Business 101 Chapter 12 Vocabulary and Summaries

Personal selling

A face-to-face sales presentation to a prospective customer.

Manufacturer

A producer; an organization that converts from materials to finish products.

Social media

A relatively new marketing channel that includes platforms such as Facebook, Twitter, LinkedIn, Pinterest, and Instagram.

12.7 the importance of personal selling 7. What is personal selling?

About 6.5 million people in the United States are directly engaged in personal selling. Personal selling enables a sales person to demonstrate a product and tailoring the message to the prospect; it is effective in closing a sale. Professional sales people are knowledgeable and creative. They also are familiar with the selling process, which consists of prospecting and qualifying, approaching customers, presenting and demonstrating the product, handling objections, closing the sale, and following up on the sale.

Audience selectivity

An advertising medium's ability to reach a precisely defined market.

Merchant wholesaler

An institution that buys goods from manufacturers, takes ownership, and resells them to businesses, government agencies, other wholesalers, or retailers.

Public relations

Any communication or activity designed to win goodwill or prestige for a company or person.

12.6 The Huge Impact of Advertising 6. How are traditional advertising media selected?

Cost per contact is the cost of reaching one member of the target market. Often costs are expressed on a cost per thousand basis. Reach is the number of different target customers who are exposed to a commercial at least once during a period, usually four weeks. Frequency is the number of times an individual is exposed to a message. Media selection is matter of matching the advertising medium with the target audience. Technology continues to drive many of the recent changes to traditional advertising strategies.

Cost per thousand (CPM)

Cost per thousand contacts is a term used in expressing advertising costs; refers to the cost of reaching 1000 members of the target market.

12.1 the nature and functions of distribution (place) 1. What is the nature and function of distribution (place)?

Distribution includes the efficient managing of the acquisition of raw materials by the factory and the movement of products from the producer a manufacture to business to business users and consumers. Place include such activities as location selection, store layout, atmosphere and image building for the location, inventory, transportation, and logistics. Logistics activities are usually the responsibility of the marketing department and are part of the large series of activities included in the supply chain. Distribution channels are the series of marketing entities through which goods and services pass on their way from producers to end-users users. Distribution systems focus on the physical transfer of goods and services and on their legal ownership at each stage of the distribution process. Channels reduce the number of transactions and ease the flow of good.

Sales promotion

Marketing events or sales efforts - not including advertising, personal selling, in public relations - that stimulate buying.

Marketing intermediaries

Organizations that assist in moving goods and services from producers to end users.

Agents

Sales representatives of manufactures and wholesalers.

Integrated marketing communications (IMC)

The careful coordination of all promotional activities Dash media advertising, sales promotion, personal selling, and public relations, as well as direct marketing, packaging, and other forms of promotion Dash to produce a consistent, unified message that is customer focused.

Advertising media

The channels through which advertising is carried to prospective customers; includes newspapers, magazines, radio, television, outdoor advertising, direct mail, social media and the Internet.

Promotional mix

The combination of advertising, personal selling, sales promotion, and public relations used to promote a product.

Sales prospects

The companies and people who are most likely to buy a sellers's offerings.

12.4 Using supply chain management to increase efficiency and customer satisfaction 4. How can supply chain management increase efficiency and customer satisfaction?

The goal of supply chain management is to coordinate all of the activities of the supply chain members into a seamless process, thereby increasing customer satisfaction. Supply chain managers have responsibility for main channel strategy decisions, coordinating the sourcing and procurement of raw materials, scheduling production, processing orders, managing inventory, transporting and storing supplies in finished goods, and coordinating customer service activities.

Reach

The number of different target consumers who are exposed to a commercial at least once during a specific period, usually four weeks.

Frequency

The number of times an individual is exposed to an advertising message.

Breaking bulk

The process of breaking large shipments of similar products into smaller, more usable lots.

Prospecting

The process of looking for sales prospects.

Distribution channel

The series of marketing entities through which goods and services pass on their way from producers to end users.

5Ps

The traditional 4Ps of marketing: product, price, promotion, and place (distribution), now with packaging added as a key marketing component.

12.2 wholesaling 2. What is wholesaling, and what are the types of wholesalers?

Wholesalers typically sell finished products to retailers and other institutions, such as manufacturers, schools, and hospitals. The two main types of wholesalers our merchant wholesalers in agents and brokers. Merchant wholesalers buy from manufacturers and sell to other businesses. Agents and brokers are essentially independence to provide buying and selling services. They receive commissions according to the sales and don't take title (ownership) of the merchandise.

Advertising

Any paid form of non-personal presentation by an identified sponsor.

E-commerce

E-commerce refers to the development and maintenance of a company's website and the facilitation of commerce on the website, such as the ability for customers to order products online and other activities.

12.11 trends in e-commerce 11. What is e-commerce, and how does it affect promotion?

E-commerce refers to the development and maintenance of a company's website in the facilitation of commerce on the website, such as the ability for customers to order products online, to get questions answered about products, and for the company to introduce new products and ideas. E-commerce can include special components designed specifically for separate target market segments, such as information boxes or games. The ease of use and ability to comparison-shop is driving millions of people to the Internet to purchase goods and services. Major retailers such as Walmart quickly increasing their web presence in an effort to stay relevant in this ever-changing business environment and to attract even more loyal customers who have made the switch to doing most of their shopping online. P

Distribution (logistics)

Efficiently managing the acquisition of raw materials by the factory and the movement of products from the producer to industrial users and consumers.

Wholesalers

Firms that sell finished goods to retailers, manufacturers, and institutions.

Retailers

Firms that sell goods to consumers and to industrial users for their own consumption.

Brokers

Go-betweens that bring buyers and sellers together.

12.8 sales promotion 8. What are the goals of sales promotion, and what are several types of sales promotion?

Immediate purchase is the goal of most sales promotion, whether it is aimed at consumers or the trade - wholesalers and retailers. The most popular sales promotions are coupons, samples, product placement, premiums, contests, and sweepstakes. Trade shows, conventions, and point of purchase displays are other types of sales promotion.

Industrial distributors

Independent wholesalers that buy related product lines for many manufacturers and sell them to industrial users.

Publicity

Information about a company or product that appears in the news media and is not directly paid for by the company.

Qualifying questions

Inquiries used by sales people to separate prospects from those who do not have the potential to buy.

12.5 promotion strategy 5. What is promotion, and what are the key elements of a promotional mix?

Promotion aims to stimulate demands for a companies goods or services. Promotional strategy is designed to inform, persuade, or remind target audiences about those products. The goals of promotion are to create awareness, get people to try products, provide information, keep loyal customers, increase use of the product, identify potential customers, and even teach clients about potential services The unique combination of advertising, personal selling, sales promotion, public relations, social media, and e-commerce used to promote a product is called the promotional mix. Advertising is any paid form of non-personal promotion by an identified sponsor. Personal selling consist of a face-to-face presentation in a conversation with a prospective purchaser. Sales promotion consists of marketing activities - other than personal selling, advertising, and public relations - that stimulate customers to buy. These activities include coupons and samples, displays, shows in exhibitions, demonstrations, and other selling efforts. Public relations is the marketing function that links the policies of the organization with the public interest and develops programs designed to earn public understanding and acceptance. IMC is being used by more and more organizations. It is the careful coordination of all the elements of the promotional mix to produce a consistent, unified message that is customer focused.

12.9 public relations helps build goodwill 9. How does public relations fit into the promotional mix?

Public relations is mostly concerned with getting good publicity for companies and other organizations. Publicity is any information about a company or product that appears in the news media and is not directly paid for by the company. Public relations department is furnished company speakers for business and civic clubs, write speeches for corporate officers, and encourage employees to take active roles and civic groups. These activities help build a positive image for an organization and create buzz, which is a good backdrop for selling its products.

Manufacturers' representative

Sales people who represent non-competing manufacturers; function as independent agents rather than as salaried employees of the manufacturers.

12.10 trends in social media 10. What is social media, and how does it affect promotion?

Social media is a relatively new marketing channel that includes platforms such as Facebook, Twitter, LinkedIn, Pinterest, and Instagram. The phenomenon of social media has created a business climate in which thousands of impressions - marketing messages - can be achieved with one creative social media post. Social media is a hugely powerful tool for marketers. It has its challenges, though, because of social media post that goes viral can close on a business, even if it is not true. That's what makes social media the newest challenge/opportunity for marketers. The Internet and new technology are having a Major impact on promotion and promotion expenditures. Traditional media are losing advertising funds to the Internet. Many companies are now creating blogs to get closer to customers and potential customers. Podcasts offer advertisers in new medium to reach consumers. Streaming video and videos uploaded to YouTube are also important social media channels.

12.3 the competitive world of retailing 3. What are the different kinds of retail operations?

Some 15 million Americans are engaged in retail. Retail can be either in store or non-store. In store retail operations include department stores, specialty stores, discount stores, authorized retailers, factory outlets, and catalog show rooms. Non-store retailing includes vending machines, direct sales, direct response marketing, home shopping network's, and Internet retailing. The most important factors in creating the stores atmosphere our employee type and density, merchandise type in density, fixture type in density, sound, and odors.

Promotion

The attempt by marketers to inform, persuade, or remind consumers and industrial users to engage in the exchange process.