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184 Cards in this Set
- Front
- Back
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Distribution
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the physical flow of goods from producer to consumer/ the process of making a product or service available for use or consumption by the consumer
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Channels create
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time utility/ information utility/ place utility
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Key functions performed by channel members
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information/ promotion/matching /physical distribution/Financing
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Number of channel levels
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the number of intermediary levels indicates the length of a marketing channel
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direct channels
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straight from producer to consumer
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indirect channels
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producer, retailer, consumer
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Physical flow
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how it gets from producer to consumer
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Payment Flow
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from consumer - x - producer
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Information Flow
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what it is, how it works, what the consumer wants
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Promotion Flow
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supplier to consumer
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Flow of Ownership
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supplier to consumer
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Channel conflict
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occurs when channel member disagree on roles, activities, or rewards
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Horizontal conflict
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occurs among firms at the same channel level
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Vertical conflicct
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occurs among firms at different channel levels
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Conventional distribution channel
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consists of one or more independent producer, wholesaler and retailers. Each is a separate business seeking out to maximize their own profit
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Vertical Marketing System
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one channel member owns the others has contracts with them or has so much power that they all must cooperate
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corporate VMS
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one company owns the other
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Contractual VMS
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two independent companies who sign contracts to govern their relationships/ minimizes conflict
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Administered VMS
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one of the channel members has power over the other
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Multichannel distribution system
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hybrid marketing channels, occurs when a firm uses two or more marketing channels
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Changin channel organization
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disintermediation
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number of marketing intermediaries
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intensive, selective, exclusive distribution and exclusive dealing
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Intensive
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locating at as many retail outlets as possible
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Selective
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only in a few retail outlets
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exclusive distribution
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only sold at this one store
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exclusive dealing
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the store cannot sell competitors product
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Marketing logistics
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the planning, implementations and controlling the physical flow of goods, services and related information from points of origin to points of consumption
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Outbound distribution
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producer to distributor , transporting from factory to retailer
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inbound distribution
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raw materials into factories (on time)
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reverse distribution
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retailer sends faulty goods/ return back to factory
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Transportation carrier options
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truck/ rail/ water/ pipeline/ air/ internet
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piggyback
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rail and truck
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fishyback
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water and truck
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trainship
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water and rail
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airtruck
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air and truck
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retailing
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all activities involved in selling goods or services directly to final consumers for their personal non-business use
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Retailers are classified by
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amount of service and product lines
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Self service retailers
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customers are willing to self-serve to save money/ discount store
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limited service retailers
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most department stores
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full service retailers
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salespeople assist customers in every aspect of shopping experience/ high end department stores/ specialty stores
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specialty stores
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narrow product lines with deep assortments gap, express
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department stores
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wide variety of product lines (sears/jc penny)
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supermarkets
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shaws, stop n shop
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convenience stores
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limited line of high turnover convenience goods (seven 11)
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superstores
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food, non food and services, walmart kmart
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category killers
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giant specialty stores best buy, pet smart
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wheel of retailing
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start out w/ low prices/ expand bringing in more merchandise/ prices go up to cover costs/become like any other retailer/ new store opens w/ low prices
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retail convergence
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trying to imitate successful retailers, more retailers become similar to on eanother in what they sell and prices they charge
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The future of retailing
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new retail forms and shortening retail lfe cycles, wheel or retailing concepts, growth of nonstore retailing, mail order tv online/ retail convergence
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wholesaling
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all activities involved in selling goods and service to those buying for resale or business use
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Wholesalers add value by performing
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selling and promoting/buying and assortment building/bulk-breaking/warehousing/transportation/financing/risk bearing/ marketing information/ management service and advice
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Assortment building
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buying different things from different producers
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bulk breaking
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buy in huge quantities and sell in smaller quantities
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merchant wholesalers
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must be risk bearing
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full service wholesalers
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provide all services
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limited service wholesalers
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only offer one or more but not all services
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Merchant wholesalers
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full service wholesaler/ limited service wholesaler
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Brokers and agents
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bring buyers and selling together and assist in negotiation/ agents represent either buyers or sellers on a more permanent basis than brokers do
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Trends in wholesaling
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price competition is still intense/ the distinction between large retailers and wholesalers continue to blur/ more services will b e provided to retailers/ many wholesalers are going global
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Marketing Communication Mix
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the specific mix of advertising , personal selling, sales promotion and public relations a company uses to persue its advertising and marketing objective
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Integrated Marketing Communication
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The concept under which a company integrates and coordinates its many communications channels to deliver a clear consistent and compelling message about the organization and its products
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Integrated Marketing Communication
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consistency!
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Communications
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must have sender and receiver
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Elements in the communication process
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sender/message/media/receiver/encoding/decoding/response/feedback/noise
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Encoding
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putting the message in a way that the consumers will be able to understand
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decoding
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understanding the message
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media
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the channel that carries the message
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response
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how you react to the message
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feedback
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collecting info about the message
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noise
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distraction internal & external
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sender
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marketer
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receiver
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consumer
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message
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what the marketer wants the consumer to know
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Developing Effective Communication
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Step 1: Identify Target Audience/ Step 2: Determining Communication Objectives/ Step 3: Designing a Message/ Step 4: Choosing the Media/ Step 5: Selecting the message source/ Step 6: Collecting Feedback
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Step 1: Identifying Target Audience
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Affects decisions related to what, how, whne and wher the message will be said as well as who will say it
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Step 2: Determining Communication Objectives
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Six buyer readiness stages Awareness/Knowledge/Liking/Preference/Conviction/Purchase
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Step 3: Designing the message
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AIDA framework guides message Attention/Interest/Desire/Action. Message content contains appeals or themes designed to produce desired results Rational appeals v Emotional appeals Whether or not to draw a conclusion/one sided or two sided argument/ order of argument presentation
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Step 4: Choosing Media
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Personal Communication Channels, includes face to face, phone, mail and internet chat communicaitons/ word of mouth influence is often critical/ buzz marketing cultivates opinion leaders - Nonpersonal communicaiton channels includes media and events
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Step 5: Selecting the message source
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highly credible sources are more persuasive/ a poor spokesperson can tarnish a brand
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Step 6: Collecting feedback
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recognition, recall, and behavioral measures are assessed/ may suggest changes in product/promotion
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Total Promotional Budget Affordability
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Budget is set at a level that a company can afford
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Total Promotional Budget Percentage of Sales Method
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past or forecasted sales may be used
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Total Promotional Budget Competitive Parity Method
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budget matches competitors' outlays
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Total Promotional Budget Object & Task Method
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Specific objectives are defined/ Tasks required to achieve objectives are determined/ Costs of performing tasks are estimated, then summed to create the promotional budget
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Advertising
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reaches large, geographically dispersed audiences, often with high frequency/ low cost per exposure, though overall costs are high/ may stimulate short term sales/ impersonal one way communication
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Sales Promotion
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may be targeted at the trade or ultimate consumer/ makes use of a variety of formats, premiums, coupons, contests/ attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales, short lived/ not effective at building long term brand preferences
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Public Relations
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highly credible, many forms, news stories, news features, events and sponsorships, often the most underused elements in the promotional mix
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Personal Selling
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most effective tool for building buyers preferences, convictions, and actions/ personal interaction allows for feedback and adjustments/ most expensive of the promotional tools
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Direct Marketing
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many forms, telephone marketing, direct mail, online marketing/ three distinctive characteristics, nonpublic, immediate, customized
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Advertising
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any paid form of non-personal presentation and promotion of ideas goods or services
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Advertising
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modern ad spending tops 231 billion in US annually 500 billion worldwide
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setting objectives
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advertising objectives can be classified by primary purpose 1 inform introducing new products 2 persuade becomes more important as competition increases, comparative advertising 3- remind most important for mature products
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Setting the budget
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several factors should be considered when setting ad budget, stage in PLC/ market share/ level of competition/ ad clutter/ degree of brand differentiation
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Developing the advertising strategy
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creative challenges- media planning/message creation (which comes first) Creating ad messages Message strategy - creative concept big idea. Catch, song, phrase/ Advertising appeal (meaningful, believable, distinctive) Message execution
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Slice of life
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typical people using product in normal life
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lifestyle
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how a product fits in with a particular lifestyle
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fantasy
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create fantasy around product imagination
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mood or image
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song
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musical
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people singing about a product
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personality symbol
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create character that represents the brand
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technical expertise
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showing company expertise
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scientific evidence
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presenting scientific evidence
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testimonial evidence or endorsement
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a highly believable source endorsing the product
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Developing the advertising strategy
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decide on level of reach, frequency and impact/ Choose among the major media types/ Decide on media timing
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Evaluating advertising campaigns
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measuring communications effects : copy testing, product preference, product awareness, consumer recall, product knowledge/ Measuring sales effect past v current sales comparison
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copytesting
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find out what is most effective before they air
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push money
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for larger shelf space or for advertising
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mobile marketing
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moving from 1 city to another showing your new product
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Advertising to international markets
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standardizing worldwide advertising/ advantages include lower advertising costs and consistent global image/ Drawbacks include ignoring cultural and demographic differences/ Most marketers think globally but act locally
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Sales Promotion
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sales promotions are short term incentives to encourage the purchase or sale of a product or service
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Sales Promotion
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can be targeted at the final buyers, retailers, and wholesalers, business customers and members of the sales force
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Consumer Promotion Objectives
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increase short term sales/ generate product trials
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Trade Promotion Objectives
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obtaining distribution and shelf space/ encourage retailers to advertise the brand
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Sales Force Promotion Objectives
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signing up new accounts
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Trade Promotion Tools
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discounts, allowances/ pursh money (advertising allowances/ display allowances)/ Free goods/ Specialty advertising items
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Public Relations
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building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events
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Public Relations Tools
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News. Speeches, corporate identity materials, mobile marketing, special events, public service activities
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Sales person
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an individual acting for a company by performing one or more of the following acivities, prospecting, communicating, servicing, information gathering
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Sales people names
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agents/ sales consultants, sales representative, account executives, sales engineers, district managers, marketing representatives, account development representatives
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Personal Selling
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two way personal communication/ more effective than advertising in complex selling situations, the sales force works to ensure customer satisfaction and company profit
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Sales force management
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the analysis, planning implementation, and control of sales force activities.. It includes setting and designing sales force strategy, and recruiting, selecting, training, supervising, compensating and evaluating the firm's salespeople
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Sales force strategy and structure
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territorial sales force structure, product sales force structure, customer sales force structure, complex sales force structure (2 or more of the others)
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Sales force size
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many companies use the workload approach to set sales force size, outside (you go to customer) and inside sales force( customer goes to you), team selling
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Careful recruiting
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increase overall sales force performance, reduce turnover, reduce recruting and training costs
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Compensating Salespeopl
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compensation elements: salary, bonuses, commissions, expenses, and fringe benefits Straight Salary, Straight Commission, Salary plus bonus, salary plus commission
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Evaluating sales people
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sales reports, call reports, expense reports
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Sales report
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details how many sales you made
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expense reports
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sales relative to expense
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call reports
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shows effort/ not sales
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Steps in the selling process
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prospecting and qualifying, pre-approach, approach, presentation and demonstration, handling objections, closing, follow up
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prospecting and Qualifying
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finding potential new customers
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pre-approach
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studying potential clients before talking
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approach
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1st contact
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presentation
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demonstration
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handling
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objections
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closing
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making sale
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International Marketing
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the process of planning the conception, pricing, promotion and distribution of products and services for more than one nation
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For US based companies
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75% of sales potential is outside US
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Japanese companies
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85% of potential is outside Japan
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For German and EU companies
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94% of potential is outside germany and EU
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Growth
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access to new markets/access to new resources
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Barriers to trade
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tariffs/quotas
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Tariffs
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countrs try to limit importing to protect local businesses
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Quotas
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a limit on the number of products that can be imported
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Theodore Levitt (1983)
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argues that marketers were confronted with homogenous global village. Advised organizations to develop standardized, high quality producs and market them around the globe using standardized advertising, pricing and distribution
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Standardized Marketing Mix
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Same basic product, advertising, distribution and other elements of the marketing mix are used in all international markets/ essence of mass marketing
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Customized Marketing Mix
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the marketing mix elements are adjusted for each international target market/ Essence of segmentation
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Nationalization
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government takes over part of a private company
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privatization
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gov't selling assets to public
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confiscation
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nationalizating without compensating
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Market Capitalism
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Market resource allocation/ private resource ownership
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Centrally Planned Capitalism
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Command resource allocation and private resource ownership
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Market Socialism
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Market resource allocation and state resource ownership
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Centrally Planned Socialism
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Command resource allocation and state resource ownership
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Political Risk
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risk of change in political environment or government policy that would adversely affect a company's ability to operate effectively and profitably/ when perceived political risk is high, a country will have a difficult time attracting foreign direct investment
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Culture
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ways of living built up by a group of human beings, transmitted from one generation to another/ a culture is repesented in a country's social institutions
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social institutions
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family/education/religion/government/business
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Global marketer's job
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study and understand the country's economic structure, political system and culture in which they will be doing business/ incorporate this un derstanding into the marketing planning process
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Exporting
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method of payment (documentary credit)
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Licensing
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joint venture/contract manufacturing
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Direct Investment
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assembly facilities, manufacturing facilities
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Licensing
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franchising
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Joint Venture
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partner w/ company in foreign market to sell product
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contract manufacturing
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has the license to make the product but not to sell it
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Direct Investment
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invest money building branch of your company overseas
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Assembly facility
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parts made in original country, exported and assembled in foreign country
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manufacturing facilities
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made from scratch
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documentary credit
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exporter puts money in bank, bank sends letter of credit to exporter's bank, exporters bank informs exporters, exporter ships product rep from bank inspects product, release money to exporter bank
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Marketing's impact on individual consumers
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high prices, high costs of distribution, greedy intermediaries/ high advertising and promotion costs/excessive markups
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Marketing's impact on individual consumers
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Deceptive practices: pricing/promotion/packaging High pressure selling (salespeople pressure people into buying products they don't need)
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Marketing's impact on individual consumers
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Unsafe, low quality products/Planned Obsolescence/ Poor service to disadvantaged consumers
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Marketing's impact on society as a whole
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false wants and too much materialism/ too few social goods/ cultural pollution/ too much political power
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Consumerism
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an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers
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Environmentalism
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An organized movement of concerned citizens, businesses and government agencies to protect and improve people's living environment
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Public Actions to Regulate Market
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legal steps taken to protect the consumer
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Enlightened Marketing
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consumer oriented marketing/ innovative marketing/ societal marketing
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Enlightened Marketing
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customer oriented marketing companies view and organize their marketing activities from consumer's point of view. Work hard to satisfy the consumer
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Innovative marketing
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companies seek real product and market improvements
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societal marketing
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companies make marketing decisions by considering the consumers' wants, the company's requirements, consumers' long run interests and society's long run interests
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Salutary products
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low immediate satisfaction high long run benefit
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desirable products
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high immediate satisfaction high long run benefit
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deficient products
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low immediate satisfaction low long run benefit
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pleasing products
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high immediate satisfaction low long run benefit
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Marketing ethics
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corporate marketing ethics policies/ guiding principle in policy determination (free market and legal system/individual companies and managers) International ethical policies are a special challenge
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