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139 Cards in this Set
- Front
- Back
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Place |
-making products/services available for use to the final customer -how a product gets to a customer, where it is sold |
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Distribution |
the process that makes the product available to consumers and business customers and places them where they can be purchased |
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marketing channel |
a collection of companies responsible for getting products from producers to consumers |
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players in a marketing channel |
1. manufacturer 2. brokers 3. retail 4. wholesalers |
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Qualities of a perfect manufacturer |
1. provides a desirable amount/assortment of products 2. builds demand through advertising 3. provides managerial assistance if needed 4. honours product warranties 5. provides installation and repair services |
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Qualities of the perfect Middle Man |
1. has access to the markets you want 2. has own effective promotional program 3. provides good services to customers 4. does not demand too much support from manufacturer 5. pays bills on time |
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benefits of channel cooperation |
1. speeds up inventory replacement 2. helps to achieve ideal market exposure 3. reduces costs 4. improves service |
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intensive distribution |
a form of distribution aimed at having a product available in every outlet where a target customer may want to buy it |
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selective distribution |
a form of distribution achieved by screening dealers to eliminate all but a few in an area |
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exclusive distribution |
a form a distribution that involves only one or a few dealers in an area |
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improvement of channel cooperation |
1. communication between channel members 2. establishing clearly defined roles |
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Channel Conflict |
arises when: 1. lack of communication leads to lack of coordination 2. diversification of intermediaries - new channels for manufacturers - intermediaries broadening product lines and brands 3. channel members circumventing other member's roles |
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4 types of marketing channels |
a) producer - consumer b) producer - retailer - consumer c) producer - wholesaler - retailer - consumer d) producer - agent/broker - wholesaler - retailer - consumer |
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direct channel |
manufacturer to consumer |
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indirect channel |
producer to intermediary to consumer |
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traditional channel |
manufacturer to wholesaler to retailer to consumer |
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corporate channel |
same as traditional but owned by one company |
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contractual channel |
tightly coordinated by formal procedures and pledges of on going exchange -franchises -wholesaler sponsored voluntary chain -retail cooperatives |
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administered channel |
channel members operate based on agreed upon plans -has channel captain: dominant channel member exerting its power |
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retailing |
a channel intermediary that sells products from the channel system to the end customer |
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Elements of retailing |
the final activities needed to place the merchandise made elsewhere into the hands of the consumer or to provide services to customers |
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Value added by retailing |
1. provide convienence to customer 2. provide convienence to manufacturers and wholesalers 3. merchandise presentation 4. information for and from the customer |
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Store Image Model |
1. atmospherics 2. store design 3. the actors 4. pricing policy |
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atmospherics |
-physical characteristics and amenities of a store -how many levels -stand alone or attached -parking lot -types of products -staff room -personal shopping |
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store design |
the store layout -fixture type -merchandise density -music, colours, lighting the look and feel |
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the actors: store personnel |
- should be appropriate for the store -age range -education -set of skills -how they are dressed |
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pricing policy under store image model |
-high end -low end -visibile -discrete a culmination of the other decisions from the model |
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marketing communication |
to reach customers, it is essential to get to know them and speak their language - to communicate well
the term now used most frequently to describe the vital roles of informing consumers and customers about the relative value of products and developing trust and other relational bonds that facilitate on going exchange relationships |
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integrated marketing communications |
coordinating all communication to assure the consistency of messages at every contact point where a company meets the target customer |
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Elements of success for IMC |
1. understanding the target market 2. analyzing the trends in the market place (technology advances, external environments) 3. understanding the importance of communication (if you don't communicate the right thing the value won't sell) |
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source |
organization putting the message out there whoever is developing the communications piece |
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Encoding |
-elements put into promotional piece that relates to the target market -language, keywords, celebrities, situations, music |
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Message Channel |
1) the message " buy our new beer" "nike cares about womens safety" 2) the medium or "media" - what form - tv, radio, sales rep, event, coupon... etc |
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Decoding |
part of the message understood by receiver - language used, humour |
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receiver |
anyone that can decode any part of the message - want it to be primarily the target market |
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noise |
distracts receiver from getting the message and can be internal or external |
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external noise |
outside of message that distracts |
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internal noise |
things that happen within the message that can distract |
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most important element of communications process model |
Encoding |
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common frame of reference |
complete over lap between encoding and decoding |
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communications plan |
a framework for developing, implementing and controlling the firm's communications activities |
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communications plan process |
1. create target market 2. establish communications objectives 3. determine communications strategies 4. design communications mix 5. create and evaluate |
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Communications objectives |
1. inform 2. awareness 3. trial 4. loyalty |
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Communication objective inform |
increases the consumers desire to learn more about the product/ brand - people might be aware but don't know much about the product - putting info out there so they can learn more |
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Comm. objective awareness |
-garner the attention of consumers through memorable messages or approach - awareness of idea, getting attention, getting the word out |
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Comm. objective trial |
encourages the consumer to purchase the product through incentives or testimonial -customers who have never bought before |
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Comm. objective loyalty |
reinforce the relationship with the customer to continue buying in the future -consumers have bought before and want them to continue to buy |
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Communications strategy |
1. (A)Symmetry 2. Communication 1/2 way 3. promotion push/pull |
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Asymmetrical |
influence and persuade based on only positive aspects |
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Symmetrical |
provide a balanced view of product/service -buckleys "tastes bad but works great" -can be government mandated -used to build trust |
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Push strategy |
relies on marketing channel to push products to consumer- intermediaries like retailers |
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pull strategy |
relies on direct communication with consumer to pull product through distribution channel |
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communications mix |
the elements that are controlled by the marketer to create IMC campaign |
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communications mix elements |
1. personal selling 2. advertising 3. public relations 4. sales promotions 5. online/social media |
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advertising |
any paid form of non-personal communication - about an organization, good or service -must have identified sponsor -targeting to a large group of people - high reach low CPM -limited message and expensive |
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Advertising objectives |
1. to persuade 2. remind 3. to inform |
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advertising objective to inform |
-new products or uses -price changes -building image
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advertising objective to persuade |
-building brand preference -encouraging switching -product attributes - customers are familiar with your product and your competitors -persuade yours is superior and how you provide better value |
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advertising objective to remind |
-product is at maturity -product may be needed -where to buy -maintaining awareness |
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Advertising appeal |
the central idea of an ad, the approach used to attract attention of consumers |
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Rational Appeal |
practical and functional needs "gets clothes cleaner" |
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Emotional Appeal |
social and psychological needs -sensory -social -ego satisfaction |
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Execution styles |
how you communicate emotion or rationale |
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Slice of life execution |
-everyday situation -product makes life easier -swifer, swiffer wet jet |
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lifestyle execution |
lifestyle of consumer - what you do to make life more enjoyable |
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straight sell execution |
-straight to the point -mostly b2b
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musical execution |
jingles, famililar music |
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technical expertise execution |
expert talking about product dentist about toothpaste |
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scientific evidence execution |
statistics |
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fantasy execution |
product in a fantasy situation -centaur for old spice |
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testimonial evidence execution |
someone who has used the product and how they liked it |
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personality symbol execution |
celebrity, actor, tony the tiger, lucky charms leprichon |
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advertising critique |
1. target audience 2. advertising objectives 3. communications strategy 4. communications tactics 5. feedback 6. creative execution
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sales promotion |
short term incentive to encourage purchase of a product or service, -must be planned in advance -must not become too predictable |
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sales promotions targeted towards consumers |
consumer promotions |
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sales promotions targeted towards businesses |
trade promotions |
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Consumer Promotions |
1. coupons 2. contests 3. sweepstakes 4. premiums 5. rebates 6. refferal gifts 7. trade in allowances 8. patronage/loyalty |
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coupon |
1. must have end date 2. encourages trial for people unsure of your product 3. get rid of excess inventory |
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contest |
-submit an entry -some skill or effort required -proof of purchase - chance to win something -encourage repeat purchase -way to get contact information |
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sweepstakes |
-no purchase required -submit a name -little effort and no purchase -up to chance or luck -great for building data base |
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Premium |
-gift with purchase -bundle weak product with a stronger one -encourage trial -people love free things |
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Rebates |
-reimbursement after full price purchase -money sent back to buyer - "instant rebates" not rebates just discounts |
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Referal gifts |
-attract new customers -provide incentive for word of mouth -both parties receive discount or gift -ex gym memberships |
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Trade- allowances |
-discount based on used product -more awareness of recycling -save our society popcorn trend |
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patronage/loyalty |
a free product or gift based on short term loyalty ex. sephora points |
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Trade promotions |
1. buying allowances 2. free goods 3. merchandise allowances 4. cooperative advertising 5. sales contests 6. push money |
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buying allowances |
-temporary price reduction for resellers for purchase of specified quantities of a product |
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free goods |
offer of extra quantities to intermediaries -buy 2m units get 1m free -encourage them to keep buying your product |
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merchandise allowance |
reimbursement of a retailer for extra support or feature -put us at eye level for discount |
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cooperative advertising |
-manufacturer pays % of retailer advertising expense |
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sales contests |
-induce dealers to increase sales results with prizes -servers -sell most of a specified brand for money or prize |
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push money |
bonus for selling a specific manufacturers product - straight up heres money sell our product |
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Personal selling |
-direct contact with the customer -most flexible element -can change marketing message easily -can change objectives easily -> awareness to inform -immediate feedback is key |
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Challenges of personal selling |
-high cost per contact (high CPM) -consistency, depends on employees skills -credibility - to mitigate remove commission, hire educated people, proper training -
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Personal selling channels |
1. over the counter selling 2. field selling 3. network marketing 4. inside selling |
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over the counter selling |
customers visit sellers at a retailer or wholesaler operation -staff not always properly trained - companies must focus on training |
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field selling |
sales presentations made face to face -requires technical expertise -need to persuade -mostly b2b -can be separated geographically, based on product, by customer type |
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net work marketing |
selling to friends and family - beware of pyramid scam |
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inside selling |
all selling done on centralized location -phone, mail, online -difficult to staff and train -from canned script to more consultive -can be inbound -recieving sales calls -can be outbound -initiating sales calls -telemarketing - national do not call list |
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public relations |
-originates within the company -identifies important areas of concern -makes connections to earn public understanding and acceptance |
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sources of public relations |
- new product publicity -consumer education -sponsorship -product placement |
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product placement |
paying for product to appear in shows, movies, music videos -people now skipping commercials so very important -paid to be in another media source -also common in gaming |
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press release |
otherwise known as news release, document containing all essential elements of the story, try to demonstrate news worthyness |
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guidelines for a press release |
1. no more than 1 page (350 words max) 2. titled "for immediate release" 3. fate and location 4. start with quote 5. 5 w's 6. provide contact info |
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publicity |
unpaid placement of news about a firm in the media may or may not originate from the company
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crisis management |
1. respond quickly and disclose completely 2. communicate any actions including recalls 3. make noticeable changes for the future |
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Social marketing |
the use of social media as a communications channel to deliver marketing messages |
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social media |
any tool that is used to connect with customers using the internet as a medium ex. websites, blogs, social network, mobile marketing, search engines |
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aspects of marketing social media influences |
1. marketing research - shape 4 Ps who to target 2. product (branding) - create more positive image 3. retailing |
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marketing strategy |
a company's marketing strategy must align with company strategy and direction
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influences on marketing strategy |
1. company mission/vision values 2. customers 3. external market |
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elements of mission statement |
1. tells what business 2. who customers are 3. what customers value
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what does SMART stand for |
Specific Measurable Achievable Realistic Time line |
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other elements considered for marketing strategy |
1. market segment 2. the 4Ps. |
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External Marketing environments |
1. political/legal environment 2. competitive environment 3. socio cultural environment 4. economic environment 5. technological environment
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political/legal environment |
-politics -legal issues -regulations either self, industry or government regulated |
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competitive environment |
direct vs indirect competitive strategies |
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sociocultural environment |
-cultural trends: faith popcorn trends -cultural shifts -"going green" -social media promotions |
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Economic Environment |
macro economic shifts - income |
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Technological environment |
electronic distrobution -social media -innovation and new product development |
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Product layer model |
1. core product: features/attributes 2. functional product: how it functions 3. augmented product: augmentation done to the basic product 4. potential product: the true solution the customer gets from the product |
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line extension |
extending brand names colours, forms, flavours
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brand extension |
leveraging brand through new products |
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rate of adoption factors |
1. complexity 2. compatibility 3. relative advantage 4. observability 5. trialability |
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4 I's of service model |
1. intangibility 2. inseperabilty 3. inconsistency 4. inventory |
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price |
the amount charged for a product or service -helps determine market share and profitability -only p that produces revenue - price and market share have inverse relationship
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Pricing approaches |
1. cost-based pricing 2. market bearing |
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cost-based pricing |
price set on -cost of production -cost of distrobution -fair rate of return
- costs include variable and fixed costs |
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cost-plus pricing |
adding a % or $ amount |
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break even analysis |
analyzing the relationship between revenue and cost to determine profitability - profit comes from any point beyond BEP
fixed costs / (selling price - variable costs) |
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margin |
the % margin is the % of the final selling price that is profit
selling = cost / 1 - margin |
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markup |
what % of the cost price you add to get the selling price |
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disadvantages of cost based approach |
1. doesn't take into account competitors 2. long term goals are not taken into account 3. not taking account for consumer demand 4. not taking account for the economy |
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marketing bearing pricing |
-looks externally to determine price -takes into consideration: - consumer demand - external market forces - competition requires marketing approach - qualitative vs. quantitive |
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pricing strategies |
1. skimming 2. parity 3. penetration |
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Price skimming |
- price higher than competition - product highly desirable offers unique benefits -luxury brands -new to market place |
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parity pricing |
-price same as competition -goal is to find a range of consumers that would find price appropriate -not necessarily reflective of cost and demand reasons: - survival for small firms, competing with brands, staple product, substitutes, result of government regulation |
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Penetration pricing |
- price lower than competition reasons: boots sales, increase market share, rid excess inventory, phase out current product |
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pricing considerations |
1. corporate objectives - target share of market - to cover costs 2. consumers -expected vs. value - price/ quality relationship 3. competition - positioning -direct vs indirect |
