Mareting

Marketing Channel

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

Agent or Broker

any intermediary with legal authority to act on behalf of the manufacturer

Wholesaler

a marketing intermediary that sells to other organizations

Transactional Functions

buying, selling, risk taking

Logistical Functions

assorting, storing, sorting, transporting

Facilitating Functions

researching, financing

Direct Channel

a distribution channel in which producers sell directly to consumers

Indirect Channel

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

Direct to Consumer Marketing Channels

allow 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

Vertical Marketing Systems

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

Corporate Vertical Marketing System

a system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios

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Intensive Distribution

stocking the product in as many outlets as possible

Exclusive Distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

Selective Distribution

a form of distribution achieved by screening dealers to eliminate all but a few in any single area

Buyer Requirements

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

Channel Conflict

disagreements among marketing channel members on goals, roles, and rewards - who should do what and for what rewards

Vertical Conflict

a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer

Disintermediation

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

Horizontal Conflict

a channel conflict that occurs among channel members on the same level

Channel Captain

a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts

Logistics

the management of the details of an operation

Supply Chain

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

Supply Chain Management

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

Consumer Utilities

time, place, form, possession

Form of Ownership

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

Level of Service

used to describe the degree of service provided to the customer

Merchandise Line

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

Independent Retailer

a firm that operates only one retail outlet

Corporate Chain

a firm that owns and manages more than one store—and often it's many

Franchising

selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits

Self Service

requires that customers perform many functions during the purchase process

Limited Service

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

Full Service

provide many services to their customers

Depth of Product Line

the store carries a large assortment of each item

Breadth of Product Line

the variety of different items a store carries

Supercenter

a large retailer that stocks and sells a wide variety of merchandise including groceries, clothing, household goods, and other general merchandise

Automatic Vending

the use of machines to offer goods for sale

Direct Mail and Catalogs

store to your door; eliminates the cost of a store and clerks and improves marketing efficiency through segmentation and targeting

Television Home Shopping

a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card

Online Retailing

retailing that makes products available to buyers through computer connections

Telemarketing

using the telephone to sell directly to customers

Direct Selling

marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace

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

a combination of the six Ps—product, place, promotion, price, presentation, and personnel—to sell goods and services to the ultimate consumer

Markup

the amount added to the cost of merchandise to establish the selling price

Markdown

a reduction of selling price below the original selling price

Everyday Low Pricing (EDLP)

setting prices lower than competitors and then not having any special sales

Off-Price Retailing

selling brand-name merchandise at lower than regular prices

Retail Image

the way a firm is perceived by its customers

Shopper Marketing

focusing the entire marketing process on turning shoppers into buyers as they approach the point of sale, whether during in-store, online, or mobile shopping

Category Management

a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers

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

Marketplace

any location or medium used to conduct an exchange

Digital Marketplace

a digital retail site made up of small, independent sellers

Interactive Marketing

training service employees in the fine art of interacting with customers to satisfy their needs

Choiceboards

an interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options

Personalization

the consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences

Permission Marketing

method of marketing that asks consumers to give their permission to voluntarily accept online advertising and e-mail

Customer Experience

the internal response that customers have to all aspects of an organization and its offering

Eight-Second Rule

a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds

Customerization

the growing practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer

Viral Marketing

the digital version of word-of-mouth marketing: videos, ads, and other marketing content that is so infectious that customers will seek it out or pass it along to friends

Cookies

computer program, installed on hard drives, that provides identifying information

Behavioral Targeting

using online consumer tracking data to target advertisements and marketing offers to specific consumers

Social Commerce

a subset of e-commerce that involves the interaction and user contribution aspects of social online media to assist online buying and selling of products and services

Cross-Channel Consumer

an online consumer who shops online but buys offline, or shops offline but buys online

Showrooming

the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item

Webrooming

the practice of examining products online and then buying them in a store

Marketing Attribution

the practice and techniques used to credit or value a particular channel and consumer touchpoint

Promotional Mix

the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization's overall goals

Advertising

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

Public Relations

the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance

Sales Promotion

marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness

Direct Marketing

sales and promotional techniques that deliver promotional materials individually

Product Life Cycle and Promotion Strategy

introduction, growth, maturity, decline

Product Characteristics

complexity, compatibility, relative advantage, observability, trialability

Stages of the Consumer Journey

prepurchase, purchase, postpurchase

Push Strategy

a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise

Pull Strategy

a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel

Promotion Decision Process

planning, implementation, evaluation

Percentage of Sales Budgeting

allocating funds to promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold

Competitive Parity Budgeting

matching the competitor's absolute level of spending or the proportion per point of market share

All-You-Can-Afford Budgeting

money is allocated to promotion only after all other budget items are covered

Objective and Task Budgeting

involves allocating funds to promotion whereby the company: (1) determines its promotion objectives; (2) outlines the tasks to accomplish these objectives; and (3) determines the promotion cost of performing these tasks

Direct Orders

the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction

Lead Generation

the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information

Traffic Generation

the outcome of a direct marketing offer designed to motivate people to visit a business

Product Advertising

a form of advertising that touts the benefits of a specific good or service

Institutional Advertisements

advertisements designed to build goodwill or an image for an organization, rather than promote a specific product or service

Message Content

an appeal or theme that will produce the desired response

Message Creativity

determined by both the originality and appropriateness of the message used to inform and persuade, including visual or auditory presentation

Message Appeals

sex, humor, fear, violence

Reach

the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

Frequency

the number of times an individual is exposed to a given message during a specific period

Gross Rating Points (GRPs)

a measure used for comparing the effectiveness of different media vehicles: average reach x frequency

Cost Per Thousand (CPM)

the cost of reaching 1,000 individuals or households with the advertising message in a given medium

Media Alternatives Pros and Cons

Pros: freedom to speak, diverse perspectives, creative expression, independence from corporations; Cons: lack of regulation, limited reach, digital divide, bias