Exam 11. _______refers to a situation in which the purchase reorders the same goods or service without looking for new info

ANS: Straight rebuy

2. A new-buy situation refers to the: ANS: purchase of a product or service when a new demand arises

3. Definition of a gatekeeperANS: the member of the buying center who regulates the flow of info

4. The Mclaren mp4-12c illustrates the challenges associated with_____ANS: developing a national competitive

5. Caterpillar uses completed drivetrain and lots of other technical equipment produced by other organizations inits manufacturing. Caterpillar is______

ANS: an OEM

6. Keiretsu is ANS: a type of strategic alliance commonly found in Japan

7. Business marketing does NOT include goods and services thatANS: are used for personal consumption

8. Which of the following is true?ANS: apple has made some pricing changes to the ipod to compete favorably with zune

9. If an advertiser wanted to createads for a restaurant that stimulates the self- actualization motivation it would create adds that______

ANS: indicate eating there is what you “earned and deserve”

10. Maslow’s hierarchy on needs is:ANS: Physiological, safety, sociological, esteem and self actualization

11. Reference groups serve as sources of information and influenceANS: perceptions

12. Which statement about culture as an influence on consumer buying behavior is true?ANS: language is an important aspect of culture

13. A subculture is:ANS:

14. A specific code of conduct that is personally or socially preferable to an alternative mode of conduct is________.

ANS: Cultural values

15. In Japan mothers feed their babies frozen sardines. In the US mothers don’t eat that themselves and would never feed it to their children. This is a difference in____.

ANS: Culture

16. Culture play an important role in shaping and communicating:ANS: Values

17. Market managers use in store promotion to stimulate the sale of______.ANS: Low involvement products

18. And item is an high involvement product if___ANS: It requires substantial financial investment.

19. When consumer purchase unfamiliar or expensive products they use____.ANS: extensive decision making

20. This is an item bought using routine response behavior_____.ANS: Toilet paper

21. Involvement definition:ANS:

22. People are more satisfied with a purchase if:ANS: they obtain additional information that reinforces their purchase

23. Warren loves the beach but hates hurricanes. He starts looking for a beach house in an area that doesn’t get hurricanes. These places are Warren’s:

ANS: Evoked set

24. An external information search is important when____.ANS: there are high costs with incorrect decisions

25. The best example of an internal stimulus that would create need recognition is______.ANS: a headache

26. When making a purchase decision, the reason we recognize and respond to distinctive images like the lettering used on Coke cans, the nike swoosh etc. is____.

ANS: consumer behavior

27. Several companies develop body was exclusively for men (TRUE)

28. What is not a component of the competitive advantage of nations?ANS: customer standardization

29. What has the least risks when entering the global market?ANS: exporting

30. Definiton of Tarrif:

31. When Disney started promoting in Muslim countries it took out Piglet because any form of pork is unclean this is due to:

Culture

32. Some people fear world trade because:ANS: some people lose jobs to production going abroad

33. What is true about global marketing?ANS: ALL (you market to the world, some of the toughest US competition is from

abroad, you need a global vision, it can be lucrative)

34. Gap modified its product line after they found that men and women were different in the way they shop for jeans. Gap_____

ANS: discovered consumer needs.

35. Born between 1946 and 1964:ANS: baby boomers

36. What generation is attached to technology, family and the latest fashion trends?ANS: Gen y

37. 8-14 year old girls are the growing market for high end shoes, but doctors are finding that they have food problems than normally are found in 50 year old women. This demographic of girls is __________.

ANS: tweens

38.Definition of demography:

39. Core values of a lifestyle in the US:ANS: self sufficiency, upward mobility, conformity

40. Environmental factors concerned with changes in peoples values, lifestyles and family roles_____.

ANS: Social factors

41. _____ Must be continually monitored by marketing managers.ANS: external environment

42. Creation of a code of ethics:ANS: ALL (helps avoid employee confusion, helps with internal control, discussion, helps

define what’s acceptable)

43. Does NOT influence ethical decision makingANS: level of multiculturalism

44. Ethics:(moral principles that govern, standard of behavior by which we judge, morals are the

foundation of ethics, they are situation specific and time oriented)

45. Pyramid of social responsibilities includes all except:ANS: cultural responsibility (YES to economic, ethical, legal and philanthropy)

46. A new slogan is a change in the ____ element of the marketing mix. ANS: promotion

47. There are too many apartments in ATL so they reduce the rent to fill apartments. What strategy is this?

ANS: pricing

48. Promotional strategy of marketing mix is:ANS: personal selling, adverting, sales promo, and PR

49. _____ is a unique blend of pricing, promotion, place and production that lead to mutually satisfying exchanges.

ANS: Marketing mix

50. A company that prints checks develops software for mortgage comparison. Divisions is producing less than desirable amount in a high growth sector:

ANS: Problem child (basically its definition)

51. Auto manufacture launches a marketing drive to sell 1 million vehicles. Identified main growth markets and wants to selling China, Russia and India. The plans to market there are _____.

ANS: Marketing development

52. A strategic something that matches products and markets_____.ANS: Market penetration

53. The only products that Fujiwa makes are the drugs that they sell worldwide and they are patent protected. This is _____.

ANS: Niche competitive advantage

54. A formal study of strengths and weakness by looking at profits sales histories and search for new opportunities and threats is _____.

ANS: SWOT analysis

55. What is NOT a characteristic of good objective in a mission statement?ANS: Time specific (yes to profitable, realistic, measureable and consistant)

56. SBU:ANS: strategic business unit

57. The focus of a mission statement is:ANS: determining the market it wishes to serve

58. Pepsi writes “Our business is to increase the value of our investors investment through sales, growth, cost controls and a commitment to success that depend on quality and value to customer and providing products of high quality…” This is a _____.

ANS: Mission statement

59. This is true about a marketing plan.ANS: Created so organization can meet its marketing objectives (NOT- basically same

content, sequential steps, or made of oral traditions)

60. Strategic Planning:

61. A good reason to study marketing is_____.ANS: leads to career opportunities

62. At a toy store, employees circulate to ensure that visitor have a good time. This is _____.ANS: Customer oriented personnel

63. Frequent flyer programs are an example of _____.ANS: Relationship marketing

64. Markets that are interested in offering customer value can_____.ANS: ALL- offer products that can perform, give facts, have an organization wide

commitment, avoid unrealistic pricing.

65. Customer value:ANS: definition

66. Definition of societal orientation:

67.Social and economic justification for an organization’s existence is to satisfy customer needs and wants while meeting organizational objectives. This is_____.

ANS: Marketing concept

68. The marketing concept involves_____.ANS: Focusing on customer wants so an organization can distinguish products from

competitor products.

69. A company that relies on a marketing concept and have implemented a marketing orientation strategy that recognizes that_____.

ANS: what customers think they are buying is what’s important

70. Best buy has become the largest specialty retailer by focusing on customer needs and wants. This is _____.

ANS: Marketing orientation

71. This is NOT a marketing management philosophy_____.ANS: profitability orientation

72. Definition of exchange:

73. Definition of marketing:

74. Important activities like planning, development of products, pricing policy and distribution are all parts of _____.

ANS: production

75. For an exchange to occur_____.ANS: both parties must have something the other party sees as valu

Test 2

1. “What is your reason for coming to Arkansas” –Tourism Board of Arkansasa. Open Ended

2. Study of the human behavior in its natural conditiona. Ethnographic

3. Characterized by every element in population having known statistical likelihood of being selected

a. Probability4. Hospitals use random number table to select participants from list of patients who are

currently in the hospitala. Random

5. Sporting goods-- Learning what peoples’ attitudes, motivations, and feelings are about its product lines—Potential sources except:

a. Observation6. Paintings Direct—(online seller)—Sells to retailers, custom framing stores, and

intermediaries—Paintings Direct is selling?a. Business Products

7. When buying a newspaper and notice aspirin and buy that as well. Aspirin is?a. Convenience product

8. Convenience product marketing strategy includes:a. Wide distribution of product

9. Harrison wants a gas water heater—He waits for it to come on sale—This is called:a. Shopping Product

10. Anasazi brand mountain climbing shoes (safest brand)—People who want to buy safest shoes will buy no other—Anasazi shoes are:

a. Specialty Product11. Selecting one segment of a market to target and focus on understanding needs,

motivations, and satisfactions of members of that segment as well as developing highly specialized marketing mix

a. Concentrated Targeting12. Stouffers chooses to serve 2 well defined market segments (gourmet vs. lean cuisine)

and develop distinct marketing mixes, what strategy is used? a. Multi-segment target

13. Cell Phone features—low to high technological advancement and high entertainment to high utility to show products are perceived by customers

a. Perceptual Map14. Coca Cola introduced Coke Zero in Great Britain in order to appeal to British men who

don’t drink diet soda because they consider them feminine beverages—“Bloke Coke”—Positioning strategy for men who don’t drink diet

a. Product User15. Atlanta Falcons use marketing research to gather information on poor attendance. They

used in game surveys and end of season surveys of ticket holders. Gathering of factual statements is an example of marketing research in its:

a. Descriptive Role16. Through Marketing Research, Boston Symphony Orchestra learned it has an older

market and isn’t attracting young concert goers. They wanted to know if integrated ad campaign targeted to younger market would be successful. In its second use of research, BSO employed:

a. Predictive Marketing Research17. Planning, collecting, and analyzing data relevant to marketing decision making. Results

are communicated to management.a. Marketing Research

18. 3 functional roles for marketing research:a. Descriptive, diagnostic, and predictive

19. Pulte Homes, national builder, needs to control costs. Research shows 80% of homebuyers select the same countertops, floors, carpets, and toilets. This is:

a. Primary Data20. What’s not an example of secondary data

a. Survey conducted by one’s own firm to asses brand awareness21. When deciding on distribution plans for specialty products, companies generally ensure

items are:a. Distributed to only a few stores in the geographic area

22. There are a number of detergents marketed under the tide brand. (with and without fabric softener, bleach, various smells). Large variety is an example of:

a. Product line23. Along with soft drinks, Cadbury Schweppes also market Dentyne gum, Sour Patch Kids,

and Motts Apple Juice. This is a list of a company’s:

a. Product Mix24. Product mix width may be defined as:

a. Number of different product lines an organization offers to sell25. George Weston Limited—Canadian food product and distribution company—Also owns

and operates pulp and paper company, Canadian Dairy, and sugar refinery organization provide Weston with Product:

a. Mixed Width26. Bazooka Gum has great brand awareness but stagnate sales. Research shows company

that kids prefer softer bubble gum and Joe is considered out of date. Bazooka created softer gum and cooler Joe. Bazooka hopes through this ____ to attract younger market.

a. Repositioning27. What about planned Obsolescence is true?

a. All are true28. Cover Girl and Revlon are lead manufacturers in cosmetics. They recently introduced

cosmetics for “Over 50” women. Introduction of these cosmetic are examples of implementation of:

a. Product line extension strategy29. Honda stopped making Honda Insight because it never caught on with buyers. This

_____ will allow Honda to concentrate resources on more profitable vehiclas.a. Product Line Contraction

30. Symbol that can’t be spoken in a brand:a. Brand Mark

31. 2004, Bazooka was among most recognizable brands in US even though gum needed some updating to be competitive in today’s market. Manufacturer has carefully developed Bazooka name for over 50 years and was willing to make modifications in product because Bazooka has a valuable:

a. Brand Equity32. Brands where at least 20% of product is sold outside home country:

a. Global Brand33. Brand Loyalty can:

a. Help ensure repeat sales34. Brand names used on Del Monte, Pillsbury, Harley Davidson, and Purina Products are

called _____ brands because of who owns thema. Manufacturers

35. About one out of every 2 fans sold in US is Home Depot’s Hampton Bay brand. Example of _____ brand

a. Private

36. Which of the following statements describes an advantage to retailers associated with developing their own brands:

a. Higher gross margins are available on private brands37. When a company markets several different products under the same brand name. This

is referred to as ________ brand.a. Family

38. Procter and Gamble makes Camay Soap for people concerned with soft skin and safeguard for those who want deodorant protection. Using _______ strategy

a. Individual branding39. Rosa’s husband Phil has a cold—Rose purchased Breathe Right nasal strips embedded

with Vicks mentholated vapor rub. The package showed Breathe Right and Vicks brand names. This is an example of:

a. Ingredient Branding40. Rollerblades is brand name for in-line skates. People often refer to Rollerblades as if it

were the product name. Company may someday find its brand name becoming a:a. Generic Product Name

41. Lacoste has targeted 40 something male consumers—Today through implementation of a ______ strategy, it targets male and female fashion conscious consumers in their 20’s with everything from moon boots to coats

a. Repositioning42. First stage of new product development process is:

a. Establishing new product strategy43. Least likely source for new product ideas:

a. Financial lenders44. First filter in new product development process. Serves to eliminate new product ideas

that are inconsistent with organizations new product strategy or are obviously inappropriate for some other reason:

a. Idea Screening45. In the ____ stage of new product development, preliminary demand, cost, sales, and

profitability estimates are made:a. Business analysis

46. Product that is perceived as new by a potential adopter, whether product is “new to the world” or simply new to the individual is an:

a. Innovation47. Process by which the adoption of an innovation spreads is ______. This is the spread of

a new idea from its source of invention or creation to its ultimate users or adopters.a. Diffusion

48. Which of the following is a market group discussed in diffusion of innovations:

a. Laggards49. Which is true

a. Twinkie brand should benefit from placement of their product in Zombie Land50. Adopter Categories—Final 16% to adopt are similar to innovators in they don’t rely on

norms of group but independent because they are tradition bound. Lowest socioeconomic status, suspicious of new products:

a. Laggards51. Razor scooters gathered popularity because walkers/runners frequently saw people on

scooters zipping by and having fun. Adoption rate of razor scooter was most affected by:

a. Observability52. Gold Peak by Coca Cola North American intended to taste like tea “Mom used to Bew”—

High marketing and high production cost occur. Promotion is informing customers. Which stage is Gold Peak in:

a. Introductory53. During growth stage of product life cycle

a. Profits Peak54. During maturity stage of product life cycle:

a. Promotion to dealer is often intensified55. Which about product life cycle is true?

a. All statements about PLC is true56. Result of applying human or mechanical efforts to people or objects:

a. Service57. The service sector:

a. Employs roughly 80% of U.S. work force58. A service can’t be touched, seen, tasted, heard, or felt in the same manner in which

goods can be sensed and therefore is referred to as:a. Intangible

59. Western Union has 225,000 locations in 196 countries. You can send money from Georgia to a small town in Mexico without worrying. Western Union has a high degree of ______ properties

a. Experience60. Characteristic that can’t easily be assessed even after purchase since the customers

don’t have the knowledge or experience:a. Credence Quality

61. Difficult to achieve consistency and standardization of services because of which service characteristic:

a. Heterogeneity

62. Not a service component used to evaluate service quality: a. Validity

63. Western Union allows people in one area to transfer funds dependably to another—This provides which service quality:

a. Reliability64. Budget Airlines—Shanghai based Spring Airlines is start-up company with a tight budget.

Spring has 97% satisfaction level despite employees being throttled—According to ______ -----gap between what customers want and what management thinks customers want.

a. Gap Model of Service Quality65. Radio Shack—Manager frustrated at level of service from employees after he made a

guide. Example gap between:a. Service quality specifications and service actually provided

66. Iam Pets—Dental products for dogs---Dogs at various ages and sizes---These subgroups are:

a. Market Segments67. E & V Bridal Studio---Needs marketing mix for ethnic customers—Procedure to divide

large marketa. Market Segmentation

68. Market segmentation helps businesses toa. Do all these things

69. Manufacturer of lenses has segmented its markets (science, sports)---For this to be successful all criteria must be met EXCEPT

a. Complexity70. According to criterion of ______ selected segment must be large enough to warrant

developing and maintaining…..a. Sustainability

71. . UK hospital is interested in getting cross section of patient opinion on changes that will make hospital stay more like motel stay. The cost of new amenities will be reflected in higher rates. UK hospital used random number table to select participants for list of patients this is______. ANS: RANDOM sample.

Test 3

1. Illy Coffee Products---Which is true?a. US retailers often raise coffee prices when beginning to sell Illy

2. Denny’s----Which is true?a. Grand Slam give away is trade promotion

3. Non traditional media---Which is true?a. Spending on promotion in non-traditional media is increasing

4. Pampered Chef and Longaberger baskets----Transactions in home settingsa. Direct Retailing

5. Supermarkets and long-term relationshipsa. Create and use loyalty marketing programs

6. Communication process consists ofa. Encoding, decoding, channel, sender, and receiver

7. Interpretation of language and symbols sent by source though channela. Decoding

8. Basic tasks performed by promotion

a. Persuading9. Informative promotion is used

a. During early stages of product life10. American Plastic Counsel—Wants to stimulate consumer demand for products packaged

in plastic. There are ads ran in consumer magazines and these cause customers to ask retailers to carry more products in plastic

a. Pull strategy11. All activities directly related to sale of goods and services to ultimate consumer personal

and nonbusinessa. Retailing

12. Which is the best example of a retailer?a. Real estate company

13. Around the world, most retailers are _____, operating one or few stores in their community, owned by a single person

a. Independent Retailer14. Retail stores owned and operated as a group by a single organization. Administrative

and purchasing tasks are handled at the home officea. Chain Stores

15. High gross margin, narrow product assortment, high servicea. Specialty store

16. Several department stores under one roof, wide variety shoppinga. Department store

17. Type of store and method of retail operations---deep but narrow assortmenta. Specialty store

18. Large departmentalized, self service retailers----wide assortment of food and nonfood items

a. Membership wholesale clubs19. Supermarkets that offer wide variety of nontraditional goods/services under one roof

a. Scrambled merchandising20. Low price, high turnover, high volume

a. Discount stores21. Nationally branded hard goods and offer very limited service---National chains dominate

a. Full-line discount stores22. Specialty stores (office depot and staples) are category killers

a. Destroy profit potential for category of merchandise for other retailers23. Shopping without visiting the store and growing faster than instore shopping. There is a

consumer demand for conveniencea. Non-store retailing

24. Continuing relationships which individual or business grants business rights to operate/sell product to another individual/business

a. Franchise25. Which is true of retailer promotion strategies

a. Goal of retail promotion mix position store in consumer’s mind26. Communication by marketers to inform, persuade, and remind to influence opinion or

elicit a responsea. Promotion

27. Main function of promotional strategya. Convince target customers that firm’s product offers competitive advantages

over the competition28. American plastic council creates demand for products packaged in plastic. Council

developed ______ that sets out how it will use all elements of promotion mix to create coordinated plan become part of marketing strategy

a. Promotional strategy29. Promotional mix consists of

a. Advertising, personal selling, sales promotion, and public relations30. Increase Revenue, US airways sell space on airsick bags for promotional message. Air

bag is used fora. Advertising

31. Marketing function evaluates public attitudes, identifies areas of public interest, executes program of action

a. Public relations32. Steel Recycling Unit promotes recycling steel products—Plan that stimulates consumer

demand is an example of a. Publicity

33. $1 off coupon Carnation instant Breakfast is an example ofa. Sales promotion

34. Volvo cars brings traffic to dealership with Pirates of the Carribean. This is an example of

a. Sales Promotion35. Java Jacket sent a rep to all really big companies

a. Personal Selling36. For communication to be effective

a. Marketing managers must ensure proper match between message to be conveyed and target markets attitudes and ideas

37. 3 basic tasks of promotiona. Informing, persuading, reminding

38. Promotional mix elements emphasized for products in the growth stagea. Personal selling and persuasive advertising

39. Audio Cassettes---products in declinea. None of these is true

40. Promotional mix elements effective helping highly involved customers with complex buyer decisions

a. Personal selling41. Procter and Gamble----Dawn Dish Liquid----use TV, billboards, and radio---these are all

associated witha. Advertising

42. Companies with new brands have small markets spend proportionately more for ad/sale promotion compared to larger companies

a. Achieve certain minimum level of exposure to measurably affect purchase habits43. How does advertising affect customers?

a. Changes negative attitudes to positive44. Procter and Gamble---Children Safe Drinking Water—Employees teaching people

around the world to purify water. This is an example ofa. Institutional

45. General Motors runs magazines encouraging purchase of Cadillac. What is this an example of?

a. Product advertising46. Edible arrangements—Fruit cut to mimic flowers. Tried to convince people it’s not a

novelty product but a way to show someone how you feel—this is using:a. Pioneering advertising

47. Influence demand for specific brand of goods/services—Has less information and more emotion—About brand name and recall

a. Competitive advertising

48. Frito Lay—TV and print advertising—Trying to get people to buy Frito Stax over Pringlesa. Comparative advertising

49. Microsoft—“I’M TIED TO MMY DESK era” is overa. Unique selling proposition

50. Tilex Mold and Mildew—ads show it being applied to shower and mildew disappearinga. Demonstration execution style

51. “Fresh Lemon Taste Made Easy”—Realemon Juice---What ad appeal is used?a. Convenience

52. Sun Trust Bank Ad shows woman filling her bird feeder and squirrels getting into the bird feeder—Other investment bankers dip into your funds

a. Slice-of-Life53. Timely and geographically flexible

a. Newspaper54. Manufacturer pays percentage of ad cost for an ad—A retailer places the manufacturers

branda. Cooperative

55. Why would a retailer avoid the use of newspaper advertisinga. Little demographic selectivity

56. What has extreme market selectivity?a. Magazine

57. What is the advantage of TV advertisinga. Ability to reach wide and diverse audiences

58. Outdoor advertisinga. Flexible low cost medium that can take many forms

59. Sales promotiona. Offers short term incentive to buy

60. What are 2 types of sales promotion?a. Consumer and trade

61. Harper Collins and Sutter Homes partnership and put neckhangers on bottle of wine for $2 off Harper Collins Book. The neckhanger is an example of

a. In Store Coupon62. How do stores overcome low redemption rates on coupons?

a. Marketers are doing all of these63. Jane Ming purchased Southern Living and received a free cookbook. The free cookbook

is an example of a. a premium

64. Hugo buys a 12oz soda. He gets a stamp on his card. For every eight stamps he gets a free soda. This is an example of

a. Frequent buyer program65. Seagrams coolers asked bartenders in NYC to submit their own recipe and the winning

recipe won prizes. What is this an example of?a. Sweepstakes

66. Comcast cable mailed CD to businesses that would benefit them. All of these businesses are prospects for Comcast’s services. This CD is an example of

a. A sampling67. Maureen Kye was given a DVD of Pirates of the Carribean so she could suggest people

buy it. The DVD is an example ofa. Trade sales promotion

68. Knowledge business depend on repeat sales is basis of a. Relationship selling

69. Prospecting—ID of those firms and people most likely to buy sellers offeringsa. Lead generation

70. Morris Hutch—Selling a machine to a customer—“When would you like me to schedule the delivery of your new machine”—What’s this an example of?

a. Closing the sale71. Convenience, pricing objectives divided into 3 categories

a. Profit oriented, sales oriented, and status quo72. Companies pricing objectives to meet competition or maintain existing prices

a. Statues qou73. Hostlight Industriess—moderately priced motels—filling unused rooms

a. Yield management74. Determine what sales volume must be reached for a product before the company’s total

cost equal total revenue and no profits are earneda. Price equilibrium analyses

75. Limitation associated with break-even analysesa. Sometimes difficult to ascertain whether a cost is fixed or variable

Marketing Exam 3 Study Guide

Chapter 13 Definitions:

Retailing: all of the activities directly related to the sale of goods and services to the ultimate consumer for personal non business use

Utility of Retailing a Producta. Time- like selling products at Rupp during a gameb. Place- make product available in many places and easy to get to

c. Form- make it available in different sizes and amountsd. Possession- like vending machines w/ a picture of every bottle on the front

Forms of Ownership:1. Independent Retailer- owned by a single person or partnership and not operated as a

part of a larger institution2. Corporate Chain- owned and operated as a group by a single organization

a. Starbucks3. Franchise (Contractual System)- the right to operate a business or sell a product

a. Subway

Merchandise Line- describes how many different types of products a store carries and in what assortment

1. Scrambled Merchandising- offering several unrelated product lines in a storea. Walgreens or a supermarket

Major Types of Operations-1. Department Stores- store housing several depts. Under one roof2. Specialty Store- specialized in a certain type of product3. Supermarket- large departmentalized self service retail with food and non food 4. Drug Store- pharmacy related stocked store which is main draw5. Convenience Store- mini- supermarket that carries a line of high turnover convenience

goods6. Discount Store- low price, high volume, high turnover

a. Full line- mass merchandise, limited service and broad assortment of nationally branded “hard goods”

b. Specialty discount store- category killer like HH Greg7. Off Price- factory outlets, they pay cash for products and never return them

Retailer Service Assortment Price Gross MarginDept Store Mod- high Broad Mod- high Mod highSpecialty High Narrow Mod- high High

Supermarket Low Broad Mod LowConvenience Low Med-narrow Mod high Mod high

Drug Low- mod Medium Mod LowFull line Discount Mod- low Med- broad Mod low Mod low

Discount Specialty Mod- low Med- broad Mod low-Low Mod low

Non- Store Retailing-1. Automatic vending- machines like Coke uses2. Direct Retailing- selling products door to door, office to office or at home parties, like

Avon3. Direct Marketing- get ppl to buy from home or office like catalogs or telemarketing

4. Electronic Retailing- home shopping networks, online like amazon.com

Franchising- the originator of a trade name or product grants operating right s to someone else to sell its products

Chapter 14

Promotion- communication by marketers that informs, persuades, and reminds potential buyer of product in order to influence their opinion or elicit an response

Promotional Strategy- a plan for the optimal use of the promotional mix, convince that their product is better

Promotional Mix:1. Advertising- impersonal one way mass communication about a product or organization

tht is paid for by a marketer2. Public Relations- the mkting function that evaluates public attitudes, identifies areas w/

in the org that the public may be interested in and executes a program of action to earn public understanding and acceptancea. Maintain a positive imageb. Educate public about objectivesc. Introduce new productsd. Support sales efforte. Advantages- credibility but disadvantage- no control over media

3. Sales Promotion- mkting activities other than selleing, advertising, and PR that stimulate consumer buying and dealer effectivenessa. Samplesb. Contestc. Premiumsd. Trade showse. Vacation giveawaysf. Coupons

4. Personal Selling- planned presentation to one or more buyers to make a sale, complex info can be explained to a customer

Product Life Cycle-1. Introduction- this is when you must inform customers to:

a. Increase awarenessb. Explain how it worksc. Suggest new usesd. Build company image

2. Growth- you must persuade customers:a. Encourage brand switching

b. Change perceptions about productc. Influence immediate buying decisionsd. Persuade them to call

3. Maturity- must remind customersa. Remind customers that they may need productb. Remind where to buyc. Maintain customer awareness

Communication Process and Promotion1. Sender- message to be conveyed, encode message, transmit message2. Receiver- receive message, decode message, message that was understood then

feedback3. Channel- in between sender and receiver

Push Strategy- directing the promo mix to channel members (aka Stores) and getting them to stock your product

Pull Strategy- directing the promo mix at customer and getting them to ask for the product like Head and Shoulders

Chapter 15

Advertising- impersonal, one way mass communication about a product or org that is paid for by a marketer

Advertising & Mkt Share:a. New brands with a small mkt share spend proportionally more for advertising and sales

promotion than those with a large mkt shareb. Beyond a certain level of spending you get diminishing returnsc. New brands require a higher spending to reach a minimum level of exposure needed to

affect purchasing habits

Consumers: avg American is exposed to hundreds of ads each daya. Advertising may change a negative attitude toward a product or may reinforce a positive

attitudeb. Advertising can affect consumer ranking of a brands attributes

Types of Advertising1. Institutional: enhances a company’s image rather than promote a product used the

whole life of a producta. Corporate identity- not to get us to buy but to recognize the brand

b. Advocacy- an org expresses its views on something controversial to get us to like them

2. Product- touts the benefits of a specific good or servicea. Pioneering- informational advertising for a new product to

i. stimulate demandb. Competitive- used in growth phase, uses emotional appeal

i. influences demand for specific brandc. Comparative- compares 2 or more products, used if growth is slow or competition is

strongi. Highlights weaknesses of competition

Advertising Appeals1. Profit- product saves money, makes or protects it

a. Ie a bank2. Health- to the body conscious or health seekers

a. Dr. Scholls3. Love or Romance- used in selling cosmetics and perfumes

a. Godiva 4. Fear- social embarrassment, old age, losing health

a. All State5. Admiration- reason for celebrity spokespersons 6. Convenience- used in fast foods and microwaveable food7. Fun and Pleasure- vacation, beer, parks8. Vanity and Egotism- expensive and conspicuous items9. Environmental Consciousness

Unique Selling Proposition- a desirable, exclusive, and believable appeal selected as the theme for a campaign

Advertising Executions-1. Musical- Safe Auto2. Scientific- medicines3. Slice-of Life- shows people in a normal setting4. Lifestyle- Harley Davidson5. Spokesperson- testimonial6. Fantasy- Calvin Klein7. Humorous- chick fil-a8. Real/ Animated product symbols- like the Michelin man and the Geico gecko9. Mood or Image- builds a mood or image around a product10. Demonstration- Billy Mays!

Ad Programs- 1. Newspaper-

a. adv: geographic selectivity, short term ad commitments, news value and immediacy high individual market coverage, co-op- when a retailer sells the band but the manuf pays for the ad, and local tie in availability

b. dis: limited demographics, limited color, low pass along rate2. Magazines-

a. Good reproduction, demographic selectivity, regional selectivity, long advertising life, high pass along rate

b. Dis: long term commitment, slow audience build up, limited demonstration, lack of urgency

3. Radio- a. Low cost, immediacy of message, short notice scheduling, no seasonal audience

change, highly portable, short term commitment, entertainment carryoverb. No visual, short advertising life, high frequency to generate comprehension and

retention, background distractions, commercial clutter4. TV

a. Wide, diverse audience,low cost per 1000, creative ways to demonstrate, immediacy over messages, entertainment carryover, demographic selectivity w/ cable

b. Short life of message, skepticism, high campaign cost, little demographic selectivity w/ stations, long term commitment, long lead times for production, commercial clutter

5. Outdoora. Repetition, moderate cost, flexible, geographic selectivityb. Short message, lack of demographic selectivity, high noise level

6. Internet- a. Fast growing, ability to reach narrow target audience, short lead time, moderate

costb. Difficult to measure effectiveness and ROI, relies on click through on banner ads, not

everyone has a comp

Chapter 16

Sales Promotion: marketing communication activities, other than advertising, personal selling, and public relations, in which a short term incentive motivates a purchase

2 types of Sales Promotion1. Consumer Sales Promotion

a. Coupon- certificates that entitle person to immediate price reductionb. Rebate- cash refund given for the purchase of a product during a specific timec. Premium- an extra item offered to the consumer for buying the product, usually

exchanged for proof of purchased. Loyalty Marketing Program- promotional program designed to build long term,

mutually beneficial relationshipse. Frequent Buyer Program- a loyalty program where buyers are rewarded for making

multiple purchases

f. Contests- promotions that require skill for prizesg. Sweepstakes- promotion that relies on luck to winh. Sampling- giving them the product for free, by direct mail, door to door delivery,

packaged w/ another product or in store demonstration2. Trade Sales Promotion

a. Trade allowances- a price reduction offered by manufacturers to intermediaries like wholesalers & retailers

b. Push Money- money given to intermediaries to push their productc. Free Merchandise- given to retailers instead of a discountd. Store Demonstration- companies send reps directly into stores to show off or give

samples of a producte. Conventions & Trade Shows- allow manuf to gain new accounts, this is most of their

sales

Personal Selling- planned presentation to prospective customers for the sole purpose of making the sale

a. Important if: product has high value, custom made, few customers, complex, customers are concentrated

b. But Advertising & Sales Promotion is important if: the product is simple and sold to a lot of people everywhere

Personal Selling Steps:1. Cold Calling- sales person approaches a potential customer w/o knowledge of the

customers needs or finances2. Qualify Leads:

a. Recognize the needs and wants of a customer b. Make sure they have the buying powerc. Receptivity and accessibility-

3. Opportunity to handle objections from customers-a. Compensation- offer the customer something to make up for the objectionb. Feel- Felt- Found- similar to a testimonialc. Boomerang- when the customer is too busy save them time or moneyd. Pass-Up- not addressing the complainte. Postpone-f. Denial- can be either direct or indirect

4. Closing the Sale- a. Direct Request- “can I put you down for 110 copies?”b. Benefit Summaryc. Balance Sheet Method- lists the pros and cons of you vs a competitord. Probing Method- e. Minor Point Close- would you like red or blue?f. Continuous Commitment- ask questions over and over to reinforce that you are the

right brandg. Standing Room Only- if you aren’t ready to buy than im offering it to someone else

h. Benefits in Reserve- offer an additional price cut when closing the salei. Emotional Close