Exam 4

  1. World's 1st Service Economy
    United States
  2. 6 ways in which services differ from goods
    • 1. Intangibility
    • 2. Inseparability of production and consumption
    • 3. Heterogeneity
    • 4. Perishability
    • 5. Client based relationships
    • 6. Customer contact
  3. Inseparability of production and consumption
    Service sold, produced & consumed at the same time
  4. Heterogeneity
    More difficult for quality control
  5. Deregulation
    started to happen in the bank industry, now going to be more regulated
  6. International Competition
    America is #1 in advertising
  7. Services Consumer
    • Market segmentation
    • Issues with distribution and promotion
    • More productivity out of your employees
  8. Consulting
    Many firms based in Boston
  9. Nonprofit Marketing
    Marketing activities conducted by individuals and organizations to achieve some goal other than ordinary business goals of profit, market share, and return on investment
  10. Target Public
    Those with a concern about an organization
  11. Client Public
    Those people who will receive the output or benefits of the nonprofit institution
  12. Strategic Planning
    Process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, marketing strategy and a marketing plan
  13. SWOT Analysis
    Strengths, Weaknesses, Opportunities, Threats
  14. Opportunities & Threats
    Can be identified by stating the organization's mission and objectives
  15. Mission
    Long-term view of what the organization wants to become
  16. Objectives
    Specific quantifiable results that a firm wants to achieve in a given time period
  17. Opportunities
    Current or future conditions in the environment that is favorable to an organization
  18. Threats
    • Current or future conditions in the environment that is unfavorable to an organization
    • Possible for a threat to turn into an opportunity
  19. 4 Growth Strategies
    • Market Penetration
    • Market Development
    • Product Development
    • Diversification
  20. Market Penetration
    • Same products and same markets to increase sales
    • EX: Spending more on advertising
  21. Market Development
    • Same products and new markets
    • EX: Coors going nationwide
  22. Product Development
    • New products, same market
    • EX: Tide coming out with lemon Tide
  23. Diversification
    New products and new markets
  24. Convergent Diversification
    • Diversifying into products and markets that use a firm's existing production or marketing knowledge.
    • EX: Mobile going into plastic bag service
  25. Conglomerate Diversification
    Adding products and serving markets that are totally unrelated to the firm's current business
  26. *Boston Consulting Group (4)
    • Stars
    • Cash Cows
    • Question Marks (problem children)
    • Dogs
  27. Stars
    • In the high growth market and high market share
    • EX: Gatorade
  28. Cash Cows
    • In the low growth and high market share
    • EX: Pepsi & Marlboro
  29. Question Marks (problem children)
    High growth and low market share
  30. Dogs
    Low growth and low market share
  31. Boston Consulting group only looks at...
    market share and industry growth
  32. Retrenchment Strategies
    • Liquidation of parts of the business, cost containment or both
    • EX: Pepsi
  33. Marketing Channels
    A group of individuals and organizations directing products from producers to customers
  34. Most Common Channel
  35. Horizontal Channel Integration
    • 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
  36. Intensity of distribution
    Number of middlemen who handle a product within a channel
  37. Intensive distribution
    • Product is available at virtually any reseller that will carry it
    • EX: Pepsi, Coke
  38. Selective Distribution
    Going to the most suitable resalers
  39. Exclusive Distribution
    One retailer in the area
  40. Dual Distribution
    Process of a manufacturer selling both to independent retailers and through its own retail and wholesale outlets
  41. Retailing
    • Any firm that sells products to the final customer
    • EX: Vending Machines
  42. Types of Retailers
    • Department Stores
    • Discount Department Stores
    • Specialty Stores
    • Superstores
    • Warehouse Clubs
    • Convenience Stores
    • Catalog Showrooms
    • Home Improvement Center
    • Off Price Retailer
  43. Department Stores
    Large scale retail organizations with a broad product mix consisting of many different product lines
  44. Specialty Stores
    Small scale retail establishments with a narrow assortment of merchandise and high depth
  45. Superstores
    Sell products that meet most of the customer's needs
  46. Warehouse Clubs
    Large scale members only establishments that provide features of cash and carry wholesaling with discount retailing
  47. Catalog Showrooms
    Display one item of each product the retailer sells
  48. Home Improvement Center
    Hardware store and lumberyard combined
  49. Gross Margin
    The amount of gross profit the retailer makes as a percentage of the sales
  50. Inventory Turnover
    the average number of times per year that a retailer sells its inventory
  51. Shopping Center Types
    • Neighborhood Center
    • Community Center
    • Regional Center
  52. Neighborhood Center
    • Approximately 50,000 square feet
    • Grocery store is the key tenant
    • Target markets lives with 2-3 miles of the store
  53. Community Center
    • Approximately 150,000 square feet
    • Anchor would be a small department store
  54. Regional Center
    • Shopping Mall
    • A full line department store is the key tenant
  55. Free Standing Retailer
    • Stands on its own
    • Ice cream does well free standing
  56. Store atomosphere
    Conscious designing of space to evoke certain effects in buyers
  57. Wheel of retailing
    • Concept states that new types of retailers enter the market as low status, low margin, low cost operators
    • Ex: Outlet stores
  58. Retail Life Cycle (4 Stages)
    • Innovation
    • Accelerated Development
    • Maturity
    • Decline
  59. Innovation
    developing a novel approach to retail marketing
  60. Accelerated Development
    Sales and profits increasing dramatically
  61. Maturity
    Market share stabilizes, intense competition, decline stage
  62. Scrambled Merchandising
    • Retailers adding unrelated items
    • They are usually fast moving items
  63. Promotion
    Communication to build and maintain relationships by informing and persuading one or more audience
  64. Objectives of Promotion (8)
    • 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
  65. Promotion Mix (4)
    • 1. Advertising
    • 2. Personal Selling
    • 3. Sales Promotion
    • 4. Publicity
  66. Advertising
    Any paid form of nonpersonal presentation by an identified sponsor
  67. Personal Selling
    An oral presentation with one or more prospective purchasers for the purpose of making a sale
  68. Sales Promotion
    Designed to produce immediate short-run sales increases
  69. Publicity
    Nonpersonal stimulation of demand for goods or services by generating commercial news about them in the mas media. It is not paid for.
  70. Promotion Mix
    Mix of advertising, personal selling, sales promotion, and publicity that composes a firm's promotional tools.
  71. Pull Strategy
    Targeted to final consumer
  72. Push Strategy
    Targeted to middleman
  73. Types of Advertising (9)
    • Product
    • Pioneer
    • Competitive
    • Comparative
    • Reminder
    • Defensive
    • Institutional
    • Vertical Cooperative
    • Horizontal Cooperative
  74. Product Advertising
    Promotes a product's uses, benefits, or features
  75. Pioneer Advertising
    Tries to stimulate demand for a product category
  76. Competitive Advertising
    Attempts to convince consumers that a particular product brand is the best one for them
  77. Comparative Advertising
    Compares the firm's brand w/ competing brands
  78. Reminder Advertising
    Used to remind consumers about an established brand's uses, characteristics and benefits
  79. Defensive Advertising
    Used to lessen the effect of competitors' promotion
  80. Institutional Advertising
    To enhance the image of the firm
  81. Vertical Cooperative Advertising
    Manufacturer working w/ department store
  82. Horizontal Cooperative Advertising
    People on the same level working together
  83. Developing the Advertising Campaign (8 Steps)
    • 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
  84. Establishing the Advertising Budget
    • Marginal Analysis
    • Affordability
    • Competition Matching Approach
    • Percent of Sales
    • Objective and Task
  85. Developing the Media Plan
    • The media mix is the combination of media types used to communicate a message
    • Media Schedule consists of reach and frequency
  86. Ad Agency typically gets...
    15% of media buy
  87. Leo Burnett
    Famous Ad Agency
Card Set
Exam 4
Ch. 13, 2, 15, 16, 17, 18