BP Final Ch.12

What service can a wholesaler provide a manufacturer?-

"A producer uses wholesalers when its products are carried by so many retailers that the producer cannot deal with all of them."

List some common sales promotion methods directed toward consumers (rebates, coupons, samples, premiums, etc.

"A rebate is a return of part of the purchase price of a product." "A coupon reduces the retail price of a particular product by a stated amount at the time of purchase." "A sample is a free product given to customers to encourage trial." "A premium is a gift that a producer offers the customer in return for using its product or visiting an outlet." "Frequent-user incentives are programs developed to reward customers who engage in repeat (frequent) purchases." "A point-of-purchase display is promotional material placed within a retail store."

Define advertising, personal selling, sales promotion, and public relations.

"Advertising includes any paid form of nonpersonal presentation by an identified sponsor." "Personal selling is a face-to-face sales presentation to a prospective customer." "Sales promotions are marketing events or sales efforts (not including advertising, personal selling, and public relations) that stimulate buying." "Public relations (PR) is any communication or activity designed to win goodwill or prestige for a company or person."

Distinguish between an agent and a broker.

"Agents are sales representatives of manufacturers and wholesalers." "Brokers are entities that bring buyers and sellers together." "They [Agents and brokers] do not own or take possession of goods."

What is the difference between a merchant wholesaler and an agent or broker?

"All merchant wholesalers take title to the goods they sell." "They [Agents and Brokers] do not take title to or possession of merchandise."

List and define the various types of retailers and nonstore retailers.

"Departments stores - Houses many departments under one roof with each treated as a separate buying center to achieve economies of buying, promotion, and control." "Specialty stores - Specializes in a category of merchandise and carries a complete assortment." "Convenience stores Offers convenience goods with long store hours and quick checkout." "Supermarkets - Specializes in a wide assortment of food, with self service." "Discount stores - Competes on the basis of low prices and high turnover; offers few services." "Off-price retailers - Sells at prices 25 percent or more below traditional department store prices in a spartan environment." "Factory outlets Owned by manufacturer; sells closeouts, factory seconds, and canceled orders." Non-Store Retailing: "Vending machine - Sells merchandise by machine." "Direct selling - Sells face-to-face, usually in the person's home." "Direct-response marketing - Attempts to get immediate consumer sale through media advertising, catalogs, pop-up ads, or direct mail to your home." "Home shopping networks - Selling via cable television." "Internet retailing - Selling over the internet."

Define distribution and distribution channel.

"Distribution is efficiently managing the acquisition of raw materials by the factory and the movement of products from the producer or manufacturer to business-to-business (B2B) users and consumers." "A distribution channel is made up of marketing intermediaries or organizations that assist in moving goods and services from producers to end users and consumers."

What is an industrial distributor?

"Industrial distributors are independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users."

List three methods of distribution. How do those methods relate to the three types consumer goods (convenience, shopping, and specialty goods)?

"Intensive distribution is the use of all available outlets for a product." "Many convenience goods are distributed intensively." "Selective distribution is the use of only a portion or percentage of the available outlets in each geographic area." "Manufacturers of shopping goods such as furniture, major home appliances, and clothing typically prefer selective distribution." "Exclusive distribution is the use of only a single retail outlet for a product in a large geographic area." "It is appropriate for specialty goods such as upscale pianos, fine China, and expensive jewelry."

What is publicity? How much does it cost?

"Its [Public relations'] main form is publicity, information about a company or product that appears in the news media and is not directly paid for by the company." The document does not explicitly state the cost, only that it is "not directly paid for by the company"

List some advantages of personal selling.

"Personal selling provides a detailed explanation or demonstration of the product." "The sales message can be varied according to the needs and motivation of each customer." "Personal selling can be directed only to qualified prospects." "Personal selling costs can be controlled by adjust the size of the sales force in one-person increments." "Personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied customer."

How do primary-demand, selective-demand, and institutional advertising differ?

"Primary-demand advertising is advertising aimed at increasing the demand for all brands of a product within a specific industry." "Selective-demand (or brand) advertising is advertising that is used to sell a particular brand of product." "Institutional advertising is advertising designed to enhance a firm's image or reputation."

Define promotion and promotion mix

"Promotion is an attempt by marketers to inform, persuade, or remind consumers and B2B users to influence their opinion or elicit a response." "The combination of advertising, personal selling, sales promotion, and public relations used to promote a product is called the promotional mix."

List the steps in the personal selling process.

"Prospecting and qualifying" "Approaching customers in person or by making an appointment to meet with the potential customer." "Presenting and demonstrating the product" "Handling objections" "Closing the sale" "Following up on the sale"

What is the difference between reach and frequency?

"Reach is the number of different target consumers who are exposed to a commercial at least once during a specific period, usually four weeks." "Frequency is the number of times an individual is exposed to a message."

Define sales promotion.

"Sales promotions are marketing events or sales efforts (not including advertising, personal selling, and public relations) that stimulate buying."

Describe immediate-response advertising, reminder advertising, and comparative Advertising?

"Selective advertising that aims at persuading consumers to make purchases within a short time is called immediate-response advertising." "Selective advertising aimed at keeping a firm's name or product before the public is called reminder advertising." "Comparative advertising compares specific characteristics of two or more identified brands."

What are the four parts of the promotional mix?

"The combination of traditional advertising, personal selling, sales promotion, public relations, social media, and e-commerce that is used to promote a product is called the promotional mix." A more concise list of the four traditional parts is found in the definition of the mix itself: "The combination of advertising, personal selling, sales promotion, and public relations used to promote a product is called the promotional mix."

Define press release.

"The main tool of the public relations department is the press release, a formal announcement of some newsworthy event connected with the company such as the start of a new program, the introduction of a new product, the promotion of an employee, or the opening of a new plant."

What is the direct channel? traditional channel?

"This channel [Producer to Consumer], which is often called the direct channel, includes no marketing intermediaries." "This channel [Producer to Wholesaler to Retailer to Consumer] is known as the traditional channel, because most consumer goods pass through wholesalers to retailers."

Describe marketing intermediaries for consumer goods such as wholesalers, retailers, agents, and brokers.

"Wholesalers are channel members that buy finished products from manufacturers and sell them to retailers." "Retailers in turn sell the products to consumers." "Agents are sales representatives of manufacturers and wholesalers." "Brokers are entities that bring buyers and sellers together."