars is short
wasted coverage as not everyone is in target market
nontraditional advertising
mobile ads and video games
summarize the various types of sales promotions
coupons
rebates
samples
contests and sweepstakes
premium (toys in cereal)
loyalty programas
trade sales promotions (business to business)
trade show
allowances - paying retailers for financial losses associated with promotions
training - training empolyees on a product to make them able to sell it easier
explain the importance of personal selling
immediate feedback from the customer
personal relatoinship to the customer
describe the role of public relations within the promotion mix
promoting positve relationships between firm and it’s stakeholders
annual reports, speeches, blogs, brochures, media kits, sponsorships, event marketing social media.
can help with crisis managment.
helps build respect for a company which makes people want to buy their product.
describe the metrics that measure the effectiveness of an organizations promotional strategy
pretest and posttest
recognition test: showing consumers the ad and seeing if they recognize it
unaided recall tests: recall ads from memory without clues
aided recall test: recall ads from memory with clues
reach: percentage of the target market that has been exposed to a promotional message at least once during a specific period.
frequency helps. more revenue per ad dollar.
summarize the promotion mix budgeting strategies
affordable method: based on what they believe they can afford. common in small businesses. doesn’t offer benefits.
percentage of sales: allow for a percentage of sales to go towards promotion for the next sales period. can be bad when a firm’s sales decline.
objective and task: defines objectives and tasks and figures out how much they will cost. just costs time.
describe the strategic role of the sales force and the factors that influence use of personal selling
connect the business to the customer.
customer lifetime value: how much money one customer will give to a firm in total
relationship selling involves building and maintaining trust over a long period of time
factors that influence personal selling
higher priced or involving
new task for the customer
not purchased frequently
highly complex or technical
considered “risky”
can be customized
understand the different types of sales positions
new buisness salespeople
finding new customers and securing their business
usually client of a competeing firm
channel sales representatives
look to win, maintain, and expand relationships with channel partners
order getters
order takers
process orders that a customer initates
delivery salespeople
deliver the product
consultative sellers
develop long term relationships by developing a deep understanding of their wants and needs
missionary salespeople
promote the firm and encourage demand for goods and services
key account sellers
keep and maintain relationship with three to five main key accounts
sales force management
planning, directing, and control of personal selling objectives
sales support roles
customer success manager
successful onboarding of new customers
identifying account growth opportunities
ensuring long term client retention
explain the steps in the personal selling process
pre sales call
prospecting
searching for potential customers
qualifying: seeing if yall match
money
authority
need
timing
pre approach
research and preparation before contacting
sales call
approach
meet for the first time
give them the pitch of what you have
presentation
features, advantages, benefits (fab)
handling objections
acknowledge (yes because…) , postpone (discuss later), denial (that’s not how it is)
gaining commitment
asking a prospect to move forward, leading to a purchase
post sales call
follow up
easier to keep a customer than get a new one
describe the foundational elements necessary for sales success
customer oriented selling: see tings from the buyers perspective and do what they want
growth mindset or whatever
market related knowledge
selling related knowledge
spin selling
situation questions
problem questions
implication questions
need payoff questions
describe the use of sales technologies and social network platforms in personal selling
customer relationship management and crm systems
customers can contact management, firms can track outcomes corresponding to each interaction, automate routine tasks, inventory tracking and forecast demand
virtual selling
social selling
networking and stuff
discuss ethical issues in personal selling and sales management
should be guided by ethical considerations
shouldn’t say what you think they want to close in on the sale
can’t do bad stuff towards your own firm either like take bribes
describe the various flows within a supply chain
upstream: flow of products getting products to the customer
downstream: flow of financial resources from the customer to the company
wholesaler: company that sells to other buisnesses
distributer: wholesaler but with exclusive rights
retailer: sells goods to customers for their own use
describe the push, pull, and hybrid supply chain strategies and their relationship to a company’s competetive strategies
push strategy: buys based off a sales forcast, puts them in a warehouse, and waits for people to buy the product
can buy bigger warehouses which are more cost effective, load more stuff on boats and trucks which is better
if they’re wrong about the forecast they’re fucked
hard to adapt easily to outside factors
pull strategy: customer orders drive manufacturing and distrubution operations
eliminates the risk
can’t take advantage of economies of sale.
hybrid strategy: build an inventory of components based off the forecast and then put them together when they recieve an order.
like lego and how they have all the bricks.
economies of sale and flexibility
may not be as competetive as push
summarize the importance of collaboration and resillience to effective supply chains
to make sure everything is deilvered in a timely manner. anticipate, prepare for, and respond to disruptions.
describe how the primary logistics functions to support a firm’s supply chain strategy
plans, impements, and controls the supply chain strategy.
place, price, product, promotion.
dsecribe the various logistics functions and their importance to marketing
managing inventories
inventory costs
purchasing costs
inventory carrying costs
out of stock costs
purchasing
purchasing activities
select and qualify appropriate suppliers
negotiate contracts and place purchase orders
monitor supplier performance
develop suppliers
materials management, warehousing, and distribution
materials management
inbound movement of storage and materials in preparation for those materials to enter and flow through the manufacturing process
warehousing
storage
movement
production
distribution
transportation management
rail
motor
air
pipeline
cyberspace