Supply chain management: set of approaches and techniques that firms use to integrate suppliers, manufacturers, warehouses, stores, and transportation intermediaries so that products are distributed in the right quantity to the right location at the right time while minimizing costs
Direct channel: manufacturer to customer
Direct channel One Intermediary: Manufacturer to retailer to customer Direct Channel Two Intermediaries: Manufacturer to wholesaler to retailer to customer
EDI: electronic data interchange; computer-to-computer exchange of business documents from a retailer to a vendor and back. In addition to sales data, purchase orders, invoices, and data about returned merchandise can be transmitted back and forth.
RFID: radio frequency identification tags: tiny computer chips that automatically transmit to a special scanner all the information about a container’s contents or individual products
JIT and Q-R systems
Just in time: reduced lead time, increase product availability with lower inventory investment
Quick response: deliver less merchandise on a more frequent basis 4 vertical marketing systems – independent, administered, contractual and corporate
Independent: several independent members—a manufacturer, a wholesaler, and a retailer—attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members. None of the participants have any control over the other
Administered: There is no common ownership or contractual relationships, but the dominant channel member controls or holds the balance of power. Contractual: firms at different levels of the supply chain join together through contracts to obtain economics of scale and coordination to reduce conflict (working together) We also discuss several other topics like What volume should you dilute a 100.0 ml solution of cacl2 of 5.00 m to obtain a solution with 0.750 m?
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Corporate: parent company has complete control and can dictate the priorities and objectives of the marketing channel because it owns multiple segments of the channel If you want to learn more check out What sociological mean?
Retailing: Business activities that add value to products or services that are sold to consumers for their personal or family use
Retailing – unique features
Breaking bulk: Refers to the way wholesalers achieve savings for their customers through buying merchandise in large lots and breaking the bulk into smaller units Assortment: The different types of products that a business makes or a retailer offers for sale. It consists of the following characteristics- Breadth, Length, Depth, Consistency
Atmospherics: The physical characteristics and surrounding influence of a retail store that is used to create an image in order to attract customers. Music, smells, furniture, etc
Provide services: provide services to customers; valet, personal shopping, coat check, etc.
Services retailers: Firms that primarily sell services rather than merchandise, are a large and growing part of the retail industry (banks, hospitals, gyms, spas, etc.) Intensive distribution: Designed to get products into as many outlets as possible. Companies such as Proctor and Gamble, Pepsi, Kraft, and other national recognized brands
Exclusive distribution: sold in just a few outlets, like Coach, exclusive geographic territories, We also discuss several other topics like Why remain foragers?
Selective distribution: pick and choose retail outlets Don't forget about the age old question of What purpose does pork-barrel legislation serve?
Convenience stores: limited variety, good location
Specialty stores: limited number of merchandise categories targeted toward very specific market segments by offering deep but narrow assortments and sales associate expertise
Dept. stores: carry broad variety, deep assortment
Category killers: discount with narrow and deep assortment, self-service, use buying power to offer low prices
Extreme value retailers: small, full line, limited, very low prices (Dollar General) Off-price retailers: inconsistent assortment of brand names at low prices Share of wallet: the percentage of the customer’s purchases made from that retailer. Customer relationship management (CRM) system with a centralized customer data warehouse that houses a complete history of each customers’ interaction with the retailer. Handle complaints, returns, and future promotions Don't forget about the age old question of If a mom has an a blood type, and the child has o blood type, what type of blood does the dad have?
Benefits of the store
2. Touching and Feeling Products
3. Personal Service
4. Cash and Credit Payments
5. Entertainment and Social Experience
6. Immediate gratification
7. Risk Reduction
Benefits of multichannel retailing channels
IMC (Integrated Marketing Communications) represents the promotion P of the four Ps. It encompasses a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media—in combination to provide clarity, consistency, and maximum communicative
Three elements in any strategy: consumer, channel of communication, and evaluation of results
Sender is who sends out the message
Transmitter encodes message (encoding converts idea to message) Media is the communications channel
Receiver (consumer) decodes message and interprets it
Feedback loop: receiver can communicate with sender and informs whether message was conveyed
Awareness (ability to recognize/recall brand) leads to
Interest, which leads to
Desire (I want it), which leads to
TOMA: top of mind awareness: consumers mention a specific brand first when asked about a product
Advertising: most visible of the IMC and very effective at generating awareness; TV ads are the most effective
Personal selling: two way flow of communication between a buyer and a seller that is designed to influence purchase decision
PR: public relations: organizational function that manages firm’s communications to achieve objectives like building/maintaining a positive image, heading off unfavorable stories, maintaining positive media relationships
4 budget setting methods
Objective and task: set our goal, identify the tasks needed to complete, how much will it cost
Competitive parity: communication expenses equal share of market Percentage of sales: fixed percentage of forecasted sales
Available budget: money available after costs/profits have been budgeted
Advertising: a paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future.
Getting attention: identify target audience, set advertising objectives, determining advertising budget, convey the message, evaluate and select the media, create advertisements, assess impact
Push/pull strategies: push: pushy salespeople who push product onto retailer (B to B); pull: manufacturer advertises directly to customers; get them to go to the store and ask about the product --> will call manufacturer to order item for the store Inform, persuade and remind functions
Inform: is a communication used to create and build brand awareness Persuade: to motivate consumers to take action, growth and early maturity Remind: remind or prompt repurchases, maturity
Primary demand: drive interest in a product category or type of product, as opposed to focusing on a specific brand
Selective demand: persuade the target audience to select its brand over alternatives.
Social marketing: public service advertising (public welfare, sponsored by nonprofit, etc)
USP: unique selling proposition
Continuous: runs steadily through the year
Pulsing: has a base level of advertising but increases advertising during certain periods
Flighting: in spurts; heavy advertising followed by no advertising
Informational and emotional appeals
Emotional: fear/safety, humor, happiness, love/sex, comfort, nostalgia Informational: help consumers make purchase decisions by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provide
FTC, FCC, FDA
Puffery: legal exaggeration
Public relations – general info on various elements
Publications: Inform various constituencies about the activities of the organization and highlight specific areas of expertise
Video/Audio: Highlight the organization or support cause-related marketing efforts. Annual Reports: Give required financial performance data and inform investors and others about the unique activities of the organization
Media relations: Generate news coverage of the organization’s activities or products/services.
Electronic media: Websites can contain all the previously mentioned toolbox elements while e-mail directs PR efforts to specific target groups.
Sponsorships: special incentives or excitement-building programs that encourage consumers to purchase a particular product or service
Sales promotion: could simply shift sales from the future to now, Coupon: discount off the purchase price
Deals: short term price reduction
Premium: gives an item for free upon purchase, BOGO,
Contests: competition based on skill/effort
Sweepstakes: prizes based on a drawing
Samples: try the product before buying
Loyalty Programs: retain customers with incentives
Point of Purchase Displays: merchandise at the checkout counters
Rebates: portion of purchase price returned to customer
Product placement: pay to have product included in movies/TV
Cross promotion: two or more firms team up to reach a specific target market 7 purposes of sales promotion
Introduce new products
Attract new customers
Make existing customers buy more
Help firm stay competitive
Increase sales in off season
Add to stock of warehouse