Test 4 Chapter 13

Distribution Process

Marketer ⟶ Customer Service + Transportation + Warehousing + Materials Handling + Inventory Control + Order Processing ⟶ Customers

Physical Distribution

activities needed to move a product efficiently from manufacturer to consumer.

Promotion

aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product.

Channel Captain

channel member who is most powerful in determining the roles and rewards of other members.

Media Mix

combination of advertising media chosen to carry a message about a product.

Public Relations

company-influenced information directed at building goodwill with the public or dealing with unfavorable events

Supply Chain

complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers.

Channel Conflict

conflict arising when the members of a distribution channel disagree over the roles they should play or the rewards they should receive.

Direct Channel

distribution channel in which a product travels from producer to consumer without intermediaries.

Syndicated Selling

e-commerce practice whereby a website offers other websites commissions for referring customers.

Shopping Agent (e-Agent)

e-intermediary (middleman) in the internet distribution channel that assists users in finding products and prices but does not take possession of products.

Sales Agent

independent intermediary who generally deals in the related product lines of a few producers and forms long-term relationships to represent those producers and meet the needs of many customers.

Broker

independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be.

Merchant Wholesalers

independent wholesaler who takes legal possession of goods produced by a variety of manufacturers and then resells them to other organizations.

Public Warehouse

independently owned and operated warehouse that stores goods for many firms.

Intermediary

individual or firm that helps to distribute a product.

Retailer

intermediary who sells products directly to consumers.

Wholesaler

intermediary who sells products to other businesses for resale to final consumer, takes title of the goods, buy the goods from the producer, and sell them either to another wholesaler or more commonly to another retailer.

E-Intermediary

internet distribution channel member that assists in delivering products to customers or that collects information about various sellers to be presented to consumers, or helps deliver online products to buyers.

Drop Shipper

limited function merchant wholesaler that receives customer orders, negotiates with producers, takes title to goods, and arranges for shipment to customers.

Limited-Function Merchant Wholesaler

merchant wholesaler that provides a limited range of services.

Full-Service Merchant Wholesalers

merchant wholesalers that provide credit, marketing, and merchandising services in addition to traditional buying and selling services. (about 80 % of all merchant wholesalers)

Distribution Channel

network of interdependent companies through which a product passes from producer to end user.

Online Retailing

non-store retailing in which information about the seller's products and services is connected to consumers computers, allowing consumers to receive the information and purchase the products in the home. - e-Catalog ⟶ non-store retailing in which the internet is used to display products. - Electronic Storefront ⟶ commercial website at which the customers gather information about products and buying opportunities, place orders, and pay for purchases. - Cybermall ⟶ collection of virtual storefronts (business websites) representing a variety of products and product lines on the internet.

Video Retailing

non-store retailing to consumers via home television.

Missionary Selling

personal selling task in which salespeople promote their firms and products rather that try to close sales.

Warehousing

physical distribution operation concerned with the storage of goods.

Logistics

process of coordinating the flow of goods, services, and information among members of the supply chain.

Positioning

process of establishing an identifiable product image in the minds of consumers.

Pull Strategy

promotional strategy designed to appeal directly to consumers who will demand a product from retailers.

Push Strategy

promotional strategy designed to encourage wholesalers or retailers to market products to consumers, get product out in the market place.

Advertising

promotional tool consisting of paid, non-personal communication used by an identified sponsor to inform an audience about a product.

Personal Selling

promotional tool in which a salesperson communicates one-on-one with potential customers.

Publicity

promotional tool in which information about a company, a product, or an event is transmitted by the general mass media to attract public attention

Coupon

sales promoting technique in which a certificate is issued entitling the buyer to a reduced price.

Loyalty Programs

sales promotion technique in which frequent customers are rewarded for making repeat purchases.

Premium

sales promotion technique in which offers of free or reduced-price items are used to stimulate purchases.

Point of Sale (POS) Display

sales promotion technique in which product displays are located in certain areas to stimulate purchase or to provide information on a product.

Trade Show

sales promotion technique in which various members of an industry gather to display, demonstrate, and sell products.

Retail Selling

selling a consumer product for the buyer's personal or household use.

Industrial Selling

selling products to other businesses, either for the purpose of manufacturing or for resale.

Sales Promotion

short-term promotional activity designed to encourage consumer buying, industrial sales, or cooperation from distributors.

Closing

step in the personal selling process in which salespeople ask prospective customers to buy products

Qualifying

step in the personal selling process in which salespeople determine whether prospects have the authority to buy and ability to pay

Prospecting

step in the personal selling process in which salespeople identify potential customers

Selective Distribution

strategy by which a company uses only wholesalers and retailers who give special attention in sales effort to specific products.

Exclusive Distribution

strategy by which a manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers or retailers in a given geographic area.

Intensive Distribution

strategy by which a product is distributed through as many channels as possible.

Advertising Media

variety of communication devices for carrying a seller's message to potential customers.

Private Warehousing

warehouse owned by and providing storage for a single company.

Promotional Mix

- Combination of tools used to promote a product. - Five of marketing's most powerful promotional tools are Advertising, Personal Selling, Sales Promotions, Direct or Interactive marketing, and Publicity & Public Relations. - The most important is the target audience.

Types of Brick-and-Mortar Retail Outlets

- Department Store ⟶ large product line retailer characterized by organization into specialized departments. - Supermarket ⟶ large product line retailer offering a variety of food and food related items in specialized departments. - Specialty Store ⟶ retail store carrying one product line or category of related products. - Bargain Retailer ⟶ retailer carrying a wide range of products at bargain prices. - Discount Houses ⟶ bargain retailer that generates large sales volume by offering goods at substantial price reductions. - Catalog Showroom ⟶ bargain retailer in which customers place orders for catalog items to be picked up at on-premises warehouses. - Factory Outlet ⟶ bargain retailer owned by the manufacturer whose products it sells. - Wholesale Club ⟶ bargain retailer offering large discounts on brand name merchandise o customers who have paid annual membership fees. - Convenience Store ⟶ retail store offering easy accessibility, extended hours, and fast service.

Non-Store Retailing

- Direct Response Retailing ⟶ form of non-store retailing in which firms directly interact with customers to inform them of products and to receive sales orders. - Mail Order (catalog marketing) ⟶ form of non-store retailing in which customers place orders for catalog merchandise received through mail. - Telemarketing ⟶ form of non-store retailing in which the telephone is used to sell directly to consumers. - Direct Selling ⟶ form of non-store retailing typified by door-to-door sales.

Wholesale Distribution

- Independent operations that buy products from manufacturers and sell them to various consumers or other businesses. - Usually provide storage, delivery, and additional value adding services, including credit, marketing advice, and merchandising services, such as marking prices and setting up displays.

Direct (or Interactive) Marketing

- One-on-one non-personal selling by non-store retailers and B2B sellers using direct contact with prospective customers, especially via the Internet. - This fast-growing selling method includes non-store retailers (catalogs, telemarketing, home video shopping), direct mail, direct response advertising (such as infomercials and direct response magazine and newspaper ads), and most important, the Internet. - When used by B2B businesses, direct marketing is primarily lead generation so a salesperson can close the sale where interest has been shown. In B2C businesses, it has primarily a selling goal.

Personal Selling Tasks

- Order Processing ⟶ personal selling task in which salespeople receive orders and arrange their handling and delivery. - Creative Selling ⟶ personal selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits.

Sales Process

1) Prospecting and Qualifying (identify potential customers). 2) Approach (prepare for the sales interview). 3) Presentation (tell the products story). 4) Demonstration (involve the customer in the presentation). 5) Handing Objectives (answer the prospects questions). 6) Closing (ask for the order). 7) Follow Up (thank the customer and begin the process maintaining mutually beneficial relationships that result in future sales).

Distribution Mix

combination of distribution channels by which a firm gets its products to end users. The success of any product depends on its distribution mix.

Retail Distribution

- producers distribute consumer products through retailers. - Requires a large and costly amount of floor space for storing and displaying merchandise at brick and mortar facilities. - Wholesalers relieve the space problem by storing merchandise and restocking store displays frequently.