MARK3000 Test 3 (15,17-19) [McManus]

supply chain management

integration of suppliers, manufacturers, warehouses, stores, and transportation intermediaries into an operation to deliver

channels management

managing relationships btw manufacturers and other companies involved in selling product


physical movement of goods and info from point of raw material supply to consumption

manufacturers sell to _____ who sell to ________ who sell to customers

manufacturers sell to merchants/wholesalers who sell to retailers who sell to customers

______ facilitate sale from manufacturer to wholesaler

agent / broker

direct vs indirect marketing channels

direct: manufacturer to buyer
indirect: has 1+ intermediaties (manufacturer>wholesaler>retailer>consumer)

horizontal vs vertical channel conflict

horizontal: when 2 competing retailers /_manufacturers have conflict
vertical: when members of same marketing channel (wholesaler to retailer) have conflict

______ efficiency is improved by marketing channels

contact efficiency

discrepancy of quantity

manufacturer produces in large volume, consumers buy in small volume

discrepancy of assortment

- manufacturer produces many of one item
- consumer buys one of many items

temporal discrepancy

difference in when something is produced and when it is purchased

spatial discrepancy

difference between where something is produced and where it is purchased

3 reasons for intermediaries

1. they develop sales skills
2. overcome market discrepancies
3. improve contact efficiency


electronic data interchange
- sends businesses documents from retailer to vender electronically

3 pros of EDI

- cycle time
- easily analyzed/used
- improves communication quality

in a ____ supply chain, stores place orders based on actual sales
in a ____ supply chain, merchandise is shipped to stores based on sales forecasts, not actual sales


____ supply chains are generally more sophisticated and efficient than ____ supply chains.

Pull - generally more sophisticated and efficient than push supply chain

pull vs push inventory

- orders based on sales data
- more accurate inventory
- better when demand is uncertain
push inventory:
- merchandise allocated based on forecast
- doesn't need fancy IS system
- good for steady demand items

6 steps in distribution center

1. manage inbound transportation
2. check using UPC and RFID
3. store / cross-dock
4. prep merch for floor
5. prep to ship
6. ship to store

the person who coordinates deliveries to distribution center


receiving vs checking

receiving: get arrival receipt
checking: check if undamaged, and that this (received) is what was ordered

UPC label

universal product code (black/white line bar code)
- indicates the manufacturer of the item, a description of the item, information about special packaging, and special promotions
- records receipt of the merchandise as it arrives at a distribution center


radio frequency identification tag
- on the shipping carton
- identifies the carton's contents as scanned and counted as it is being received and checked

________ refers to items that are received prepackaged for individual stores


if _______ is used, little processing is required at the distribution center, and merchandise can move on to its destination quickly

cross docking

floor ready merchandise

ready to be placed on the selling floor immediately bc it's been ticketed and marked

ticketing and marking

making identification / price labels and placing them on merch

JIT inventory systems

just in time
- also called (QR) quick response system
- delivers less merch more frequently
- designed to minimize inventory levels

3 pros of JIT system

- reduced lead time
- increased product availability
- lower inventory investment

integrated marketing communications

promotion dimension of the 4 p's

3 elements of IMC

- consumer
- communication channels
- results of the communication

communication channel process

- sender (firm) sends message
- transmitter encodes message
- (media) communications channel
- consumer decodes message (receiver)

t/f all receivers decode message the same

f - differently
senders adjust messages by medium and receiver's traits

AIDA model

- model of the series of mental stages through which consumers move as a result of marketing communications
Awareness ? Interest ? Desire ? Action

6 promotion methods

personal selling
sales promotion
direct marketing
online/social media

the most visible element of IMC is


as consumers become more skeptical about marketing, ____ is becoming more important


public relations

- actions to maintain positive relationship with community and media
- "free" media attention
- importance of PR has grown as cost and credibility increase

sales promotions

- aimed at both end users or channel members
- used with other forms of IMC
- used for both short-term and long-term objectives

personal selling

- salesperson
- more expensive than other forms of promotion

which method of promotion is more expensive?

personal selling

direct marketing

- growing element of IMC
- includes e-mail and mobile marketing
- database technology improves

online marketing occurs on

- websites
- blogs
- social media

2 methods for setting IMC budget

objective and task method
rule of thumb method

objective and task method

- IMC budgeting method
- determines cost required to do specific tasks to accomplish communication objectives

Rule-of-thumb method

IMC budgeting method
- use prior sales and communication activities to determine budget


measure of how often the audience is exposed to a communication within a specified time period


measure of consumers' exposure to marketing communications
- ex) % of pop that has seen an ad commercial

GRP = gross rating points =

reach* frequency
- way to measure marketing success

search engine marketing

web advertising method
- companies pay for keywords that are used to catch consumers' attention when searching the web


# of times an ad appears in front of a user


# of times a user clicks on an ad

click thru rate (CTR) =

clicks / impressions


ROI for marketing
- ad profit/ad cost

Transit sneakers

transit is an upscale sneaker store in NYC modeled after vintage NYC subway trains

7 steps in an ad campaign

1. identity target audience
2. set advertising objectives
3. determine budget
4. convey message
5. evaluate and select media
6. create ads
7. assess impact

3 q's to ask when identifying target audience

who is ur audience?
current target market?
new target market?

Push versus pull strategy

push: get manufacturers to push ur product onto custs (rather than others)
-aimed at channel members
pull: get customers to demand aka pull product
- aimed at final custs

ads, consumer sales promotions, and online marketing is part of the ___ strategy
while personal selling and trade sales promotions are part of the ____ strategy

ads, consumer sales promotions, and online marketing is part of the pull strategy
while personal selling and trade sales promotions are part of the push strategy

6 consumer sales promotions

Product Placement

2 trade sales promotions + issues

1. POP displays
2. store managers contests
- Must offer fairly
- Can create conflict in the channel

3 advertising goals


cross promoting

promoting 2 things at once (mcdonalds monopoly)

informative advertising

- build brand awareness
- used in introductory
- focus on education or creating buzz

persuasive advertising

- in the growth and early maturity stages of the PLC
- compares your brand to other brands
- should focus on features, advantages

reminder advertising

- in mature stage of PLC
- used to prompt repurchases
- does not include lots of information

ad can be ______ or _______ focused

product or institutional

product focused ads

used to inform, persuade, remind about a product

institutional ad

used to inform, persuade, remind about issues related to places

3 types of institutional ads

Corporate image
- Company supports struggling group
Advocacy advertisements
- Company takes a position on social issue
Public Service Announcements
- form of social markeitng

3 considerations when determining advertising budget

1. methods
- % of sales?
- competitive parity?
2. expenditures vary over the course of the Product Life Cycle
3. market and product nature influence budget size

the message

nike - just do it"
- must meet standards for language, images
Be truthful


in-exaggerated praise for promotional purposes
- promotional statement that expresses subjective, rather than objective claims, that no reasonable person would take literally

a message can be conveyed thru ______ or _______

info or emotions

media mix

combo of media used and the frequency of advertising each medium

media planning

process of evaluating and selecting media mix to deliver a message to audience

media buy

the purchase of airtime or print pages

pros and cons of ads thru TV

- wide reach
- sound and video
- high costs
- lots of channel options

pros and cons of ads thru radio

- pretty inexpensive
- wide reach
- selective targeting
- no video
- short exposure
- less focus

pros and cons of ads thru magazines

- very targeted
- subscribers pass along to others
- relatively inflexible
- takes time for the magazine to be available

pros and cons of ads thru newspapers

- flexible
- timely
- able to localize
- can be expensive
- ads have short life

pros and cons of ads thru internet

- can link to detailed content.
- flexible
- specific targeting
- ad can be blocked
- clutter

pros and cons of ads outdoors

- inexpensive
- opportunity for repeat exposure
- not targeted
- short exposure time
- placement problems

3 ways to asses impact of marketing metrics



- before ad campaign starts
- makes sure it makes sense


evaluating campaign's impact by monitoring key indicators like daily/weekly sales volume

post testing

evaluating IMC campaign impact after it's implemented

3 regulatory agencies in ads


FTC federal trade commission

- enforces truth in advertising laws;
defines deceptive and unfair advertising practices

FCC federal communications commision

- regulates tobacco advertising
- prohibits obscene, indecent language


- Package labeling and inserts
- defines terms such as "light" and "organic"
- required disclosure /warning statements

2 way flow of info between a real seller and potential occurs in _______

personal selling

3 times to use personal selling

1. item is expensive
2. item is complex / needs explanation
3. customer is a business

3 ways to personal sell

thru internet,
face to face

5 steps of personal selling process

1. generate leads
2. pre approach
3. sales presentation/ handling reservations
4. close sale
5. follow up

4 sources of leads

current custs
networking events
trade shows

to qualify a lead, u must determine if a customer has what 3 things

- need for item
- ability to buy
- willingness to buy


- before salesperson sees cust, they do background research
- extends qualification procedure

goal of pre-approach

- determine cust's specific need
- and options most likely acceptable to customer

5 service quality dimensions to use when following up after sale


3 values added by personal selling

info and advice
business consultant

3 ethical/legal issues in personal selling

1. sales manager and sales force
2. sales force and corporate policy
3. salesperson and customer

sales force and corporate policy issue

firm may have a policy to sell goods or services to people who cannot afford them or should not have them