marketing exam 3 vocab

marketing channel

Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

transactional function

when they buy and sell products and services

logistical functions

details of preparing and getting a product to buyers, the gathering, sorting, and dispersing of products

facilitating functions

make a transaction easier for buyers ex: store credit cards (buy now, pay later)

time utility

refers to having a product or service when you want it

place utility

having a product or service available where consumers want it

form utility

involves enhancing a product or service to make it more appealing to buyers

possession utility

entails efforts by intermediaries to help buyers take possession of a product or service, such as offering easy payment methods or leasing contracts

direct channel

the producer and the ultimate consumers deal directly with each other

indirect channel

intermediaries are inserted between the producer and consumers and perform numerous channel functions

digital marketing

makes products and services available for consumption or use by consumers or organizational buyers

direct to consumer marketing

allows consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson

multichannel marketing

omnichannel marketing, the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online

dual distribution

an arrangement where a firm reaches different buyers by employing two or more different types of channels for the same basic product

strategic channel alliances

where one firm’s marketing channel is used to sell another firm’s products

vertical marketing systems

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

corporate vertical marketing system

the combination of successive stages of production and distribution under a single ownership

forward integration

a business strategy where a company expands its operations to control the distribution, retail, or customer-facing aspects of its products, moving closer to the end customer

backward integration

a business strategy where a company acquires or merges with its suppliers to gain control over raw materials or components used in production.

contractual vertical marketing system

independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact

wholesaler-sponsored voluntary chains

wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts

retailer-sponsored cooperatives

when small, independent retailers form an organization that operates a wholesale facility cooperatively

franchising

a contractual agreement between a parent and an individual firm that allows the franchisee to operate a certain type of business under an established name and according to specific rules

manufactured sponsored retail franchise system

manufacturer licenses dealers to sell its products subject to various sales and service conditions

manufactured sponsored wholesale franchise system

exist in the soft drink industry, manufacturer licenses wholesalers that purchase a product from them and then does stuff to it to ultimately promote and distribute the product to retailers and restaurants

service sponsored retail franchise systems

firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others

service sponsored franchise systems

exist when franchisors license individuals or firms to dispense a service under a trade name and according to specific guidelines

administered vertical marketing systems

achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership

what are the three factors impacting channel choice and management?

target market coverage, buying requirements, and profitability

intensive distribution

A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.

exclusive distribution

A level of distribution density whereby only one retailer in a specific geographical area carries the firm’s products.

selective distribution

A level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.

what are the 4 interests of buyers when they want a product or service?

information, convenience, variety, and presale or post sale services

what is the critical dimension of profitability?

channel cost

channel conflict

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goal

vertical conflict

occurs between different levels in a marketing channel, between a manufacturer and a wholesaler or a wholesaler and a retailer

disintermediation

A source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct.

horizontal conflict

occurs between 2 intermediaries at the same level in a channel, between 2 retailers or 2 wholesalers

channel captain

a channel member that coordinates, directs, and supports other channel members

what are the 4 forms of influence?

reward, expertise, identification, and legitimate right

logistics

Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.

logistics management

the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to consumption

what are the 3 elements of logistics

flow of product, being cost-effective, and delivering expected customer service

supply chain

The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users.

supply chain management

the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers

cross docking

a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto its truck for a particular store

bullwhip effect

The tendency for supply chain managers at different levels of the supply chain to exaggerate the need to increase or decrease inventory in response to variation or lack of predictability in customer demand.

total logistics cost

The expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.

customer service

The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

what are the 4 customer service factors?

time, dependability, communication, and convenience

blockchain technology

a decentralized digital system for recording, documenting, and facilitating transactions across all participants in supply chain

vendor-managed inventory

whereby the supplier determines the product amount and assortment a customer needs and automatically delivers the appropriate items

reverse logistics

A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.

retailing

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.

form of ownership

Distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet.

level of service

Describes the degree of service provided to the customer from three types of retailers: self-, limited-, and full-service.

merchandise line

Describes how many different types of products a store carries and in what assortment.

what are the 3 forms of ownership?

independent retailer, corporate chain, and contractual systems

independent retailer

independent business owned by an individual

corporate chain

involves multiple outlets under common ownership

contractual systems

involve independently owned stores that band together to act like a chain

self service

requires that customers perform many functions during the purcahse process

limited service

provide some services such as credit and merchandise return, but not other such as clothing alterations

full service

most specialty stores and department stores, provide many services to their customers

depth of product line

The store carries a large assortment of each product item.

breadth of product line

The variety of different product items a store carries.

specialty outlets

focus on one type of product (Best Buy, Barnes and Noble, Staples)

scrambled merchandising

Offering several unrelated product lines in a single store.

hypermarket

A form of scrambled merchandising, which consists of a large store (more than 200,000 square feet) that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location.

supercenter

combines a typical merchandise store with a full-sized grocery store

intertype competition

Competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy.

v-commerce

vending machines which make it possible to serve customers when and where stores cannot

home shopping

possible when consumers watch a tv shopping channel or an online program on which products are displayed, orders are then placed over the phone or online

telemarketing

Using the telephone to interact with and sell directly to consumers.

direct selling (door-to-door selling)

involves the direct sales of products and services to consumers through personal interactions and demonstrations in their home or office

retail positioning matrix

A matrix that positions retail outlets on two dimensions: breadth of product line and value added, such as location, product reliability, or prestige.

retailing mix

The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise.

markup

how much should be added to the cost the retailer paid for a product to reach the final selling price

original markup

the difference between the retailer cost and initial selling price

maintenance markup

once the product does not sell as quickly as anticipated, the price is reduced

gross margin

the difference between the final selling price and retailer cost is the maintained markup

markdown

occurs when the product does not sell at the original price of existing models to be marked down

everyday low pricing

using price discounts as part of their regular merchandising policy

off-price retailing

Selling brand-name merchandise at lower than regular prices.

warehouse club

large stores are rather stark outlets that typically lack elaborate displays, customer service, or home delivery

outlet store

outlets offer products for 25%-75% off the suggested retail price, bass shoe outlet, gap factory

single price or extreme value, retailers

extreme low pricing, family dollar, dollar general, dollar tree

central business district

The oldest retail setting, usually located in the community’s downtown area.

regional shopping center

A retail location consisting of 50 to 150 stores that typically attract customers who live or work within a 5- to 10-mile range, often containing two or three anchor stores.

community shopping center

A retail location that typically has one primary store (usually a department store branch) and often 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20-minute drive.

strip mall

A retail location consisting of a cluster of neighborhood stores to serve people who are within a 5- to 10-minute drive.

power center

A retail location consisting of a huge shopping strip with multiple anchor (or national) stores.

retail image

the way in which the store is defined in the shopper’s mind, partly by its functional qualities and partly by an aura of psychological attributes

shopper marketing

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store.

shopping experience

A consumer’s perception of an encounter with a store’s physical environment, personnel, and policies and procedures.

category management

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category.

wheel of retailing

A concept that describes how new forms of retail outlets enter the market.

retail life cycle

The process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages.

early growth stage

emergence of a retail outlet, with a sharp departure from existing competition

accelerated development

both market share and profit achieve their greatest growth rates