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Final Exam
| Term | Definition |
|---|---|
| Consumer Utilities offered by retailing | Place, possession, form, and time |
| Retailing | all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use. ( Both physical and online stores ) |
| Classifying retail outlets: | Form of ownership, level of service, merchandise line |
| Form of ownership | distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet. |
| Level of service | the degree of service provided to the customer from three types of retailers: self-, limited-, and full-service |
| Merchandise line | describes how many types of different products a store carries and in what assortment. |
| Forms of Ownership | Independent retailers, Corporate Chains, Contractual Systems |
| Independent Retailers | owned by individuals, they are dying, they are unique from anywhere else |
| Corporate Chains | multiple outlets under common ownership. Control what happens at corporate level. *Have similar policies & products in multiple locations |
| Contractual Systems | Independent stores work toether to act as a chain. * Franchising ( Example: Fast-food chains ) |
| Levels of service | Self -service, limited service, full-service |
| Self-service | Customers perform functions IS NOT SELF-CHECKOUT Example: Redbox |
| Limited service | Provide some services / assistance Self-checkout, the mall, etc. |
| Full-service | Provide full services to customers Example: Dealership, luxury purchase, sit-down restaurant, Nordstroms ( they offer a lot of services beyond just checking you out such as tailoring, cosmetology, etc. ) |
| Depth of Product Line | the store carries a large assortment of each product item. Specialty Stores/ Outlets ( Jewelry, Shoes, Sports, etc. ) Category killers that dominate the market ( Staples, Best Buy, Barnes and Noble ) |
| Breadth of Product Line | describes the variety of different product items a store carries. Carry a broad product line with limited depth Large department stores |
| Scrambled Merchandising | consists of offering several unrelated product lines in a single store. Carry unrelated product lines in a single store |
| Hypermarket | a form of scrambled merchandising, which consists of a large store that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location Offers everything under one roof ( multiple floors ) |
| Supercenter: | combines merchandise store with full size grocery store |
| Intertype competition: | consists of competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy Example: Donuts ( Varsity donuts competes with Walmart ), Local florists compete with Dillons |
| Non-store retailing | Selling stuff without a store Vending Machines: v-commerce Direct selling: personal interactions in home/office |
| Direct selling: | personal interactions in home/office |
| Retail Mix | activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise. |
| Off-price retailing: | selling brand name merchandise at lower than regular prices. ( outlets ) |
| Central business district: | oldest retail setting, usually located in community’s downtown area |
| Regional shopping center | 50-150 stores within 5-10 mile range containing two or three anchor stores |
| Community shopping center | one primary store with 20-40 smaller outlets |
| Strip- mall: | A cluster of neighborhood stores to serve people within a 5-10 minute drive. The larger the city, the more there are |
| Power-center: | A huge shopping strip with multiple anchor ( or national ) stores. ( Example: mall of America ) |
| Multichannel retailers: | utilize and integrate combo of traditional store formats and nonstore formats such as catalogs, TV home shopping, and online retailing |
| Shopping marketing: | the use of displays coupons, product samples, and other brand communications to influence shopping behavior in a store |
| Category Management: | an approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and prof |
| Prime shopping time: | During the week and during the day |
| Interactive marketing | the two-way buyer–seller electronic communication in which the buyer controls the kind and amount of information received from the seller. |
| Choiceboard | an interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options |
| Personalization | the consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences. |
| Permission marketing | the solicitation of a consumer’s consent (called “opt-in”) to receive e-mail and advertising based on personal data supplied by the consumer. |
| Collaborative filtering | a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. An example: M&M’s - you can go to m&ms.com and can customize their own m&m’s |
| Seven C's Web Design: | Context, Commerce, Connection, Communication, Content, Community, Customization |
| Context | appeal and functional look |
| Content | all digital information on website |
| Customization | ability of site to modify for individual customers |
| Connection | linkage between other sites |
| Communication | dialogue between site and consumer |
| Community | user-to-user communications |
| Commerce | conduct sales transactions |
| Online Consumer | subsegment of all internet users who employ this technology to research products and serves and make purchases |
| Why do people buy online? | Items with important product information Items that can be delivered digitally Items that can be regularly purchased and where convenience is important Standardized items where price is important |
| Why do people shop online? ( 6 C's ) | Convenience, choice, customization, communication, cost, and control |
| Convenience | Can visit and shop 24 hours a day |
| Eight-Second Rule | customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds |
| Customerization: | personalizing the marketing and overall shopping experience |
| Cost | Lower Price than online |
| Dynamic Pricing: | changing prices for products and service in real time in response to supply and demand conditions |
| Cookies: | computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website. |
| Behavioral targeting: | uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising |
| Social Commerce: | the use of social networks for browsing and buying ( tiktok shop, facebook marketplace ) |
| Subscription Commerce | the payment of a fee to have products and services delievered on a recurring schedule. |
| Cross-channel consumer: | a consumer who shops online but buys offline, or shops offline but buys online. |
| Showrooming | examining products in a store and then buying them online for a cheaper price |
| Webrooming | look on web and then buy in store |
| Social Media | a digital technology that facilitates the creation and sharing of user-generated content through virtual communities and networks |
| Social Network | A single social media site with millions of users interacting with each other ( instagram, facebook, pinterest, tiktok, x, and linkedin. ) |
| Influencer marketing | focusing on identification and recruitment of influencers to advocate a company’s offerings rather than focusing on prospective buyers |
| Social Shopping | use of social network by consumers to share latest purchases with friends and contacts |
| Social media marketing program | portion of a company’s integrated marketing communications effort designed to create and deliver compelling online media content that attracts viewer attention and encourages readers to share it with their social network |
| Customer engagement | the degree and depth of brand-focused interactions a customer chooses to perform online with their social network. |
| Common Measures | Cost per action ( CPA ) Cost per thousand ( CPM ) Cost per click ( CPC ) |
| Apps | small, downloadable softward programs that can run on smartphones and tablet devices. Also called mobile apps or applications. |
| Integrated Marketing Communications ( IMC ) | Designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences. |
| Promotional Mix | the combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product. |
| What is an example of Public Relations? | Press Conference |
| Five Elements of the promotional mix: | Advertising, personal selling, public relations, sales promotion, and direct marketing |
| Advertising | any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. |
| Personal Selling | the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision |
| Public Relations | form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other public about a company and its products or services |
| Publicity | nonpersonal, indirectly paid presentation of an organization, product, or service |
| Sales | a short-term inducement of value offered to arouse interest in buying a product or service. |
| Direct Marketing | uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. |
| What is the promotional objective of the introduction phase? | To inform |
| What is the promotional objective of the growth phase? | To persuade |
| What is the promotional objective of the maturity phase? | To remind |
| What is the promotional objective of the decline phase? | To phase out |
| What are the Product Characteristics to help determine promotional mix | complexity, risk, ancillary services |
| Push Strategy: | involves directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. |
| Pull Strategy: | directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product. |
| Hierarchy of Effects: | the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, and adoption. |
| Traffic Generation: | the outcome of a direct marketing offer designed to motivate people to visit a business. |
| Lead Generation | the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information. |
| Direct Orders | the result of a direct marketing offer that contains all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. |
| Product Advertisements: | ads the focus on selling a product or service and which take three forms: 1. Pioneering ( or informational ) , 2. Competitive ( or persuasive ), and 3. Reminder |
| Institutional Advertisement: | ads designed to build goodwill or an image for an organization rather than promote a specific product or service |
| What are the steps in developing an advertisement ? | Identify target audience, set objectives, develop budget |
| What are the message appeal types? | Fear appeals - avoid negative experiences Sex appeals - increase attractiveness Humorous appeals - fun and exciting Appeals can be combined |
| Advertising media: | the means to communicate the message. |
| Rating: | PERCENTAGE of people tuned to a particular platform |
| Reach: | the NUMBER of people who see it |
| Frequency: | the average number of times a person in the target audience is exposed to a message or advertisement |
| Gross Rating Points ( GRP ) | reach times frequency |
| Cost per thousand ( CPM ) | how much does it cost to reach 1000 people |
| Continuous - Steady schedule | steady, seasons not important |
| Flighting - Intermittent schedule | intermittent, reflects seasonal demand |
| Pulse- burst schedule | burst, flighting and continuous, new product |
| What are the three types of advertising agencies: | Full service, limited service, in-house agency |
| Full Service | Complete range of services |
| Limited - service agency | Contract for creative work |
| In-house agency | Company’s own staff |
| Coupons: | money off the purchase, the goal is to stimulate trial |
| Deals: | an offer. Ex: if you do this --> you get this |
| Premiums | A gift with purchase Ex. McDonalds Happy Meal: buy the meal, get the toy |
| Point of purchase displays | in physical stores. Ex. display in the aisle, endcaps of aisles, where you actually checkout |
| Product placements | paying to have your product featured in a movie, video game, series Challenge: have no idea what they do with it |
| Publicity tools | methods of obtaining nonpersonal presentations of an organization, product, or service, without direct costs, such as news releases, news conferences, and public service announcements ( PSAs) |
| Personal selling | the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision. |
| Sales Management | consists of planning the selling program and implementing and evaluating the personal selling effort of the firm |
| Who are salespeople in the consumers eyes? | Sales people ARE the company in a consumer’s eyes |
| Relationship selling | the practice of building ties to a customers based on a salesperson’s attention and commitment to a customer needs over time |
| Order taker | processes routine orders or reorders for products that were already sold by the company |
| Order getter | sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers use of a product or service Much more training and knowledge of products and s |
| Personal selling process | consists of sales activities occurring before, during, and after the sale itself, consisting of six stages |
| Prospecting | identify and qualify prospects |
| Lead | possible customer |
| Prospect | wants or needs product |
| Qualified prospect | decision maker |
| Preapproach stage | preparing for the sales call → gather information and decide on the best approach |
| Approach stage | The initial meeting with the prospect |
| Presentation stage | the core of the stage |
| Stimulus- response: | a sales rpesenttion format that assumes that given the appropriate stimulus by a salesperson, the prospect will buy |
| Suggestive selling | “do you want xx with your order?” |
| Formula selling presentation: | consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect ( memorized ) Canned sales presentation or standardized message |
| Needs satisfaction presentation: | emphasizes probing and listening by the salesperson to identify needs and interests of prospective buyers |
| Objections: | excuses for not making a purchase commitment or decision |
| Close-stage: | asking for the order ( hardest stage ) Closing techniques: trial, assumptive, and urgency close |
| Follow-up stage: | solidifying the relationship |
| Can organize the Salesforce in three ways: | Geography, customer, product |
| Types of compensations: | straight salary, straight commission, combination, nonmonetary rewards |
| Salesforce automation: | the use of computer, information, communication, and Internet technologies to makes the sales function |
| Closing techniques: | trial, assumptive, and urgency close |
| Marketing automation: | applies systems and technologies, including AI algorithms to provide insights to salspeople |
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