Marketing Exam 3

Supply Chain

System of upstream and downstream partners that move goods from raw materials to final consumer (make-and-sell view)

Value-Delivery Network

Company, suppliers, distributors, and customers working together to improve performance and deliver value

Channel of Distribution

Interdependent organizations that make a product/service available for use or consumption

Upstream Partners

Firms supplying raw materials, components, info, finances, expertise

Downstream Partners

Wholesalers and retailers connecting firm to customers

Intermediaries

Firms that help distribute and sell goods more efficiently than producers alone

Retailer

Sells goods/services directly to consumers in small quantities

Wholesaler

Sells goods to businesses in large quantities

Channel Functions

Information, promotion, contact, matching, negotiation, physical distribution, financing, risk taking

Direct Channel

No intermediaries between producer and consumer

Indirect Channel

One or more intermediaries involved

Channel Levels

Layers of intermediaries between producer and consumer

Channel Conflict

Disagreement among channel members

Vertical Conflict

Conflict between different levels of the same channel

Horizontal Conflict

Conflict between same-level channel members

Conventional Distribution Channel

Independent producers, wholesalers, retailers acting separately

Vertical Marketing System

Unified system of producers, wholesalers, retailers (corporate, contractual, administered)

Horizontal Marketing System

Companies at same level partner for opportunity

Intensive Distribution

Product sold in as many outlets as possible

Selective Distribution

Few carefully chosen distributors

Exclusive Distribution

Single distributor in a territory

Logistics

Managing flow of goods from origin to consumption

Inbound Logistics

Supplies moving into the company

Outbound Logistics

Goods moving to resellers/customers

Reverse Logistics

Returning, recycling, disposing products

Storage Warehouse

Stores goods long-term

Distribution Center

Automated facility that processes and ships goods

Just-In-Time (JIT)

Minimal inventory; stock arrives when needed

RFID

Technology tracking product location via smart tags

Multimodal Transportation

Using multiple transport methods together

Retailing

Selling goods/services directly to consumers

Shopper Marketing

Influencing buyers at point of purchase

Omnichannel Retailing

Integrated in-store, online, mobile shopping experience

Retailer Classification

Service level, product line, price, organization

Self-Service Retailer

Customer does most shopping work

Limited-Service Retailer

Provides some assistance

Full-Service Retailer

High assistance, higher prices

Shopping Center

Group of retail stores managed as one unit

Regional Center

Large mall with 50–100 stores

Community Center

15–50 stores with anchor stores

Neighborhood Center

Small strip malls (5–15 stores)

Power Center

Large open shopping area with big retailers

Lifestyle Center

Upscale open-air shopping area

Retail Trends

Uncertainty, tech advances, new formats, sustainability

Wholesaling

Selling goods for resale/business use

Wholesaler

Business focused on wholesaling

Wholesaler Functions

Selling, buying, bulk breaking, warehousing, transport, financing, risk, info

Promotion Mix

Advertising, personal selling, PR, sales promotion

Advertising

Paid nonpersonal promotion

Personal Selling

Direct interaction to sell/build relationships

Public Relations

Managing company image and public perception

Sales Promotion

Short-term incentives to boost sales

Integrated Marketing Communication

Coordinated messaging across all channels

Content Marketing

Engaging content across media platforms

Push Strategy

Promote product to intermediaries

Pull Strategy

Promote product to consumers to create demand

Informative Advertising

Educates about new product

Persuasive Advertising

Encourages switching brands

Reminder Advertising

Keeps product in consumers’ minds

Advertising Budget Methods

Affordable, percentage-of-sales, competitive-parity, objective-task

Reach

% of audience exposed

Frequency

Number of exposures

Impact

Quality of exposure

Advertising Effectiveness

Return on advertising investment

Publicity

Unpaid media coverage

Crisis Management

Handling harmful events to reputation

Personal Selling

Sales force engaging customers and building relationships

Salesperson

Represents company to customers

Boundary Spanner

Links company and customers

Sales Force Steps

Design, recruit, train, compensate, supervise, evaluate

Sales Force Structures

Territorial, product, customer

Salesperson Traits

Motivated, disciplined, relationship-focused

Recruitment Sources

Referrals, agencies, online, colleges, competitors

Call Plan

Schedule of customer interactions

Training Goals

Product knowledge, selling skills, customer relations

Compensation Plan

Salary, commission, expenses, benefits

Supervision Tools

Automation systems, time analysis, call plans

Sales Force Types

Inside, outside, hybrid, team selling

Selling Process Steps

Prospecting, approach, presentation, handling objections, closing, follow-up

Relational Selling Focus

Prospecting & follow-up

Transactional Selling Focus

Closing

Sales Promotions

Short-term incentives

Growth Reasons

Competition, declining ad efficiency, consumer thrift

Consumer Promotion Goal

Increase short-term buying

Trade Promotion Goal

Get retailers to stock/promote

Business Promotion Goal

Generate leads and sales

Trade Promotion Tools

Discounts, displays, free goods, contests

Business Promotion Tools

Trade shows, sales contests

Digital Marketing

Targeted engagement to build relationships and sales

Digital Marketing Model

Complete business model using digital channels

Consumer Personas

Detailed target customer profiles

Omnichannel Behavior

Using multiple channels in buying

Online Marketing

Marketing via internet platforms