Marketing Exam 2 Set 8: SALES PROMOTION, CHANNELS, SUPPLY CHAIN, AND PLACE

What is sales promotion?

Short-term incentives to encourage purchase or sale of a product or service.

Major sales promotion tools?

Coupons, rebates, premiums, samples, contests/sweepstakes, price packs, point-of-purchase displays, trade shows, trade allowances.

When is sales promotion useful?

Attracting new customers, rewarding loyal ones, boosting short-term sales, clearing inventory, encouraging trial.

What is a marketing channel?

A set of interdependent organizations that make a product available to consumers or business users.

How do distributors affect the number of exchanges?

They reduce it. Example: 4 producers and 4 customers need 4 × 4 = 16 contacts directly, but only if 4 + 4 = 8 with a distributor.

What is a channel level?

Each layer of intermediaries that brings the product closer to the final buyer.

Direct vs Indirect channel?

Direct has no intermediaries; indirect has one or more.

What is channel conflict?

Disagreement among channel members over goals, roles, or rewards.

Horizontal vs Vertical conflict?

Horizontal is between firms at the same level; vertical is between different levels.

What is supply chain?

The series of linked suppliers and customers from raw materials to the final consumer.

What is logistics?

Planning, implementing, and controlling the flow of goods, services, and information from origin to consumption.

Why does place matter, especially for retail?

It affects cost, customer access, and brand image, and retail depends heavily on convenient location.