Marketing Exam 12/18

Long-term commitments to other firms

Channel Decisions

Organizations that move products from producer to consumer

Marketing Channel

Independent producers

wholesalers

A channel that sells directly to consumers without intermediaries

Direct Marketing Channel

A distribution system where channel members act as one unified system

Vertical Marketing System (VMS)

A VMS where one firm owns multiple levels of the channel

Corporate VMS

A VMS where independent firms cooperate through contracts

Contractual VMS

A VMS coordinated through power and size rather than ownership

Administered VMS

Competitors at the same channel level working together

Horizontal Marketing System

Transportation

warehousing

Managing the flow of goods through the supply chain

Logistics

Managing stock levels efficiently

Inventory Control

Moving products within facilities and warehouses

Materials Handling

Handling orders from placement to delivery

Order Processing

Using multiple transportation methods for one shipment

Intermodal (Piggyback) Transportation

Retailer focused on a narrow product line

Specialty Store

Large retailer dominating a single category

Category Killer (Superstore)

Temporary or seasonal retail location

Pop-Up Store

Communication activities used to inform and persuade consumers

Promotion

Paid

nonpersonal communication through mass media

Activities that build a positive company image

Public Relations

Direct interaction between salesperson and customer

Personal Selling

Short-term incentives encouraging immediate purchase

Sales Promotion

Promotion aimed at channel members to stock products

Push Strategy

Promotion aimed at consumers to create demand

Pull Strategy

General type of media used

Media Class

Specific publication or program used

Media Vehicle

Reach multiplied by frequency

Message Weight (GRP)

Pattern of ad scheduling

Continuity

Advertising run steadily throughout the year

Continuous Scheduling

Advertising run in bursts with breaks

Flighting

Continuous advertising with heavier ads during peak times

Pulsing

Interactive marketing that produces direct

measurable responses

Percentage of people who respond to a marketing effort

Response Rate

Cost to generate one customer inquiry

Cost Per Inquiry (CPI)

Cost to generate one completed sale

Cost Per Order (CPO)

Dividing a market into specific groups

Segmentation

Selecting specific market segments to focus on

Targeting

Two-way communication between company and customer

Dialogue

Concerns regarding use of customer data

Privacy Issues

Online platforms allowing content creation and sharing

Social Media

Audience members who choose to engage with content

Self-Selecting Audience

Real-time responses from users

Audience Feedback

Direct interaction intended to make a sale

Personal Selling

Geographic or customer area assigned to a salesperson

Sales Territory

Identifying potential customers

Prospecting

Determining if a prospect is worth pursuing

Qualifying

Planning how to approach a prospect

Pre-Approach

First contact with the customer

Approach

Explaining product benefits to the customer

Presentation

Addressing customer concerns

Handling Objections

Testing customer readiness to buy

Trial Close

Asking for and securing the sale

Closing

Post-sale contact to ensure satisfaction

Follow-Up

Criteria for qualifying prospects: Money

Authority

Objection based on incorrect information

Misconception Objection

Objection based on doubt or disbelief

Skepticism Objection

Legitimate disadvantage such as price

Real Drawback

Activities designed to maintain a positive public image

Public Relations (PR)

Managing relationships with the media

Press Relations

Building goodwill in local communities

Community Relations

Communication with shareholders and investors

Investor Relations

Influencing government policy and legislation

Government Lobbying

News-style article submitted to media outlets

Press Release

Event organized to share information with media

Press Conference

Advertisement designed to resemble editorial content

Advertorial

Advertising focused on company or brand image

Corporate Advertising