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187 Cards in this Set
- Front
- Back
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upstream partners |
firms that supply raw amterials, components, parts, info, finances, and expertise to create a produce/service |
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downstream partners |
the distribution channels that get it to the customer, like retailers and wholesalers |
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value delivery network |
the suppliers, distributors and customers who work together to improve the entire system |
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marketing (distribution) channel |
a set of interdependent organizations that make a product/service available for use or consumption by consumers or business users |
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what does a distributor do? |
reduces the number of transactions by acting as a middle man inbetween the manufacturer and customer |
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in what ways do channel members add value? (8) |
1. information 2. promotion 3. contact 4. matching 5. negotiation 6. physical distribution 7. financing 8. risk taking |
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Business marketing channel |
1. producer 2. manufacturer's representative or sales branch 3. business distributor 4. business customer |
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consumer marketing channel |
1. producer 2. wholesaler 3. retailer 4. consumer |
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What type of flows are channels connected? (5) |
1. physical flow of products 2. flow of ownership 3. payment flow 4. information flow 5. promotion flow |
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channel conflict |
disagreement among channel members over goals, roles and rewards (horizontal and vertical) |
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Vertical market system |
the chain that provides channel leadership and consist of producers, wholesalers and retailers - corporate, contractual, administered |
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corporate vertical marketing system |
combine successive stages of production and distribution under single ownership |
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contractual vertical marketing systems |
independent firms at different levels of production/distribution who join together through contracts |
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franchise organization |
are contractualassociations between amanufacturer, wholesaler, orservice organization (a franchisor) and independent business people (franchisees) who buy the right to own andoperate one or more units inthe franchise system. |
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top 5 global franchises: |
1. subway 2. mcdonalds 3. kfc 4. burger king 5. 7 eleven |
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administered vertical marketing system |
coordinates successive stages of production/distribution through the size and power of one party |
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horizontal marketing system |
channel arrangement in which two or more companies at the one level join together to follow a new marketing opportunity MUNCHIES, which chetos, sunships and pretzels |
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multichannel distribution system |
a single firm sets up two or more marketing channels to reach one or more customer segments |
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disintermediation |
the cutting out of marketing channel intermediaries by producers or the displacement of traditional resellers by new intermediaries |
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Decision steps for designing a channel |
1. analyze consumer needs 2. set channel objectives 3. identify channel alternatives 4. evaluate channel alternatives |
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step 1: analyzing consumer needs |
- find out what target consumers what from channel - identify market segments - determine the best channels to use - minimize the cost of meeting consumer service requirements |
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step 2: setting channel objectives |
- determine targeted levels of customer services - balance consumer needs against costs and customer price preferences |
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step 3: identify major alternatives |
types of intermediaries: channel members available to carry out channel work - most companies face many channel member choices |
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What are the different marketing intermediaries? |
1. intensive distribution 2. selective distribution 3. exclusive distribution |
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step 4: evaluating the major alternatives |
1. economic criteria (compares sales, costs and profitability) 2. control issues (keeping as much control as possible) 3. adaptability criteria (keep channel flexible so it can adapt to environmental changes) |
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retailing |
all activities in selling goods or services directly to final consumers for their personal, non-business use |
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what characterizes retailers? |
1. amount of service 2. product lines 3. relative prices 4. organization |
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what are the different amounts of service for retailers? |
1. self-service 2. limited service 3. full service |
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what are the different product line stores for retailers |
1. speciality stores 2. department stores 3. convenience stores 4. superstores 5. category killers |
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what are the different relative price classifications for retailers? |
1. discount stores 2. off-price retailers 3. factory outlets 4. warehouse clubs |
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what are the different organizational approaches for retailers? |
1. corporate chains 2. voluntary chains 3. retailer cooperatives 4. franchise organizations |
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corporate chains |
two or more outlets that are commonly owned and controlled - size allows them to buy in large quantities at lower prices and gain promotional economies (Macy's or CVS) |
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Voluntary chains |
wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising (IGA and Western Auto) |
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retailer cooperatives |
groups of independent retailers that band together to set up a joint-oned, central wholesale operation and conduct join merchandising and promotion efforts (Ace Hardwar and Associated Grocers) |
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what two things create value for targeted retail customers? |
1. retail strategy - segmentation and targeting - store differentiation and positioning 2. retail marketing mix - product and services assortment - retail prices - distribution (local) |
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what four things involve the definition/profile of the market so the other retail decisions can be made? |
1. segmentation 2. targeting 3. differentiation 4. positioning |
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what do the major product variable decisions include? |
- product assortment - services mix - store atmosphere |
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price policy must... |
fit the target market and positioning, product and service assortment, competition and economic factors - high markup on lower volume - Low markup on higher volume |
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everyday lower pricing |
- charging constantly low prices with few sales or discounts |
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high-low pricing |
charges higher prices daily with frequent sales and other promotions |
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wholesaling |
all activities involved in selling goods and services to those buying for resale or business use |
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types of wholesalers |
1. merchant wholesaler 2. brokers and agents 3. manufacturers' and retailers branches and offices |
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merchant wholesaler |
- the largest group od wholesalers - includes: 1. full-service wholesalers that provide a full set of services 2. limited service wholesalers that provide few services and specialised functions |
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brokers and agents |
- do not take title, perform few functions and specialize by product line or customer type - brokers bring buyers and sellers together and assist in negotiations - agents represent buyers and sellers |
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manufacturers and retailers branches and offices |
a form of wholesaling by sellers or buyers themselves, rather than through independent wholesalers |
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advertising |
any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor |
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what are the major advertising decisions in order? |
1. objective setting 2. budget decisions 3. ad strategy (media, message) 4. advertising evaluations |
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what is an advertising objective? |
a specific communication task to be accomplished with a specific target audience during a specific time |
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what are the different types of advertising objectives you could communicate? |
1. informative 2. persuasive 3. comparative 4. reminder |
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informative adveristing |
introduces a new product category to build primary demand |
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persuasive advertising |
important with increased competition to build selective demand |
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comparative advertising |
when a company compares it brand with other brands |
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reminder advertising |
important with mature products to help maintain customer relations and keep customers thinking about the product |
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stimulate primary or selective demand? |
? |
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what are the factors to consider when setting an advertising budget? |
1. stage in product life cycle 2. market share 3. competition |
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advertising strategy |
strategy which the company accomplishes its ad objectives - consists of 1. creating ad messages 2. selecting ad media |
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advertising clutter |
in today's world, consumers can choose what they want and don't want to watch, aka not ads |
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messages and content strategy for ads |
- identifies consumer benefits - message strategy - creative concept ("big idea" that's memorable) - characteristics: 1. meaningful 2. believable 3. distinctive |
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message execution |
when the advertiser turns the big idea into an actual ad that will "capture the target markets attention and interest" - must find the best approach, tone, style, words and format for it |
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different message executions (9) |
1. slice of life 2. lifestyle 3. fantasy 4. mood or image 5. musical 6. personality symbol 7. technical expertise 8. scientific evidence 9. testimonial or endorsement |
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what does message execution include? |
- tone (positive or negative) - attention-getting words - format (illustration, headline, copy) |
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consumer generated content |
- when consumers submit ad ideas, videos etc - when a consumer's voice is incorporated in the ad - generates greater consumer engagement |
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what are the steps in selecting the media for an ad? |
1. determining reach, frequency and impact 2. choosing the media type 3. selecting the media vehicles 4. choosing the timing |
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reach |
- the measure of the percentage of the target market that is exposed to the ad over a period of time |
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frequency |
how many times an average person is exposed to the ad message |
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impact |
the qualitive value of the message exosure through the given medium |
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different media types |
tv, digital and social media, newspapers, direct mail, magazines, radio and outdoor |
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selecting media vehicles |
which channel, magazine, social media app etc must consider.. 1. impact 2. effectiveness 3. cost |
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narrowcasting |
focuses the message on the selected market segments - lower costs - targets more effectively |
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media timing |
consider... - seasonility - pattern of advertising (continually vs. pulsing) |
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continually vs. pulsing |
scheduling evenly with a given period scheduling unevenly within a given period |
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return on advertising investment |
- the net return divided by the cost of it |
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communication effects |
indicate whether the ad and media are properly communciating the message - can be tested before or after ad runs |
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sales profit and effects |
compare sales and profits with past expenditures or through experiments |
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public relations |
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 or press agency |
the creation and placing of newsworthy info to attract attention to a person, product or service |
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product publicity |
publicizing different products |
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public affairs |
building and maintaining national or local community relations |
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the role and impact of public relations |
- lower cost that advertising - stronger impact on public awareness than advertising - has power to engage consumers and make them a part of the brand story |
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tools for public relations (9) |
1. news 2. speeches 3. special events 4. written materials 5. corporate identity materials 6. public services 7. buzz marketing 8. social networking 9. internet |
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intensive
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sell through as many outlets as possible - soft drinks are sold everywhere |
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selective |
open to several outlets but not everywhere |
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exclusive |
agreement between a supplier and distributor to have exclusive rights to sell in a given geographical area - AT&T only had apple for the longest time |
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speciality store |
stores that sells a specific category - jewelry |
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department store |
stores that sells a lot of different categories - macys - clothing, goods, shoes, make up - different departments in the store |
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convenience store |
extended hours and convenient location with goods - small, residential, longer hours - higher prices and limited amount of product |
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super store |
a store with large amount of space and variety (includes discount stores, department stores or category killers) |
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category killer |
a giant specialty store |
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discount stores |
- super store that sells so much they can sell it for cheaper |
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off-price retailers |
- sells high quality goods for cheaper prices - ross, nordstroms rack |
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factory outlet |
a store where the producers directly sell their products to the consumers at a cheaper price because there is no middle man |
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warehouse clubs |
members can get cheaper prices in bulk |
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personal selling |
interpersonal part of the promotion mix and can include: - face-to-face - telephone communication - video or web conferencing |
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salespeople |
effective link between the company and its customers to produce value and company profit by.... - representing the company to customers - representing customer to the company - working closely with marketing |
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what is salesforce management? |
- the analysis, planning, implementation and control of sales force activities |
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slice of life |
the style shows using the product in a typical normal setting eating cereal at table |
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lifestyle |
show what product the life style is meant for nike is for athletism |
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fantasy |
product gives a fantasy, if you buy this product, you'll have this fantasy "bedroom for a queen" |
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mood or image |
builds mood or image for a product - bud light twin towers commercial |
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musical |
shows people singing about the product glee |
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personality symbol |
a specific symbol for remembrance - flow or geico gecko |
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technical expertise |
technical expertise - show the process of the production - baking a pizza - beer expertise |
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scientific evidence |
evidence or doctor's approval |
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testimonial or endorsement |
- achne people - famous people on got-milk ads |
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stimulating primary or selective demand? |
primary demand: non brand, general item eat CHEESE selective demand: branded item eat CRAFT CHEESE |
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territorial sales force structure |
- each sales person is assigned to an exclusive geographic area and sells the full line of products and services to all customers in that territory - defines the job - fixes accountability - lowers sales expenses - improves relationship building and selling effectiveness SPECIFIC AREA |
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product sales force structure |
- each salesperson sells along product lines - improves product knowledge - can lead to territorial conflicts - each know one product very well SPECIFIC PRODUCT |
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customer sales force structure |
each salesperson sells along customer or industry lines SPECIFIC CUSTOMER ( likes Sears, Lowe's, Best Buy) |
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complex sales force structure |
all products in all geographic areas to all customers |
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outside and inside sales |
outside: traveling, field source inside: telephones, internet, headquarters |
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recruiting good or bad |
- careful selection and training increases sales - poor selection increases recruiting/training costs, lost sales and disrupt customer relationships |
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goals for training |
- customer knowledge - selling process - knowledge of products, company, competitors |
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steps in personal selling process (7) |
1. prospecting and qualifying 2. preapproach 3. approach 4. presentation and demonstration 5. handling objection 6. closing 7. follow-up |
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prospecting |
identifies qualified potential customers through referrals from - customers - suppliers - dealers - internet |
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qualifying |
- involves identifying good customers and screening out poor ones by looking at - financial ability - volume of business - needs -location - growth potential |
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preapproach |
learn as much as possible about a prospect, who is involved in the deal, and the characteristics and styles of the buyers |
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approach |
salesperson meets and greets the buyers and starts relationship - appearance - opening lines - follow-up remarks |
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presentation |
tells the product story to the buyer - customer benefits - how product sells the problem |
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need-satisfaction approach |
when buyers want solutions and salespeople should listen and respond with the right products and services to solve customer problems |
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good traits in a salesperson |
- good listener - empathetic - honest - dependable - thorough - follow-up type |
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closing |
the process where salespeople should recognize signals from the buyer - including physical actions, comments and questions, to ask for a order and finalize the sale |
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follow-up |
the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business |
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what is the long term goal of personal selling? |
to develop a mutually profitable relationship |
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sales promotion |
short-term incentives to encourage purchases or sales of a product or service |
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samples |
samples: trial amount of a product |
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coupons |
coupons: certificates that save buyers money on specific products |
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rebates |
rebates: like coupons except the price reduction occurs after the purchase
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different promotion tools |
- samples - coupons - rebates - premiums - advertising specialties - point-of-purchase promotions |
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premiums |
goods offered for free or at low price |
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advertising specialties |
useful articles imprinted with advertiser's name, logo, or message that are given to gifts - pens, key chains |
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point-of-purchase promotions |
displays and demonstrations that take place at the point of sale |
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direct and digital marketing |
- engaging directly with targeted consumers for an immediate response and build lasting relationships |
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direct and digital marketing can constitute.... |
a complete model for doing business - its the fastest growing form of marketing - more internet-based - huge market share of marketing spending and sales |
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benefits of direct/digital marketing for BUYERS |
- convenience - ready to access products - access comparative info about companies, products and competitors - interactive and immediate |
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benefts of direct/digital marketing for SELLERS |
- builds relationships - low-cost, efficient, fast alternative to reach markets - flexible - access to buyers not reachable through other channels |
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what do marketing web sites do? |
engage consumers to move them closer to a direct purchase or other marketing outcomes - branded web sites: creates online consumer community around a brnad |
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viral marketing |
- digital version of word-of-mouth marketing so infectious that consumers seek it out and share it with each other |
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social media |
independent and commerical online communities where people congregate, socialize and exchnage views and info - social media marketing |
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benefits of web-based catalog marketing |
- lower cost than print - unlimited amount of merchandise - real-time merchandising - interactive content - promotional features |
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challenges of web-based catalogs |
- require marketing - difficulties in attracting new customers |
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outbound vs. inbound telemarketing |
outbound: sells directly to consumers and businesses inbound: uses toll-free numbers to receive order from television and print ads, direct mail and catalogs |
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direct-response television |
- 60-120 second advertisement that describes products or give customers a toll-free number or website for ordering - 30 minute infomercials such as home shopping channels |
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ethics vs. laws |
ethics: moral principles/values that govern actions (honesty, responsbility, fairness, respect, oppenness) laws: society's values that are enforceable in the courts |
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ethnics are... |
- age relative - change over time - personal judgement plays a role |
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marketing ethical-legal quadrant |
ethical and legal unethical but legal illegal but ethical unethical and illegal |
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positive marketing ethics |
looks at "what is" currently, and how firms act and violations of ethical conduct |
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normative marketing ethics |
looks at how a firm should be acting - transparency, trustworthy, etc |
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AMA Statement of Ethics |
American Marketing Association framework for: - do not harm - foster trust - embrace ethical values |
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regarding ethics... |
- informational or pursuasive in advertising is becoming increasing area of concern - false information - manipulation |
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self-identity image |
turns the product into a symbol of a particular self-image j-lo as a spokesperson for beauty aid |
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deception in advertising must be... |
material - is the advertising likely to greatly affect the consumer's purchasing decision |
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competitor analysis |
- identify - assess - select which compitors to attack or avoid |
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competitors can include: |
- all firms making the same product or class of product - all firms making products that supply the same service - all firms competing for the same consumer dollars |
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competitors objectives |
- profitability - market share growth - cash flow - technological leadership - service leadership |
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competitors strategies |
strategic group offers the stronget competition - a group of firms with the same strategy in the market |
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customer value analysis |
- benefits of cutomer's value - how customers rate the value of competitors - attributes and importance to customer |
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close or distant competitors |
the degree to which how closely resembled the competitor is to your brand |
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good or bad competitiors |
rules of the indistry |
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michael porter's three basic positioning strategies |
- overall cost leadership (lowest - differentiation - focus - middle of the road |
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overall cost leadership strategy |
lowest production cost and allows lower prices and gains market shares |
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differentiation strategy |
highly differentiated product line and marketing program to be an industry leader |
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focus strategy |
focuses efforts on serving few market segments well rather than going after the whole market |
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a middle-of-the-roader |
a company without a clear strategy - wont succeed |
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what are tracy and wiersema's three value disciplines? |
1. operational excellence 2. customer intimacy 3. product leadership |
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what is the most competitive position? |
being a market leader 40% |
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market leader strategies |
- expand total deman - protect their current market - expannd market share |
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market challenger strategies |
- challenge the leader by making an agreesive bid for more market share - observes what has made the leader successful and improves on it |
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market follower strategies |
- play along with competitiors and not rock the boat - copy or improves the leaders product with less investment than the challenger - bring distinctive advantages - keep costs and prices low or quality and services high |
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market nicher strategies |
- ideal niche market is big enough to be profitable with high growth potential and little interest from competitiors - specialization |
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competitor-centered company |
spends most time tracking competitors moves and trying to find ways to counter - company is a fighter (good) - company is reactive (bad) |
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customer-centered company |
focused on customer developments and designing strategies - better than competitor-centered company for opportunities and build customer relations |
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market-centered company |
spends time focusing on both competitor and customer - best |
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product-centered company |
focuses on the product and not the customer or competitor |
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sustainable marketing |
meeting the needs of consumers while preserving the ability of future generations to meet their needs |
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sustainable marketing diagram |
marketing concept: consumer and business needs now strategic planning: consumer needs now business needs future societal marketing concept: consumer needs future business needs now sustainable marketing concept: consumer and business needs future |
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responses to prices are too high because of (distribution, ads, mark-ups) |
- intermediaries imporant and have value - ads inform and brand - consumers don't understand cost of doing business |
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response to high-pressure selling |
selling involves building relationships with customers. high pressure or deceptive sellers damages those relationships |
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response to shady, harmful or unsafe products |
good marketers know there is no value in selling these products |
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response to planned obsolescence |
(outdated) - the result of a competitive market - thats why iphone break easily |
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consumerism |
the organized movement of citizens and government agencies toimprove the rights and power of buyers in relation to sellers. |
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traditional buyers rights |
- right not to buy a product thats offered for sale - right to expect product will be safe - right to expect product will perform as claimed many beleive power is on sellers side |
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advocates call for |
The right to be well informed about importantaspects of the product• The right to be protected against questionableproducts and marketing practices• The right to influence products and marketingpractices in ways that will improve the “quality oflife”• The right to consume now in a way that will preservethe world for future generations of consumers
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environmentalism |
is an organized movement of concernedcitizens, businesses, and government agencies toprotect and improve people’s living environment.
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environmental sustainability |
earning profits while helping save the planet |
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sense-of-mission marketing |
Define mission in broad socialterms rather than narrow productterms• PEDIGREE Brand makes gooddog The brand came up withthe tagline “Dogs rule.”
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consumer satisfaction/benefit diagram |
salutary products: low immediate satisfaction and high long-run consumer benefit deficient products: low satisfaction and low long-run benefit pleasing products: high satisfaction and low long-run consumer benefit desirable products: satisfaction and long-run benefits |
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sustainable company |
A sustainable company goes beyond caring for theneeds of today’s customers and has concern fortomorrow’s customers and the broader world.
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