MKT Final

Supply Chain

The interconnected system comprising all individuals, organizations, resources, activities, and technologies involved in the complete process of producing and delivering a product, from the initial sourcing of raw materials to the final sale to consumers.

Supply Chain Management (SCM)

The strategic coordination and oversight of all activities involved in the supply chain to enhance efficiency, reduce costs, and improve customer satisfaction by facilitating seamless flow of products, information, and finances between different stakeholders.

Upstream Activities

Processes that focus on the initial stages of production, including sourcing raw materials and components, as well as manufacturing operations that precede the distribution of finished products.

Downstream Activities

Actions and processes that occur after production, concentrating on delivering finished goods to consumers, involving logistics, distribution channels, and retail operations.

Channel of Distribution

The specific route or pathway a product follows from the producer to the final consumer, encompassing various intermediaries such as wholesalers, retailers, and distributors, that facilitate the transfer of goods to the market.

Contact Efficiency

A logistical strategy aimed at reducing the total number of transactions and interactions necessary for goods to progress smoothly from producers to consumers, thus streamlining operations and minimizing costs.

Intermediaries

Third-party entities that play a crucial role in the supply chain by assisting with the distribution and sale of goods, which includes a variety of stakeholders such as wholesalers, retailers, brokers, and agents.

Direct Channels

Sales channels where producers engage directly with consumers, eliminating intermediaries and often allowing for better customer relations and feedback.

Intensive Distribution

A distribution strategy aimed at maximizing product availability by placing products in as many outlets as possible, commonly used for frequently purchased goods or convenience items to ensure consumers can easily access them.

Selective Distribution

A focused distribution strategy where products are made available at a limited number of select outlets, enabling producers to maintain better control over their brand image and marketing efforts.

Exclusive Distribution

A distribution approach in which a product is sold through a specific retailer or a limited number of retailers in a particular geographic area, typically to create a sense of exclusivity and enhance brand prestige.

M-Commerce

A form of e-commerce that involves the purchasing of goods and services through mobile devices, highlighting the growing trend of consumers making transactions via smartphones and tablets.

Promotional Mix

A strategic blend of various promotional tools and methods, including advertising, public relations, sales promotions, personal selling, and social media initiatives, utilized to effectively communicate with the target audience.

Competitive Advantage

The unique advantages or differentiators that a company possesses over its competitors, which can stem from factors like higher quality products, lower pricing, superior service, or innovative features that appeal to consumers.

Push Strategy

A marketing approach that focuses on promoting products through the distribution channels, encouraging intermediaries like retailers or wholesalers to stock and sell the product, thereby ‘pushing’ it to the consumer market.

Pull Strategy

A consumer-oriented marketing strategy designed to entice consumers to actively seek out a product, often involving promotions and advertising that create demand, thereby ‘pulling’ the products through the distribution chain.

Consumer Sales Promotion

Short-term incentives and promotional activities aimed directly at end users, such as discounts, coupons, samples, and contests, designed to stimulate immediate sales and enhance customer engagement.

Trade Sales Promotion

Promotional activities and incentives targeted at channel partners, including retailers and wholesalers, with the intent of increasing product visibility and sales within the distribution network.

Rebates

Sales promotion strategies that offer consumers a partial refund following the purchase of a product, providing an incentive to buy without permanently lowering the listed price.

Price Elasticity

A measure used to describe how the quantity demanded of a good changes in response to a change in its price, indicating the sensitivity of consumers to price fluctuations.

Skimming Pricing

A pricing strategy where a product is introduced at a high price for early adopters before gradually lowering the price over time, aimed at maximizing revenue from segments willing to pay more.

Penetration Pricing

An initial low pricing strategy employed when launching a new product, intended to quickly attract a large customer base and gain market share before possibly increasing prices.

Dynamic Pricing

A flexible pricing technique that adjusts prices in real-time based on market demand, competition, and other external factors to optimize sales and profitability.

Markup Pricing

A pricing strategy where a predetermined percentage is added to the cost of producing a good to establish its selling price, ensuring that all costs and desired profit margins are covered.

Status Quo Pricing

A pricing policy where a business chooses to set its prices at the same level as key competitors, aiming to maintain market stability and avoid price wars.