Channels of Distribution, Promotion, Digital Marketing, and Personal Selling

Vocabulary practice flashcards covering distribution channel structures, promotion models, digital and programmatic advertising mechanisms, sales promotion methods, and personal selling processes.

Distribution Channels

The different ways products get from the manufacturer (the company that makes the product) to the final customer.

Direct Distribution

A distribution method where the manufacturer sells directly to the customer without any middlemen.

Indirect Distribution

A distribution method where the manufacturer uses other businesses, such as wholesalers and retailers, to get products to customers.

Transactional Functions (Distribution)

Channel activities that involve interacting and communicating with customers, including contacting buyers, communicating product information, and educating buyers.

Logistical Functions (Distribution)

Channel activities that involve physically handling and moving products, including transportation, storage, sorting, accumulating, and repackaging.

Facilitation (Distribution)

Channel activities that support and simplify buying and selling, such as collecting market research and providing financing.

Agents and Brokers

Intermediaries that help connect manufacturers and wholesalers or bring buyers and sellers together, but do not take title to the products.

Taking Title

Legally owning a product as it moves through a distribution channel.

Dual Distribution (Hybrid Distribution)

A strategy where a manufacturer uses more than one distribution channel to sell its products.

Channel Conflict

A situation where intermediaries, such as distributors, feel that the manufacturer is competing against them for the same customers.

Exclusive Distribution

A market coverage strategy where a company sells its products through very few selected retailers, commonly used for luxury or specialty products to maintain control.

Selective Distribution

A market coverage strategy where a company sells its products through a carefully selected group of retailers, balancing product availability and control.

Intensive Distribution

A market coverage strategy where a company attempts to make its products available in as many locations as possible to achieve maximum availability.

Push Strategy

A promotional strategy where the manufacturer provides incentives directly to channel members (retailers, wholesalers, and distributors) to encourage them to sell more products.

Pull Strategy

A promotional strategy where the manufacturer directs incentives and advertising directly to consumers to build interest and encourage purchases.

Promotion

A part of the marketing mix designed to inform, persuade, and remind the target market about a company's products or services.

Guerrilla Marketing

A promotional approach that uses creative, unusual, and unexpected marketing techniques to capture customer attention.

Adoption Process

The six-step sequence a customer goes through before accepting and purchasing a new product: Awareness, Interest, Evaluation, Trial, Decision, and Confirmation.

AIDA Model

A four-stage promotional framework that moves customers toward taking action: Attention, Interest, Desire, and Action.

Institutional Advertising

Advertising designed to promote a company's overall image and reputation rather than focusing on a single specific product.

Advocacy Ads

A form of institutional advertising that aims to improve corporate credibility by supporting a specific cause or position.

Pioneering Advertising

Advertising that creates primary demand for an entire new product category by introducing it to unfamiliar customers.

Competitive Advertising

Advertising aimed at influencing demand for a specific brand over its direct competitors.

Comparative Advertising

Advertising that directly compares two or more named or identifiable brands on specific attributes or features.

Continuity Scheduling

An advertising schedule where ads run steadily and consistently over a set period without interruption.

Flighting Scheduling

An advertising schedule where ads run heavily during selected periods and cease completely for periods in between.

Pulsing Scheduling

An advertising schedule that combines steady, continuous background advertising with periodic bursts of heavier advertising.

Unduplicated Reach

The number of different people or households exposed to an advertisement or program at least once, counting each person or household only once.

Program Rating (Nielsen)

The percentage of all households with a television that watched a particular program, calculated as: $\text{Households Reached} = \text{Program Rating} \times \text{TV Households}$.

Share (Television)

The percentage of television-owning households with their television sets turned on that were watching a particular program.

Search Engine Optimization (SEO)

The process of improving a website across content, technical performance, and authority to rank higher in unpaid, organic search results.

High-Intent Traffic

Website visitors originating from search queries where the user is actively seeking information to solve a problem or make a purchase.

Banner Advertising

Rectangular image or text advertisements placed in specific areas of a webpage or mobile application to build awareness and generate clicks.

Click-Through Rate (CTR)

The percentage of ad impressions that directly result in a user click.

Retargeting

A display advertising method that serves ads specifically to users who have previously visited a website or viewed a specific product.

Contextual Advertising

A method where advertisements are matched automatically to the specific topic or subject matter of the webpage content being viewed.

Native Advertising

Paid sponsored content designed to blend visually and structurally into the layout and content of the platform hosting it.

Search Engine Marketing (SEM)

Paid search advertising where businesses bid on specific keywords so their text advertisements appear on search engine result pages.

Ad Rank

The formula-based value used to determine a paid ad's placement on search result pages: $\text{Ad Rank} = \text{Bid} \times \text{Quality}$.

Programmatic Advertising

The automated buying and selling of digital display advertising inventory in real-time auctions using software.

Demand-Side Platform (DSP)

Software used by advertisers to automate the purchasing of digital ad space and place real-time bids for target audiences.

Supply-Side Platform (SSP)

Software used by digital publishers to manage, sell, and monetize available advertising space on their websites or apps.

Ad Exchange

The digital marketplace that connects DSPs and SSPs to run real-time bidding auctions for available ad placements.

Trade Sales Promotion

Promotional activities directed at distribution intermediaries, such as wholesalers and retailers, to encourage them to carry and sell more products.

Consumer Sales Promotion

Short-term promotional incentives aimed directly at the end customer to encourage immediate product purchase.

Trade Allowance

A price reduction offered by manufacturers to intermediaries such as wholesalers and retailers, often for ordering specific quantities.

Push Money

Financial bonuses or incentives paid directly to channel intermediaries or retail salespeople to encourage aggressive selling of specific products.

Coupon

A promotional certificate providing an immediate price reduction to a consumer at the point of purchase.

Rebate

A cash refund given to a customer after purchasing a product upon submitting proof of purchase.

Premium

An extra item offered to consumers for free or at a low cost, usually in exchange for proof of purchasing the promoted product.

Loyalty Marketing Program

A promotional initiative designed to build mutually beneficial, long-term relationships between a brand and its key customers through ongoing incentives.

Frequent-Buyer Program

A specific loyalty program structure that rewards customers for making repeated purchases of a company's product or service over time.

Point-of-Purchase (POP) Display

A promotional merchandise display set up inside a retail store to stimulate shopper interest and encourage impulse buying.

Impulse Buying

An unplanned purchasing decision made by a consumer while inside a retail environment.

Personal Selling

Direct, one-on-one communication between a salesperson and a potential customer to present, demonstrate, and complete the sale of a product or service.

Transactional Selling

A sales approach that focuses on short-term results, closing individual sales quickly, standardized presentations, and win-lose outcomes.

Relationship Selling (Consultative Selling)

A sales practice focused on building and maintaining long-term customer relationships and high trust through customized solutions and win-win outcomes.

Lead Generation (Prospecting)

The first step in the selling process, consisting of identifying potential businesses or individuals who are likely to buy the firm's products.

Cold Calling

Contacting prospective buyers without any prior contact, knowledge of their specific needs, or verification of their financial situation.

Qualifying Leads

Evaluating prospective buyers based on three criteria: recognized need, buying power, and receptivity and accessibility.

Preapproach

The research, planning, and preparation a salesperson conducts regarding a prospect's business and needs prior to making initial contact.

Needs Assessment

A consultative discovery process where the salesperson identifies the customer's specific problems, requirements, and available options.

Sales Proposal

A formal written document or presentation outlining how a company's product or service will specifically satisfy the buyer's needs.

Negotiation (Selling Process)

A dialogue during the closing phase where the salesperson and buyer offer concessions to agree on mutually acceptable terms without relying solely on price cuts.

Sales Follow-Up

The final stage of the personal selling process, ensuring products arrive on schedule, operate as promised, and that the buyer's staff is properly supported.