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53 Cards in this Set
- Front
- Back
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4 p's
Place |
Half of the marketing cost take place
Lease flexible of the 4 P's place is a series of business relationships |
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Marketing Channel
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Individuals or firms involved in the process of making a product or service available for use or consumption by consumers.
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Intermediairy 3 functions
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Transactional function- buying and selling and risk taking bc they stock merchandise in anticipation of sales.
Logistical Function- gathering storing and dispensing of products. Facilitating function- making products more attractive to buyers. |
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Channels for Consumer goods
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Can be up to 4
1-Direct Channel- Producer to consumer 3-Indirect Channel- producer to retailer to consumer Producer, Agent, wholesaler, retailer, consumer- largest |
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Channels for Business goods and services
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Direct- maintain own sales force
Indirect-Electronic Marketing |
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Direct Marketing Channels
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Consumers buy products by interacting withe media without face to face sales.
Mail order sales, Catalog |
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Multi-channel marketing.
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the blending of different communication and delivery channels that are mutually reinforcing in attracting, maintain relationships with customers.
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dual distribution
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Companies use two or more channels of distribution for the same basic product.
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Strategic channel alliances
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Companies working together to sell both products
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Merchant Wholesaler
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Firms that are engaged in wholesale activity. Take Title to merchandise.
General merchandise- carry broad assortment of merchandise specialty merchandise-offer narror rang of goods but more assortment. |
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Manufacturing agents
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work with several producers, work as a sales arm in specific area.
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sales Agents
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single producer and are respondible for entire marking function of producer.
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Brokers
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bring buyers and sellers together
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Vertical Marketing Systems
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Designed to achieve channel economies and maximum marketing impact
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Forward integration
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Polo- makes clothes, owns clothers
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Factors affecting channel and managment
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Enviromental
consumer product company |
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Desnity distribution
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Intensive distribution- firms places products in as many places as possible.
exclusive distribution- extream opposite Selective distribution-lies between the two extreasm |
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Channel conflict
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when one member belives that another member is engaged in activities that prevents him from achieving goals.
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Disintermediation
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Bypassing another member or sells or buys products directly
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Channel captin-
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a channel member that coordinates, directs and supports othe channel members, can be producers wholesalers.
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MM Transactional Function
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buying purchasing for resale or as an agent for supply of a product
selling0 contacting poetential customers risk taking- assumng business risk |
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MM Logistical function
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Assorting- creating product assorments from several sources to serve a customer
storing- transporting |
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MM-Facilitating
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Financing- extending credit to customers
grading- inspecting testing or judging products marketing info- providing info to customers and suppliers including competitvie conditions and trends. |
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Dual Distribution-
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using two channels to sell-
GE sells to home and apt buildings and also directly to customer |
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Merchant Wholesalers
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are independantly owned and take title to merchandise they handle.
Full servce or specialty |
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Manufacturing agents
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represent many producers-Car dealerships, used as the producers arm
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Selling agents
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represent single producer and are entirely responsible for the entire marketing function of that producer
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Brokers
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bring buyers to sellers- centry 21
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backward
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Kroger, because they own the manufactures that make the food
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Determinant of channel length- Shorter
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products are costly, bulky, large, geographicaly concentrated.
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Characteristics that discourage MM
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buyers are few in number, large, geographically located
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most common channel for consumer
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M W R C
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B2B channels are..
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shorter- producer user direct connection channel.
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Rev War what channels
Civil war? Recent decades |
wholesalers
Manufacture powerful retailers. |
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Basic pattern M W business or other org customer
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wholesalers are truly in the middle, can be fired by manufactures or businesses to take over.
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Agents/brokers
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Buying and selling contacts, do not take title
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Merchant wholesalers OWN
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Merchandise and buy from others.
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4 retailing institutions
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Traditional Department Stores
Chain store org food supermarkets planned shopping centers |
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Traditional Department stores
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Many first pioneered by them
dominated from 1860s to 1960s Anchors |
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Chain Store org
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2 or more stores with the same owner, format.
Dominate most retail catagories steady growth in market cookie cutter model Tend to have lower markups and higer turnover Small stores are opposite |
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Category Killer
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Chain store with deep assortment and attractive prices, VERY large specialty stores
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Food Supermarkets
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1st- discounter, self serve, wheel of retaining example
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1946-74 golden area of retail
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if you build it they wiull come, not anymore
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Scrimp and splurge
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not really spending then indulging
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Consumer shopping behaviors
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scrimp splurge
less store/ loyalyty brand values bargans |
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retailers resonse to increased price
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Wholesale clubs
off price stores facotry outlets extream value retailers everyday low prices |
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profit maximization
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the single objective for pricing
Business say market share sales goal rate of return |
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cost based pricing
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Most common method, basing pricing off the supply side/ costs
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Re-seller markups
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27 markup
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demand based pricing
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higher prices when demand is higher
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big 3 facots in determing price
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cost
competition customer/demand |
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1% windfall
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raise prices by 1% while keeping quantity the same you can make lots of extra cash
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3 general areas of productive pricing activity
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pick a plan pricing
differential pricing versioning |
