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129 Cards in this Set
- Front
- Back
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Channel Conflict |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Customer Service |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Disintermediation |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Dual Distribution |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Exclusive Distribution |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Intensive Distribution |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Logistics |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Marketing Channel |
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals. |
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Multichannel Marketing |
Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. |
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Reverse Logistics |
A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal. |
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Selective Distribution |
A level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products |
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Supply Chain |
The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users. |
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Total Logistics Cost |
The expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling |
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Vendor Managed Inventory (VMI) |
An inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items. |
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Vertical Marketing Systems |
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact |
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Brokers |
Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales. |
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Category Management |
An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category |
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Manufacturer's Agents |
Agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Also called manufacturer's representatives. |
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Merchant Wholesalers |
Independently owned firms that take title to the merchandise they handle. |
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Multichannel Retailers |
Retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, television home shopping, and online retailing |
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Retail Life Cycle |
The process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages. |
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Retailing |
All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use |
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Retailing Mix |
The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise. |
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Scrambled Merchandising |
Offering several unrelated product lines in a single store |
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Shopper Marketing |
The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store |
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Telemarketing |
Using the telephone to interact with and sell directly to consumers. |
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Wheel of Retailing |
A concept that describes how new forms of retail outlets enter the market |
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Advertising |
Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. |
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Communication |
The process of conveying a message to others that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding. |
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Direct Marketing |
A promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. |
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Direct Orders |
The result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction. |
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Hierarchy of Effects |
The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, and adoption of the product. |
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Integrated Marketing Communications (IMC) |
The concept of designing marketing communications programs that coordinate all promotional activities—advertising, personal selling, sales promotion, public relations, and direct marketing—to provide a consistent message across all audiences. |
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Lead Generation |
The result of a direct marketing offer designed to generate interest in a product or service and a request for additional information |
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Personal Selling |
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. |
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Promotional Mix |
The combination of one or more communication tools used to: (1) inform prospective buyers about the benefits of the product, (2) persuade them to try it, and (3) remind them later about the benefits they enjoyed by using the product |
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Public Relations |
A form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services |
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Publicity |
A nonpersonal, indirectly paid presentation of an organization, product, or service. |
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Pull Strategy |
Directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product. |
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Push Strategy |
Directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product. |
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Sales Promotion |
A short-term inducement of value offered to arouse interest in buying a product or service. |
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Traffic Generation |
The outcome of a direct marketing offer designed to motivate people to visit a business. |
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Advertising |
Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. |
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Consumer-Oriented Sales Promotions |
Sales tools used to support a company's advertising and personal selling directed to ultimate consumers. Also called consumer promotions. |
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Cooperative Advertising |
Advertising programs by which a manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products. |
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Infomercials |
Program-length (30-minute) advertisements that take an educational approach to communication with potential customers. |
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Institutional Advertisements |
Advertisements designed to build goodwill or an image for an organization rather than promote a specific product or service. |
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Posttests |
Tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose |
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Pretests |
Tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement. |
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Product Advertisements |
Advertisements that focus on selling a product or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder. |
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Product Placement |
A consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product. |
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Publicity Tools |
Methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements (PSAs). |
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Trade-Oriented Sales Promotions |
Sales tools used to support a company's advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions. |
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Account Management Policies |
Policies that specify who salespeople should contact, what kinds of selling and customer service activities should be engaged in, and how these activities should be carried out. |
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Adaptive Selling |
A need-satisfaction sales presentation style that involves adjusting the presentation to fit the selling situation, such as knowing when to offer solutions and when to ask for more information. |
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Consultative Selling |
A need-satisfaction sales presentation style that focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution. |
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Major Account Management |
The practice of using team selling to focus on important customers so as to build mutually beneficial, long-term, cooperative relationships; also called key account management. |
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Order Getter |
A salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers' use of a product or service. |
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Order Taker |
A salesperson who processes routine orders or reorders for products that were already sold by the company |
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Personal Selling |
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 |
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Personal Selling Process |
Sales activities occurring before, during, and after the sale itself, consisting of six stages: (1) prospecting, (2) preapproach, (3) approach, (4) presentation, (5) close, and (6) follow-up. |
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Relationship Selling |
The practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time. |
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Sales Management |
Planning the selling program and implementing and evaluating the personal selling effort of the firm. |
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Sales Plan |
A statement describing what is to be achieved and where and how the selling effort of salespeople is to be deployed. |
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Sales Quota |
Specific goals assigned to a salesperson, sales team, branch sales office, or sales district for a stated time period. |
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Salesforce Automation (SFA) |
The use of computer, information, communication, and Internet technologies to make the sales function more effective and efficient. |
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Direct Marketing Channel |
Ships directly from producer to consumer |
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Indirect Marketing Channel |
Ships indirectly to the consumer. Either through a retailer, wholesaler + retailer, or even agent + wholesaler + retailer |
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Retailer |
Have ownership of merchandise Sell goods to ultimate consumer |
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Wholesaler |
Have ownership of merchandise Acquire large quantities - break down and sort into more manageable quantities for retailers |
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Agent |
Don't have ownership of merchandise Make profit based on commission or fees Facilitate selling |
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Three types of vertical marketing systems |
1) Corporate 2) Contractual 3) Administered |
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Corporate System |
Company owns all the levels of the marketing channel |
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Contractual System |
Two parties form a contract to share / provide wanted services to one another |
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Administered System |
Some party is very large and can tell the smaller parties what to do |
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Channel conflict |
One channel member believes another channel member is preventing the achievement of goals Vertical Conflict - between different levels of channel Horizontal Conflict - between intermediaries at same level |
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Channel Captain |
They coordinate, direct, and support other members. Influence comes from several sources - economic benefit, expertise, identification benefits, and legitimate right |
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Reverse logistics |
Supply chain extends beyond the ultimate user Used goods can be collected and recycled for reuse - it is responsible and profitable |
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Classifying retail outlets |
Form of ownership Level of service Merchandise line |
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Levels of service |
Self-service Limited service Full service |
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Single-line |
Where a retailed focuses on one type of product, with huge depth, many types of this one product. Think of a paper store |
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Limited-line |
It's a broader focus, but still has a focus, but other related products as well. Think of staples |
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Broad-line |
These have everything, but not much depth into one particular area. Think walmart. |
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Nonstore retailing |
vending, direct mail & catalog, television home shopping, online, telemarketing, direct selling |
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Retailing Mix |
Includes merchandise, retail pricing, retail communication, and store location. Think of the marketing mix (4 P's (product, price, promotion, place)), it is these applied to retail |
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Retail Pricing |
Higher prices: Original Markup, or Maintained Markup (gross margin)
Lower Prices: Markdown, Everyday low pricing, Everyday fair pricing, or off-price retailing |
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Retail Communication |
Functional Attributes: Prices, layout, merchandise Psychological Attributes: Sense of belonging, excitement, style |
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IMC - Integrated Marketing Communication |
The concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences |
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Six elements of communication |
1) Source 2) Message 3) Channel of communication 4) Receiver 5) Encoding 6) Decoding |
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Field of Experience |
Understanding and knowledge that an individual or group brings to a situation |
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Noise |
External factors that work against communication by distorting a message or feedback |
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Promotional Elements |
Advertising Personal Selling Public Relations Sales Promotion Direct Marketing |
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Advertising |
Direct payment for communication Use of mass (nonpersonal) medium Focus not necessarily on immediate purchase decision |
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Public Relations |
Indirect payment for communication Use of mass (nonpersonal) medium Attempt to get medium to delivery positive info Think Twitter |
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Promotional Mix |
Target Audience Produce life cycle Channel strategy |
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Channel Strategy: Push Strategy |
The flow of demand stimulation and promotion is from manufacturer to wholesaler. It is mainly personal selling directed to intermediaries. Then wholesaler to retailer, retailer to consumer. Basically, manufacturer pushes it down to the consumer |
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Channel Strategy: Pull Strategy |
Flow of demand stimulation goes from wholesaler to manufacturer. Flow of promotion goes from manufacturer to consumer, usually advertising directed towards them. The consumer then demands from retailer, who demands from wholesaler, who demands from manufacturer Basically, manufacturer pulls demand from the consumer |
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Product vs Institutional Advertisements |
Product - focus on good or service Institutional - focus on organization |
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Product Advertisements |
Pioneering - let people know about a new product Competitive - why this product is better Reminder - let people know it still exists |
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Institutional Advertisements |
Pioneering, competitive, reminder, and... Advocacy - build good will with the consumer |
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Ad Appeals |
Fear - avoid negative experience Sex - enhance attractiveness Humor - find fun and excitement |
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Aided Recall |
Do you remember this? Gives information |
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Unaided Recall |
What do you remember? Does not give information |
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Attitude Tests |
How do you feel about it? How about now? |
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Inquiry Tests |
Tell 'em Dave sent you, and get 20% off! |
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Sales Tests |
Minneapolis sees us on TV. St. Paul hears us on the radio. Who buys more? |
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Ad posttesting |
Aided recall Unaided recall Attitude tests Inquiry tests Sales tests |
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Scheduling the advertising - approaches |
Continuous (steady) schedule - when demand is constant Flighting (intermittent) schedule - when demand is seasonal Pulse (burst) schedule - when demand spikes throughout the year |
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Personal Selling Process |
Prospecting Preapproach Appraoch Presentation Close Follow-up |
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Prospecting |
lead - just a name prospect - interested, can use it, but maybe cannot acquire it qualified prospect - want/need product, and able to obtain it |
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Preapproach |
Process of figuring out how to approach the prospect What factors should a seller consider? |
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Approach |
The initial meeting A chance to make a good first impression |
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Presentation |
Converting the prospect into a customer. Includes: Stimulus-response - try appealing to them Formula selling - accurate, thorough info Need-satisfaction - identify needs |
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Close |
Actually getting a purchase, the prospect is now a customer, getting the prospect to commit to the purchase
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Follow-up |
Ensure satisfaction
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Handling Objections: Techniques |
1) Acknowledge and convert 2) Postpone 3) Agree and neutralize 4) Accept the objection 5) Denial 6) Ignore the objection |
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Influence Principles |
Reciprocity Consensus Scarcity Authority Consistency Liking |
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Reciprocity Principle |
People feel obligated to give back to those who have given to them - Internal feelings of discomfort - External threat of social disapproval |
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Consensus Principle |
People determine "appropriate" behavior by observing how others behave - Mental shortcut - Often accurate heuristic |
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Scarcity Principle |
Opportunities seem more valuable when they are less available - Assume things that are difficult to attain are more valuable - Dislike feelings of loss when options become unavailable - want options (italicized) more |
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Authority Principle |
People are more likely to comply with those viewed as authorities - Regarded as "correct" conduct - Often beneficial |
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Consistency Principle |
When people make a choice or take a stand, they feel pressure to behave consistently with that commitment - Internal motivation (self-image) - External pressure (others' disapproval) |
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Liking Principle |
People are more likely to comply with others that they like |
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How to activate reciprocity |
meet people halfway, make a concession for them |
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How to activate consensus |
Imply/suggest others are engaging in certain behaviors. It's especially powerful with multiple others, similar others, or multiple similar others. It can backfire for negative behavior though (can make people act negatively if everyone else is too) |
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How to activate scarcity |
Limited time, limited quantity, new scarcity, competition |
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How to activate Authority |
Titles, appearances, trappings |
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How to activate consistency |
Secure an initial commitment. make commitments active, voluntary, and public |
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How to activate liking |
Similarity, compliments, mutual goals, association. |
