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What are the different supply chain strategies?
- PUSH STRATEGY:
- AKA speculation strategy
- Predict sales, then produce and stock products
- according to predictions.
- PULL STRATEGY
- ¡ AKA responsive supply chain
- ¡ Production and distribution wait on customer orders.
- HYBRID STRATEGY
- ¡ AKA push-pull strategy
- ¡ Initial manufacturing stages depend on a push
- strategy, but final stages depend on a pull strategy.
What factors should you consider when deciding which strategy to use?
- ¡ Choosing a strategy:
- § Predictability of demand: Need to predict sales in order to
- use a push strategy.
- § Need to be cost competitive: Push strategy allows for lower
- costs by allowing for economies of scale.
- § Need for customization and customer service: Pull strategy
- allows for tailoring products to customer needs.
- § Need for fast delivery: Push strategy allows companies to
- have products ready to go.
How do money, value, and information flow along the supply chain?
- Value down all the way to the shopper
- Money up to the supplier
- Information both ways
Why do we need intermediaries?
Transactional, logistical, and facilitating functions (activities under each category)
- ¡ Provide value to consumers by creating utility:
- § Time
- § Place
- § Form
- § Possession
- ¡ Provide value to organizations by performing a variety of
- § Transactional-Buying, selling, risk taking
- § Logistical-Assorting, storing, sorting, transporting
- § Facilitating-Financing, grading, marketing
Relationship between type of distribution (intensive versus selective versus exclusive distribution) and number of intermediaries?
In intensive distribution, the producer's products are stocked in the majority of outlets.In selective distribution, the producer relies on a few intermediaries to carry their product.In exclusive distribution, the producer selects only very few intermediaries.Not only does intensive distribution provide convenience and availability to consumers, it also increases their brand preference and loyalty.
Be able to identify a B2B versus a B2C channel (direct or indirect).
- • B2B markets are larger and have more transactions than B2C markets.
- • Relationships are more important in B2B than in B2C.
- B2B markets tend to have longer decision cycles than B2C markets.
- B2C markets have smaller total dollar amounts due to fewer transactions.
- B2B markets place more reliance on personal selling than B2C markets.
- B2B markets don't have a large number of sales accounting for most of the company's sales.
What are the factors likely to lead to vertical conflict? Horizontal conflict?
- ¡ Vertical conflict:
- § Disintermediation: One channel member bypasses another and
- reduces the length of the channel
- § Disagreements about sharing profits
- § Disagreements about attention to product
- ¡ Horizontal conflict:
- § Manufacturer increases distribution area
- § Manufacturer uses multiple channels to sell products
What is a contractual VMS?
What is the most common type?
- ¡ Contractual VMS:
- § Independent firms that join together through contracts
- § Wholesaler-sponsored voluntary chain, retail-sponsored
- cooperative, and franchises
- § Franchises are most common.
What is a franchise? How do you classify franchises?
- ¡ Franchises:
- § Individual/firm pays royalties and fees to the franchisor in
- exchange for guidance on business development and access to
- a product.
- § Three types based on organizations involved:
- § Two types based on level of involvement:
What are the customer service factors involved in logistics?
- Customer service
Why is reverse logistics important?
- ¡ Getting products back from consumers after they no
- longer want them.
- ¡ Can be cost effective and environmentally friendly.
- ¡ Can be required by law in some industries/countries.
- § In Europe, automakers must take back and recycle or reuse 85
- percent of any vehicle made after 2004.
- ¡ Returned products
- ¡ Recycling products
What are the different transportation modes?
Advantages/disadvantages of each?
When should/would you use which mode?
Ways of classifying wholesalers?
Ways of classifying retailers?
- ¡ Form of ownership:
- § Independent retailer
- § Corporate chain
- § Contractual systems
- ¡ Level of service:
- § Self-service
- § Limited service
- § Full service
- ¡ Merchandise line
- § Depth of product line
- § Breadth of product line
Breadth of product mix versus depth of product line
What are the dimensions used in the retail-positioning matrix?
Upstream versus downstream supply channels
- Upstream: Supplier and Manufacturer
- Downstream: Distributor, Retailer, Shopper
WHAT ARE MARKETING CHANNELS?
- ¡ The process and parties involved in making a product
- available to consumers.
- § Parties and consumers can be individuals or organizations
- § Product can be a good or a service
Integrated marketing communications
- Carefully integrating and coordinating the company’s many
- communications channels to deliver a clear, consistent, and
- compelling message about the organization and its products.
- Direct Marketing
- Personal Selling
- Public Relations
- Sales Promotions
What are the factors that can influence how you develop IMC strategy?
Know the 4 W’s
- § Who is the target audience?
- § What are the objective(s), budget, and tools?
- § Where should the promotions be run?
- § When should the promotions be run?
What are the factors that can influence how you develop IMC strategy?
Effects of life cycle stage, product characteristics, purchase risk, and the need for ancillary services influence?
What are the different buyer readiness stages?
What are the different communication goals?
- § Persuading
- § Reminding
- § Connecting
What are the elements in the model of message construction?
Feedback versus response
Fields of experience
Why might there be errors in the communication process?
What is the AIDA model?
- § Get Attention
- § Hold Interest
- § Arouse Desire
- § Obtain Action
What is direct marketing?
What are the main responses sought for direct marketing?
What are the main direct marketing methods?
- ¡ Key features:
- § Customized communication
- § One-on-one interactions
- ¡ Multiple methods:
- § Direct mail and catalogs
- § Telemarketing
- § Television home shopping
- § Interactive marketing
- **Telemarketing receives the most expenditure
- ¡ Responses:
- § Direct orders
- § Lead generation
- § Traffic generation
What are the advantages and disadvantages of personal selling?
- ¡ Disadvantages:
- § One of the most expensive IMC tools
- § Need to ensure consistency of communication across sales
- ¡ Advantages:
- § Immediate feedback
- § Customized communication
- § Relationship building
What are the main types of personal selling? Which type would you use when?
- ¡ Order-taking
- § Maintain existing relationship with a customer
- § Process routine orders and/or re-orders
- § Inside vs. outside order-takers
- ¡ Order-getting
- § Sales process
- § Need to be knowledgeable and creative
- § Inside vs. outside
- ¡ Customer sales-support
- § Missionary salespeople
- § Sales engineers
- § Team selling
What are the steps in the personal selling process?
What are the 3 different types of sales presentations?
What are the main strategies for handling objections?
What are the 3 ways of closing?
- ¡ Prospecting: identifying promising potential customers
- ¡ Pre-approach: learn about the prospect
- ¡ Approach: get the prospect’s attention
- ¡ Presentation; create desire for the product
- ¡ Close: obtain a purchase commitment
- ¡ Follow-up: assess customer’s experiences
- § Stimulus-response presentation
- § Suggestive selling
- § Formula-selling presentation
- § Canned presentation
- § Need-satisfaction presentation
- § Adaptive selling
- § Consultative selling
- ¡ Strategies for handling objections:
- § Acknowledge and convert
- § Postpone
- § Agree and neutralize
- § Accept
- § Denial
- § Ignore
- § Trial close
- § Assumptive close
- § Urgency close
What are the main compensation methods? When would you use each type?
- ¡ Straight salary:
- § Useful when salespeople have to engage in a lot of non-selling
- ¡ Straight commission:
- § Useful when sales growth is most important
- ¡ Salary and commission
- § Depends on structure
What are the 6 scientifically validated methods of persuasion?
Be able to recognize each based on a situation
Missionary salespeoplework for a manufacturer and promote the manufacturer's products to other firms; They are frequently called people who influence a buying decision but do not actually place the order.
What are the 3 main advertising objectives?
Be able to identify the main objective when given an ad
- §Create and build
- awareness of the
- product/product class
- §Can help in generating
- primary demand
- §Useful in initial stages
- of product life cycle
- §Emphasis on
- differentiating the
- §Motivate consumers to
- take action
- §Useful during the
- growth stages
- §Comparative ads
- directly attack other
- §Prompt repurchase
- §Useful during maturity
- §Maintain and manage
- relationships with
What are the main strategies for setting the budget?
What are the factors that might influence how much you allocate for advertising?
- ¡ Factors to consider:
- § Stage in the product life cycle: New products may need bigger
- § Market share: Need more resources to gain marketshare than to
- § Number of competitors: Need more resources when more
- § Brand differentiation: Products with little brand differentiation
- (e.g., detergent) may need to advertise more to differentiate
- ¡ Strategies:
- § Percentage of sales, Competitive parity, All you can afford,
- Objective and task
What are the main types of emotional appeals?
Be able to identify the appeal when given an ad
- ¡ Major types of emotional appeals:
- § Fear/safety
- § Sex/love
- § Humor
- § Comfort
- § Nostalgia
What are the main types of scheduling?
- ¡ Flighting or intermittent
- ¡ Pulse or burst
What are the main methods used to evaluate an ad?
- ¡ Pre-tests
- § Portfolio tests
- § Jury tests
- § Theater tests
- ¡ Post-tests
- § Aided recall
- § Unaided recall
- § Attitude
- § Inquiry
- § Sales
What are the main types of sales promotions?
Be able to identify the promotion in a scenario
- ¡ Two major types:
- § Consumer oriented
- § Trade oriented
>A measure of spread (dispresion)>Percentage of different people or households exposed to an ad at least once in a time period
Gross rating points
>the sum of the ratings delivered by a given list of media vehicles>like ratings, GRP's are a percentage>commonly indicates "household" rating points
What are the similarities and differences between traditional and social media?
- Ability to Reach Both Large and Niche Audiences
- Expense and Access
- Training and Number of People Involved
- Time to Delivery (planned versus reactive)
- Credibility and Social Authority
- Different models of communication
What are the advantages and disadvantages of using social media?
- Immediate, timely, real-time
- Engagement and sharing (brand communities)
- Still figuring it out
What factors are likely to make content go viral?
- Positive content likely to go more viral than negative
- Emotional content more likely to go viral
- Particularly high arousal emotions (awe, anger, anxiety)
- Practically useful content, interesting, and surprising
- content is more likely to viral
- Moral idealism: certain rights and duties are
- universal regardless of the outcome.
- Utilitarianism: ethical behavior is when the benefits
- outweigh the costs.
Consumer Bill of Rights
- 1962: JFK outlined Consumer Bill of Rights
- Right to safety
- Right to be informed
- Right to choose
- Right to be heard
Salutary versus Deficient versus Desirable versus Pleasing products
What are the main ways of classifying services?
Be able to identify the method given a service
- ¡ Delivery method?
- § Delivery by people
- § Delivery by equipment
- ¡ Revenue?
- § For-profit
- § Non-profit
- § Government-sponsored
What are the dimensions on which a service is evaluated?
Be able to identify a dimension given a situation
- Search quality: More often applied to goods, assessed
- before purchase
- ¡ Experience quality: Assessed after purchase
- ¡ Credence quality: Assessed only with appropriate
What is the gap model?
What are the different types of gaps and how can they lead to service faiilures?
How do you recover from a service failure?
- Achieved by:
- § Listening to the customer and involving them in the service
- § Providing a fair solution
- § Distributive versus procedural fairness
- § Resolving the problem quickly
What are the 7 P’s of marketing services?
- ¡ 7 P’s!
- § Product
- § Price
- § Place
- § Promotion
- § People
- § Physical environment
- § Process
Zone of tolerance
- ¡ Difference between customers’ expectations and the
- minimum level of service they’re willing to accept.
- ¡ Need to ask customers whether they were satisfied
- with their experience!