Marketing Questions.edited

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Marketing

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Nov 24, 2024

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1 Marketing Questions 1. list and describe the three phases of the evolution of the supply chain concept.  Phase 1 - Functional Focus (1960s-1980s): Supply chains during this phase were function-driven and focused on improving efficiencies within specific functions like purchasing, manufacturing, and distribution. The goal was cost reduction within each function. There was little cross-functional integration.  Phase 2 - Internal Integration (1980s-1990s): Companies started integrating functions internally by linking purchasing, manufacturing, and distribution activities to reduce costs. ERP systems helped enable this integration. The goal shifted to total cost reduction across the internal supply chain.  Phase 3 - External Integration (2000s-present): Supply chain integration extends beyond the company to include suppliers, customers, and other channel partners. The goal is to coordinate the entire supply chain to respond faster to customer needs and reduce total systemwide costs. 2. Supply chains encompass four flows. Describe the four flows and why they are important. How are they related to each other?  Product Flow - The movement of goods and services from suppliers to end customers. This involves the physical distribution of products through the supply chain.  Information Flow - Data moving across the supply chain about demand signals, forecasts, orders, production plans, etc. Information coordination enables the various stages to operate together.  Financial Flow - Cash, credit, and financing moving between parties as payment for goods and services. Financial terms heavily impact supply chain decisions.

2  Knowledge Flow - Expertise, technology, and other intellectual assets are shared between supply chain stages to enable innovation. Knowledge sharing can build capabilities. These four flows are critical because they integrate the supply chain. The flows allow coordination of activities across organizations to serve customers. All four flows are interlinked, enabling anyone requiring attention to the others. 3. List and describe the six steps in the supply chain network design. Of these steps, which are most relevant to selecting a specific location for a logistics facility?  Determine scope - Define the products, functions, and geographic regions that will be included.  Gather data - Collect relevant data about costs, demand, risks, etc., for analysis.  Design network - Develop models representing facility location, capacity, transportation, inventory, etc.  Evaluate alternatives - Assess different network scenarios using data and financial analysis.  Select final design - Choose the optimal supply chain configuration based on performance across scenarios.  Manage implementation - Develop detailed plans for phased implementation, testing, and performance management. For facility location decisions, the most relevant steps are determining scope, gathering data, designing the network, and evaluating location alternatives. Data about demand, transportation, infrastructure, risks, and costs will inform the network modeling and analysis of location options.

3 4. Define omni-channel. How is it different from a typical retail channel? Omni-channel retail involves integrating the different channels and touchpoints to provide a seamless shopping experience for customers. In contrast to single or multi-channel retail, omni- channel enables the customer to move freely between online, mobile, retail stores, and other channels. Information, product availability, promotions, prices, and orders are synchronized across channels. This allows for a unified brand experience and flexibility to purchase, fulfill, and return items via any channel. The key differences from traditional retail are the integration of channels, shared information, and coordination of customer experiences across touchpoints. 5. Click-through rate: Pure Paleo Meals ran Google ads last week that received a total of 100,000 impressions and 2,000 clicks. What was their click-through rate? Conversion rate: Of the 2,000 people who visited the Pure Paleo Meals website, 50 signed up to become customers due to the Google ads. What was their conversion rate? Conversion cost: While you're happy with the conversion rates, you want to ensure these conversions are profitable. On your Google ad account, you see that your average cost- per-click was $1. What is your conversion cost? Show your calculations. Click-through rate (CTR) = Clicks/Impressions = 2,000 clicks / 100,000 impressions = 0.02 or 2% Conversion rate = Conversions/Clicks = 50 customers / 2,000 clicks = 0.025 or 2.5%

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4 Cost per click (CPC) = $1 Conversion cost = CPC x (1/Conversion rate) = $1 x (1/0.025) = $40 Therefore, in summary:  CTR was 2%  The conversion rate was 2.5%  The conversion cost was $40 per customer acquired This shows that while they had decent click and conversion rates when factoring in the CPC, the cost to acquire each customer through this campaign was $40. This conversion cost can be compared to targets or past campaigns to evaluate profitability. 6. Describe in detail the following terms: Cooperative Advertising and Promotional Allowances. Cooperative Advertising is when a manufacturer pays a percentage of a retailer's local advertising costs. For example, a manufacturer may reimburse retailers 50% of ad spending in newspapers, radio, and TV to promote its products locally. This incentivizes retailers to advertise more, and manufacturers get local reach. Promotional Allowances are when manufacturers provide monetary incentives to retailers for featuring or displaying the manufacturer's products in-store. For instance, an allowance may be paid for end-of-aisle displays, signs, in-store demos, featured spots in circulars, etc. This helps secure prime retail space and visibility.

5 The key benefit of both approaches for manufacturers is increased local advertising and retail presence. For retailers, these revenue-sharing programs help offset promotional costs and encourage them to allocate more space/resources. However, manufacturers cede some control over local marketing efforts. 7. According to Chapter 15, what are electronic marketing channels' 5 Key advantages and five key disadvantages? Advantages  Global reach - Digital marketing through websites, social media, email, and other electronic channels allows businesses to promote their products and services to customers worldwide. No geographic limitations exist on who can access and interact with digital content.  Targeting - Electronic marketing channels allow precise targeting using customer data and advanced analytics. Companies can identify specific segments based on demographics, interests, behaviors, and other attributes and tailor and deliver customized messaging.  Interactivity - Customers can directly interact with brands through digital channels. They can provide immediate feedback, ask questions, post comments, subscribe to content, etc. This two-way communication allows for greater engagement.  Cost efficiency - Reaching customers through electronic channels tends to cost less per touchpoint than traditional print, TV, radio, and other mass media. Digital channels are highly scalable with relatively low variable costs.

6  Measurability - Detailed data on customer response and engagement across digital channels can be collected. Marketers can continuously measure results and optimize campaigns by adjusting targeting, messaging, offers, etc., based on performance data. Disadvantages  Security risks - Electronic systems are vulnerable to hacking, malware, data breaches, and other cybersecurity threats. Sensitive customer information faces more risks online. Lax security can severely damage a brand's reputation.  Technology dependence - Digital marketing relies on electronic systems functioning correctly. It disrupts continuity if websites, servers, or networks crash or fail. System outages directly impact marketing capabilities.  Audience fragmentation - As digital media becomes more niche and targeted, it is harder for brands to reach a broad audience in a single place. Consumers spread across platforms, making centralized messaging more difficult.  Message clutter - The volume of brand digital communications risks overwhelming and distracting customers. Cutting through the clutter requires creativity and relevance amid constant promotions.  Impersonal nature - Electronic channels lack human and physical connectivity. Customers may feel less emotionally bonded and loyal to brands they solely interact with digitally. 8. According to Chapter 16, what are the 3 downsides for franchisors, and which are the three downsides for franchisees?

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7 Franchisor Downsides  Less control - Unlike company-owned locations, franchisors have limited control over independent franchisees operating their unit daily. This makes it harder to maintain brand standards, dictate pricing, or make systemwide changes.  Franchisee conflicts - Franchisees are independent business owners who sometimes push back on the franchisor's mandates that affect their profitability. This can lead to fees, restrictions, and support disputes when franchisee goals diverge from the franchisor.  Lower profit margins - Franchisors typically make royalty payments, around 5-10% of revenue from franchisees. This is lower than the profit margins if the unit was company- owned and all revenue went to the franchisor. So, franchisors sacrifice higher unit-level profits for quicker growth through franchising. Franchisee Downsides  Ongoing fees - Besides the upfront franchise fee, franchisees pay regular royalties, marketing contributions, and other fees that reduce their revenue. These ongoing costs can squeeze margins.  Operating restrictions - Franchisees must adhere strictly to the franchisor's system and operating terms, which cover everything from menu to decor. A lack of flexibility can hamper innovation and keeping up with trends.  Less independence - Franchisees can only make significant changes to pricing, menus, and unit design with approval from the franchisor. Their decision-making power is limited compared to independent business ownership.

8 In summary, both parties face drawbacks of franchising related to reduced control, potential conflicts, and constrained decision-making compared to alternatives. However, the benefits of brand leverage and a proven system tend to outweigh the downsides for well-matched franchisors and franchisees.

Marketing Questions.edited

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