1. The different between push and pull supply chain.

Answers:
1.
A push promotional strategy makes use of a company's sales force and trade
promotion activities to create consumer demand for a product.
The producer promotes the product to wholesalers, the wholesalers promote it
to retailers, and the retailers promote it to consumers.
A good example of "push" selling is mobile phones, where the major handset
manufacturers such as Nokia promote their products via retailers such as Carphone
Warehouse. Personal selling and trade promotions are often the most effective
promotional tools for companies such as Nokia - for example offering subsidies on
the handsets to encourage retailers to sell higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other distribution
channels (e.g. selling insurance or holidays directly). With this type of strategy,
consumer promotions and advertising are the most likely promotional tools.
Pull
A pull selling strategy is one that requires high spending on advertising and
consumer promotion to build up consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the
retailers will ask the wholesalers, and the wholesalers will ask the producers.
A good example of a pull is the heavy advertising and promotion of children's toys
mainly on television. Consider the recent BBC promotional campaign for its new preschool programme the Fimbles. Aimed at two to four-year-olds, 130 episodes of
Fimbles have been made and are featured everyday on digital children's channel
CBeebies and BBC2.
As part of the promotional campaign, the BBC has agreed a deal with toy maker
Fisher-Price to market products based on the show, which it hopes will emulate the
popularity of the Tweenies. Under the terms of the deal, Fisher-Price will develop,
manufacture and distribute a range of Fimbles products including soft, plastic and
electronic learning toys for the UK and Ireland.
In 2001, BBC Worldwide (the commercial division of the BBC) achieved sales of
90m from its children's brands and properties last year. The demand created from
broadcasting of the Fimbles and a major advertising campaign is likely to pull
demand from children and encourage retailers to stock Fimbles toys in the stores for
Christmas 2002.
2. The just-in-time supply chain system.

Answers:
JIT Just-in-Time manufacturing
`Just-in-time' is a management philosophy and not a technique.
It originally referred to the production of goods to meet customer demand exactly, in
time, quality and quantity, whether the `customer' is the final purchaser of the product
or another process further along the production line.
It has now come to mean producing with minimum waste. "Waste" is taken in its most
general sense and includes time and resources as well as materials. Elements of JIT
include:
Continuous improvement.
Attacking fundamental problems - anything that does not add value to the product.
Devising systems to identify problems.
Striving for simplicity - simpler systems may be easier to understand, easier to
manage and less likely to go wrong.
A product oriented layout - produces less time spent moving of materials and parts.
Quality control at source - each worker is responsible for the quality of their own
output.
Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes
Preventative maintenance, Total productive maintenance - ensuring machinery and
equipment functions perfectly when it is required, and continually improving it.
Eliminating waste. There are seven types of waste:
waste from overproduction.
waste of waiting time.
transportation waste.
processing waste.
inventory waste.
waste of motion.
waste from product defects.
Good housekeeping - workplace cleanliness and organisation.
Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch
size is 1item. Multi-process handling - a multi-skilled workforce has greater
productivity, flexibility and job satisfaction.
Levelled / mixed production - to smooth the flow of products through the factory.
Kanbans - simple tools to `pull' products and components through the process.
Jidoka (Autonomation) - providing machines with the autonomous capability to use
judgement, so workers can do more useful things than standing watching them work.
Andon (trouble lights) - to signal problems to initiate corrective action.
JIT - Background and History
JIT is a Japanese management philosophy which has been applied in practice since the
early 1970s in many Japanese manufacturing organisations. It was first developed and
perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of

meeting consumer demands with minimum delays . Taiichi Ohno is frequently

referred to as the father of JIT.
Toyota was able to meet the increasing challenges for survival through an approach
that focused on people, plants and systems. Toyota realised that JIT would only be
successful if every individual within the organisation was involved and committed to
it, if the plant and processes were arranged for maximum output and efficiency, and if
quality and production programs were scheduled to meet demands exactly.
JIT manufacturing has the capacity, when properly adapted to the organisation, to
strengthen the organisation's competitiveness in the marketplace substantially by
reducing wastes and improving product quality and efficiency of production.
There are strong cultural aspects associated with the emergence of JIT in Japan. The
Japanese work ethic involves the following concepts.
Workers are highly motivated to seek constant improvement upon that which already
exists. Although high standards are currently being met, there exist even higher
standards to achieve.
Companies focus on group effort which involves the combining of talents and sharing
knowledge, problem-solving skills, ideas and the achievement of a common goal.
Work itself takes precedence over leisure. It is not unusual for a Japanese employee to
work 14-hour days.
Employees tend to remain with one company throughout the course of their career
span. This allows the opportunity for them to hone their skills and abilities at a
constant rate while offering numerous benefits to the company.
These benefits manifest themselves in employee loyalty, low turnover costs and
fulfilment of company goals.

3. The advantage of a distribution center.

Answer:
Distribution channels move products and services from businesses to consumers and
to other businesses. Also known as marketing channels, channels of distribution
consist of a set of interdependent organizationssuch as wholesalers, retailers, and
sales agentsinvolved in making a product or service available for use or
consumption. Distribution channels are just one component of the overall concept of
distribution networks, which are the real, tangible systems of interconnected sources
and destinations through which products pass on their way to final consumers. As
Howard J. Weiss and Mark E. Gershon noted in Production and Operations
Management, a basic distribution network consists of two parts: 1) a set of locations
that store, ship, or receive materials (such as factories, warehouses, retail outlets); and
2) a set of routes (land, sea, air, satellite, cable, Internet) that connect these locations.
Distribution networks may be classified as either simple or complex. A simple
distribution network is one that consists of only a single source of supply, a single

source of demand, or both, along with fixed transportation routes connecting that
source with other parts of the network. In a simple distribution network, the major
decisions for managers to make include when and how much to order and ship, based
on internal purchasing and inventory considerations.
In short, distribution describes all the logistics involved in delivering a company's
products or services to the right place, at the right time, for the lowest cost. In the
unending efforts to realize these goals, the channels of distribution selected by a
business play a vital role in this process. Well-chosen channels constitute a significant
competitive advantage, while poorly conceived or chosen channels can doom even a
superior product or service to failure in the market.
MULTIPLE CHANNELS OF DISTRIBUTION
For many products and services, their manufacturers or providers use multiple
channels of distribution. A personal computer, for example, might be bought directly
from the manufacturer, either over the telephone, direct mail, or the Internet, or
through several kinds of retailers, including independent computer stores, franchised
computer stores, and department stores. In addition, large and small businesses may
make their purchases through other outlets.
Channel structures range from two to five levels. The simplest is a two-level structure
in which goods and services move directly from the manufacturer or provider to the
consumer. Two-level structures occur in some industries where consumers are able to
order products directly from the manufacturer and the manufacturer fulfills those
orders through its own physical distribution system. In a three-level channel structure
retailers serve as intermediaries between consumers and manufacturers. Retailers
order products directly from the manufacturer, then sell those products directly to the
consumer. A fourth level is added when manufacturers sell to wholesalers rather than
to retailers. In a four-level structure, retailers order goods from wholesalers rather
than manufacturers. Finally, a manufacturer's agent can serve as an intermediary
between the manufacturer and its wholesalers, creating a five-level channel structure
consisting of the manufacturer, agent, wholesale, retail, and consumer levels. A fivelevel channel structure might also consist of the manufacturer, wholesale, jobber,
retail, and consumer levels, whereby jobbers service smaller retailers not covered by
the large wholesalers in the industry.
BENEFITS OF INTERMEDIARIES
If selling directly from the manufacturer to the consumer were always the most
efficient methodology for doing business, the need for channels of distribution would
be obviated. Intermediaries, however, provide several benefits to both manufacturers
and consumers: improved efficiency, a better assortment of products, routinization of
transactions, and easier searching for goods as well as customers.
The improved efficiency that results from adding intermediaries in the channels of
distribution can easily be grasped with the help of a few examples. Take five
manufacturers and 20 retailers, for instance. If each manufacturer sells directly to each
retailer, there are 100 contact linesone line from each manufacturer to each retailer.
The complexity of this distribution arrangement can be reduced by adding
wholesalers as intermediaries between manufacturers and retailers. If a single

wholesaler serves as the intermediary, the number of contacts is reduced from 100 to
25: five contact lines between the manufacturers and the wholesaler, and 20 contact
lines between the wholesaler and the retailers. Reducing the number of necessary
contacts brings more efficiency into the distribution system by eliminating duplicate
efforts in ordering, processing, shipping, etc.
In terms of efficiency there is an effect of diminishing returns as more intermediaries
are added to the channels of distribution. If, in the example above, there were three
wholesalers instead of only one, the number of essential contacts increases to 75: 15
contacts between five manufacturers and three wholesalers, plus 60 contacts between
three wholesalers and 20 retailers. Of course this example assumes that each retailer
would order from each wholesaler and that each manufacturer would supply each
wholesaler. In fact geographic and other constraints typically eliminate some lines of
contact, making the channels of distribution more efficient.
Intermediaries provide a second benefit by bridging the gap between the assortment of
goods and services generated by producers and those in demand from consumers.
Manufacturers typically produce large quantities of a few similar products, while
consumers want small quantities of many different products. In order to smooth the
flow of goods and services, intermediaries perform such functions as sorting,
accumulation, allocation, and creating assortments. In sorting, intermediaries take a
supply of different items and sort them into similar groupings, as exemplified by
graded agricultural products. Accumulation means that intermediaries bring together
items from a number of different sources to create a larger supply for their customers.
Intermediaries allocate products by breaking down a homogeneous supply into
smaller units for resale. Finally, they build up an assortment of products to give their
customers a wider selection.
A third benefit provided by intermediaries is that they help reduce the cost of
distribution by making transactions routine. Exchange relationships can be
standardized in terms of lot size, frequency of delivery and payment, and
communications. Seller and buyer no longer have to bargain over every transaction.
As transactions become more routine, the costs associated with those transactions are
reduced.
The use of intermediaries also aids the search processes of both buyers and sellers.
Producers are searching to determine their customers' needs, while customers are
searching for certain products and services. A degree of uncertainty in both search
processes can be reduced by using channels of distribution. For example, consumers
are more likely to find what they are looking for when they shop at wholesale or retail
institutions organized by separate lines of trade, such as grocery, hardware, and
clothing stores. In addition, producers can make some of their commonly used
products more widely available by placing them in many different retail outlets, so
that consumers are more likely to find them at the right time.
WHAT FLOWS THROUGH THE CHANNELS
Members of channels of distribution typically buy, sell, and transfer title to goods.
There are, however, many other flows between channel members in addition to
physical possession and ownership of goods. These include promotion flows,

negotiation flows, financing, assuming risk, ordering, and payment. In some cases the
flow is in one direction, from the manufacturer to the consumer. Physical possession,
ownership, and promotion flow in one direction through the channels of distribution
from the manufacturer to the consumer. In other cases there is a two-way flow.
Negotiation, financing, and the assumption of risk flow in both directions between the
manufacturer and the consumer. Ordering and payment are channel flows that go in
one direction from the consumer to the manufacturer.
There are also a number of support functions that help channel members perform their
distribution tasks. Transportation, storage, insurance, financing, and advertising are
tasks that can be performed by facilitating agencies that may or may not be considered
part of the marketing channel. From a channel management point of view, it may be
more effective to consider only those institutions and agencies that are involved in the
transfer of title as channel members. The other agencies involved in supporting tasks
can then be described as an ancillary or support structure. The rationale for separating
these two types of organizations is that they each require different types of
management decisions and have different levels of involvement in channel
membership.
Effective management of the channels of distribution involves forging better
relationships among channel members. With respect to the task of distribution, all of
the channel members are interdependent. Relationships between channel members can
be influenced by how the channels are structured. Improved performance of the
overall distribution system is achieved through managing such variables as channel
structure and channel flows.
SELECTING CHANNELS FOR SMALL BUSINESSES
Given the importance of distribution channelsalong with the limited resources
generally available to small businessesit is particularly important for entrepreneurs
to make a careful assessment of their channel alternatives. In evaluating possible
channels, it may be helpful first to analyze the distribution channels used by
competitors. This analysis may reveal that using the same channels would provide the
best option, or it may show that choosing an alternative channel structure would give
the small business a competitive advantage. Other factors to consider include the
company's pricing strategy and internal resources. As a general rule, as the number of
intermediaries included in a channel increase, producers lose a greater percentage of
their control over the product and pay more to compensate each participating channel
level. At the same time, however, more intermediaries can also provide greater market
coverage.
Among the many channels a small business owner can choose from are: direct sales
(which provides the advantage of direct contact with the consumer); original
equipment manufacturer (OEM) sales (in which a small business's product is sold to
another company that incorporates it into a finished product); manufacturer's
representatives (salespeople operating out of agencies that handle an assortment of
complimentary products); wholesalers (which generally buy goods in large quantities,
warehouse them, then break them down into smaller shipments for their customers

usually retailers); brokers (who act as intermediaries between producers and

wholesalers or retailers); retailers (which include independent stores as well as
regional and national chains); and direct mail. Ideally, the distribution channels
selected by a small business owner should be close to the desired market, able to
provide necessary services to buyers, able to handle local advertising and promotion,
experienced in selling compatible product lines, solid financially, cooperative, and
reputable.
Since many small businesses lack the resources to hire, train, and supervise their own
sales forces, sales agents and brokers are a common distribution channel. Many small
businesses consign their output to an agent, who might sell it to various wholesalers,
one large distributor, or a number of retail outlets. In this way, an agent might provide
the small business with access to channels it would not otherwise have had. Moreover,
since most agents work on a commission basis, the cost of sales drops when the level
of sales drops, which provides small businesses with some measure of protection
against economic downturns. When selecting an agent, an entrepreneur should look
for one who has experience with desired channels as well as with closely relatedbut
not competitiveproducts.
Other channel alternatives can also offer benefits to small businesses. For example, by
warehousing goods, wholesalers can reduce the amount of storage space needed by
small manufacturers. They can also provide national distribution that might otherwise
be out of reach for an entrepreneur. Selling directly to retailers can be a challenge for
small business owners. Independent retailers tend to be the easiest market for
entrepreneurs to penetrate. The merchandise buyers for independent retailers are most
likely to get their supplies from local distributors, can order new items on the spot,
and can make adjustments to inventory themselves. Likewise, buyers for small groups
of retail stores also tend to hold decision-making power, and they are able to try out
new items by writing small orders. However, these buyers are more likely to seek
discounts, advertising allowances, and return guarantees.
Medium-sized retail chains often do their buying through a central office. In order to
convince the chain to carry a new product, an entrepreneur must usually make a
formal sales presentation with brochures and samples. Once an item makes it onto the
shelf, it is required to produce a certain amount of revenue to justify the space it
occupies, or else it will be dropped in favor of a more profitable item. National retail
chains, too, handle their merchandise buying out of centralized offices and are
unlikely to see entrepreneurs making cold sales calls. Instead, they usually request a
complete marketing program, with anticipated returns, before they will consider
carrying a new product. Once an item becomes successful, however, these larger
chains often establish direct computer links with producers for replenishment.

4. The issues in choosing retail partner.

Answer:

Approach finding a business partner as you would a combination spouse/day care

provider. A partnership is a long-term covenant between two (or more) people. You
will spend a lot of time planning major business events with your partner and need to
be able to get along with him/her.
Your business is something you gave birth to and will have to nurture to help it grow.
You want a partner that will approach your business with the same level of
enthusiasm and commitment that you have, but who also shares the same business
"parenting" philosophies.
1. Find a Partner That Shares Your Values, Entrepreneurial Spirit, and Vision
Of all the things to look for in a partner this is probably the most important. You will
need to be able to communicate effectively with your partner to make decisions, set
goals, and drive the business forward. If you partner with someone that is reluctant,
combative, or unable to consider your viewpoint it will be harder to be successful.
2. Find a Partner That Can Bring Skills and Experience to The Business
A good business partner should have skills that support and compliment your own. No
single person is a master of all things business. If you have great interpersonal skills
but poor business finance skills, consider a partner who understands business
accounting. The more skills you and your partner bring to the business together the
easier it will be to start, plan, grow, and run your business.
3. Look For a Partner Without A Lot of Personal Baggage
If your partner has serious challenges in his/her personal life it may carry over into the
business. It is nice to be willing to give someone a chance, but running a small
business takes focus, time, and tremendous energy. If your partner is dealing with one
personal crisis after another you may find yourself carrying the weight of the
business.
4. Find a Partner That Can Offer Resources and Credibility to Your Business
It is great to have a business partner that has financial resources, but there are other
contributions a partner can bring to the business that can be just as valuable. A partner
with a strong business network, industry connections, client list, or certain credentials
and expertise can also increase the value of your business and improve your chances
for achieving long-term success.
5. Choose a Partner That Practices Good Personal and Business Ethics
Only enter into partnerships with someone you can trust. Look for someone who
values honesty and practices good personal and business ethics. A poorly chosen
business partner may end up stealing from the company, taking your ideas or clients
to start their own business, or breaking laws that could get your business into legal
trouble.
6. Choose a Partner That is Financially Stable
Whether or not your partner contributes financially to the business is less important
than if your potential partner is in dire financial straits. Someone in the middle of a
financial crisis may not be the best choice to go into business with for a variety of
reasons. Money, asset, and time management skills are critical for small business
entrepreneurs and someone who has grossly mismanaged their personal or business

finances may not have the skills or discipline to make a business partnership work.
Worst case scenario, they may even look for ways to steal from your business to solve
personal financial problems.
7. Respect: A Necessary Element to Forming a Successful Partnership
You should never partner with someone that you do not respect. The main purpose in
forming a partnership is to achieve success as a team. You may not value the opinion
and efforts of someone you do not respect at least on a professional level. You also
want to partner with someone that will show you respect as a partner, business
professional, and as the founder of your business.

5. Explain the intensive, exclusive, and selective levels of distribution intensity.

Answers:
xclusive Distribution
Whereby suppliers make agreements with one or a few retailers that designate the
latter retailing as the only ones in specified geographic areas to carry certain brands or
products.
This stimulates both parties to work together to maintain an image, assign shelf space,
allot profits and costs, and advertise. It also usually requires that retailers limit their
brand selection in the specified product lines; they might have to decline to handle
other suppliers brands. From the manufacturers perspective, exclusive distribution
may limit their long-run total sales.
Intensive Distribution
Whereby suppliers sell through as many retailers as possible.
This often maximizes suppliers sales and lets retailers offer many brands and product
versions. Competition among retailers selling the same items is high; and retailers
may use tactics not beneficial to individual suppliers, as they are more concerned
about their own results. Retailers may assign little shelf space to specific brands, set
very high prices on them, and not advertise them.
Selective Distribution
Suppliers sell through a moderate number of retailers. This combines aspects of
exclusive and intensive distribution. Suppliers have higher sales than in exclusive
distribution and retailers carry some competing brands. It encourages suppliers to
provide some marketing support and retailers to give adequate shelf space.
Distribution system, in which a company grants exclusive rights on its products or
services to another company. The most common forms include single branding and/or
exclusive territory rights, whereby a single distributor obtains the right to market a

suppliers product in a specific territory. The suppliers purpose in granting

exclusivity is normally to provide the distributor with incentives to promote the
product and provide better service to customers. In most cases, the distributors
market power is limited by inter-brand competition. Retail selling strategy typically
used by manufacturers of high-priced, generally upscale merchandise, such as cars or
jewelry, whereby manufacturers grant certain dealers exclusive territorial rights to sell
the product. The retailer benefits from the lack of competition, and the manufacturer
benefits from a greater sales commitment on the part of the retailer. Additionally,
exclusive distribution gives the manufacturer greater control over the way the product
is merchandised.
Distribution system whereby a supplier enters into (vertical) agreements with a
limited number of selected dealers in the same geographic area. Selective distribution
agreements, on the one hand, restrict the number of authorised distributors. On the
other hand, they prohibit sales to non-authorised distributors, which leaves authorised
dealers only other appointed dealers and final customers as possible buyers. Selective
distribution is almost always used to distribute branded final products. The possible
competition risks are a reduction in intra-brand competition, the facilitation of
collusion between suppliers or buyers and the foreclosure of certain type(s) of
distributors, especially in case of cumulative effects of parallel networks of selective
distribution in a market. Purely qualitative selective distribution is in general
considered to fall outside the prohibition of Article 81(1) of the EC Treaty, provided
three conditions are satisfied: First, the nature of the product in question must
necessitate a selective distribution system. Secondly, resellers must be chosen on the
basis of objective criteria of a qualitative nature. Thirdly, the criteria laid down must
not go beyond what is necessary.

6. Discuss the types of food retailers.

Answer:
A list of food retailers in Glasgow City with postcodes was obtained from Glasgow
City Council, as of 2007. The list is held by the Council for licensing, inspection and
planning purposes. The list included 7 categories of food retailer: bakers, butchers,
fruit and vegetable (F&V), fishmongers, convenience stores, supermarkets and
delicatessens (delis). A convenience store sells staple items such as milk and bread, in
addition to, a limited selection of fruit and vegetables, tinned produce, snack food
(e.g. crisps, chocolate and sweets), soft drinks, newspapers, cigarettes and may hold a
liquor license.
Look-up tables were used to link the unit postcodes of each retail outlet to Scottish
data zones. The data zone is the key small-area statistical geography in Scotland [26].
The data zone geography covers the whole of Scotland and nests within local
government boundaries. Data zones are groups of 2001 Census output areas and the

majority have populations of between 500 and 1,000 residents. Where possible, they
have been made to respect physical boundaries and natural communities. They have a
regular shape and, as far as possible, contain households with similar social
characteristics.
There are 694 data zones in the Glasgow City Council boundary, with a mean
population of 832 (range 248 2243) and a mean area of 25.2 hectares [26]. In 2006
Glasgow City had a population of around 580,690 people, and covered approximately
17,730 hectares [26]. For each data zone we obtained the 2006 Scottish Index of
Multiple Deprivation (SIMD) Current Income sub-domain score [27] (the 2006 SIMD
was used as a SIMD for 2007 or 2008 has not been developed). The SIMD is a
publicly available continuous measure of compound social and material deprivation,
calculated using data such as employment, welfare benefits, health, education and
housing for each data zone. We chose not to use the full index since it includes health
variables and access to services, so there might have been some circularity in
investigating whether it predicted access to resources. The Current Income subdomain is based on numbers of residents claiming a range of financial welfare
benefits (e.g. Income Support, Guaranteed Pension Credit, Job Seekers Allowance
[27]). We divided SIMD scores for Glasgow into quintiles (Q1 = least deprived, Q5 =
most deprived). Quintiles 14 contain 139 data zones each while quintile 5 includes
138 data zones). We calculated quintiles separately for the Glasgow city area (as
opposed to using the existing Scotland wide categories) because deprived
neighbourhoods using the national classification are overrepresented in Glasgow. The
average area of data zones differed slightly across these quintiles, being greatest (28.6
Ha) in Q4 and least (22.3 Ha) in Q5.
For all food retailers together and each separately, we calculated the mean number of
retailers per thousand population; and the mean network distance in metres from the
centroid of each data zone to the nearest retailer.
We used population data from the General Register for Scotland's 2006 small area
estimates for each data zone [26]. to calculate the density of each retailer per 1000
people per quintile. (Areas without any outlets were also included). Comparison of
density between quintiles was determined by ANOVA using SPSS version 14.0.
Network analysis (i.e. finding the shortest path between two locations on a road
network) was carried out for each retailer using ArcMap v9.1. Street maps (including
point addresses) were obtained from UK Ordnance Survey [28]. Every retailer was
geocoded by unit postcode. Network analysis was undertaken to find the network
distance in metres from the centroid of each data zone to the nearest retailer type and
we then calculated the mean distance to the nearest retailer within each SIMD
quintile. Comparison between quintiles of mean distances to retailers was determined
by ANOVA in SPSS v14.0.

In addition, analyses were carried out combining bakers, butchers, F&V sellers,
fishmongers and convenience stores with supermarkets, as bread, meat, fruit and
vegetables, fish and snack products can also be purchased at supermarkets.
We found that in terms of density of all food retail outlets/distance to the nearest food
retail outlet, the least deprived quintile was the least well served, while the most
deprived quintile had the greatest density, and quintile 3 the closest mean distance.
Findings varied when each category of food outlet was analysed separately. Overall
the findings suggest that deprived neighbourhoods within the City of Glasgow do not
necessarily have poorer access, and more advantaged neighbourhoods better access, to
food retail outlets. In keeping with other studies, findings varied depending on the
type of food outlet measured. It has been shown in previous research within Glasgow
that various different types of resources and amenities were more likely to be located
within the second least deprived quintile, such as restaurants, cafes, dental practices,
banks, ATMs etc [29,30]. We found that butchers and convenience stores had a greater
density within quintile 2, and the nearest supermarket and deli was closest within
quintile 2. This quintile tends to be closer to the central business district, other retail,
office and service hubs (e.g. the West End, Shawlands) (see figure 1), which would be
busy both during the day and evening, and therefore have large numbers of potential
customers.
There are several caveats relating to our the findings. We did not check the accuracy
of the database of food outlets obtained from the Council as outlets were too
numerous to do so. However a study within Glasgow surveyed samples of food stores
in 1997 (N = 325) and 2007 (N = 508) (data obtained from Glasgow City Council)
and found by visiting stores in person that 87% and 88%, respectively, were
confirmed as open and trading as food stores (Cummins S, Macintyre S: How
accurate are secondary data sources on the neighbourhood food environment?,
submitted). This proportion did not vary significantly by the level of deprivation
(DEPCAT Score) within the postcode in which food stores were located at either time
point. Although we looked at access to food retail outlets in terms of density and
proximity we did not explore quality, price, or nutritional value of food products
within each outlet. These factors require more detailed study, which is being carried
forward in current research (i.e. co-workers are comparing the price, availability and
quality of a controlled number of foodstuffs by area deprivation from a sub-sample of
food outlets within Glasgow, but are not studying the distribution of all outlets by
deprivation), but is beyond the scope of this present study. We can not assume that
every food store within each of the categories (e.g. convenience stores, supermarkets
etc) are all equal, but they do share similar characteristics which make it viable to
group them, e.g. supermarkets are large chain retail stores (between 5002500 square
metres approx.) operating on a self-service basis, selling groceries, produce, meat,
bakery and dairy, and some non-food goods [31] while convenience stores are smaller
and have a limited range of generally higher-priced produce [32]. It must also be
noted that proximity does not always predict use, and may not be as important in areas
where car access is high. Car access within the UK is greater among higher social

classes so having a food outlet nearby may not be as important to these residents [33].
People may use food retail outlets near their place of work, study or child's school.
Home delivery from supermarkets may also be an option for weekly shopping, and
also takeaway food, or use of mobile vans selling, for example, fish produce. We can
not assume that people's food shopping takes place within the boundaries of an
administratively defined area. However, we did use relatively small areas which are
designed to respect physical boundaries and natural communities, and comparing
findings using different administrative areas could be undertaken in future more in
depth study. In spite of these issues we feel that our study has contributed to the
literature exploring neighbourhood food retail environment and potential variations by
deprivation, and provided a relatively up-to-date picture of food retailing within the
City of Glasgow.
7. Discuss the advantage of internet channel.
Answer:
Internet channel has the potential to offer a greater selection of products and more
personalized information about products and services in relatively short amount of
time. It also offers sellers the unique opportunity to collect information about how
consumer shop, which mean information that they can use to improve the shopping
experience across all channels.
There are several advantages of internet channel, which consist of broader selection,
more information to evaluate merchandise, personalization, and selling merchandise
with touch-and-feel- attributes. In broader selection side, by shopping on the
internet, consumer can easily visit and select merchandise from a broader array of
retailers. Variety which is the choices you can get for products are amazing. One can
get several brands and products from different sellers at one place. You can get in on
the latest international trends without spending money on airfare. When you shop
online, you can shop from retailers in other parts of the country or even the world
without being limited by geographic area. These stores offer a far greater selection of
colors and sizes than you will find locally. Some online shops have a provision to
accept orders without stock and ship it across to you when the stock becomes
available. You also have the option of taking your business to another online store
where the product is available. For example, a family which always busy with their
work are not supposed to spend their time to shop, and their time are almost fixed,
with this kind of internet channel shopping, customer can save their time, money and
in just one click, they are already can purchase whatever they on through internet.
More information to evaluate merchandise means using an internet channel, firms
can provide as much information as each customer wants and information than he or
she could get through store or catalog channels. Online stores must describe products
for sale with text, photos, and multimedia files, whereas in a physical retail store, the
actual product and the manufacturer's packaging will be available for direct inspection
which might involve a test drive, fitting, or other experimentation. Some online stores

provide or link to supplemental product information, such as instructions, safety

procedures, demonstrations, or manufacturer specifications. Some provide
background information, advice, or how-to guides designed to help consumers decide
which product to buy. Some stores even allow customers to comment or rate their
items. There are also dedicated review sites that host user reviews for different
products. Reviews and now blogs give customers the option of shopping cheaper
organize purchases from all over the world without having to depend on local
retailers.
In a conventional retail store, clerks are generally available to answer questions. Some
online stores have real-time chat features, but most rely on e-mail or phone calls to
handle customer questions. For example, people who seek information, products, and
services and communicate with one another about specific issues, also help customers
solve problems by providing information not readily available through other channel.
People who participate in these networks, known as social shoppers, seek not just
information for future use but also an enhanced emotional connection with other
participates during the shopping experience.
Personalization is the most significant potential benefit of the internet channel is its
ability to personalize the information for each customer economically, whether in
terms of personalized customer service or personalized offerings. Personalized
customer service is the traditional internet channel approach for responding to
customer questions, such as FAQ (frequently asked questions) pages and offering an
800 numbers or e-mail address to ask question, often do not provide the timely
information customer seeking. To improve customer service from an electronic
channel, many firms offer live, online chats. An online chat provide customer with the
opportunity to click a button at any tie and have an instant messaging e-mail or voice
conversation with a customer service representative. This technology also enables
firms to send a proactive chat invitation automatically to customer on the site.
Personalized offering is the interactive nature of the internet also provides an
opportunity for retailers to personalize their offerings for each of their customer. For
example, at many web sites, you can create a personal homepage, like My Yahoo, that
is tailored to your individual needs. Using a cookie, a small computer program that
provides identifying information installed on your hard drive, Amazon serves up
personalized homepages with information about book and other product of interest
based on visitors past purchased.
Selling merchandise with touch-and-feel attribute is a condition when you buy
products, some critical information might include look-and-see attribute, like color,
style, and grams of carbohydrates, or touch-and-feel attributes, like how the shirt
fits, the ice-cream flavor tastes, or the perfume smells. Fit can be predicted well only
if the apparel has consistent sizing and the customer has learned over time which size
to buy from a particular brand. Role of brand is brands provide a consistent
experience for customers that helps overcome the difficulty of not being able to touch
and feel merchandise prior to purchase online. Because consumer trust familiar
brands, products with important touch-and-feel attribute, such as clothing, perfume,
flowers, and food, with well-known name brand sell successfully through nonstore

channels including the internet, catalogs, and TV home shopping. For example, the
branded merchandise like Far Away by Avon is an Oriental Floral fragrance for
women. The fragrance features orange, amber, sandalwood, gardenia, coconut, musk,
violet, freesia, vanilla, Osman thus, peach, jasmine, ylang-ylang and rose. Even if you
cant smell a sample of the perfume before buying it online, you know that it will
smell like your last bottle because the manufacturer of Avon makes sure each bottle
smells the same.
Using technology is firms with electronic channels are using technology to convert
touch-and-feel information into look-and-see information that can be communicated
through the internet. Web site are going beyond offering the basic image to giving the
opportunity to view merchandise from different angles and perspective using 3D
imaging and or zoom technology JCPenney.com has a new interactive shopping tool,
for instance, that lets shoppers mix and match 142000 combinations of window
treatment in visual room settings to preview how a particular choice might look at
home, the use of these image chancing technologies has increased conversion rates
and reduce return.
A gift is Online Shopping makes sending gifts to relatives and friends easy, no
matter where ever they stay. Now there is no need of making distance an excuse for
not sending a gift on occasions like Birthday, Wedding Anniversary, Marriage,
Valentines Day, Mothers Day and so on. With internet channel the information in a
store is not much better than the information provided electronically. For example,
youre going to buy a perfume to your mother. Even if you go to the store and smell
the samples of all the new scent, you might not get much information to help you
determine which one your mother would like. In this situation, store offer little benefit
over an electronic channel in terms of useful information provided about the
merchandise.
Some services providers have been very successful over the internet, because the
look-and-see attributes of their offering can be presented very effectively online. For
example, Amazon.com began as a bookseller; people now can buy anything on its
site.
8. Discuss how does the internet improve multi-channel shopping?
Answer:
An electronic channel can provide firms with valuable insights into how and why
customer shops and are satisfied or dissatisfied with their experience. Internet can
improve their multi-channel shopping with reflect whether customer shop by brands,
size, color, or price point through the store and Web site layout. Besides, customer
willingness to substitute one brand for another. For example, is valuable information
for assortment planning. To collect the information from a store or catalog would be
quite difficult, someone would have to allow shoppers around the stores or observe
them going through catalog pages. However, collecting data as customer navigate a
Web site is quite easy.

9. Explain the AIDA model.

Answer:
AIDA is the original sales training acronym, dating back as early as 1898, and
describes a common list of events that a sales person can follow when selling a
product or service. AIDA sometimes known as the Hierarchy of Effects Model, AIDA
describes the basic process for motivating people to act on an external stimulus (such
as a new idea or product), which includes the way successful selling happens and
sales are made. The AIDA model consists of 4 different phases that leads to the
purchase of a product or service. Awareness leads to Interest, which leads to Desire,
which leads to Action.
This simplistic sales approach works on the basis that anything we buy comes as a
result of the AIDA model and because of that best way to sell is also through the
AIDA approach. So first, something gets our attention, and if it is relevant to us we
become interested in it. If the product or service fulfills a particular want or need we
might have, or is special, unique or rare, then we start to desire it. If our desire is
strong enough to overcome our natural aversion to purchasing, we then become
motivated to take action, buying the product or becoming more susceptible to the
salesperson trying to sell to us.

AIDA model selling process begins with awareness, which refers to a potential
customers ability to recognize or recall that the brand name is particular type of
retailer or product or service. A number of awareness metrics consist of two in this
stage, from aided recall to top-of-mind awareness. Aided is when consumer indicates
they know the brand when the name is presented to them. Top-of-mind awareness is
the highest level of awareness, occurs when consumers mention a specific brand name
first when they are asked about a product or service. Manufacturer, retailers, and
service provider build repeatedly, locations, and sponsorships, and using memorable
symbol. For instance, if you are plying your trade in sales, advertising, and marketing
and/or are communicating directly with potential customers and you can only learn
one sales or selling model, on awareness stage, first get their attention. Without
attention, you can hardly persuade them of anything. You can get attention in many
ways; a good way is to surprise them. When you are talking to them, the first few
seconds are essential as they will listen most then and rapidly decide whether you are
worth giving further attention. Don't waste these precious moments on niceties; grab
the other person's attention immediately. It is generally better to open with something
that pulls them towards you rather than something that scares them (as this may push
them away). Good openers address their problems and begin with such as: Have you
ever? Are you noticing? Can you see? For instance, Reliance India Mobile campaign
can be used to explain this model better. Awareness occurs when the elaborate

advertisement where Mukesh Ambani spoke about the new project being introduced
on his fathers 70th birthday.
Interest is a condition once the consumer is aware that the company or product exits,
communication must work to increase his or her interest level. It isnt enough to let
people know that the product exist, consumer must be persuaded that it is a product
worth investigating. Marketers do so by ensuring that the ads message includes
attributes that are of interest to the target audience. Once you have their attention,
sustain that attention by getting the other person interested. Listening to them talk
about their problems, telling them things that affect their problems. Demonstrating
things, rather than just telling. Getting them actively involved. Watch out for the
boredom factor. You may be able to get someone interested, but you cannot expect to
keep their attention for ever. If you want to come back some day, you should leave
them wanting more, at least of your company. For instance, Interest was generated as
the company spokesperson featured in the ad, as a representative of the company
image and also spoke about introducing a new technology CDMA.
Once they are interested in you and what you have to say, then next step is to create
a desire in them for what you want them to do. They can recognize that they have a
need, but this is not desire. Desire is a motivation to act and leads towards the next
stage. Desire is like a fire, and can be stoked by many methods, such as showing them
how the item to be desired will not be available for long (Scarcity principle). Showing
how other people approve of the item and have acquired it for themselves and
showing them how what you have to offer will solve some of their problems. For
instance, Desire- was created with various offers like free SMS, 40paise STD calls,
easy payment schemes, and discount coupons worth Rs. 1 lakh.
The ultimate goal of any marketing communication is to drive the receiver action.
This is the magic stage when they take action on their desires and actually buy the
product or agree to your proposals. The scariest point is where you ask for the sale or
ask them whether they actually do agree fully with you. Listen to the signals they are
sending. Are they asking you about when you can deliver or what after-sales support
you give? Summarize the problem you are solving for them and how what you are
proposing solves that problem. Use the appropriate closing technique, such as
alternatives (do you want the red or the blue?) or presupposition (what time shall we
meet next week?'). For instance, Action- Dhirubhai Ambani Pioneer offers induced
people to go for the product.
The lagged effect is sometimes consumer dont act immediately after receiving a
marketing communication because of the lagged effect, a delayed response to a
marketing communication campaign. It generally takes several exposures to an ad
before a consumer fully process its message. In turn, measuring the effect of a current
campaign becomes more difficult because of the possible lagged response to a
previous one.
10. Discuss the elements of an integrated communication strategy.
Answer:

Integrated marketing communication (IMC) which is a company carefully integrates

and coordinates its many communications channel to deliver a clear, consistent and
compelling message about the organization and its product. Integrated marketing
communication consist of advertising, personal selling, sales promotions, direct
marketing, public relations (PR), and electronic media.
Advertising is the most visible of the IMC components, the placement of
announcements and persuasive messages in time or space purchased in any of the
mass media by business firms, nonprofit organization, government agencies, and
individuals who seek to inform and or persuade members of a particular target market
or audience about their products, services, organizations and ideas. Mass advertising
can entice consumers into a conversation with marketers. The purpose of advertising
may also be to reassure employees or shareholders that a company is viable or
successful. Advertising messages are usually paid for by sponsors and viewed via
various traditional media; including mass media such as newspaper, magazines,
television commercial, radio advertisement, outdoor advertising or direct mail; or new
media such as blogs and websites and text messages. For instance, online advertising
is a form of promotion that uses the Internet and World Wide Web for the expressed
purpose of delivering marketing messages to attract customers. Online ads are
delivered by an ad server. Examples of online advertising include contextual ads that
appear on search engine results pages, banner ads, in text ads, Rich Media Ads, Social
network advertising, online classified advertising, advertising networks and e-mail
marketing, including e-mail spam.
Personal selling is the two-flow of communication between a buyer and a seller that
is designed to influence the buyers purchase decision. Personal selling can take place
in various settings, such as face-to-face, video teleconferencing, on the telephone, or
over the internet. Personal selling represents an important component of many IMC
programs even though consumer doesnt often interact with professional sales people,
especially in business-to-business (B2B) settings. . Personal selling, however, is far
more costly than advertising and is generally used only when its high expenditure can
be justified but it simply the best and most effective way to sell certain products and
services. Customer can but many product and services without the help of a
salesperson, but sales people simplify the buying process by providing information
and services that save customers time and effort. Sales representatives add significant
value, which makes the added expenses of employing them worthwhile. For example,
Mary Kay Cosmetics, unlike most other consumer product companies, relies primarily
on personal selling which takes place in independent interactions or at Mary Kay
parties where sellers and buyers meet. While Mary Kay products are available online
for purchase, customers buy products through thousands of independent consultants
nationwide because Mary Kay products are not available in retail stores.
Advertisements such as this personal Mary Kay beauty consultant and communicate
the product to customers. This example introduces customers to new beauty products
and the concept of a personal seller who is in direct contact with the customers (and

goes through the sales process, beginning with prospecting and ending by closing and
doing a follow-up). These beauty consultants represent the company to consumers,
acting as salespeople to share information with consumers about various products and
also listening to their opinions to find the best fit for the consumers needs and wants.
Sales promotion is special incentives or excitement-building programs that
encourage the purchase of a product or services, such as coupons, rebates, contests,
free samples, and point-of-purchases displays. Marketers typically design this
incentive for use in conjunction with other advertising or personal selling programs.
Sales promotion can included in short and long term kind of strategies. Long term
definitely effect your profit. Giant using the strategies Buy-One-Get-One-Free
(BOGOF) which is an example of a self-liquidating promotion. For example if a loaf
of bread is priced at $1, and cost 10 cents to manufacture, if you sell two for $1, you
are still in profit, especially if there is a corresponding increase in sales. This is known
as a PREMIUM sales promotion tactic.
Direct marketing is the marketing that communicates directly with target customers
to generate a response or transaction. Telephone, mail, program-length television
commercials, catalogs, and internet-based initiatives such as e-mail and m-commerce
are the variety of marketing communications. Direct marketing is practiced by
businesses of all sizes from the smallest start-up to the leaders. A well-executed direct
advertising campaign can prove a positive return on investment by showing how
many potential customers responded to a clear call-to-action. General advertising
eschews calls-for-action in favor of messages that try to build prospects emotional
awareness or engagement with a brand. Even well-designed general advertisements
rarely can prove their impact on the organizations bottom line. Through telephone
marketing, marketers engage with prospective customers and donors in an interactive
manner through a mobile device or network, such as a cellphone, smartphone, or
tablet. Types of mobile marketing messages include: SMS: (short message service)
marketing communications are sent in the form of text messages, also known as
texting. MMS: (multi-media message service) these messages use elements such as
images, video, and audio; Mobile Applications: Smartphone-based mobile apps
contain several types of messages. Push Notifications are direct messages sent to a
user either automatically or as part of a campaign. They include transactional,
marketing, geo-based, and more. Rich Push Notifications are full HTML Push
Notifications. Mobile apps also contain Interactive ads that appear inside the mobile
application or app; Location-Based Marketing: marketing messages delivered directly
to a mobile device based on the user's location; QR Codes (quick-response barcodes):
This is a type of 2D barcode with an encoded link that can be accessed from a
smartphone. This technology is increasingly being used for everything from special
offers to product information. Mobile Banner Ads: Like standard banner ads for
desktop Web pages but smaller to fit on mobile screens and run on the mobile content
network.
The term "direct mail" is used to refer to communications sent to potential customers
or donors via the postal service and other delivery services. Direct mail is sent to
customers based on criteria such as age, income, location, profession, buying pattern.

Direct mail includes advertising circulars, catalogs, free-trial CDs, pre-approved

credit card applications, and other unsolicited merchandising invitations delivered by
mail to homes and businesses. Bulk mailings are a particularly popular method of
promotion for businesses operating in the financial services, home computer, and
travel and tourism industries. In many developed countries, direct mail represents
such a significant amount of the total volume of mail that special rate classes have
been established. In the United States and United Kingdom, for example, there are
bulk mail rates that enable marketers to send mail at rates that are substantially lower
than regular first-class rates. In order to qualify for these rates, marketers must format
and sort the mail in particular ways which reduces the handling (and therefore costs)
required by the postal service. In the US, marketers send over 90 billion pieces of
direct mail per year. Advertisers often refine direct mail practices into targeted
mailing, in which mail is sent out following database analysis to select recipients
considered most likely to respond positively. For example, a person who has
demonstrated an interest in golf may receive direct mail for golf-related products or
perhaps for goods and services that are appropriate for golfers. This use of database
analysis is a type of database marketing. The United States Postal Service calls this
form of mail "advertising mail" (ad mail for short).
Direct marketing via television (commonly referred to as DRTV) has two basic
forms: long form (usually half-hour or hour-long segments that explain a product in
detail and are commonly referred to as infomercials) and short form, which refers to
typical 30-second or 60-second commercials that ask viewers for an immediate
response (typically to call a phone number on screen or go to a website). TV-response
marketing for example infomercials can be considered a form of direct marketing,
since responses are in the form of calls to telephone numbers given on-air. This allows
marketers to reasonably conclude that the calls are due to a particular campaign, and
enables them to obtain customers' phone numbers as targets for telemarketing. One of
the most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of
RI. Several aspects of ad, such as its use of adding items to the offer and the guarantee
of satisfaction were much copied, and came to be considered part of the formula for
success with short-form direct-response TV ads (DRTV).
Another form of direct marketing, insert media are marketing materials that are
inserted into other communications, such as a catalog, newspaper, magazine, package,
or bill. Coop or shared mail, where marketing offers from several companies are
delivered via a single envelope, is also considered insert media.
Sending marketing messages through email or Email marketing is one of the most
widely used direct-marketing methods. One reason for email marketing's popularity is
that it is relatively inexpensive to design, test, and send an email message. It also
allows marketers to deliver messages around the clock, and to accurately measure
responses.
Public relation is the organizational function that manages the firms communication
to achieve a variety of objectives, including building and maintaining a positive
image, handling or heading off unfavorable stories or events, and maintaining positive
relationship with the media. Image is Important because the business world can be

extremely competitive. Companies typically want to have something that makes them
stand out from the crowd, something that makes them more appealing and interesting
to both members of the public and the media. A favorable image can help increase a
company's sales, and negative publicity can damage a company's reputation and
decrease sales. PR Departments can give consumers and the media a better
understanding of how a company works. Within a company, a PR department might
also be called a public information department or a customer relations department.
These departments assist customers if they have any problems with the company.
They usually try to show the company at its best. PR departments also might conduct
research to learn how satisfied customers are with the company and its products.
Electronic media is information or data that is created, distributed and accessed
using a form of electronics, electromechanical energy or any equipment used in
electronic communications. The common equipment we use on a day to day basis to
access Electronic Media is our television, radio, computer, cell phones and other
devices transporting information to and from us by means of electronic involvement.
Web site are usually use by the firms to build their image and educate their
customers about their product or services and where they can purchased as well as
increasing their emphasis on communicating with customer through their web sites.
For example, the iPhone is a line of smartphones designed and marketed by Apple
Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9,
2007, and released on June 29, 2007. The 5th generation iPhone, the iPhone 4S, was
announced on October 4, 2011, and released 10 days later. An iPhone can function as
a video camera (video recording was not a standard feature until the iPhone 3GS was
released), a camera phone, a portable media player, and an Internet client with email
and web browsing capabilities, can send texts and receive visual voicemail, and has
both Wi-Fi and 3G connectivity. The user interface is built around the device's multitouch screen, including a virtual keyboard rather than a physical one.
Corporate blogging has risen from obscure, random company postings to a valuable
Web addiction in virtually no time. A blog (weblog) contains periodic posts on
common Web pages. Blogs are popular because they provide up-to-date information
and enables readers to engage in discussions via comments. By using blog as a
distribution channel, businesses can build a loyal readership and interact with their
customer base. Insincere postings or fake blogs are actually disguised advertising
campaigns are problematic. By its very nature, a blog is transparent and contains
authors honest observations, which can help customer determine their trust and
loyalty levels. Anything less than total honesty will break that bond and damage the
relationships. When handled appropriately, though, blogs can serve as trusted
platforms for damage control. For example, most brand or corporate blogs have been
top-down, presenting a story but not featuring feedback by the consumer. In that they
are akin to advertorial tales in traditional womens' magazines, in which Janet Smith
(or Betty Crocker) solved the problems of the world with the help of brand X cake
mix or toilet cleanser. Such tales did not feature reader complaints about the product's
effectiveness, expressions of concerns about the cost of 'better living through modern
chemicals' or questions about corporate social responsibility.

Social shopping is a communication channel in which consumer use the internet to

engage in the shopping process by exchanging preference, thought, and opinion
among friends, family, and others. Customers or users review, communicate about,
and aggregate information about products, prices, and deals. Many firms, especially
retailers, encourage customer to post review of products they have bought or used and
have visitors to their Web sites rate the quality of the reviews. For example, MySpacelike site on which shoppers exchange tips and post pictures of their favorite sites.
Online games is one of the particular way to reach younger customer is through short
online games that allow consumers to interact with the site and possibly other players.
A video game console is an interactive entertainment computer or customized
computer system that produces a video display signal which can be used with a
display device a television, monitor to display a video game. The term "video game
console" is used to distinguish a machine designed for people to buy and use
primarily for playing video games on a TV. As of 2007, it is estimated that video
game consoles have made up 75% of the world's gaming market. For example, the
hipster image, young male target market, and claim that it is unique designed to
attract ladies, Tag Body Spray includes on its Web site a game in which visitors take
on the role of a male character who must get past various virtual roadblocks, the
family dog, parents, a younger brother, to gain access to the female honey who will
find his Tag-enhanced scent appealing.
Community build is a social network of individuals who interact through specific
media, potentially crossing geographical and political boundaries in order to pursue
mutual interests or goals. One of the most pervasive types of virtual community
includes social networking services, which consist of various online communities. An
online message board is a forum where people can discuss thoughts or ideas on
various topics. Online message centers allow users to choose which thread, or board
of discussion, users would like to read or contribute to. A user will start a discussion
by making a post on a thread. Other users who choose to respond can follow the
discussion by adding their own post to that thread. Message boards are not
conversation based because user responses do not have to take place right away.
Whenever the user revisits the message board, he/she can make a response. Unlike a
conversation, message boards do not have an instantaneous response and require that
users actively go to the site to check for responses.
Shortly after the rise of interest in message boards and forums, people started to
want a way of communicating with their "communities" in real time. The downside to
message boards was that people would have to wait until another user replied to their
posting, which, with people all around the world in different time frames, could take a
while. The development of online chat rooms allowed people to talk to whoever was
online at the same time they were. This way, messages were sent and online users
could immediately respond back.
Virtual worlds are the most interactive of all virtual community forms. In this type of
virtual community, people are connected by living as an avatar in a computer-based
world. Users create their own avatar character (from choosing the avatar's outfits to
designing the avatar's house) and control their character's life and interactions with

other characters in the 3-D virtual world. It is similar to a computer game, however
there is no objective for the players. A virtual world simply gives users the
opportunity to build and operate a fantasy life in the virtual realm. Characters within
the world can talk to one another and have almost the same interactions people would
have in reality. For example, characters can socialize with one another and hold
intimate relationships online.
Social networking services are the most prominent type of virtual community. They
are either a website or software platform that focuses on creating and maintaining
relationships. Facebook, Twitter, and MySpace are all virtual communities. With these
sites, one often creates a profile or account, and adds friends or follows friends. This
allows people to connect and look for support using the social networking service as a
gathering place. These websites often allow for people to keep up to date with their
friends and acquaintances activities without making much of an effort. On Facebook,
for example, one can upload photos and videos, chat, make friends, reconnect with
old ones, and join groups or causes. All of these functions encourage people to form a
community, large or small, on the Internet.

11. The step involved in planning an ad campaign.

Answers:
The step involving in planning an ad campaign is:
Step1- identify target audience,
Step2- set advertising objective,
Step3- determine the advertising budget,
Step4- convey the message,
Step5- evaluates and selects media,
Step6- create advertisement,
Step7- assesses impact.
Step1, identify the target audience is the success of an advertising program depends
on how well the advertiser can identify its target audience. Firms conduct research to
identify their target audience, then use the information they gain to set the tone for the
advertising program and help them select the media they will use to deliver the
message to that audience. During the research, firms must keep in mind that their
target audience may or may not be the same as current users of the product. Some
advertising message also may be directed at portions of audience who are not part of
the marketers target market but who participate in the purchased process. For

example, Unique Selling Position (USP) An advertising strategy is a simple, unique,

easy to understand message. Dominos pizza Free Delivery, Dominos
differentiated them by offering free delivery, and they repeated that one message over
and over and over. The message is clear, concise, and easy to understand. The benefit
is self-evident and real. Make a list of the benefits you offer that make you unique in
comparison to your competitors, such as, what benefit is most important to your
customers? [Ask them]. What benefit is hard for your competitors to copy? What
benefit can be clearly communicated to your customers? Is it easy to understand? Is
the benefit really desirable to the customer?
Step2, set advertising objective are derived from the overall objective of the
marketing program and clarify the specific goals that the ads are designed to
accomplish. Generally, in advertising to consumers, the objective is pull strategy in
which the goal is to get customer to pull the product into the supply chain by
demanding it. Push strategies also exist and are designed to increase demand by
focusing on wholesalers, distributors, or sales people. All advertising campaign aim to
achieve certain objective to inform, persuades, and reminds customers. Another way
of looking at advertising objective is examine an ads focus. Ads can be used to
stimulate demand for a product category or an entire industry, or for a specific brand,
firm, or item. Of course the better you position yourself, the better you target your
customers, and the better your advertising strategy, the better you will do.
Alternatively, poor strategy and low quality advertising will get you bad results. So
lets say that you expect a .01 response rate [1 percent]. For every one hundred people
in your target audience that is exposed to your ad five times over a given time period,
you will get one customer. Now you know how many exposures you need to achieve
among your target audience. [If you want 50 customers, you need 50 x 100 = 5000
target customers x 5 exposures each = 25,000 exposures].
Set advertising objective including the informative advertising, means a
communication to create and build brand awareness, with the ultimate goal of moving
the consumer through the buying circle to a purchase. Usually, firms will use
informative advertising to tell their customer about an upcoming sales event or the
arrival of new merchandise. For example, an advertisement represents Estee Launder
for upcoming sales with whats in, in the company. Persuasive advertising is used by
firms to motivate consumer to take action. Persuasive generally occurs in the growth
and early maturity stages of the product life cycles, when competition is most intense,
and attempt to accelerate the markets acceptance of the product. In later stages of life
cycle, persuasive advertising may be used to reposition an establish perceptions of the
advertised product. For example, Estee Launder in the poster of company always
encourages their customer to buy a new product in the shop, as well as continue to use
the product that exists in the company. Reminder advertising is communication used
to remind or prompt repurchases, especially for products that have gained market
acceptance and are in the maturity stage of their life cycle. Such advertising certainly
appears in traditional media, such as television or print commercials, but it also
encompasses other firms of advertising. For example, when you decide to buy a
cosmetic product such mascara, in the same time, there are many choices of that

product with a different brand from different company, you will not just take one and
pay it at the counter, and it relies on the top-of-the-mind awareness, based on the
product mascara that you usually use. Focus of advertisements, the first dichotomy is
between product-focused advertisement, which focuses on informing, persuading, or
reminding consumer about a specific product or service, and institutional
advertisements, which inform, persuade, and remind consumers about issues related
to places, politics, an industry, or a particular corporation. The second dichotomy
distinguishes those ads designed to generate demand for the product category or an
entire industry (primary demand) from those designed to generate demand for a
specific brand, firms, or item (selective demand).
Step3, determine the advertising budget, firms must consider the role that advertising
plays in their attempt to meet their overall promotional objective. Second, advertising
expenditures vary over the course of the product life cycle. Third, the nature of market
and the product influence the size of advertising budgets. For example, Small
businesses commonly spend 1 3% of sales on their advertising. For many
companies, like jewelry stores, theaters, and furniture or appliance stores, the normal
expenditure is 4 7%. It is more effective to reinforce a strong selling season with
more advertising than to strengthen a weak selling season. Only reduce your
advertising during peak seasons if you cant handle the volume of business coming in.
Your advertisement must be large enough to contain all of the information consumers
need to make a contact decision. You must budget to buy a big enough space. Many
things will affect your advertising budget. If your store is in a poor location, you are
going to have to outspend your better-located competition to bring people in. (Often
its better to pay for a superior location).
Step4, convey the message, marketer determine what they want to convey about the
product or service. First the firms determine the key message it wants to communicate
to the target audience. Second, the firms decided what appeal would most effectively
convey the message. The message provides the target audience with reason to respond
in the desired way. A logical starting point for deciding on the advertising message is
out tout the key benefits of the product or service. The message should communicates
its problems solving ability Cleary and in a compelling fashion. The appeal is a
condition when advertiser similarly uses different appeals to portray their product or
services and persuade consumers to purchase them, though advertising tends to
combine the types of appeals into two categories, informational and emotional.
Step5, evaluate and select media, depending on your ad, how you evaluate it can
vary. If it included a coupon, for instance, you can simply count how many customers
brought in the coupon. For other ads, you may be simply comparing sales before,
during and after your advertising campaign. Spend as much time on analyzing how
your advertising campaign worked as you can. That information can point you to
more effective uses of advertising in the future. Media planning refers to the process
of evaluating and selecting the media mix, a combination of the media used and the
frequency of advertising in each medium that will deliver a clear, consistent,
compelling message to the intended audience. For example, target may determine that
a heavy dose of television, radio, print, and billboards is appropriate for the holiday

selling sessions between thanksgiving and the end of the year. Mass media channels
include national newspapers, magazines, radio, and television and are ideal for
reaching large numbers of anonymous audience members. Niche media channels are
more focused and generally used to reach narrower segments, often with unique
demographic characteristics or interest. Choosing the right medium, consumer use
different media for different purposes, to which advertiser should match their
message. The example of advertising medium included television, radio, magazines,
newspaper, internet, outdoors, and direct mail. Determining the advertising schedule,
the website, TV station, newspaper, radio station, magazine or other advertising venue
you place your ad with is a crucial decision. Youll need to look at not only the cost of
your preferred venues but also whether they reach your target demographic. Ad buys
can make up a significant portion of your budget. Deciding on where you will place
your ads first tells you how much money youll have left over for actually creating
your ad.
Step6, create advertisement, after the advertiser has decided on the message, type of
ad, and appeal, its attention must shift to the actual creation of the advertisement.
During this step, the message and appeal are translated creatively into words, pictures,
colors, and or music. Often, the execution styles for the ad will dictate the type of
medium used to deliver the message. For example, although automobile manufacturer
and their dealers advertise in many media, the media must fit the message. To
demonstrate an image, they can use television and magazines. To promote price, they
can use newspaper and radio.
Step7, assess impact using marketing metrics, marketing performance measurement
and management (MPM) is a term used by marketing professionals to describe the
analysis and improvement of the efficiency and effectiveness of marketing. This is
accomplished by focus on the alignment of marketing activities, strategies, and
metrics with business goals. It involves the creation of a metrics framework to
monitor marketing performance, and then develop and utilize marketing dashboards
to manage marketing performance. Performance management is one of the key
processes applied to business operations such as manufacturing, logistics, and product
development. The goals of performance management are to achieve key outcomes and
objectives to optimize individual, group, or organizational performance. MPM
however, is more specific. It focuses on measuring, managing, and analyzing
marketing performance to maximize effectiveness and optimize the return of
investment (ROI) of marketing. Three elements play a critical role in managing
marketing performance data, analytics, and metrics. MPM professionals develop
closed-loop business processes for data collection, performance target setting,
measurement and reporting. Processes must describe a document outlining the stepby-step actions that marketing must take to follow the process consistently. A valuable
aid is the process map. Process mapping is a technique to create a clearly defined
objective to meeting business results. It provides a systematic description of the
actions taken by marketing personnel as they use a specific set of activities to produce
a defined set of outcomes. It can also help identify skills the organization may need to
implement the plan. In addition, an organization can use the process map to identify

technology and training requirements. For organizations committed to implementing

ISO 9001, process maps are an integral part of quality management. The marketing
metrics continuum provides a framework for how to categorize metrics from the
tactical to strategic. By navigating this metrics continuum, from activity-based to
predictive, marketers can move towards more effective marketing measurement and
align measurement and metrics with business outcomes.
12. The difference between informational, persuasive, and reminder advertising.
Answers:
The difference between informational is informative is communicating customer
value, telling the market about a new product, explaining how the product works and
suggesting new uses for a product. For example, Estee Launder with the company
upcoming sales event, the company would use a print, or poster advertisement
represents their sales with whats in, in the stores, whereas persuasive advertising are
building brand preference, encouraging switching to your brand and changing
customer perceptions of product attributes. For example, Estee Launder use an
advertisement to change their customer perception with the existing product such
cosmetic product such MAC, often use persuasive advertising to convince consumers
to take action to switch brands, try new product, or even continue to buy the
advertised product., compare to reminder advertising, reminding customer that the
product may be needed in the future, maintaining customer relationship and
marinating top-of-mind product awareness. For example, when you decide to buy a
cosmetic product such mascara, in the same time, there are many choices of that
product with a different brand from different company, you will not just take one and
pay it at the counter, and it relies on the top-of-the-mind awareness, based on the
product mascara that you usually use. Besides, informative advertising informing the
market of a price change, describing available services, correcting false impressions
and building a brand company image, whereas, persuasive advertising is persuading
customer to purchase now, persuading customer to receive a sales call, convincing
customer to tell others about the brand, compare to reminder advertising, keeping the
product in customer minds during off-seasons and reminding customer where to buy
the product.
13. The pros and cons of the different media types.
Answers:
The advantage of newspaper is flexibility, timeless, local market coverage, brand
acceptance, high believability. Television is good mass-market coverage, low cost per
exposure, combines sight, sound and motion, appealing to the sense. Radio is a good
local acceptance, high geographic and demographic selectivity and lower cost.
Magazines a high geographic and demographic selectivity, credibility and prestige,

high quality reproduction, long life, good pass-along readerships. Direct mail is high
audience selectivity, flexibility, no ad competition within the same medium and allows
personalization. Outdoor are flexibility, high repeat exposure, low coat, low message
competition, good positional selectivity. Internet is high selectivity, low cost,
immediacy, and interactive capabilities.
The disadvantage of medium advertising is newspaper has a short life, poor
reproduction quality, small pass-along audience. Television is a high clutter fleeting
exposure, less audience selectivity. Radio just has an audio presentation only, low
attention (the half-heard medium) fleeting exposure, fragmented audiences.
Magazines has a long and purchased lead time, high cost, some waste circulation, no
guarantee of position. Direct mail relatively high cost per exposure: junk mail image.
Outdoor has little audience selectivity, creative has limit and finally is internet which
demographically skewed audience, relatively low impact and audience controls
exposure.