Exam 4

United States

• 1. Intangibility
• 2. Inseparability of production and consumption
• 3. Heterogeneity
• 4. Perishability
• 5. Client based relationships
• 6. Customer contact

Service sold, produced & consumed at the same time

More difficult for quality control

started to happen in the bank industry, now going to be more regulated

America is #1 in advertising

• Market segmentation
• Issues with distribution and promotion
• More productivity out of your employees

Many firms based in Boston

Marketing activities conducted by individuals and organizations to achieve some goal other than ordinary business goals of profit, market share, and return on investment

Those with a concern about an organization

Those people who will receive the output or benefits of the nonprofit institution

Process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy and a marketing plan

Strengths, Weaknesses, Opportunities, Threats

Can be identified by stating the organization's mission and objectives

Long-term view of what the organization wants to become

Specific quantifiable results that a firm wants to achieve in a given time period

Current or future conditions in the environment that is favorable to an organization

• Current or future conditions in the environment that is unfavorable to an organization
• Possible for a threat to turn into an opportunity

• Market Penetration
• Market Development
• Product Development
• Diversification

• Same products and same markets to increase sales
• EX: Spending more on advertising

• Same products and new markets
• EX: Coors going nationwide

• New products, same market
• EX: Tide coming out with lemon Tide

New products and new markets

• Diversifying into products and markets that use a firm's existing production or marketing knowledge.
• EX: Mobile going into plastic bag service

Adding products and serving markets that are totally unrelated to the firm's current business

• Stars
• Cash Cows
• Question Marks (problem children)
• Dogs

• In the high growth market and high market share
• EX: Gatorade

• In the low growth and high market share
• EX: Pepsi & Marlboro

High growth and low market share

Low growth and low market share

market share and industry growth

• Liquidation of parts of the business, cost containment or both
• EX: Pepsi

A group of individuals and organizations directing products from producers to customers

Manufacturer>Wholesale>Retailer>Consumer

• Combing organizations at the same level of operation under one management
• Acquiring another business at the same level of distribution
• EX: Exon buying out Mobile

Number of middlemen who handle a product within a channel

• Product is available at virtually any reseller that will carry it
• EX: Pepsi, Coke

Going to the most suitable resalers

One retailer in the area

Process of a manufacturer selling both to independent retailers and through its own retail and wholesale outlets

• Any firm that sells products to the final customer
• EX: Vending Machines

• Department Stores
• Discount Department Stores
• Specialty Stores
• Superstores
• Warehouse Clubs
• Convenience Stores
• Catalog Showrooms
• Home Improvement Center
• Off Price Retailer

Large scale retail organizations with a broad product mix consisting of many different product lines

Small scale retail establishments with a narrow assortment of merchandise and high depth

Sell products that meet most of the customer's needs

Large scale members only establishments that provide features of cash and carry wholesaling with discount retailing

Display one item of each product the retailer sells

Hardware store and lumberyard combined

The amount of gross profit the retailer makes as a percentage of the sales

the average number of times per year that a retailer sells its inventory

• Neighborhood Center
• Community Center
• Regional Center

• Approximately 50,000 square feet
• Grocery store is the key tenant
• Target markets lives with 2-3 miles of the store

• Approximately 150,000 square feet
• Anchor would be a small department store

• Shopping Mall
• A full line department store is the key tenant

• Stands on its own
• Ice cream does well free standing

Conscious designing of space to evoke certain effects in buyers

• Concept states that new types of retailers enter the market as low status, low margin, low cost operators
• Ex: Outlet stores

• Innovation
• Accelerated Development
• Maturity
• Decline

developing a novel approach to retail marketing

Sales and profits increasing dramatically

Market share stabilizes, intense competition, decline stage

• Retailers adding unrelated items
• They are usually fast moving items

Communication to build and maintain relationships by informing and persuading one or more audience

• 1. Create awareness
• 2. Stimulate primary vs. selective demand
• 3. Encourage product trial
• 4. Identify prospects
• 5. Retail loyal customers
• 6. Facilitate reseller support
• 7. Combat competitive promotional efforts
• 8. Reduce Sales Fluctuations

• 1. Advertising
• 2. Personal Selling
• 3. Sales Promotion
• 4. Publicity

Any paid form of nonpersonal presentation by an identified sponsor

An oral presentation with one or more prospective purchasers for the purpose of making a sale

Designed to produce immediate short-run sales increases

Nonpersonal stimulation of demand for goods or services by generating commercial news about them in the mas media. It is not paid for.

Mix of advertising, personal selling, sales promotion, and publicity that composes a firm's promotional tools.

Targeted to final consumer

Targeted to middleman

• Product
• Pioneer
• Competitive
• Comparative
• Reminder
• Defensive
• Institutional
• Vertical Cooperative
• Horizontal Cooperative

Promotes a product's uses, benefits, or features

Tries to stimulate demand for a product category

Attempts to convince consumers that a particular product brand is the best one for them

Compares the firm's brand w/ competing brands

Used to remind consumers about an established brand's uses, characteristics and benefits

Used to lessen the effect of competitors' promotion

To enhance the image of the firm

Manufacturer working w/ department store

People on the same level working together

• 1. Identifying the advertising target
• 2. Developing the advertising objectives
• 3. Advertising platform is the issues or selling point
• 4. Establishing the advertising budget
• 5. Developing the Media Plan
• 6. Creating the Advertisement
• 7. Executing Campaign
• 8. Evaluating advertising effectiveness

• Marginal Analysis
• Affordability
• Competition Matching Approach
• Percent of Sales
• Objective and Task

• The media mix is the combination of media types used to communicate a message
• Media Schedule consists of reach and frequency

15% of media buy

Famous Ad Agency