Chapter 14 The distribution Mix: Marketing Channels – Flashcards
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distribution channel
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also known as marketing channel, is a system for conveying goods or services from producers to customers
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intermediaries
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or marketing intermediaries, are the people or firms that move products between producer and customers
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agents and brokers
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specialists who bring buyers and sellers together and help negotiate a transaction
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wholesalers
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also known as middle men, are intermediates who sell products to other businesses for resale to ultimate customers or to institutions and businesses for use in their operations
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retailers
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are intermediates who sell products directly to customers
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distribution mix
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the combination or distribution channels a company uses to get its products to customers
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distribution strategy
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the overall plan for moving products from producer to customers
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direct channel
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the distribution channel in which a producer sells directly to consumers
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utility
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want- satisfying ability
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market coverage
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product distribution among locations
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tensive distribution
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the product is distributed among as many locations as possible
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selective distribution
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a product is distributed in preferred locations, where it will get special attention
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exclusive distribution
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the product is distributed in only a few locations
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manufacturer-owned wholesaler
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a wholesale business that is owned and operated by a product's manufacturer
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manufacturer's branch office
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is an office that is owned and managed by a manufacturer that not only has offices for sales representatives but also carries an inventory from which the staff can fill orders
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manufacturer's sales office
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an office that is owned and managed by a manufacturer and that has offices for sales representatives who sell products that that are delivered at a later time
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full-service merchant wholesaler
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an independently owned firm that takes title to - becomes- owner of - the manufacturer's products but performs only selected services
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rack-jobber
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limited function wholesaler who furnishes products and display racks or shelves in retail or stores and shares profits with retailers
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cash-and- carry wholesaler
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a limited function that sells mainly to small retailers, who come to the wholesaler, pay cash for a product
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drop shipper
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is a limited function wholesaler who owns (has title to) the products, but does not have physical custody of them, rather the drop shipper takes order and has the producer ship the product directly to the customer
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nonstore retailers
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sells merchandise in ways other than through retail stores
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direct selling
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consists of face-to-face selling directly to customers in their homes or where they work
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multilevel marketing (MLM)
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in which independent businesspeople or distributors, sell products both on their own and by recruiting, motivating, supplying, and training others to sell those products, with the distributors' compensation being based on both their personal sales and the group's sales
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direct marketing
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is not done face to face but consists of selling directly to customers using mail or telephone
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direct mail marketing
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consists of mail promotions- letters, brochures, and pamphlets sent through the postal service to customers
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catalog marketing
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mail-order marketing, consists of mail customer catalogs, from which they may choose merchandise to be ordered via mail, telephone, or online
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telemarketing
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consists of using the telephone to sell products directly to customers
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video marketing
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marketing to consumers on television, either through special cable TV channels or through certain programs on regular TV channels
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online retailing
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also known as electronic retailing, the nonstore retailing of products directly to consumers using the internet
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physical distribution
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consists of all the activities required to move products from the manufacturer to the final buyer
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supply chain
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the sequence of suppliers that contribute to creating and delivering product, from raw materials to production to final buyers
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supply chain management
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the strategy of planning and coordinating the movement of materials and products along the supply chain, from raw materials to final buyers
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logistics
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consists of planning and implementing the details of moving raw materials, finished goods, and related information along the supply chain, from origin to points of consumption to meet customer requirements
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intermodal shipping
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combines use of several different modes of transportation
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containerization
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in which products are packaged into 20- or 40-foot long containers at the point of origin and retrieved from the containers at the point of destination
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freight forwarder
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an organization that bundles many small shipments together into a single large shipment for more cost-effective transportation
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warehousing
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the element of physical distribution that is concerned with storage of goods
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materials handling
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the physical handling of goods to and from and within warehouses
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storage warehouses
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provide storage of products for long periods of time
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distribution centers
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provide storage of products for short periods of time for collection and distribution elsewhere
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promotion mix
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the combination of tools that a company uses to promote a product, selecting from among four promotional tools; 1. advertising 2. public relations 3. personal selling 4. sales promotion
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integrated marketing communication
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combines all four promotional tools to execute a comprehensive, unified promotional strategy
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infomercials
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extended TV commercials ranging from 2 to 28.5 minutes that are devoted exclusively to promoting a product in considerable detail
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push promotional strategy
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aimed at wholesalers and retailers to encourage them to market the product to consumers
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pull promotional strategy
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aimed directly at consumers to get them to demand the product from retailers
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product placement
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in which the sellers of a product pay to have that product prominently placed in a TV show or film so that many people will get to see it
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advertising
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defined as paid nonpersonal communication by an identified sponsor using various media to inform an audience about a product
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brand advertising
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consists of presentations that promote specific brands to ultimate consumers
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institutional advertising
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consists of presentations that promote a favorable image for an organization
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advocacy advertising
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concerned with supporting a particular opinion about an issue
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public service advertising
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consists of presentations that promote a favorable image for an organization
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informational advertising
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provides consumers with straightforward knowledge about the features of the product offered
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reminder advertising
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triest to remind consumers of the existance of a product
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competitive advertising
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promotes a product by comparing it more favorably to rival products
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direct-action advertising
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attempts to stimulate an immediate or relatively intermediate, purchase of a product through such devices as one-day sales, one-time promotions, or announcements of special event
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fear-appeal advertising
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attempts to stimulate the purchase of a product by motivating consumers through fear of loss or harm
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advertising media
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the variety of communication methods for carrying a seller's message to prospect buyers
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media planning
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the process of choosing the exact kinds of media to use for an advertising campaign
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frequency
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the average number of times each member of the audience is exposed to an ad
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reach
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the number of people within a given population that your ad will reach at least once
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cost per thousand
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the cost of a particular medium charge to reach 1,000 people with an ad
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publicity
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defined as unpaid coverage by the mass media about a firm or its products
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press release
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a brief statement written in the form of a news story or a video program that is released to the mass media to try to get favorable publicity for a firm or its products
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public relations
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concerned with creating and maintaining a favorable image of the firm, its products, and its actions with the mass media, consumers, and the public at large
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press conference
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calling media representatives to a press briefing at which they announce new information
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personal selling
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is face-to-face communication and promotion to influence customers to buy goods and services
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creative selling
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is the selling process in which salespeople determine customer needs, then explain their product's benefits to try to persuade buyers to buy the product
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order processing
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consists of receiving customer orders and seeing that they are handled correctly and that the product is delivered
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sales support
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consists not of selling products but of facilitating the sale by providing the sale by providing supportive services
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prospecting
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the process of identifying potential customers who are called prospects
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referral sales prospecting technique
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consists of asking satisfied customers to provide names of potential customers or to contract them on behalf of the salesperson
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endless-chain sales prospecting technique
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consists of asking each sales prospect to provide the salesperson with some names of other prospects who might be interested in the product
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cold-call sales prospecting technique
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consists of calling on prospects with whom you have had no previous contact and to whom you do not have any kind of introduction
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qualifying
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determining if the prospect has the authority to buy and the ability to pay
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canned presentation
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uses a fixed, memorized selling approach to present the product
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need-satisfaction presentation
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consists of determining customer needs and then tailoring your presentation to address those needs
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trial close
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a question or statement that tests the prospect's willingness to buy
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actual close
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the salesperson concludes the presentation by asking the prospect to purchase the product
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sales promotion
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defined as short-term marketing incentives to stimulate 1. dealer interest 2. consumer buying
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trade promotion
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business to business sales promotion
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trade show
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a gathering of manufacturers in the same industry who display their products to their distributors and dealers
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word of mouth marketing
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a promotional technique that relies on people telling others about products they've purchased or firms they've used
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buzz marketing
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using high-profile entertainment or news to get people to talk about their product
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viral marketing
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in which companies pay people to promote their products to others
