CH-14-15 Wholesaling, Retailing, and Physical Distribution – Business : Book Guide

This Document Contains Chapters 14 to 15 CHAPTER 14 Wholesaling, Retailing, and Physical Distribution 14.7 TEXTBOOK ANSWER KEYS 14.7a Return to Inside Business Chobani 1. When Chobani decided to pursue distribution in big retail chains, what level of market coverage was it aiming for? Why was this appropriate? Chobani was seeking intensive market coverage. The case mentions that instead of distributing Greek yogurt through health-food stores, Chobani wanted channel partners that could reach as many consumers as possible. This was appropriate because Chobani was intended as a mainstream product for consumers who like yogurt, not just for buyers who seek specialty products in health food stores. 2. When planning physical distribution activities for a perishable food product like Chobani yogurt, what elements do marketers have to pay particular attention to—and why? One important consideration is refrigerated transportation at every stage of the process, from bringing milk to Chobani’s plants to the delivery of Chobani yogurt cups to distribution centers and individual supermarkets. Without refrigeration, Chobani’s quality would not be preserved. Another consideration is inventory management, because Chobani yogurts remain fresh for a limited period. The company and its channel partners have to do a good job of managing the amount of yogurt on hand and on order to avoid running out or having excess inventory, which might spoil if it can’t be sold quickly. 14.7b Review Questions 1. In what ways is a channel of distribution different from the path taken by a product during physical distribution? Channels of distribution involve the people who handle merchandise—the various intermediaries that act as representatives of retailers or manufacturers. Physical distribution is the plane, train, pipeline, truck, or boat that transports goods from one area to another. 2. What are the most common marketing channels for consumer products? For industrial products? The most common marketing channels for consumer products are: a. Producer to consumer b. Producer to retailer to consumer c. Producer to wholesaler to retailer to consumer d. Producer to agent to wholesaler to retailer to consumer For industrial products, they are: a. Producer to industrial user b. Producer to agent middleman to industrial user 3. What are the three general approaches to market coverage? What types of products is each approach used for? The three general approaches to market coverage and the types of products in each are: a. Intensive distribution: candy, gum, and cigarettes b. Selective distribution: furniture and major electrical appliances c. Exclusive distribution: expensive pianos, designer clothes, and fine china 4. What is a VMS? Identify examples of the three types of VMSs. A vertical marketing system (VMS) is a centrally managed channel resulting from vertical channel integration. This merging eliminates the need for certain intermediaries. One member of a marketing channel may assume the responsibilities of another member, or it may actually purchase the operations of that member. There are three types of VMSs. In an administered VMS, one channel member dominates the other members, perhaps because of its large size. A powerful manufacturer such as Procter & Gamble receives a great deal of cooperation from intermediaries that carry its brands. Under a contractual VMS, cooperative arrangements and the rights and obligations of channel members are defined by contracts or other legal measures. For example, a cooperative like Ocean Spray is organized for the purpose of distributing its products. In a corporate VMS, ownership is the vehicle by which production and distribution are joined. A grocery store chain, for example, may obtain its bread products from several of its own large bakeries. 5. List the services performed by wholesalers. For whom is each service performed? The services performed by wholesalers for retailers include promotion, market information, and financial aid. The services performed by wholesalers for manufacturers include providing an instant sales force, reducing inventory costs, and furnishing market information. 6. What is the basic difference between a merchant wholesaler and an agent? A merchant wholesaler is a middleman who purchases goods in large quantities and sells them to retailers and institutional, farm, government, professional, and industrial users. The agent paves the way for a buyer or seller by providing contacts and calling on customers, but does not do the buying. 7. Identify three kinds of full-service wholesalers. What factors are used to classify wholesalers into one of these categories? General-merchandise wholesalers deal in wide product mixes for such items as drugs, hardware, nonperishable foods, cosmetics, detergents, and tobacco. Limited-line wholesalers stock only a few product lines, such as groceries, lighting fixtures, or drilling equipment. Specialty-line wholesalers carry a select group of products within a single line. Wholesalers are classified by the number and types of products they carry. 8. Distinguish between (a) commission merchants and agents and (b) manufacturers’ sales branches and manufacturers’ sales offices. Commission merchants differ from agents in that the former carry merchandise, whereas the latter merely represent the manufacturer selling the merchandise. Commission merchants have the power to set prices, whereas agents have the prices set for them by the manufacturer. The difference between a manufacturer’s sales branch and a manufacturer’s sales office is that the former is essentially a merchant wholesaler and the latter is essentially a sales agent. 9. What is the basic difference between wholesalers and retailers? Wholesalers are the middle link between the manufacturer and the retailer and usually act behind the scenes of a product. Retailers are a direct link to the consumer and are the ones out front performing the last transaction between the manufacturer and the buying public. 10. What is the difference between a department store and a discount store with regard to selling orientation and philosophy? A department store is distinctly service oriented and sells goods at fair market or higher prices. A discount store is a help-yourself type of business and usually operates on lower markups. 11. How do (a) convenience stores, (b) traditional specialty stores, and (c) category killers compete with other retail outlets? Convenience stores compete with other retail outlets by remaining open beyond normal business hours. Traditional specialty stores compete by carrying a single category of merchandise, such as baked goods or tires, and by offering specialized knowledge to their customers about the goods they sell or the services they perform. Category killers compete by offering a large product selection and very low prices. 12. What can nonstore retailers offer their customers that in-store retailers cannot? Nonstore retailers can offer customers the convenience of either shopping from their own homes or around-the-clock machine services that eliminate having to stand in lines. 13. Compare and contrast community shopping centers and regional shopping centers. Community shopping centers include one or two department stores and some specialty stores, along with convenience stores. Regional shopping centers usually encompass large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes hotels. 14. What is physical distribution? Which major functions does it include? Physical distribution is all the activities concerned with the efficient movement of products from producer to the ultimate user. It performs not only the movement of both goods and services but also inventory control, order processing, warehousing, materials handling, and transportation. 15. What activities besides storage are included in warehousing? Aside from storage, the activities included in warehousing are: a. Receiving goods b. Identifying goods c. Sorting goods d. Dispatching goods to storage e. Holding goods f. Recalling, selecting, and assembling goods g. Dispatching shipments 16. List the primary modes of transportation and cite at least one advantage of each. The primary modes of transportation and their advantages are: a. Railroads—inexpensive b. Airplanes—fast c. Trucks—go door to door c. Waterways—carry bulkier loads d. Pipelines—continuous shipping, reliability, and minimal handling 14.7c Discussion Questions 1. Which distribution channels would producers of services be most likely to use? Why? Producers of services would be most likely to use direct channels of distribution because these channels include no intermediaries. In this way, producers can more effectively control prices and don’t have to pay for the services of intermediaries. In addition, they can retain closer ties with those customers for whom they provide services. 2. Many producers sell to consumers both directly and through middlemen. How can such a producer justify competing with its own middlemen? A producer can justify competing with its own middlemen because profit is the ultimate goal. If the middlemen charge too much for their services, the consumer’s cost increases. By eliminat-ing the fees of middlemen, producers can enhance their profits while offering consumers lower prices. In addition, they can retain closer ties with those customers for whom they provide ser-vices. 3. In what situations might a producer use agents or commission merchants rather than its own sales offices or branches? A producer might use agents or commission merchants to cut the costs of having a large sales force, to reduce inventory costs, or to collect vital market information to which it might not otherwise have access. 4. If a middleman is eliminated from a marketing channel, under what conditions will costs decrease? Under what conditions will costs increase? Will the middleman’s functions be eliminated? Explain. Costs will decrease if the services provided by the middleman can be completed more efficiently by someone else in the distribution channels. Costs will increase if the marketing middleman taking over the functions is less efficient than the middleman that was eliminated. The functions will be performed by somebody. In most cases, it is a question of who can perform the services most efficiently. 5. Which types of retail outlets are best suited to intensive distribution? To selective distribution? To exclusive distribution? Explain your answer in each case. A chain store might be best suited to a system of intensive distribution, because it is most likely to carry the types of products—gum, candy, cigarettes—included in this system. A department store and some specialty stores might be best suited to a system of selective distribution, because they are most likely to carry the larger items—major appliances, home furnishings—included in this system. An upscale specialty store or upscale department store like Saks Fifth Avenue might be best suited to a system of exclusive distribution, because it is most likely to carry the exclusive, expensive items included in that system—jewelry, designer clothes, and fine china. 6. How are the various physical distribution functions related to each other? To the other elements of the marketing mix? The various physical distribution functions are related in that they all consist of activities involving movement of products from producer to user. They are also related to the other elements of the marketing mix because the goal is to get a product that will sell; to ensure there is a market for it; and to get it to that market quickly, efficiently, and profitably. 14.7d Comments on Video Case 14.1 Suggestions for using this video case are provided in the Pride/Hughes/Kapoor Video Guide. Taza Cultivates Channel Relationships with Chocolate 1. Which distribution channels does Taza use? Taza uses several different channels. As a producer, it sells to retailers as well as to wholesalers and distributors. Taza also sells a small portion of its chocolate products directly to consumers, mostly via its Web site. 2. In what ways does Taza benefit from selling directly to consumers? What are the potential problems that Taza may experience by selling directly to consumers? When Taza sells directly to customers, it can earn a higher profit margin on its sales because it acts as its own intermediary. It must take responsibility for shipping to these customers, however, which can be difficult and expensive for a perishable item like chocolate. If its direct-to-customer operation were to grow too strong, its distributors, retailers, and wholesalers might not be pleased at what they see as interference with their own market for Taza’s products. 3. If Taza wanted to grow its sales by broadening physical distribution of its products, do you think it should work more closely with its wholesalers or with its distributors? Why? Although students may prefer wholesalers because of the higher profits, or distributors because of larger orders, the instructor should make the point that both wholesalers and distributors are important. 14.7e Comments on Case 14.2 Dell Direct and Not-So-Direct 1. Is Dell using intensive, selective, or exclusive distribution for its market coverage? Why is this appropriate for Dell’s products and target markets? Dell seems to be using selective distribution for its market coverage. Although it remains committed to marketing directly to consumers and business customers, it has also expanded its coverage worldwide by doing business with selected intermediaries (such as Walmart, AT&T, and value-added resellers). This is appropriate because computer and smartphone buyers sometimes prefer to “touch and feel” the product or talk with a sales professional face to face before they make the purchase. 2. What are the major advantages and disadvantages of Dell’s use of multiple market channels instead of using just the direct marketing channel? Advantage: The direct channel worked well in the United States, but utilizing multiple market channels has enabled Dell to gain even more of a presence in the United States and even internationally. Advantage: Consumers in some markets prefer to buy from retailers rather than buying online, and businesses may prefer to buy from resellers that can customize systems to their specific needs. By using multiple market channels, Dell makes its products available to customers when and where they prefer. Disadvantage: There is always the risk that using multiple market channels may lead to conflicts between Dell’s best interests and its intermediaries’ best interests. 3. In what ways did Dell’s physical distribution practices change as it changed to using multiple marketing channels? When the decision was made to use multiple channels, Dell had to change its physical distribution efforts in several ways. Prior to the change, Dell produced computers based on individual customer orders. That is, each computer produced was based on the individual customer’s product specifications. Dell did not have to manage an inventory of unsold finished products. After the change to using multiple channels, Dell did have to manage the inventory of unsold finished products. In addition, Dell had to establish sufficient warehousing to efficiently serve retailers. Prior to the change, Dell’s transportation needs were limited to simply shipping products to individual consumers and business customers. After the change, Dell’s transportation needs became more complicated because the size of shipments became much larger. Also, it is likely that the number of shipments declined. 14.7f Building Skills for Career Success 1. Social Media Exercise 1. For what types of retailers are these games most likely to be effective? These games would most likely be effective for retailers that carry personal items, like clothing, jewelry, shoes, or handbags. It could potentially be effective for home furnishings or decorating. This means that traditional specialty stores and department stores would likely benefit the most. 2. While the game mentioned above is aimed at women 20–25, what other age and gender segments would be most likely to participate in online games? Online games are popular with virtually every age segment of the population. However, the gender and age segments would vary, depending on the nature of the game itself. For example, Seventeen magazine has online Prom Match and Boy Toy games, which would appeal to teenage girls. Disney has Mickey & Friends Darts, Fix It Felix, Jr., and other games intended for children. 2. Journaling for Success 1. Thinking about brick-and-mortar retail stores, in which store have you had your most enjoyable shopping experience? Describe this retail store. Answers will vary, but it is likely that students will discuss the entire shopping experience, not just the item(s) purchased. This will include the atmosphere of the store, the “fit” with the shopper’s personality, location, service, and other amenities. 2. Discuss this shopping experience and why it was such a great shopping experience. A great shopping experience typically involves: 1. Easy Navigation – The store or website was user-friendly, making it simple to find products. 2. Personalized Service – Staff or online recommendations were tailored to my needs or preferences. 3. Efficient Checkout – The purchase process was fast and seamless, with multiple payment options. 4. Quality Products – The items were high-quality, as expected, and met my needs. 5. Positive Atmosphere – Friendly staff, a pleasant environment, or a smooth online interface enhanced my overall experience. This combination makes the experience enjoyable and likely to encourage repeat visits. 3. At what brick-and-mortar store did you have your worst experience? Describe this store. It is likely that unfortunate experiences will focus on service-related issues. 1. Disorganized Layout – Difficult to find products, cluttered aisles. 2. Poor Customer Service – Unhelpful or inattentive staff. 3. Limited Stock – Items out of stock or poorly stocked. 4. Long Wait Times – Slow checkout or long lines. 5. Unpleasant Environment – Dirty, poorly lit, or uncomfortable ambiance. These factors can lead to frustration and a desire to avoid returning. 4. Discuss this worst shopping experience and be sure to mention the reasons why this shopping experience was the worst one for you. This is a very individual answer and will vary from student to student. One of my worst shopping experiences occurred at a local department store, and it was a frustrating mix of factors: 1. Disorganization – The store layout was chaotic. Items were scattered across different aisles, and it took a long time to find what I was looking for, even though the store wasn’t particularly crowded. 2. Unhelpful Staff – When I finally located a staff member to ask for assistance, they seemed disinterested and didn’t offer helpful advice, leaving me to search for answers on my own. 3. Poor Stock Availability – The product I wanted was out of stock, and when I asked about availability, the staff couldn’t provide an estimated restock date. 4. Long Checkout Lines – When I finally decided to make a purchase, the checkout process was painfully slow. There was only one register open, and the line was long, making me question whether it was worth the wait. 5. Unpleasant Environment – The store felt outdated, with dim lighting and an unclean atmosphere, which made me uncomfortable. This combination of disorganization, poor service, and lack of product availability made the experience feel like a waste of time, and I left frustrated with little desire to return. 3. Developing Critical-Thinking Skills According to the wheel of retailing hypothesis mentioned in this assignment, retailers begin as low-margin, low-priced, and low-status operations and then upgrade as they begin to become successful. For example, a small bookseller in Atlanta, Georgia, is successfully competing with the super bookstores. Barbara Babbit Kaufman is president of the small bookstore chain called “Chapter 11, the Discount Bookstore Inc.” Her chain has grown from one to eleven stores over the past seven years. Chapter 11 competes with price cutting and brash advertising. Its slogan is “Prices So Low, You’d Think We Were Going Bankrupt.” Obviously, the expansion of this store belies its slogan. 4. Building Team Skills Answers will vary depending on the retailer chosen. The major types of in-store retailers include department stores, discount stores, catalog and warehouse clubs, traditional specialty stores, off-price retailers, and category killers. Surveys should be similar to the example given. 5. Researching Different Careers Answers will vary depending on the company and position chosen. You might want to assign the companies and positions to the students. In this way, companies chosen will be marketers. 14.8 QUIZZES I AND II Quiz I True-False Questions Select the correct answer. 1. T F When buyers, sellers, marketing intermediaries, and facilitating agencies work together, the cooperative relationship results in compromise and adjustments that meet customer needs. 2. T F Under a contractual vertical marketing system, the largest channel member is contracted to manage the production and distribution within the channel. 3. T F Producers assist wholesalers by furnishing them with information regarding the wholesalers’ competition and consumer buying patterns. 4. T F As competition among discount stores has increased, some discounters have assumed the characteristics of higher-priced department stores. 5. T F A traditional channel of distribution is producers selling directly to consumers. Multiple-Choice Questions Circle the letter before the most accurate answer. 6. The use of only a single retail outlet in each geographic area for distribution purposes is called __________ distribution. a. exclusive b. intentional c. selective d. patterned e. intensive 7. In a(n) __________ VMS, ownership is the vehicle by which production and distribution are joined. a. corporate b. administered c. cooperative d. contractual e. agency 8. All of the following are services that wholesalers offer to manufacturers except a. providing an instant sales force. b. assuming credit risks. c. furnishing market information. d. reducing inventory costs. e. providing loans. 9. Which of the following is not a classification of merchant wholesaler? a. Full-service b. General merchandise c. General-service d. Limited-line e. Specialty-line 10. The cost of lost sales due to insufficient inventory is called __________ cost. a. stock-out b. order processing c. holding d. inventory reduction e. direct Quiz II True-False Questions Select the correct answer. 1. T F The most direct channel of distribution is from a producer to a retailer to the consumer. 2. T F Producers utilizing intensive distribution place many requirements, including inventory levels and service quality, on the seller. 3. T F A sales agent that specializes in selling a particular commodity is called a jobber. 4. T F The largest type of shopping center is the community shopping center. 5. T F At times, marketers choose higher-cost modes of transportation due to the benefits they provide. Multiple-Choice Questions Circle the letter before the most accurate answer. 6. A middleman that takes title to products and then sells the products to other firms is commonly referred to as a(n) a. retailer. b. agent. c. producer. d. wholesaler. e. commissioner. 7. __________ management is a long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers. a. Vertical-chain b. Horizontal-chain c. Agency d. Supply-chain e. Integrated-channel 8. Retailers can be classified by ownership in two categories: a. independent and franchise. b. department stores and specialty stores. c. proprietorships and corporations. d. independent and chain. e. private and chain. 9. Culpepper Plaza contains a small grocery store, a couple of fast-food restaurants, a drugstore, and a gas station. This is an example of a(n) __________ shopping center. a. neighborhood b. regional c. community d. area e. urban 10. Carriers are important in the ____________ of products to customers. a. manufacturing b. transportation c. designing d. warehousing e. direct marketing 14.9 ANSWER KEY FOR QUIZZES I AND II Quiz I True-False Multiple-Choice 1. T 6. a 2. F 7. a 3. F 8. e 4. T 9. c 5. F 10. a Quiz II True-False Multiple-Choice 1. F 6. d 2. F 7. d 3. F 8. d 4. F 9. a 5. T 10. b 14.10 CLASSROOM EXERCISES 14.10a Homework Activities • Have students bring in an article or advertisement that shows an example of a kind of retailer (in-store or nonstore) discussed in the chapter. • Researching and Following a Company Throughout the Course (continuing assignment). Have students describe the channel(s) of distribution for the company’s products. Where are the company’s products sold? • Research Project. Students can be asked to research the supply chain for a particular product, either domestic or overseas. 14.10b Classroom Activities • Lots, Less, and Least Coverage Exercise. Place students into groups and ask them to indicate the level of market coverage—intensive, selective, or exclusive—that is best suited for the products listed on the handout. Ask them to explain why that level is appropriate. Instructor notes are provided for discussion. • What Is It That You Sell Again? Exercise. Students can do this exercise individually or in groups. Ask them to identify what types of products are sold by each of the retail businesses listed on the handout. The goal of this exercise is to help students understand the importance of having store names that help customers easily identify the type of store. Some are effective; others are not. Answers are provided. • Lifestyle Shopping Mall Exercise. This is a team project requiring approximately 20 minutes. After reviewing examples of lifestyle malls and discussing the demographics and lifestyle of the area close to campus, students are asked to identify the key elements of such a mall located close to or easily accessible from campus. • And the Best Way to Ship Is … Exercise. Place students into groups and ask them to analyze the listed products according to the transportation criteria of cost, speed, dependability, load flexibility, accessibility, and frequency outlined in Table 14.2. Based on that analysis, they are to select a mode of transportation. They should be prepared to defend their ratings and recommended mode of transportation in discussion. • Marketing Channels Exercise. This is a group project requiring approximately 15 minutes. Divide the class into groups of four to five students each and tell them that they are the marketing team for a company that markets certified organic meats and specialty meats such as wild game, ostrich, bison, and alligator. These products are sold to chefs and restaurants, but they are also sold to consumers through specialty food shops. The CEO has asked the team to investigate whether the company should begin selling its products online to end consumers. Instruct students to develop a list of pros and cons along with a recommendation. Each group should appoint a spokesperson and report its findings to the class. • Retail Outlet Exercise. This is a group project requiring approximately 15 minutes. Divide the class into groups of four to five students each. Tell them that they have been retained as marketing consultants for a local banquet facility that is exploring the possibility of opening a retail outlet that would sell a limited selection of gourmet take-out meals for consumers. Consumers would be able to choose from a variety of meats, side dishes, and desserts. The banquet facility believes this would provide consumers with a healthier, more elegant alternative to bringing fast-food home for dinner and would allow the facility to capitalize on what it already does well—serve excellent food. It would like your group to determine where the best place would be to locate this retail outlet—a lifestyle shopping center, a neighborhood shopping center, a community shopping center, or a free-standing facility. Instruct students to develop a list of pros and cons along with a recommendation for the banquet facility. Each group should appoint a spokesperson and report its findings to the class. 14.10c Exercise Handouts Follow on Next Pages Lots, Less, and Least Coverage In your groups, indicate the level of market coverage—intensive, selective, or exclusive—that is best suited for the following products, and explain why that level is appropriate. • Personal computer • Deodorant • Collector basketball autographed by Michael Jordan • Windows computer software (latest version) • Wrigley’s chewing gum • Pair of jeans Lots, Less, and Least Coverage Answers • Personal computer Selective—Computers are shopping goods that potential buyers compare on style and on price. Most people will want to look at several purchasing options. • Deodorant Intensive—Deodorant is a frequently purchased, low-price item with many potential brand substitutes. • Collector basketball autographed by Michael Jordan Exclusive—This is a specialty item that a collector would be willing to make a lot of effort to purchase. • Windows computer software (latest version) Selective—While Windows does not have acceptable substitutes, it is a fairly expensive, infrequently purchased item that people will want to compare on price. • Wrigley’s chewing gum Intensive—Gum is an inexpensive, frequently purchased item with many substitutes. • Pair of jeans Selective, possibly exclusive—Most people will want to compare jeans on style and price; therefore, selective distribution is most appropriate. For some high-end designer brands, exclusive may be best. What Is It That You Sell Again? In your groups, identify what types of products are sold by each of the following retail businesses. The goal of this exercise is to help you understand the importance of having store names that help customers easily identify the type of store. Some of these are effective; others are not. Your instructor will give you the answers when you are done. • The Shape of Things • The Chicken Oil Company • Wings ‘n’ Things • The Paper Bear • Prioriteas • Specially for You • The Waist Basket • Bless Your Heart • Clean and Lean • Bombay Bicycle Club • The Lollipop • Feather Your Nest • Rolling Thunder • Creations • Me Too Wee Two What Is It That You Sell Again? Answers • The Shape of Things (hairstyling salon) • The Chicken Oil Company (restaurant) • Wings ‘n’ Things (restaurant) • The Paper Bear (gift/novelty item shop) • Prioriteas (upscale foods/beverages) • Specially for You (florist/gift shop) • The Waist Basket (fitness center) • Bless Your Heart (health food restaurant) • Clean and Lean (laundromat/fitness center) • Bombay Bicycle Club (restaurant) • The Lollipop (children’s clothing store) • Feather Your Nest (linens store) • Rolling Thunder (skating rink) • Creations (silk-screened T-shirts) • Me Too Wee Two (adult women and children’s clothing) LIFESTYLE SHOPPING MALL Lifestyle shopping malls are architecturally attractive open air malls usually located in affluent areas. They combine upscale chain stores with leisure areas, activities, and restaurants. In the next 20 minutes, you and your team will list the components of a lifestyle shopping mall located within easy access of your campus. Consider the demographics and lifestyle activities of students, faculty, and staff, as well as the residents of the area surrounding the college. Once that is done, you will be able to list stores, restaurants, and leisure activities as well as describe the physical layout of the mall. Lifestyle Shopping Mall Instructor Notes Students will enjoy the creativity required for this group exercise. After placing the students in groups, you may wish to first show examples of such malls by using the links below. The types of establishments in the mall will vary depending on whether your campus is urban, suburban, or rural, as well as many other factors. You can also choose to have the students research these factors, or if you have them readily available, provide them on an overhead or PowerPoint. Twenty minutes should be sufficient. This exercise is also easily converted to a homework or presentation assignment as well. http://www.shopfiggardenvillage.com/ http://www.dulles28centre.com/ http://www.thesummitonline.com/ http://money.cnn.com/2005/01/11/news/fortune500/retail_lifestylecenter/ And the Best Way to Ship Is … In your groups, analyze the following products on their need for strong performance on the transportation criteria of cost, speed, dependability, load flexibility, accessibility, and frequency outlined in Table 14.2. Based on your analysis, select a mode of transportation. The first one is done for you. Be prepared to defend your answer. Use the following rating scale: Very important = 4 Important = 3 Somewhat important = 2 Somewhat unimportant = 1 Not important at all = 0 Product Cost Speed Dependability Load Flexibility Accessibility Frequency Recommendation Flu vaccine 0 4 4 2 2 2 Air and truck Soybeans Farm machinery Shampoo Pumpkins And the Best Way to Ship Is … Instructor Notes While these numbers are open to discussion, the students should be prepared to defend their answers as to both ratings and final recommendations. This should lead to some lively discussion, as there are tradeoffs and there is rarely a perfect answer. Product Cost Speed Dependability Load Flexibility Accessibility Frequency Recommendation Flu vaccine 0 4 4 2 2 2 Air and truck Soybeans 1 2 3 4 2 1 Railroad Farm machinery 4 0 3 4 1 1 Railroad Shampoo 1 2 3 3 3 3 Rail or truck Pumpkins 2 4 4 3 4 1 Truck Chapter 14 Video Case: Taza Cultivates Channel Relationships with Chocolate RUNNING TIME: 7:00 Chapter 14 discusses the processes of wholesaling, retailing, and physical distribution. A marketing channel is a sequence of marketing organizations that directs a product from producer to user. Channels and intermediaries are chosen to implement a given level of market coverage. Supply-chain management is a long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage. A vertical marketing system is a centrally managed system where two or more channel members from different levels combine under one management. Wholesalers are intermediaries that purchase from producers or other intermediaries and sell to industrial users, retailers, or other wholesalers. Merchant wholesalers buy and then sell products. Retailers are intermediaries that buy from producers or wholesalers and sell to consumers. There are three major types of shopping centers: neighborhood, community, and regional. Physical distribution consists of activities designed to move products from producers to ultimate users. Concepts Illustrated in the Video • Brand Awareness • Competition • Distribution • Manufacturing • Price Channels • Product Sampling • Retail Channels • Sales • Shipping • Wholesale VIDEO CASE SUMMARY Taza Chocolate, a small Massachusetts-based manufacturer of stone-ground organic chocolate made in the classic Mexican tradition, sells chocolate bars, baking squares, chocolate-covered nuts, and other specialty chocolate items. The company sells most of its products to retailers, wholesalers, and distributors throughout the United States, as well as through the company’s Web site. Taza has just begun shipping its chocolate products internationally to Canada and a handful of European countries. Taza believes that dealing directly with its suppliers is the best business model, not only because it allows the company to meet its social responsibility goals, but also because it ensures quality. Because Taza is a premium brand, the company has to charge more than its competitors. Distributors buy in the largest quantities, but wholesale has always been the company’s largest area of profitability. Taza’s distribution channel plays an important role in delivering products that are fresh. Shipping chocolate in the summer, for instance, can be a problem. Having a west-coast distributor means that the store can just order from that distributor, pay about the same price that it would pay if it ordered directly from Taza, and get the product probably the next day, with a much lower shipping cost. Critical-Thinking Questions Using information from the case and the video, answer the following questions: 1. Which distribution channels does Taza use? Taza markets and sells its organic, Mexican-style chocolate through a variety of distribution channels. The company sells to distributors, wholesalers, retailers, and individual consumers. A large volume of product is sold directly to distributors, which purchase chocolate by the pallet load. Wholesalers, which are the “bread and butter” for the company in terms of sales, purchase chocolate from the company by the case. In many U.S. markets, individual retailers purchase chocolate from Taza in varying quantities. Finally, through the company’s Web site and with the opening of its first store, Taza also sells directly to consumers. 2. In what ways does Taza benefit from selling directly to consumers? What are the potential problems that Taza may experience by selling directly to consumers? When selling directly to consumers, Taza benefits by establishing a direct relationship with the customer, which creates repeat-business opportunities. In addition, Taza benefits by charging the retail price, which is anywhere from $4.50 to $6.50 per bar of chocolate. However, a potential problem of selling directly to consumers involves distribution and shipping. When Taza ships chocolate to customers a great distance away, it must charge a high shipping rate to ensure that the chocolate arrives in the freshest condition possible. Because of these types of logistical concerns, the company has seen the greatest amount of success from wholesale business. 3. If Taza wanted to grow its sales by broadening physical distribution of its products, do you think it should work more closely with its wholesalers or with its distributors? Why? Many would argue that broadening physical distribution through wholesalers makes the most sense for Taza because this is where the company has had the most success. Wholesalers usually are more likely to accept the prices and terms set by the company, whereas distributers are more likely to pressure the company on price. Others may argue that focusing on distribution makes the most sense from a strategic perspective in order to grow the company. If Taza were able to establish more distributors across the globe, it could then make its product more available geographically at a relatively lower shipping price. Chapter 14 Lecture Launcher: Potatoes, Onions, Apples … VIDEO SUMMARY Rick and Caleb determine that they may need to change their distribution strategy. “I’m noticing a lot of waste,” Rick tells Caleb. “You’re getting complaints about damage and bad produce.” Perhaps a dual distribution channel might be the solution Caleb suggests: one for the hardier vegetables and one for items more easily damaged, such as herbs. He and Rick also come up with a just-in-time inventory plan that will allow chefs in the city to purchase Urban Farmz’s herbs the same day they plan to use them. CHAPTER 15 Developing Integrated Marketing Communications 15.7 TEXTBOOK ANSWER KEYS 15.7a Return to Inside Business Old Spice 1. What selling points seem to be in the advertising platform for Old Spice’s commercials, and how do these points relate to the target audience’s needs or interests? One selling point is fragrance. “The man your man could smell like” relates to Old Spice’s fragrance, which women would find enjoyable. Another selling point is Old Spice’s power as a deodorant, filling the need of helping men stay dry. A third selling point is that Old Spice can help make a man more attractive to a woman. Students may suggest other selling points they’ve observed in the commercials or recognize from the case. 2. When Old Spice wins advertising awards and people talk about its unusual campaigns, how does that help the rest of the brand’s promotional efforts? The more public attention a brand attracts, the more word of mouth it generates. Once people hear about Old Spice’s unusual campaigns, many will want to see it for themselves and then spread the word to their friends. This increases the possibility that consumers will be receptive to other Old Spice promotions they encounter, such as point-of-purchase displays, social media messages, or samples. It also helps the brand’s positioning efforts by reinforcing Old Spice’s values. Students may be able to add other ideas for this answer, as well. 15.7b Review Questions 1. What is integrated marketing communications, and why is it becoming increasingly accepted? Integrated marketing communications is the coordination of promotion efforts to ensure the maximum informational and persuasive impact on customers. It tries to send a consistent message to all customers and provides a company with a way to coordinate and manage its promotional efforts to ensure that customers receive a consistent message. It has been increasingly accepted for several reasons. Mass-media advertising is used less today because of its high costs and less predictable audience sizes. Now marketers are able to take advantage of more precise targeting promotional tools. Database marketing is also allowing marketers to be more precise in targeting individual customers. Today, a number of promotion-related companies provide one-stop shopping to the client seeking advertising, sales promotion, and public relations, thus reducing coordination problems. Because the overall cost of marketing communications has risen significantly, upper management demands systematic evaluations of communication efforts to ensure that promotional resources are being used effectively. 2. Identify and describe the major ingredients of a promotion mix. A promotion mix is the particular combination of promotion methods a firm uses to reach a target market. The major promotion mix ingredients include advertising, personal selling, sales promotion, and public relations. Advertising is a paid, nonpersonal message communicated to a select audience through mass media. Personal selling is a personal communication aimed at informing customers and persuading them to buy a firm’s products. Sales promotion is the use of activities or materials as direct inducements to customers or salespersons. Public relations is a broad set of communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external. 3. What is the major role of promotion? The major role of promotion is to facilitate exchanges directly or indirectly by informing individuals, groups, or organizations and influencing them to accept the firm’s products. 4. How are selective-demand, institutional, and primary-demand advertising different from one another? Give an example of each. Selective-demand advertising attempts to sell a particular product, such as Bubble Yum. Institutional advertising is advertising to enhance a firm’s image or reputation, as in an ad for AT&T. The purpose of primary-demand advertising is to increase the demand for all brands of a good or service, as in the ads run by the American Dairy Association that encourage con-sumers to “drink more milk.” 5. List the four major print media, and give an advantage and a disadvantage of each. The four major print media are (1) newspapers, (2) magazines, (3) direct mail, and (4) out-of-home advertising. Their advantages and disadvantages are as follows: (1) the cost of advertising in newspapers is reasonable, but the ads themselves have a short life span; (2) ads in magazines have a longer life span, but they are high in cost and lack timeliness; (3) direct mail’s effectiveness can be measured easily, but it depends on appropriate and current mailing lists; and (4) out-of-home advertising allows a marketer to focus on a particular geographic area and is fairly inexpensive, but the message must be limited because the audience is mobile. 6. Which types of firms use radio, television, and the Internet? Radio advertising is used most often by local retailers who want to reach a specific geographic market for their products. Television advertising is used primarily by larger firms whose objective is to reach a national or regional market. Internet advertising is used by companies who want to be more precise in targeting specific customers. 7. Outline the main steps involved in developing an advertising campaign. The major steps in developing an advertising campaign are (1) identify and analyze the advertising target; (2) define the advertising objectives; (3) create the advertising platform; (4) determine the advertising appropriation; (5) develop the media plan; (6) create the advertising message; (7) execute the advertising campaign; and (8) evaluate the effectiveness of the advertising. 8. Why would a firm with its own advertising department use an ad agency? A firm might use an ad agency to bring a fresh approach to an advertising promotion or to offer help to its own department on a large promotion. 9. Identify and give examples of the three major types of salespersons. An order-getter is responsible for creative selling—selling the firm’s products to new customers and increasing sales to current customers. An example of an order-getter is a salesperson who sells office equipment to a new customer. An order-taker handles repeat sales in ways that maintain positive relationships with customers. An example is a salesperson who receives and processes a telephone order from a repeat customer. Support personnel consist of missionary salespersons, trade salespersons, and technical salespersons. An example of a missionary salesperson is a pharmaceutical salesperson who promotes new prescription drugs to doctors, who in turn prescribe the drugs to patients. 10. Explain how each step in the personal-selling process leads to the next step. In the personal-selling process, the salesperson first chooses a prospect most likely to buy the product. He or she then gathers background information on the prospect to make a favorable impression of the product. Next comes the actual sales presentation, which has been carefully prepared. Then the salesperson answers any questions about or counters objections to the sales presentation. Next, the salesperson attempts to close the sale by using a positive approach and assuming success. Finally, once the sale is made, the salesperson follows up on each order to ensure customer satisfaction. 11. What are the major tasks involved in managing a sales force? Sales managers have responsibilities in a number of areas. They must set objectives. They must adjust the size of the sales force according to changes in the firm’s marketing plan and changes in the marketing environment. They must attract and hire effective salespersons. They must develop a training program and decide where, when, how, and for whom the training will be conducted. They must formulate a fair and adequate compensation plan to retain qualified employees. They must motivate salespersons. They must define sales territories and determine the scheduling and routing of the sales force. Finally, they must evaluate the operation as a whole through sales reports, communications from customers, and invoices. 12. What are the major differences between consumer and trade sales promotion methods? Give examples of each. Most sales promotion methods can be classified as promotion techniques for either consumer sales or trade sales. A consumer sales promotion method attracts consumers to particular retail stores and motivates them to purchase specific new or established products. A trade sales promotion method encourages wholesalers and retailers to stock and actively promote a manufacturer’s products. Examples of consumer sales promotion methods include rebates, coupons, samples, frequent-user incentives, and point-of-purchase displays. Trade sales promotion methods include trade shows, buying allowances, and cooperative advertising. 13. What is cooperative advertising? What sorts of firms use it? Cooperative advertising is advertising whose cost is shared by a producer and one or more retailers. Small local firms are most likely to use this type of advertising. 14. What is the difference between publicity and public relations? What is the purpose of each? Publicity is information about a company, its employees, or its products that is published or broadcast in the mass media. Its purpose is to generate special interest in the company and to keep it in the public eye. It is not paid for by the company. Public relations consists of all activities aimed at creating and maintaining a favorable public image. Its purpose is to create new ways to promote a product or company, and it is paid for by the company that hires the public-relations people. 15. Why is promotion particularly effective in positioning a product? In stabilizing or increasing sales? The sale of a product depends largely on its competition. The stronger the competition, the more difficult it is to maintain or increase sales. For this reason, many firms go to great lengths to position their products in the marketplace. Positioning is the development of an image for a product relative to competing products. For example, Seven-Up has been heavily promoted as the “Uncola” to position it away from Coca-Cola and Pepsi Cola. Promotion can also be used to stabilize sales during slack periods, such as the “off season.” By stabilizing sales in this way, a firm can use its production facilities more efficiently and reduce both capital costs and inventory costs. 16. What factors determine the specific promotion mix that a firm should use? The selection of promotion-mix ingredients and the degree to which they are used depend on the organization’s resources and objectives, the nature of the target market, the characteristics of the product, and the feasibility of various promotion methods. 17. Is promotion deceptive? What is your evidence that it is or is not deceptive? Although no longer widespread, some deceptive promotion practices still occur. For example, some manufacturers make their rules for submitting rebates exceedingly difficult in hopes that consumers won’t qualify for payment. Some retailers print coupons that offer free food or a drink in bold type but try to hide the fact in smaller type that to qualify consumers have to purchase a full-priced meal. As well, some retailers still engage in “bait and switch” promotions wherein they advertise a deep discount on a product and then try to upgrade the buyer to a higher-priced product at full price. 15.7c Discussion Questions 1. Discuss the pros and cons of comparative advertising from the viewpoint of (a) the advertiser, (b) the advertiser’s competitors, and (c) the target market. Comparative advertising is useful because it shows the firm’s product in a favorable light compared to the product of a competitor. It is useful to the advertiser’s competitor because it provides exposure for the competitor’s products. It is useful in target markets because it gives people an idea of how products compare. But it can also backfire by sending the consumer over to the opposition. In addition, the target market may find it difficult to maintain a clear picture of the relative merits of each product. 2. Which kinds of advertising—in which media—influence you most? Why? Students’ answers will vary depending on their own views regarding what influences them. The types of advertising that influence me most are: 1. Social Media Ads – Especially on platforms like Instagram and YouTube. These ads are visually engaging, often tailored to my interests based on previous interactions or searches, making them feel more relevant and personal. 2. Influencer Marketing – When a trusted influencer or content creator I follow promotes a product, it feels more authentic and relatable. I’m more likely to trust their recommendation because I feel they have a genuine connection to their audience. 3. Online Video Ads – Short, creative videos on platforms like YouTube or TikTok can capture my attention quickly, especially if they tell a story or show the product in action. The entertainment factor helps make the message stick. 4. Email Marketing – If it’s well-targeted and offers a personalized deal or exclusive content, I’m more inclined to open and engage with these emails. I tend to be influenced by ads that feel personalized, engaging, and come from sources I trust, making me more open to trying out the product or service. 3. Which kinds of retail outlets or products require mainly order-taking by salespeople? Chain stores and products whose inventories turn over rapidly require mainly order-taking by salespeople. 4. A number of companies have shifted a portion of their promotion dollars from advertising to trade sales promotion methods. Why? Advertising audiences are much more fragmented today compared to 10 or 20 years ago. Over the last decade, consumers have been more responsive to coupons. Retailers have placed more pressure on producers to provide more generous trade sales promotion efforts. 5. Why would a producer offer refunds or cents-off coupons rather than simply lowering the price of its products? By lowering the product’s price, a producer may make only a one-time sale while the price is low, and then only on one item at a time. In contrast, refunds or cents-off offers give the consumer an extended period of time and allow a store to be flexible. 6. How can public-relations efforts aimed at the general public help an organization? Public-relations efforts directed toward the general public help create and maintain a favorable image of the organization. Because the public’s attitudes toward an organization are likely to affect sales of its products, it is very important for firms to maintain positive public perceptions. 7. Why do firms use event sponsorship? Sponsoring special events is an effective way for companies to increase brand and company awareness with relatively minimal investment. Although companies pay the initial costs of sponsoring the event, the event itself can provide companies with significant amounts of free media coverage. 8. What kind of promotion mix might be used to extend the life of a product that has entered the declining stage of its product life-cycle? To revitalize a product that has entered the declining stage of its life-cycle, a promotion mix might consist of a combination of personal selling, more media coverage, and use of money-off coupons to stimulate sales. 15.7d Comments on Video Case 15.1 Suggestions for using this video case are provided in the Pride/Hughes/Kapoor Video Guide. L.L.Bean Employs a Variety of Promotion Methods to Communicate with Customers 1. What are the ingredients of L.L.Bean’s promotion mix? The company relies on advertising (print, television, direct mail, and online), personal selling (on the phone and in-store), sales promotion (online and in its target markets), and public relations (through its environmental and charitable efforts). 2. L.L.Bean is reaching into “alternative” promotions, including outfitting Weather Channel meteorologists around the United States and emblazoning its name on the tarp used by the Red Sox baseball team to protect the field during rain delays. What other kinds of promotional activities do you think would suit the company’s outdoorsy image? Some of the company’s current social responsibility efforts (and limitations) are listed on its Web site at http://www.llbean.com/customerService/aboutLLBean/charitable_giving.html? nav=ln#conservation. Student might have some very creative ideas, including promotions and giveaways connected with major sports events; joint promotions with producers of related products like bottled water and sports drinks; sponsorship of sports teams, venues, and events; and environmental initiatives of all kinds including, for instance, volunteer efforts at national and local parks. Ask them to justify their suggestions by explaining what L.L.Bean’s specific objectives would be and how it might measure the promotion’s effectiveness. 3. Do you think L.L.Bean’s Web site will ever entirely take the place of its mail-order catalog? Why or why not? Although e-commerce is definitely on the rise and L.L.Bean’s Internet sales have surpassed its phone and catalog orders, it’s unlikely the Web site will ever replace the catalog since they not only serve different purposes, according to company executives, but they also appeal to different types of customers. It seems more probable that the two media will continue to support one another, since the Web site can showcase every product the company offers while the catalog, into which the company still puts enormous resources, can offer a more portable browsing experience. The catalog’s long popularity also makes it unlikely that L.L.Bean would ever abandon it as a promotional tool. 15.7e Comments on Case 15.2 Rebuilding Trust at Toyota 1. In what ways is Toyota using promotional efforts to rebuild customer trust? Toyota is using advertisements to admit its own culpability in the crisis and assure consumers that it is dealing with the issue, all in an attempt to regain consumer trust. The company is also taking out full page ads in major newspapers and producing feel-good television spots featuring dealers, mechanics, and owners. By creating an emotional connection between Toyota and consumers, Toyota’s promotional efforts are trying to restore its favorable image. 2. Shortly after the recalls, Toyota cancelled its advertising campaign regarding depend-ability, safety, and reliability. Was this action necessary? Why or why not? Toyota was getting much public attention for safety recalls related to sudden acceleration. In the public’s eye, Toyota automobiles were considered unsafe. Even non-recalled vehicles were subject to scrutiny. For Toyota to maintain claims of its cars’ dependability, safety, and reliability would appear to be misleading. It would also seem that Toyota was trying to push the issue “under the rug” in order to avoid taking responsibility. This would have damaged Toyota’s reputation even more. 3. Toyota received a considerable amount of negative publicity during and shortly after the recalls. What could Toyota have done to reduce the amount of negative coverage? Toyota—or any other company—does not have control over what (and how much) the media reports. However, its public relations department can take steps to diffuse the bad press. Some of the ways a company can diffuse negative press are: • Don’t ignore the negative publicity. Confront the negative press directly and respond in a respectful, positive tone. This approach shows that the company is aware of and acknowledges the problem. • The company should tell customers exactly what they are doing about the problem. This would help give consumers a renewed sense of confidence in the company. • Going forward, Toyota should continue to communicate its dedication to safety and keep lines of communication open with all stakeholders. It must also effectively implement the new safety procedures that it has promised for its vehicles. Offering continued incentives to consumers such as no-interest loans would also encourage consumers to purchase from the company. Above all, Toyota must return to the Toyota Way—emphasizing continuous process, reducing waste, and displaying a commitment to safe, quality vehicles. 15.7f Building Skills for Career Success 1. Social Media Exercise 1. What factors do you think made the initial Old Spice marketing campaign so successful? Old Spice did a tremendous job of resonating with its target audiences. Old Spice has historically targeted male consumers, but company research showed that females have significant input in purchase decisions, and females are the typical purchasers of body wash. Old Spice decided to target both men and women in this campaign. By using the Internet and social media to reach consumers, Old Spice was also targeting a younger segment of the population (those who are most likely to buy body wash). 2. Do you feel the way Wieden+Kennedy used comments from consumers and celebrities to create the “Response Campaign” was a smart and effective way to continue the Old Spice campaign? Why or why not? The response videos were extremely effective. Consumers were seeking out the Old Spice commercials in social media channels, so Old Spice took the approach of a viral engagement campaign. It invited consumers to openly “converse” and connect with the brand. 3. After the initial Old Spice marketing campaign, the advertising agency Wieden+Kenndy created a new generation of advertisements for Old Spice. You can check out new advertisements at www.wk.com. Once at the site, click on “Clients.” Then click on Old Spice to view current advertisements for this product. Compare the original advertisements with the new advertisements. Which advertisements do the best job of promoting the Old Spice product? Justify your opinion. Students’ answers will vary, depending on their personal opinion and the current advertisements being displayed on the Web site. 2. Journaling for Success 1. During the last year, you have been exposed to a number of television advertisements. Identify and describe what you believe to be the best TV commercial that you have experienced over the last year. 2. Why did you feel that this ad is the very best? 3. Describe the content of this advertisement in as much detail as possible, and explain what you can recall about this television advertisement. Students, like most nonprofessionals, are likely to first have an emotional reaction to advertising. For that reason, they will probably discuss how the ad looked and made them feel. Humor is attention-getting and attractive, as is music. Some of the more analytical students will talk about product benefits and how the ad communicated with its target audience. 3. Developing Critical-Thinking Skills Answers will vary depending on the product or service chosen. This exercise will help students understand how a salesperson handles specific points about the competition’s product or service. The answer about the competition the salesperson gives might be the one that closes the sale. 4. Building Team Skills Answers will vary depending on the medium chosen. Cost per thousand, or CPM (where M is the Roman numeral for 1,000), is a useful statistic for comparing the cost of advertising of vehicles in the same medium (local TV shows, magazines, local newspapers, and local radio stations). For example, if a full-page, four-color ad placed in Sports Illustrated costs the advertiser about $140,000 and reaches approximately 23 million readers (23,000 expressed in thousands), CPM = $140,000/23,000 = $6.09. If a full-page, four-color ad placed in Sport costs about $30,000 and reaches approximately 4 million readers, CPM = $30,000/4,000 = $7.50. Thus, Sport is more expensive than Sports Illustrated. Besides costs, other important factors in choosing among different vehicles within the same medium would include how closely the vehicle’s readers/viewers match the brand’s target audience and the fit between the image of the vehicle and the brand’s desired image. 5. Researching Different Careers Answers will vary depending on the occupation chosen, the library resources, and the public company information available. 15.8 QUIZZES I AND II Quiz I True-False Questions Select the correct answer. 1. T F The term integrated marketing communications can be described as a combination of promotion methods a firm uses to reach a target market. 2. T F Print media account for about 25 percent of all advertising expenditures. 3. T F The most-expensive promotional method is personal selling. 4. T F A feature article is a type of publicity that is generally one typed page of about 300 words. 5. T F Firms that sell multiple products tend to use one promotion mix to minimize costs. Multiple-Choice Questions Circle the letter before the most accurate answer. 6. Communication that is intended to inform, persuade, or remind an organization’s target markets about the organization and its products is called a. publicity. b. advertising. c. public relations. d. personal selling. e. promotion. 7. The four major ingredients in the promotion mix are advertising, personal selling, public relations, and a. research development. b. nonpersonal selling. c. sales presentation. d. corporate philanthropy. e. sales promotion. 8. After the media planner determines which form(s) of media to use to reach the target market (e.g., television ads, radio ads, magazine ads, etc.), the next step is to a. execute a campaign. b. determine how much can be spent on the campaign. c. create the advertising messages. d. evaluate the decisions made with regard to media type and media content. e. create the advertising platform. 9. The most expensive technique of sales promotion is a. refunding. b. sampling. c. coupons. d. premiums. e. point-of-purchase displays. 10. When planning a promotional campaign, marketers must decide not only to what extent each promotional method will be used in the promotion mix, but also a. what effect each method will have on sales of the product. b. what the role of promotion will be in the overall marketing mix. c. which method or methods are better for reaching the target market. d. how much to spend on each method. e. whether the company needs to spend any money at all on promotional activities. Quiz II True-False Questions Select the correct answer. 1. T F Any nonpersonal promotional message that is paid for by an identified sponsor and directed to a large audience is called publicity. 2. T F Institutional advertising is by far the most common type of advertising and receives the largest share of advertising expenditures. 3. T F An independent firm that plans, produces, and places advertising for its clients is called a public-relations firm. 4. T F A news release is a type of publicity that is generally one typed page of about 300 words. 5. T F In general, industrial products require a considerable amount of personal selling. Multiple-Choice Questions Circle the letter before the most accurate answer. 6. Bad publicity due to the Alaskan oil spill tarnished Exxon Corporation’s corporate image. What type of advertising was used to create a favorable image? a. Primary-demand b. Selective-demand c. Comparative d. Immediate-response e. Institutional 7. The market that a store attempts to reach by using newspaper advertising is a(n) a. primary-demand audience. b. national market. c. local market. d. interested market. e. zone market. 8. The advertising medium that receives the largest share of advertising dollars is a. television. b. magazines. c. radio. d. direct mail. e. newspapers. 9. Salespersons can be identified as one or all of the following: order-getters, order-takers, and a. technical salespersons. b. prospect personnel. c. trade salespersons. d. support personnel. e. missionary salespersons. 10. General Mills offered consumers two free Nike golf balls attached to boxes of its Wheaties cereal. This sales promotion technique is called a a. sample. b. coupon. c. prize. d. premium. e. bribe. 15.9 ANSWER KEY FOR QUIZZES I AND II Quiz I True-False Multiple-Choice 1. F 6. e 2. F 7. e 3. T 8. c 4. F 9. b 5. F 10. b Quiz II True-False Multiple-Choice 1. F 6. e 2. F 7. c 3. F 8. a 4. T 9. d 5. T 10. D 15.10 CLASSROOM EXERCISES 15.10a Homework Activities • Have students bring in an example of a consumer sales promotion. • Researching and Following a Company Throughout the Course (continuing assignment). Have students describe recent advertising, sales promotion, and public-relations efforts by the company. • Homework for Discussion Starter. In the class prior to the coverage of specific advertising media, ask students to surf their favorite Web sites and identify any ads that they like on the Internet. Ask them to write down the URL and why they like the ad. 15.10b Classroom Activities • Ad Diagnosis Exercise. Bring in copies of magazines or newspapers (or ask students to bring them in) or show the class videotapes of commercials that you supply. As you show or pass around each ad, have students identify ads that represent: (1) Primary-demand advertising (2) Selective-demand advertising (3) Institutional advertising Have students evaluate the effectiveness of each advertisement. (4) Does it have a clear objective? (5) Are the issues or selling points important to the target audience(s)? • Advertising Slogan Fun Quiz. Either singly or in groups, ask students to identify the company or brand that is associated with each slogan on the handout. After discussing the answers (provided), ask students to consider the factors that help to make a slogan more easily recalled. • Message and Slogan Group Activity. Assign students to small groups and give them the handout. They should read the “message” that the advertiser wanted to get across to the target audience and come up with the popular slogan. (You might consider giving bonus points if the students can come up with the product as well!) • What’s My Sales Role? Exercise. Either singly or in groups, ask students how they would classify the salespersons listed on the handout. Answers are provided. • Promotion, Promotion, Promotion! Exercise. After placing students into groups and giving them the handout, give them approximately 20 minutes to develop the promotion plan outline for the washing machine/dryer combo. They are to develop these outlines for two very different target audiences. An example for a third target is provided to give the students guidance. • Creativity Exercise. Use the exercise, “Creativity: It’s Everybody’s Game,” to stimulate student discussion, encourage study creativity, build teamwork, and enhance class participation. • So You Think You Can Plan an Event! Group Activity. Students should be placed into groups of four to six and given the handout. They will need a minimum of 40 minutes to create a plan for an event on campus. You may also wish to spread this exercise out over two separate class sessions. 15.10c Exercise Handouts Follow on Next Pages ADVERTISING SLOGAN FUN QUIZ a. “I’m Lovin’ It.” b. “Always Low Prices. Always.” c. “Finger Lickin’ Good!” d. “Maybe She’s Born with It.” e. “Eat Fresh.” f. “You’re in Good Hands.” g. “What Can Brown Do for You?” h. “The Quicker Picker Upper.” i. “Eat More Chicken.” j. “Think Outside the Bun.” k. “What’s in Your Wallet?” l. “Zoom, Zoom.” m. “So Easy, Even a Caveman Can Do It.” n. “The Few, the Proud, the …” Advertising Slogan Fun Quiz Answers a. “I’m Lovin’ It.” (McDonald’s) b. “Always Low Prices. Always.” (Walmart) c. “Finger Lickin’ Good!” (KFC) d. “Maybe She’s Born with It.” (Maybelline) e. “Eat Fresh.” (Subway) f. “You’re in Good Hands.” (Allstate) g. “What Can Brown Do for You?” (UPS) h. “The Quicker Picker Upper.” (Bounty Paper Towels) i. “Eat More Chicken.” (Chick-fil-A) j. “Think Outside the Bun” (Taco Bell) k. “What’s in Your Wallet?” (Capital One) l. “Zoom, Zoom.” (Mazda) m. “So Easy, Even a Caveman Can Do It.” (GEICO) n. “The Few, the Proud, the . . .” (The United States Marine Corps) Message and Slogan Before you can come up with these catchy slogans, you have to figure out the message you’re trying to get across to your audience. Consider the message of just a few of these slogans: The message was: “Our paper towels will pick up spills faster than other paper towels.” The slogan was: “The Quicker Picker Upper.” Try another one. The message was: “Sometimes you want a candy bar that has nuts in it. At other times you want a candy bar that doesn’t have nuts in it.” The slogan was: “Sometimes you feel like a nut, sometimes you don’t.” Try these on for size. Here are the “messages” for some popular ad campaigns. What were the slogans? Remember, we want the advertising slogan, not the name of the product. 1. You will like our coffee so much that you will finish every bit in your cup. Slogan: _______________________________________ 2. If you don’t want certain toppings on your hamburger, just let us know and we’ll fix it that way. Slogan: _______________________________________ 3. Always make sure that you have our credit card with you before you leave your house. Slogan: _______________________________________ 4. Our beer tastes good and it doesn’t make you feel as bloated as other beers. Slogan: _______________________________________ 5. You can treat our watches harshly, and they will still keep accurate time. Slogan: _______________________________________ 6. Our batteries last a long time. Slogan: _______________________________________ 7. You don’t have to travel too far from your house to get a good meal in a restaurant. Slogan: ________________________________________ 8. When you start eating our snacks, you’re going to want to eat a lot of them. Slogan: ________________________________________ 9. When you open the lid off the top of the can, you’re going to want to eat all of the potato chips. Slogan: ________________________________________ 10. Other fast-food companies give you small hamburgers, but we give you bigger hamburgers. Slogan: ________________________________________ Message and Slogan Instructor Notes 1. You will like our coffee so much that you will finish every bit in your cup. (Good to the last drop—Maxwell House) 2. If you don’t want certain toppings on your hamburger, just let us know and we’ll fix it that way. (Have it your way—Burger King) 3. Always make sure that you have our credit card with you before you leave your house. (Don’t leave home without it—American Express) 4. Our beer tastes good and it doesn’t make you feel as bloated as other beers. (Tastes great, less filling—Miller Lite) 5. You can treat our watches harshly, and they will still keep accurate time. (Takes a licking and keeps on ticking—Timex) 6. Our batteries last a long time. (It keeps going, and going, and going …—Eveready Batteries) 7. You don’t have to travel too far from your house to get a good meal in a restaurant. (Eatin’ Good in the Neighborhood—Applebee’s) 8. When you start eating our snacks, you’re going to want to eat a lot of them. (Betcha can’t eat just one—Lay’s Potato Chips) 9. When you open the lid off the top of the can, you’re going to want to eat all of the potato chips. (Once you pop, you can’t stop—Pringles) 10. Other fast-food companies give you small hamburgers, but we give you bigger hamburgers. (Where’s the Beef?—Wendy’s) What’s My Sales Role? Your text lists the following types of salespersons: Order-getters, order-takers (field and inside), and support personnel such as missionary, trade, and technical salespersons. Using the descriptions outlined in the text, classify each of the following salespeople. Be prepared to support your answer. a. Pharmaceutical salesperson selling to doctors b. Car salesperson c. Retail store salesperson d. Telemarketer soliciting donations for a charity e. Real estate agent f. Heavy equipment salesperson g. Agent for a snack food distributor who only stocks shelves h. Door-to-door cosmetics salesperson i. Insurance salesperson j. Agent for a snack food distributor who fills a retailer’s orders What’s My Sales Role? Answers a. Pharmaceutical salesperson selling to doctors (missionary salesperson) b. Car salesperson (order-getter, new-business sales) c. Retail store salesperson (inside order-taker) d. Telemarketer soliciting donations for a charity (order-getter, new-business sales) e. Real estate agent (order-getter, new-business sales) f. Heavy equipment salesperson (order-getter, new-business sales) g. Agent for a snack food distributor who only stocks shelves (trade salesperson) h. Door-to-door cosmetics salesperson (order-getter/field order-taker) i. Insurance salesperson (order-getter, new-business sales) j. Agent for a snack food distributor who fills a retailer’s orders (field order-taker) Promotion, Promotion, Promotion! Your company has just developed a new washer/dryer combo that has some unique characteristics and benefits. Your task is to develop a promotion plan outline for each of the target audiences detailed below. The overall promotion objectives remain the same for both targets. An example utilizing a third target is done for you. • Target Audience I. Young college graduates under the age of 30. Single, no children, income $50,000 or less, living in a major metropolitan area. Most likely apartment dwellers who currently have to use laundromats. • Target Audience II. Small businesses such as car repair, pizza delivery, florists with less than 50 employees and sales under $1 million annually. Mostly urban or suburban. Currently either take any items such as towels, aprons, etc., that need to be washed home or contract out to a service. PRODUCT DETAIL Product: New, compact, energy-efficient, and fast washing machine invented by three engineering students at a major American university. Some specific attributes include: Size: Three feet by three feet size Weight: Only 30 pounds due to lightweight materials Load capacity: Small to medium loads Energy saving: Half of normal washing machine Speed: Does a small load in 15 minutes, a medium load in 25 minutes Price: $199 plus a three-year warranty on all parts and repair May be purchased as a set with its matching dryer, which is the same size and weight with the same energy-saving characteristics. Sold alone, it is also priced at $199. When the two items are purchased together, the price is $379 for the set. Overall Promotion Objective: 1. Position the new brand as the compact, lightweight, inexpensive-to-use purchase alternative to traditional washing machines and dryers. 2. Maximize awareness of the new brand and washing machine among the target audience and encourage them to go to their retail dealer to look at it and compare it to existing models. Based on the objectives, it is clear that a combination of promotion elements needs to be considered. Your task, with your team, is to develop a brief promotion plan recommendation for both target markets. Both plans should include: Advertising: Objective, message strategy, and media recommendation Personal Selling: Objectives and incentives Sales Promotion: Objectives and tactics for both trade and consumer promotion Public Relations: Objectives and tactics Example Plan: Consider the following target: Older adults over the age of 65, single or married, with household income over $25,000 annually. Living in apartments or single-family home, all geographic areas, currently with older, larger, machines that are not energy saving. In this case, the promotion manager may wish to propose the following: Advertising Objective: Create brand awareness and establish brand position by conveying product benefits. Advertising Message: This is the most practical and user-friendly time and money-saving washer/ dryer combination available. It is also great in small spaces. Visuals should show older people lifting the machines or using them in small spaces as well as enjoying time and money savings. Media Plan: Given the objectives of awareness and positioning, television will be used extensively. Not only will spots run in shows preferred by older people such as the news and game shows, but product placement on talk shows such as The View will also be recommended. If budgets allow, infomercials to demonstrate the product’s features and benefits will be considered. Personal Selling Objective: Provide incentives to salespersons at retailers such as Sears and The Home Depot to demonstrate the advantages of the brand. Incentives could include $20 rebate for each washer/dryer combo the salesperson sells as well as trade promotion ideas such as buying allowances for retailers who purchase over 100 washer/dryer combinations or cooperative advertising allowances to feature the washing machine in their weekly flyers. Sales Promotion Objective: Provide incentives to consumers to make them consider immediate purchase of the washer/dryer combo. Tactics could include: Premiums: Complete set of major brand detergent and fabric softener included with purchase Coupons: Coupon good for additional $10 purchase at the retailer where they purchase the washer/dryer combo Rebate: Mail rebate of $20 for purchase in specified time period Public Relations Objective: Encourage target audience to see the new brand as socially responsible. • Donate a washer/dryer combo to a local charity favored by the target audience. • Plan a bingo event with the washer/dryer combo as the grand prize. • Work with local media to feature an older couple who have received great benefit from the product. CREATIVITY: IT’S EVERYBODY’S GAME* Introduction This game stems from our experience with students who feel they are not creative and accept the notion that creativity is a trait/skill that is genetic rather than one that can be honed and developed. Use of the creativity game is an attempt to demonstrate that everyone can be creative in the right environment and with the right stimuli. This game has been used in multiple courses such as Advertising Management, Promotion Management, and Direct Marketing Management. Game Objective This exercise was developed to encourage student creativity, improve ability to brainstorm, build teamwork, and enhance class participation. Game Logistics The premise of the game is to come up with a target market, a product/service name, an associated slogan, a spokesperson, and relevant media for a product described by the instructor. The twist is that the product is one with a strange, unique, nonexistent quality. Examples of products used are a dog food that gives your dog the ability to engage in a conversation or an ink pen that only writes the correct responses to exam questions. Why the twist? Does it enhance creativeness? Using commercially marketed products was found to be a barrier as students had trouble breaking away from existing campaigns and their well-established elements. Familiarity was an obstacle for most students. Using products that did not exist shed inhibitions, and the unique twist associated with each product further enhanced the creative process by letting students explore the complete gambit of possibilities since they had no preconceived biases. Further, it has been our experience that when people are having fun they will bounce back easier from misses, failures, and mistakes. People work better when they are having fun along with challenges. People maintain higher levels of enthusiasm and motivation when they are having fun and find value in their work. The exercise draws from an improvisational comedy workshop and was adapted for the various courses. Playing the Game Students are told that there has been a last-minute request for an advertising campaign from a company that the organization has been pursuing for some time. The client wants to see preliminary campaign elements and has furnished the product brief that includes the description of the product with the twist. Students are told to develop a target market profile, a suitable name for the product, and a spokesperson and to identify optimal media choices, all within a 10-minute time frame. Students are further introduced to the concept of “acceptance.” The concept of acceptance is best illustrated via two improvisational exercises used in comedy workshops. (1) Repeat and Agree (2) Yes … & works Both of these exercises teach acceptance of every idea, no matter how bizarre it may seem at first glance. Repeat and Agree We begin the exercise with the instructor providing a product brief for an unnamed product. A student volunteer comes up with a name. The instructor repeats the name enthusiastically and asks another member of the class to suggest a slogan for the product. Another student repeats the slogan and requests yet another colleague for a product spokesperson. This exercise continues with further elements until a detailed product profile is developed. Finally, a student volunteer is asked to summarize the product campaign. Yes … & works This method is similar to Repeat and Agree, but the central idea is to get the group excited about the product and campaign by enthusiastically supporting each suggestion. We have found that the game works best when the group takes the first suggestion offered and builds on it. This method is unique from Repeat and Agree in that each strategic element is not repeated by a subsequent student volunteer. Conclusion Our experience in using this game over many semesters and courses has been overwhelmingly positive. Most often, the initial giggles associated with our bizarre product brief are quickly ended and are followed by intense brainstorming and serious thought. This exercise has generated loads of discussion, laughter, and often some genuinely insightful ideas. Our enthusiasm stems from seeing our students actively engaging in the creative process, vehemently defending their ideas, and having fun in the process. Creativity: It’s Truly Everybody’s Game. SO YOU THINK YOU CAN PLAN AN EVENT! Your task is to develop an outline for an event on campus that will build school spirit. 1. The target audience is students. 2. The event may be tied to an athletic event. 3. Time of year, day and, specific on-campus location are to be determined. 4. The objective is to attract as many students as possible and build school spirit. 5. Food may be provided. 6. No alcoholic beverages may be served. Your outline should include as many of the following specifics as possible: 1. Theme 2. Timing 3. Brief description of major event elements 4. Venue layout 5. Food recommendations 6. Security plans 7. Admission charge, if any 8. Personnel requirements 9. Vendors, if any 10. Sponsors, if any 11. Performers, if any 12. Bathroom facilities 13. Grounds-keeping issues including shutdowns of parking lots if applicable, etc. 14. Tickets 15. Housekeeping, trash cans, etc. So You Think You Can Plan an Event! Instructor Notes The recommended time for this group exercise is a minimum of 40 minutes. The exercise is best suited for a class of at least 90 minutes. That way, there will be time for each group to present their event. Alternatively, students can work on the event in class one class meeting and then present it in the next. That will allow them to spend time outside of class doing PowerPoints, maps of venues, etc. Students will enjoy the creativity involved with this event. RUNNING A BUSINESS—PART 5 Suggestions for using this video case are provided in the Pride/Hughes/Kapoor Video Guide. Graeter’s Marketing Offers “Sweet Rewards” 1. Which of Graeter’s marketing-mix elements are most likely to be affected by external forces in the marketing environment, and in what ways? Students should be able to identify a number of forces that affect Graeter’s marketing mix. First, economic forces will affect its pricing decisions, in part because of what happens to its costs and in part because of how much disposable income consumers have to spend on extras like premium ice cream. Technological forces have already made a major difference in Graeter’s distribution decisions, allowing it to identify markets of great potential and pinpoint which products sell well in which locations. Technology also enables Graeter’s to promote more efficiently and effectively to loyal customers. Legal and regulatory forces affect its product: The company must comply with a variety of local, state, and national guidelines for labeling, purity, and so on. Competitive forces will affect its price and promotion, in particular. 2. Graeter’s scoop shops sell ice cream, sorbet, smoothies, candy, and (in Cincinnati only) bakery items. Should the company consider a brand extension such as iced coffee drinks for its scoop-shop menu? Explain your answer. Students who recommend this brand extension may say that the Graeter’s brand is very strong and would work well on products related to what it sells now, such as iced coffee. They may also say that selling a branded iced coffee would add to the scoop shop’s revenues and allow Graeter’s to meet more of its customers’ needs. Students who don’t believe this brand extension is a good idea may argue that iced coffee, as a beverage, is an entirely different category than ice cream or even smoothies and Graeter’s would have no brand advantage here. They may also argue that extending the brand too far would dilute Graeter’s image and leave customers to wonder what the brand really stands for. One possibility is that Graeter’s would sell an iced coffee drink made by a different (noncompeting) firm and branded by that firm, which might appeal to scoop-shop customers and add to revenue. 3. Is Graeter’s using intensive, selective, or exclusive distribution? Why is this level of market coverage appropriate for its ice cream products? Graeter’s appears to be using selective distribution, putting its ice creams in supermarket chains and in fine restaurants and country clubs—but not in every store, convenience store, or restaurant. It also wants to differentiate itself from national brands that are sometimes seen as its competitors, and it can do this through distribution. If Graeter’s products were available on every street corner or in fast-food restaurants, it might not be seen as a premium brand. BUILDING A BUSINESS PLAN—PART 5 The Marketing Plan Component Advise students that this is one of the most important components of their business plan. Make certain that students present the facts on the size and nature of their market(s). They should state market size in units and dollars. How many units and what is the dollar value of the products they expect to sell in a given time period? How did students estimate total market size and their market share? To accomplish their goals, refer students to Part 5 of the textbook that covers all marketing-related issues. These four chapters should help students answer the questions in this part of the business plan. Warn students that many assumptions or projections used in the analysis may turn out differently; therefore, the marketing plan component should be flexible enough to be fine-tuned as needed. Make sure that students address at least the following issues in their marketing plan: • Target markets and their current needs • The marketing mix and the marketing environment • Demographic, geographic, psychographic, and product usage characteristics • The business’s advantages/disadvantages in meeting the target market’s needs • Product distribution, promotion, and price • Relevant aspects of consumer behavior and product use • Projected sales volume, market share, and profitability • Marketing objectives. Make sure these are clearly written, measurable, and consistent with the overall marketing strategy. Moreover, students should address how the results of their marketing plans and strategies will be measured and evaluated. Ask students to prepare advertising samples for the appendix. Review of Business Plan Activities Make sure that students resolve any issues in this component of their business plan before beginning Part 6. Again, make sure that their answers in each part are consistent with the entire business plan. They should write a brief statement that summarizes all the information for this part of the business plan. Chapter 15 Video Case: L.L.Bean Employs a Variety of Promotion Methods to Communicate with Customers RUNNING TIME: 8:09 Chapter 15 discusses developing integrated marketing communications, which involve the coordination of promotion efforts to achieve maximum informational and persuasive impact on customers. Promotion is communication about an organization and its products that is intended to inform, persuade, or remind target-market members. Advertising is a paid nonpersonal message communicated to a specific audience through a mass medium. The major advertising media are newspapers, magazines, direct mail, outdoor displays, television, radio, Internet, and social media. A firm’s first task is to identify and analyze its advertising target. Personal selling is personal communication aimed at informing customers and persuading them to buy a firm’s products. Sales promotion is the use of activities and materials as direct inducements to customers and salespersons. Public relations is a broad set of communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external. Concepts Illustrated in the Video • Advertising • Alternative Marketing • Catalog Marketing • Customer Experience • Customer Research • E-Commerce • Marketing Channels • Online Advertising • Promotions VIDEO CASE SUMMARY Perhaps best known for its mail-order catalog, L.L.Bean has grown from its founding as a one-product firm in 1912 to a national brand with 14 stores in ten different states and a thriving online store. With net sales over $1.5 billion annually, online orders have recently surpassed mail and phone orders. Marketing communications are more sophisticated now than when L.L.Bean created its first product. Today, the company uses marketing database systems to manage and update its mailing lists. With its catalog still fulfilling a major communication role, L.L.Bean uses computer modeling tools to identify the potential customers who will receive catalogs. Since the catalog is expensive to produce, the company tries to support it with other marketing media. A big and growing area for the company’s promotion efforts is the Internet, where it uses banner ads on popular sites like Hulu.com. The company invests heavily in television advertising as well, particularly around the holidays. Local TV ads are concentrated in the areas around the company’s retail stores. Critical-Thinking Questions Using information from the case and the video, answer the following questions: 1. What are the ingredients of L.L.Bean’s promotion mix? A promotion mix is the particular combination of methods a firm uses to reach a target market. L.L.Bean uses all four promotional mix ingredients, including advertising, sales promotion, public relations, and personal selling. Through its banner Web advertisements, alternative advertisements, and catalog, the company relies heavily on the advertising function. Retail stores, the Web site, and its catalog are used heavily for sales promotion. The company uses the public relations function when communicating messages to customers about environmental stewardship. Personal selling was used heavily in the early years by L.L.Bean himself and is used regularly today by sales associates. 2. L.L.Bean is reaching into “alternative” promotions, including outfitting Weather Channel meteorologists around the United States and emblazoning its name on the tarp used by the Red Sox baseball team to protect the field during rain delays. What other kinds of promotional activities do you think would suit the company’s outdoorsy image? In determining creative methods of advertising, the company should work to incorporate its outdoor image while also keeping in mind the advertising trends and opportunities that are most current. The company should continue its focus on advertising through social media and the Internet and should augment advertising at Web sites that are linked to the outdoors. For example, the company could increase advertising on Web sites for recreational parks and facilities. 3. Do you think L.L.Bean’s Web site will ever entirely take the place of its mail-order catalog? Why or why not? Considering the high cost of printing and distributing the catalog, and keeping in mind the company’s focus on environmental sustainability, it is entirely possible that L.L.Bean’s Web site may ultimately make the company’s mail-order catalog unnecessary as a promotional medium. The company should regularly track sales from online orders versus catalog orders and other areas to stay informed on customers’ preferred buying methods. In place of a catalog, the company in the future may issue a one-page flyer describing current sales promotions and directing customers to the company Web site to learn more. Chapter 15 Lecture Launcher: I Believe the Term Is “Co-Branding” VIDEO SUMMARY Urban Farmz needs an integrated marketing communications plan, one that reaches its customers on the Web as well as its retail, restaurant, and grocery customers. Grandpa thinks such a plan could get too expensive. “How are you going to reach all of those people? I’m not sure you boys should be spending all that on advertising,” he tells Caleb and Jake. Sylvie assures Grandpa that reaching all of Urban Farmz’s customers is possible using the right promotion mix. She asks Sue and Caleb to explain to Grandpa how the integrated marketing plan the two of them have developed will work. Solution Manual for Business William M. Pride, Robert J. Hughes, Jack R. Kapoor 9781133595854, 9780538478083, 9781285095158, 9781285555485, 9781133936671, 9781305037083