Term
· In-store sales begin at home |
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Definition
o Targeting online
§ Groceries, diapers
o In store retailer (shacchi)
§ 100% online component
§ Use things like blog and twitter |
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Term
| Wal-Mart tests home delivery |
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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 |
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Term
· What are new products? (5) |
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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
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Term
· Why do new products fail? (5) |
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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 |
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Term
· New Product Development Process |
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Definition
o Idea generation
o Idea screening
o Project planning
o Product development
o Test marketing
o Commercialization |
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Term
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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 |
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Term
o Risks of test marketing |
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Definition
§ Competitors may sabotage the testing program
· Example: come up with promotions for an alternative product
§ Competitors may copy the product |
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Term
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Definition
§ Place the product with an existing product in the stores
§ Most expensive
§ More realistic environment |
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Term
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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 |
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Term
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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 |
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Term
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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 |
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Term
· Content-based social media marketing |
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Definition
o Focus is on content to be posted and passed around: blogs, videos, photos, news stories Digg, YouTube |
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Term
· Personality-based social media marketing |
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Definition
o Consumer companies create character profiles and target them Facebook, MySpace |
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Term
| Internet-based social media marketing |
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Definition
o Communities form around topics of interest, such as message boards
o Marketers must get into these conversations
§ Google, Yahoo Groups |
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Term
· Fantasy-based social media marketing |
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Definition
o Virtual worlds, inhabited by avatars, allow fantasy lives that marketers wish to be a part of
o Second Life, Webkinz |
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Term
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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” |
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Term
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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 |
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Term
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Definition
o Bought for 1.6 billion
o Videos limited to 10 min./1GB
o Your message cannot be altered by the audience |
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Term
Some Social Media Issues: |
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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 |
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Term
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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
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Term
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Definition
· Microsoft is buying Skype
o 8 Billion dollars
· OOMA.com
o Rated best service
§ Better than regular land lines
o Onetime fee |
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Term
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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 |
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Term
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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 |
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Term
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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 |
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Term
| Some consumer goods channels |
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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 |
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Term
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Definition
o Channel A
§ Producer to consumer
o Channel B
§ Producer to retailer
o Channel C
§ Producer to wholesaler |
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Term
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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” |
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Term
· Microsoft Dials up Change |
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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 |
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Term
· Now Google offers web and music |
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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 |
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Term
Why producers establish marketing channels? |
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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 |
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Term
· Forward flow logistics: |
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Definition
o Disseminate communication
o Store and move the physical products
§ Physical distributions
§ Example: wholesalers and even retailers |
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Term
· Reverse flow logistics: |
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Definition
o Place orders with manufactures
o Facilitate payments of bills
§ Example: retailers would pay manufacturers |
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Term
Handling Product Returns: |
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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 |
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Term
· McDonalds and touchscreens |
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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 |
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Term
How Reverse Logistics Differs from Forward Logistics |
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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 |
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Term
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Definition
| - the units are usually returned due to a problem |
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Term
|
Definition
· the returned units often do not arrive in bulk on pallets |
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Term
| Verification at Receiving |
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Definition
| to ensure the expected product matches the actual received product |
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Term
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Definition
| many returned items just require basic testing and repackaging |
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Term
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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 |
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Term
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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” |
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Term
· McDonald’s to fire Ronald |
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Definition
o People want to retire Ronald
o Presented in a letter |
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Term
· Check out the future of shopping |
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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 |
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Term
Trade Deals for consumer goods (6) |
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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 |
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Term
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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 |
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Term
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Definition
· Mfrs. Pay the retailers for allocating space in the retail stores for their new products
Retailers also may demand Exit Fee from mfrs |
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Term
· Came out with a device to make transactions |
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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 |
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Term
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Definition
o Is the division of buyers into groups (segments), enabling a company to tailor the marketing program |
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Term
· Problems with single pricing strategy |
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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 |
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Term
| Approaches to segmented pricing |
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Definition
Segmenting by buyer identification
o Segmenting by purchase location
o Segmenting by time of purchase
o Segmenting by purchase quantity
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Term
o Segmenting by buyer identification |
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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 |
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Term
o Segmenting by purchase location |
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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 |
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Term
| FOB (Free on Board) Vs. Freight absorption strategies |
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Definition
· (FOB) Buyer will handle all the costs
o Example: transportation, shipping, etc.
· Freight absorption
o Seller will take care of shipping |
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Term
o Segmenting by time of purchase |
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Definition
§ Example: theaters, restaurants, airlines, cell phone calls
§ Also useful to manage the peak-load problems
· Example: Airlines |
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Term
o Segmenting by purchase quantity |
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Definition
§ Done by pricing with quantity discounts
§ Costs less to serve customers buying large quantity |
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