MKGT 330 Exam 2

1.The test marketing stage 2.If Parkland School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools, this modification is most likely to be viewed as a(n) ____ modification. 3.Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

1.is a sample launching of the entire marketing mix. 2.Functional 3.False

Why do you think it's important for a marketer to consider each product type, style, and packaging differently?

-We want our customers to see it differently and have it stand out from its competitors

1.Line extensions are less common than other new products because line extensions are more expensive and more risky. 2.Head-to-head positioning can be appropriate even when the price is higher. 3.What is the primary distinction between a line extension and a product modification? 4.The decision to drop a product should always be a unanimous decision of the management team. 5.Ideally, test marketing should follow which stage in the new-product development process?

1.False 2.True 3.With product modifications, the original product is replaced in the product line while both the old and the new products remain in the case of line extension. 4.False 5.Product development

1.Durable goods such as appliances generally reach their target markets through ____; goods such as automobile tires generally reach their target markets through _____. 2.Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of 3.Large retailers such as Macy's and Walmart are most likely to participate in which of the following channels? 4.Marketing intermediaries can reduce the cost of exchanges. 5.The nonprofit organization does not need to develop a strategy for each of the marketing mix variables of product, price, distribution, and promotion. 6.The U.S. economy is now referred to as a(n)____________. 7.Which of the following is NOT a service product? 8.Customers are the ultimate judges of good service quality.

1.Selective distribution; selective distribution 2.channel conflict caused by inefficient communication between channel members 3.Producer, retailers, consumers 4.True 5.False 6.Service Economy 7.Tennis Racket 8.True

Customer Service Value:

Delivery and installation, financing arrangements, customer training, warranties and guarantees, repairs, layaway plans, convenient hours of operation, adequate parking, toll-free numbers, and websites

Retail Positioning

Identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment Many discount and specialty store chains have positioned themselves to appeal to time- and cash-strapped consumers with convenient locations and layouts as well as low prices

Intensity of Market Coverage:

Intensity of market coverage describes the number and kinds of outlets in which a product will be sold. Variables that affect the intensity of market coverage include: • Replacement rate • Product adjustment (services) • Duration of consumption • Time required to find the product

Direct marketing

Online Retailing, Catalog Marketing, Direct Response Marketing, Telemarketing, Television Home Shopping, and Vending.

Consumer products:

Products purchased to satisfy personal and family needs. Consumer Product Categories: · Convenience Products: Staples, Impulse, and Emergency · Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort. o Bread, gum, soda, bananas, and Drano · Shopping Products: Homogeneous and Heterogeneous · Items for which buyers are willing to expend considerable effort in planning and making purchases. o Stove, car, shoes, bike, and fan. · Specialty Products: Items with unique characteristics that buyers are willing to expend considerable effort to obtain. o Rings, wedding dress, Halloween costume, and pizza shoes. · Unsought Products: New unsought and Regularly unsought · Products purchased to solve a sudden problem, products of which customers are unaware, and products that people do not necessarily think of buying. o Towing services and coffin

Types of Retail locations

· Brick and mortar: physical location · Direct: Catalog, Telemarketing, TV Home Shopping, Online · Online: Websites & App

Retailer

An organization that purchases products for the purpose of reselling them to ultimate consumers. Retailers are also called Traditional and Online. • There are more than 1 million retail establishments in the United States, and they employ nearly 16 million people. • Retailers contribute $1.1 trillion, or 5.9 percent, directly to the U.S. gross domestic product

Location

Location is critical to business success. • Retailers consider various factors when evaluating potential locations, including: • Position of the firm's target market within the trading area • Kinds of products being sold • Availability of public transportation • Customer characteristics • Placement of competitors' stores • Location is the least flexible variable of the marketing mix. • Location is an important strategic decision that dictates the limited geographic trading area from which a store draws its customers

Business Products:

Products bought to use in a firm's operation, to resell, or to make other products. · Purchased to satisfy the goals of the organization.

What are products

Products include: actual item, packaging, instructions, warranty, customer service, liability, software updates, and additional options.

Product width and Depth:

Product Depth: · The average number of different products in each product line (vertical). Product width: · The number of product lines a company offers. (horizontal)

What is a product

Core product: Consists of a product's fundamental utility or main benefit. Is usually a fundamental need of the consumer. Supplemental Features: Provide added value or attributes that are in addition to the product's core utility or benefit. Often include perks. Are not required to make the core product function effectively. Help differentiate the product brand from another. Symbolic or Experiential Benefits: Customers receive benefits based on their experiences with the product, which give symbolic meaning to many products (and brands) for buyers. Buyers purchase the benefits and satisfaction they think the product will provide.

Transportation Methods

Transportation - The movement of products from where they are made to intermediaries and end users. · Railroads: Heavy, bulky freight and long distances over land · Trucks: Most flexible schedules and routes, more expensive and vulnerable to bad weather, Size and weight restrictions · Waterways: Cheapest method, Heavy, low-value nonperishable goods, Markets must be accessible by water · Airways: Fastest and most expensive, High-value, low-bulk, or perishable goods · Pipelines: Most automated, Slow, relatively low cost, Dependable, Contents subject to shrinkage

Distibution Channels

· Direct channel: Producer to consumer · Indirect channel: is a sales channel in which goods and services are sold indirectly from the producer through independent middlemen to final users. If there is any intermediary between the producer and the end user, the sales channel can be considered indirect. · Dual channel: Dual distribution involves extending an offering through two or more channels in order to reach customers. · Intermediary channel: are the external groups, individuals and businesses that help a company deliver its products to customers. They act as agents between the original creator of the merchandise and the consumer who makes the last purchase.

1.George just bought a new phone. However, almost immediately he started experiencing glitches. George called the phone company's helpline. He was surprised to find that the helpline was entirely automated. The automated helpline described some common problems that customers might experience and provided instructions on what to do. George followed the instructions and his phone started working correctly. Although George was happy that the problem was fixed, he was frustrated that the entire process was automated. George would prefer to have a higher degree of ____________________ when he calls in to ask for help. 2.You are considering hiring an outside consultant to help you improve your services business. You believe your most pressing issue is how to maintain consistent quality in the delivery of your services. Your customer surveys suggest you need to work on this very important issue. Based on this, you should be looking for a consultant who has experience in dealing with the _______________ issue related to services.​ 3.Safe Auto Insurance advertises "minimum coverage for minimum budgets" for its automobile insurance. Which of the following best describes Safe Auto's approach? 4.Wendy had to get braces for her crooked teeth. She picked out the color bands she liked best, and her orthodontist put the braces on. For several days afterward, Wendy's mouth was sore. She was not sure if this was normal or not. She figures that different people probably have different experiences. Despite not knowing, she has a lot of faith in her orthodontist as he has a great reputation and has never steered her wrong before. Wendy was able to evaluate the bands used for her braces using ____________ qualities. She evaluates the doctor's expertise and service based on _____________ qualities. 5.As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.​

1.Customer contract 2.Heterogeneity 3.For some services, customers look for the low-cost provider, which is what Safe claims to be. 4.search; experience 5.​it allows you to customize your services to match the specific needs of individual customers

1.Agents and brokers perform more functions than limited-service wholesalers. 2.Supermarkets specialize in selling shopping products. 3.Warehouse clubs are able to offer a broad range of merchandise because their product lines are shallow and their sales volumes high. 4.You are part of an investment group that is planning to open a warehouse club in your hometown. There are a number of considerations that you will have to address in order for this venture to be successful. Which of the following statements is true regarding warehouse clubs? 5.What are the primary advantages and disadvantages of a franchise arrangement for a franchisee? 6.The primary product offered by the department stores is convenience. 7.Mail-order wholesalers are limited-service wholesalers who sell through catalogs to retailers and organizational customers. 8.By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform all of the following physical distribution activities except 9.Sam's Club and Costco are examples of

1.False 2.False 3.True 4.They are members-only selling operations. 5.Advantages: -less risk -easier acess to funding -training and support Disadvantages: -lack of control -costs -poor execution 6.False 7.True 8.Unit pricing 9. Warehouse clubs

1.Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees) 2.A church's marketing objective could be to inform the public about its doctrine and convince people to become members 3.Miles, sales manager for Enterprise Lumber, tells Julian, the firm's inventory manager, that the firm's failure to have adequate supplies of pressure-treated lumber on hand has cost the firm $175,000 in lost sales. This figure represents which of the following inventory management costs? 4.Product availability is dependent on transportation functions 5.Long-term commitments usually characterize the relationships among channel members. 6.When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is 7. Alibaba is a Chinese e-commerce firm similar to Amazon.com. It has increased its power and global influence with strong leadership from its founder, including knowing when to acquire other organizations. For instance, in addition to acting as a platform for buyers to purchase products, it also acquired firms in the delivery and payments industries so it would have more control over the entire process. Alibaba's acquisitions are an example of 8.The supply chain begins with______________ and ends with_________________.

1.False 2.True 3.Stockout 4.True 5.True 6. Six 7. Vertical channel integration 8.Raw materials; customers

1.Catalog marketing is one of the more flexible types of direct marketing 2.Trey chooses to have his hunting equipment store in a location away from the main part of town so that he can have a large parking lot and an outdoor range for customers to test out his merchandise. Trey's store is 3.An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n) 4.A franchise is an arrangement in which a supplier grants dealers the right to sell products in exchange for some type of consideration. 5.Retailers play a major role in creating all of the following except 6.Laura Spencer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying with her credit card. This is an example of 7.A retailer is an organization that purchases products for the purpose of reselling them to 8.What type of retailing began with Montgomery Ward in the late 1800s? 9.Jim owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Jim is a

1.False 2.a free-standing structure. 3.lifestyle shopping center. 4.True 5.spatial utility. 6.television home shopping. 7.ultimate consumers. 8.Catalog marketing 9.merchant wholesaler.

Development Process:

1.Idea Generation: • Seeking product ideas to achieve organizational objectives. Product ideas can come from any source internally or externally. Some firms offer incentives for employees and customers to make product suggestions. 2.Screening: • Selecting the ideas with the greatest potential for further review. Product ideas are analyzed to determine if they match the organization's mission, objectives, and resources. A firm's overall abilities to produce and market the product are also analyzed. Most product ideas are rejected during the screening phase. 3.Concept Testing: • Seeking a sample of potential buyers' responses to a product idea. Evaluate ideas based on customer feedback. Produce low-cost drawings or other areas to help customers gain feedback. 4.Business analysis: Evaluating the potential impact of a product idea on the firm's sales, costs, and profits. Marketers ask a series of questions and attempt to answer them through market information. The results of customer surveys, along with secondary data, supply the specifics needed to estimate potential sales, costs, and profits. Forecast future sales. Product Development: Determining if producing a product is technically feasible and cost effective. Develop a prototype. Assess the design and make adjustments prior to mass production. 5.Test marketing: • A limited introduction of a product in geographic areas chosen to represent the intended market. The aim is to determine the extent to which potential customers will buy the product. Companies use test marketing to lessen the risk of product failure. 7.Commercialization: • Refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product. Product enters the market. Selective distribution Product Differentiation: • Product differentiation - Creating and designing products so customers perceive them as different from competing products o Consumer perception is critical in differentiating products. o Three aspects of product differentiation companies must consider when creating and offering products for sale: Product quality, product design and features and product support services.

1.The ability to customize services to match the specific needs of individual customers is an advantage to service marketers and may lead to standardized packages. 2.Selecting a marketing mix is the first step in developing any nonprofit marketing strategy. 3.There are five elements that affect customers' perceptions of service quality. They are reliability, appearance of the tangibles, responsiveness, assurance, and 4.An advantage of heterogeneity is that services can be customized. 5.Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a particular service 6.A hair stylist who gives good haircuts in the morning but tends to give haircuts of lesser quality in the afternoon is suffering from the challenges associated with intangibility 7.Analyzing __________ can help a firm identify patterns that may indicate the need for corrective action or suggest market opportunities that can be exploited. 8.Surveys, focus groups, and customer comment cards are all methods used by service companies to

1.True 2.False 3.Employee Empathy 4.True 5.True 6.False 7.Complaints and reviews 8.Understand customers needs and expectations

1.Direct selling is the most expensive form of retailing 2.Wholesalers rarely handle credit for retailers and producers. 3.Adara owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Adara is focusing on 4.The broker's primary function is to bring the buyer and seller together and assist in negotiating an exchange. 5.Zoe is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time? 6.The franchisor supplies the labor and capital in the franchise relationship 7.All of the following are types of limited-service merchant wholesalers except 8.Which of the following is NOT an advantage of franchising for the franchisee? 9.New store formats and technological advances are helping retailers serve customers better.

1.True 2.False 3.atmospherics. 4.True 5.Location 6.False 7.specialty-line wholesalers. 8.The franchisee gives up a certain amount of control when participating in a franchise agreement. 9. True

1.Cost, speed, load flexibility, dependability, frequency, and accessibility are considered when choosing a transportation mode. 2.____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used. 3.Which of the following is the most commonly used channel for distributing business products? 4.A public warehouse is a 5.Long-term commitments usually characterize the relationships among channel members. 6.Firestone allows companies like Sears and Discount Tire to distribute and discount its tires. This action significantly increases the possibility of channel ____ with independent Firestone dealers. 7.The United States Postal Service works hard to get priority mail from the sender to the recipient as quickly as possible in order to compete with companies such as UPS and FedEx. The postal service is competing with UPS and FedEx in terms of 8.High-contact services typically require that the

1.True 2.Transportation 3.Producer, organizational buyers 4.business that leases storage space and related facilities for logistics to other firms 5.True 6.Conflict 7.Cycle time 8.Customer go to the production facility

1.Both production and consumption of services occur at the same time 2.Service quality guarantees are examples of customer services. 3.Many services base their success on building a group of satisfied customers who use their services on a regular basis over long periods of time. This critical component of success is referred to as 4.Retailers are frequently found in business product channels. 5.A marketing channel is not the same thing as a distribution channel. 6.On-time deliveries may give a firm a competitive edge. 7.Having products available when customers want them creates 8.If a company's products require differentiation at the point of purchase, it will most likely use

1.True 2.True 3.Client-based relationships 4.False 5.False 6.True 7.Time utility 8.Selective Distribution

1.Bread is usually a convenience product. 2.A brand name is the part of the brand that is spoken. 3.The width of a product mix refers to the number of generic products offered by a company. 4.The label on a window air conditioner reads "uses up to 20% less energy." For what reason is this phrase most likely used? 5.The brand name Hamburger Helper would most likely be considered 6.Many products are in the maturity stage of the product life cycle.

1.True 2.True 3.False 4.To promote the product 5.Sugestive 6.True

1.Intense price wars are likely to occur during the growth stage of the product life cycle as competitors attempt to gain market share. 2.Promotion decreases in importance during a product's decline stage. 3.Sandwich bread would more likely be packaged in a green wrapper than a yellow one. 4.Laggards are the last to adopt a new product and usually distrust new products. 5.Which of the following is NOT a business product?

1.True 2.True 3.False 4.True 5.Calculators bought to help individuals complete their personal federal income tax forms

1.The following organizational approaches accomplish tasks necessary to develop and manage products: market manager approach, product manager approach, and the ____ approach. 2.You work in the marketing department of Colgate-Palmolive (CP). CP recently made the announcement that it was going to delete certain brands that were not meeting profit expectations. You are part of the team to help in this product deletion process. You and your team get together to discuss a brand of soap that has seen sales decrease in recent years. The team discusses how you should delete the product. Each of you writes down comments regarding your thoughts about the brand. The comments can be summed up as follows: ​ "The brand is not doing well, but it still has a loyal following among some consumers." "I think this brand still has some strengths left." ​ Based on these comments, which product deletion strategy should the company adopt? 3.Styling involves the specific design characteristics that allow a product to perform certain tasks. 4.Select the true statement concerning test marketing. 5.Which of the following is an example of a functional modification? ​

1.Venture team 2.Run-out 3.False 4.Test marketing is a limited introduction of the product in areas chosen to represent the intended market. 5.Planters Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open.

1.The three major ways to modify a product include 2.Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features. 3.An important question in the business analysis stage of new-product development is "Is demand strong enough to justify entering the market and will this demand endure?" 4.Repositioning requires changes in perception but not usually changes in product features. 5.Dorito's has expanded to Nacho Cheese Doritos, Cool Ranch Doritos, and Salsa Verde Doritos, to name a few. These are examples of

1.aesthetic, quality, and functional changes. 2.False 3.True 4.False 5.Line extensions

1.Business products are 2.Many products are in the maturity stage of the product life cycle. 3.Packaging can be used to communicate symbolically the quality or premium nature of a product. 4.Darlene loves going shopping. After a long day at work, she stops by a local shopping center. First, she decides to stop by Barnes & Noble. Darlene's favorite bookshop is the small, locally-owned bookshop close to her home, but she visits Barnes & Noble because it is convenient. Next, she stops by a local Starbucks, where she likes to try new things. When she looked at the menu, she saw the name of a new latte she had heard about from friends and decided to try it. Then she went to Ulta to pick up some lipstick that she has run out of. However, when she gets there, Darlene finds Ulta is out of her lipstick brand and color. She is tired after her long day and annoyed that they are out of the lipstick. Because it is her favorite brand, Darlene decides she will just have to come back another day. Darlene displays ______________ for Barnes & Noble, _____________ for the latte at Starbucks, and ________________ for the lipstick. 5.A major advantage of using individual branding is that

1.classified according to their characteristics and intended uses. 2.True 3.True 4.brand preference; brand recognition; brand insistence 5.a poor-quality product will not contaminate all of the company's other products with negative images.

1.In marketing, family packaging means 2.Brand and product managers operate cross-functionally. 3.Many of the so-called new products that are launched each year are in fact line extensions. 4.New-product development does not include planning for advertising. 5.____ and ____ are important characteristics of quality for consumer markets, and ____ and ____ are important characteristics of quality for business markets. 6.Which of the following is the most commonly used channel for distributing business products?

1.making all of a company's or product line's packaging look similar. 2.True 3.True 4.False 5.Ease of maintenance/durability ; company reputation /technical suitability 6.Producer, organizational buyers

1.A product item is best described as a 2.Process materials are used directly in the production of products. 3.During the maturity stage 4.A product line is defined as 5.A product mix is best described as

1.specific version of a product. 2.True 3.some competitors are forced out. 4.a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations. 5.all products offered by a firm.

Marketing Channel

A group of individuals and organizations that direct the flow of products from producers to customers within the supply chain. • Also called a channel of distribution or distribution channel • Goal is to make products available at the right time at the right place in the right quantities • Customer satisfaction should be the driving force behind marketing channel decisions

Products:

A product is a good, a service, or an idea, received in an exchange. In terms of marketing, products are very specific. · A product can either be tangible or intangible and includes functional, social, and psychological utilities or benefits. · Types of products: o Good: A tangible physical entity. o Service: An intangible result of the application of human and mechanical efforts to people or objects. o Idea: A concept, philosophy, image, or issue.

Specialty Retailers

In contrast to general-merchandise retailers with their broad product mixes, specialty retailers emphasize narrow and deep assortments. Despite the name, they do not sell specialty items but instead offer substantial assortments in a few product lines. · Traditional Specialty Retailers - Stores that carry a narrow product mix with deep product lines • Apparel, Jewelry, Sporting Goods, Fabrics. For example. Old Navy. · Category Killers - A very large specialty store that concentrates on a major product category and competes based on low prices and product availability • Pet Supply Stores, Home Improvement Stores, Office Supply Stores. For example, Menards · Off-Price Retailers - Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts • Discount Clothing, Surplus Supplies, Off-Season Merchandise. For example, Ross

Business Product categories

Installations: Facilities and non-portable major equipment Accessary equipment: Equipment that does not become part of the final physical product but is used in production or office activities. Raw materials: Basic materials that become part of a physical product. Components parts: Items that become part of a physical product and are either finished items ready for assembly or items that need little processing before assembly. Process materials: Materials that are used directly in the production of other products but are not readily identifiable. Maintenance, repair, and operations (MRO) supplies: Maintenance, repair, and operating items that facilitate production and operation but do not become part of the finished product. Business services: Intangible products that many organizations use in their operations. Examples: 1. Specialized—Specialized services that support a firm's operations. Professional services 2. Processed expense items—Processed expense items that become part of a finished product. Component parts and materials 3. Not part of finish—Expense items that do not become part of a finished product. maintenance and repair supplies 4. Important capital items—Important capital items such as buildings, land rights, and major equipment. Installations 5. Unprocessed expense items—Unprocessed expense items, such as logs, iron ore, and wheat that are moved to the next production process with little handling. Raw materials 6. . Short-lived capital items—Short-lived capital items, tools, and equipment used in production or office activities. Accessory equipment

Supply Chain

Logistics management - Managing the efficient and effective flow of materials, products, and information from the point of origin to consumption. Operations management - Managing activities from production to final delivery through system-wide coordination. Supply chain management (SCM) - The coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer. • Integrates operations, logistics, supply, and marketing channel management, so products are produced and distributed in the right quantities, to the right locations, and at the right times • Includes activities such as manufacturing, research, sales, advertising, and shipping • Involves all entities that facilitate product distribution and benefit from cooperative efforts

Wholesaling Wholesaler

Transactions in which products are bought for resale, for making other products, or for general business operations. An individual or organization that sells products that are bought for resale, for making other products, or for general business operations.

product development

· A firm develops new products as a means of enhancing its product mix and adding depth to a product line. The term "new product" can represent a variety of different reasons a product may be developed. · An innovative product that has never been sold by any organization. For example, robot vacuum cleaner. · A modified product that existed previously. For example, iPhone 13 vs iPhone 14 · A product that a given firm has not marketed previously, although similar products are available from other companies. For example, Netflix, Hulu, and Disney Plus. · A product that is brought to one or more markets from another market. For example, pipe cleaners but we actually use them for arts and crafts. Black pipe used for gas and now we use it for décor, like shelfing brackets.

Consumer Buying Process:

· Innovators: First adopters of new products · Early adopters: People who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters. · Early majority: individuals who adopt a new product just prior to the average person. · Late majority: Skeptics who adopt new products when they feel it is necessary. · Laggards: The last product adopters, who distrust new products (non-adapters)

Product Life Cycle:

· Market introduction: The initial stage of a product's life cycle, its first appearance in the marketplace, when sales start at zero and profits are negative. · Market growth: Which sales rise rapidly, profits reach a peak, and then profits start to decline. · Market maturity: which the sales curve peaks and starts to level off or decline, and profits continue to fall. · Sales decline: sales fall rapidly

Marketing Channel Activities performed by Intermediaries:

· Marketing information: Analyze sales data and other information in databases and information systems. Perform or commission marketing research. · Marketing management: Establish strategic and tactical plans for developing customer relationships and organizational productivity. · Facilitating exchanges: Choose product assortments that match the needs of customers. Cooperate with channel members to develop partnerships. · Promotion: Set promotional objectives. Coordinate advertising, personal selling, sales promotion, publicity, and packaging. · Price: Establish pricing policies and terms of sales · Logistics: Manage transportation, warehousing, materials handling, inventory control, and communication

Product Assortment, Product line and individual

· Product item: A specific version of a product that can be designated as a distinct offering among a firm's products. For example:2-liter bottle of coca cola · Product line: A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations. For example: starbucks has product lines for beverages, food, mugs and tumblers and coffee making equiptment. · Product mix/assortment: The composite, or total, group of products that an organization makes available to customers. For example the other products coca cola makes that are not soda drinks like Minute Maid, Simply orange, and smart water.

Product adoption process:

· The five stages process of buyer acceptance of a product o Awareness: Buyer becomes aware of the product o Interest: Buyer seeks information and is receptive to learning about the product o Evaluation: Buyer considers product's benefits and decides whether to try it, considering its value versus the competition o Trial: Buyer examines, tests, or tries the product to determine if it meets the buyer's needs o Adoption: Buyer purchases the product and can be expected to use it again whenever the need for this product arises

Channel Conflict

· Vertical Conflict: takes place between two or more partner types conflicting across multiple channels. This could be a disagreement between provider and reseller, a customer acquisition conflict between a primary business and an affiliate, and other parallels. · Horizontal Conflict: happens when issues arise between two partners at the same level of distribution. This conflict tends to focus on competition overlapping sales networks, and channel saturation.*occurs when a retailer offers a low-priced product to attract the attention of consumers.*

General Merchandise Retailers:

Department Stores, Discount Stores, Convenience Stores, Supermarkets, Superstores, Hypermarkets, Warehouse Clubs, and Warehouse Showrooms

Channel Systems

· Exclusive: Lamborghini, airplane, and Rolex. Specialty type products and limited products. · Selective: Custom office furniture, perfume, and specialized bikes. Shopping type of products · Intensive: Tide Detergent, Diet coke, razor, and snickers. Impulsive buying.