Marketing 301 Final Exam

urgency close

rushing the customer to make a decision in order to force them into buying

Brokers

Chief function is bringing buyers and sellers together and assisting in negotiation. They are paid by the party who hired them, and do not carry inventory, get involved in financing, or assume risk. Examples: food brokers, real estate brokers, insurance brokers, and security brokers.

Push strategy

Consists of gaining audience awareness through advertising. This strategy is likely used if the product advertised is new and the target market has shown little prior interest in it.

Drop shippers

Do not carry inventory or handle the product. On receiving an order, they select a manufacturer, who ships the merchandise directly to the customer. The drop shipper assumes title and risk from the time the order is accepted to its delivery to the customer. They operate in bulk industries, such as coal, lumber, and heavy equipment.

Brokers and agents

Do not take title to goods. Main function is to facilitate buying and selling, for which they earn a commission on the selling price. Generally, specialize by product line or customer types.

Limited-service wholesalers

Offer fewer services than full-service wholesalers. Limited-service wholesalers are of several types

Truck wholesalers (or truck jobbers)

Perform primarily a selling and delivery function. Carry a limited line of semi perishable merchandise (such as milk, bread, snack foods), which they sell for cash as they make their rounds to supermarkets, small groceries, hospitals, restaurants, factory cafeterias, and hotels.

Full-service wholesalers

Provide a full line of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance.

Agents

Represent either buyers or sellers on a more permanent basis than brokers do. There are several types

Mail-order wholesalers

Send catalogs to retail, industrial, and institutional customers featuring jewelry, cosmetics, specialty foods, and other small items. Maintain no outside sales force. Main customers are businesses in small outlying areas. Orders are filled and sent by mail, truck, or other transportation.

reliability, responsiveness, assurance, empathy, and tangibles

What are the five service quality dimensions when closing a sale?

merchant wholesalers, brokers and agents, and manufacturers' sales branches and offices

What are the three main categories of wholesalers?

awareness, interest, evaluation and trial, decision, confirmation

What is the order of the five advertising objectives?

assumptive close

is used by making a statement that assumed the customer has made a buying decision. Ex. "I have scheduled a delivery for tomorrow morning."

Cash-and-carry wholesalers

Carry a limited line of fast-moving goods and sell to small retailers for cash. Normally do not deliver. Example: A small fish store retailer may drive to a cash-andcarry fish wholesaler, buy fish for cash, and bring the merchandise back to the store.

Purchasing agents

Generally have a long-term relationship with buyers and make purchases for them, often receiving, inspecting, warehousing, and shipping the merchandise to the buyers. They provide helpful market information to clients and help them obtain the best goods and prices available.

Pull strategy

Handing out brochures to an event that markets your product. The consumers will have to be enticed to attend the event and educate themselves out of curiosity instead of the producer flat-out telling everyone about their product.

Selling agents

Have contractual authority to sell a manufacturer's entire output. The manufacturer either is not interested in the selling function or feels unqualified. The selling agent serves as a sales department and has significant influence over prices, terms, and conditions of sale. Found in product areas such as textiles, industrial machinery and equipment, coal and coke, chemicals, and metals.

Reach

How many individuals are advertised to. Ex. Superbowl advertisements will have a lot of viewers, but will only be shown one or two times.

Frequency

How often an advertisement is shown to a certain individual. Ex. Hometown Toyota in Ontario has an ad that runs constantly on Boise's cable channels, so it has high frequency.

truth effect

If you've heard it before, you're more likely to say it is true if asked about it. This is called the...

Merchant wholesalers

Independently owned businesses that take title to the merchandise they handle. In different trades they are called jobbers, distributors, or mill supply houses. Include full-service wholesalers and limitedservice wholesalers

Purchasing offices

Perform a role similar to that of brokers or agents but are part of the buyer's organization. Many retailers set up purchasing offices in major market centers Brokers and agents differ from merchant wholesalers in two ways: They do not take title to goods, and they perform only a few functions. Like merchant wholesalers, they generally specialize by product line or customer type. A broker brings buyers and sellers together and assists in negotiation. Agents represent buyers or sellers on a more permanent basis. Manufacturers' agents (also called manufacturers' representatives) are the most common type of agent wholesaler. The third major type of wholesaling is that done in manufacturers' sales branches and offices by sellers or buyers themselves rather than through independent wholesalers.

Producers' cooperatives

owned by farmer members and assemble farm produce to sell in local markets. The co-op's profits are distributed to members at the end of the year. They often attempt to improve product quality and promote a co-op brand name, such as Sun Maid raisins, Sunkist oranges, or Diamond walnuts.

trial close

tests the water in such a way that the sale could continue if the customer says "no"

Manufacturers' agents

Represent two or more manufacturers of complementary lines. A formal written agreement with each manufacturer covers pricing, territories, order handling, delivery service and warranties, and commission rates. Often used in such lines as apparel, furniture, and electrical goods. Most manufacturers' agents are small businesses, with only a few skilled salespeople as employees. They are hired by small manufacturers who cannot afford their own field sales forces, and by large manufacturers who use agents to open new territories or to cover territories that cannot support full-time salespeople.

happy; unhappy

Sales managers want salespeople that are _______ with their work environment and not too _______ with their pay.

Wholesale merchants

Sell primarily to retailers and provide a full range of services. Generalmerchandise wholesalers carry several merchandise lines, whereas general-line wholesalers carry one or two lines in greater depth. Specialty wholesalers specialize in carrying only part of a line. (Examples: health food wholesalers, seafood wholesalers.)

Industrial distributors

Sell to manufacturers rather than to retailers. Provide several services, such as carrying stock, offering credit, and providing delivery. May carry a broad range of merchandise, a general line, or a specialty line.

Rack jobbers

Serve grocery and drug retailers, mostly in nonfood items. They send delivery trucks to stores, where the delivery people set up toys, paperbacks, hardware items, health and beauty aids, or other items. They price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records. Rack jobbers retain title to the goods and bill the retailers only for the goods sold to consumers.

Commission merchants

Take physical possession of products and negotiate sales. Normally, they are not employed on a long-term basis. Used most often in agricultural marketing by farmers who do not want to sell their own output and do not belong to producers' cooperatives. The commission merchant takes a truckload of commodities to a central market, sells it for the best price, deducts a commission and expenses, and remits the balance to the producer.