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69 Cards in this Set
- Front
- Back
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physical distribution: 3 decision factors |
Location of facilities Inventory management Transportation |
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Most important trade off in physical distribution |
Service to customers vs. cost to provide |
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Locate relative to... |
Resources (raw materials) and markets |
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Locate near raw materials when: |
A lot of weight is shed in production Raw materials are perishable |
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Locate near markets when: |
You add weight in production Finished product is perishable (I.e plants, newspaper, concrete) |
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Examples of storing facilities |
Wearhouses and distribution centers |
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Why might you build another wear house? |
Save cost of far distance shipping May speed up service= more revenue |
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Two types of retail store locations |
Inter-regional (general area) Intra-regional ( specific site) |
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How to make inter regional decisions: |
Geographic market targeting - sales that are currently being made - how many competitors in relative area |
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How to make INTRA- regional decisions: |
Traffic flow Cost/ rent Population Competition Accessibility (Can use with multi attribute approach) |
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Trade area analysis |
Geographical area where store's customers are from - radius that includes 75% of store's customers - secondary radius includes 90% of stores customers |
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What is the problem with trade area analysis? What is the solution? |
You have to determine a trading area for a nonexistent store. Solution: find a store that is the most identical. |
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Rank transportation by speed: |
Air Highway Rail Water Pipeline |
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Rank transportation by frequency |
Pipeline Highway Air Rail Water |
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Rank transportation by dependability |
Pipeline Highway Rail Water Air |
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Rank transportation by payload flexibility |
Water Rail Highway Air Pipeline |
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Rank transportation by geographic points served |
Highway Rail Air Water Pipeline |
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Rank transportation by cost |
Water Pipeline Rail Highway Air |
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What is the equation used for inventory management and what does each variable stand for? |
Square root( (2*D*S) / C) D- annual demand S- order cost C- inventory carrying cost per unit This tells us how much to order to minimize total cost |
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When should you reorder inventory? |
Lead time * usage rate
Lead time: how long it takes to get the stuff you ordered Usage rate: how often inventory goes out the door |
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What is the goal of promotion? |
To end with someone purchasing the product. |
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What are the stages of responses to promotion? |
1.) Awareness (perception) 2.) Attitude (feeling) 3.) Behavioral (action) -- sequence can change depending on product |
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High involvement promotion strategy: |
Attitude is most important aim of promotion (focus on stage that proceeds behavioral stage) - personal selling - print media: provides more info than commercial - longer messages, fewer repetitions - usually high priced items (Almost all industrial) |
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Low involvement promotion strategy: |
Awareness is the main focus - advertise to increase awareness - broadcasts - low involvement audience = more repetitions not as long of messages - convenience products |
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One sided message structure |
Message is only positive things about product/ company -good for new inventions |
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Two sided message structure |
Both positive and negative aspects of product/ company (owning it) - when audience is loyal to competitor -highly sophisticated audience -audience is exposed to competing messages |
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When should your message explicitly state a conclusion? |
-with complex message/ product - not sophisticated audience |
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What is the idea of primary messaging? |
The information first seen in the ad is the most retained |
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What is the idea of regency messaging? |
The info last in the message is the most retained. |
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Four types of messaging content: |
Rational: appeals to reason Sensory: appealing to one or more of the 5 senses Social: product will increase social standing Emotional: appeal to emotions (ex: fear or humor) |
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When dealing with emotional content, what are the upsides and downsides to using fear or humor? |
Fear: (+) it gets a reaction (-) can evoke an unpleasant reaction
Humor: (+) good vibes (-) can distract from message |
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What are the four types of promotion? |
Advertising Sales promotion Public relations Personal selling |
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What are the four types of promotion? |
Advertising Sales promotion Public relations Personal selling |
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What is institutional advertising? |
Advertising corporate image rather than the specific product |
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Why is cooperative advertising (co-op)? |
A supplier and distributor share cost of distributor's advertising (like retail local advertising) |
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What is comparative advertising? |
Mentioning competitors by name in ad... Usually compare to dominant brand |
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What is "reach" when talking about media? |
# of people in audience who have been exposed to our message at least once |
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What is the equation for exposure? |
Frequency X reached = exposure |
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What does CPM mean? (Think advertising) |
Cost per thousand |
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How do you evaluate exposure value? |
Audience quality and impact (audience attention probability and editorial quality) |
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What are the three types of media timing? |
Continuous- constant Pulsing- up and down but never zero Concentrated- advertise for a while, then take a break, then start again |
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When should you have continuous media? |
Higher buyer turnover rate Higher purchase frequency Higher forgetting rate |
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When should you have continuous media? |
Higher buyer turnover rate Higher purchase frequency Higher forgetting rate |
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What is USP and what does it refer to |
Unique Selling Proposition And refers to a thinking about promotional content |
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Types of promotion incentives: |
Consumer promotion: incentives for consumers Trade promotion: incentives for distributors Sales force promotion: incentives for your sales people Business promotion: product to producer promotion |
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How is public relations different than advertising? |
It is perceived as unbiased, not trying to promote a certain product And it's less $$ |
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What are the three "E's" of recruiting a sales person! |
Energy Empathy Perseverance |
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What are the ingredients for a sales pitch? |
-Focus on features -Give the customer a leading question to show them they do need your product -answer objections |
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What are the 3 Cs of pricing? |
Customers Competitors Costs |
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What is the penetration pricing strategy? |
Setting low initial price Do when: -Price is sensitive (elastic) -Economies of scale (lower cost = more you sell) -Discourage competition |
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What is the skimming price strategy? |
High initial price and gradually lower it Do when: - demand isn't elastic - no economies of scale - less competition is anticipated |
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What is an odd even price model? |
Back (Definition) |
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Prestige pricing model |
Back (Definition) |
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What is price administration? |
Whole system of price adjustments (discounts and allowances) |
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What is a functional discount? |
Discount in return for performing some function |
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What is a trade discount? |
Something given to distributors just for their position in the channel |
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What are the two retail pricing strategies? |
Loss leader- selling at a loss j. Order to lead customers into store and buy other things Bait & Switch - draw them in with low prices totes to persuade to buy something more expensive |
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How can a supplier directly influence its retail price? |
-Mark price directly on merchandise -suggest - advertise price to retailer's customers |
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How can a supplier directly influence its retail price? |
-Mark price directly on merchandise -suggest - advertise price to retailer's customers |
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How can a supplier indirectly affect retail price? |
Give incentive Refuse to sell Other rewards Price charged reseller |
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When a company sells divergent products (numerous and different) and has convergent markets, what market and sales force organization does it use? |
Market org: product management Sales force: product structured (conform to product groups) |
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When a company sells divergent products (numerous and different) and has convergent markets, what market and sales force organization does it use? |
Market org: product management ( strategy specific for each product) Sales force: product structured (conform to product groups) |
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What type of market organization and sales force for a firm with a convergent product (few/similar) and convergent markets? |
Market org: functional ( different marketing activities are headed by a functional specialist) Sales force: territorial ( all products to all markets in their territory) |
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What type of market org. / sales force would a firm that has convergent products and divergent markets use? |
Market org: Market management ( specific strategy for specific market) Sales force: Customer structure (conform to customer groups) |
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What are the 4 ways to estimate elasticity? |
Historical data Market test (test markets instead of time periods) Survey of intentions Analytical inference (guess) |
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What are the two things to do when talking about Marketing strategy? |
Identify marketing Target Develop marketing mix: (4 Ps; product, price, promotion, distribution) |
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What are the 4 ways to estimate elasticity? |
Historical data Market test (test markets instead of time periods) Survey of intentions Analytical inference (guess) |
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What are the two things to do when talking about Marketing strategy? |
Identify marketing Target Develop marketing mix: (4 Ps; product, price, promotion, distribution) |
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What are the steps in Strategic Planning in Marketing? |
-Identify resources: compare to competitors -Identify mission - set more concrete objectives - Develop strategies to achieve objectives |
