13: CHAPTER Mkting channel (of distrb): interdependent orgs ease transfer of owner. Channel members (intermediaries/resellers/middlemen): negotiate, buy/sell, &
facilitate change of owner; specialization & division of labor: more efficiency & lower avg costs; economies of scale: efficient to produce large # of single product, aid
producer who lack motivation/finance/expertise to mkt direct to end user; Merchant wholesaler: buys goods from manu, resell & receives/takes title to goods.
Agents/brokers: no take title. Type of intermediary : product: standard; complexity; gross margin; buyer consideration : how often purchased; how long wait to receive;
market: how many buyers; general location. Mkting functions performed by inter: transactional : contacting, promote, negotiate, risk taking; logistical : physical distrib,
sorting (assort,accum,sort out,allocate), storing, break bulk (conform to customer requirements, overcome temporal/spaital), efficient/cost-effective/flow/store;
facilitating : research/financing. Dual distrib: 2/more channels to distr same product to target mkt; nontraditional channels : internet/mail-order/infomercial (limit brand
cover; niche mkt to gain access/attention w/o estab inters; ave of sales). Strategic channel alliance: coop agreement b/w firms to use aleady estab channel (efficient for
promo; growth success); Channel choice: market: consider: concentrated sales force; widely dispersed, inters less expensive; large mkt more inters; product: more
complex, custom, expensive- short/direct channel, direct sales force; more standard; channel can change life cycle; delicacy; producer: large finance/manag/mkt
resources; OWN; small rely on inters; desire to control. Intensity of distrib: intensive: available every outlet channel relationships: arms length: cooperative: info
partner, moderate trust, not LT invest; integrated: tight, linked, high trust, formal. Conflict: clash of goals/methods (dont keep pace, fail expectations, diff
ideology/perception of reality, horizontal conflict: same level, healthy; vertical: diff levels in channel). Partnering: joint effort, comp advantage (quick, improve, low
cost; flow info). Service: min wait, manage capacity, improve delivery CHAPTER 14: Supply chain: connect chain firm entities, in/external to company,
perform/support logistics. SC-Mgmt: coord/integrate activities into seamless process, from source to point of comsump, result in ^ customer/economic value; customer
driven (unique, low inv/costs/warehouse, ^ service&revenue). Integration: many firms coord activities, are linked to satisfy customer; relationship: develop social
connections to guide comm when work togth; shared mental frame & depend on one another (max value to customer); measurement: perform assess
transparent/measurable across unit, assess perform as whole & hold accountable; technology/plan: create/maintain info tech systems connect managers (require info
hard/software to exchange info among ppl); material/service supplier: link to outsiders that provide good for smooth, high-quality customer experience (common
vision- value/satisfy); internal operations: w/in goals,top-level service to cust; customer: competency enable firm offer long-last, distinctive, value offer to customers
of ^ value (profit/^ sales); highly integrated=better satisfy customer, ^ profits. Business processes: bundles interconnected activities. Mgmt: customer relat: prioritize
mkting focus on diff groups based on LT value (loyalty, initiation/maintaint), cust service: complaints, concerns, question, comments voiced, demand: order fulfill:
manu flow: have needed resources w/ flex & move thru multi-stage production (quality/speed/flex), supplier relat: like manu flow, parallel to cust relat, ensure
resources are available, product develop&commercial: returns: Logistics: RM, inv, FG mng flow -- source /procurement (important-manu/supp, purch dept, goal-low
cost, vendor relation), scheduling (push-make when low inv/pull-order place by customer [mass custom, JIT, chasing]), order process (order and fill, comm, electronic
data interchange EDI), inv control (assortment to meet demand, MRP=raw mat, DRP=goods from manu to user, auto=inv system when good sold to user), w arehouse
handle (storage, system=move inv), transportation (cost, transit time-truck, reliable-pipe, capability, access-truck, trace-air). Info system: link logs. SC team: move
goods to consumer. CHAPTER 19: Price: sacrifice, info cue, value perceived saisfy. trends in mkt: eval price, bargain generic brands, internet easy, US recession 0709. Profit-oriented obj: profit max: MR=MC; rev large as poss relative to costs; rev^=cust saisfy, low costs=efficiency, maintain/slight cut cost=loyalty from programs;
satisf profits: reasonable level, consistent. ROI: (net profit after tax)/(total assest); % shows profit relative to investment; comp environ, risk, economy. Sales-oriented:
mkt share: product sales as % of total; ^=effective; mkt share & ROI related; low=slow grow, few change. Status quo pricing: Determine pricing: demand, cost,
distrib/promo, perceived quality, customers, internet, stage of PLC. Price equilibrium: supply=demand. Elastic demand factors: available sub, purchase power,
durability, other users, inflation rate. Yield Mgmt System YMS: adj price use complex math to fill unused capacity by discounts, limit sales, and overbook. Markup
pricing: cost of buying + profit and expenses not accounted for; % of retail price; retail=(cost)/(1-desired return on sales); gross margin; keystoning: mark up price by
100% (double). PLC: intro: set ^ price, demand origin; growth: price stable; comp, broad mkt, economies of scale low cost; maturity: price decline, distrib
channel=cost factor, cost^=price^; decline: price decline/stable; 1 firm left. Distrib strategy: selling against brand: sell well-known brand at high price to sell store
brand at low price; gray-mkt goods, large profit margin, manu control over price. Internet: extranet: prvate electronic network link company w/ supplier & customers;
quick/easy compare; data about cust; auctions; shopping bot: program search web for best price (every retailer, niche-oriented). Dept store: heavy discount/markdown;
profit margin guarantee or cash rebate; fines for violations. Price-quality: quality=price high promo; prestige: high price=high quality; hedonistic effect: high
price=pleasure/excitement; allocative effect: allocate budget on alt goods, more spent on 1, less on another; dimensions: ease of use, versatility, durable, service,
perform, prestige.
CHAPTER 20: set the right price: 1.Estab pricing goals 2.estimate demand, costs, profit 3.choose price strategy to help determine base price ( price strategy: basic LT
frame that estab initial price & direction for mvmt over cycle; skimming (mkt plus approach): firm changes high intro price, w/ heavy promo, low price over time, adv,
legal protect, encourage comp; penetration: charge low price first to reach mass mkt; high volume sales, no comp, price-sensitive, close-outs, can damage cycle; status
quo: identical price to comp, simple) 4. Fine-tune base price w/ pricing tactics. Govt regs: unfair trade practice acts: law prohibit wholesale/retailers from selling below
cost; protect small, min % markup; price fixing: agreement on price charged; discrimination: robinson-patment 1936: cant sell to 2/more firms w/in short time; cant change
price for purch power; 3 defenses for seller: cost, mkt conditions, competition; predatory: charge very low price to drive comp out of business/mkt, raise price soon after.
Base price: general price level to sell good; fine-tuning: short run price level change. Discounts: quantity (cumulative/non), cash, functional/trade, seasonal, promo/trade
allowance, rebate, 0% financing. Value-based pricing: good level price (too low=try to buy mkt, obj decisions, underpricing) . Tactics: stimulate demand, ^ store patronage,
w ide variety. Single-price: all goods same price. Flexible/variable: diff price, same goods. Professional services: a lot of experience, train, certified; hourly
rate/performance charge, ethically dont overcharge. Price lining: offer product line w/ price points (cell phone). Leader/loss-leader: sold at cost/below so other items
bought too. Bait: false/misleading price ads, high pressure selling. Odd-even/psych: odd=bargain $0.99, even=quality. Bundling: 2/more items same package, special price.
2-part: 2 separate amounts for single good. Consumer penalty: extra fee for violate purch agreement. Product line: price for line; complementary/sub/neutral. Joint cost:
share in manu/mkting. Inflation: cost-oriented tactics: ^ sales, low profit margin, no line, delayed quotation: instal/accessory, finished/delivered item then price set;
escalator: final price shows cost ^ b/w order placed & delivery; constant price, new fees; demand-oriented: price shading: discount to ^ demand; inelastic=cultivate
selected, unique, package design, ^dependency. Recession: build mkt share now, fall prices, value-based: good value for money; bundling: greater value, (un)=lower price;
suppliers-cost savings (renegotiate, help, pressure, paring down). CHAPTER 16: PROMOMIX: 1. ads 2. sales promo 3. personal selling 4. public relations W ord of mouth.
Communication (share thoughts thru common symbols): interpersonal: direct, F2F; mass: comm of concept/message to large # ppl; Blogging: alters mkting process for
mass comm: ads, PR, sales promo- move away from impersonal, indirect towards opp, direct feedback w/ company. PROMOTION Informs Persuades Reminds
AIDA attention, interest, desire, action; thinking/feeling/doing (cognitive/affective.conative), high involvement; (from AIDA) -> ADS: AI, PS: IDA, PR: AI, SP: D.
Factors: nature/characteristics of product; costs/risks; social risks; stage in PLC; target mkt characteristics; type of buying decision (routine/complex); available funds $.
Integrated mkting comm IMC: coord all promo messages for product to assure consistency at every contact point where company meets consumer (ads, direct mail, PS,
SP, PR); single voice, begin cust, develop relat, 2-way continuous comm, focus stakehdr, results of feedback. CHAPTER 17: ADV,MRKTSHARE: new brands=small
mkt, ad response function= spend more on ads & sales promo b/c diminishing returns; also, need exposure. Affect consumers: inform/influence, neg to pos, + attitude for
brand & rank. Types: institutional : enhance company image, not promote product; advocacy: org expresses views on controversial issues/responds to media attacks;
product pioneering: competitive: demand for brand; comparative : Ad campaign: series of related ads focus on common theme, slogan, set of ad appeals. Ad objective:
specific comm task that campaign should accomplish for specific target aud during specific period. Ad appeals: reason to buy product (common: profit, health, fear,
admiration, convenience, fun/pleasure, vanity/egotism, environmental consciousness); unique selling proposition: desirable, exclusive, believable ad appeal selected as
theme of campaign. Executing (11) : slice-of-life, lifestyle, spokesperson/testimonial, fantasy, humorous, real/animated product, symbols, mood/image, demonstration,
musical, scientific; (most creative part of ad). Postcampaign eval: monitor- met goals? analysis of success. Medium: channel to convey message to target. Media planning:
series of decisions make, select/use media, optimal/cost-effective comm message. Media Types: newspapers (geo flex/timeliness) , magazines (reproduce), radio (low cost),
tv (wide reach), internet (fast-grow), advergaming, outdoor media (flex, low cost, repeat), alt media (innovative). Consider: cost per contact, reach, frequency, audience
selectivity, flexibility, noise level (distract), life span. Media sched: type, specific publications/programs, & dates; types: 1.continuous, 2.flighted, 3.pulsing, 4.seasonal;
factors: target mtk, vehicle, comp ad campaign, capable to convey info, compatibility w/ editorial. CHAPTER 18: SP: consumer Tools pull: coupons, rebates, premium,
loyalty mkting programs/frequent buyer programs contests, sweepstakes, sampling, P-O-P display, online sales promo. Trade tools push: trade allowance (price
reduction to whole/retail), push money (encourage others to sell product), training, free merchandise, store demonstrations, business meetings, conventions, trade shows
Sales Process: 1. Generate leads 2. Qualifying leads 3. Approaching customer & probing need 4. Developing & proposing solutions 5. Handling objections 6. Closing the
sale 7. Follow up