Term
| **natural foods (smaller stores) channel systems |
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Definition
| manufacturer -> wholesalers -> distributors -> retailers -> consumer |
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Term
| **supermarkets channel systems |
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Definition
| manufacturers -> distributors -> retailers -> consumer |
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Term
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Definition
fee charged to put a product into the distribution channel AND monitor it's performance
(nobody wants an ill product taking up space in their store) |
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Term
| what is a trade promotion expense? |
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Definition
a joint promotion
ex. Ralphs with Danon Yogurt...
Danon is advertised in Ralphs flyer (newspaper, etc) |
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Term
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Definition
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Term
| calculation for selling price |
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Definition
| selling price = cost/(%margin/100) |
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Term
| know/understand each option |
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Definition
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Term
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Definition
alienating channel partners
attracting deep pocketed supermarket competitors
lack of organizational experience for this channel |
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Term
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Definition
all the same as option 1 plus...
32 ounce size merchandised in bottom well impacting visibility |
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Term
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Definition
missing this window of opportunity to enter the supermarket channel
(due to competitive preemption-- limiting revenue growth)
this option represents a much smaller market |
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Term
| what considerations did natureview farms have? |
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Definition
revenue goal is key
loyalty to the natural foods channel
marketing strategies don't transfer from one channel (store format) to another
demand for organic food is growing |
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Term
| what three things are required for revenue? |
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Definition
advertising cost
sales people
number of regions required |
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Term
| always keep the _______ in mind |
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Definition
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Term
| the three options take into account... |
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Definition
| the financials such as the components we considered (sales grown, advertising, etc.) |
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Term
| when comparing options, you have to consider... |
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Definition
| the reactions of all channel members (wholesalers, distributors, retailers, brokers, etc.) |
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Term
|
Definition
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Term
| why is ikea so successful? |
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Definition
| reverse positioning strategy |
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Term
| what is reverse positioning strategy? |
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Definition
a positioning that runs counter to the rest of the market
1) Withholds elements of the expected value proposition
2) But supplements the stripped-down value proposition with highly augmented attributes
(some of the highly augmented attributes may not even be offered by high end competitors) |
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Term
| the augmented product concept |
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Definition
basic product
expected product (hairdryer in hotel)
augmented product (things in hotel that are above and beyond)
potential product (down the road in the future) |
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Term
examples of ikeas reverse positioning
"withhold elements of the expected value proposition" -- |
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Definition
no in-store sales assistance
limited variety (remember the matrix)
substandard quality (america, don't be sad it is a lamp) |
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Term
examples of ikea's reverse positioning
"but supplement the stripped-down value proposition with highly augmented attributes"-- |
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Definition
drop off children at beautiful day care center
lunch at the delightful cafe
cheery, airy ultra modern look and feel |
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Term
Ikea is actually very _____ in many ways.
Because of Ikea's ______, this allows them to create a ________ toward _________. |
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Definition
Ikea is actually very deficient in many ways
Because of Ikea's unique combination of benefits, this allow the company to create a highly-compelling value proposition targeting toward a very specific type of customer
Reverse Positioning |
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Term
| what forces led to the rise of non-traditional marketing approaches? |
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Definition
rising cost of media advertising
(approx. 50% between 1990 and 1999)
Losing control over Traditional Advertising
(zapping and specialized networks)
Consumer overload of Standardized Advertisements
(1500 to 5000 daily?) |
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Term
Integrated Marketing Communications--
The following work in combination to provide clarity, consistency, and maximum communication impact |
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Definition
| the four components of promotion |
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Term
| Hierarchy of Effects Model |
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Definition
Create Awareness
Provide Knowledge
Create a Favorable Impression
Attain a Preferred Position in the Customer's Mind
Create a Purchase Intent |
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Term
|
Definition
1. Market
(to whom?)
2. Mission
(what is your objective?)
3. Message
(what must be communicated? different customers may need different messages)
4. Media
(usually more than one)
5. Money
(what is your budget?)
6. Measurement |
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Term
|
Definition
enthusiastic about product or promotion campaign
to develop all of the 6 M's before starting the campaign |
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Term
what marketing communications uses the hierarchy of effects model?
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Definition
| traditional marketing communications |
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Term
| traditional marketing communications advertising is... |
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Definition
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Term
| metrics for media placement in traditional marketing communications |
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Definition
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Term
| traditional marketing communications objectives and performance |
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Definition
| objectives are quantified and performance is is tracked |
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Term
| metrics for evaluating advertising in traditional marketing communications |
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Definition
increase in awareness can be measured
recall can be measure-- such as 15% recall |
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Term
| examples of non-tradional marketing communications |
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Definition
cross promotions (ex. product placements)
place-based promotions (audience-captive)
sponsorships (associate brand with event, team) |
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Term
| non-traditional marketing communications attributes |
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Definition
flexible, opportunism, intuition
disproportionate emphasis on awareness/buzz
hard to move consumers from "desire to action stage" from the Hierarchy of Effects Model
No strictly defined target
brand-as-cultural-icon |
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Term
| what is viewed as more credible to consumers? traditional or non-traditional communications |
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Definition
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Term
| what generates PR and is more efficient-- traditional or non-traditional? |
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Definition
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Term
| what skills are needed for non-traditional communications? |
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Definition
scenario planning
negotiation skills
execution |
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Term
| what is difficult in non-traditional communications? |
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Definition
difficult to control
difficult to evaluate or measure |
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Term
| what is a risk of non-traditional communications? |
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Definition
| risk of negative association |
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Term
| what is uncertain in non-traditional communications? |
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Definition
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Term
| what is non-traditional communications best for? |
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Definition
product launches
emotional products
high-clutter industries |
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Term
| non-traditional marketing is not good for ______ in the hierarchy of effects model |
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Definition
| non-traditional marketing is not good for "action" in the hierarchy of effects model |
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Term
| the 6 m's of communication-- you have to determine this before...? |
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Definition
| before beginning any aspect of promotions!!! |
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Term
| the 6 m's of communication-- you have to determine this before...? |
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Definition
| before beginning any aspect of promotions!!! |
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Term
| what are the three forces leading to non-traditional marketing approaches? |
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Definition
1) rising cost of media advertising
2) losing control over traditional advertising
3) consumer overload of standardized advertisements |
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Term
| what are the perceived benefits associated with non-traditional marketing approaches? |
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Definition
viewed as more credible by consumers
generates PR
more efficient (not viewed as an ad) |
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Term
| look at the marketing process slide! |
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Definition
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Term
|
Definition
flex pricing
consequences of commission
competitor reactions
discounts |
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Term
| what customers should get discounts and flex pricing? |
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Definition
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Term
| what customers should pay high prices and who should pay low prices? |
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Definition
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Term
| cases: services vs products |
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Definition
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Term
| cases: products vs services |
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Definition
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Term
| cases: business to business consumers (B to B) |
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Definition
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Term
| cases: business to consumers (B to C) |
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Definition
| bmw z3, ikea, natureview, bullfrog |
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Term
| cases: domestic and international |
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Definition
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Term
| phases of the product lifecycle slide |
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Definition
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Term
| three steps of multiple points of differentiation |
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Definition
1) find all points of contact with consumer== then map a consumption chain
2) consider consumers' experience at the point of contact
3) find new point of difference at each link (or point of contact) |
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Term
| does non-traditional advertising succeed in the hierarchy of effects model? |
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Definition
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|
Term
managing customer profitability:
you have to know your ____ to determine which customers are profitable
why do you need to charge some customers more than others?
you have to be good at determining your ____ first!
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Definition
you have to know your costs to determine which customers are profitable
you need to charge some customers more than others because they take more time and effort
you have to be good at determining your costs first |
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Term
|
Definition
look for strengths and weaknesses in the brands
give brands a grade on a brand report card |
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Term
| what are the outcomes of the brand report card |
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Definition
exploits strengths of the brand
works on the weaknesses of the brand before competitors |
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Term
brand person relationships--
consumers have a relationship with...
they use what?
be careful in changing what?
can use info to determine what? |
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Definition
consumers have relationships with consumer goods
use relationship terminology
be careful in changing products, sizes and services
can use info to determine target markets and segments |
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Term
| when adding a new product... |
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Definition
what do I tell customers now?
we have to retrain the sales force
does the company policy need to be changed? |
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Term
| guidelines to determine if a product is a good fit with the company |
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Definition
technological skills of labor and management
size of the work force
financial resources
production resources and capacity
logistic facilities
feasibility of using existing sales force and distribution channels
seasonability of demand patterns for existing products
needs and behavior of existing consumers
impact on the market position of the firm's other products
consistency with the organization's existing image |
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Term
| what is reverse positioning? |
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Definition
a positioning that runs counter to the rest of the market
1) withhold elements of the expected value proposition
2) but supplements the stripped-down value proposition with highly augmented attributes
some of the highly augmented attributes may not even be offered by high end competitors
(not a big deal for big companies, but a big deal for smaller ones) |
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Term
| decisions about distribution and calculating margins |
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Definition
deciding to distribute through supermarkets or natural food stores to meet financial goals
determine the channel members costs |
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Term
| YOU will make decisions about |
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Definition
people
wages
benefits such as health insurance
unions
environmental impact |
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Term
| how much is a slotting fee? |
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Definition
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Term
give examples of companies that use a reverse positioning strategy.
Describe why it is a reverse positioning strategy in their industry? |
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Definition
Jet Blue- few airports, no meals, no round trip tickets prices....BUT a high end entertainment center
Target Stores |
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Term
| Name two pros and two cons of nontraditional marketing |
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Definition
Pros
more credible than traditional
generates PR
more efficient
Cons
difficult to control
difficult to evaluate or measure
risk of negative association
long term value is uncertain
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Term
| what are the four components of promotion |
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Definition
advertising
personal selling
sales promotion
public relations |
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