Marketing Exam 3

Value Delivery Network

A network composed of the company, suppliers, distributors, and, ultimately, even customers who partner with each other to improve the performance of the entire system in delivering customer value

Marketing Channel(distribution channel)

A set of interdependent intermediary organizations that help make a product or service available for use or consumption by the consumer or business user

Channel Level

A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

Direct Marketing Channel

A marketing channel that has no intermediary levels, with the producer selling directly to the consumer

Indirect Marketing Channel

A marketing channel containing one or more intermediary levels between the producer and the consumer

Channel Conflict

Disagreements among marketing channel members on goals, roles, and rewards—who should do what and for what rewards

Conventional Distribution Channel

A traditional, multi-level marketing system where independent producers, wholesalers, and retailers operate as separate business entities, each focused on maximizing its own profits

Vertical Marketing System(VMS)

A channel structure in which producers, wholesalers, and retailers act as a unified system

Franchise Organization

A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process by operating through licensed franchisees

Horizontal Marketing System

A channel arrangement in which two or more companies at one level join together to pursue a new marketing opportunity

Multichannel Distribution System

A strategy where a company sells products through multiple, distinct channels—such as physical stores, websites, social media, and third-party marketplaces—to maximize reach and sales

Disintermediation(channel disruption)

The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radically new types of intermediaries

Direct-to-Consumer Brands(DTC)

Brands that avoid direct competition with established traditional brands by marketing, selling and shipping to consumers primarily through online and mobile channels

Marketing Channel Design

Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, evaluating those alternatives, and choosing the best channel design

Marketing Channel Management

Selecting, managing, and motivating individual channel members and evaluating their performance over time

Marketing Logistics

Planning, implementing, and controlling the flow of materials, final goods, services and related information from points of origin to points of consumption to meet customer requirements at a profit

Supply Chain Management

Managing upstream, downstream, and reverse value-added flows of materials, final goods, services, and related information among suppliers, the company, resellers, and final consumers

Integrated Logistics Management

The logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire logistics system

Third-Party Logistics Providers

Independent logistics providers that perform any or all of the functions required to get a client’s product to market

Retailing

All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use

Retailers

Businesses whose sales come primarily from retailing

Shopper Marketing

Focusing the marketing process on turning shoppers into buyers as they move along toward the point of sale, whether during in-store, online, or mobile shopping

Omnichannel Marketing

Creating a seamless and cooadinated cross-channel buying experience that integrates in-store, online, mobile, and other channels

Superstores

Stores much larger than regular supermarkets that offer a large assortment of routinely purchased food products, nonfood items, and services

Specialty Store

Retail stores that carry a narrow product line with a deep variety within that line

Department Store

Retail stores that carry a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers

Supermarket

Large, low-cost, low-margin, high-volume, self-service stores that carry a wide variety of grocery and household products

Convenience Store

Small stores, typically located near residential areas, that are open long hours seven days a week and carry a limited line of high-turnover convenience goods

Service Retailer

Retailers whose core product line is actually a service

Off-price Retailer

Retailers that buy at less-than regular-wholesale prices and sell at low retail prices

Corporate Chains

Two or more outlets that are commonly owned and controlled

Franchise

A contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the franchise system

Direct-mail Marketing

Marketing that involved sending an offer, announcement, reminder, or other item directly to a person at a particular address

Catalog Marketing

Direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online

Telemarketing

Using the telephone to sell directly to customers

Direct-Response TV

A form of television advertising designed to elicit an immediate, measurable action from viewers

Wholesaling

All the activities involved in selling goods and services to those buying for resale or business use

Wholesaler

Firms engaged primarily in wholesaling activities

Merchant Wholesaler

Independently owned wholesale businesses that take title to the merchandise they handle

Broker

A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation

Agent

A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods

Promotion Mix(marketing communcations mix)

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer realtionships

Owned Media

Digital marketing channels, platforms, and content that a brand or company fully owns, controls, and manages

Earned Media

Publicity or exposure for a brand that is gained through unpaid, organic, third-party endorsement rather than paid advertising

Paid Media

Any marketing effort that requires direct payment to leverage external, third-party channels—such as social media platforms, search engines, or websites—to promote content, products, or services

Advertising

Any paid form or non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or a service

Personal Selling

Personal customer interactions by the firm’s sales force tot engage customers, generate sales, and build customer relationships

Public Relations

Activities designed to engage the company’s various publics and build good relations with them

Content Marketing

Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared communications channels and media

Integrated Marketing Communications(IMC)

Carefully integrating and coordinating the company’s communications channels to deliver a clear, consistent, and compelling brand and company message

Push Strategy

A promotion strategy that calls for using the sales force and trade promotion to push the product through channels

Pull Strategy

A promotion strategy that calls for targeting consumer advertising, promotion, and ohter content at final consumers to induce them to engage with and buy the product, creating a demand vacuum that “pulls” the product through the channel

Advertising Objective

A specific communication task to be accomplished with a specific target audience during a specific period of time

Advertising Budget

The dollars and other resources allocated to a product or a company advertising program

Affordable Method

Setting the advertising budget at the level management thinks the company can afford

Percentage-of-Sales Method

Setting the advertising budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

Competitive-Parity Method

Setting the advertising budget to match competitors’ outlays

Objective-and-Task Method

Developing the advertising budget by defining specific promotion objectives, determining the tasks needed to achieve these objectives, and estimating the costs of performing these tasks

Advertising Strategy

The strategy by which the company accomplishes its advertising objectives

Native Advertising

Advertising or other brand-produced online content that looks in form and function like the other natural content surrounding it on a web or social media platform

Core Message

The fundamental, succinct idea or purpose that defines a brand’s identity, value, and mission, connecting what you do with what your audience needs

Creative Brief

A concise document outlining the strategy, goals, audience, and scope of a creative project

Creative Concept(campaign idea)

The compelling “big idea” that will bring an advertising message strategy to life in a distinctive and memorable way

Execution Style

The approach, style, tone, words, and format used for executing an advertising message

Advertising Media

The vehicles through which advertising messages are delivered to their intended audiences

Media Brief

A focused, often informal, session where organizations provide journalists with in-depth information, context, or updates on specific topics

Media Goals

The targeted, measurable outcomes that organizations aim to achieve through their advertising, public relations, and social media efforts

Media Plan

A strategic document that outlines how, when, and where an advertising message will be delivered to a target audience to achieve specific marketing goals

Return on Advertising Investment

The net return on advertising investment divided by the costs of the advertising investment

Advertising Agency

A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs

Personal Selling

Personal customer interactions by the firm’s sales force to engage customers, generate sales, and build customer relationships

Salesperson

An individual who represents a company to customers by performing one or more of the following activities: prospecting, communicating, selling, servicing, information gathering, and relationship building

Sales Force Management

Analyzing, planning, implementing, and controlling sals force activities

Territorial Sales Force Structure

A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line

Product Sales Force Structure

A sales force organization in which salespeople specialize in selling only a portion of the company’s products or lines

Customer Sales Force Structure

A sales force organization in which salespeople specialize in selling only to certain customers or industries

Outside Sales Force

Salespeople who travel to call on customers in the field

Inside Sales Force

Salespeople who conduct business from their offices via telephone, online and social media interactions, or visits from prospective buyers

Team Selling

Using teams of people from sales, marketing, engineering, finance, technical support, and even upper management to service large, complex accounts

Sales Quota

Standards that state the amount a salesperson should sell and how sales should be divided among the company’s products

Social Selling

Using digital platforms and sales tools to engage customers, build stronger customer relationships, and augment sales performance

Selling Process

The steps that salespeople follow when selling, which include prospecting and qualifying, pre-approach, approach, presentation and demonstration, handling objections, closing, and follow-up

Prospecting

The sales step in which a salesperson or company identifies qualified potential customers

Pre-approach

The sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call

Approach

The sales step in which a salesperson meets the customer for the first time

Presentation

The sales step in which a salesperson tells the “value story” to the buyer, showing how the company’s offer solves the customer’s problems

Handling Objections

The sales step in which a salesperson seeks out, clarifies, and overcomes any customer objections to buying

Closing

The sales step in which a salesperson asks the customer for an order

Follow-up

The sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business

Sales Promotion

Short-term incentives to encourage the purchase or sale of a product or a service

Consumer Promotions

Sales promotion tools used to boost short-term customer buying and engagement or enhance long-term customer relationships

Event Marketing

Creating a brand-marketing event or serving as a sole or participating sponsor of events created by others

Trade Promotions

Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, and promote it in advertising

Business Promotions

Sales promotion tools used to generate business leads, stimulate purchases, reward business customers, and motivate salespeople

Digital Marketing

The use of technology-intensive platforms such as the internet, mobile networks and devices, and social media to engage directly with carefully targeted individual consumers, consumer communities, and businesses

Digital Consumer Personas

Detailed, nuanced, and tangible representations of prototypical consumers to be targeted by the digital marketing campaign

Consumer Omni-channel Navigation Behavior

The consumer’s seamless use of multiple marketing channels, both digital and nondigital, across stages of the consumer buying decision process

Online Marketing

Marketing via the internet using company websites, online ads and promotions, email, online video, influence sites, blogs, and other such digital media

Marketing Website

Websites that engage consumers to move them closer to a direct purchase or other marketing outcome