Marketing and Promotion

Flashcards from lecture notes

Distribution Mix

Combination of distribution channels by which a firm gets its products to end users

Distribution Channel

Network of interdependent companies through which a product passes from producer to end user

Direct Channel

Distribution channel in which a product travels from producer to consumer without intermediaries

Intermediary

Individual or firm that helps to distribute a product

Wholesaler

Intermediary who sells products to other businesses for resale to final consumers

Retailer

Intermediaries who sell products directly to consumers

Sales Agent

Independent intermediary who generally deals in the related product lines of a few producers and forms long-term relationships to represent those producers and meet the needs of many customers

Broker

Independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be

Intensive Distribution

A product is distributed through as many channels as possible

Exclusive Distribution

A manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers and retailers in a given geographic area

Selective Distribution

A company uses only wholesalers and retailers who give special attention in sales efforts to specific products

Channel Conflict

Conflict arising when the members of a distribution channel disagree over the roles they should play or the rewards they should receive

Channel Captain

Channel member who is most powerful in determining the roles and rewards of other members

Merchant Wholesalers

Independent wholesaler who takes legal possession of goods produced by a variety of manufacturers and then resells them to other organizations

Full-Service Merchant Wholesalers

Merchant wholesaler that provides credit, marketing, and merchandising services in addition to traditional buying and selling services

Limited-Function Merchant Wholesalers

Merchant wholesaler that provides a limited range of services

Drop Shippers

Limited-function merchant wholesaler that receives customer orders, negotiates with producers, takes title to goods, and arranges for shipment to customers

E-Intermediary

Internet distribution channel member that assists in delivering products to customers or that collects information about various sellers to be presented to consumers, or they help deliver online products to buyers

Syndicated Selling

E-commerce practice whereby a website offers other websites commissions for referring customers

Shopping Agent (e-agent)

E-intermediary in the Internet distribution channel that assists users in finding products and prices, but does not take possession of products

Department Stores

Large product-line retailer characterized by organization into specialized departments

Supermarket

Large product-line retailer offering a variety of food and food-related items in specialized departments

Specialty Store

Retail store carrying one product line or category of related products

Bargain Retailer

Retailer carrying a wide range of products at bargain prices

Discount House

Generates large sales volume by offering goods at substantial price reductions

Catalog Showroom

Customers place orders for catalog items to be picked up at on-premise warehouse

Factory Outlet

Owned by the manufacturer whose products it sells

Wholesale Club

Offers large discounts on brand-name merchandise to customers who have paid annual membership fees

Convenience store

Retail store offering easy accessibility extended hours. and fast service

Vending Machine

Card-and-coin-operated machines

Direct-Response Retailing

Form of nonstore retailing in which firms directly interact with customers to inform them of products and to receive sales orders

Direct Selling

Typified by door-by-door sales

Online Retailing

Nonstore retailing in which information about the seller's products and services is connected to consumers' computers, allowing consumers to receive the information and purchase the products in the home

Electric Storefront

Commercial website at which customers gather information about products and buying opportunities, place orders, and pay for purchases

Cybermail

Collection of virtual storefronts (business websites) representing a variety of products and product lines on the Internet

Video Retailing

Nonstore retailing to consumers via home television

Warehousing

Physical distribution operation concerned with the storage of goods

Private Warehousing

Warehouse owned by and providing storage for a single company

Public Warehousing

Independently owned and operated warehouse that stores goods for many firms

Promotion

Aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product

Positioning

Process of establishing an identifiable product image in the minds of consumers

Promotional Mix

Combination of tools used to promote a product

Pull Strategy

Designed to appeal directly to consumers who will demand a product from retailers

Push Strategy

Designed to encourage wholesalers or retailers to market products to consumers

Advertising

Promotional tools consisting of paid, non-personal communication used by an identified sponsor to inform an audience about a product

Advertising Media

Variety of communication devices for carrying a seller's message to potential customers

Media Mix

Combination of advertising media chosen to carry a message about a product

Personal Selling

Promotional tool in which a salesperson communicates one-on-one with potential customers

Order Processing

Receives orders and see to their handling and delivery

Creative Selling

Try to persuade buyers to purchase products by providing information about their benefits

Missionary Selling

Promote their firms and products rather than try to close sales

Prospecting

The salesperson identify potential customers

Qualifying

Salespeople determine whether prospects have the authority to buy and ability to pay

Closing

Salesperson ask prospective customers to buy products

Sales Promotion

Short-term promotional activity designed to encourage consumer buying, industrial sales, or cooperation from distributors

Coupon

Certificate is issued entitling the buyer to a reduced price

Samples

Free giveaway

Contests

Prizes and reward for consumers, distributors, and sale representatives

Premium

Offers of free or reduced-price items are used to stimulate purchases in return for buying a product

Loyalty Program

Frequent customers are rewarded for making repeat purchases

Point-of-Sale (POS) Display

Product displays are located in certain areas to stimulate purchase or to provide information on a product

Trade Show

Various members of an industry gather to display, demonstrate, and sell product

Direct (or Interactive) Marketing

One-on-one non-personal selling by non-store retailers and B2B sellers using direct contact with prospective customers, especially via the Internet

Permission Marketing

Form of e-mail where the consumers give a company permission to contact them

Publicity

Promotional tool in which information about a company, a product, or an event is transmitted by the general mass media to attract public attention

Public Relations

Company-influenced information directed at building goodwill with the public or dealing with unfavorable events