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CALPOLY / Business / Bus 346 / What is marketing plan?

What is marketing plan?

What is marketing plan?

Description

School: California Polytechnic State University - San Luis Obispo
Department: Business
Course: Principles of Marketing
Professor: Lisa simon
Term: Winter 2016
Tags: Marketing and final
Cost: 50
Name: Principles of Marketing Final Study Guide
Description: These notes cover all of the chapters we've gone over all quarter. Includes all vocab words and objectives.
Uploaded: 03/06/2016
27 Pages 7 Views 5 Unlocks
Reviews


Chapter 1: Overview of Marketing 


What is marketing plan?



-marketing: the activity set of institutions, and process for creating, capturing, communicating,  delivering, and exchanging offerings that have value for customers, clients, partners, and  society at large

-marketing plan: written document composed of an analysis of the current marketing situation,  opportunities, and threats for the firm, marketing objectives and strategy specified in terms of  4 P’s, action programs, and projected income statements

-exchange: trade of things of value between the buyer and the seller so that each is better off  as a result

-marketing mix (4 P’s): product, price, place, and promotion- the controllable set of activities  that a firm uses to respond to the wants of its target markets


What is exchange?



-goods: items that can be physically touched

-services: intangible offering that involves a deed, performance, or effort -ideas: intellectual concepts-thoughts, opinions, philosophies

-B2C: businesses sell to consumers

-B2B: selling merchandise or services from one business to another

-C2C: consumer sell to other consumers

-value: reflects the relationships of benefits to costs, or what the consumer gets for what  he/she gives

-value co-creation: customers act as collaborators with a manufacturer or retailer to create the product or service

-relational orientation: method of building a relationship with customers based on the  philosophy that buyers and sellers should develop a long-term relationship -customer relationship management (CRM): a business philosophy and set of strategies,  programs, and systems that focus on identifying and building loyalty among the firm’s most  valued customers


What is services?



If you want to learn more check out phys 2010

-supply chain: group of firms that make and deliver a given set of goods and services -marketing channel: set of institutions that transfer the ownership of more goods from the  point of production to the point of consumption

-entrepreneurs: a person who organizes, operates, and assumes the risk of a new business  venture

Role of Marketing 

-Occurs in many settings

-Helps create value

-Satisfying customer needs and wants

-Entails an exchange

-Performed by both individuals and organizations

-Requires product, place, price, and promotion decisions

Chapter 12: Developing New Products If you want to learn more check out illusion cannot be created using the medium of fresco.

-innovation: process by which ideas are transformed into new products and services that will  help firms grow

-diffusion of innovation: process by which the use of an innovation, whether a product or  service, spreads throughout a market group over time and over various categories of adopters -pioneers: new product introductions that establish a completely new market or radically  change both the rules of competition and consumer preferences in a market (breakthroughs) -first movers: product pioneers that are the first to create la market or product category,  making them readily recognizable to consumers and thus establishing a commanding and early  market share lead

-early adopters: the second group of consumers in the diffusion of innovation model, after  innovators, to use a product/service innovation

-early majority: a group of consumers in the diffusion of innovation model that represents  approx. 34% of the population; few new products/services can be profitable until this large  group buys them If you want to learn more check out ctc 101 post university

-late majority: last group of buyers to enter a new product market; when they do, the product  has achieved its full market potential

-laggards: consumers who like to avoid change and rely on traditional products until they are no  longer available

-reverse engineering: involves taking apart a competitor’s product, analyzing it, and creating an  improved product that doesn’t infringe on the competitor’s patents, if any exist -lead users: innovative product users who modify existing products according to their own ideas  to suit their specific needs

-concepts: brief written descriptions of a product or service

-concept testing: process in which a concept statement that describes a product or a service is  presented to potential buyers or users to obtain their reactions If you want to learn more check out what does form fits function mean

-product development: entails a process of balancing various engineering, manufacturing,  marketing, and economic considerations to develop a product’s form and features -prototype: 1st physical form or service description of a new product, still in rough form, that  has the same properties as a new product but it is produced through different manufacturing  processes

-alpha testing: an attempt by the firm to determine whether a product will perform according  to its design and whether it satisfies the need for which it was intended

-beta testing: having potential customers examine a product or prototype in a real-life setting  to determine its functionality, performance, potential problems, and other issues  -premarket test: conducted before a product or service is brought to market to determine how  many customers will try and then continue to use it

-test marketing: introduces a new product or service to a limited geographical area (usually a  few cities) prior to a national launch

-trade promotions: advertising to wholesalers or retailers to get them to purchase new  products, often through special pricing incentives

-introductory price promotions: short-term price discounts designed to encourage trial -trade show: major events attended by buyers who choose to be exposed to products and  services offered by potential suppliers in an industry If you want to learn more check out which term is used to describe a group that is set apart from others primarily because of its national origin or distinctive cultural patterns?
We also discuss several other topics like larry lehr baylor

-manufacturer’s suggested retail price (MSRP): the price that manufacturers suggest retailers  use to sell their merchandise

-slotting allowance: fees firms pay to retailers simply to get new products into stores or to gain  more or better shelf space for their products

-product life cycle: defines the stages that new products move through as they enter, get  established in, and ultimately leave the market place and thereby offers markets a strategy  planning

-introduction stage: stage of the product life cycle when innovators start buying the product -growth stage: stage of the product life cycle when the product gains acceptance, demand, and  sales increase, and competitors emerge in the product category

-maturity stage: stage of the product life cycle when industry sales reach their peak, so firms try  to rejuvenate their product by adding new features or repositioning them -decline: stage of the product life cycle when sales decline and the product eventually exits the  market

Why do firms create new products? 

-changing customer needs

-market saturation

-managing risk through diversity

-fashion cycle

-improving business relationships

How do firms develop new products? 

-Idea Generation ⮴ internal research and development, R&D consortia, licensing,  brainstorming, outsourcing, competitor’s products, consumer input

Product Life Cycle 

-Intro stage: innovators start buying product

-Growth stage: product gains acceptance, demand, and sales increase

-Maturity stage: industry sales reach peak, try to rejuvenate their product by repositioning -Decline stage: sales decline and product exists the market

Chapter 2: Developing Market Strategies & A Plan 

-marketing strategy: a firm’s target market, marketing mix, and method of obtaining a  sustainable competitive advantage

-sustainable competitive advantage: something that firm can persistently do better than its  competitors

-customer excellence: involves a focus on retaining loyal customers and excellent customer  service

-operational excellence: involves a firm’s focus on efficient operations and excellent supply  chain management

-product excellence: involves a focus on achieving high-quality products; effective branding and  positioning is key

-location: method of achieving excellence by having a strong physical location and/or internet  presence

-marketing plan: a written document composed of an analysis of the current marketing  situation, opportunities, and threats for the firm, marketing situation, opportunities and threats  for the firm, marketing objectives and strategy specified in terms of the 4 P’s, action programs,  and projected income and other financial statements

-planning phase: part of the strategic marketing planning process when marketing executives  and top managers 1. Define the mission of the business, 2. Evaluate the situation by assessing  how various players affect the firm’s potential for success

-implementation phase: part of the strategic marketing planning process when marketing  managers 1. Identify and evaluate different opportunities by engaging in segmentation,  targeting, and positioning and 2. Implement the marketing mix using the 4 P’s -control phase: part of the strategic marketing planning process when managers evaluate the  performance of the marketing strategy and take any necessary corrective actions -mission statement: broad description of a firm’s objectives and the scope of activities it plans  to undertake; answers 1. What type of business is it? 2. What does it need to do to accomplish  its goals?

-STP: process of segmentation, targeting, and positioning that firms use to identify and evaluate  opportunities for increasing sales and profit

-market segment: group of consumers who respond similarly to a firm’s marketing efforts -market segmentation: process of dividing the market into groups of customers with different  needs, wants, or characteristics who therefor might appreciate products or services geared  especially for them

-target marketing: the process of evaluating the attractiveness of various segments and then  dividing which to pursue as a market

-market positioning: the process of defining the marketing mix variables so that target  customers have a clear, distinctive, desirable understanding of what the product does or  represents in comparison with competing products

-products: anything that is of value to a consumer and can be offered through a voluntary  marketing exchange

-metric: a measuring system that quantifies a trend, dynamic, or characteristic -strategic business unit (SBU): a division of the firm itself that can be managed and operated  somewhat independently from other divisions and may have a different mission or objectives -product lines: groups of associated items, such as those that consumers use together or think  of as part of group of similar products

-market share: percent of a market accounted for by a specific entity

-relative market share: a measure of the product’s strength in a particular market, defined as  the states of the focal product divided by the sales achieved by the largest firm in the industry -market growth rate: the annual tare of growth of the specific market in which the product  competes

-market penetration strategy: a growth strategy that employs the existing marketing mix and  focuses the firm’s efforts on existing customers

-marketing development strategy: growth strategy that employs the existing marketing offering  to reach new market segments, whether domestic or international

-product development strategy: growth strategy that offers a new product or service to to a  market segment that it doesn’t currently serve

-related diversification: growth strategy whereby the current target market and/or marketing  mix shares something in common with the new opportunity

-unrelated diversification: growth strategy whereby a new business lacks any common  elements with the present business

Growth Strategies 

-Market penetration (current product, current market)

-Market development (current product, new market)

-Product development (new product, same market)

-Diversification (new product, new market)

Chapter 5: Analyzing the Market Environment 

-macro-environmental factors: aspects of the external environment that affect a company’s  business, such as culture, demographics, social issues, technological advances, economic  situation, and political/regulatory environment

-culture: set of values, guiding beliefs, understandings, and ways of doing things shared by  members of a society; exists on 2 levels: visible & underlying values

-country culture: entails easy-to-spot visible nuances that are particular to a country, such as  dress, symbols, ceremonies, language, food, and subtler aspects, which are trickier to identify -regional culture: influence of the area within a country in which people live -demographics: info about the characteristics of human populations and segments, especially  those used to identify consumer markets such as age, gender, income, and education -generational cohort: group of people of the same generation- typically have similar purchase  behaviors because they have shares experiences and are in the same stage of life -Generation Z: “Digital Natives”- these people were born into a world of electronic gadgets and  technologies such as the internet and social media

-Generation Y: people born between 1977-1995

-millennials: consumers born between 1977-2000 and the children of the baby boomers -green marketing: involves a strategic effort by firms to supply customers with environmentally friendly products

-green washing: exploiting a consumer by disingenuously marketing products/services as  environmentally friendly, with the goal of gaining public approval and sales -inflation: refers to the persistent increase in the prices of goods and services -foreign currency fluctuations: changes in the value of a country’s currency relative to the  currency of another country; can influence consumer spending

-interest rates: represent the cost of borrowing money

-political/regulatory environment: comprises political parties, government organizations, and  legislation, and laws

Macroenvironmental Factors 

-Culture

-Demographics

Chapter 9: Segmentation, Targeting, and Positioning 

-geographic segmentation: the grouping of consumers on the basis of where they live -Demographic segmentation: the grouping of customers according to easily measured,  objective characteristics: age, gender, income, and education

-Psychographics: how customers describe themselves; allows people to describe themselves  using those characteristics that help them choose how they use their time (behavior) and what  underlying say go logical reasons determine those choices

-self-values: goals for life, not just the goals one wants to accomplish in a day; refers to  overriding desires that drive how a person lives their life

-self-concept: the image person has of him/herself

-lifestyles: refers to the way person lives his/her life to achieve goals

-value and lifestyle survey (VAIS): psychographic tool developed by SRI Consulting Business  Intelligence; classifies as consumers into eight segments: innovators, thinkers, believers,  achievers, strivers, experiences, makers, or survivors

-benefit segmentation: grouping of consumers on the basis of the benefits they derive from  products and services

-behavioral segmentation: segmentation method that divides customers into groups based on  how they use the product or service; some common behavior measures include occasion and  loyalty

-occasion segmentation: a type of behavior segmentation based on when a product or services  purchased or consumed

-loyalty segmentation: strategy of investing in loyalty initiatives to retain the firms most  profitable customize

-geodemographics of mentation: grouping of consumers on the basis of a combination of  geographic, demographic, and lifestyle characteristics

-undifferentiated targeting strategy (mass marketing): a mass marketing strategy a firm can use  if the product or service is perceived to provide the same benefits to everyone, with no need to  develop separate strategies for different groups

-differentiated targeting strategy: a strategy through which a firm targets several market  segments with a different offering for each

-concentrated targeting strategy: marketing strategy of selecting a single, primary target  market and focusing all energies on providing a product to fit that market’s needs -micromarketing: extreme form of segmentation that Taylor’s a product or service to suit an  individual customer’s wants or needs “one-to-one marketing”

-cookies: computer program installed on hard drives that provides identifying information -value proposition: unique value that a product or service provides to its customers and how it  is better then and different from those of competitors

-value: reflects the relationship of benefits to costs, or what the consumer gets for what he or  she gives

-perceptual map: displays, in two or more dimensions, the position of products or brands in the  consumer’s mind

- ideal points: position at which a particular market segments ideal product would lie on a  perceptual map

Different Methods of Segmenting A Market 

-Geographic

-Demographic

-Psychographic

-Benefit

-Behavioral

Segment Attractiveness 

-Identifiable

-Substantial

-Reachable

-Responsive

-Profitable

Chapter 10: Writing Research 

-marketing research: a set of techniques and principles for systematically collecting, recording,  analyzing, and interpreting data that can aid decision makers involved in marketing goods,  services, or ideas

-secondary data: pieces of info that have already been collected from other sources and usually  are readily available

-primary data: data collected to address specific research needs

-sample: group of customers who represent the customers of interest in a research study -data: raw # or facts

-information: organized, analyzed, interpreted data that offer value to marketers -syndicated data: data available for a fee from commercial research firms such as info resources  Inc (IRI), National Purchase Diary Panel, and ACNiselsen

-scanner data: a type of syndicated external secondary data used in quantitative research that  is obtained from scanner readings of UPC codes at check-out counters

-panel data: info collected from a group of consumers

-data warehouses: large computer files that store millions and even billions of individual data -data mining: use of a variety of statistical analysis tools to uncover previously unknown  patterns in the data stored in databases or relationships among variables -churn: # of consumers who strop using a product or service, divided by the average # of  consumers of that product or service

-qualitative research: informal research methods, including observation, following social media  sites, in-depth interviews, focus groups, and projective techniques

-quantitative research: structured responses that can be statistically tested to confirm insights  and hypotheses generated via qualitative research or secondary data

-observation: an exploratory research method that entail examining purchase and consumption  behaviors through personal or video camera

-sentiment mining: data gathered by evaluating customer comments posted through social  media sites such as Facebook and Twitter

-in-depth interview: an exploratory research technique in which trained research ask questions,  listen to and record the answers, and then pose additional questions to clarify or expand on a  particular issue

-focus group interviews: a research technique in which a small group of person (8-12 people)  comes together for an intensive discussion about a particular topic, with the conversation  guided by a trained moderator using an unstructured method of inquiry

-survey: a systematic means of collecting info from people that generally uses a questionnaire -questionnaire: a form that features a set of questions designed to gather info from  respondents and thereby accomplish the researchers’ objectives; questions can be either  unstructured or structured  

-unstructured questions: open-ended questions that allow respondents to answer in their own  words

-structured questions: close-ended questions for which a discrete set of response alternatives,  or specific answers, is provided for respondents to evaluate

-experimental research (experiment): type of conclusive and quantitative research that  systematically manipulates one or more variables that have a casual effect over another  variable

-biometric data: digital scanning of the physiological or behavioral characteristics of individuals  as a means of identification

Segmentation, Targeting, & Positioning 

-Segmentation

-strategy/objectives

-describe segments (demographics, psychographics, behavioral)

-Targeting

-evaluate segment attractiveness

-select target market

-Positioning

-Identify and develop positioning strategy

- “How the target market views the product in comparison to the competition”

The Marketing Research Process 

1. Defining objectives

2. Designing the research project (secondary & primary data)

3. Data collection

4. Analyzing Data

5. Presenting results

Primary Research 

-Exploratory (to understand)

-focus groups, in-depth interviews, observational studies

-qualitative research

-Descriptive (to associate)

-surveys

-quantitative research

-Casual (to explain)

-experiments, test markets

-quantitative research

Secondary Data 

-Syndicated data (external)

-Scanner data (external)

-Panel data (external)

-Data warehouse (internal)

-Data mining (internal)

-Churn (internal)

7 Deadly Sins in Survey Questions 

-leading questions

-double-barrel questions

-order bias

Political/Regulatory Environment 

-Sherman Act ⮴ monopoly or conspiracy in restraint of trade

-Clayton Act⮴ substantially lessens competition

-Robinson-Patman Act⮴ tends to injure competition

-Wheeler-Lea Amendment ⮴ unfair or deceptive practices

Chapter 11: Product, Branding, & Packaging Decisions 

-product: anything that is of value to a consumer and can be offered through a voluntary  marketing exchange

-core customer value: basic problem solving benefits that consumers are seeking -actual product: the physical attributes of a product including the brand name, features/design,  quality level, and packaging

-associated services: the non-physical attributes of the product including product warranties,  financing, product support, and after-sale service, also called augmented product -consumer products: products and services used by people for their personal use -specialty products/services: products or services toward which the customer shoes a strong  preference and for which he/she will expand considerable effort to search for the best suppliers -shopping products/services: those for which consumers will spend time comparing  alternatives, such as apparel, fragrances, and appliances

-convenience products/services: those for which the consumer is not willing to spend any effort  to evaluate prior to purchase

-unsought products/services: products consumers either do not normally think of buying or do  not know about

-product mix: the complete set of all products offered by a firm

-product lines: groups of associated items, such as those that consumers use together or think  of as part of a group of similar products

-breadth: # of product lines offered by a firm; variety

-depth: # of categories within a product line

-brand equity: the set of assets and liabilities linked to a brand that adds to or subtract from the  value provided by the product or service

-brand awareness: measured how many consumers in a market are familiar with the brand and  what it stands for; created through repeated exposures of the various brand elements in the  firm’s communications to consumers

-perceived value: the relationship between a product’s or service’s benefits and its cost -brand associations: the mental links that consumers make between a brand and its key  product attributes; can involve a logo, slogan, or famous personality

-brand loyalty: occurs when a consumer buys the same brand’s product or service repeatedly  over time rather than buying from multiple suppliers within the same category -manufacturer brands (national brands): brands owned and managed by the manufacturer -retailer/store brands: also called private-label brands, are products developed by retailers -private-label brands: brands developed and marketed by a retailer and available only from that  retailer; store brands  

-family brand: a firm’s own corporate name used to brand its product lines and products -individual brand: the use of individual brand names for each of a firm’s product -brand extension: the use of the same brand name for new products being introduced to the  same or new markets

-line extension: the use of the same brand name within the same product line and represents  an increase in a product line’s depth

-brand dilution: occurs when a brand extension adversely affects consumer perceptions about  the attributes the core brand is believed to hold

-brand licensing: a contractual arrangement between firms, whereby one firm allows another  to use its brand name, logo, symbols, or character in exchange for a negotiated fee -brand repositioning (rebranding): a strategy in which marketers change a brand’s focus to  target new markets or realign the brand’s core emphasis with changing market preferences -primary package: the packaging the consumer uses, such as the toothpaste tube, from which  he/she typically seeks convenience in terms of storage, use, and consumption -secondary package: the wrapper or exterior carton that contains the primary package and  provides the UPC label used by retail scanners; can contain additional product info that may not  be available on the primary package

Types of Products 

-Specialty Products

-Shopping Products

-Convenience Products

-Unsought Products

Value of Branding for the Customer 

-Brands facilitate purchases

-Brands establish loyalty

-Brands protect from competition and price competition

-Brands are assets

-Brands affect market value

Chapter 15: Supply Chain & Channel Management 

-marketing channel management: also called supply chain management, refers to a set of  approaches and techniques firms employ to efficiently and effectively integrate their suppliers -wholesalers: those firms engaged in buying, taking title to, often storing, and physically  handling goods in large quantities, then reselling the goods (usually in smaller quantities) to  retailers or industrial or business users

-supply chain management: refers to a set of approaches and techniques firms employ to  efficiently and effectively integrate their supplier’s manufacturers, warehouses, stores, and  transportation intermediaries into a seamless value chain in which merchandise is produced  and distributed in the right quantities, to the right locations, and at the right time, as well as to  minimize system wide costs while satisfying the service levels their customers require -distribution center: a facility for the receipt, storage, and redistribution of goods to company  stores or customers; may be operated by retailers, manufactures, or distribution specialists -direct marketing channel: the manufacturer sells directly to the buyer

-indirect marketing channels: when one r more intermediaries work with manufacturers to  provide goods and services to customers

-vertical channel conflict: a type of channel conflict in which members of the same marketing  channel, for example, manufacturers, wholesalers, and retailers are in disagreement -horizontal channel conflict: a type of channel conflict in which members at the same level of a  marketing channel, for example, 2 competing manufacturers are in disagreement, such as a  price war

-independent (conventional) marketing channel: a marketing channel in which several  independent members- a manufacturer, a wholesaler, and a retailer- each attempts to satisfy  its own objectives and maximize its profits, often at the expense of the other members -vertical marketing system: a supply chain in which the members act as a unified system; there  are 3 types: administrated, contractual, and corporate

-administered vertical marketing system: a supply chain system in which there is no common  ownership and no contractual relationships, but the dominant channel member controls the  channel relationship

-power: a situation that occurs in a marketing channel in which one member has the means or  ability to have control over the actions of another member in a channel at a different level of  distribution, such as if a retailer has power or control over a supplier

-reward power: a type of marketing channel power that occurs when the channel member  exerting the power offers rewards to gain power, often a monetary incentive, for getting  another channel member to do what it wants

-expertise power: when a channel member uses its expertise as leverage to influence the  actions of another channel member

-information power: a type of marketing channel power that occurs if the channel power that  occurs if the channel member exerting the power has info that the other channel member  wants or needs and can therefore get them to do what they want

-legitimate power: a type of marketing channel power that occurs if the channel member  exerting the power has a contract that requires the other channel member to behave in a  certain way (occurs in administered vertical system)

-contractual vertical marketing system: system in which independent firms at different levels of  the supply chain join together through contracts to obtain economies of scale and coordination  and to reduce conflict

-franchising: a contract between a franchiser and a franchisee that allows the franchisee to  operate a business using a home and format developed and supported by the franchiser -coercive power: threatening or punishing the other channel member for not undertaking  certain tasks, for example, delaying payment for late delivery

-referent power: a type of marketing channel power that occurs if one channel member wants t  be associated with another channel member. The channel member with whom the others wish  to be associated has the power and can get them to do what they want

-corporate vertical marketing system: a system in which the parent company has complete control and can dictate the priorities and objective

-strategic relationship (partnering relationship): a supply chain relationship that the members  are committed to maintaining long term, investing in opportunities that are mutually beneficial;  requires mutual trust, open communication, common goals, and credible commitments -universal product code (UPC): the black-and-white bar code found on most merchandise -advanced shipping notice (ASN): an electronic document that the supplier sends the retailer in  advance of a shipment to tell the retailer exactly in the shipment

-electronic data interchange (EDI): the computer-to-computer exchange of business documents  from a retailer to a vendor and back

-vendor-managed inventory (VMI): an approach for improving supply chain efficiency in which  the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its  stores

-push marketing strategy: designed to increase demand by motivating sellers-wholesalers,  distributors, or salespeople- to highlight the product, rather than the products of competitors,  and thereby bush the product to consumers

-pull marketing strategy: designed to get consumers to pull the product into the supply chain by  demanding it

-planners: in a retailing context, employees who are responsible for the financial planning and  analysis of merchandise, and its allocation to stores

-receiving: process of recording the receipt of merchandise as it arrives at a distribution center  or store

-radio frequency identification (RFID) tags: tiny computer chips that automatically transmit to a  special scanner all the info about a container’s contents or individual products -ticketing and marketing: creating price and identification labels and placing them on the  merchandise

-pick ticket: a document or display on a screen in a forklift truck indicating how much of each  item to get from specific storage areas

-just-in-time (JIT) inventory system: inventory management systems designated to deliver less  merchandise on a more frequent basis than traditional inventory systems

-quick response: an inventory management system used in trailing; merchandise is received just  in time for sale when the customer wants it

Managing Marketing Channels & Supply Chains Through Strategic Relationships -Mutual trust

-Open communication

-Common goals

-Interdependence

-Credible commitments

Marketing Info Flow Through Marking Channels 

-Flow 1 (customer to store)

-Flow 2 (store to buyer)

-Flow 3 (buyer to manufacturer)

-Flow 4 (store to manufacturer)

-Flow 5 (store to distribution center)

-Flow 6 (manufacturer to distribution center and buyer)

The Distribution Center 

-Managing inbound transportation

-Getting merchandise floor-ready

-Preparing to ship merchandise to a store

-Storing and cross-docking

Chapter 16: Retailing & Multichannel Marketing 

-retailing: the set of business activities that add value to products and services sold to  consumers for their personal or family use

-multichannel strategy: selling in more than one channel ex. Stores, internet, catalogs -distribution intensity: the # of supply chain members to use at each level of the supply chain -intensive distribution: a strategy designed to get products into as many outlets as possible -exclusive distribution: strategy in which only selected retailers can sell a manufacturer’s brand -selective distribution: lies between the intensive and exclusive distribution strategies; uses a  few selected customers in a territory

-conventional supermarket: type of retailer that offers groceries, meat, and produce with  limited sales of nonfood items, such as health and beauty aids and general merchandise, in a  self-service format

-stock keeping units (SKUs): individual items with each product category; the smallest unit  available for inventory control

-limited assortment supermarkets: retailers that offers only 1 or 2 brands or sized of most  products and attempt to achieve great efficiency to lower costs and prices, also called extreme  value food retailers

-supercenters: large stores combining full-line discount stores with supermarkets in one place -warehouse clubs: large retailers with an irregular assortment, low service levels, and low prices  that often require membership for shoppers

-convenience stores: type of retailer that provides a limited # of items at a convenient location  in a small store with a speedy checkout

-department stores: a retailer that carries many different types of merchandise (broad variety)  and lots of items within each type (deep assortment); offers some customer services and is  organized into separate departments to display its merchandise

-full-line discount stores: retailers that offer low prices, limited service, and a broad variety of  merchandise

-specialty stores: a type of retailer that concentrates on a limited # of complementary  merchandise categories in a relatively small store

-drugstores: a specialty store that concentrates on health and personal grooming merchandise,  though pharmaceuticals may represent more than 60% of sales

-category specialists: a retailer that offers a narrow variety but still a deep assortment of  merchandise

-big box retailers: discount stores that offer a narrow but deep assortment of merchandise -category killers: a specialist that offers an extensive assortment in a particular category, so  overwhelming the category that other retailers have difficulty competing -extreme value retailers: a general merchandise discount store found in lower-income urban or  rural areas

-off-price retailers: a type of retailer that offers an inconsistent assortment of merchandise at  low prices

-services retailers: a firm that primarily sells services rather than merchandise -exclusive co-brand: developed by national brand vendor and retailer and sold only by that  retailer

-mobile commerce (m-commerce): communicating with or selling to consumers through  wireless handheld devices such as cell phones

-cooperative (co-op) advertising: an agreement between a manufacturer and retailer in which  the manufacturer agrees to defray some advertising costs

-share of wallet: the percentage of the customer’s purchases made from a particular retailer -online class: instant messaging or voice conversation with an online sales representative

Benefits of Stores for Consumers 

-Browsing

-Touching/Feeling products

-Personal service

-Cash & Credit payment

-Entertainment & social experience

-Immediate gratification

Effective Multichannel Retailing 

-Integrated CRM

-Brand image

-Pricing

-Supply chain

Consumer Product Classes 

-Convenience products: staples, impulse products, emergency products

-shopping products: homogeneous shopping products, heterogeneous shopping products -Unsought products: new unsought products, regular unsought products

Business Product Classes 

-Installations

-Accessories

-Raw materials

-Professional services

-MRO (Maintenance Repair Operations)

-Component parts & materials

Warranty Policies 

-Promises in writing

-Service guarantee

-Support may be costly

-May improve marketing mix

-Magnuson-Moss Act

Factors Affecting Product Diffusion 

-Relative advantage

-Compatibility

-Trailability

-Observability

Total Distribution Cost 

D = T + FW + VW + S

D= total distribution costs

T= total freight costs

FW= total fixed warehouse costs

VW= total variable warehouse costs

S= total cost of lost sales

Chapter 3: Social and Mobile Marketing 

-social media: media content used for social interactions such as YouTube and Facebook -creators: hip, cool contributors who sit at the cutting edge and plan to stay there; social media  gives them new ways to post & share their creative, clever ideas

-bonders: social butterflies who use social media to enhance and expand their relationships,  which they consider all-important in their lives

-professionals: people who are constantly on the go, busy, and want to appear efficient, with  everything together, so they use social media to demonstrate just how smart they are -sharers: a type of consumer that uses social media sites and wants to help by being constantly  well informed, so they can provide genuine insights to others

-blog (Weblog): a Web page that contains periodic posts; corporate blogs are a new form of  marketing communications

-corporate blogs: a website created by a company and often used to educate customers -professional blogs: websites written by people who review and give recommendations on  products

-personal blogs: websites written by people that receive no products or remuneration for their  efforts  

-microblog: differs from a traditional blog in size; consists of short sentences, short videos, or  individual images ex. Twitter

-gamification: process of building customer loyalty through the offering of free apps -sentiment analysis: a technique that allows marketers to analyze data from social media sites  to collect consumer comments about companies and their products

-hits: a request for a file made by web browsers and search engines; “metric” for websites -page views: the # of times an internet page gets viewed by any visitor

-bounce rate: the percentage of times a visitor leaves the website almost immediately, such as  after only viewing one page

-click paths: shows how users proceed through the info on a website- not unlike how grocery  stores try to track the way shoppers move through their aisles

-conversion rates: % of consumers who buy a product after viewing it

-keyword analysis: an evaluation of what keywords people use to search on the internet for  their products and services

-social reach: a metric used to determine how many people a person influences ex. FB friends -influence: in a social media context, the extent to which the person influences others -extended network: in social media, it is the total number of people a person or entity reaches  or has influence over

The 4E Framework for Social Media 

-Excite the customer

-Educate the customer

-Experience the product/service

-Engage the customer

Types of Apps 

-Price Check Apps

-Fashion Apps

-Location-Based Gamified Apps

Components of Social Media Strategy 

-Listen, Analyze, Do

Chapter 17: Integrated Marketing Communications 

-integrated marketing communications (IMC): represents the promo dimension of the 4 P’s;  encompasses a variety of communication disciplines-general advertising, personal selling, sales  promo, PR, direct marketing, and media to provide clarity, consistency, and maximum impact

-sender: the firm from which an IMC message originates; the sender must be identified to the  intended audience

-transmitter: an agent or intermediary in which the sender works to develop the marketing  communications

-encoding: process of converting the sender’s ideas into a message, which could be verbal,  visual, or both

-communication channel: the medium-print, broadcast, the internet- that carries the message -receiver: person who reads, hears, or sees and processes the information contained in the  advertisement or message

-decoding: process by which the receiver interprets the sender’s message -noise: any interference that stems from competing messages, a lack of clarity in the message,  or a flaw in the medium

-feedback loop: allows the receiver to communicate with the sender and thereby informs the  sender whether the message was received and decoded

-AIDA model: a common model of the series of mental stages; Awareness, Interests, Desire,  Action

-brand awareness: measures how many consumers in a market are familiar with the brand and  what it stands for; created through repeated exposures of the various brand elements in the  firm’s communications to consumers

-aided recall: occurs when consumers recognize a name that has been presented to them -top-of-mind awareness: a prominent place in people’s memories that triggers a response  without them having to put any thought into it

-lagged effect: a delayed response to a marketing communication campaign -public relations: the organizational function that manages the firm’s communications to  achieve a variety of objectives, including building and maintaining a variety of objectives  including building and maintaining a positive image, handling unfavorable events, and  maintaining positive relationships with the media

-sales promotion: sales incentives or excitement building programs that encourage the  purchase of a product or service, such as coupons, rebates, contests, free samples, and point of-purchase displays

-advertising: paid form of communication from an identifiable source, delivered through a  communication channel, and designed to persuade the receiver to take some action either now  or in the future

-personal selling: the two-way flow of communication between a buyer and a seller that is  designed to influence the buyer’s purchase decision

-direct marketing: sales and promotional techniques that deliver promo materials individually -mobile marketing: marketing through wireless handheld devices

-objective-and-task method: an IMC budgeting method that determines the cost required to  undertake specific tasks to accomplish communication objectives; process entails setting  objectives, choosing media, and determining costs

-rule of thumb methods: budgeting methods that base the IMC budget on either the firm’s  share of the market in relation to competition, a fixed % of forecasted sales, or what is left after  operating costs and forecasted sales have been budgeted

-frequency: measure of how often the audience is exposed to a communication within a  specified period of time

-reach: measure of consumers’ exposure to marketing communications; the % of the target  population exposed to a specific marketing communication, such as ads, at least once -gross rating points (GRP): measure used for various media advertising; print, radio or tv -search engine marketing (SEM): a type of Web advertising whereby companies pay for  keywords that are used to catch consumers’ attention while browsing a search engine -impressions: # of times an ad appears in front of the user

-click-through rate (CTR): # of times a user clicks on an online ad divided by the # of impressions -relevance: in the context of the SEM, it is a metric used to determine how useful an ad is to the  consumer

-return-on-investment (ROI): sales revenue generated by the ad – ad cost / ad’s cost

Communication Process 

-Sender, transmitter, encoding, communication channel, receiver, noise, feedback loop

Elements of an Integrated Marketing Communication Strategy 

-Advertising

-Personal Selling

-Public Relations

-Sales Promotion

-Direct Marketing

-Online Marketing

Chapter 13: The Intangible Product 

-service: any intangible offering that involves a deed, performance or effort that can’t be  physically possessed

-customer service: specifically refers to human or mechanical activities firms undertake to help  satisfy their customer’s needs and wants

-inseparable: characteristic of a service; consumed and produced at the same time -heterogeneity: as it refers to the differences between the marketing of products and services,,  the delivery of services is more valuable

-perishable: can’t be stored for future use

-service gap: results when a service fails to meet the expectations that customers have about  how it should be delivered

-knowledge gap: a type of service gap; reflects the difference between customers’ expectations  and the firm’s perception of those perceptions

-standards gap: a type of service gap; pertains to the difference between the firm’s perceptions  of customers’ expectations and the service standards it sets

-delivery gap: type of service gap; refers to the difference between the firm’s standards and the  actual service it provides to customers

-communication gap: type of service gap; the difference between the actual service provided to  customers and the service that the firm’s promo program promises

-service quality: customers’ perceptions of how well a service meets or exceeds their  expectations

-voice-of-customer (VOC) program: an ongoing marketing research system that collects  customer inputs and integrates them into managerial decisions

-zone of tolerance: area between customers’ expectations regarding their desired service and  the minimum level of acceptable service

-empowerment: in context of service delivery, means allowing employees to make decisions  about how service is provided to customers

-emotional support: concern for others well-being and support of their decisions in a job setting -instrumental support: providing the equipment or systems needed to perform a task in a job  setting

-distributive fairness: pertains to a customer’s perception of the benefits he or she received  compared with the costs that resulted from a service failure

-procedural fairness: refers to the customer’s perception of the fairness of the process used to  resolve complaints about service  

Five Service Quality Dimensions 

-Reliability

-Responsiveness

-Assurance

-Empathy

-Tangibles

Service Recovery Strategies 

-Listening to the customers and involving them in the service recovery

-Finding a fair solution

-Resolving problems quickly

Chapter 14: Pricing Concepts for Establishing Value 

-price: the overall sacrifice a consumer is willing to make- money, time, energy- to acquire a  product or service

-profit-orientation: a company objective that can be implemented by focusing on target profit  pricing, maximizing profits, or target return pricing

-maximizing profits: relies primarily on economic theory; if a firm can accurately specify a math  model that captures all the factors required to explain and predict sales/profits -target return pricing: implemented by firms less concerned with the absolute level of profits  and more interested in the rate at which their profits are generated relative to their  investments

-sales orientation: company objective based on the belief that increasing sales will help the firm  more than increasing profits will

-premium pricing: competitor-based pricing method by which the firm deliberately prices a  product above the prices set for competing products to capture those consumers who always  shop for the best or for whom price doesn’t matter

-competitor orientation: a company objective based on the premise that the firm should  measure itself primarily against its competition

-competitive parity: a firm’s strategy of setting prices that are similar to major competitors -status quo pricing: competitor-oriented strategy in which a firm changes prices only to meet  those of competition

-customer orientation: company objective based on the premise that the firm should ensure  itself primarily according to whether it meets its customers’ needs

-demand curve: shows how many units of a product or service consumers will demand during a  specific period at different prices

-prestige products/services: consumers purchase for status rather than functionality -price elasticity of demand: measures how changes in a price affect the quantity of the product  demanded (% change in quantity demanded / % change in price)

-elastic: refers to a market for a product or service that is price sensitive; a small change in price  will generate fairly large changes in the quantity demanded

-inelastic: refers to a market for a product or service that is price insensitive -income effect: refers to the change in the quantity of a product demanded by consumers due  to a change in their income

-substitution effect: refers to consumers’ ability to substitute other products for the focal  brand, thus increasing the price elasticity of demand for the focal brand

-cross price elasticity: the % change in demand for product A that occurs in response to a %  change in price of product B

- complementary products: products who’s demand curves are positively related, such that  they rise or fall together; % increase in demand for one results in a % increase for the other -substitute products: products for which changes in demand a negatively related; % increase in  demand for product A results in a % decrease in the quantities demanded the product B - variable costs: those costs, primarily labor and materials, that vary with production volume -fixed costs: those costs that remain essentially at the same level, regardless of any changes in  volume of production

-total cost: sum of variable and fixed costs

-break-even analysis: technique used to examine the relationships among price, cost, revenue,  and profit over different levels of production and sales to determine the break-even point -break-even point: the point at which the number of units sold generates just enough revenue  to equal the total cost; profits are zero

-attribution per unit: equals the price less the variable cost per unit; variable used to determine  the break-even point in units

-monopoly: one firm provides the product or service in a particular industry -oligopolistic competition: occurs when only a few firms dominate a market -predatory pricing: a firms practice of setting a very low price for one or more of its products  with the intent to drive its competition out of business; illegal under the Sherman Antitrust Act  and the Federal Trade Commission Act

-monopolistic competition: occurs when there are too many friends that sell closely related but  not homogeneous products; they may be viewed at substitutes that aren’t perfect substitutes -pure competition: occurs when different companies sell commodity products that consumers  perceive as substitutable; price usually is set according to the laws of supply and demand

-gray market: employs irregular but not necessarily illegal methods; generally, it legally  circumvents authorized channels of distribution to sell goods at lower prices than intended by  the manufacturer

-price war: occurs when 2+ firms compete primarily by lowering prices

-every day little pricing (EDLP): strategies companies use to emphasize the continuity of their  retail prices and a level somewhere between a regular, non-sale price and the deep-discount  sale prices their competition may offer

-high/low pricing: a pricing strategy that relies on the promotion of sales, during which prices  are temporarily reduce to encourage purchases

-reference price: price against which buyers compare the actual selling price of the product that  facilitates their evaluation process

-market penetration strategy: a growth strategy that employs the existing marketing mix and  focuses the firm’s efforts on existing customers

-experience curve: refers to the drop in unit cost as the accumulated volume sold increases -price skimming: a strategy of selling a new product or service at a high price that innovators  and early adopters are willing to pay in order to obtain it

-loss leader pricing: loss leader pricing takes the tactic of leader pricing one step further by  lowering the price below the store’s cost

-bait-and-switch: a deceptive practice of luring customers into the store with a very low  advertised price on an item, only to aggressively pressure them into purchasing a high-priced  model by disparaging the low-priced item, or professing an inadequate supply of the lower priced item

-price discrimination: the practice of selling the same product to different resellers or to the  ultimate consumer at different prices; some, but not all, forms are illegal -price fixing: the practice of colluding with other firms to control prices

-horizontal price fixing: occurs when competitors that produce and sell competing product  collude, or work together, to control prices, effectively taking price out of the decision process  for consumers.  

-vertical price fixing: occurs when parties at different levels of the same marketing channel  collude to control the prices passed on to consumers

-manufacturer’s suggested retail price (MSRP): the price that manufacturers suggest retailers  use to sell their merchandise

Pricing Orientations 

-Profit orientation

-Sales orientation

-Competitor orientation

-Customer orientation

Types of Price Competitive Levels 

-Monopoly

-Oligopolistic competition

-Monopolistic competition

-Pure competition

Chapter 6: Consumer Behavior 

-need recognition: the beginning of the consumer decision process; occurs when consumers  recognize they have an unsatisfied need and want to go from their actual, needy state to a  different, desired state

-functional needs: pertain to the performance of a product or service

-psychological needs: pertains to the personal gratification consumers associate with a product  or service

-internal search for information: occurs when the buyer examines his or her own memory and  knowledge about the product/service, gathered through past experiences -external search for information: occurs when the buyer seeks information outside his or her  personal knowledge base to help make the buying decision

-internal locus of control: refers to when consumers believe they have some control over the  outcomes of their actions, in which case they generally engage in more search activities -external locus of control: refers to when consumers believe that fate or other external factors  control all outcomes

-performance risk: involves the perceived danger inherent in a poorly performing  product/service

-financial risk: risk associated with a monetary outlay; includes the initial cost of the purchase as  well as the costs of using the item

-social risk: fears that consumers suffer when they worry others might not regard their  purchases positively

-physiological risk: fear of an actual harm should a product not perform properly -psychological risk: associated with the way people will feel If the product does not convey the  right image

-universal sets: includes all possible choices for a product-category

-retrieval sets: includes those brands or stores that the consumer can readily bring forth from  memory

-evoked set: comprises the alternative brands or stores that the consumer states he or she  would consider when making a purchase decision

-evaluative criteria: consist of a set of salient, or important, attributes about a particular  product

-determinant attributes: product or service features that are important to the buyer and on  which competing brands or stores are perceived to differ

-consumer decision rules: the set of criteria that consumers use consciously or subconsciously  to quickly and efficiently select from among several alternatives

-compensatory decision rule: at work when the consumer is evaluating alternatives and trades  off one characteristic against another, such that good characteristics compensate for bad ones -multi-attribute model: a compensatory model of customer decision making based on the  notion that customers see a product as a collection of attributes or characteristics -noncompensatory decision rule: at work when consumers choose a product or service on the  basis of a subset of its characteristics, regardless of the values of its other attributes -conversion rates: % of consumers who buy a product after viewing it

-postpurchase cognitive dissonance: the psychologically uncomfortable state produced by an  inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the  dissonance

-negative word of mouth: occurs when consumers spread negative info about a product to  others

-motive: a need or want that is strong enough to cause the person to seek satisfaction -Maslow’s Hierarchy of Needs: classifies people’s motives (physiological, safety, love, esteem,  self-actualization)

-attitude: a person’s enduring evaluation of their feels about behavioral tendencies toward an  object or idea

-cognitive component: a component of attitude that reflects what a person feels about the  issue at hand

-behavioral component: component of attitude that comprises the actions a person takes with  regard to the issue at hand

-lifestyle: refers to the way a person lives his or her life to achieve goals

-reference group: one or more persons who m an individual uses as a basis for comparison  regarding beliefs, feelings, and behaviors

-extended problem solving: a purchase decision process during which the consumer devotes  considerable time and effort to analyzing alternatives

-limited problem solving: occurs during a purchase decision that calls for a moderate amount of  effort and time

-impulse buying: a buying decision made by customers on the spot when they see the  merchandise

-habitual decision making: a purchase decision process in which consumers engage with little  effort

Consumer Buying Process 

-Need recognition

-Information search

-Alternative evaluation

-Purchase

-Post purchase

Chapter 7: Business-to-Business Marketing 

-business-to-business marketing (B2B): the process of buying and selling goods or services to be  used in the production of other goods and services

-derived demand: linkage between consumers’ demand for a company’s output and its  purchase of necessary inputs to manufacture of assemble that particular output -resellers: marketing intermediaries that resell manufactured products without significantly  altering their form

-wholesalers: those firms engaged in buying, taking title to, often storing, and physically  handling goods in large quantities, then reselling the goods to retailers or industrial or business  users

-distributors: a type of reseller or marketing intermediary that resells manufactured products  without significantly altering their form

-request for proposals (RFP): process through which buying organizations invite alternative  suppliers to bid on supplying their required components

-web portal: internet site whose purpose is to be a major starting point for users when they  connect to the web

-buying center: group of people typically responsible for the buying decisions in large  organizations

-initiator: buying center participant who first suggests buying the particular product -influencer: buying center participant whose views influence other members of the buying  center in making the final decision

-decided: buying center participant who ultimately determines any part of the buying situation -gatekeeper: buying center participant who controls info or access to decision makers and  influencers

-organizational culture: reflects the set of values, traditions, and customs that guide a firm’s  employees’ behavior

-autocratic buying center: a buying center in which one person makes the decision alone,  though there may be multiple participants

-democratic buying center: a buying center in which the majority rules in making decisions -consultative buying centers: buying center in which one person makes the decision but they  solicit input from others before doing so

-consensus buying center: buying center in which all members of the team must reach a  collective agreement that they can support a particular purchase

-new buy: a purchase of a good for the first time

-modified rebuy: buyer has purchased a similar product in the past but has decided to change  some specifications

-straight rebuys: refers to when the buyer or buying organization simply buys additional units of  products that have been previously been purchased

Steps In B2B Buying Process 

1. Need Recognition

2. Product Specification

3. RFP Process

4. Proposal Analysis, Vendor Negotiation, & Selection

5. Order Specification

6. Vendor Performance Assessment Using Metrics

Chapter 4: Marketing Ethics 

-business ethics: a branch of ethical study that examines ethical rules and principles within a  commercial context, the various moral or ethical problems that might arise in a business setting -marketing ethics: ethical problems that are specific to the domain of marketing -ethical climate: set of values within a marking firm that guide decision making & behavior

-corporate social responsibility: the voluntary actions taken by a company to address the  ethical, social, and environmental impacts of its business operations and the concerns of its  stakeholders

-locational privacy: person’s anility to move normally in public spaces within the expectation  that his or her location will not be recorded for subsequent use

Chapter 8: Global Marketing 

-globalization: process where goods, services, capital, people, information, and ideas flow  across national borders

-trade deficit: results when a country imports more than it exports

-trade surplus: results when a country has a higher level of exports than imports -gross domestic product (GDP): the market value of the goods and services produced by a  country in a year

-gross national income (GNI): GDP plus the net income earned from the investments abroad -purchasing power parity (PPP): theory that states that if the exchange rates of two countries  are in equilibrium, a product will cost the same in the other, expressed in the same currency -infrastructure: basic facilities, services, and installations needed for a community or society to  function, such as transportation and communication systems, post offices, etc.  -tariff: tax leveled on a good imported into a country

-quota: designates the max quantity of a product that may be brought into a country during a  specified time period

-exchange control: refers to the regulation of a country’s currency exchange rate -exchange rate: measure of how much one currency is worth in relation to another -trade agreements: intergovernmental agreements designed to manage and promote trade  activities for specific regions

-trading bloc: consists of those countries that have signed a particular trade agreement -exporting: producing goods in one country and selling them in another

-franchising: a contract between a franchisor and a franchisee that allows the franchisee to  operate a business using a name and format developed and supported by the franchisor -strategic alliances: collaborative relationship between independent firms, though the  partnering firms do not create an equity partnership

-joint venture: formed when a firm entering a new market pools its resources with those of a  local firm to form a new company in which ownership, control, and profits are shared -direct investment: when a firm maintains 100% ownership of its plants, operation facilities,  and offices in a foreign country, through the formation of wholly owned subsidiaries -glocalization: process of firms standardizing their products globally, but using different promo  campaigns to sell them

-reverse innovation: when companies initially develop products for niche or underdeveloped  markets, and then expand them into their original or home markets

Components of Country Market Assessment 

-Economic analysis using metrics (general economic environment, market size and population  growth, real income)

-Sociocultural analysis (power distance, uncertainty avoidance, individualism, masculinity, time  orientation)

-Infrastructure and technology (transportation, channels, communication, commerce) -Government actions (tariff, quota, exchange control, trade agreement)

Market Entry Strategies 

-Exporting

-Franchising

-Strategic Alliance

-Joint Venture

-Direct Investment

Chapter 19: Personal Selling and Sales Management 

-relationship selling: sales philosophy and process that emphasizes a commitment to  maintaining the relationship over the long term and investing in opportunities that are mutually  beneficial to all parties

-leads: list of potential customers

-qualify: process of assessing the potential of sales lead

-trade shows: major events attended nu buyers who choose to be exposed to products and  services offered in potential suppliers in an industry

-cold calls: method of prospecting in which salespeople telephone or go to see potential  customers without appointments

-telemarketing: method of prospecting in which salespeople telephone potential customers -preapproach: in personal selling, occurs prior to meeting the customer for the first time and  extends the qualification of lead procedure

-role playing: good technique for practicing sales presentation prior to meeting with a customer -closing the sale: obtaining a commitment from the customer to make a purchase -sales management: involves the planning, direction, and control of personal selling activities,  including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply  to the sales force

-company sales force: comprised of people who are employees of the selling company and are  engaged in the selling process

-independent agents: salespeople who sell a manufacturer’s products on an extended contract  basis but are not employees of the manufacturer

-order getter: salesperson whose primary responsibilities are identifying potential customers  and engaging those customers in discussions to attempt to make a sale

-order taker: salesperson whose primary responsibility is to process routine orders or reorders  or rebuys for products

-sales support personnel: employees who enhance and help with a firm’s overall selling effort,  such as by responding to the customer’s technical questions or facilitating repairs -selling teams: combinations of sales specialists whose primary duties are order getting, order  taking, or sales support but who work together to service important accounts -salary: compensation in the form of a fixed sum of money paid at regular intervals

-commission: compensation or financial incentive for sales people based on a fixed % of their  sales

-bonus: payment made at management’s discretion when the salesperson attains certain goals -sales contest: short-term incentive designed to elicit a specific response from the sales force

Personal Selling Process 

1. Generate and Qualify Leads

2. Preapproach

3. Sales Presentation and Overcoming Reservations

4. Closing the Sale

5. Follow-Up

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