Exam 3 Review: MAR3023 Spring 2012 This review sheet covers 90-95% of the important material from each

h chapter. It is not intended to be a substitute for reading the chapters nor does it release you from knowing chapters details not listed below. Only those topics specifically mentioned in class as not being on the exam are off limits. Ch. 13: Marketing Channels Channel Members Wholesaler- someone who buys large quantities of goods and resells to merchants rather than

to the ultimate customers.

Distributor- An agent who supplies goods to stores and other businesses that sell to consumers. Retailer- a merchant who sells goods at retail. Consumer- A person who purchases goods and services for personal use

Discrepancies (quantity, assortment, temporal, spatial) Quantity- The difference between the amount of product produced and the amount an end user wants to buy Assortment- The lack of all the items a customer needs to receive full satisfaction from a product or products Temporal- A situation that occurs when a product is produced but a customer is not ready to buy it Spatial- The difference between the location of a producer and the location of widely scattered markets Levels of Distribution Intensity (intensive, selective, exclusive)

Exam 3 Review: MAR3023 Spring 2012 Intensive- A form of distribution aimed at having a product available in every outlet. Achieve mass market selling and convenience goods. Number of intermediaries = Many. Selective- A form of distribution achieved by screening dealers to eliminate all but a few in any single area. Work with selected intermediaries and made for shopping and some specialty goods. Number of intermediaries = Several Exclusive- A form of distribution that establishes one or a few dealers within a given area. Work with single intermediary and made for specialty goods and industrial equipment. Number of intermediaries = One. Ch. 15: Retailing Classification of Retail Operations (ownership, service, price, etc) Major Types of Retailers (dept. store, specialty, discount, supermarket, etc)

Nonstore Retailing & Franchising Nonstore Retailing:

Exam 3 Review: MAR3023 Spring 2012

Product and Trade Name Franchising- Dealer agrees to sell in products provided by a manufacturer or wholesaler. Business Format Franchising- An ongoing business relationship between a franchiser and a franchisee. Ch. 16: Integrated Marketing Communications Communication Models (1-way & 2-way)

Inform, Persuade, Remind goals & AIDA Inform Goals- Increase awareness, Explain how product works, Suggest new uses, Build company image Persuade Goals- Encourage brand switching, Change customers' perceptions of product attributes, Influence immediate buying decision, Persuade customers to call

Exam 3 Review: MAR3023 Spring 2012 Remind Goals- Remind customers that product may be needed, Remind customers where to buy product, Maintain customer awareness. AIDA (Attention, Interest, Desire, Action)- Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message. Promotional Mix elements & IMC Advertising- Most commonly distributed by traditional media, though increasingly through nontraditional media, such as Web sites, e-mail, and blogs. Public Relations- Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community. Sales Promotion- Marketing activities - other than personal selling, advertising, and public relations that stimulate consumer buying and dealer effectiveness. Personal Selling- Planned presentation to one or more prospective buyers for the purpose of making a sale. IMC (Integrated Marketing Communications) - The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer. Push vs. Pull Push Strategy - Manufacturer promotes to wholesaler, wholesaler promotes to retailer, retailer promotes to consumer, consumer buys from retailer Pull Strategy - Manufacturer promotes to consumer, consumer demands product from retailer, retailer demands product from wholesaler, wholesaler demands product from manufacturer. Ch. 17: Advertising and Public Relations Types of Advertising Institutional Advertising - Enhances a company's image rather than promotes a particular product. Product Advertising - Touts the benefits of a specific good or service Appeal Types & Execution Styles Appeal Types Profit - Product saves, makes, or protects money Health - Appeals to body-conscious or health seekers Love or Romance - Used in selling cosmetics and perfumes Fear - Social embarrassment, old age, losing health Admiration - Reason for use of celebrity spokespeople Convenience - Used for fast foods and microwave foods Fun and pleasure - Key to advertising vacations, beer, parks Vanity and egotism - Used for expensive or conspicuous items Environmental Consciousness - Centers around environmental protection Execution Styles Scientific

Exam 3 Review: MAR3023 Spring 2012 Slice-of-Life Lifestyle Spokesperson/Testimonial Fantasy Humorous Real/Animated product symbols Mood or Image Demonstration Musical Media Types, pros/cons (newspapers, mags, tv, radio ) Newspapers - ADV: Geographic selectivity, year-round readership, high individual market coverage, etc DIS: Limited color, limited demographic selectivity, may be expensive, etc Magazines - ADV: Good reproduction, demographic selectivity, long advertising life, etc DIS: Slow audience build-up, lack of urgency, long lead time, etc Radio - ADV: low cost, highly portable, short-term advertiser commitments, etc DIS: No visual treatment, short advertising life, commercial clutter Television - ADV: Wide, diverse audience, low cost per thousand, entertainment carryover, etc DIS: Short life of message, consumer skepticism, commercial clutter, etc Outdoor Media - ADV: Repetition, moderate cost, flexibility DIS: Short message, high "noise" level, etc Yellow Pages - ADV: Internet - ADV: Fast growing, moderate cost, etc DIS: difficult to measure, not all consumers have access to internet Scheduling (continuous, pulsing, flighting, seasonal) Continuous - Advertising is run steadily throughout the period Flighted - Advertising is run heavily every other month or every two weeks Pulsing - Advertising combines continuous scheduling with flighting Seasonal - Advertising is run only when the product is likely to be used Public Relations, publicity tools New product publicity Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites Ch. 18: Sales Promotion and Personal Selling (abbreviated) Types of Consumer & Trade Sales Promotion

Exam 3 Review: MAR3023 Spring 2012 Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion Steps in the Personal Selling Process Generating Leads Qualifying Leads Approaching Customer Developing and proposing solutions Handling objections Closing the sale Ch. 19: Pricing Concepts (abbreviated) Revenue, Costs, Profit Revenue - The price charged to customers multiplied by the number of units sold Costs - The price of getting the goods to the customer Profit - Revenue minus expenses Pricing Objectives Profit- Oriented - Profit maximization, Satisfactory Profits, Target Return on Investment Sales- Oriented - Market Share, Sales Maximization Status Quo - Maintain existing prices, Meet competition's prices Elasticity of Demand & Markup Pricing Elasticity of Demand - Consumers' responsiveness or sensitivity to changes in price Markup Pricing - The cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for. Break-Even Pricing - pricing a item that only recuperates investment, but makes no profit. Ch. 20: Setting the Right Price (abbreviated) Price Skimming vs. Penetration Price Skimming - A firm charges a high introductory price, often coupled with heavy promotion. Penetration - A firm charges a relatively low price for a product initially as a way to reach the mass market Discounts, Allowances & Rebates

Exam 3 Review: MAR3023 Spring 2012 Geographic Pricing FOB Origin - The buyer absorbs the freight costs from the shipping point Uniform Delivered - The seller pays the freight charges and bills the purchaser an identical, flat freight charge Zone Pricing - The U.S. is divided into zones, and a flat freight rate is charged to customers in a given zone Freight Absorption - The seller pays for all or part of the freight charges and does not pass them on to the buyer Basing-Point - The seller designates a location as a basing point and charges all buyers the freight costs from that point Price Lining, Leader Pricing, Bait Pricing, Odd-Even Pricing, Bundling, Two Part Pricing Price Lining - Several line items at specific price points Leader Pricing - Sell product at near or below cost Bait Pricing - Lure customers through false or misleading price advertising Odd-Even Pricing - Odd-number prices imply bargain, Even-number prices imply quality Bundling - Combining two or more products in a single package Two Part Pricing - Two separate charges to consume a single good