MARKETING EXAM 3

anticipate objections

Southern Security makes safes for storing valuables such as jewelry and family records. When Ed sold safes for the company, he had to be prepared with a response when a prospect said, "I have no room for a safe" or "My family heirlooms aren't valuable enough to put in a safe." In other words, Ed had to ________.

nonstore retailing

Stan Clark, the owner of Eskimo Joe's bar in Stillwater, Oklahoma, is considering closing the bar and selling the logo apparel with direct marketing exclusively through a catalog. Stan Clark is considering a(n) ________ option.

Omnichannel Marketing

a retail strategy that provides a seamless shopping experience, whether the customer is shopping online from a desktop or mobile device, by telephone or in a brick-and-mortar store

Enterprise Resource Planning (ERP) Systems

a software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing, and transportation, and then facilitates sharing of the data throughout the firm

dual or multiple distribution systems

a system where producers, dealers, wholesalers, retailers, and customers participate in more than one type of channel

wheel-of-retailing hypothesis

a theory that explains how retail firms change, becoming more upscale as they go through their life cycle

Corporate VMS

a vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operations

Administrated VMS

a vertical marketing system in which channel members remain independent but voluntarily work together because of the power of a single channel member

Contractual VMS

a vertical marketing system in which cooperation is enforced by contracts (legal agreements) that spell out each member's rights and responsibilities and how they will cooperate

distribution center

a warehouse that stores goods for short periods of time and that provides other functions, such as breaking bulk

inventory control

activities to ensure that goods are always available to meet customers' demands

supply chain

all the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer

horizontal l marketing system

an agreement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose

diverter

an entity that facilitates the distribution of a product through one or more channels not authorized for use by the manufacturer of the product

intranet

an internal corporate communication network that uses internet technology to link company departments, employees, and databases

marketing intermediaries

are the companies and individuals who assist in moving products to the consumer.

independent intermediaries

channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers

merchandise agents or brokers

channel intermediaries that provide services in exchange for commissions but never take title to the product

selective distribution

distribution using fewer outlets than intensive distribution but more than exclusive distribution

breaking bulk

dividing larger quantities of goods into smaller lots in order to meet the needs of buyers

wholesaling intermediaries

firms that handle the flow of products from the manufacturer to the retailer or business user

facilitated functions

functions of channel intermediaries that make the purchase process easier for customers and manufactures

Communication and transaction functions

happens when channel members develop and execute both promotional and other types of communication among members of the channel

reverse logistics

includes product returns, recycling and material reuse, and waste disposal

channel conflict

incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacturer's distribution strategy

merchant wholesalers

intermediaries that buy goods from manufacturers (take title to them) and sell to retailers and other B2B customers

channel of distribution

is a series of firms or individuals that facilitates the movement of a product to a final consumer

channel cooperation

occurs when producers, wholesalers, and retailers depend on one another for success

transportation and storage

occurs when retailers and other channel members move the goods from the production point to other locations where they can hold them until consumers want them

In the television show Bones, the main character prominently drives a Toyota Prius. Toyota is using what strategy in this example?

product placement

Radio Frequency Identification (RFID)

product tags with tiny chips containing information about the item's content, origin, and destination

perpetual inventory unit control system

retail computer system that keeps a running total on sales, returns, transfers to other stores, and so on

point-of-sale (POS) system

retail computer systems that collect sales data and are hooked directly into the store's inventory-control system

automatic reordering system

retail reordering system that is automatically activated when inventories reach a certain level

exclusive distribution

selling a product only through a single outlet in a particular region

intensive distribution

selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product

warehousing

storing goods in anticipation of sale or transfer to another member of the channel of distribution

-provide time, place, and ownership utility. -provide logistic and physical distribution. -create efficiencies by reducing the number of transactions.

what are functions of distribution channels

full-service merchant wholesalers

wholesalers that provide a wide range of services for their customers, including delivery, credit, product-use assistance, repairs, advertising, and other promotional support

limited service merchant wholesalers

wholesalers that provide fewer services for their customers

stock- outs

zero-inventory situations resulting in lost sales and customer dissatisfaction

public relations

Which of the following promotion tools is most closely associated with building up a positive corporate image and handling unfavorable stories and events?

Understand the target audience

Which of the following should be the first step of developing an advertising campaign?

offer greater efficiency in making goods available to consumers

Why do producers benefit from intermediaries?

corporate

________ advertising promotes the company as a whole instead of the firm's individual products.

Coupons

________ are the most common price promotion.

distribution channel

__________ __________ functions increase efficiency of the flow of goods from producer to customer:

direct channel

a channel of distribution in which a manufacturer of a product or creator of a service distributes directly to the end customer

vertical marketing system

a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels

knowledge management

a comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets

Franchise organization

a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process

gray market

a distribution channel in which a product's sale to a customer may be technically legal, but is at a minimum considered inappropriate by the manufacturer of the related product. Gray markets often emerge around high-end luxury goods sold through exclusive distribution

slotting allowance

a fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space

retailer cooperative

a group of retailers that establishes a wholesaling operation to help them compete more effectively with the large chains

level loading

a manufacturing approach intended to balance the inventory holding capabilities and production capacity constraints of a manufacturer for a particular product through the implementation of a consistent production schedule, employed both during and beyond periods of peak demand

hybrid marketing system

a marketing system that uses a number of different channels and communication methods to serve a target market

conventional marketing system

a multiple-level distribution channel in which channel members work independently of one another

subscription boxes

a new business model for distribution that supplies surprises by sending out a box each month filled with items you never knew you wanted but you just have to have

Insourcing

a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations

sampling

Of the major consumer promotion tools, which is the most effective for introducing a new product?

beacon marketing

a retail marketing strategy in which beacon devices are placed strategically throughout a store and emit a Bluetooth signal to communicate with shoppers' smartphones as they browse the aisles of the store

Roles of Distribution Channels

-Breaking bulk -Creating assortment -Transportation and storage -Facilitating functions -Risk taking functions -Communication and transaction functions

prospecting

After salesperson, Victor, has made a sale, he asks his customer if she knows of anyone else who might also be interested in buying his products. Referrals such as these are one method used in ________.

Just-in-time (JIT)

An inventory-management approach in which supplies arrive just when needed for production or resale

breaking bulk

Burt can visit his local Home Depot store and buy one lightbulb and not the case of 50 lightbulbs that the Lowe's had to buy. This is an example of how the channel of distribution facilitates ________.

destination retailer

Firm that consumers view as distinctive enough to become loyal to it. Consumers go out of their way to shop there.

channel intermediaries

Firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. An older term for intermediaries is middlemen.

horizontal

Increasingly commonplace today is the appearance of two different franchise chains under the same roof, such as Pizza-Hut and Taco Bell or A&W and Long John Silvers. This is an example of a(n) ________ marketing system.

catalog marketing

Organic Designs is a small, successful chain of stores offering stylish clothes made of all-organic materials for infants, toddlers, and young children. Most of the Organic Designs stores are located in urban areas. Now Organic Designs is considering using direct marketing to reach potential customers who live outside of the company's existing markets. Which of the following methods of direct marketing would likely be most effective in accomplishing this goal?

1. Prospect/Qualify 2. Pre-Approach 3. Approach 4. Sales Presentation 5. Handle Objections 6. Close the Sale 7. Followup

Place the following steps of the selling process in order from first (1) to last (7

publicity

Quilted Northern sent its brand mascot to help refurbish restrooms at fairgrounds across the country. As part of this project, each restroom was to provide fairgoers with a clean oasis featuring aromatherapy, soothing music, constant maintenance, and premium toilet tissue. Newspaper articles about the company's role in making restrooms inviting are an example of ________.

Convenience stores create time utility for consumers.

Which of the following is true about convenience stores?

prmary demand advertising

The Got Milk? ads, produced by milk processors and dairy farmers, encourage consumers to drink milk, but not a specific brand of milk. These ads are an example of which of the following?

the wheel of retailing hypothesis

The Home Depot entered the market as a store for professional and amateur plumbers, electricians, and carpenters. Then it introduced its garden centers. Next came its home design center that provides help with all kinds of interior decorating problems. Now it is enlarging its garden centers and hiring knowledgeable gardeners to staff these centers. The addition of more amenities and greater assortment can be best explained by which of the following?

channel power

The ability of one channel member to influence another member's goal achievement

a. convenience b. assortment c. narrow d. broad

The four ways to classify retailers according to merchandise selection are [a], [b], [c], and [d].

less control

To a producer of goods, a greater number of channel levels means ________.

develop distribution tactics

What is the last step in creating a distribution plan?

e-commerce sales may cannabalize in-store sales

Which of the following is a limitation of e-commerce for firms?

multiple distribution systems

Which of the following is in place when a producer, dealer, wholesaler, retailer, or customer interacts with more than one type of channel?

experiential merchandising

tactic whose intent is to convert shopping from a passive activity into a more interactive one, by better engaging the customer

Risk taking functions

the chance retailers take on the loss of a product when they buy a product from a manufacturer because the product sits on the shelf because no customers want it

product diversion

the distribution of a product through one or more channels not authorized for use by the manufacturer of the product

channel leader/ captain

the dominant firm that controls the channel

disintermediation (of the channel of distribution)

the elimination of some layers of the channel of distribution to cut costs and improve the efficiency of the channel

Retailing

the final stop in the distribution channel in which organizations sell goods and services to consumers for their personal use

Supply Chain Management

the management of flows among firms in the supply chain to maximize total profitability

transportation

the mode by which products move among channel member

materials handing

the moving of products into, within and out of warehouses

channel levels

the number of distinct categories of intermediaries that make up a channel of distribution

distribution intensity

the number of intermediaries at each level of the channel

Inventory Turnover

the number of times a firms inventory completely cycles through during a defined time frame

logistic

the process of designing, managing, and improving the movement of products through the supply chain. include purchasing, manufacturing, storage and transport.

distribution planning

the process of developing distribution objectives, evaluating internal and external environmental influences on distribution, and choosing a distribution strategy

order processing

the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door

online distribution piracy

the theft and unauthorized repurposing of intellectual property via the internet

digital wallet

the use of bluetooth technology that connects with customer smartphones and allows customers to pay items without cash or even swiping a credit card

take title

to accept legal ownership of a product and assume the accompanying rights and responsibilities of ownership

Physical distribution

to activities that move finished goods from manufacturers to final customers.

create assortments

to provide a variety of products in one location to meet the needs of buyers