Intro. to Marketing - Test #3
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Created by:
zunigalaina on January 22, 2012
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Professor Moser - WT 2012
Chapters 13/15/16/17/18
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125 terms
Terms | Definitions |
|---|---|
 Retailing | includes all the activities in selling products of services directly to final consumers for their personal, non-business use |
| Retailers | businesses whose sales come primarily from retailing |
| Types of Retailers | - Self Service (ex: gas station) - Limited Service (ex: Home Depot) - Full Service (ex: Mercedes Benz Dealership) |
| Speciality Stores | Narrow product line with deep assortment |
| Department Stores | Wide variety of product lines (ex: Home & Garden, Sears, etc) |
| Convenience Stores | Limited line of high-turnover goods (ex:7-Eleven, Wa-Wa, etc) |
| Superstores | Non-food goods (ex: Wal-Mart, Costco, etc) |
| Category Fillers | Deep in category with sales staff (ex: Barnes/Noble, Amazon.com, etc) |
| Relative Price Retailers | - Discount Stores - Factory Outlets - Off Price Retailers - Warehouse Clubs |
| 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 |
| Voluntary Chains | wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising |
| Retailer Cooperatives | group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion effort (ex: Ace Hardware, Associated Grocers, etc) |
| Franchise Organizations | based on some unique product or service; on a method of doing good business; or on the trade name, good will, or patent that the franchisor has developed (ex: Holiday Inn) |
| Segmentation, Targeting, Differentiation, and Positioning involves.... | the definition and profile of the market so the other retail marketing decisions can be made |
| Product Assortment and Service Decisions | - Product Assortment - Services Mix - Store Atmosphere |
| Price Policy | must fit the target market and positioning, product and service assortment, and competition; high markup on lower volume, low markup on higher volume |
| High-low Pricing | involves charging higher prices on an everyday basis, coupled with frequent sales and other price promotions |
| Everyday Low Price | (EDLP) involves charging constant, everyday low prices with few sales or discounts |
| Promotion Decision | Advertising, Personal Selling, Sales Promotion, Public Relations, Direct Marketing |
| Central Business Districts | located in CITIES and include department and specialty stores, banks, and movie theaters |
| Shopping Center | group of retail businesses planned, developed, owned, and managed as a unit (ex: Regional Shopping Centers, Community Shopping Centers, Neighborhood Shopping Centers, Power Center, Lifestyle Centers) |
| Wheel-of-Retailing Concept | states that many new types of retailing forms begin as low-margin, low-price, low-status operations, and challenge established retailers; as they succeed they upgrade their facilities and offer more services, increasing their costs and forcing them to increase prices, eventually becoming the retailers they replaced. |
| Growth of Non-Store Retailing includes.... | - Mail Order - Television - Phone - Online |
| Retail Convergence | involves the merging of consumers, producers, prices, and retailers, creating greater competition for retailers and greater difficulty differentiating offerings |
| The Rise of Mega-retailers | involved the rise of mass merchandisers and specialty superstores, the formation of vertical marketing systems, and a rash of retail mergers and acquisitions; superior information systems, buying power, large selections |
| Growing Importance of Retail Technology | provides better forecasts, inventory control, electronic ordering, transfer of information, scanning, online transaction processing, improved merchandise handling systems, and the ability to connect with customers |
| Wholesaling includes..... | all the activities involved in selling goods and services to those buying for resale or business use |
| Selling and Promoting | involves the wholesaler's sales force helping the manufacturer reach as many smaller customers at lower cost |
| Buying Assortment | building involves the selection of items and building of assortments needed by their customers saving the customers work |
| Bulk Breaking | type of wholesale; involves the wholesaler buying in larger quantity and breaking into smaller lots for its customers |
| Warehousing | type of wholesale; involves the wholesaler holding inventory. reducing its customers' inventory cost and risk |
| Transportation | involves the wholesaler providing quick delivery due to its proximity to the buyer |
| Financing | involves the wholesaler providing credit and financing suppliers by ordering earlier and paying on time |
| Risk Bearing | involves the wholesaler absorbing risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence |
| Market Information | involves the wholesaler providing information to suppliers and customers about competitions, new products, and price developments |
| Management Services and Advice | involves wholesalers helping retailers train their sales clerks, improve store layouts, and set up accounting and inventory control systems |
| Types of Wholesalers | 1. Merchant Wholesalers 2. Agents & Brokers 3. Manufacturers' Sales Branches & Offices |
| Merchant Wholesalers | the largest group of wholesalers and include: - full service wholesalers who provide a full set of services - limited service wholesalers who provide few services and specialized functions |
| Brokers & Agents | DO NOT TAKE TITLE - perform a few functions, and specialize by product line or customer type; brokers bring buyers and sellers together and assist in negotiations; agents represent buyers or sellers |
| Manufacturers' Sales Branches & Offices | a form of wholesaling by sellers or buyers themselves rather than through independent wholesalers |
| Target Market and Positioning Decisions.... | - Size of Customer - Type of Customer - Need for Service |
| Marketing Mix Decisions.... | - Product - Price - Promotion - Place |
| Challenges in Wholesaling.... | - Resistance to price increases - Lack of suppliers - Changing customer needs - Adding value by increasing efficiency and effectiveness |
| Advertising | any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor |
| Advertising Objective | specific communication task to be accomplished with a specific target audience during a specific time |
| Informative Advertising | used when introducing a new product category; the objective is to build primary demand |
| Comparative Advertising | directly or indirectly compares the brand with once or more other brands |
| Persuasive Advertising | important with increased competition to build selective demand |
| Reminder Advertising | important with mature products to help maintain customer relationships and keep customers thinking about the product |
| Advertising Strategy | the strategy by which the company accomplishes its advertising objectives and consists of: creating advertising messages, and selecting advertising media |
| Advertisements need to break through the clutter by.... | - Gaining attention - Communicating well |
| Advertisements need to be better.... | planned, more imaginative, more entertaining, and more rewarding to consumers |
| Creating the Advertising Message | Message Strategy - Creative Concept - Message Execution |
| Message Strategy | the general message that will be communicated to consumers; identifies consumer benefits |
| Creative Concept | the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign; Characteristics of the appeals include - meaningful, believable, and distinctive |
| Message Execution | when the advertiser turns the big idea into an actual ad execution that will capture the target market's attention and interest; the creative team must find the best approach, style, tone, words, and format for executing the message |
| Execution Styles in Advertising | Slice of Life, Lifestyle, Fantasy, Mood or Image, Musical, Personality Symbol, Technical Expertise, Scientific Evidence, Testimonial or Endorsement |
| Major Steps in Selecting Advertising Media.... | - Deciding on reach, frequency, impact - Selecting media vehicles - Deciding on media timing |
| Reach | the measure of the % of people in the target market who are exposed to the ad campaign during a given period of time |
| Frequency | a measure of how many times the average person in the target market is exposed to the message |
| Impact | the qualitative value of a message exposure through a given medium |
| Selecting Media Vehicles | involves decisions presenting the media effectively and efficiently to the target customer and must consider the message's - impact, effectiveness, cost |
| Narrowcasting | focuses the message on selected market segments; lower costs, targets for effectively, engages customers better |
| When deciding on media timing, the planner must consider..... | - Seasonality - Pattern of Advertising |
| Return on Advertising Investment | the net return on advertising investment divided by the costs of the advertising investment |
| Public Relations | involves 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; USED TO PROMOTE PRODUCT, PEOPLE IDEAS, AND ACTIVITIES |
| Public Relation's Department Functions Include.... | - Press relations or press agency - Product publicity - Public affairs - Lobbying - Investor relations - Development |
| Press Relations or Press Agency | involves the creation and placing of newsworthy information to attract attention to a person, product, or service |
| Product Publicity | involves publicizing specific products |
| Public Affairs | involves building and maintaining national or local community relations |
| Lobbying | involves building and maintaining relations with legislators and government officials to influence legislation and regulation |
| Investor Relations | involves maintaining relationships with shareholders and others in the financial community |
| Development | involves public relations with donors or members of non-profit organizations to gain financial or volunteer support |
| The Role and Impact of Public Relations | - Lower cost than advertising - Stronger impact on public awareness than advertising |
| Major Public Relation Tools | News, Speeches, Special Events, Written Materials, Corporate Identity Materials, Public Service Activities, Buzz Marketing, Social Networking, Internet |
| Personal Selling | the interpersonal part of the promotion mix and can include: face-to-face communications, telephone communication, video or web conferencing; the most expensive, but most effective type of selling; transaction oriented to close a specific sale with a specific customer; LONG TERM GOAL IS TO DEVELOP MUTUALLY PROFITABLE RELATIONSHIP |
| Salespeople | customer-drive strategy; an effective link between the company and its customers to produce customers to produce customer value and company profit by: representing the company to customers, representing customers to the company, working closely with marketing; ONE OF THE COMPANY'S MOST PRODUCTIVE AND EXPENSIVE ASSETS |
| Sales Force Management | the analysis, planning, implementation, and control of sales force activities |
| Designing Sales Force Structure | - Territorial Sales Force - Product Sales Force - Customer Sales Force - Complex Sales Force |
| Territorial Sales Force Structure | refers to a structure where each salesperson is assigned an exclusive geographic area and sells the company's full line of products and services to all customers in that territory; defines salesperson's job, fixes accountability, lowers sales expenses, improves relationship building and selling effectiveness |
| Customer Sales Force | structure refers to a structure where each salesperson sells along customer or industry lines; improves customer relationships |
| Complex Sales Force | structure refers to a structure where a wide variety of products is sold to many types of customers over a broad geographic area and combines several types of sales force structures |
| Workload Approach | sales forces size refers to grouping accounts into different classes to determine the number of salespeople needed |
| Outside Salesperson | call on customers in the field (ex: Knock on doors...) |
| Inside Salespeople | conduct business from their offices and often provide support for the outside salespeople (ex: Phone calls) |
| Team Selling | used to service large, complex accounts |
| Salesperson Compensation Based On..... | - Fixed Amounts - Variable Accounts - Expenses - Fringe Benefits |
| The goal of the supervisor is to.... | help the salesperson work smart by doing the right things in the right ways |
| The goal of motivation is to... | encourage salespeople to work hard and energetically towards sales force goals |
| Major Tools to Support Salespeople | - Training - Sales Meeting - Live Sales Presentations - Servicing Accounts |
| Sales morale and performance can be increased through.... | - Organizational climate - Sales quotas - Positive incentives |
| Evaluating Salespeople and Sales-Force Performance | - Sales Reports - Call Reports - Expense Reports |
| The goal of the personal selling process is to.... | GET NEW CUSTOMERS AND OBTAIN ORDERS FROM THEM |
| Personal Selling Process | 1. Prospecting 2. Qualifying 3. Pre-approach 4. Approach 5. Presentation 6. Handling Objectives 7. Closing 8. Follow-up |
| Prospecting | identifies qualified potential customers through referrals from customers, suppliers, dealers, internet |
| Qualifying | identifying good customers and screening out poor ones by looking at financial ability, volume of business, needs, location, and growth potential |
| Pre-approach | the process of learning as much as possible about a prospect, including needs, who is involved in the buying, and the characteristics and styles of the buyers |
| Approach | the process where the salesperson meets and greets the buyer and gets the relationship off to a good start and involves and salesperson's appearance, opening lines, and follow-up remarks |
| The most important attribute for the salesperson is to.... | LISTEN!!!! |
| Presentation | when the salesperson tells the product story to the buyer, presenting customer benefits and showing how the product solves the customer's problems |
| Handling Objectives | the process where salespeople resolve problems that are logical, psychological, or unspoken |
| Closing | the process where salespeople should recognize signals from the buyer - including physical actions, comments, and questions - to close the sale |
| Follow-up | the last step in which the salesperson follows up after the sale to ensure customer satisfaction and repeat business |
| Sales Promotion | refers to the SHORT-TERM INCENTIVES to encourage purchases or sales of a product/service; types of promotions include: consumer promotions, trade promotions, sales force promotions |
| Sales Promotion Objectives include using.... | - CONSUMER PROMOTIONS - TRADE PROMOTIONS - SALES FORCE PROMOTIONS |
| Major Sales Promotion Tools | Samples, Coupons, Cash Refunds, Price Packs, Premiums, Advertising Specialties, Patronage Rewards, Point-of-Purchase Displays, Demonstrations, Contests, Sweepstakes, Games |
| Major Trade Promotion Tools | Discount, Allowance, Free Goods, Specialty Advertising |
| Business Promotion Tools | Conventions, Sales Contests |
| Developing the Sales Promotion Program | - Size of the incentive - Conditions for participation - Promote and distribute the program - Length of the program - Evaluation of the program |
| Direct Marketing | a marketing channel without intermediaries; an element of the promotion mix; fastest-growing form of marketing |
| Benefits to Buyers | - Convenience - Ready access to many products - Access to comparative information about companies, products, and competitors - Interactive and immediate |
| Benefits to Sellers | - Tool to build customer relationships - Low-cost, efficient, fast alternative to reach markets - Flexible - access to buyers not reachable through other channels |
| Customer Database | an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data |
| Forms of Direct Marketing | Personal Selling, Direct-mail, Catalog, Telephone, Direct-Response Television, Kiosk, Digital, Online |
| Direct-Mail Marketing | an offer, announcement, reminder, or other item to a person at a particular address; personalized, easy to measure, costs more than mass media, and provides better results than mass media |
| Catalog Direct Marketing | involves printed and Web-based catalogs; lower cost than printed, unlimited amount of merchandise, real-time advertising, interactive content, and promotional features. |
| Telephone Direct Marketing | involves using the telephone to sell directly to consumers and business customers |
| Outbound v. Inbound Telephone Marketing | Outbound: sells DIRECTLY to consumers/business Inbound: uses toll-free #'s to receive orders from television/print ads/direct mail/catalogs. |
| Direct Response Television Marketing | (DRTV) marketing involves 60-120 second ads that describe the products or give customers a toll-free # or Web site to purchase (ex: 30 minute infomercials, Home Shopping Channel) LESS EXPENSIVE THAN OTHER FORMS OF PROMOTION AND EASIER TO TRACK RESULTS |
| Digital Direct Marketing | Mobile phone marketing, Podcasts, Vodcasts, Interactive TV |
| Mobile Phone Marketing includes.... | Ring-tone giveaways, Mobile games, Ad-Supported content, Contests and sweepstakes |
| Podcasts and Vodcasts | downloading or audio and video files via the Internet to a handheld device such as a PDA or iPod, and listening to them at the consumer's convenience |
| Interactive TV | lets viewers interact with television programming and advertising using their remote controls and provides marketers with an interactive and involving means to reach targeted audiences |
| Internet | a vast public web of computer networks that connects users if all types around the world to each other and to a large information repository |
| Product Sales Force | structure refers to a structure where each salesperson sells along PRODUCT lines; improves product knowledge, can lead to territorial conflicts |
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