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MKT 492 FINAL
Final notes
55
Marketing
Undergraduate 4
06/01/2011

Additional Marketing Flashcards

 


 

Cards

Term

·         In-store sales begin at home

Definition

o   Targeting online

§  Groceries, diapers

o   In store retailer (shacchi)

§  100% online component

§  Use things like blog and twitter

Term
Wal-Mart tests home delivery
Definition

o   Buy products online at Wal-mart and then have them delivered for a small fee

§  Includes medicines

o   Bought startup company

§  To help out with social media

Term

·         What are new products? (5)

Definition

o   New-to-the-world products

§  Example: Segway

o   New category entries for a company

§  Example: Apple: IPod, IPhone

o   Additions to product lines

§  Example: Cherry Coke

o   Product Improvements

§  Example: Windows-Vista

o   Repositioning

§  Example: Arm & Hammer

·         Started out to be for baking, and now it’s for cleaning purposes also

 

 

Term

·         Why do new products fail? (5)

Definition

o   Faulty estimates of market potential

§  Example: Microsoft Zume

·         Mp3 player

·         Didn’t sale as much as they thought it would

o   Poor product quality

o   Poor execution of the marketing mix

o   Poor positioning of the product

§  Have the wrong target market

o   Bad timing

§  Example: the infamous edsel

·         Took 9 years to make and people’s preferences changed

·         Had to close entire division

Term

·         New Product Development Process

Definition

o   Idea generation

o   Idea screening

o   Project planning

o   Product development

o   Test marketing

o   Commercialization

Term

·         Test Marketing

Definition

o   Is the limited introduction of the new product in areas chosen to represent the intended market

o   Done in selective cities

o   It allows marketers to identify weakness in the marketing mix

Term

o   Risks of test marketing

Definition

§  Competitors may sabotage the testing program

·         Example: come up with promotions for an alternative product

§  Competitors may copy the product

Term

o   Market test

Definition

§  Place the product with an existing product in the stores

§  Most expensive

§  More realistic environment

Term

o   Scanner-based tests

Definition

§  Data is gathered from checkout stands

§  Less realistic than the market test

·         Because you are missing out on stores

o   Some stores don’t have checkout stands

Term

o   Simulated tests

Definition

§  Bring groups of people to a private location to test them

§  Helps prevent the competition from copying what you are doing or sabotaging

§  The least expensive

Term

·         Social Media 

Definition

o   Describes the online technologies that people use to share content, opinions, insights, and experiences

o   Social media have been created for the purpose of sharing information

o   Social media marketing = people + messages + internet

Term

·         Content-based social media marketing 

Definition

o   Focus is on content to be posted and passed around: blogs, videos, photos, news stories Digg, YouTube

Term

·         Personality-based social media marketing 

Definition

o   Consumer companies create character profiles and target them Facebook, MySpace

Term
Internet-based social media marketing 
Definition

o   Communities form around topics of interest, such as message boards

o   Marketers must get into these conversations

§  Google, Yahoo Groups

Term

·         Fantasy-based social media marketing 

Definition

o   Virtual worlds, inhabited by avatars, allow fantasy lives that marketers wish to be a part of

o   Second Life, Webkinz

Term

·         Twitter

Definition

o   Is a Micro-blog

o   140 character limit

o   Sign up and “follow” posters

o   Post “tweets” about anything

o   Include links to other information

o   “Retweet”

Term

·         Blogs:

Definition

o   Blogging tells a story

o   Allowing comments is optional

o   Commenting promotes trust and openness

o   Blogs can contain photos or videos

o   Blogs can include links to FB or other sites

Term

·         YouTube

Definition

o   Bought for 1.6 billion

o   Videos limited to 10 min./1GB

o   Your message cannot be altered by the audience

Term

Some Social Media Issues:

Definition

·         They cannot control the message once it goes viral

·         The message can be changed, rebutted, and misconstrued by the audience

·         Blogs may not contain any company’s confidential info

·         All blogs must be approved by their managers

·         Blogs may not contain any advertising

Term
Managing Social Media
Definition

·         Have privacy policies

·         Funnel all public information to one person/department

·         Have only one account for each tool

·         Multiple accounts creates inconsistent messages

·         Have a communication plan that includes social media

 

 

Term

WINIM

Definition

·         Microsoft is buying Skype

o   8 Billion dollars

·         OOMA.com

o   Rated best service

§  Better than regular land lines

o   Onetime fee

Term

·         Firms home

Definition

o   Low cost places like China and Mexico

o   Trades are raising in China

§  15% annual wage growth

o   BCG-Boston Consulting Group

§  Stated that it might make since to put plants in U.S.

o   Trends might reverse with outsourcing

§  Outsourcing might be switched back to U.S.

·         The salaries have gone up oversees

·         Makes U.S. pay more for outsourcing

§  Productivity is increasing

Term

·         Why pay full prices

Definition

o   Retailer’s rewards programs

o   Purpose

§  To improve marketing efforts

§  Keeps good customers happy

o   Earn points and give back with discounts

o   Program started in grocery stores in the 1990s

§  Kroger plus card

§  CVS extra care card

o   Some companies are using social media

o   Personalized coupons

Term

·         Price comments

Definition

o   Publicly announced pricing hikes

o   Broken law

§  Price law

·         Permits you from publishing information to customers

o   Unilever

o   Pricing going up because of commodities

o   Pricing has angered people and the government fears it

o   In China, they have the price law

§  To prevent price inflation

Term
Some consumer goods channels
Definition

o   Producer, agent & brokers, wholesaler, retailer, consumer

§  Agent & brokers don’t own the goods

·         Agents are long-term basis

·         Brokers are short-term basis

Term
Consumer good channels
Definition

o   Channel A

§  Producer to consumer

o   Channel B

§  Producer to retailer

o   Channel C

§  Producer to wholesaler

Term

·         Latest location data

Definition

o   Cell phones have been transmitting your location to your provider

§  Shopping malls are experimenting how to use it

o   In march iPhones were keeping databases

§  Apple said that they weren’t doing that

o   Tom-Tom

§  Apologized for using it

o   Checks to see who gets the most foot traffic

o   Apple and Google wants to do “real time movement”

Term

·         Microsoft Dials up Change

Definition

o   They bought Skype for 8.5 billion dollars

o   Biggest investment they made in years

o   Price was 3x greater than what Skype asked for

o   Microsoft wants to incorporate Skype into everything

Term

·         Now Google offers web and music

Definition

o   Lets people rent movie and listen to music on the internet

o   Announced one day after YouTube stated their new channel

o   Good for competition

o   Google’s movies are going to be a 1.99 to rent

o   Music efforts more ambitious

o   Customers can test the music beta

o   Can upload 20,000 songs

§  Free for now

·         Only to the people they picked to test it

Term

Why producers establish marketing channels?

Definition

·         Producers lack financial resources for direct marketing

·         Direct marketing is not feasible for many products

·         Using channels frees money for investment in main business

·         Intermediaries are more efficient

o   They sell more than one product

Term

·         Forward flow logistics:

Definition

o   Disseminate communication

o   Store and move the physical products

§  Physical distributions

§  Example: wholesalers and even retailers

Term

·         Reverse flow logistics:

Definition

o   Place orders with manufactures

o   Facilitate payments of bills

§  Example: retailers would pay manufacturers

Term

Handling Product Returns:

Definition

·         Retailers and mfrs. Struggle with handling and processing returns

·         Handling returns is not a strategic core competency for mfrs or retailers

·         It is a small part of their business processes

·         Have difficulty in understanding and controlling costs

·         There is no good system for managing the return processes

·         Process of handling returns is slow

·         Inability to track or monitory inventory levels of returned units

·         Very few good channels exist to get value from their returned units

Term

·         McDonalds and touchscreens

Definition

o   You can order from a touchscreen instead of ordering from the associates

o   Going to save them about 4 seconds per person

o   Saving about 2,000 hours per day

o   Test marketing in the UK

Term

How Reverse Logistics Differs from Forward Logistics

Definition

·         Open box- the units are usually returned due to a problem

·         Single units- the returned units often do not arrive in bulk on pallets

·         Verification at Receiving- to ensure the expected product matches the actual received product

·         Inspection and Grading

·         Reconditioning- many returned items just require basic testing and repackaging

Term
Open box
Definition
- the units are usually returned due to a problem
Term
Single units
Definition

·         the returned units often do not arrive in bulk on pallets

Term
Verification at Receiving
Definition
to ensure the expected product matches the actual received product
Term
Reconditioning
Definition
many returned items just require basic testing and repackaging
Term
Sam’s Club
Definition

o   Increasing in sales for the past 3 quarters

o   Wal-mart has been decreasing in sales

§  Sam’s accounts for 12% of sales in the Wal-Mart chain

o   Quality in Sam’s Club has increased

o   Sam’s Club has Wi-Fi

o   Still lack’s behind Costco

Term

·         Facebook & Microsoft

Definition

o   Using Bing to tailor search engine with Facebook

o   Social Signals

§  Endorsing what you like

o   Showing on Bing what your friends “like”

Term

·         McDonald’s to fire Ronald

Definition

o   People want to retire Ronald

o   Presented in a letter

Term

·         Check out the future of shopping

Definition

o   Customers will scan items as they put it in the cart

§  Self-check out scanning

o   Alerts when there is a coupon

o   They spend 10% more

o   Scanners can cut budgets

Term

Trade Deals for consumer goods (6)

Definition

·         Free goods

·         Cooperative advertising allowances

·         Display Allowances

·         Terms or inventory financing. The manufacturer may not require payment for 90 days

·         Count-recount:

·         Slotting allowances

Term
Count-recount
Definition

·         paying retailers on the number of units sold rather than the number of units ordered

o   Example: count at beginning of month and then recount and then you pay only on what you sold

Term
Slotting allowances
Definition

·         Mfrs. Pay the retailers for allocating space in the retail stores for their new products

Retailers also may demand Exit Fee from mfrs

Term

·         Came out with a device to make transactions

Definition

o   Inserted in your smart phones & download app

§  Customer slides card

·         App shows how much you want to charge for transactions

·         Have to pay nominal consumptions

o   Credit card payments from your iPhone

Term

·         Market segmentation

Definition

o   Is the division of buyers into groups (segments), enabling a company to tailor the marketing program

Term

·         Problems with single pricing strategy

Definition

o   Less profit as some consumers are willing to pay more

o   Cannot satisfy the entire market with one price

o   Failing to serve many buyers leaves the market wide open for competitors

Term
Approaches to segmented pricing
Definition

Segmenting by buyer identification

o   Segmenting by purchase location

o   Segmenting by time of purchase

o   Segmenting by purchase quantity

Term

o   Segmenting by buyer identification

Definition

§  Segment by obvious characteristics that distinguish buyers

·         Examples: barbers, hotels

§  Sometimes this can lead to complaints due to subjective factors

§  More effective with objective indicators

Term

o   Segmenting by purchase location

Definition

§  Example doctor, kings island, airlines

§  Segmentation based on distance (location) is very common for may tangible products

§  FOB (Free on Board) Vs. Freight absorption strategies

·         (FOB) Buyer will handle all the costs

o   Example: transportation, shipping, etc.

·         Freight absorption

o   Seller will take care of shipping

Term
FOB (Free on Board) Vs. Freight absorption strategies
Definition

·         (FOB) Buyer will handle all the costs

o   Example: transportation, shipping, etc.

·         Freight absorption

o   Seller will take care of shipping

Term

o   Segmenting by time of purchase

Definition

§  Example: theaters, restaurants, airlines, cell phone calls

§  Also useful to manage the peak-load problems

·         Example: Airlines

Term

o   Segmenting by purchase quantity

Definition

§  Done by pricing with quantity discounts

§  Costs less to serve customers buying large quantity

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