Retailing Terms: Utility, Communication, Credibility, Expertise, Advertising, Media, Promo, Quizzes of Marketing

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TERM 1 Retailing DEFINITION 1 All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use-2nd largest industry (12% of GDP)- 90% are single store businesses, less than 50% of total sales TERM 2 Place Utility DEFINITION 2 Having products available where consumers need them-Offer convenient locations Ex: ATMs in other retail locations, drive thru service, Red Box TERM 3 Time Utility DEFINITION 3 Having products available whenever they need them-Are open 24 hours per day Ex: Dick's offering sports products year round, Meijer open 24 hours, Wendy's staying open late TERM 4 Form Utility DEFINITION 4 The ability to customize the production and output of a particular product to best meet a consumer's needs -Can customize purchases Ex: Mass custimizationlike Nike ID and Ralph Lauren's Create Your Own services TERM 5 Possession Utility DEFINITION 5 The ability to facilitate purchase through financing options- Permits different payment options Ex: Car dealersoffering financing and trade-in deals TERM 6 Depth of product line DEFINITION 6 The store carries a large assortment of each product item(# of items in each product line) TERM 7 Breadth of product line DEFINITION 7 The store carries a variety of different product items(# of different product lines) TERM 8 Category Killers DEFINITION 8 Retailers that focus on exceptional depth in a single or few product categories 1. Dominate the market 2. Offer very competitive prices Ex: Staples, Best Buy, Bass Pro Shop TERM 9 Atmospherics DEFINITION 9 The management of the physical cues in a retail environment. Include signs, symbols, and artifacts (scents, etc.) present in a shopping environment. Ex: Marriott has custom scent Pleasant scent increases lingering at slot machines Slow tempo music increases time in the store and sales Color sets the mood TERM 10 Wheel of Retailing DEFINITION 10 A descriptive theory about how retailers emerge, evolve, and sometimes fade away TERM 21 Response DEFINITION 21 Impact the message had on the receiver's knowledge, attitudes, or behaviors TERM 22 Feedback DEFINITION 22 The sender's interpretation of the response, which indicates whether a message was decoded and understood as intended TERM 23 Errors in the communication process DEFINITION 23 - Source may not transform idea into an effective set of symbols- Properly encoded message may be sent through the wrong channel and never make it to the receiver - Receiver may not transform set of symbols into the intended idea - Feedback may be so delayed or distorted that it is of no use to the sender TERM 24 Credibility DEFINITION 24 A function of expertise, trustworthiness, and attractiveness TERM 25 Expertise DEFINITION 25 Consumers attribute expertise to a spokesperson. Like to evaluate expertise at the category level (i.e. doctors are experts on medicine, athletes are experts on sports equipment, etc.) TERM 26 Trustworthiness DEFINITION 26 Sender should be perceived as objective and unbiased.Most trustworthy sources of messages are those who have nothing to lose or gain if a consumer makes or doesn't make a purchase (why word of mouth is so influential) TERM 27 Attractiveness DEFINITION 27 Attractive, pleasant, likeable spokespersons have influence. Human nature results in us being drawn to attractive and likeable people, thus these factors can make a spokesperson more effective TERM 28 Push strategy DEFINITION 28 Directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product. -Salespeople call on wholesalers and retailers to encourage orders and provide sales assistance -Sales promotions, such as case discount allowances, are offered to intermediaries to stimulate demand -Marketers push products to channel members so they in turn will push them to their customers TERM 29 Pull strategy DEFINITION 29 Directs promotional mix at ultimate consumers to encourage them to ask retailer for a product -Manufacturers face resistance from channel members who do not want to order a new product or increase inventory levels of existing brand -Seeing demand from consumers, retailers order product from wholesalers, pulling item through intermediaries -Firms use direct-to-consumer advertising: Complements traditional personal selling and free samples encourage consumers to ask retailer for a product TERM 30 Institutional advertisements DEFINITION 30 Build goodwill or an image for an organization rather than promote a specific product or serviceObjectives: Build confidence in company name Support the firm's public relations plan Counter adverse publicity TERM 31 Product advertisements DEFINITION 31 Focus on selling a product or service.3 forms: Pioneering/ informational Competitive/ persuasive Reminder TERM 32 Pioneering (informational) advertisements DEFINITION 32 Type of product advertisement.-Tell people what a product is, what it can do, and where it can be found-Are used in introductory stage of product life cycle-Inform target market- Interesting, convincing, and effective TERM 33 Competitive (persuasive) advertisements DEFINITION 33 Type of product advertisement.-Promote specific brand's features and benefits-Persuade target market to select the firm's brand over a competitors-Comparative advertising: Increasingly common form of competitive advertising Shows brand's strengths relative to competitor's Attracts more attention to advertiser's brand Increases perceived quality of the advertiser's brand Needs market research to provide legal support for the claims made TERM 34 Reminder advertising DEFINITION 34 Type of product advertisement.-Is used to reinforce previous knowledge of a product-Is good for products that have a well- recognized position and are in the mature phase of product life cycle-Reinforcement advertising: Type of reminder ad Used to assure current users they made the right choice TERM 35 Fear appeals DEFINITION 35 Suggest that consumer can avoid some negative experience through the purchase and use of a product or service, change in behavior, or reduction in the use of a product-Popular in social marketing campaigns (anti smoking, drug use, seat belts) Moderate threat: needs to be strong enough to register with consumer but not too extreme Present a solution to the problem Highly credible source: delivered by highly credible source, someone who has experienced negative outcomes TERM 46 Deals DEFINITION 46 Short-term price reductions, such as a 2-for-1 deal- Temporary price drops where you may be able to buy products at a substantial discount TERM 47 Premiums DEFINITION 47 Consist of either goods offered free or at a large savings over its retail price-Ex: getting a free hat when signing up for a credit card at an MSU football game TERM 48 Contests DEFINITION 48 Consumers apply their skill or analytical or creative thinking to win a prize-Promotions where consumers use some skill to win a prize.-Ex: Ad development contests for the Superbowl TERM 49 Sweepstakes DEFINITION 49 Require participants to submit an entry but there is no analytical or creative effort by the consumer-No talent needed-Ex: placing your business card in a jar for the drawing of a free lunch TERM 50 Sampling DEFINITION 50 Offering of a product for free or at a greatly reduced price- Offering samples at the supermarket or bundled trial packs with other products TERM 51 Product Placement DEFINITION 51 Goods and services are embedded into movies and television programs as a form of promotion/advertising-Ex: the use of Ford vehicles in the Bond movies, etc. TERM 52 Media Richness DEFINITION 52 Refers to the degree of contact between two people in the communication- with face-to-face contact considered higher contact than email contact.-Higher media richness means greater social influence from one person to the other, relevant to marketing managers. TERM 53 Self-disclosure DEFINITION 53 Refers to how deeply one person reveals thoughts, feelings, and opinions to the other in their communication.-Greater self-disclosure usually establishes greater influence of one person on the other in the communication, again relevant to marketing managers. TERM 54 Facebook DEFINITION 54 -Over 15 billion photos, 250 million more daily.-425 million people use it with mobile phones-Users spend 1 out of 7 minutes logged on the internet-Average user has 245 friends-Ideally built to building brand exposure through its main landing pages and advertising platform-Ideal for engaging customers at a community-level and creating real sense of community among your best customers-Can serve as a great supplemental landing page for brand-based content that users can help shape TERM 55 Twitter DEFINITION 55 -175 million registered users, 100 million active users, 230 million tweets per day-Main advantage is timeliness, can provide quick real-time updates that are pushed directly to consumers-Drive traffic to a brand's website by providing teaser stories-Provides direct line to the brand that consumers can use to complain and the brand can leverage for recovery-Can be leveraged for competitive intelligence to better understand what competitors are up to and what customers think about their initiatives TERM 56 YouTube DEFINITION 56 -Watched over 3 billion hours of video a month-Uploaded 72 hours of video to its site each minute-4 billion page views a day, over 1 trillion a year-Provides a channel for marketers to deliver complex information to their consumers. Particularly true for B2B companies that may have to deliver technical specifications-Also provides a great channel for extending traditional branded communications where brand managers can post "B rolls" and show off new campaigns before they hit traditional media TERM 57 5 steps in developing a macro-focused SM campaign DEFINITION 57 1. Establish goals2. Choose platform3.Interact4. Analyze and measure5. Control and optimize TERM 58 Establish Goals DEFINITION 58 Establish business objectives that you are trying to acheiveObjectives:-Increasing revenue-Decreasing costs- Increasing customer satisfaction TERM 59 Choose Platform DEFINITION 59 Simply identify which platform best meets your needs TERM 60 Interact DEFINITION 60 There are 4 types of interaction: Engage Contribute Participate Create Focus is on getting participation and creation of new content as these users spend more and make referrals