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Marketing test chapters 10, 11, 13, 14

Terms in this set (24)

Key process of supply chain management (8 of them, see below)
A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
customer relationship management process
The prioritization of a firm's marketing focus on different customer groups according to each group's long-term value to the company or supply chain; designed to identify and build relationships with good customers.
Customer service management
A multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced; designed to ensure that customer relationships remain strong.
Demand Management
The alignment of supply and demand throughout the supply chain to anticipate customer requirements at each level and create demand-related plans of action prior to actual customer purchasing behavior.
Order fulfillment
A supply chain management process that involves generating, filling, delivering, and providing on-the-spot service for customer orders.
Manufacturing flow
A process that ensures that firms in the supply chain have the resources they need
supplier relationship management
A supply chain management process that supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers
Product development and commercialization
The group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.
Returns Management
A process that enables firms to manage volumes of returned product efficiently, while minimizing costs and maximizing the value of the returned assets to the firms in the supply chain.
How business logistic functions impact the supply chain (from the slides)
The logistics function f the supply chain is responsible for the movement and delivery of goods and services into, through, and out of each firm in the supply chain network.

It consists of several interrelated and integrated logistical components:
Marketing channels
Marketing Channels facilitate the physical movement of goods through the supply chain representing "place" or "distribution" in the marketplace
Marketing Channel: A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
Overcoming discrepancies (From slides)
Temporal Discrepancy-A situation that occurs when a product is produced but a
customer is not ready to buy it.
(ex Christmas)

Spatial Discrepancy-The difference between the
location of a producer and the location of widely
scattered markets.
(Intermediary Distribution networks)

Discrepancy of quantity-The difference between the amount of product produced
and the amount an end user
wants to buy.
(storing and distribution)

Discrepancy of assortment-The lack of all the items a
customer needs to receive full satisfaction from a product or products.
(provide optimal assortments ex supermarkets)
Functions and activities of channel intermediarires
Retailer-A channel intermediary that
sells mainly to customers.

Merchant wholesaler-An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.

Agents and brokers-Wholesaling intermediaries who facilitate the sale of a product by representing channel members.
Channel intermediareis (above) perform channel functions
-Transactional Functions-
Contacting/Promotion
Negotiating
Risk Taking

Logistical
Functions-
Physically distributing
Storing
Sorting

Facilitating Functions-
Researching
Financing
Direct channels
Producers use the direct channel to sell directly to consumers.
It includes telemarketing, mail order, and catalog shopping and forms of electronic retailing.
Level of distribution intensity
-Intensive distribution is distribution aimed at having a product available in every outlet where target consumers might want to buy it.
Many convenience goods and supplies have intensive distribution.
Low-value, frequently purchased products may require a long channel of distribution.

-Selective distribution is distribution achieved by screening dealers to eliminate all but a few in any single area.
Selective distribution strategies often hinge on a manufacturer's desire to maintain superior product image to be able to charge a premium price.
Shopping goods usually have selective distribution, as do some specialty products.

-The most restrictive form of distribution, exclusive distribution, entails establishing one or a few dealers within a given area.
Consumer specialty goods, a few shopping goods, and major industrial equipment use exclusive distribution.
This limited distribution aids in establishing an image of exclusiveness for the product.
Categories of new products
New‑to‑the‑world products are also called discontinuous innovations. The product category itself is new.
New product lines are products the firm has not offered in the past that allow it to enter an established market.
Additions to existing product lines are new products that supplement a firm's established line.
Improvements or revisions of existing products result in new products.
Repositioned products are existing products that are targeted at new markets or market segments.
Lower-priced products are products that provide similar performance to competing brands at a lower cost.
Importance of new products: Categories
...
New products development process:Know the steps
New-Product Strategy
Idea Generation
Idea Screening
Business Analysis
Development
Test Marketing
Commercialization
New Product
The spread of new products:5 categories of adopters
Innovators are eager to try new ideas and products
have higher incomes, and are better educated than non-innovators,
represent the first 2.5 percent of all those who will adopt.

Early adopters are much more reliant on group norms, are oriented to the local community, and tend to be opinion leaders.
represent the next 13.5 percent to adopt the product.

The early majority, collect more information and evaluate more brands than do early adopters.
They rely on friends, neighbors, and opinion leaders for information and norms.
the next 34 percent to adopt,

The late majority, do so because most of their friends have already done so. For them, adoption is the result of pressure to conform.
This group is older than the others and tends to be below average in income and education.
the next 34 percent to adopt,

Laggards, are similar to innovators in that they do not rely on the norms of the group. They are independent, however, because they are tradition-bound.
Laggards tend to have the lowest socioeconomic status, are suspicious of new products, and are alienated from a rapidly advancing society.
the final 16 percent to adopt,
Product life cycle stages
Life cycle of products
What is product?
Everything, both favorable and unfavorable, that a person receives in an exchange.
Tangible Good
Service
Idea
Types of consumer products
A convenience product is an inexpensive item that requires little shopping effort, is purchased regularly, usually with little planning, and requires wide distribution.

A shopping product requires comparison shopping, because it is usually more expensive than a convenience product and is found in fewer stores.
Consumers usually compare items across brands or stores.
2 TYPES-Homogeneous shopping products are products that consumers see as being basically the same.
consumers shop for the lowest price.
Heterogeneous shopping products are seen by consumers to differ in quality, style, suitability, and lifestyle compatibility.
Comparisons between heterogeneous shopping products are often quite difficult because they may have unique features and different levels of quality and price.
Finding the brand for me - highly individualized

-A specialty product is a particular item that consumers search extensively for and are very reluctant to accept substitutes.
These products may be quite expensive, and often distribution is very limited.

An unsought product is a product unknown to the potential buyer or a known product that the buyer does not actively seek.
Unsought products require aggressive personal selling and highly persuasive advertising.
Branding
Branding is the major tool marketers have to distinguish their products from those of the competition.
A brand is a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products.

Benefits-
Product Identification
Repeat Sales
New Product Sales

Strategies-Private brands, manufacturers brands, captive brands
Individual brands and family brands

Trademarks-A Trademark is the exclusive right to use a brand.
Many parts of a brand and associated symbols qualify for trademark protection.

Trademark right comes from use rather than registration.

The mark has to be continuously protected.

To renew - Rights continue for as long as the mark is used.
Typically if not used in 2 yrs is then considered abandoned

Trademark law applies to the online world.
Vocab
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