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33 Cards in this Set
- Front
- Back
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Limited Service Merchant Wholesalers
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Drop Shippers
Cash and Carry Wholesalers Truck Jobbers |
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take legal title of the merchandise, but they never physically process it
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Drop Shippers
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service customers who are too small to merit in person sales calls from wholesaler reps
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Cash and Carry Wholesalers
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typically work with perishable goods
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Truck Jobbers
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three key strategic options for store retailers
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Intensive
Selective Inclusive |
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involves placing your products in as many stores as possible
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Intensive Distribution
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place products only with preferred reatilers
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Selective Distribution
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Hurdles to online retailing
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Products must be delivered
Lack of security |
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Includes catalogs, telemarketing, and advertising
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Direct Response Retailing
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Includes all methods of selling directly to customers in thier homes or workplaces
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Direct Selling
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involves hiring independent contractors to sell products to thier personal network of friends and colleagues and to recruit new salespeople in return for a percentage of commission
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MLM
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determining how your product will flow through the channel from the producer to the consumer
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Physical Distribution Strategy
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emerging strategy that allows suppliers to determine buyer need and automatically ship products
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Vendor-managed inventory
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Key management decisions to distribution
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Warehousing
Materials Handling Inventory Control Order Processing Customer Service Transportation Security |
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Perhaps the toughest variable for marketers to control; plays a key role in demand
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Pricing
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play a role in determining the price of most products
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leagal constraints
market intermediaries |
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Common objectives and strategies to pricing
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Building Profitability
Boosting Volume Matching the Competition Creating Prestige |
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often the starting point for pricing strategies; firms express these goals in terms of ROI or ROS
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Profitability Targets
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Company's usually express this in terms of market share- the percent of a market controlled by a company or product
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Volume Goals
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A volume objective usually leads to one of the following strategies
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Penetration Pricing
EDLP High/Low Pricing Loss Leader Pricing |
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key benefit of this strategy is that it tends to discourage competitors
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Penetration Pricing
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also known as sustained discount pricing
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EDLP
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often used in grocery stores, drug stores, and department stores
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HL Pricing
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can alienate customers who feel cheated when a product they bought for full price goes on sale
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HL Pricing
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can train consumers to buy only when products are on sale
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HL Pricing
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Idea is to wipe out price as a point of comparison, forcing customers to choose thier product based on other factors
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Matching the Competition
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Core goal is to use price to send consumers a message about the high quality and exclusivity of a product
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Creating Prestige
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Idea is to entice price-insensitive customers to buy high when a product first enters the market
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Skimming Pricing
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Breakeven Point
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Total FC / Price per unit - VC per unit
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two key ways to determine margins
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Cost Based Pricing
Demand Based Pricing |
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starts with determining the cost of each product; next step is to layer the margin on the cost to determine the price
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Cost Based Pricing
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begins by determining what price customers would be willing to pay; with that as a starting point, marketers subtract their desired margin, which yields thier target costs
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Demand Based Pricing
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Consumer Pricing Perceptions
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price-quality relationships
odd pricing |
