Roles of Retailers
Retailing includes all of the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use. Retailers play an important role in connecting brands to consumers in the final phases of the buying process. Shopper marketing involves focusing the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in store, online, or mobile devise.
major types of retailers
the amount of service they provide (self-service, limited service, or full service), product line sold (specialty stores, department stores, supermarkets, convenience stores, superstores, and service businesses)., and relative process (discount stores and off price retailers). Today, many retailers are banding together in corporate and contractual retail organizations (corporate chains, retailer cooperatives, and franchise organizations).
major retailer marketing decisions
Retailers must first segment and define their target marketers and then decide how they will differentiate and position themselves in these markets. Those that they try to offer “something for everyone” end up satisfying no market well. By contrast, successful retailers define their target markets well and position themselves strongly.
Guided by strong targeting and positioning, retailers must decide on a retail marketing mix-product and services assortment, price, promotion, and place. Retail stores are much more than simply an assortment of goods. Beyond the products and services the offer, today’s successful retailers carefully orchestrate virtually every aspect of the consumer store experience. A retailer’s price policy must fit its target market and positioning, products and services assortment, and competition. Retailers use various combinations of their five promotion tools- advertising, personal selling, sales promotion, PR, and direct marketing.- to reach consumers. Online, mobile, and social media tools are playing an ever-increasing role in helping retailers to engage customers. Finally, it’s very important that retailers select locations that are accessible to the target market in areas that are consistent with the retailer’s positioning.
What is wholesaling and what are the three types
Wholesaling includes all the activities involved in selling goods or services to those who are buying for the purpose of resale or business use. Wholesalers fall into 3 groups.
1) Merchant wholesaler take possession of the goods. They include full-service wholesalers (wholesale merchants and industrial distributors) and limited-service wholesalers (cash-and-carry wholesaler, truck wholesaler, drop shippers, rack jobbers, producer’s cooperatives, and mail-order wholesaler).
2) Brokers and agents do not take possession of the goods but are paid a commission for aiding companies in buying and selling
3) Manufacturers’ and retailers’ branches and offices are wholesaling operations conducted by non-wholesalers to bypass the wholesalers.
Focusing the entire market marketing process on turning shoppers into buyers as they approach point of sale, whether during in store, online, or mobile
A giant specialy store that carries a very deep assortment of a particular line
sells brand name things for cheap but with membership fgees like costco
an independently owned wholesale business that takes title to the merchandise it handles
wholesale strategies include
whole sale segmentaltion and targeting, differentiation and service postioning, promotion, whole sale prices, product and service assortment, distrbtion
The promotion mix also9 called marketing communication mix consist of what five things
ADvertising, sales promotion, personal selling, public relations, direct and digital marketing
carefully integrating and coordinating the companys many communications channels to deliver a clear, consistent, and compelling message about the organization and its products
Integrated marketing communications
Steps in effective marketing communications are
1) Identify the target audience and its characteristics
2) Determine the communication objectives and define the response sought, whether it be awareness, knowledge, liking, preference, conviction, or purchase(430)
3) Then message should be constructed with an effective content and structure
4) Media must be selected, both for personal and nonpersonal communication
5) The communicator must collect feedback by watching how much of the market becomes aware, tries the product, and is satisfied in the process.
The four communication functions are
encoding, decoding, response, and feedback
The company must determine how much to spend for promotion. The most popular approaches are:
1) To spend what the company can afford
2) Use a percentage of sales
3) Base promotion on competitors’ spending
4) Base it on an analysis and costing of the communication objectives and tasks
(Calls for spending a lot of consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum the “pulls” the product through the channel)
Pull promotional strategy
calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers)
Push promotional strategy
engaging directly with carefully targeted individual customers and customer communities to both obtain an immediate response and build an lasting customer relationship
direct and digital marketing
– the use of paid media by a seller to inform, persuade, and remind buyers about its products or its organization
Majore advertising program decisions include
objective setting, budget decisions, message decisions, media decisions, advertising evaluation.
gaining favorable publicity and creating favorable company image-is the least used of the major promotion tools, although it has great potential for buying consumer awareness and preference.
creating and placing newsworthy information in the new media
press relations or press agency
showing your product
building and maintain relationships with legislators and politicians
working with donors or members of nonprofit organizations to gain financial or volunteer support
engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
Direct and digital marketing
using digital marketing tools such as WEb sites, social media, mobile apps and ads, online video and other things that engage consumers anywhere and anytime via their digital devices
digital and social media marketing
marketing messages, promotions, and other content delivered to on the go consumers through mobile phones, smartphones or tablets
traditional direct marketing campaigns include…
face to face, personal selling, direct mail marketing, catalog marketing, telemarketing, direct response television
marketing that occurs by sending an offer, announcement or reminder directly to a person at a particular address
direct mail marketing
public policy issues in direct and digital marketing include…
irritation, unfairness, consumer privacy, fraud, and a need for action(meaning gov’t regulates marketing and looks at do not call list andstuff)
List and briefly describe the five major promotional mix tools
ADvertising,(paid media by seller to promote product to potential buyers)
Sales promotion( offer incentives like coupons or discounts)
Personal selling, (involves personal interaction to buyers get them more involved and helps build long term relationships with buyers)
Public relations, (how business is perceived by public with new stories, catalogs having big part of it)
Direct and digital marketing(engaging targeted customers to obtain an immediate response and gain relationship
Define the terms reach, frequency, and impact and give examples.
Reach- percentage of people in the target market who are exposed to Ad campaign
(people try to reach 70 % of target market in first year)
Frequency-how many times average person in target market is exposed to ad campaign each year (want consumers to have exposure frequency of 3 times a month)
Impact- the qualitative value of the message exposure (ad in Times taken more serious then in MAD Tv magazine)
6. List and briefly describe the four important decisions (as outlined in Chapter 15) marketing managers must make when developing an advertising program.
Setting advertising objectives- specific communication task goal to be set
Setting advertising budget- make a set amount of money you want to allocate to your companies advertising campaign
Developing advertising strategy-creating advertised messages and selecting advertised media
evaluating advertising campaigns- look over you past decisions
Suppose you are the marketing coordinator responsible for recommending the sales promotion plan for the market launch of a new brand of energy drink sold in supermarkets. What promotional tools would you consider for this task and what decisions must be made? Explain and give details.
My promotion plan would have a buy two 4 packs for price of one as well as every 4 pack bought is an entry in a chance to win tickets to the X-games. Therefore I would use the promotional tools of sweepstakes and price packs and the decisions we would have to make would be for how long do we offer this price pack promotional tool.
What is Conspicuous Conservation and why is it important to marketing managers when introducing new products into the marketplace? What tactics, in particular, would be effective when marketing to a consumer segment that is sensitive to conspicuous (environmental products) consumption? Provide example.
1. conspicuous conservation is when you purchase something to say something about yourself. That you understand trends, and style. Apect of human nature to be noticed for what we do and buy.
imply that everyone who is like this buys this and make the like this what people want to say about themselves
What are the central principles of David Kelly’s approach to human centered design? How can his insights be embraced when developing new products? Give specific examples of how his design process has been used in the past to improve an existing product. What are some limitations (or potential drawbacks) when enacting Kelly7’s approach. Give details.
Empathy for consumers, collaboration cultures, and build they ideas
can be embraced by observation
They used his design process to make the new and improved iPhone 3
a collaboration culture is sometimes hard to achieve with all the diversity in workplace
Explain the channeling and distribution practices of Walmart and identify the factors that have contributed to this company’s success (or rise to prominence). Give details. What might be the negative impact on the American economy of using the ‘everyday low prices’ as the primary marketing strategy? Given the traditional stakeholders of a business, who is benefiting the most from Walmart’s strategy? Conclude your essay with an assessment of Walmart’s future (i.e., into the next decade).
everyday low suppliers is great for customers but bad for suppliers
consumers are benefiting the most getting the best prices and in the future I see them getting smaller store and trying to compete with amazon for the online market.