MKT 2500 Exam 3 (Ch 6, 12, 13, 16, 17)

(Ch 13) By which characteristics can retail stores be classified?

- Amount of service offered - Breadth and depth of product lines - Relative prices charged - How they are organized

(Ch 13) What are the four major types of retail organizations?

- Corporate chains Ex. Target, Kroger, Sears - Voluntary chains Ex. IGA - Retailer cooperations Ex. Ace Hardware - Franchise organizations Ex. Subway, McDonald's

(Ch 6) What are the four major influences on business buyer behavior?

- Environmental - Organizational - Interpersonal - Individual

(Ch 13) Wholesalers fall into what three major groups?

- Merchant - Brokers and agents - Manufacturers' sales branches and offices

(Ch 17) What are the major forms of direct marketing?

- Personal selling - Direct-mail - Catalog - Telemarketing - Direct-response - Kiosk - Online

(Ch 13) Retailers must decide on which three major product variables?

- Product assessment - Services mix - Store atmosphere

(Ch 13) What are the major store retailer types?

- Specialty store - Department store - Supermarket - Convenience store - Discount store - Off-price retailer - Superstore

(Ch 6) What are the eight stages of the business buying process for a new task?

1. Problem recognition 2. General need description 3. Product specification 4. Supplier search 5. Proposal solicitation 6. Supplier selection 7. Order-routine specification 8. Performance review

(Ch 16) What are the steps in the selling process?

1. Prospecting and qualifying 2. Pre-approach 3. Approach 4. Presentation and demo 5. Handling objections 6. Closing 7. Follow-up

(Ch 12) Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

Channel level

(Ch 12) A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

Contractual VMS

(Ch 12) A vertical marketing system that combines successive stages of production and distribution under single ownership - channel leadership is established through common ownership

Corporate VMS

(Ch 12) What are the three major types of vertical marketing systems (VMS)?

Corporate, contractual, administered

(Ch 16) Sales promotion tools used to boost short-term customer buying and involvement or enhance long-term customer relationships

Customer promotions Ex. Samples, coupons, refunds, etc.

(Ch 16) The ____________-___________ approach fits better with today's relationship marketing focus than hard selling.

Customer-solution

(Ch 12) Managing the supply chain calls for customer-centered thinking, which is called what?

Customer-value delivery network

(Ch 6) People in an organization's buying center who have formal or informal power to select or approve the final suppliers

Deciders

(Ch 6) Compared to consumer purchases, a business purchase usually involves more what? (2 items)

Decision participants, professional purchasing effort

(Ch 6) In the business buying process, the buyer and the seller are often much __________ on each other

Dependent

(Ch 6) Business demand that ultimately comes from the demand for consumer goods

Derived demand

(Ch 17) Connecting directly with carefully targeted segments or individual consumers, often on a one-to-one, interactive basis

Direct marketing

(Ch 12) A marketing channel that has no intermediary levels

Direct marketing channel

(Ch 13) A store that carries standard merchandise sold at lower prices with lower margins and higher volumes

Discount store Ex. Walmart, Target, Kohl's

(Ch 12) The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

Disintermediation

(Ch 12) Giving a limited number of dealers the exclusive right to distribute the company's products in their territories

Exclusive distribution Ex. Luxury brands

(Ch 6) The business marketer usually deals with far _____ but far ____ buyers than the consumer marketer does

Fewer, larger

(Ch 12) What is the most common type of contractual VMS?

Franchise organization

(Ch 6) People in an organization's buying center who control the flow of information to others

Gatekeepers

(Ch 6) Governmental units - federal, state, and local - that purchase or rent goods and services for carrying out the main functions of government

Governmental market

(Ch 13) Are service retailers or product retailers growing faster?

Service retailers

(Ch 13) Using in-store promotions and advertising to extend brand equity to "the last mile" and encourage favorable point-of-purchase decisions

Shopper marketing

(Ch 6) What are the three major buying situations?

Straight rebuy, modified rebuy, new task

(Ch 13) In recent years, the market share for supermarkets has declined while the market share for _______________ has increased

Supercenters

(Ch 13) A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumers' total needs for grocery and household products

Supermarket Ex. Kroger, Publix, Safeway

(Ch 13) _________________ are the most frequent visited type of retail store

Supermarkets

(Ch 13) A very large store that meets consumers' total needs for routinely purchased food and nonfood items. This includes supercenters and category killers

Superstore Ex. Walmart Supercenter, SuperTarget, Meijer, Best Buy, Petsmart, Barnes & Noble

(Ch 12) Mangaing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Supply chain management

(Ch 12) Marketing logistics involves not just outbound logistics but also the entire system, called what?

Supply chain management

(Ch 12) The term ________ chain takes a make and sell view whereas _________ chain suggests a sense and respond view.

Supply, demand

(Ch 6) Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

Systems (solutions) selling

(Ch 12) The goal of marketing logistics should be to provide a _____________ level of customer service at the least cost

Targeted

(Ch 12) An independent logistics provider that performs any or all of the functions required to get a client's product to market

Third-party logistics (3PL) provider Ex. UPS, FedEx

(Ch 12) From the economic system's point of view, what is the role of marketing intermediates?

To transform the assortments of products made by producers into the assortments wanted by consumers

(Ch 13) T/F: Most retailers seek either high markups on lower volume or low markups on higher volume

True

(Ch 6) T/F: Many buyers prefer multiple sources of supplies to avoid being totally dependent on one supplier and to allow comparison of prices and performance of several supplies over time

True

(Ch 6) Members of the buying organization who will actually use the purchases product or service

Users

(Ch 6) Who makes up the buying center?

Users, influencers, buyers, deciders, gatekeepers

(Ch 12) In dividing the work of the channel, the various functions should be assigned to the channel members who can add the most _________ for the cost

Value

(Ch 6) Many large buyers now turn over ordering and inventory responsibilities to their suppliers, called what?

Vendor-managed inventory

(Ch 12) A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate

Vertical marketing system (VMS)

(Ch 12) A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

Administered VMS

(Ch 17) What are the four major online marketing domains?

B-to-C, B-to-B, C-to-C, C-to-B

(Ch 6) Within the organization, buying activity consists of which two major parts?

Buyer center, buying decision process

(Ch 6) People in an organization's buying center who make an actual purchase

Buyers

(Ch 6) All the individuals and units that play a role in the purchase decision-making process

Buying center

(Ch 12) A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

Horizontal marketing system Ex. McDonald's inside Wal-mart

(Ch 12) A marketing channel containing one or more intermediary levels

Indirect marketing channel

(Ch 6) Many business markets have ________ demand and more ___________ demand

Inelastic, fluctuating

(Ch 6) People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives

Influencers

(Ch 6) Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and service to people in their care

Institutional market

(Ch 12) The logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organizations - to maximize the performance of the entire distribution system

Integrated logistics management

(Ch 12) Stocking the product in as many outlets as possible

Intensive distribtuion Ex. Toothpaste, candy

(Ch 12) What are the strategies used for determining the number of channel members to use at each level?

Intensive, exclusive, selective (distribution)

(Ch 16) Personal selling is the __________ arm of the promotion mix

Interpersonal

(Ch 6) Why is business demand derived demand?

It is ultimately derived from the demand for consumer goods

(Ch 12) The number of intermediary levels indicates the ___________ of a channel

Length

(Ch 12) A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

Marketing (distribution) channel

(Ch 12) Marketers have traditionally focused on the downstream side of the supply chain that look toward the customer, called what?

Marketing (distribution) channels

(Ch 12) Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives

Marketing channel design

(Ch 12) Selecting, managing, and motivating individual channel members and evaluating their performance over time

Marketing channel management

(Ch 12) Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

Marketing logistics (also called physical distribution)

(Ch 12) A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments

Multichannel distribution system

(Ch 13) A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail

Off-price retailer Ex. Sam's, TJ Maxx

(Ch 16) Personal presentations by the firm's sales force for the purpose of making sales and building customer relationships

Personal selling

(Ch 6) The total demand for business products is not much affected by _________ _________, especially in the short run

Price changes

(Ch 12) Why do producers give some of the selling job to channel partners?

Producers use intermediaries because they create greater efficiency in making goods available to target markets

(Ch 12) Whereas advertising offers reasons to buy a product or service, sales ____________ offers reasons to buy now

Promotion

(Ch 17) Whereas advertising offers reasons to buy a product or service, sales __________ offers reasons to buy now

Promotion

(Ch 16) The sales step in which a salesperson or company identifies qualified potential customers

Prospecting

(Ch 16) Do manufacturers direct more sales promotion dollars toward retailers and wholesalers or to final consumers?

Retailers and wholesalers (79% vs 21%)

(Ch 12) The use of more than one but fewer than all of the intermediaries who are willing to carry the company's products

Selective distribution Ex. Most TV, furniture, home appliance brands