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270 Cards in this Set

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  • Back
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Accumulating
collecting products from many small producers.
Administered channel systems
various channel members informally agree to cooperate with each other.
Assorting
putting together a variety of products to give a target market what it wants.
Bulk-breaking
dividing larger quantities into smaller quantities as products get closer to the final market.
Channel captain
a manager who helps direct the activities of a whole channel and tries to avoid--or solve--channel conflicts.
Channel of distribution
any series of firms or individuals who participate in the flow of products from producer to final user or consumer.
Contractual channel systems
various channel members agree by contract to cooperate with each other.
Direct marketing
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.
Discrepancy of assortment
the difference between the lines a typical producer makes and the assortment final consumers or users want.
Discrepancy of quantity
the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.
Dual distribution
when a producer uses several competing channels to reach the same target market--perhaps using several middlemen in addition to selling directly (sometimes call multichannel distribution).
Exclusive distribution
selling through only one middleman in a particular geographic area.
Ideal market exposure
when a product is available widely enough to satisfy target customers' needs but not exceed them.
Intensive distribution
selling a product through all responsible and suitable wholesalers or retailers who will stock and/or sell the product.
Multichannel distribution
when a producer uses several competing channels to reach the same target market--perhaps using several middlemen in addition to selling directly (sometimes called dual distribution).
Place
making goods and services available in the right quantities and locations--when customers want them.
Regrouping activities
adjusting the quantities and/or assortments of products handled at each level in a channel of distribution.
Reverse channels
channels used to retrieve products that customers no longer want.
Selective distribution
selling through only those middlemen who will give the product special attention.
Sorting
separating products into grades and qualities desired by different target markets.
Traditional channel systems
a channel in which the various channel members make little or no effort to cooperate with each other.
Vertical integration
acquiring firms at different levels of channel activity.
Vertical marketing systems
channel systems in which the whole channel focuses on the same target market at the end of the channel.
Chain of supply
the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers.
Containerization
grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination.
Customer service level
how rapidly and dependably a firm can deliver what customers want.
Distribution center
a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.
Electronic data interchange (EDI)
an approach that puts information in a standardized format easily shared between different computer systems.
Freight forwarders
transportation wholesalers who combine the small shipments of many shippers into more economical shipping quantities.
Inventory
the amount of goods being stored.
Logistics
the transporting, storing, and handling of goods to match target customers' needs with a firm's marketing mix--both within individual firms and along a channel of distribution (i.e., another name for physical distribution).
Physical distribution (PD)
the transporting, storing, and handling of goods to match target customers' needs with a firm's marketing mix--both within individual firms and along a channel of distribution.
Physical distribution (PD) concept
all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system which seeks to minimize the cost of distribution for a given customer service level.
Piggyback service
loading truck trailers or flat-bed trailers carrying containers on railcars to provide both speed and flexibility.
Private warehouses
storing facilities owned or leased by companies for their own use.
Public warehouses
independent storing facilities.
Storing
the marketing function of holding goods.
Total cost approach
evaluating each possible PD system and identifying all of the costs of each alternative.
Transporting
the marketing function of moving goods.
Agent middlemen
wholesalers who do not own (take title to) the products they sell.
Auction companies
agent middlemen who provide a place where buyers and sellers can come together and complete a transaction.
Automatic vending
selling and delivering products through vending machines.
Brokers
agent middlemen who specialize in bringing buyers and sellers together.
Cash-and-carry wholesalers
like service wholesalers, except that the customer must pay cash.
Catalog wholesalers
sell out of catalogs that may be distributed widely to smaller industrial customers or retailers who might not be called on by other middlemen.
Combination export manager
a blend of manufacturers' agent and selling agent--handling the entire export function for several producers of similar but noncompeting lines.
Convenience (food) stores
a convenience-oriented variation of the conventional limited-line food stores.
Cooperative chains
retailer-sponsored groups, formed by independent retailers, to run their own buying organizations and conduct joint promotion efforts.
Corporate chain
a firm that owns and manages more than one store--and often it's many.
Department stores
larger stores that are organized into many separate departments and offer many product lines.
Discount houses
stores that sell hard goods (cameras, TVs, appliances) at substantial price cuts to customers who go to discounter's low-rent store, pay cash, and take care of any service or repair problems themselves.
Door-to-door selling
going directly to the consumer's home.
Drop-shippers
wholesalers who own (take title to) the products they sell--but do not actually handle, stock, or deliver them.
Export agents
manufacturers' agents who specialize in export trade.
Export brokers
brokers who specialize in bringing together buyers and sellers from different countries.
Franchise operation
a franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.
General merchandise wholesalers
service wholesalers who carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment.
General stores
early retailers who carried anything they could sell in reasonable volume.
Import agents
manufacturers' agents who specialize in import trade.
Import brokers
brokers who specialize in bringing together buyers and sellers from different countries.
Limited-function wholesalers
merchant wholesalers who provide only some wholesaling functions.
Limited-line stores
stores that specialize in certain lines of related products rather than a wide assortment--sometimes called single-line stores.
Manufacturers' agents
agent middlemen who sell similar products for several noncompeting producers for a commission on what is actually sold.
Manufacturers' sales branches
separate warehouses that producers set up away from their factories.
Mass-merchandisers
large, self-service stores with many departments that emphasize soft goods (housewares, clothing, and fabrics) and staples (like health and beauty aids) and selling on lower margins to get faster turnover.
Mass-merchandising concept
the idea that retailers should offer low prices to get faster turnover and greater sales volume by appealing to larger numbers.
Merchant wholesalers
wholesalers who own (take title to) the products they sell.
Rack jobbers
merchant wholesalers who specialize in hard-to-handle assortments of products that a retailer doesn't want to manage--and they often display the products on their own wire racks.
Retailing
all of the activities involved in the sale of products to final consumers.
Scrambled merchandising
retailers carrying any product lines that they think they can sell profitably.
Selling agents
agent middlemen who take over the whole marketing job of producers--not just the selling function.
Service wholesalers
merchant wholesalers who provide all the wholesaling functions.
Single-line (or general-line) wholesalers
service wholesalers who carry a narrower line of merchandise than general merchandise wholesalers.
Single-line stores
stores that specialize in certain lines of related products rather than a wide assortment--sometimes called limited-line stores.
Specialty shop
a type of conventional limited-line store--usually small and with a distinct personality.
Specialty wholesalers
service wholesalers who carry a very narrow range of products and offer more information and service than other service wholesalers.
Supercenters
very large stores that try to carry not only foods and drug items, but all goods and services that the consumer purchases routinely (also called hypermarkets).
Supermarkets
large stores specializing in groceries--with self-service and wide assortments.
Telephone and direct-mail retailing
allows consumers to shop at home--usually placing orders by mail or a toll-free long distance telephone call and charging the purchase to a credit card.
Truck wholesalers
wholesalers who specialize in delivering products that they stock in their own trucks.
Voluntary chains
wholesaler-sponsored groups that work with independent retailers.
Wheel of retailing theory
new types of retailers enter the market as low-status, low-margin, low-price operators and then--if successful--evolve into more conventional retailers offering more services with higher operating costs and higher prices.
Wholesalers
firms whose main function is providing wholesaling activities.
Wholesaling
the activities of those persons or establishments that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users, but who do not sell in large amounts to final consumers.
Adoption curve
shows when different groups accept ideas.
Advertising
any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
Advertising managers
managers of their company's mass selling effort in television, newspapers, magazines, and other media.
AIDA model
consists of four promotion jobs--(1) to get Attention, (2) to hold Interest, (3) to arouse Desire, and (4) to obtain Action.
Communication process
a source trying to reach a receiver with a message.
Decoding
the receiver in the communication process translating the message.
Early adopters
the second group in the adoption curve to adopt a new product; these people are usually well-respected by their peers and often are opinion leaders.
Early majority
a group in the adoption curve that avoids risk and waits to consider a new idea until many early adopters try it--and like it.
Encoding
the source in the communication process deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver.
Innovators
the first group to adopt new products.
Integrated marketing communications
the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.
Laggards
prefer to do things the way they have been done in the past and are very suspicious of new ideas--sometimes called nonadopters--see adoption curve.
Late majority
a group of adopters who are cautious about new ideas--see adoption curve.
Mass selling
communicating with large numbers of potential customers at the same time.
Message channel
the carrier of the message.
Noise
any distraction that reduces the effectiveness of the communication process.
Nonadopters
prefer to do things the way they have been done in the past and are very suspicious of new ideas--sometimes called laggards--see adoption curve.
Personal selling
direct spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or via a video conference over the Internet.
Primary demand
demand for the general product idea, not just the company's own brand.
Promotion
communicating information between seller and potential buyer or others in the channel to influence attitudes and behavior.
Public relations
communication with noncustomers--including labor, public interest groups, stockholders, and the government.
Publicity
any unpaid form of nonpersonal presentation of ideas, goods, or services.
Pulling
using promotion to get consumers to ask middlemen for the product.
Pushing
using normal promotion effort--personal selling, advertising, and sales promotion--to help sell the whole marketing mix to possible channel members.
Receiver
the target of a message in the communication process, usually a potential customer.
Sales managers
managers concerned with managing personal selling.
Sales promotion
those promotion activities--other than advertising, publicity, and personal selling--that stimulate interest, trial, or purchase by final customers or others in the channel.
Sales promotion managers
managers of their company's sales promotion effort.
Selective demand
demand for a company's own brand rather than a product category.
Source
the sender of a message.
Task method
an approach to developing a budget--basing the budget on the job to be done.
Basic sales tasks
order-getting, order- taking, and supporting.
Close
the salesperson's request for an order.
Consultative selling approach
a type of sales presentation in which the salesperson develops a good understanding of the individual customer's needs before trying to close the sale.
Job description
a written statement of what a salesperson is expected to do.
Major accounts sales force
salespeople who sell directly to large accounts such as major retail chain stores.
Missionary salespeople
supporting salespeople who work for producers by calling on their middlemen and their customers.
Order getters
salespeople concerned with establishing relationships with new customers and developing new business.
Order takers
salespeople who sell to regular or established customers, complete most sales transactions, and maintain relationships with their customers.
Order-getting
seeking possible buyers with a well-organized sales presentation designed to sell a product, service, or idea.
Order-taking
the routine completion of sales made regularly to target customers.
Prepared sales presentation
a memorized presentation that is not adapted to each individual customer.
Prospecting
following all the leads in the target market to identify potential customers.
Sales presentation
a salesperson's effort to make a sale or address a customer's problem.
Sales quota
the specific sales or profit objective a salesperson is expected to achieve.
Sales territory
a geographic area that is the responsibility of one salesperson or several working together.
Selling formula approach
a sales presentation that starts with a prepared presentation outline--much like the prepared approach--and leads the customer through some logical steps to a final close.
Supporting salespeople
salespeople who help the order-oriented salespeople--but don't try to get orders themselves.
Team selling
different sales reps working together on a specific account.
Technical specialists
supporting salespeople who provide technical assistance to order-oriented salespeople.
Telemarketing
using the telephone to call on customers or prospects.
Accumulating
collecting products from many small producers.
11
Administered channel systems
various channel members informally agree to cooperate with each other.
11
Assorting
putting together a variety of products to give a target market what it wants.
11
Bulk-breaking
dividing larger quantities into smaller quantities as products get closer to the final market.
11
Channel captain
a manager who helps direct the activities of a whole channel and tries to avoid--or solve--channel conflicts.
11
Channel of distribution
any series of firms or individuals who participate in the flow of products from producer to final user or consumer.
11
Contractual channel systems
various channel members agree by contract to cooperate with each other.
11
Direct marketing
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.
11
Discrepancy of assortment
the difference between the lines a typical producer makes and the assortment final consumers or users want.
11
Discrepancy of quantity
the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.
11
Dual distribution
when a producer uses several competing channels to reach the same target market--perhaps using several middlemen in addition to selling directly (sometimes call multichannel distribution).
11
Exclusive distribution
selling through only one middleman in a particular geographic area.
11
Ideal market exposure
when a product is available widely enough to satisfy target customers' needs but not exceed them.
11
Intensive distribution
selling a product through all responsible and suitable wholesalers or retailers who will stock and/or sell the product.
11
Multichannel distribution
when a producer uses several competing channels to reach the same target market--perhaps using several middlemen in addition to selling directly (sometimes called dual distribution).
11
Place
making goods and services available in the right quantities and locations--when customers want them.
11
Regrouping activities
adjusting the quantities and/or assortments of products handled at each level in a channel of distribution.
11
Reverse channels
channels used to retrieve products that customers no longer want.
11
Selective distribution
selling through only those middlemen who will give the product special attention.
11
Sorting
separating products into grades and qualities desired by different target markets.
11
Traditional channel systems
a channel in which the various channel members make little or no effort to cooperate with each other.
11
Vertical integration
acquiring firms at different levels of channel activity.
11
Vertical marketing systems
channel systems in which the whole channel focuses on the same target market at the end of the channel.
11
Chain of supply
the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers.
12
Containerization
grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination.
12
Customer service level
how rapidly and dependably a firm can deliver what customers want.
12
Distribution center
a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.
12
Electronic data interchange (EDI)
an approach that puts information in a standardized format easily shared between different computer systems.
12
Freight forwarders
transportation wholesalers who combine the small shipments of many shippers into more economical shipping quantities.
12
Inventory
the amount of goods being stored.
12
Logistics
the transporting, storing, and handling of goods to match target customers' needs with a firm's marketing mix--both within individual firms and along a channel of distribution (i.e., another name for physical distribution).
12
Physical distribution (PD)
the transporting, storing, and handling of goods to match target customers' needs with a firm's marketing mix--both within individual firms and along a channel of distribution.
12
Physical distribution (PD) concept
all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system which seeks to minimize the cost of distribution for a given customer service level.
12
Piggyback service
loading truck trailers or flat-bed trailers carrying containers on railcars to provide both speed and flexibility.
12
Private warehouses
storing facilities owned or leased by companies for their own use.
12
Public warehouses
independent storing facilities.
12
Storing
the marketing function of holding goods.
12
Total cost approach
evaluating each possible PD system and identifying all of the costs of each alternative.
12
Transporting
the marketing function of moving goods.
12
Agent middlemen
wholesalers who do not own (take title to) the products they sell.
13
Auction companies
agent middlemen who provide a place where buyers and sellers can come together and complete a transaction.
13
Automatic vending
selling and delivering products through vending machines.
13
Brokers
agent middlemen who specialize in bringing buyers and sellers together.
13
Cash-and-carry wholesalers
like service wholesalers, except that the customer must pay cash.
13
Catalog wholesalers
sell out of catalogs that may be distributed widely to smaller industrial customers or retailers who might not be called on by other middlemen.
13
Combination export manager
a blend of manufacturers' agent and selling agent--handling the entire export function for several producers of similar but noncompeting lines.
13
Convenience (food) stores
a convenience-oriented variation of the conventional limited-line food stores.
13
Cooperative chains
retailer-sponsored groups, formed by independent retailers, to run their own buying organizations and conduct joint promotion efforts.
13
Corporate chain
a firm that owns and manages more than one store--and often it's many.
13
Department stores
larger stores that are organized into many separate departments and offer many product lines.
13
Discount houses
stores that sell hard goods (cameras, TVs, appliances) at substantial price cuts to customers who go to discounter's low-rent store, pay cash, and take care of any service or repair problems themselves.
13
Door-to-door selling
going directly to the consumer's home.
13
Drop-shippers
wholesalers who own (take title to) the products they sell--but do not actually handle, stock, or deliver them.
13
Export agents
manufacturers' agents who specialize in export trade.
13
Export brokers
brokers who specialize in bringing together buyers and sellers from different countries.
13
Franchise operation
a franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units.
13
General merchandise wholesalers
service wholesalers who carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment.
13
General stores
early retailers who carried anything they could sell in reasonable volume.
13
Import agents
manufacturers' agents who specialize in import trade.
13
Import brokers
brokers who specialize in bringing together buyers and sellers from different countries.
13
Limited-function wholesalers
merchant wholesalers who provide only some wholesaling functions.
13
Limited-line stores
stores that specialize in certain lines of related products rather than a wide assortment--sometimes called single-line stores.
13
Manufacturers' agents
agent middlemen who sell similar products for several noncompeting producers for a commission on what is actually sold.
13
Manufacturers' sales branches
separate warehouses that producers set up away from their factories.
13
Mass-merchandisers
large, self-service stores with many departments that emphasize soft goods (housewares, clothing, and fabrics) and staples (like health and beauty aids) and selling on lower margins to get faster turnover.
13
Mass-merchandising concept
the idea that retailers should offer low prices to get faster turnover and greater sales volume by appealing to larger numbers.
13
Merchant wholesalers
wholesalers who own (take title to) the products they sell.
13
Rack jobbers
merchant wholesalers who specialize in hard-to-handle assortments of products that a retailer doesn't want to manage--and they often display the products on their own wire racks.
13
Retailing
all of the activities involved in the sale of products to final consumers.
13
Scrambled merchandising
retailers carrying any product lines that they think they can sell profitably.
13
Selling agents
agent middlemen who take over the whole marketing job of producers--not just the selling function.
13
Service wholesalers
merchant wholesalers who provide all the wholesaling functions.
13
Single-line (or general-line) wholesalers
service wholesalers who carry a narrower line of merchandise than general merchandise wholesalers.
13
Single-line stores
stores that specialize in certain lines of related products rather than a wide assortment--sometimes called limited-line stores.
13
Specialty shop
a type of conventional limited-line store--usually small and with a distinct personality.
13
Specialty wholesalers
service wholesalers who carry a very narrow range of products and offer more information and service than other service wholesalers.
13
Supercenters
very large stores that try to carry not only foods and drug items, but all goods and services that the consumer purchases routinely (also called hypermarkets).
13
Supermarkets
large stores specializing in groceries--with self-service and wide assortments.
13
Telephone and direct-mail retailing
allows consumers to shop at home--usually placing orders by mail or a toll-free long distance telephone call and charging the purchase to a credit card.
13
Truck wholesalers
wholesalers who specialize in delivering products that they stock in their own trucks.
13
Voluntary chains
wholesaler-sponsored groups that work with independent retailers.
13
Wheel of retailing theory
new types of retailers enter the market as low-status, low-margin, low-price operators and then--if successful--evolve into more conventional retailers offering more services with higher operating costs and higher prices.
13
Wholesalers
firms whose main function is providing wholesaling activities.
13
Wholesaling
the activities of those persons or establishments that sell to retailers and other merchants, and/or to industrial, institutional, and commercial users, but who do not sell in large amounts to final consumers.
13
Adoption curve
shows when different groups accept ideas.
14
Advertising
any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
14
Advertising managers
managers of their company's mass selling effort in television, newspapers, magazines, and other media.
14
AIDA model
consists of four promotion jobs--(1) to get Attention, (2) to hold Interest, (3) to arouse Desire, and (4) to obtain Action.
14
Communication process
a source trying to reach a receiver with a message.
14
Decoding
the receiver in the communication process translating the message.
14
Early adopters
the second group in the adoption curve to adopt a new product; these people are usually well-respected by their peers and often are opinion leaders.
14
Early majority
a group in the adoption curve that avoids risk and waits to consider a new idea until many early adopters try it--and like it.
14
Encoding
the source in the communication process deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver.
14
Innovators
the first group to adopt new products.
14
Integrated marketing communications
the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.
14
Laggards
prefer to do things the way they have been done in the past and are very suspicious of new ideas--sometimes called nonadopters--see adoption curve.
14
Late majority
a group of adopters who are cautious about new ideas--see adoption curve.
14
Mass selling
communicating with large numbers of potential customers at the same time.
14
Message channel
the carrier of the message.
14
Noise
any distraction that reduces the effectiveness of the communication process.
14
Nonadopters
prefer to do things the way they have been done in the past and are very suspicious of new ideas--sometimes called laggards--see adoption curve.
14
Personal selling
direct spoken communication between sellers and potential customers, usually in person but sometimes over the telephone or via a video conference over the Internet.
14
Primary demand
demand for the general product idea, not just the company's own brand.
14
Promotion
communicating information between seller and potential buyer or others in the channel to influence attitudes and behavior.
14
Public relations
communication with noncustomers--including labor, public interest groups, stockholders, and the government.
14
Publicity
any unpaid form of nonpersonal presentation of ideas, goods, or services.
14
Pulling
using promotion to get consumers to ask middlemen for the product.
14
Pushing
using normal promotion effort--personal selling, advertising, and sales promotion--to help sell the whole marketing mix to possible channel members.
14
Receiver
the target of a message in the communication process, usually a potential customer.
14
Sales managers
managers concerned with managing personal selling.
14
Sales promotion
those promotion activities--other than advertising, publicity, and personal selling--that stimulate interest, trial, or purchase by final customers or others in the channel.
14
Sales promotion managers
managers of their company's sales promotion effort.
14
Selective demand
demand for a company's own brand rather than a product category.
14
Source
the sender of a message.
14
Task method
an approach to developing a budget--basing the budget on the job to be done.
14
Basic sales tasks
order-getting, order- taking, and supporting.
15
Close
the salesperson's request for an order.
15
Consultative selling approach
a type of sales presentation in which the salesperson develops a good understanding of the individual customer's needs before trying to close the sale.
15
Job description
a written statement of what a salesperson is expected to do.
15
Major accounts sales force
salespeople who sell directly to large accounts such as major retail chain stores.
15
Missionary salespeople
supporting salespeople who work for producers by calling on their middlemen and their customers.
15
Order getters
salespeople concerned with establishing relationships with new customers and developing new business.
15
Order takers
salespeople who sell to regular or established customers, complete most sales transactions, and maintain relationships with their customers.
15
Order-getting
seeking possible buyers with a well-organized sales presentation designed to sell a product, service, or idea.
15
Order-taking
the routine completion of sales made regularly to target customers.
15
Prepared sales presentation
a memorized presentation that is not adapted to each individual customer.
15
Prospecting
following all the leads in the target market to identify potential customers.
15
Sales presentation
a salesperson's effort to make a sale or address a customer's problem.
15
Sales quota
the specific sales or profit objective a salesperson is expected to achieve.
15
Sales territory
a geographic area that is the responsibility of one salesperson or several working together.
15
Selling formula approach
a sales presentation that starts with a prepared presentation outline--much like the prepared approach--and leads the customer through some logical steps to a final close.
15
Supporting salespeople
salespeople who help the order-oriented salespeople--but don't try to get orders themselves.
15
Team selling
different sales reps working together on a specific account.
15
Technical specialists
supporting salespeople who provide technical assistance to order-oriented salespeople.
15
Telemarketing
using the telephone to call on customers or prospects.
15