mkt291 chapter 17 – Flashcards

the two way flow of communication between a buyer and seller often in a face to face encounter, designed to influence a person's or group's purchase decision

planning the selling program and implementing and evaluating the personal selling effort of firm

serves three major roles in a firm's overall marketing effort 1. salespeople are critical link between firm and its customers...salespeople match company interests with customer needs to satisfy both parties in the exchange process 2. salespeople are the company in the consumer's eyes 3. play dominant role in a firm's marketing strategy

the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time

individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users make possible the flow of goods from a producer through intermediaries to a buyer

intermediaries make possible the flow of products to ultimate consumers by performing three basic functions: -transactional function-buy and sell goods or services. an intermediary such as a wholesaler also performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales, if stock isn't sold intermediary suffers risk -logistical functions-preparing and getting a product to payers, gathering, sorting and dispersing products -facilitating functions-functions that make a transaction easier for buyers

have the goods and services you want, when you want them, where you want them, and in the form you want them in marketing channels help create value for consumers through 4 utilities:time, place, form, and possession -time utility-refers to having a product or service when you want it -place utility-product or service available where consumers want it -form utility-enchancing a product or service to make it more appealing to buyers -possession utility-efforts by intermediaries to help buyers take possession of a product or service

independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone three variations: -wholesaler sponsored voluntary chains-involve a wholesaler that develops a contractual relationship with small independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts -retailer-sponsored cooperatives-small independent retailers form an organization that operates a wholesale facility cooperatively. member retailers then concentrate their buying power through the wholesaler and plan collaborative promotional and pricing activities -franchising-contractual agreement between a parent company and an individual or firm that allows the franchisee to operate a certain type of business under an established name and according to specific rules

manufacturer sponsored retail franchise systems-manufacturer licenses dealers to sell product subject to various sales and service conditions manufacturer sponsored wholesale franchise systems-soft drink industry, pepsi licenses wholesalers that purchase concentrate from pepsi and then carbonate, bottle, promote, and distribute its products to retailers and restaurants service sponsored retail franchise systems-provided by firms that have designed a unique approach for performing a service and wish to profit by selling franchise to others(Holiday Inn, McDonalds) service sponsored franchise systems-franchisors license individuals or firms to dispense a service under a trade name and specific guidelines

achieve coordination at successive stages of production and distribution by size and influence of one channel member rather than through ownership walmart can obtain cooperation from manufacturers in terms of product's specifications, price levels, and promotional support

consider 3 questions when chewing a marketing channel and intermediaries 1. which channel and intermediaries will provide the best coverage of the target market? 2. which channel and intermediaries will best satisfy the buying requirements of the target market? 3. which channel and intermediaries will be most profitable?

achieving the best coverage of the target market requires attention to the density(number of stores in a geographical area) and type of intermediaries to be used at the retail level of distribution three degrees of distributions density exist: intensive, exclusive, and selective

when a firm tries to place its products or services in as many outlets as possible

when only one retail outlet in a specific geographical area carries the firm's products

when a firm selects a few retail outlets in a specific geographical area to carry its products

a second consideration in channel choice is gaining access to channels and intermediaries that satisfy at least some of the interests buyers might want fulfilled when they purchase a firm's products or services these interests fall into four broad categories: (1) information (2) convenience (3) variety (4) pre or postsale services

important requirement when buyers have limited knowledge or desire specific data about a product or service intermediaries communicate with buyers through in store displays, demonstrations, and personal selling

buyers: proximity or driving time to a retail outlet consumer: minimum time and hassle

reflects buyers' interest in having numerous competing and complementary items from which to choose

important buying requirement for products such as large household appliances that require delivery, installation, and credit

the third consideration is choosing a channel is profitability which is determined by the margins earned for each channel member and for the channel as a whole channel cost is the critical dimensions of profitability: distribution, advertising, and selling expenses associated with different types of marketing channels the extent to which channel members share these costs determines the margins received by each member and by the channel as a whole

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals -disintermediation -disagreements over how profit margins are distributed among channel members -manufacturers believe wholesalers or retailers are not giving their products adequate attention

a channel conflict that arises when a channel member bypasses another member and sells or buys products direct

the objective of logistics management in a supply chain is to minimize total logistics costs while delivering the appropriate level of customer service

expenses associates with transportation, materials, handling, and warehousing, inventory, stock outs, order processing, and return products handling

ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience time-order cycle or replenishment time for an item(time between the ordering an item and when it is received and ready for use or sale dependability-consistency of replenishment communication-two way link between buyers and seller that helps in monitoring service and anticipating future needs convenience-there should be a minimum of effort on the part of the buyer in doing business with the seller

an inventory management system whereby the supplier determines the product amount and assortment a customer(such as retailer) needs and automatically delivers the appropriate items