Podcast
Questions and Answers
What is the affordable budgeting method?
What is the affordable budgeting method?
B
This approach for allocating a budget is referred to as the _____
This approach for allocating a budget is referred to as the _____
What principle for budget allocation was Sears potentially using?
What principle for budget allocation was Sears potentially using?
What can a retailer do to keep customers from being confused about the retailer's image?
What can a retailer do to keep customers from being confused about the retailer's image?
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What should the store manager do to resolve the problem of inconsistency with the communication mix?
What should the store manager do to resolve the problem of inconsistency with the communication mix?
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_____ entails the placement of announcements and persuasive messages purchased by retailers and other organizations.
_____ entails the placement of announcements and persuasive messages purchased by retailers and other organizations.
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Which among the following is the largest group of national advertisers in the United States?
Which among the following is the largest group of national advertisers in the United States?
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Retailers are the _____ group of national advertisers in the United States.
Retailers are the _____ group of national advertisers in the United States.
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Which of the following is a reason for the decline in the growth of newspaper advertising by retailers?
Which of the following is a reason for the decline in the growth of newspaper advertising by retailers?
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A freestanding insert (FSI) is also called a(n) _____
A freestanding insert (FSI) is also called a(n) _____
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____ are advertisements printed at the retailer's expense and distributed as an insert in the newspaper.
____ are advertisements printed at the retailer's expense and distributed as an insert in the newspaper.
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Which of the following is a reason why retailers tend to use magazines for image advertising?
Which of the following is a reason why retailers tend to use magazines for image advertising?
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Which of the following has enabled retailers to personalize their direct mail to all customers?
Which of the following has enabled retailers to personalize their direct mail to all customers?
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This gift with purchase is a form of what kind of sales promotion?
This gift with purchase is a form of what kind of sales promotion?
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A _____ offers an item for free or at a bargain price to reward some type of behavior.
A _____ offers an item for free or at a bargain price to reward some type of behavior.
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Which of the following is classified as in-store marketing?
Which of the following is classified as in-store marketing?
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Which of the following terms best reflects the supermarket's strategy when David picked up a magazine impulsively?
Which of the following terms best reflects the supermarket's strategy when David picked up a magazine impulsively?
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Which of the following terms best reflects the supermarket's strategy when a sales executive approached Peter?
Which of the following terms best reflects the supermarket's strategy when a sales executive approached Peter?
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This is an example of what type of communication method when Isaac Mizrahi signed copies of his book?
This is an example of what type of communication method when Isaac Mizrahi signed copies of his book?
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The Macy's Thanksgiving Day Parade is an example of _____
The Macy's Thanksgiving Day Parade is an example of _____
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Target Field, 'Home of the Twins,' is an example of what type of communication method?
Target Field, 'Home of the Twins,' is an example of what type of communication method?
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_____ is a communication process in which sales associates help customers satisfy their needs.
_____ is a communication process in which sales associates help customers satisfy their needs.
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Which of the following forms of communication is the most expensive?
Which of the following forms of communication is the most expensive?
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When a retailer makes a generous contribution to a charity, it is a method of communicating through _____.
When a retailer makes a generous contribution to a charity, it is a method of communicating through _____.
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Target Corporation uses _____ to communicate their continued commitment to local communities.
Target Corporation uses _____ to communicate their continued commitment to local communities.
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A retailer confirms the receipt of an online shipping order. Which medium is best suited for this purpose?
A retailer confirms the receipt of an online shipping order. Which medium is best suited for this purpose?
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Target uses a Shopkick app to award points to customers who scan products. Which technology best suits this sales promotion?
Target uses a Shopkick app to award points to customers who scan products. Which technology best suits this sales promotion?
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Which of the following is classified as a microblog?
Which of the following is classified as a microblog?
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A retailer wants to announce fast-changing information to excite customers. Which platform will best suit their needs?
A retailer wants to announce fast-changing information to excite customers. Which platform will best suit their needs?
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A _____ is 'a name, term, design, symbol or any other feature that identifies one seller's good or service.'
A _____ is 'a name, term, design, symbol or any other feature that identifies one seller's good or service.'
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The value a brand image provides retailers is referred to as _____
The value a brand image provides retailers is referred to as _____
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_____ refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service.
_____ refers to a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service.
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Which of the following is an example of aided recall?
Which of the following is an example of aided recall?
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Which of the following is an example of top-of-mind awareness?
Which of the following is an example of top-of-mind awareness?
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Andrea wants to build top-of-mind awareness for her nail shop. The best way for her to develop this awareness would be to _____
Andrea wants to build top-of-mind awareness for her nail shop. The best way for her to develop this awareness would be to _____
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Retailers build top-of-mind awareness by _____
Retailers build top-of-mind awareness by _____
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Cinderella's castle would be an example of a(n) _____
Cinderella's castle would be an example of a(n) _____
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Which of the following is typically the first step in developing a retail communication program?
Which of the following is typically the first step in developing a retail communication program?
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Which of the following is typically the last step in developing a retail communication program?
Which of the following is typically the last step in developing a retail communication program?
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When developing a retail communication program, sales goals are set when the _____.
When developing a retail communication program, sales goals are set when the _____.
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When developing a retail communication program, communication objectives are set when the _____.
When developing a retail communication program, communication objectives are set when the _____.
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Which of the following is a well-stated communication program objective?
Which of the following is a well-stated communication program objective?
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A(n) _____ is a promotional program undertaken by a vendor and a retailer working together.
A(n) _____ is a promotional program undertaken by a vendor and a retailer working together.
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In a national print advertisement, Levi's was showcasing their new denim jeans. This is an example of _____.
In a national print advertisement, Levi's was showcasing their new denim jeans. This is an example of _____.
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Sports Authority anticipates running a print advertisement campaign during the beginning of the year. Vendors agree to support the _____ as long as they are certain that their products will be featured.
Sports Authority anticipates running a print advertisement campaign during the beginning of the year. Vendors agree to support the _____ as long as they are certain that their products will be featured.
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_____ is based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution.
_____ is based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution.
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When developing a retail communication program, a marginal analysis takes place when _____.
When developing a retail communication program, a marginal analysis takes place when _____.
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In most cases, which of the following is a reason why it is very hard to perform a marginal analysis?
In most cases, which of the following is a reason why it is very hard to perform a marginal analysis?
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The _____ determines the budget required to undertake specific tasks to accomplish communication objectives.
The _____ determines the budget required to undertake specific tasks to accomplish communication objectives.
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Luke was interested in developing a communication budget for his holistic vitamin shop. What method would be best for him?
Luke was interested in developing a communication budget for his holistic vitamin shop. What method would be best for him?
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The _____ uses past sales and communication activities to determine the present communication budget.
The _____ uses past sales and communication activities to determine the present communication budget.
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When retailers use the _____ method, it is easiest to cut communication program expenses if retail sales fail to meet the sales plan.
When retailers use the _____ method, it is easiest to cut communication program expenses if retail sales fail to meet the sales plan.
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The _____ method uses the difference between the forecasted sales and the expenses plus the desired profit for the communication budget.
The _____ method uses the difference between the forecasted sales and the expenses plus the desired profit for the communication budget.
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The _____ method assumes that communication expenses are just a cost of business and do not promote sales and profit.
The _____ method assumes that communication expenses are just a cost of business and do not promote sales and profit.
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Retailers use _____ to determine the communication budget by forecasting sales during the budget period and then applying a predetermined percentage to set the budget.
Retailers use _____ to determine the communication budget by forecasting sales during the budget period and then applying a predetermined percentage to set the budget.
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For a multi-chain's new store location, the most inappropriate communication program budget method would be _____.
For a multi-chain's new store location, the most inappropriate communication program budget method would be _____.
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Which method for determining a communication budget helps to ensure that the retailer will not spend beyond its means?
Which method for determining a communication budget helps to ensure that the retailer will not spend beyond its means?
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Under the competitive parity method, the communication budget is set so that _____
Under the competitive parity method, the communication budget is set so that _____
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Study Notes
Retail Communication Strategies
- Integrated marketing communication programs create a consistent retailer image, preventing customer confusion.
- Retailers should align their advertising campaign with sales promotions to reinforce the desired image.
- Advertising is defined as the paid placement of announcements aimed at informing or persuading target markets.
Advertising Statistics
- The automobile industry is the largest group of national advertisers in the U.S.
- Retailers rank as the second largest category of national advertisers.
Newspaper Advertising Trends
- Retailers are shifting to other media, contributing to a decline in newspaper advertising.
- Increased costs and decreased market penetration of newspapers also impact retailer usage.
Types of Advertising Formats
- Freestanding inserts (FSI) are also known as preprints, serving as an advertising format in newspapers.
- Advertisements printed at the retailer's expense in newspapers are called preprints.
Advertising Channels and Electronic Media
- Magazines are favored for image advertising due to high reproduction quality and extended shelf life.
- Customer relationship management (CRM) programs enable personalized direct mail for retailers.
Sales Promotions
- A "gift with purchase" is categorized as a premium sales promotion strategy.
- In-store marketing is exemplified by product samples offered to customers.
Communication Methods
- Special events, such as book signings, serve as experiential communication methods.
- Event sponsorships, like the Macy's Thanksgiving Day Parade, enhance brand visibility through public engagement.
Personal Selling and Customer Interaction
- Personal selling involves face-to-face exchanges to fulfill customer needs, recognized as a pivotal communication strategy.
- Salespeople represent one of the most expensive forms of communication in retail.
Role of Public Relations
- Charitable contributions covered by news media are classified under public relations as a communication strategy.
- Retailers utilize public relations to communicate community commitments effectively.
Direct Communication and Technology Usage
- Email is the best medium for confirming online orders due to its immediate accessibility.
- Apps like Shopkick leverage mobile commerce to reward customer engagement and promote sales.
Brand and Awareness Metrics
- Brand equity refers to the value provided to retailers by their brand image.
- Brand awareness assesses a customer's ability to recognize or recall a brand among competitors.
Retail Communication Program Development
- Establishing objectives is the first step in developing a retail communication program.
- Evaluating and implementing programs are critical final steps.
Communication Budgeting Methods
- "Objective-and-task" is a preferred method for determining communication budgets based on specific tasks.
- The "percentage-of-sales" method relies on historical sales to allocate budgets but may limit adaptation to market changes.
Analyzing Communication Spending
- Marginal analysis helps determine effective communication spending in relation to increased sales.
- Under the competitive parity method, budgets reflect market share to maintain competitive positioning.
Principles for Budget Allocation
- The high-assay principle focuses on directing funds to areas yielding the highest return on investment.
- Retailers must avoid fixed budget allocations that can hinder responsiveness to unique market opportunities.
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