Marketing Channels, Strategies, and Promotional Techniques: Key Concepts and Definitions

A channel of distribution refers to:

The combination of institutions through which a seller markets products

Marketing intermediaries exist primarily because they:

Perform distribution functions more efficiently

The main role of intermediaries is to:

Bring supply and demand together efficiently

Selling directly to final consumers without intermediaries is called:

Direct marketing

Channels that include wholesalers or retailers are known as:

Indirect channels

Buying, selling, and risk taking are classified as:

Transactional functions

Sorting, storing, and transporting are part of which function?

Logistical function

Financing and grading belong to the:

Facilitating function

Customer, product, and competitor factors are examples of:

General channel selection considerations

Degree of control and distribution cost are examples of:

Specific channel considerations

Intensive distribution is most appropriate when:

Maximum market exposure is desired

Selective distribution limits intermediaries to those that are:

Most effective in a given area

Exclusive distribution gives intermediaries:

Exclusive rights within a territory

Increased channel directness results in:

Increased manufacturer control

Total distribution cost includes all except:

Advertising copywriting costs

Inventory carrying costs include obsolescence and:

Insurance

Channel flexibility refers to the ability to:

Adapt to changing market conditions

Relationship marketing focuses on:

Long-term trusted relationships

Vertical marketing systems emphasize:

Cooperation among channel members

A contractual vertical marketing system involves:

Formal agreements between independent firms

A retailer cooperative is an example of:

Contractual vertical marketing system

Corporate vertical marketing systems are characterized by:

Single ownership of multiple channel levels

Backward integration occurs when:

Retailers purchase wholesalers or manufacturers

Wholesalers differ from agents because wholesalers:

Take ownership of goods

Category killers are retailers that:

Dominate one category with deep assortments

Selling through catalogs, vending machines, or online is called:

Nonstore retailing

Multichannel marketing involves selling products:

In stores, catalogs, and online

The primary objective of marketing communications is to:

Influence buyer behavior

Integrated marketing communications seeks to:

Coordinate all promotional messages

Advertising is best defined as:

Paid nonpersonal communication through mass media

Offering coupons or rebates is an example of:

Sales promotion

Public relations differs from advertising because it is:

Typically unpaid

Direct marketing communicates with customers through:

Databases and direct media

Personal selling is unique because it is:

Face-to-face communication

Push strategies focus promotional efforts on:

Channel members

Pull strategies are aimed primarily at:

Consumers

Trade promotions are directed at:

Retailers and wholesalers

Consumer promotions are designed to:

Encourage product trial

Sales promotions are weak at building:

Long-term brand loyalty

Frequency marketing programs aim to:

Reward repeat purchases

Cost per thousand (CPM) measures:

Cost of reaching 1,000 people

Reach refers to:

Number of consumers exposed to an ad

Average frequency measures:

How often consumers see an ad

A disadvantage of CPM is its failure to consider:

Message effectiveness

Encoding refers to:

Translating ideas into advertising messages

Sponsorships are considered a form of:

Public relations

Public service announcements are often used by:

Nonprofit organizations

Most new product introductions:

Do not succeed

A major reason new products fail is:

Lack of differentiation

Poor perceived value results from:

Poor price-quality relationship

New-to-the-firm products are best described as:

New category entries

Bud Light line extensions are an example of:

Additions to product lines

Aspirin repositioned as a blood thinner illustrates:

Repositioning

Market penetration focuses on:

Increasing share of existing markets

Diversification involves:

New products for new markets

The purpose of policy-making criteria is to:

Guide new product decisions

Idea generation is important because success depends on:

Idea quality

Out-rotation helps generate ideas by:

Exposing employees to customers

Customer advisory boards are used during:

Idea generation

Idea screening evaluates:

Strategic, market, and internal risk

Market risk refers to the possibility that a product:

Will not meet customer needs

Strategic alliances help firms:

Share risk and resources

Breakeven analysis is used to estimate:

Unit manufacturing costs

Assigning responsibility for the product occurs in:

Project planning

Skunkworks teams operate:

Privately and independently

Product development is when:

Fixed costs are incurred

Test marketing is best described as:

A controlled market experiment

Commercialization involves:

Full-scale product launch

A warranty promises:

Compensation if the product fails

A guarantee assures that a product:

Performs as represented

Personal selling involves:

Two-way communication

Field selling is preferred when products are:

New and complex

Prospects differ from leads because prospects:

Are qualified

Random lead generation relies on:

Cold contacts

Selected-lead generation comes from:

Customer referrals

Planning the sales call requires knowledge of:

Products, competitors, and prospects

Objections from customers indicate they:

Need more information

Aftermarketing focuses on:

Existing customers

Functional relationships emphasize:

Problem-solving collaboration

Strategic partnerships require:

Long-term commitment

Missionary salespeople primarily:

Promote products

Sales forecasts are used for all except:

Designing advertisements

The sales force composite method uses input from:

Salespeople

Sales quotas are important because they:

Measure performance

Commission-based compensation is typically tied to:

Sales volume