Exam 2 Guide PDF

Preview

Summary

Mert Tokman exam 2 study guide...

Description

Here's some info on your exam... 1. There will be 40 multiple choice questions on the test from lectures 7, 8, 9, 10, 11, and 12. 2. Here are some topics you can focus on each chapter (feel free to read the book but mainly focus on the Powerpoint slides/class notes)... Lecture 7 (Chapter 14): Place 

Difference between supply chains and marketing channels o Supply chains- operations focused, creating relationships with suppliers o Marketing channel- making available to consumer (ex. Website, amazon, target, etc.)  Downstream channel  Management of relationships with customers o Supplier network- managing relationships with supplier network o Logistics management- execution of moving products and storing products, moving materials to your location  Transportation, warehouse, inventory management, international customs

Example: Automotive supply chain

 Consumer experience takes place at dealer network  Have to work together to create the best experience for the consumer Example: Takata Scandal o Recall because of deadly airbags, 34 million vehicles recalled o Faulty component  effects Honda cars Example: Apple Foxconn Scandal o Suicides and suicide attempts o Beaten for losing prototype, not paid wages, humiliate workers for mistakes Example: Volkswagen Scandal o When update software might affect mpg o Effects value of the company on stock market  impact of losing trust





Dell vs. Walmart o Responsive supply chain  Dell  Laptop preferences are changing  Constantly changing to meet with consumer changing tastes o Efficient supply chain  Wal-Mart  Customers just need lower prices  Cutting waste (ex. Time- time products spend in a warehouse)  Distribution centers, conveyer belts Different types of marketing channels (direct vs. indirect) o Common marketing channels for consumer offerings by the kind and number of intermediaries 

Different types of intermediaries

o

Go to smaller retailers first to get a reputation, then begin to sell to wholesaler to sell to a retailer and then to a customer; Wholesalers expect to be compensated to sell your products to retailers Specialty products need agents, somebody who already has relationships in the industry

o

Li & Fung supply chain intermediaries manufacturing clothing

o



 



Use of multichannel marketing

o Transaction- they take risk o Logistical- transportation, storing, bundles (complementary good) Consumer perspective  how do retailers create value for you, convivence Intensive vs selective vs exclusive market coverage o Intensive- as many retailers as possible to make product as available as possible  Ex. Toilet paper o Selective- choose 2/3 retailers, only one that carries our product  Ex. Rolex o Exclusive- only 1 retail outlet, signed contract, to carry product, not enough market for a product  Ex. Only one Honda dealership in Harrisonburg Sources of Channel conflict o Vertical conflict o Disintermediation- eliminate retailers from market, create own retail channel o Horizonal conflict- conflict with competitor, selling similar products but using the same retailer to sell

Lecture 8 (Chapter 15): 

Different types of retailers

o Independent retailers  Smaller, speciality retailers like Health Nutrition Goods “Mom and Pop Stores”--could possibly sell supplements through those “mom and pop” retail stores o Corporate Chain  Example: GNC o Contractual Systems  Franchises  Mix of both either through corporate office or go into the stores one by one and convince them this is a good product o Difference in selling to those types as a supplier...for an independent retailer you would send your sales people one by one to each store and they would provide

o o o

o



samples, try to get them to buy into it. Shelf space is the most important aspect for retail stores. Corporate you go into the headquarters Self Service  *Example: RedBox Limited Service--reactive in their services, need to find someone to help you out  *Example: Walmart Full Service--proactive service retailers, meaning someone would meet you as you enter the store, or someone could be with you for the entire time you are in the store and try and help you make a decision  *Example: Bloomingdales Stores vary in terms of the breadth and depth of their merchandise lines  High Breadth  *Example: Walmart  Low Breadth-specializing on one type of product, variety of product categories is limited to one  *Example: Bike shop downtown selling bikes  Category Killers--carry an entire product line in each category,high depth and in the middle in terms of breadth  Dicks or Best Buy  Depth--within given category how many brand names do you carry?  High depth--Footlocker, all types of shoes, all brands of shoes etc.  Low depth--only selling Bianchi Bikes

What value do the wholesalers and retailers add to the channel

o Time utility  Can find anything anytime you want even if it is a seasonal product retailers are carrying it so you can find it any time you want  Sports Authority o Place utility  Trying to minimize travel time for customers, sometimes called spatial convenience  *Wells Fargo with so many ATM Machines o Form utility  Personalization or mass customization, retailers ability to customize the product for you  *Ralph Lauren o Possession Utility  Gain very easy possession of product without haggle  With automobile dealerships you go through a lot of haggle to get the product  *Carmax 

Non-store retailers

o Many types of retailers do not have stores  Television home shopping networks like QVC  Direct Mail and Catalogs  Automatic vending  Online retailer like Amazon or an online jewelry store

   

Telemarketing--dying down but somecases still effective for Insurance Sales Direct Selling--dying, these are the door to door sales or like the Mary Kay parties where you invite people to your home to sell the products-taking advantage of the one-to-one interaction As you go from bottom to top the customer contact varies, vending machines no customer contact but direct selling the most customer contact

Franchising

o Top 5 Franchises in the United States  1.Subway  2. McDonald’s  3. Liberty Tax Service  4. Sonic Drive-in Restaurants  5. InterContinental Hotels o Competing franchises are not good for franchise owner for example Subway--do not care about location unlike Mcds o Mcd’s says they are more in the real estate business instead of the burger business, they do all of the location analysis and determine which locations need Mcd’s-never see multiple Mcd’s in one small vicinity and are never competing for the same customers geographically Lecture 9 (Chapter 9): 

Dynamics of world trade

o Size of international trade has grown drastically from 1980-2007 but then the recession occurred and the trade went down internationally as well but by 2010 it started to recover and in the last couple years there has been a decline in international trade.  Trade wars? 

Market-entry strategies; protectionism and trade barriers

o Rise of Protectionism  We need to keep jobs in our own country so if we want to do that we need to stop dealing with other countries (France started to do this)  Trying to protect their own market rather than protect it globally o Trade Barriers  Tarifs  ex) if you increase taxes from japanese cars coming abroad they will have a harder time competing against cars in united states  Australians are taking advantage currently of trade war between U.S and China  Quotas and Import Licenses  Limit amount of items coming in  Boycotts and Embargoes  US currently has a boycott on Cuba, North Korea, and Iran--no products from those countries are coming into the U.S  Monetary barriers











As a government you can manipulate the value of your money, chinese government does this alot. How? Well if you print a lot the value of your money goes down so Governments have the power to manipulate currency a lot Standards  Example: FDA Standards (US going to Canada to buy drugs bc they are cheaper..well FDA stays they are not up to US standards and cannot be sold in the US) Domestic Subsidies  Example: Americans paid corn farmers a subsidy which led to soybeans, wheat. Government pays US farmers more so people buy more US corn instead of going to Mexico for corn. The US is able to dominate the corn market with super cheap corn--leads Mexican Corn farms to go out of business Antidumping penalties  International laws against this--cannot sell your corn below costs to another country with intention of running those other farmers out of business

Adaptation to international markets

o Events and Trends Affecting Global Business  World Trade Organization: ‘a referee between countries’ WTO will go in and resolve conflict between countries. Protectors of the international trade laws  World Bank: financial institutions--provide financial assets for the countries in trouble. Focus more on the developing countries who need infrastructure to compete with developed countries. A Lot of times when the leaders receive money from world bank they pocket the money and the people in those countries do not see the money and benefits from receiving money from World Bank  IMF: focused on helping developed countries in financial crisis like -Greece, Portugal, Croatia  Trade Agreement between Canada, US, and Mexico--products can move freely without being taxed  EU--products and people can move freely (28 countries in EU-Britain is coming out of it)  Technology and social media has created a world wide market  Example: Etsy--can go and buy something from anywhere in the world  Foreign Environment factors we have to deal with when we go to other markets  Competitors  Regulations  Economy  Sociocultural  Technology o Environmental Adaptation  Must adapt to the culture you are going to

 

Example: Mcds has products on their menu in Turkey that we do not see here--”McTurco” product adaptation

Obstacles to adaptation

o Self reference criterion is an unconscious reference to one's own cultural values, experiences, knowledge as a basis for decisions  Example: Abercrombie & Fitch target market outside of US is totally different o Ethnocentrism: notion that one’s own culture or company knows best how to do things--not ignorance but arrogance  Example: in the US we have seperate rooms for washer and dryer--in other countries not the case and many do not even use dryers. Dryer Manufacturers really struggled when selling dryers in Italy --could not give them away for free. Italy generally believe a dryer is a waste of money, space and energy  We need to become culturally intelligent if we want to be able to sell things there o Products can be adapted because of the way the product is used same thing with promotions--what is funny to us may not be funny to someone abroad  For example: sarcasm here is our way of humor but abroad they take that literally and it is not funny to them 

5 global marketing strategies

o Product extension strategy  ex) marlboro billboard ad in china still the same american cowboy on billboard--what makes the product is that it is american and it needs to get promoted abroad o Product adaptation strategy  ex) india big mac is not beef it is chicken maharaja mac bc no one eats beef in India o Communication adaptation strategy  Nike commercial in India we saw different types of sports like cricket did not go too far and did not change identity of their brand o Dual adaptation strategy  Levi’s holiday commercial of the blind kid feeling the rhinestones on the jean jacket--not an appeal levi uses in the United States. In the US they appeal to active, tough outdoorsy people. Abroad very family, emotional appeal o Product Innovation Strategy  “The crust” that Starbucks uses in Japan--bc it is an American Experience so they are expected that when they go into one. In their mind apple pie is an American Symbol so they created a drink with a pie crust on top Lecture 10 (Chapter 16): 

The communications process o Promotional mix  Starbucks advertising in magazine

o



 Promotion buy one get one free, incentivize  Send cost card through mail  direct marketing  Direct sponsorship  PR  Sales person  barista Integrated marketing communications  Use all your tools to make a theme  Communication process consists of six key elements  Source  Starbucks encodes message via advertising, promotion, sales person, etc.  Receiver  customer receives message and encodes message  Message  what you want the customer to understand, keep is simple  North Face Ad  Source- north face  Receiver- customer because we are target market  Purpose- customers decode promotion and put idea in their mind o Word association that goes with brand name brave, pushing limits, etc.  YouTube video  viral marketing, there is always a surprise

IMC planning process Planning- developing the promotion program  Separate promotional plan for each target market, know what platforms your audience uses  Specify the objectives  Push- don’t know what brand to buy, rely on retailer to tell them what to buy o Ex. Garage door brand name o Information about your preferences to retailer then pushes product to consumer





Pull- target directly to the consumer o Ex. Shoes, clothing

How much are you going to spend  Percentage of sales budgeting  Competitive parity budgeting o Match competitors spending o Gain more market share by spending more on advertising  All you can afford budgeting- start-up company o Similar to disposable income, taking out the necessities  Objective and task budgeting- companies with large marketing budget o Objective: increase brand awareness by 10% o Budget: I need to spend at least 50k to do so o Different because you don’t set a budget before, base it off of the objective  Select the right promotional tools o Ex. Promotion, advertising, direct marketing  Design the promotion- again the attention of the customer o Ways to: humor, sex, emotion, scarcity, demographic, lifestyle, bandwagon  Schedule the promotion o Seasonality o Target market media habits- days of the week, times of the day o Target market usage

Implementation- executing the promotion program  Pretest the promotion- put together a focus group, potential customers, get feedback  Carry out the promotions Evaluation- assessing the promotion program  Posttest the promotion- quota, press clipping, response rates o Ad recall  Unaided- what ad do you remember from the magazine, always do this first  Aided- do you remember seeing the barbie ad, describe it to me

Coupon usage- if not good response, you can increase the discount Quota- need to sell at least $200,000 worth of products to become eligible for product  lower quota or do sales training o Press clippings- how many media outlets covered my story  Ex. Facebook making masks out of goodwill  measure by how many websites are posting about this o Response rates- for direct marketing, how many people responded to the email Make needed changes o o



Lecture 11 (Chapter 17): Types of advertisements  Product advertisements o Product Reminding ad (ex. Timberland- long lasting)  Institutional advertisements o Institutional reminder (ex. 3M Core advantage is adhesive) o Institutional Comparative ad- pork comparing to chicken Developing the advertising program  Identifying the target market o Ex. Barbie video target audience is kids and parent  Specifying the advertising objectives o New product information o Reminder of an existing product o Comparing to existing competition o Institutional advocate o Institutional reminder  Setting the advertising budget o Last lecture  Creating the actual message o Appeals- demographics, humor, emotional appeal, sex, etc.  Selecting the advertising media









Scheduling the advertising o Continuous- same amount throughout the year o Flighting- certain seasons where you actually sell o Pulsing- combination between the two, fixed amount through the year but in certain seasons you increase the amount Pre-testing o Dial systems- focus groups  Ex. Presidential debate when they like something turn up the dial to know what the public likes  Show video of ad give them a dial Executing o Full service agency- does everything for you  Research, select media, develop copy, produce artwork, coordinates integrated campaigns with all marketing efforts o Limited service agency- specializes in one aspect of creative process  Provides creative production work, buys previously unpurchased media space o In-house agency- provides range of services, depending on company needs Post-testing o Aided vs. unaided

Using marketing dashboards  Cost per Thousand Impressions (CPM)

o o

YouTube advertising CPM is $7.60 to be able to reach at least 1,000 people TubeMogul- outsourcing your media scheduling, has the data from youtube so you can reach your target market

Sales Promotions  Coupons- send to homes or allow to find coupons in store or digital coupons o Must have value  Deals- giving something extra to the customer o BOGO  Premiums- feel like they are getting better value o Bundles, 25% more drink for free  Contests o Monopoly by Mcdonalds  Sweepstakes

  

 

Samples Loyalty programs- point or punch card system o Motivate repetitive purchases Pont of purchase displays- during holidays o Coke Christmas tree o Valentines day Rebate- comes from manufacturer of the product Product placement- put in movies and tv shows o Ex. Starbucks in sleepless in Seattle

Public relations  Publicity o News release  Proactive- about upcoming product  Reactive- about product review o News conference  Sponsorships  Social responsibility- donate percent of revenues for a cause ***Direct Marketing  Direct orders  Lead generations  Traffic generation Lecture 12 (Chapter 10): Digital Marketing Viral marketing- the big umbrella  Guerilla marketing- surprise the customers with your campaign, capture surprising moments through video in hopes that it will go viral, shared in social media platforms  Great equalizer for start-up firms because it is low cost and reaches a lot of people  Ex. North Face from last lecture  Street art- gain attention, able to see the message on the billboard, little bit of a surprise  Ex. Monster suction vacuum cleaner  created street art on the highway  Augmented reality- QR codes or virtual reality, how can customers visualize and test the product, share with their friends and family and can possibly go viral  Ex. IKEA furniture in your home app  Social media marketing- creating a community of customers  Ex. TikTok deal drop picking some customers to send free stuff to  Ex. #stayathome Reasons to use social media platforms  Under Amour Facebook Page o Making masks and donating supplies o Stephen Curry post o Post weekly or biweekly  LinkedIn o Internal information about company and their offices  Twitter o Not as many followers

Important Social Networks  Facebook o Make it familiar, but with a twist o Leverage your assets o Keep it fresh- constantly create new content, new post every day, keep it interesting, find out how much is too much, Biweekly? Weekly? Daily? o Let users get engaged and guide content- people commenting positive, reposting  Reddit is very good at this, they create a brand community (ex. Live interview and allow your customers to interact with famous people)  Instagram, Twitter, TikTok o Used to create buzz, hashtag campaigns o Short term big buzz  Linked...