1
Q
What is Supply Chain?
A
3 or more companies linked by one/more upstream or downstream flows.
-products, services, finances, information from a source to a customer
2
Q
Downstream flow of products/services
A
movement of goods, information, promotion towards final customer
3
Q
Two-way flow of info
A
both up and downstream
4
Q
Upstream flow of finances
A
Movement of payment information, returns from the customer towards the manufacturer and other supply chain partners
5
Q
Supply Chain Value Added
A
value added to products moving downstream: availability, manufacturing, packaging
value added to returns moving upstream: payment, feedback, product development
6
Q
Production Costs
A
reduce costs by streamlining processes (little resistance)
7
Q
Location
A
Value through better logistics (movement of goods)
8
Q
Time
A
Reducing upstream and downstream flow time
9
Q
Control
A
Firms better oversight of upstream and downstream flows
10
Q
Channel Level
A
Layer of intermediaries performing some work to bring the product and its ownership closer to the final buyer. adds value
11
Q
Types
A
All start with Producer (consumer channel)
-Direct to customer (no intermediaries)
-Purchase/sell for personal use: retailers to customers
-Wholesaler to retailer to consumers (large quantities from a variety of producers, warehouses) ex: groceries
-Distributors, retailers, consumers (buys noncompeting products, warehouses them)
12
Q
Types of intermediaries
A
intensive, selective, exclusive
13
Q
Intensive
A
distribution of products in as many outlets as possible (consumer products). Boosts revenue, impulse buying, convenience, awareness
ex: toothpaste, soap, Doritos
14
Q
Selective
A
distribution of products through a limited number of dealers (luxury brands, reduces cost, improves relationship building, consistent with price/value)
ex: Samsung, apple, Rolex
15
Q
Exclusive
A
Distribution of product through one/few intermediaries in a specific region, (automobiles, major appliances, furniture, exclusiveness, control, relationships
16
Q
Pull strategies
A
gain customer interests for product (whole process promotions)
17
Q
Push strategies
A
gain intermediaries interests for product (promotion by intermediary)
18
Q
Supply chain orientation
A
Management philosophy guiding actions for managing upstream and downstream flows (outward focus)
19
Q
Retail link program
A
suppliers can manage their own product data (inventory, sales, inventory turnover, etc)
20
Q
Achieve
A
low inventory levels and inventory risk
21
Q
Supply chain management
A
actions taken to coordinate the flows in a supply chain
-view as a system of interrelated companies that make up the supply chain and something to be managed
22
Q
Tradeoffs
A
Sales person offers volume discount without knowing if the product is available
amount of inventory vs customer demand
23
Q
Relation based strategy
A
Used to ensure that related companies function almost like one organization
24
Q
Conventional distribution/marketing channel
A
one or more independent channel members, each separate business seeking to max own profits at the expense of the profit for the system as a whole
25
vertical marketing system
provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system to meet customer needs
26
Logistics
Part of the supply chain management that plans, implements, and controls the flow of goods/services/information between the point of origin and the final customer
SCM: planning, implement, control
Demand: transportation, inventory, distribution,, materials management and warehousing
procurement to operations management to customer
27
Integrated marketing communications (IMC)
-coordinate various promotional mix elements to provide (customer) clear and consistent message about firm's products
-more effective at creating and developing relationships with customers
-less effective at look and sound of the message that are inconsistent in different places
28
IMC & Promotional Mix
Marker uses communications mix: advertising, sales promotions, personal selling, public relations, and direct/digital
^^They use inform, persuade, remind promotional strategies that will communicate customer value (promotional media and message)
Noise around this
IMC: clear consistent, compelling, flexible message
-The customer supports product, brand, organization
29
Communication method
means for marketers to get a message to customers
30
Mass media
Large # of people in short time
-TV, newspaper, billboards, busses/vehicles, product placement
31
electronic media
share on any electronic device for audience viewing
-social media, digital ads, mobile ads, email, YouTube, opinion leaders
32
personal communications
two-way communications (no unanswered media-email)
-salespeople, front line employees, customer service reps, online chat
33
Point-of-purchase
any custom display outside of their natural habitat
-in-store promo signage, brochures, product package design, "gas pump", ATMs
34
physical space
space that surrounds each person
-store design, web design, permanent signature, store layout/atmosphere, employee uniforms
35
press
general media used to communicate with the public
-press reports (TV/paper), magazines, blogs, trade publications, online
36
Advertising & Sales promotions steps
1. Identify target audience
2. Establish communication goals
3. Design a message
4. Choose the media to send the message
5. Select the message source
6. Collect feedback
steps 2-5 for inform, persuade, and remind promotions strategy
37
1. ID target audience
2. Establish goals for each promotion
effects what will be said, how it will be said, when it will be said, where it will be said, who will say it
Inform, persuade, remind
38
3. Designing the message
Content: what to say (appeal)
Structure/format: how to say it (execution)
Appeal: reason for purchase (benefits)
Execution: the way the message is communicated
rational/emotional appeals/moral appeals
39
4. Choose media to send message
Personal
Personal: involves two or more people communicating directly with one another (face-to-face, phone, email, texting, or internet chatting)
Word of mouth: impact of personal words and recommendations of trusted friends, associates, and other consumers carries considerable influence
Buzz marketing: cultivating opinion leaders and getting them to spread info about product/service to others in their communities. Also carriers considerable influence
40
4. Choose media to send message
Non-personal
Non-personal: media that carries messages without personal contact or feedback, includes major media, atmosphere, and events
Broadcast: TV/radio
Print: newspaper, magazines, direct mail
Display: billboards, signs, posters
Digital: email, websites, mobile, social media
Events: grand opening, shows, exhibits, tours
Product placement; brands incorporated in movie or TV show
41
New Marketing Communications Model
-Recognizes all touchpoints where the customer encounter company
-Each contact will deliver a brand message
-Goal: consistent, positive, flexible messages
-Ties together all company messages (IMC)
42
5. Selecting source
message source: message impact depends on how the target market audience views the communicator
-highly credible or popular are more persuasive
Selecting specific media: within each media vehicle type
-TV: modern family, ABC, etc
-Magazine: Time, Rolling Stone
-Online: Twitter, Facebook,etc
43
5. Selecting source & 6. Feedback
Selective timing: best time to present media (all year, seasonal, same time each year, real time (digital)
Feedback: communicator understands effect on the target audience by measuring behavior resulting from the content
44
Promotional Mix (AIDA model
attract [attention], increases [interest], move to i want it [desire], purchase the product [action]
45
Methods of determining the promotion mix
-nature of method: selection of method by strength
-nature of product: selection of methods based on characteristics of product
-target market: selection of method based on characteristics of target market
-marketing budget: many constraints and approaches
46
Content Marketing
In the new marketing communications model
-lines are rapidly blurring between traditional and new digital marketing
-marketing now view themselves more broadly as content who create, inspire, and share marketing content
-using their own and that created by consumers/others
-content marketing is not about product.
It informs/educates/entertains/
inspires
47
Digital marketing
online marketing, delivers content immediately, sent thru digital channels, devices, platform
48
Inbound marketing
blogging, webinars, or follow up emails
49
Search engine marketing (SEO)
driving traffic to a company's website from "free" or "organic" search results using search engines.
50
Email marketing
cost-effective to retain, nurture, or attract new customer base
51
Social media marketing
online social networks and applications as a method to communicate mass and personalized messages about brands and products.
52
Types of digital buyers
product focused, browsers, researchers, bargain hunters, on-time focused
53
Product focused
replacing an existing product or purchasing a product that has been pre-chosen (textbook) or regularly repurchased (toothpaste). Most likely to purchase
54
Browsers
Consumer is not really looking to make a purchase-fill shopping cart/abandon/browse fav sites
55
Researchers
purchasing product for the first time. more deliberate likely will result in a purchase in store or online.
56
Bargain hunters
coupon and auction sites. Often combined with browsing, no purchase guarantee
57
On-time focused
may combine product-focused shopping, browsing, researching, and bargain hunting at same time. Shopping for a gift and no return to shop once purchase is made
58
Digital sellers
digital malls, digital marketplaces, auction sites, buying clubs
59
Digital malls
digital retail site where a variety of sellers stock their goods with different purchase options (price, terms, delivery). Customer unaware of the firm selling, website redirects to Amazon
60
Digital marketplaces
digital retail site made up of small, independent seller. Etsy: handcrafted/vintage from different sellers
61
Auction sites
List goods from individuals or firms that can be purchased through an auction bidding process or directly thru a "purchase now" feature (ebay)
62
Buying clubs
Allow customers to buy in bulk similar to warehouse clubs (Boxed.com is an example)
63
Visible influencers
paid search, paid stories, paid display ads, sponsorship
64
Paid search
online advertising where a company pays to be a sponsored result of a customer's web search
65
Paid stories
ads that appear as content designed to look like stories to the viewer
66
Paid display ads
Everything from banner ads to YouTube video ads
67
Sponsorship
Sponsor YouTube or Instagram celebrities who in turn endorse the firm's products. Paid to discuss firm's product and again on clicks
68
Invisible Marketing Influences
cookies, cookie synching, geotracking, bots
69
Cookies
Small data files stored on websites, often "invisible" to user that can generate a user profile about a consumer. the profile might include browsing history or login information
70
cookie synching
allows cookies to embed in a person's computer and follow that person as he or she moves through various websites
71
Geotracking
Allows marketers to use a consumer's geographical location to determine what goods and price points for these goods will come up in a search. Make offers based on location
72
Bots
Software applications that run automated tasks over the internet. Look for key words, automatically send information on Facebook, Sponsored ad, or Instagram
73
Social media
customizable experience.
Customizable: choose content to interact with or view (traditional media static0
Two-way communications with friends or firms (traditional media one-way)
Targeted based on data (traditional media uncontrollable)
74
Consumer feedback
feedback, reviews, chatter, influencers
75
Feedback
Different ways that consumers can report their satisfaction or dissatisfaction with a firm's products
76
Reviews
Direct assessment of a product (good, service, idea) that is expressed through social media for others to see and consider
77
Chatter
Customer shares, forwards, retweets a marketing message
78
Influencers
Customers who have a large following and credibility within a certain market segment
79
Mobile Marketing
-set of practices that enables organizations to communicate and engage with their audience through any mobile device or network
-81% americans have phones
-Mobile minutes account for 79% of all online time
-Mobile marketing uses many of the same platforms as social media marketing (e.g., Facebook, Snapchat, Instagram, Twitter).
-Allows for location-based advertising.
-Allow for more instantaneous feedback compared to other social media marketing channels.
-Makes it easier for customers to make educated last-minute decisions on where to eat.
80
trade sale promotions
Typically directed toward front-line employees that deal directly with customers. & designed to increase sales for a product or brand.
81
Cash incentives
Paid employees for selling a specific product or brand.
82
82
Sales contest
-Sweepstakes for employees based on their sales volume of a product to customers.
-Contest prizes can include vacation days, gift cards, travel, or even a new car (for expensive or high-volume sales).
83
Cost reduction
All employee programs – submit cost reduction ideas for rewards
84
Product life cycle
The time it takes a product category (SUV) to go from Introduction until it is Removed from the market.
inform, persuade, remind
85
two metrics
To gauge how often and how many consumers see an advertisement
86
Frequency
A count of how often a consumer is exposed to a promotional message (television advertisement, online advertisement, billboard, etc.).
87
Reach
The percentage of the target market that has been exposed to the promotional message at least once during a specific time period.
88
Goal
The percentage of the target market that has been exposed to the promotional message at least once during a specific time period.
89
TV pro/con
Pro:
-Combines multimedia
-Appeals to many senses
-Mass or selected markets
-Low cost/exposure
Cons:
-Fleeting w short shelf life
-Clutter – competing ads
-Avoidance
-High absolute cost (SB $5.5m)
90
Radio pro/cons
Pro:
-Place quick & immediate
-Market selection easy
-Geo. flexibility & Low cost
Cons:
-Audio only
-Low attention
-Short shelf life
-Clutter – Competing ads
91
Newspaper pro/cons
Pro:
-Flexible
-Timely
-Highly credible
-Local coverage
Cons:
-Short shelf life
-Poor reproduction
-Low pass along rate
92
Magazines pro/cons
Pro:
-Many geo./demo/lifestyles
-Good reproduction
-Credible & Prestige
-High pass-along rate
Cons:
-Long lead time
-Location placement often not guaranteed
-High cost
93
Direct mail pro/con
Pro:
-High target selectivity
Highly personal
Flexible
Cons:
-Overuse/Junk mail
-Competing ads
-Relatively high cost/exposure
94
Digital/mobile pro/cons
Pro:
-Interactive & Flexible
-Timely
-Low cost/exposure
Cons:
-Potentially Low impact
-Avoidance (click-through)
-SPAM & Computer speeds
95
Outdoor pro/cons
Pro:
-Repeat exposure
-Relatively low cost
-Low clutter
-High Geo. targeting
Cons:
-Space limits creativity
-Long commitment time
-Public discontent-Clutter
-Not audience specific
96
Ethics and Law
Advertising is an area where some marketers push ethical boundaries. Despite laws and regulations, it is often difficult to establish when a line has been crossed.
97
Puffery
Advertising that makes broad exaggerated or boastful statements about a product or service that are subjective (a matter of opinion) rather than objective (measurable facts).
In these cases, marketers are able to make claims that cannot technically be proven false, so they are legal—yet the claims may be exaggerations that mislead consumers.
98
Regulating
Federal trade commission (FTC), federal commuications commission (FCC)
99
Federal Trade Commission (FTC)
Protects consumers and businesses from anticompetitive behavior and unfair practices.
100
Federal Communications Commissions (FCC)
Created to enforce laws that prohibit obscene, indecent, and profane content from being broadcast on radio or television networks.
101
Self regulation
Involves a structure to settle disagreements in business without having to include government resources
102
Sales promotions
-A set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product.
-Build stronger relationships with retailers and customers
-Build excitement for products & usually increase short-term sales
-Offer sales promotions to support other elements of their promotional mix
103
Coupons
Documents that entitle the customers who carry them to a discount on a product. They remain the most common type of sales promotion.
104
Rebates
-Allow consumers to recoup a specified amount of money after making a single purchase.
-Consumer prefer coupons
-Marketers prefer rebates because customers often fail to redeem (40% - 60% do not redeem)
105
Samples
-Trial portions of a product used to encourage product purchase.
-Expensive since they are giving away product
106
Contests
-Sales promotions in which consumers compete against one another and must demonstrate skill to win.
-Engage consumers & empower them to promote but can be expensive (each entry judged)
107
Sweepstakes
Sales promotions based on chance
108
Loyalty Programs
Allow consumers to accumulate points or other benefits for doing business with the same company.
109
Trade sales promotions
Promotional tools directed to business-to-business (B2B) firms, including wholesalers and retailers.
110
two major approaches to trade sales promotions
allowances and training
111
Allowances
Paying retailers for financial losses associated with consumer sales promotions or reimbursing a retailer for an in-store/local expense to promote a specific product
112
Training
Reseller sales force training on product benefits to better equip salesforce to speak with customers (features, advantages, and benefits.
113
trade sales promotions
Typically directed toward front-line employees that deal directly with customers. & designed to increase sales for a product or brand.
114
Cash incentives
Paid employees for selling a specific product or brand.
115
Sales contest
Sweepstakes for employees based on their sales volume of a product to customers.
Contest prizes can include vacation days, gift cards, travel, or even a new car (for expensive or high-volume sales).
116
Cost reduction
All employee programs – submit cost reduction ideas for rewards
MKTG 300
flashcards
Decks in class (3)
# Cards
