Mh255 Final

Front 1

Company, suppliers, distributors, and customers who partner to better the system i.e. Palm Inc.

Back 1

Value-delivery network

Front 2

o set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user i.e. Dell’s personal selling

Back 2

marketing channel

Front 3

Cutting out the middleman(marketing intermediaries) and selling directly to consumers i.e. iTunes, Avon

Back 3

Disintermediation

Front 4

narrow product line, deep assortment i.e. the Gap, Sharper Image

Back 4

Specialty

Front 5

several product lines with separate departments i.e. Macy’s, Sears

Back 5

Department store:

Front 6

low cost & margin, self service operation, designed to satisfy customers total grocery and household needs i.e. Kroger, Safeway, Stop & Shop

Back 6

o Supermarket:

Front 7

located near residential areas, open long hours offering convenience products at slightly higher prices i.e. 7-Eleven, Stop-n-Go

Back 7

o Convenience store:

Front 8

: lower prices, low margins and high volumes i.e. Wal-Mart, target

Back 8

o Discount store

Front 9

sells merchandise at less-than-regular wholesale prices (leftover goods, overruns, irregulars obtained at reduced prices) i.e. factory outlets: Mikasa, independent OPR: TJ Maxx, warehouse clubs: Costco, BJ’s

Back 9

o Off-price retailers:

Front 10

aimed at meeting consumer’s total needs for food/nonfood items i.e. category killers: Best Buy, Staples, PetSmart, supercenters: Wal-Mart Supercenter, SuperTarget, hypermarkets:

Back 10

o Superstores:

Front 11

o Resistance to higher prices
o Demand for value-added services and cost-cutting measures
o More companies buying direct from suppliers; wholesalers going global
o Goal is to increase efficiency of whole-marketing channel

Back 11

trends in wholesaling

Front 12

: short term incentives to encourage the purchase of sale of a product or service

Back 12

o Sales Promotion

Front 13

direct connections with carefully targeted individual consumers to both obtain and immediate response and cultivate lasting customer relationships

Back 13

o Direct Marketing:

Front 14

attention – interest – desire – action

Back 14

designing a message

Front 15

: appeals and themes, depends on audience and aim [rational/emotional +/-, reoccurring themes, pros/cons of humor]

Back 15

o Message content

Front 16

draw conclusion or leave it to the audience? Strongest argument first or last? Onesided or twosided argument?

Back 16

o Message structure:

Front 17

: print, headline, copy, illustration, color, t.v., sound, product package, shape, color, size

Back 17

o Message format

Front 18

cultivating opinion leaders and getting them to spread information about a product or service to other in their communities

Back 18

o Buzz marketing:

Front 19

setting the promotion budget at the level management thinks the company can afford

Back 19

o Affordable:

Front 20

: setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

Back 20

o Percentage-of-sales

Front 21

setting the promotion budget to match competitors outlays

Back 21

o Competitive-parity:

Front 22

developing the promotion budget [defining specific objectives, determining tasks to meet objectives, estimating the cost of executing these tasks]

Back 22

o Objective-and-task:

Front 23

a promotion strategy that calls for using the sales force and trade promotion to push the product through the channels (retailers)

Back 23

o Push:

Front 24

a promotion strategy that calls for spending extensively on advertising and consumer promotion to make final consumers demand the product

Back 24

o Pull:

Front 25

: pros and cons of print, TV, internet, etc

Back 25

o Media Types

Front 26

for event/season, for continuity

Back 26

o Media Timing:

Front 27

cost per thousand, cost of creating ad for specific outlet source credibility

Back 27

o Media Vehicles:

Front 28

: how many times person in target market sees ad

Back 28

o Frequency

Front 29

qualitative value of exposure through a given medium

Back 29

o Impact:

Front 30

percentage of people in target market in given time period

Back 30

o Reach:

Front 31

: assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line

Back 31

o Territorial

Front 32

salespeople specialize in selling only to certain customer or industries

Back 32

o Customer:

Front 33

salespeople specialize in selling only a portion of the company’s products or line

Back 33

o Product:

Front 34

o Selling process
o Prospecting
o Pre-Approach
o Approach
o Presentation
o Handling Objections
o Closing Follow-Up

Back 34

personal selling process

Front 35

o + a highly targeted way of using a database to reach a target market and give it what you know it wants
o – all the junk mail your parents get, spam
o bases on psychographics, demographics, geography, past buying behavior etc.

Back 35

direct marketing

Front 36

organized collection of comprehensive date about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data

Back 36

customer database

Front 37

ways companies market products and customer relationships over the internet (i.e. websites, contests, promotions, web communities)

Back 37

online marketing

Front 38

operating only online without and brick-and-mortar market presence

Back 38

• Click-Only:

Front 39

traditional brick-and-mortar companies that have added online marketing to their operations

Back 39

• Clicks-and-Mortar:

Front 40

o Irritation, unfairness, deception, fraud, invasion of privacy

Back 40

public policy issues with direct marketing

Front 41

o Advantage created by a company by offering greater value than competitors offer i.e. WaMu

Back 41

competitive advantage

Front 42

o Identifying competitors
• Access objectives, strategy, strengths, weaknesses, reaction patterns

Back 42

identifying competitors

Front 43

a group of firms in an industry following the same or similar strategy, your core business or competitor group i.e. GE & Whirlpool

Back 43

• Strategic Group:

Front 44

: process of comparing the company’s products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance

Back 44

• Benchmarking

Front 45

o Cost leadership (Dell, Wal-Mart)
o Differentiation (IBM)
o Focus (Ritz Carlton)
o Operational Excellence (Wal-Mart, Southwest Airlines, WaMu)
o Product Leadership (Microsoft, Verizon)

Back 45

competitive strategies

Front 46

• expand total demand (baking soda)
• Protect market share ( Frito-Lay)
• Expand market share (McDonald’s healthy alternatives)

Back 46

market leader strategies

Front 47

• Full frontal attack (John Edwards)
• Indirect attack (Lowes)

Back 47

market challenger strategies

Front 48

• Price war (Kmart)
• Follow closely or at a distance

Back 48

market follower strategies

Front 49

• Market (specialized)
• Quality/price (extremely high end)
• Service (too small for big competitors to care about)

Back 49

market nicher strategies

Front 50

• Industrial structure
• Income distribution

Back 50

two factors that effect a countries attractiveness

Front 51

o Attitudes towards international buying, government bureaucracy, political stability, and monetary regulations
o i.e. India- import quotas, unstable government Singapore/Thailand- showers foreign businesses with incentives and favorable operating conditions

Back 51

political-legal environment

Front 52

o Knowing what different countries needs/wants are before entering the market

Back 52

cultural environment

Front 53

o major growth opportunity: if sales are decreasing at home
o ego: building a superbrand
o portfolio/risk management: if one fails, others are open in other countries

Back 53

why to go global