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118 Cards in this Set
- Front
- Back
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Middle Man?
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Any intermediary between manufacturer and end-user markets
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Agent or Broker?
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Any intermediary with legal authority to act on behalf of the manufuacturer
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Wholesaler?
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An intermediary who sells to other intermediaries usallualy to retaliers, usally applies to consumers markets
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Retalier?
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An intermediary who sells to consumers
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Ditriubutor?
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Usually describes intermediaries who prefrom a variety of distribution functions, inclusing selling mantaining inventories, extending credit and so on a more common terem in business markets but may also be used to refer to wholwsalers
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Dealer?
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An even more impersice term that can mean the same as distributor, retalier and whoelsaler as so forth
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The Levels of Ownership?
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Independent
Corporate Chain Contractual |
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Type of Merchaindise Line?
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Depth of line
Breadth of line |
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Factors affecting channel design?
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Envrionmental factors
Consumer factos Product factors Company facotrs |
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Channel choice considerations?
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Target market converage
Buyer requiments Profitability |
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Level of Service?
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Self Service
Limited Service Full Service |
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Exlcusive Distibution?
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Work with a single intermediary for a product that requires special resources or posistioning to distribute luxury goods effectivly
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Selective Distirbution?
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Work Closely with intermediaries who meet certian criteria, distribute shopping goods effectivly
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Intensive Distribution?
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Supoprt Mass selling distribute convenice goods effectivly
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Key Factors Affecting Conusmers Retial Choice?
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Convenience
Porduct Selection Fairness in Dealings Helpful Information Prices Social Image Shopping Atmosphere |
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Three C's of Channel Management?
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Coordinatoin
Cooperation Conflict |
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Corrdination?
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Synchoriize effort between channel member activites
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Cooperation?
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Willing to work toegether towards a coommon purpose
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Conflict?
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Tension reulsting form incompatablilitybetween channel members
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The role of power in channnel managmenet? (Power Influence Sources)
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Economic
Expertise Indentification/ Referent Legitiamate |
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What is ACV?
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A meause of ditrubtinon reach not the number of stores
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What is the ACV ratio?
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Sales of product category in stores in which your product is sold / Total product category sales
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Steps in setting price?
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1. Identifiying pricing constraints and objectives
2. Estimate demand and reveune 3. Determine cost volume and profit relationships 4. Select an apporximate price level 5. Set list or quoted price 6.Make special adjustments to list or quoted price |
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Pricing Objectives and Constriants?
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Competition
Costs Consumer Controls / Legal Price Consumer Demand Stage of PLC Costs of producing and Marketing Competators prices Legal constraints |
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Objectives of Pricing?
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Profit
Reveune Market Share Survial |
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Pricing Stratigies?
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Demand oriented approches
Cost oriented approches Profit oritned apporcahes Competition oreiented approahcesDe |
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Demand Approach?
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Skimming
Penetration Prestige Odd-Even Target Bundle Yeild Managment |
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Cost Approach?
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Standard Markup
Cost Plus |
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Profit Approach?
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Target Profit
Target retun on sales Target return on invetsment |
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Competition Approach?
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Customary
Above or below market Losss Leader |
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Presitge Pricing?
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Setting a high price to convey an image of high quality or exclusivity
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Odd-Even Pricing?
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Setting a few dollars or cents below a even number
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Bundle Pricing?
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Offering severla products as a package at a sinlge package price
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Loass Leader Pricing?
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Setting prices near or below cost inorder ot attract customers ot a store
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Adjustmens to Pricing?
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Quantity
Sesaonl Trade Chash |
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Quantity Discounts?
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reduction in the price per unit for purhcsing a larger quntitiy
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Sesaonal Discount?
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Price reductoin offered during time of slow demand
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Trade Discount?
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Percentage reduction from list price offered to resellers
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Cash Discount?
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Incentive for buyers to pay quick or a lower price for payment of cash
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Trade in allowance?
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Discount for providing a porduct along with monetary payment
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Promotional Allowance?
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Price reduction in xhcnage for the resller preformaing certian pormotional activities
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Push Strategy?
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1. Prodcuer
2. Resellers 3. End-user |
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Pull Strategy?
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1. Producer
2. End-User 3. Reseller 4. Producer 5. Producer Makreting Communicaations to End-Users |
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Create Awareness?
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Inform makrets about prouct, brnad, stores or organizations
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Build Positive Images?
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Delveop posisitve evlauation in people's minds about products, brands, sotres or organizations.
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Identify Prospects?
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INcrese cooperation amoung channel members
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Retain Customers?
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Create vlaue for customers, satifiy thier wants and needs and earn thier loyalty
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The 5 strategic Objective of Marketing?
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1. Create Awarness
2. Build positve Images 3. Identifiy Prospects 4. Build channel relationships 5. Retian customers |
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The PLC?
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1. Intorduction
2. Growth 3. Maturitiy 4. Decline |
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Introduction?
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to inform
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Growth?
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To persuade
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Maturity?
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To remind
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Decline?
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Harvest or Divest
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Advertising?
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Mass
Fees paid for papce or time reahcses a lrage numbernumber of people high absolute costs difficult to recive feedback |
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Personal Selling?
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customized
fees paid to sales people as either salireies or commisissions immediate feedback very pursuasive can selct asudience can give complex infromatoin extremely expensive per exposure messages may differ between slaes people |
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Public Relations?
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Mass
No direct payment to media often most crediable source in the customers mind difficult to get media cooperation |
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Sales Promotion?
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Mass
wide reange of fees paid, depending on promitoin slected effective at changing behaviorin short run very flexable esaily abused cna lead to promtion wars easily duplicated |
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Direct Marketing?
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customeized cost of communicatio thorugh mail, telephone, or computer
messages cna be prepared quickly facilities realationships with customers declining customer response database managemnt is expensive |
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Product Adervisitng?
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Advertising that focusses on creatin demand for goods, services, places, perosns, or events
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Pioneering Advertising?
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Advertising that attemps to delvelop priamry demand for a category of product
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Competitive Advertising?
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Advertising that promotes a specific brand's features and benifits
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Comparative Advertising?
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A fomr of competitieve advertising which ashows one brands strengths relative to those of competition
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Reminder Adversting?
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Used to reinforce previous knowledge of a product
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Institutional Advertising?
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Advertisng that promotes th name, image, perosnael, or reputiona of a company, orgnaizatoin or industry
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Advocacy Advertsing?
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INsitutional advertising the supports particualr posistions, activites, or causes
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Advertising Executions?
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testimonial Evidence
Slice of Life Lifestyle Fantasy Mood or IMage Musical Personality Symbol Technical Expertise Scientific Evidnece |
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Advertising Appeals?
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Moral
Rational Emotional Fear Sex Humor Moral |
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The IMC Mix?
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Advertising
Perosnal Selling Public relations Slaes Promotions Diret Makreting |
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Considerations of IMC?
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Traget audience
Porduct characteriscs and life cycle competition stages of the buying decistoin channel strategies company resources |
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Coupons?
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stimulates demand
encourges relaier support cusotmers delay pruchases |
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Deals?
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INclease trial, retaliate against competaitor's actoins
reduce consumer risk cosumers delay pruchases reducde precived prodct vlaue |
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Premiums?
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Build goodwill
Conusmers like free or reduced price merchanside consumers buy for premium not the product |
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Contests?
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Increae consumer pruchases build bsuienss inventory
enrourage sonsumer invovlment eith product rewuire cretaive or analyitic thinking |
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Sweepstakes?
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Encouragme presnet consumers to buy more, minimizing brand switching
get sutome to use porduct and sotre more often Slaes drop after sweepstakes |
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Samples?
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Encourage new product tiral
low risj for consumer high cost for company |
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Point of purhcase displays?
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Increse produc tiral and proivde in sotre support to other pormtions
provide good product visisbality hard to get retialier to allocate hgih trafic space |
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Rebates?
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Enoucrge customer to purhcse stop slaes delcine
effecitve at stilimutlating demand easily copied steal slaes form future reucde prercived porudct vlaue |
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Product Palcement?
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Introduce new products demonstrate product use
positive message in a non-commercial setting little control over presentation or product |
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The Promtion Decistion Process?
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1. Planning- developing the promtion program
2. Implementation- Executing the promtion program 3. Control- Evaluating the promotion program |
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Planning (PDP)?
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Idnetiify the traget audience
set the objectives set the budget select the right promtional elements design the promtion schedule the promtion |
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Implementatoin (PDP)?
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pretest the ormotion
carry out the promiotn |
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Control (PDP)?
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Posttest the pomtion
make needed changes |
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Media Elements?
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TV
radio INteractive Direct Outdoor |
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Televistion?
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reaches large audinces can target specific audiences
high cost to prepare and run ads short exposure time and perishable message diffiuclt to convey information |
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Radio?
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Low cost cna target specific local audiences ad nd cna be placed quickly
no viusla element, shor texposure tome and perisbale message, dififuclt to convey complex informatoin |
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Magazine?
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cna target speciific aduience hgih qulaity andc can convey compelx informatoin
long time neede dto palce ad reletivily hgih ocst competes for attentoin with other magiaze feautres |
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Newpapers?
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Excellent coverage of loacla markets ads cna be palced and changed quickly, quick cutomer reponse low cost
ads compete for attentoin with other newspaper features, shorter life span, poor colr |
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Internet?
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vidieo and audio capabilites ads can ber interatice and link to advertiser
annimaoitn and interactivity require large fiels and more time to load effectivness is sitll uncertian |
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Outdoor?
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Low coast locla makret focuse hgih visability opporutinty for repeat exposuers
Messages must be short and simpel low slecetiivty of audience criticized as a trafic haxzard |
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Direct Mail?
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High slelctivity of aduience cna ontinan comple informaotin and perosnlaized messages high quliaty grapchics
hihg cost per ocntac, poor image juck mail |
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Advertising Media?
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Timing
Reach Cost Frewunecy IMpcat |
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Reach?
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Number of target consumers exposed to an ad within a certain time period
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Frequency?
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Number of times thereached target consumer are exposed to n ad within a certain time
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Timing?
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Availiabilty of the media
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Cost Per Thousand?
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CPM= (cost of ad *1000)/ # of reached target consumers
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IMC Planning?
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Objectives Setting
Budget Decisions Message Decioins Media Decisoins Scheduling |
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Aided Recall?
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Marketers show customers an ad then ask where they have seen it in the past
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Unaided Recall?
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Meakter ask participants what ads they saw recnetly
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Attitude tests?
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Meauser how effective ad is in creating favorable attituide
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Inquiry test?
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includes offers requiring some type of resonse in the ad. the number of inquires that result is a meauser of the ads effectiveness
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Sales Test?
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Invlove an effort to find the links between advertising and slaes
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Salesforce Management?
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Slaes tasks
Workload Compensation Supervison Motivnation Slection training Skills Slaes Reutls |
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Sales tasks?
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Order getting order taking supporting
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Know the targets?
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Compny
others influencers buyers deciders gatekeepers buying center |
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In-House vs. Outsourced Decistions?
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Motivatoin of slaes force
experience access to decsion makers specialization or availabilty covreage customer requiremnts costs |
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Sales force cost drivers?
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Slaeris
invcentives benifits transportation to make calls trips and operation of stnads booth at trade sows trainign prizes for slaes contests |
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N= S / P
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N= the number of salespersion needed
S= forcated slaes voulume P= estimated productivity of a slaesperoins |
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Breakdown Method?
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All salespeople have the same productiivty potential
conceptually cimple seasy to use treats slaes force size as a consequnece of lslaes volume doens't acount fro idfferences in abilites doesnt acocunt for differences in the level of competiton acress slaes teritories |
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Work Load or Buildup Method?
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all seal esperosnel shoudl shoulder an equal amount of work
expliciity recognizes differences in the needs of differencet accoutns the inputs are reaily availble or easy to acquire sues the smae slaes responcse curve done't explicity consider the profitablity of call frequnecies assuems that every slaes person uses thier time the wsme way with the same efficiency |
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Work Load Method (6) Steps?
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1. classify accounts into categories
2. determine frequneincy and length of calls for acocunt sin each category 3. caluclate work load to cover entire market 4. Determine time available per salesperons 5. Apportion slaespeson's time by task performed 6. Claulate the nubemr of salespeopl needed |
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Incemental Method?
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Sales personel should be added as long as the incremetnal profit produced by thier addition exceeds the incremental costs
decresing returns can be expected with addtional sales people the most difficult to implement the cost of an additonal salesperson can be estimated with accuracy, estimating the likely profit is difficult. The profit is driven by revenue territotry, structure, product mix. |
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Compensation?
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Straight Slary
Straight Commission Combinatoin Plan |
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Stright Salary?
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Suful for new slaes reps, when slaes reps mus tprform many non slelin g activiites, provided slaes reps with the maximum amount of security, easy to administer, yeild more predicitable selling expenses, privdes no incentive, closer suervision of slaes reps activites
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Stright Commision?
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When highly agressive selling is required
when the compnay can not closly contorl slaes force activities, privided th emaximum amount fo incnetive, Selling expeinse relate to slaes resources, slaes reps have little financial scurity may coause reps to proivde inadiquite serivce to smaller acocunts sleling costs are less prediciatable |
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Combination Compensation?
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When slaes teritories have simliaer slaes prpotentials
when frim shichse to provide incentive but still force activites, prived a levle of financial scurity proides soem incentive selling expinses flucutate with sles reveunes selling expsinese are less preduciable, dififuclt to adminsister |
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Sales Person Must Have?
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Must have: product knowledge, competitive knowledge, communicative influence skills
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Slaes Perons Must Be?
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Must be: advisor, relationship builder, problem solver, customer advocate, deal maker
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Sales Person Qualities?
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Ambition, self-disapline,, depndabilty, initiaitve, stabiltiy, thorougness, loyalty, empathy, sincerity, positive, cooperative
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