Exam 1
1. _______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 gatekeeper
ANS: 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 that
ANS: 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 influence
ANS: 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 making
ANS: 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 Arkansas
a. Open Ended
2. Study of the human behavior in its natural condition
a. Ethnographic
3. Characterized by every element in population having known statistical likelihood of
being selected
a. Probability
4. Hospitals use random number table to select participants from list of patients who are
currently in the hospital
a. Random
5. Sporting goods-- Learning what peoples’ attitudes, motivations, and feelings are about
its product lines—Potential sources except:
a. Observation
6. 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 Product
11. 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 Targeting
12. 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 Map
14. 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 User
15. 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 Role
16. 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 Research
17. 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 Data
20. What’s not an example of secondary data
a. Survey conducted by one’s own firm to asses brand awareness
21. 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 line
23. 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 Mix
24. Product mix width may be defined as:
a. Number of different product lines an organization offers to sell
25. 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 Width
26. 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. Repositioning
27. What about planned Obsolescence is true?
a. All are true
28. 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 strategy
29. 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 Equity
32. Brands where at least 20% of product is sold outside home country:
a. Global Brand
33. Brand Loyalty can:
a. Help ensure repeat sales
34. Brand names used on Del Monte, Pillsbury, Harley Davidson, and Purina Products are
called _____ brands because of who owns them
a. 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 brands
37. 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 branding
39. 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 Branding
40. 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. Repositioning
42. First stage of new product development process is:
a. Establishing new product strategy
43. Least likely source for new product ideas:
a. Financial lenders
44. 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 Screening
45. 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. Innovation
47. 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. Laggards
49. Which is true
a. Twinkie brand should benefit from placement of their product in Zombie Land
50. 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. Laggards
51. 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. Observability
52. 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. Introductory
53. During growth stage of product life cycle
a. Profits Peak
54. During maturity stage of product life cycle:
a. Promotion to dealer is often intensified
55. Which about product life cycle is true?
a. All statements about PLC is true
56. Result of applying human or mechanical efforts to people or objects:
a. Service
57. The service sector:
a. Employs roughly 80% of U.S. work force
58. 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. Experience
60. 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. Reliability
64. 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 Quality
65. 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 Segments
67. E & V Bridal Studio---Needs marketing mix for ethnic customers—Procedure to divide
large market
a. Market Segmentation
68. Market segmentation helps businesses to
a. 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. Complexity
70. 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 settings
a. Direct Retailing
5. Supermarkets and long-term relationships
a. Create and use loyalty marketing programs
6. Communication process consists of
a. Encoding, decoding, channel, sender, and receiver
7. Interpretation of language and symbols sent by source though channel
a. Decoding
8. Basic tasks performed by promotion
a. Persuading
9. Informative promotion is used
a. During early stages of product life
10. 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 strategy
11. All activities directly related to sale of goods and services to ultimate consumer personal
and nonbusiness
a. 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 Retailer
14. Retail stores owned and operated as a group by a single organization. Administrative
and purchasing tasks are handled at the home office
a. Chain Stores
15. High gross margin, narrow product assortment, high service
a. Specialty store
16. Several department stores under one roof, wide variety shopping
a. Department store
17. Type of store and method of retail operations---deep but narrow assortment
a. Specialty store
18. Large departmentalized, self service retailers----wide assortment of food and nonfood
items
a. Membership wholesale clubs
19. Supermarkets that offer wide variety of nontraditional goods/services under one roof
a. Scrambled merchandising
20. Low price, high turnover, high volume
a. Discount stores
21. Nationally branded hard goods and offer very limited service---National chains dominate
a. Full-line discount stores
22. Specialty stores (office depot and staples) are category killers
a. Destroy profit potential for category of merchandise for other retailers
23. Shopping without visiting the store and growing faster than instore shopping. There is a
consumer demand for convenience
a. Non-store retailing
24. Continuing relationships which individual or business grants business rights to
operate/sell product to another individual/business
a. Franchise
25. Which is true of retailer promotion strategies
a. Goal of retail promotion mix position store in consumer’s mind
26. Communication by marketers to inform, persuade, and remind to influence opinion or
elicit a response
a. Promotion
27. Main function of promotional strategy
a. Convince target customers that firm’s product offers competitive advantages
over the competition
28. 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 strategy
29. Promotional mix consists of
a. Advertising, personal selling, sales promotion, and public relations
30. Increase Revenue, US airways sell space on airsick bags for promotional message. Air
bag is used for
a. Advertising
31. Marketing function evaluates public attitudes, identifies areas of public interest,
executes program of action
a. Public relations
32. 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 of
a. Sales promotion
34. Volvo cars brings traffic to dealership with Pirates of the Carribean. This is an example
of
a. Sales Promotion
35. Java Jacket sent a rep to all really big companies
a. Personal Selling
36. 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 promotion
a. Informing, persuading, reminding
38. Promotional mix elements emphasized for products in the growth stage
a. Personal selling and persuasive advertising
39. Audio Cassettes---products in decline
a. None of these is true
40. Promotional mix elements effective helping highly involved customers with complex
buyer decisions
a. Personal selling
41. Procter and Gamble----Dawn Dish Liquid----use TV, billboards, and radio---these are all
associated with
a. 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 habits
43. How does advertising affect customers?
a. Changes negative attitudes to positive
44. Procter and Gamble---Children Safe Drinking Water—Employees teaching people
around the world to purify water. This is an example of
a. Institutional
45. General Motors runs magazines encouraging purchase of Cadillac. What is this an
example of?
a. Product advertising
46. 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 Pringles
a. Comparative advertising
49. Microsoft—“I’M TIED TO MMY DESK era” is over
a. Unique selling proposition
50. Tilex Mold and Mildew—ads show it being applied to shower and mildew disappearing
a. 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-Life
53. Timely and geographically flexible
a. Newspaper
54. Manufacturer pays percentage of ad cost for an ad—A retailer places the manufacturers
brand
a. Cooperative
55. Why would a retailer avoid the use of newspaper advertising
a. Little demographic selectivity
56. What has extreme market selectivity?
a. Magazine
57. What is the advantage of TV advertising
a. Ability to reach wide and diverse audiences
58. Outdoor advertising
a. Flexible low cost medium that can take many forms
59. Sales promotion
a. 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 Coupon
62. How do stores overcome low redemption rates on coupons?
a. Marketers are doing all of these
63. 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 program
65. 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 sampling
67. Maureen Kye was given a DVD of Pirates of the Carribean so she could suggest people
buy it. The DVD is an example of
a. 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 offerings
a. 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 sale
71. Convenience, pricing objectives divided into 3 categories
a. Profit oriented, sales oriented, and status quo
72. Companies pricing objectives to meet competition or maintain existing prices
a. Statues qou
73. Hostlight Industriess—moderately priced motels—filling unused rooms
a. Yield management
74. Determine what sales volume must be reached for a product before the company’s total
cost equal total revenue and no profits are earned
a. Price equilibrium analyses
75. Limitation associated with break-even analyses
a. 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 Product
a. Time- like selling products at Rupp during a game
b. Place- make product available in many places and easy to get to
c. Form- make it available in different sizes and amounts
d. 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 institution
2. Corporate Chain- owned and operated as a group by a single organization
a. Starbucks
3. 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 store
a. Walgreens or a supermarket
Major Types of Operations1. Department Stores- store housing several depts. Under one roof
2. Specialty Store- specialized in a certain type of product
3. Supermarket- large departmentalized self service retail with food and non food
4. Drug Store- pharmacy related stocked store which is main draw
5. Convenience Store- mini- supermarket that carries a line of high turnover convenience
goods
6. 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 Greg
7. Off Price- factory outlets, they pay cash for products and never return them
Retailer
Dept Store
Specialty
Supermarket
Convenience
Drug
Full line Discount
Discount Specialty
Service
Mod- high
High
Low
Low
Low- mod
Mod- low
Mod- low
Assortment
Broad
Narrow
Broad
Med-narrow
Medium
Med- broad
Med- broad
Price
Mod- high
Mod- high
Mod
Mod high
Mod
Mod low
Mod low-Low
Gross Margin
Mod high
High
Low
Mod high
Low
Mod low
Mod low
Non- Store Retailing1. Automatic vending- machines like Coke uses
2. Direct Retailing- selling products door to door, office to office or at home parties, like
Avon
3. 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 marketer
2. 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 acceptance
a. Maintain a positive image
b. Educate public about objectives
c. Introduce new products
d. Support sales effort
e. 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 effectiveness
a. Samples
b. Contest
c. Premiums
d. Trade shows
e. Vacation giveaways
f. 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 Cycle1. Introduction- this is when you must inform customers to:
a. Increase awareness
b. Explain how it works
c. Suggest new uses
d. Build company image
2. Growth- you must persuade customers:
a. Encourage brand switching
b. Change perceptions about product
c. Influence immediate buying decisions
d. Persuade them to call
3. Maturity- must remind customers
a. Remind customers that they may need product
b. Remind where to buy
c. Maintain customer awareness
Communication Process and Promotion
1. Sender- message to be conveyed, encode message, transmit message
2. Receiver- receive message, decode message, message that was understood then
feedback
3. 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 share
b. Beyond a certain level of spending you get diminishing returns
c. 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 day
a. Advertising may change a negative attitude toward a product or may reinforce a positive
attitude
b. Advertising can affect consumer ranking of a brands attributes
Types of Advertising
1. Institutional: enhances a company’s image rather than promote a product used the
whole life of a product
a. 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 service
a. Pioneering- informational advertising for a new product to
i.
stimulate demand
b. Competitive- used in growth phase, uses emotional appeal
i.
influences demand for specific brand
c. Comparative- compares 2 or more products, used if growth is slow or competition is
strong
i.
Highlights weaknesses of competition
Advertising Appeals
1. Profit- product saves money, makes or protects it
a. Ie a bank
2. Health- to the body conscious or health seekers
a. Dr. Scholls
3. Love or Romance- used in selling cosmetics and perfumes
a. Godiva
4. Fear- social embarrassment, old age, losing health
a. All State
5. Admiration- reason for celebrity spokespersons
6. Convenience- used in fast foods and microwaveable food
7. Fun and Pleasure- vacation, beer, parks
8. Vanity and Egotism- expensive and conspicuous items
9. Environmental Consciousness
Unique Selling Proposition- a desirable, exclusive, and believable appeal selected as the theme
for a campaign
Advertising Executions1. Musical- Safe Auto
2. Scientific- medicines
3. Slice-of Life- shows people in a normal setting
4. Lifestyle- Harley Davidson
5. Spokesperson- testimonial
6. Fantasy- Calvin Klein
7. Humorous- chick fil-a
8. Real/ Animated product symbols- like the Michelin man and the Geico gecko
9. Mood or Image- builds a mood or image around a product
10. Demonstration- Billy Mays!
Ad Programs1. Newspaper-
2.
3.
4.
5.
6.
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 rate
Magazinesa. 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
Radioa. Low cost, immediacy of message, short notice scheduling, no seasonal audience
change, highly portable, short term commitment, entertainment carryover
b. No visual, short advertising life, high frequency to generate comprehension and
retention, background distractions, commercial clutter
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
Outdoor
a. Repetition, moderate cost, flexible, geographic selectivity
b. Short message, lack of demographic selectivity, high noise level
Interneta. Fast growing, ability to reach narrow target audience, short lead time, moderate
cost
b. 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 Promotion
1. Consumer Sales Promotion
a. Coupon- certificates that entitle person to immediate price reduction
b. Rebate- cash refund given for the purchase of a product during a specific time
c. Premium- an extra item offered to the consumer for buying the product, usually
exchanged for proof of purchase
d. Loyalty Marketing Program- promotional program designed to build long term,
mutually beneficial relationships
e. Frequent Buyer Program- a loyalty program where buyers are rewarded for making
multiple purchases
f. Contests- promotions that require skill for prizes
g. Sweepstakes- promotion that relies on luck to win
h. Sampling- giving them the product for free, by direct mail, door to door delivery,
packaged w/ another product or in store demonstration
2. 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 product
c. Free Merchandise- given to retailers instead of a discount
d. Store Demonstration- companies send reps directly into stores to show off or give
samples of a product
e. 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 finances
2. Qualify Leads:
a. Recognize the needs and wants of a customer
b. Make sure they have the buying power
c. Receptivity and accessibility3. Opportunity to handle objections from customersa. Compensation- offer the customer something to make up for the objection
b. Feel- Felt- Found- similar to a testimonial
c. Boomerang- when the customer is too busy save them time or money
d. Pass-Up- not addressing the complaint
e. Postponef. Denial- can be either direct or indirect
4. Closing the Salea. Direct Request- “can I put you down for 110 copies?”
b. Benefit Summary
c. Balance Sheet Method- lists the pros and cons of you vs a competitor
d. Probing Methode. Minor Point Close- would you like red or blue?
f. Continuous Commitment- ask questions over and over to reinforce that you are the
right brand
g. 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 sale
i. Emotional Close