Term
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Definition
| all transactions in which the buyer intends to consume the product through personal, family, or household use |
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Term
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Definition
an organization that purchases products for the purpose of reselling them to ultimate consumers
-most personal income is spent in retail stores, and nearly one of every five people employed in the U.S. works in retail,
-the value added by retailers is significant for both producers and end consumers
-retailers are the critical link between producers and end consumers |
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Term
| general-merchandise retailer |
|
Definition
a retail establishment that offers a variety of product lines that are stocked in considerable depth
-the primary types of these stores are department stores, discount stores, convenience stores, supermarkets, superstores, hypermarkets, warehouse clubs, and warehouse showrooms |
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Term
|
Definition
large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management
-departments function as a self-contained business
-ex: Macy's, JCPenney, Nordstrom |
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Term
|
Definition
self-service, general merchandise stores that offer brand name and private brand products at low prices
ex: regular Walmart and Target |
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Term
|
Definition
| a small self-service store that is open long hours and carries a narrow assortment of products, usually convenience items |
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Term
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Definition
large, self-service stores that carry a complete line of food products, along with some nonfood products
-ex: Safeway, Albertson's |
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Term
|
Definition
giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products
-Super Walmart |
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Term
|
Definition
stores that combine supermarket and discount store shopping in one location
-French retailer Carrefoure |
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Term
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Definition
large-scale, members-only establishments that combine features of cash-and-carry wholesaling with discount retailing
-aka buying clubs
ex: Sam's Club, Costco |
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Term
|
Definition
retail facilities in large, low-cost buildings with large on-premises inventories and minimal services
-vertical merchandise displays
-high volume, low-overhead operations stress fewer personnel and services
-ex: IKEA |
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Term
| traditional specialty retailers |
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Definition
stores that carry a narrow product mix with deep product lines
-aka limited line retailers or single line retailers
-ex: Gap, Victoria's Secret
-because they are small, these stores may have high costs in proportion to sales, and satisfying customers may require carrying some products with low turnover rates |
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Term
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Definition
a very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability
-ex: Home Depot, Lowe's, Best Buy, Office Depot, and OfficeMax |
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Term
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Definition
stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
-limited lines of national brand and designer merchandise
-ex: T.J. Maxx, Marshalls |
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Term
| neighborhood shopping centers |
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Definition
shopping centers usually consisting of several small convenience and specialty stores
-ex: small grocery stores, gas stations, and fast-food restaurants
-consumers who live within 2 or 3 miles of their stores, or a 10 minutes drive |
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Term
| community shopping centers |
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Definition
| shopping centers with one or two department stores, some specialty stores, and convenience stores |
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Term
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Definition
a type of shopping center with the largest department stores, widest product mixes, and deepest product mixes, and deepest product lines of all shopping centers
-many shopping malls are these types of centers |
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Term
| superregional shopping center |
|
Definition
a type of shopping center with the widest and deepest product mixes that attracts customers from many miles away
-Mall of America |
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Term
| lifestyle shopping center |
|
Definition
a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores
-fountains, benches, and other amenities that encourage "casual browsing"
-Centerra |
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Term
|
Definition
a type of shopping center that combines some off-price stores with category killers
-factory outlet malls
-anchored by stores such as Home Depot, The Gap, Toys R Us, PetSmart |
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Term
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Definition
| identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment |
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Term
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Definition
the physical elements in a store's design that appeal to consumers' emotions and encourage buying
-music, color, and complexity of layout and merchandise presentation
-exterior includes the appearance of the storefront
-many fast food restaurants use bright colors such as red and yellow because they make customers feel hungrier and eat faster, which increases turnover |
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Term
|
Definition
a retail strategy of managing groups of similar, often substitutable products produced by different managers
-is a move towards a collaborative supply-chain initiative to enhance customer value |
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Term
|
Definition
the use of the telephone, Internet, and non-personal media to introduce products to customers, who can then purchase them via mail, telephone, or the Internet
-one type of non-store retailing |
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Term
|
Definition
| the selling of products outside the confines of a retail facility |
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Term
|
Definition
a type of marketing in which an organization provides a catalog from which customers make selections and place orders via mail, phone, or Internet
-began in 1872 with Montgomery Ward
-advantages include efficiency and convenience for customers
-retailer benefits by being able to locate in remote, low cost areas, save on store fixtures
-disadvantages: inflexible, provides limited service, and is most effective for a selected set of products |
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Term
| direct-response marketing |
|
Definition
a type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders
-one of the most successful was the Snuggie |
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Term
|
Definition
the performance of marketing related activities by telephone
-can help generate sales leads, improve customer service, accelerate payments on past-due accounts, raise funds for non-profit organizations and gather marketing data |
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Term
|
Definition
a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a card
-HSN and QVC |
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Term
|
Definition
retailing that makes products available to buyers through computer connections
-growing dramatically
-major issues are identity theft and credit card theft |
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Term
|
Definition
marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace
-door to door selling |
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Term
|
Definition
| the use of machines to dispense products |
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Term
|
Definition
| an arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration |
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Term
|
Definition
| transactions in which products are bought for resale, for making other products, or for general business operations |
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Term
|
Definition
| an individual or organization that sells products that are bought for resale, for making other products, or for general business operations |
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Term
| integrated marketing communications |
|
Definition
| coordination of promotion and other marketing efforts for maximum informational and persuasive impact |
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Term
|
Definition
a sharing of meaning through the transmission of information
-both the sender and receiver of information must share some common ground |
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Term
|
Definition
| a person, group, or organization, with a meaning it tries to share with a receiver or an audience |
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Term
|
Definition
| the individual, group, or organization that decodes a coded message |
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Term
|
Definition
converting meaning into a series of signs or symbols
-encoding |
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Term
|
Definition
the medium of transmission that carries the coded message from the source to the receiver
-transmission media include ink on paper, air wave vibrations produced by vocal chords, chalk marks on chalkboard, |
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Term
|
Definition
| converting signs or symbols into concepts and ideas |
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Term
|
Definition
anything that reduces a communication's clarity and accuracy
-radio static, poor or slow Internet connections, and laryngitis |
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Term
|
Definition
| the receiver's response to a decoded message |
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Term
|
Definition
the limit on the volume of information a communication channel can handle effectively
-1 minute ads should not exceed 150 words, bc announcers cannot articulate words into understandable messages past this rate |
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Term
|
Definition
| communication to build and maintain relationships by informing and persuading one or more audiences |
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Term
|
Definition
| demand for a product category rather than for a specific brand |
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Term
|
Definition
promotion that informs consumers about a new product
-because this is used in the introductory stage of the product life cycle, meaning there is no competing brands, it neither emphasizes brand names nor compares brands |
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Term
|
Definition
| demand for a specific brand |
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Term
|
Definition
paid non-personal communication about an organization and its products transmitted to a target audience through mass media
-used to promote goods, services, ideas, images, issues, people, and anything else advertisers want to publicize or foster |
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Term
| institutional advertising |
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Definition
| advertising that promotes organizational images, ideas, and political issues |
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Term
|
Definition
| advertising that promotes a company's position on a public issue |
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Term
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Definition
| advertising that promotes the uses, features, and benefits of products |
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Term
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Definition
| advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product |
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Term
|
Definition
tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands
-advertising effects on sales must reflect competitors's advertising activities |
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Term
|
Definition
| advertising used to remind consumers about an established brand's uses, characteristics, and benefits |
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Term
| reinforcement advertising |
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Definition
| advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it |
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Term
|
Definition
the creation and execution of a series of advertisements to communicate with a particular target audience
1. identifying and analyzing the target audience
2. defining the advertising objectives
3. creating the advertising platform
4. determining the advertising appropriation
5. developing the media plan
6. creating the advertising message
7. executing the campaign
8. evaluating advertising effectiveness |
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Term
|
Definition
the group of people at whom advertisements are aimed
-marketers may direct a campaign at only a portion of the target market |
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Term
|
Definition
basic issues or selling points to be included in an advertising campaign
-should consist of issues important to customers
-most commonly based on opinions of personnel within the firm and of individuals in the advertising agency (if used) |
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Term
| advertising appropriation |
|
Definition
| the advertising budget for a specific time period |
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|
Term
| objective-and-task approach |
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Definition
budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them
-one of the most logical |
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Term
| percent-of-sales approach |
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Definition
budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage
-major flaw is that it is based on the incorrect assumption that sales create advertising rather than the reverse
-though illogical, it is easy to use |
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Term
| competition-matching approach |
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Definition
| determining an advertising budget by trying to match competitors' advertising outlays |
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Term
|
Definition
budgeting for an advertising campaign as specified by a high-level executive in the firm
-often leads to underspending or overspending |
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Term
|
Definition
| a plan that specifies the media vehicles to be used and the schedule for running advertisements |
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Term
| cost comparison indicator |
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Definition
| a means of comparing the costs of advertising vehicles in a specific medium in relation to the number of people involved |
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Term
|
Definition
| versions of a magazine that differs across geographic regions |
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Term
|
Definition
| the verbal portion of advertisements |
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Term
|
Definition
| a blueprint that combines copy and visual material to show the sequence of major scenes in a commercial |
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Term
|
Definition
| an advertisement's illustrations and layout |
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Term
|
Definition
photos. drawings, graphs, charts, and tables used to spark audience interest in an advertisement
-can be more important in capturing attention that text of brand elements, independent of size |
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Term
|
Definition
| the physical arrangement of an advertisement's illustration and copy |
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Term
|
Definition
| evaluation of advertisements performed before a campaign begins |
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Term
|
Definition
| a panel of a product's existing or potential buyers who pretest ads |
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Term
|
Definition
| evaluation of advertising effectiveness after the campaign |
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Term
|
Definition
| a posttest in which respondents are shown the actual ad and are asked if they recognize it |
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Term
|
Definition
| a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues |
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Term
|
Definition
| a posttest that asks respondents to identify recent ads and provides clues to jog their memories |
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Term
|
Definition
| communication efforts used to create and maintain favorable relations between an organization and its stakeholders |
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Term
|
Definition
| a news story type of communication about an organization and/or its products transmitted through a mass medium at no charge |
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Term
|
Definition
| a short piece of copy publicizing an event or a product |
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Term
|
Definition
| a manuscript of up to 3000 words prepared for a specific publication |
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Term
|
Definition
| a photograph with a brief description of its contents |
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Term
|
Definition
| a meeting used to announce major news events |
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Term
|
Definition
paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation
-volunteers promoting a cause
-greatest freedom to adjust a message to satisfy customers' information needs
-most precise of all promotion methods, enabling marketers to focus on the most promising sales prospects |
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Term
|
Definition
developing a database of potential customers
-seek names through sales records, trade shows, commercial databases, newspaper announcements, public records, telephone directories, and other sources |
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Term
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Definition
| the manner in which a salesperson contacts a potential customer |
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Term
|
Definition
| the stage in the personal selling process when the salesperson asks the prospect to buy the product |
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Term
|
Definition
a salesperson who sells to new customers and increases sales to current customers
-divided into two categories: current customer sales and new business sales |
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Term
|
Definition
| salespeople who primarily seek repeat sales |
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Term
|
Definition
| sales staff members who facilitate selling but usually are not involved solely with making sales |
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Term
|
Definition
| support salespeople, usually employed by a manufacturer; who assist the producer's customers in selling to their own customers |
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Term
|
Definition
| developing a list of qualified applicants for sales positions |
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Term
| straight salary compensation plan |
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Definition
| paying salespeople a specific amount per time period, regardless of selling effort |
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Term
| straight commission compensation plan |
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Definition
| paying salespeople according to the amount of their sales in a given time period |
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Term
| combined compensation plan |
|
Definition
| paying salespeople a fixed salary plus a commission based on sales volume |
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Term
|
Definition
an activity and/or material intended to induce resellers or salespeople to sell a product or consumers to buy it
-encompasses all promotional activities and materials other than personal selling, advertising, and public relations |
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|
Term
| consumer sales promotion methods |
|
Definition
| sales promotion techniques that encourage consumers to patronize specific stores or try particular products |
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Term
|
Definition
written price reductions used to encourage consumers to buy a specific product
-most widely used consumer sales promotion technique |
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Term
|
Definition
| a promotion that allows buyers to pay less than the regular price to encourage purchase |
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Term
|
Definition
| a sales promotion technique that offers consumers a specified amount of money when they mail in a proof of purchase, usually for product purchases |
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Term
|
Definition
a sales promotion technique in which a consumer receives a specified amount of money for making a single product purpose
-generally given on more expensive products than money refunds and are used to encourage customers |
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Term
| point-of-purchase (POP) materials |
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Definition
| signs, window displays, display racks, and smilar devices used to attract customers |
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Term
|
Definition
| a sales promotion method a manufacturer uses temporarily to encourage trial use and purchase of a product or to show how a product works |
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Term
|
Definition
a sample of a product given out to encourage trial and purchase
-most expensive sales promotion method because of production and distribution |
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Term
|
Definition
| an item offered free or at minimal cost as a bonus for purchasing a product |
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Term
|
Definition
| sales promotion methods in which individuals compete for prizes based on their analytical or creative skills |
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Term
|
Definition
| sales promotion methods in which individuals compete for prizes based primarily on chance |
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Term
|
Definition
| a sales promotion in which entrants submit their names for inclusion in a drawing for some prizes |
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Term
|
Definition
| charging different prices to different buyers for the same quality and quantity of a product |
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Term
|
Definition
| establishing a final price through bargaining between seller and customer |
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Term
|
Definition
setting one price for the primary target market and different price for another market
-ex: early bird specials at restaurants, matinees, |
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Term
|
Definition
temporary reduction of prices on a patterned or systematic basis
-ex: most retailers have annual holiday sales |
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Term
|
Definition
temporary reduction of prices on an unsystematic basis
-alleviates the problem of customers knowing when discounting will occur |
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Term
|
Definition
| charging the highest possible price that buyers who most desire the product will pay |
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Term
|
Definition
setting prices below those of competing brands to penetrate a market and gain a significant market share quickly
-especially beneficial when a marketer suspects that competitors could enter the market easily |
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Term
|
Definition
establishing and adjusting prices of multiple products within a product line
-includes captive pricing, premium pricing, bait pricing, and price lining |
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Term
|
Definition
pricing the basic product in a product line low, while pricing related items higher
-printer and ink |
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Term
|
Definition
| pricing the highest quality or most versatile products higher than other models in the product line |
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Term
|
Definition
| pricing an item in a product line low with the intention of selling a higher priced item in the line |
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Term
|
Definition
| setting a limited number of prices for selected groups of lines of merchandise |
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Term
|
Definition
pricing that attempts to influence a customer's perception of price to make a product's price more attractive
-includes reference pricing, bundle pricing, multiple-unit pricing, everyday low prices (EDLP), odd-even pricing, customary pricing, and prestige pricing |
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Term
|
Definition
| pricing a product at a moderate level and displaying it next to a more expensive model or brand |
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Term
|
Definition
| packaging together two or more complementary products and selling them at a single price |
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Term
|
Definition
packaging together two or more identical products and selling them at a single price
-Sam's Club and Costco are examples of doing this |
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Term
| everyday low prices (EDLP) |
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Definition
pricing products low on a consistent basis
-reduces or eliminates the use of frequent short-term price reductions |
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Term
|
Definition
ending the price with certain numbers to influence buyer's perceptions of the price or product
-odd: customers will think the item is a bargain
-even: gives product an exclusive of upscale image |
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Term
|
Definition
| pricing on the basis of tradition |
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Term
|
Definition
setting prices at an artificially high level to convey prestige or a quality image
-typical items include perfumes, liquor, jewelry, and cars |
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Term
|
Definition
fees set by people with great skill or experience in a particular field
-believe their fees should not relate directly to the time and effort spent in specific cases
-standard fee is charged regardless of the problems involved in performing the job
-professionals have an ethical responsibility not to overcharge customers |
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Term
|
Definition
| a product priced below the usual markup, near cost, or below cost |
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Term
|
Definition
| advertised sales or price cutting linked to a holiday, a season, or an event |
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Term
|
Definition
| setting a price at a specific level and comparing it with a higher price |
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Term
| location of retail stores |
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Definition
-least flexible of the strategic retailing issues but is one of the most important because location dictates the limited geographic trading area from which a store draws its customers
-a retailer will evaluate the relative ease of movement to and from the site, including factors such as pedestrian and vehicular traffic, parking and transportation |
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|
Term
| creating awareness in promotion |
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Definition
-considerable amount of promotion effort focuses on this
-making customers aware of the product is crucial to initiating the product adoption process |
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Term
|
Definition
1. create awareness
2. stimulate demand
3. encourage product trial
4. identify prospects
5. retain loyal customers
6. facilitate reseller support
7. combat competitive promotional efforts
8. reduce sales fluctuations |
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Term
|
Definition
1. personal selling
2. advertising
3. public relations
4. sales promotion |
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Term
|
Definition
| percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period |
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Term
|
Definition
| number of times these targeted consumers are exposed to the advertisement |
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Term
|
Definition
| advertising runs at a constant level with little variation throughout the campaign period |
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Term
|
Definition
| ads runs in set periods of time, alternating with periods in which no ads run |
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Term
|
Definition
-combines continuous and flighting
-during the entire campaign, a certain portion of advertising runs continuously, and during specific time periods of the campaign, additional advertising is used to intensify the level of communication with the target audience |
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Term
|
Definition
|
|
Term
|
Definition
| "definitely" and "absolutely" |
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Term
|
Definition
-often it is the only part of the copy that people read
-should attract readers' attention and create enough interest to make them want to read the body copy |
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Term
|
Definition
| -consists of an introductory statement or paragraph, several explanatory paragraphs, and a closing paragraph |
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Term
|
Definition
| identifies the advertisement's sponsor |
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|
Term
| justification for using recognition and recall methods |
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Definition
| people are more likely to buy a product if they can remember an advertisement about it that if they cannot |
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Term
|
Definition
| helps evaluate ads by tracking an individuals' behaviors from TV to checkout counters |
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Term
|
Definition
| identifies changes in public opinion affecting an organization |
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Term
|
Definition
| used to assess an organization's image among the public or to evaluate the effect of a specific public relations program |
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Term
|
Definition
| content analysis of messages, a readability study, or a readership survey |
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Term
|
Definition
| measure the extent to which stakeholders view it as being socially responsible |
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Term
|
Definition
recommendations from current customers to find prospects
-one referral is as valuable as 12 cold calls |
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Term
|
Definition
| -involves identifying key decision makers, reviewing account histories and problems, contacting other clients for information, assessing credit histories and problems, preparing sales presentations, identifying product needs, and obtaining relevant literature |
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Term
|
Definition
| salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product |
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Term
|
Definition
| salesperson asks questions that assumes the prospect will buy |
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Term
|
Definition
| order takers, order getters, support personnel |
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Term
|
Definition
| requires that salespeople recognize potential buyers' needs and give then necessary information. |
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Term
|
Definition
| manufacturers if medical supplies and pharmaceuticals often use these type of salespeople to promote their products to physicians, hospitals, and pharmacists |
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Term
|
Definition
| salespeople involved mainly in helping a producer's customers promote a product |
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Term
|
Definition
| support salespeople who give technical assistance to a firm's current customers |
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Term
|
Definition
the use of a team of experts from all functional areas of a firm, led by a salesperson to conduct the personal selling process
-advantageous in situations calling for detailed knowledge of new, complex, and dynamic technologies like jet aircraft and medical equipment |
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|
Term
|
Definition
the building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time
-aka consultative selling |
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|
Term
| general areas of sales management |
|
Definition
-establishing sales force objectives
-determining sales force size
-recruiting and selecting salespeople
-training sales personnel
-compensating salespeople
-motivating salespeople
-managing sales territories
-controlling and evaluating sales force performance |
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|
Term
| establishing sales force objectives |
|
Definition
-tell salespeople what they are expected to accomplish during a specified time period
-developed for both the total sales force and individual salespeople |
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|
Term
| determining sales force size |
|
Definition
-affects the compensation methods used, salespeople's morale, and overall sales force management
-must be adjusted periodically because a firm's marketing plans change along with the markets and forces in the marketing environment |
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Term
|
Definition
broad statement about price reductions as opposed to detailing specific price discounts
-ex: 20-50% off, up to 75% off |
|
|
Term
| types of promotional pricing |
|
Definition
| price leaders, special event pricing, and comparison discounting |
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Term
|
Definition
remain inside the office, make calls, etc.
-provides stability, yet may be boring |
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Term
|
Definition
always in the field
-exciting, yet not as reliable |
|
|
Term
|
Definition
1. prospecting
2. pre-approach
3. approach/cold calling
4. presentation
5. overcoming objections
6. close the sale
7. follow up
--as you go down the list, the funnel gets narrower and the end result is finding the customer |
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|
Term
|
Definition
-more effective
-number is limited, but purchases are bigger
-flexibility of product is much more prevalent
-professional buyers are more rational
-price is more negotiable |
|
|
Term
| how retailers enhance value |
|
Definition
-provide services
-assist in product selection
-make shopping experience more convenient
-location facilitates comparison shopping
-demonstrate products
-create utility for ultimate consumers |
|
|
Term
|
Definition
crucial to initiating the product adoption process for new products
-for existing products, promotional efforts create increased awareness of brands, product features, image-related issues, or operational characteristics |
|
|
Term
|
Definition
| if customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to product adoption |
|
|
Term
|
Definition
some promotional efforts aim to locate and identify customers who are interested in the firm's products and are most likely to buy
-techniques include direct response information form, toll-free number |
|
|
Term
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Definition
| primary goal of marketing is to maintain long-term customer relationships, keeping current customers is less costly than acquiring new customers, techniques include frequent-user programs, special offers for existing customers |
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