Direct Investment: 

from least to greatest

1. Exporting

2. Licensing 

3. Franchising

4. Contract manufacturing

5. Joint Ventures

6. Direct Investment

Is a pull strategy the only one focusing upon communicating the product’s benefits to the consumer so as to create demand that retailers and distributors must meet?  Pg. 

·      Push Strategy- Businesses are the target of promotions so products get “pushed” through their marketing channels and sold to consumers.

Pull Strategy- Consumers are targeted with sales promotions such as coupons, contests, games, rabates, mail-in offers

What type of distribution is a strategy of selling a product in as many outlets as possible?  

·      Intensive Distribution- A strategy of selling a product in as many outlets as possible.

           ---Often used for convenience offerings—products customers purchase on the                                spot without much shopping around.

o   Soft drinks and newspapers are an example. You see them sold in all kind              of different places.

o   Redbox           

What are the ways the supply chain can create value for customers    

·      Customers can determine outsourcing and insourcing strategies.

·      The customer is the last link in the supply chain.

·       Recycling and reclaiming programs require the customer's cooperation.

Regarding its function, when and why would a firm outsource?

    When:  ??

                Why:     1.) To lower the firms costs.

                              2.) Focus on the activities the firm does best.            

1.     What role in logistics do FedEx Supply Chain Services and UPS Supply Chain Solutions represent?  Pg. 207

·      Third-party Logistics (3PLs)- Firms to which other companies outsource their entire order processing and shipping departments.

·      A 3PL is one-stop shipping solution for a company that wants to focus on other aspects of its business.

-       Firms that receive and ship products internationally often hire 3PLs so they don’t have to deal with the headaches of transporting products abroad and completing import and export paperwork for them

Why does a firm push for environmental sustainability in its products and activities?  

1.)   Improves the company’s image and makes it stand out among competitors.

2.)Consumers are willing to pay more for greener products, even during a recession

RFID refers to what?  

·      Radio Frequency Identification- Tag that emits radio signals that can record and track shipments as it comes in and out of a facility.

Metal boxes that are used to ship consumer goods on cargo ships are what?  

·      Intermodal Containers

1.     What do we call running broken, defective, and scrap products backward through the supply chain?  Pg. 221

·      Reverse Logistics

Little buttons that make it easy to share or save information using social media services are what?  

·      Chicklets 

A simple Web site that can be edited in real time by a number of users is known as a what?  

·      Wiki

Know the specific descriptive terms such as vlog, blog, link love, tag, chicklets, etc.  

·      Tag-Labels describing what content is about in social media.

·      Blog-A type of website that allows users (bloggers) to post entries on different topics and often allows readers to comment on these posts.

·      Vlog-A video-based blog, also called a video blog. 

·      Link Love-Posting a link to sites or blogs, usually unsolicited, that you enjoy, admire, or find useful. 

Also know: a social network, crowdsourcing, TrackBack, Microblog, Content Sharers, clickstream data.

·      Social Network- A type of website model where individual members become part of a broader virtual community.

·      Crowdsourcing- Harnessing the skills, talents, and ideas of a broader community, through social media.

·      TrackBack- A mechanism used in a blog that shows a list of entries in other blogs that refer to a post on the first blog.

·      Microblog- The practice of sending brief text updates, images, audio clips and publishing them online, either to be viewed by anyone or by a restricted group that can be chosen by the user.

·      Content Shares- content consumers who also pass your message on, whether by using chat or e-mail, by sharing a link on a blog, or by submitting your content to a bookmarking or aggregating service.

      --They are a crucial link in the chain that passes your message around.

      --Make it as easy as possible for sharers to share by using chicklets and unique and easy-               to-read URLs

·      Clickstream Data- Data collected from websites showing the web pages visitors clicked on and the order of their clicks. 

What best allows organizations to capitalize on the creativity of their consumers to spread their message further, often at very low costs?  

·      Social Media…?

How is Marketing Research important to firms when it comes to decision making?  

Marketing research can help you with many tasks:

o   Developing product ideas and designs

o   Determining if there is demand for your product so you know whether or not to produce it

o   Identifying market segments for your product

o   Making pricing decisions

o   Evaluating packaging types

o   Evaluating in-store promotions

o   Measuring the satisfaction of your customers

o   Measuring the satisfaction of your channel partners

o   Evaluating the effectiveness of your Web site

o   Testing the effectiveness of ads and their placement

o   Making marketing channel decisions

What is Sue engaging in if she travels to other grocery stores in the marketplace to observe how much they are charging for the same products she stocks at her store?  

·      Market Intelligence- Information gathered on a regular, ongoing basis to enable a firm’s decision makers to stay in touch with what’s happening in the marketplace. 

Market trends can be uncovered internal to the firm utilizing what techniques?  

·      Data Mining- The process of extracting information from large databases so as to uncover patterns and trends. 

·      Intranet- A private, internal web site accessible to only a firm’s employees. 

What do we call stealing product strategy information from a competitor?  

·      Industrial Espionage

Know primary data and secondary data characteristics

·      Primary Data- is information to be collected, using hands-on tools such as interviews or surveys, specifically for a certain research project. It is expensive to collect and takes considerable time.

·      Secondary Data- Data already collected by your firm or another organization for purposes other than the marketing research project at hand. 

When a market researcher from MTV visited the home of Phil, a 17 year-old boy from Brooklyn, to observe his behavior, what type research was the marketer engaged in?  

Enthography- A type of study whereby marketing researchers interview, observe, and often videotape people while they work, live, shop, and play

What type of research seeks to measure or describe phenomenon so as to answer the questions who, what, where, when and how? 

·      Descriptive Research Design

Companies sometimes utilize research that tracks the movement of a person’s eyes when watching programs on television. What type of measurement is this?  

Physiological Measurements 

1.     When creating a questionnaire, it is important to be clear and unambiguous; what are other ‘rules?’  Pg. 242

·      Questions must be written in an unbiased neutral way.

·      The questions need to be clear and unambiguous.

·      Sensitive questions have to be asked carefully.

·      Income questions are unwelcome but often asked.

·      Double-barreled questions ask two questions in one: “Do you think parents should spend more time with their children and/or their teachers?”

·      Open-ended questions ask respondents to elaborate
but are harder to tabulate than closed-ended questions.

·      If the questions are bad, information gathered will be bad.

·      Getting people to complete questionnaires can be difficult; incentives can help.

·      Testing the questionnaires face-to-face on a limited number of respondents before sending improves responses.

·      Long surveys are less likely to be completed. Eliminate questions of little value.

·      Surveys can be delivered via phone, in person, by mail, and computer.

If you gather answers to a research question from 100 students, then in research terms they define what component of the entire university population?  

·      Sample- a subset of potential buyers that are representative of your entire target market, or population. (The entire target market being studied.) 

Know characteristics of nonprobability samples and probability samples

·      Probability Sample: Each participant has an equal, non-zero chance of being selected. The chance is known because the total number of people in the sampling frame is known.

Nonprobability Sample: The chance is known because the total number of people in the sampling frame is known. Used because it’s readily available and convenient

Integrated marketing communications (IMC) attempt to do what?  

·      Provide an approach designed to deliver one consistent message to buyers across an organization’s promotions that may span all different types of media—TV, radio, magazines, newspapers, etc. 

Examples of out-of-home advertising may include what sorts of activities and places?  

·      Out-of-home Advertising: Billboards and movable promotions that are displayed in a broad range of public spaces including tray tables on airplanes, the inside of subways, trains, buses, and even in bathroom stalls. 

Define ‘promotional (or communication) mix.

Promotional (or communication) Mix- Communication tools that may include advertising, sales promotions, public relations and publicity, personal selling, and direct marketing

As a part of Ford’s sponsorship ad package, the company received a commercial between every other commercial break during a televised baseball game.  What do we call the number of times the commercial was shown?  What other terms of interest could relate to the decisions about what, when, and where to run such ads

·      Frequency- How often people are exposed to a message.

·      Reach- The number of people exposed to a message.

What do we mean by saying to encode and decode a message in advertising and marketing communications?  

·      Encode: Senders must translate or convert benefits and value of a product or service into a message for the message channel selected.

Decode: Receivers interpret messages

What do marketers worry about that might cause a recipient to interpret the message not as intended?  

·      Perceptual Processes--The way in which people select to be exposed to information, pay attention to it, interpret it, and retain it.

Know the characteristics and definition of a unique selling proposition (USP).  

·      Unique Selling Proposition (USP)-  A specific product benefit consumers will remember.

o   -knowing your audience and whom you are trying to reach is critical

n  Nike “Just Do It

What is a budgeting technique based on a set percentage of current or projected sales? A technique for budgeting comparable to the competitors’?  Other types of budgeting?  

·      Percent-of-sales Method- A budgeting technique based on a set percentage of current or projected sales.

·      Affordable Method- A budgeting technique whereby companies spend what they think they can afford promoting a product.

·      Competitive Parity- A budgeting method whereby companies make sure their promotion budgets are comparable to their competitors’.

Objective and Task Method- A budget based on a company’s promotion objectives and the costs of the activities and tasks necessary to accomplish those objectives

What do we call the process of creating a positive image for a company, an offering, or a person via publicity?  

·      Public Relations (PR)

What is the process of countering the extreme negative effects a company gets when it receives bad publicity? 

Damage Control

Companies seeking good PR to highlight new hires, new facilities, or community service projects often engage in what media events?      

·      Cause-related Marketing- When a company supports a nonprofit organization in some way in order to generate positive public relations.

What do we call paying a fee to have your firm name associated with a venue or event?  

·      Sponsorship- Paying a fee to have your name associated with different things such a particular venue, person’s apparel, or event, or even a NASCAR vehicle. 

What do we call ensuring that a company’s product is included in a movie or video game?  

Product Placement- Getting a company’s product included as part of a television show, movie, video game, special event.

What do we call sales promotions in a B2B setting?  

Trade Promotions- Sales promotions aimed at businesses

A company that promotes its products and services to the final consumer are using what strategy approach? How about when they promote to channel members? 

·      Pull Strategies- promotes its products and services to the final consumer.

o   Coupons, contests, games, rebates, mail-in offers.

Push Strategies- promote its products and services to channel members.

The retailer gets a handling fee for being a part of what common demand enhancement strategy?    

Coupons- Provide an immediate price reduction off an item and the amount of the coupon is reimbursed to the retailer by the manufacturer. 

What are in-store displays designed to do?  

·      Point-of-Purchase Displays- In-store displays designed to encourage consumers to buy products immediately. 

What is a premium offer related to purchase activity?  

·      Premiums- Something consumers get for free or a small handling charge with proof of purchase.

o   Toy in cereal box. 

1.     Frequent flier miles and grocery cards are examples of what?  What else is this sort of thing?  Pg. 330

·      Loyalty Programs- Marketing efforts that reward the frequent purchase and consumption of an offering.

o   Point Systems

What was Ray Tomlinson’s contribution to the development of e-mail communication?  Pg

·      Created the first network email application in 1971

·      Developed the “@” sign. (rsrichar@olemiss.edu)

When you place an order, there will be a number of e-mails that you receive, from confirmation of your order to notice of shipping; what type of e-mails do we say these are?  

·      Transactional E-mails

These e-mails do not necessarily carry an overt promotion but instead ensure that a customer is in regular contact with the brand. What are they?  Pg

·      Newsletters 

What are the two types of commercial e-mails? Define them?  

1.) Promotional E-mails- These are more direct and are geared at enticing the user to take an      immediate action. They always feature a call to action and are designed around a specific goal.

2.) Retention-based E-mails- (newsletters) These may include promotional messages but should be focused on providing information of value to the user, geared at building a long-term relationship with the 

What is almost certainly the very most valuable asset of an e-mail campaign?  

·      Subject Line--Aids the reader in identifying the e-mail and also entice the reader to open it.

·      Running a successful e-mail campaign ---requires that a business has a genuine                   opt-in (permission given for e-mails to be sent to you) database.

o   This database, the list of subscribers who have agreed to allow a company to send them e-mails with marketing messages, is the most valuable asset of an e-mail campaign.

In e-mail terms, what is hard bounce?  

·      Hard Bounce- The failed delivery of e-mail communication due to an unchanging reason like a nonexistent e-mail address. 

A high pass-on rate indicates what?  

Define and describe brand awareness

Brand Awareness- A measure of how quickly a brand is called to mind. Making sure someone is aware of a brand or product

Which type of advertisement is shown between the pages on a Web site?

·      Interstitial Banners

What do we call a new, smaller window opened to display the advertisement?  

What are wallpaper advertisements? Floating advertisements?  

·      Floating Advertisement- Appears in a layer over the content, but is not a separate window. Usually, the user can close this advertisement.

·      Wallpaper Advertisement- Changes the background of the web page being viewed. Usually not possible to click through the advertisement. 

What are JavaScript, DHTML, GIF, JPEG, Bitmap, and UML?  

vRich Media: Advertisements with which users can interact (as opposed to solely animation) in a Web page format.

-       These advertisements can be used either singularly or in combination with various technologies, including but not limited to sound, video, or Flash, and with programming languages such as Java, JavaScript, and dynamic hypertext markup language (DHTML).

§  Javascript- A scripting language used to make HTML pages interactive.  

o   scrolling text, quizzes, forms

§  DHTML- Dynamic Hypertext Markup Language.

o   A new form of HMTL programming code that allows developers to create more interactive or responsive web pages for users.

§  GIF- Graphics Interchange Format.

o   An eight-bit-per-pixel bitmap image format using a palette of up to 256 distinct colors.

o   GIFs allow images to be compressed for faster display time.

§  JPEG- Joint Photographic Experts Group.

o   A file format commonly used for compression of photographic images.

§  Bitmap- An image represented as a two dimensional array of brightness values for pixels, a category of graphics that represents the digital image as an array of dots called pixels.

§  UML- A standardized general-purpose modeling language in the field of software engineering.

What is CPC pricing? What are the other types in ‘webpage ad talk’ - CPM, PPC, CPA, Flat rate, CPE? Define each.  

·      Cost Per Click (CPC) – When an advertiser only pays when their ad is clicked upon, giving them a visitor to their site--Typically from a search engine in pay-per-click search marketing.

·      Cost Per Mile (CPM) – Cost per thousand ad impressions. (# of times web page is viewed) An advertiser pays each time a thousand impressions of their ad are shown.

·      Cost Per Impression (CPI) – This means that the advertiser pays each time the advertisement appears on the publisher’s page.

·      Cost Per Action (CPA) – The cost of acquiring a new customer. The advertiser only pays when a desired action is achieved.

·      Flat Rate- A fixed cost per month regardless of the amount of traffic or impressions.

·      Pay-per-Click (PPC)- A concept where advertisers don't pay unless someone clicks on their ad.

Ad servers provide a consistent counting methodology across a campaign. What else might they do?  

·      Ad Server- The delivery of ads by a server to an end user’s computer on which the ads are then displayed by a browser or cached.

-       Ad serving is normally performed by a web publisher or by a third-party ad server.

-       Ads can be embedded in the page or served separately. 

What do we call limiting the number of times a user sees the same advertisement in a session?        Pg. 

1.     What do we call the process of ensuring that the users see advertisements in a particular order?       Pg. 312 

What do we call ensuring that advertisements from direct competitors are not shown on the same page?  

In Internet advertising, what does the term social serving refer to?    

·      Social Serving- Web sites gather personal data about users and then serve each user with targeted and relevant advertising. 

Know the idea of behavioral targeting in e-ads.  

·      Behavioral Targeting- The advertising network uses the profile of a user (built up with information about previous web sites viewed) to determine which advertisements to show during a given visit. 

1.     A phrase written in the online advertisements to motivate the reader to take action is termed what?  Pg. 316

Define and know the concept of viral marketing

Viral Marketing campaigns work when a message is spread exponentially and it results in a desired outcome for a brand.

-       Utilizes electronic means to spread messages.

-       It harnesses the electronic connectivity of individuals to ensure marketing messages are referred from one person to another.

-       Uses people’s electronic connectivity to increase the velocity of word of mouth.

-       People with similar interests, needs, and lifestyles tend to pass on and share interesting and entertaining content

What are the advantages and disadvantages of word of mouth marketing

·      Word of Mouth- Information that is passed between people, as opposed to messages from a company to people.

-Advantages: Can build tremendous brand equity at a marginal cost.

-Disadvantages: Tricky and unpredictable to plan. 

If growth more than doubles with each iteration, it is referred to as what sort of growth?

What term is used if a deliberate attempt is made to generate word-of-mouth in viral marketing?  

·      Amplified (or controlled) Campaigns: Have been strategically planned, have defined goals for the brand being marketed, and usually have a distinct method of passing on the message (that can be tracked and quantified by the marketer). 

Negative word of mouth spreads for a product after its launch. This is considered to be an example of what sort of viral marketing?  

·      Organic (or in-the-wild) Viral Campaigns: Grow with little or no input from the marketer.

-       Sometimes, a message is passed around in a viral nature without any intention from the marketer.

-       Usually this happens with negative messages about a brand, but it can also be a happy coincidence for a brand if the message is positive.

When Gmail was launched, it was by invitation only. What was the reason for this

·      They wanted to be ready for the traffic.

-       Anticipate wild success and ensure that the server can cope with the additional traffic.

-       Nothing will kill a campaign faster than it being unavailable, and this has happened countless times.

-       Ensure that all parties know about the viral marketing campaign so that they can be prepared for any feedback that arises from this.

-       1^st contact with customer should be positive don’t be too busy

What is social currency? Astroturfing? Seeding?  

·      Social Currency- A measure of a person’s power and influence within a defined social group.

·      Astroturfing- Covert and manipulative use of word of mouth.

·      Seeding- The process of initiating a viral campaign through strategic online placement.