MKT 301 Final
supply chain
"make and sell" view includes the firm's raw materials, productive inputs, and factory capacity
buying
A _____ allowance is a temporary price reduction offered to resellers for purchasing specified quantities of a product
horizontal conflict
Conflict among members at the same channel level
vertical conflict
Conflict between different levels of the same channel
informative advertising
is used when introducing a new product category; the objective is to build primary demand
conversion ratios, activity goals, win-loss analysis
key evaluation metrics (3 ways)
intensive distribution
large number of intermediaries
convenient stores
limited line of high-turnover goods
market-skimming pricing
midnight magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. the company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. which of the following pricing strategies is midnight magic using?
supermarket
most frequently shopped at type of retail store
specialty stores
narrow product line with deep assortment (ex. tiffany, radio shack)
disintermediation
occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones
administered VMS
one member of the channel is large and powerful enough to coordinate the activities of the other members without an ownership stake
corporate VMS
one member of the distribution channel owns the other members. Although they are owned jointly, each company in the chain continues to perform a separate task
efficiency
Intermediaries offer producers greater _____ in making goods available to target markets
impact of PR
Lower cost than advertising Stronger impact on public awareness than advertising
horizontal
Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict
loyalty programs
Marketing efforts that reward a person or organization for frequent purchases and the consumption of offerings
intermediaries
Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products
spreader
One of the positive effects of loyalty programs is ________ effect that the buyers are more likely to try related products offered by a marketer
marketing logistics
Physical distribution involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit
an indirect marketing channel
Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end consumers. This is an example of ________
sales promotion
Short-term incentives to encourage purchases or sales of a product or service
narrow product lines; deep assortments
Specialty stores carry ________ with ________ within them
franchise
The ________ organization is the most common type of contractual vertical marketing system
greater the channel complexity
The greater the number of channel levels in a marketing channel, the ________
downstream partners
The marketing channels or distribution channels that look toward the customer
upstream partners
The set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service
sales promotion
The use of short-term incentives to encourage the purchase or sale of a product or service is called ________
horizontal system
Two or more companies at one level join together to follow a new marketing opportunity
comparative advertising
When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________
determining pricing policy for channel members
Which of the following is NOT a step in designing an effective marketing channel?
expanding sales and market coverage
Which of the following is an advantage of adding new channels in a multichannel distribution system?
direct marketing
Which of the following is one of the five major promotion tools?
public relations
Which of the following promotion tools involves building up a positive corporate image and handling unfavorable stories and events?
high-low pricing
_____ involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
disintermediation
_____ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones
price discrimination, price maintenance, deceptive pricing
pricing legislation across channel levels (3 types)
price fixing, predatory pricing
pricing legislation within channel levels (2 types)
advertising, personal selling, public relations, sales promotion, direct marketing
promotion mix (5 tools)
vertical marketing system
provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: Corporate marketing systems Contractual marketing systems Administered marketing systems
channel conflict
refers to disagreement over goals, roles, and rewards by channel members
agents
represent buyers or sellers
retail price, service level, merchandise selection
retailers classification (3 ways)
leads, suspects, prospects, customer
sales metrics (4 sales cycles)
consumer, trade, sales force promotions
sales promotion objectives (3)
designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, compensating salespeople, supervising salespeople, evaluating salespeople
six major steps in sales force management
exclusive distribution
small number of intermediaries
prospect, pre-approach, approach, sales presentation, handle objections, close the sale, follow-up
steps in personal selling process
trade promotion
stimulate wholesalers and retailers to carry a producer's products and to market those products more aggressively
vertical
stylize, Inc. opened an online store that triggered disagreements between headquarters and the firm's exclusive dealers. this type of disagreement is known as a(n) _____ conflict
predatory pricing
the act of setting prices low in an attempt to eliminate the competition
price discrimination
the action of selling the same product at different prices to different buyers, in order to maximize sales and profits
pure competition
under _____, the market consists of many buyers and sellers trading in a uniform commodity
conventional distribution channel
a(n) _____ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximizes own profits, sometimes even at the expense of the system as a whole
sense-and-respond
A view of the market that specifies that planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value is a(n) ________ view
agent
A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker
public relations
Building good relations with the company's publics through favorable publicity, a good corporate image, and effective handling of unfavorable news
without communication from competitors
Federal legislation on price fixing requires that sellers set their prices ________
persuasive advertising
________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand
intensive
________ distribution is a strategy in which producers of convenience products and common raw materials stock their products in as many outlets as possible
wholesaling
________ includes all activities involved in selling goods and services to those buying for resale or business use
self-service
________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money
deceptive pricing
________ occurs when a seller states price savings that are not actually available to consumers
corporate vertical marketing system
a _____ integrates successive stages of production and distribution under single ownership
channel level
a _____ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
informatie, persuasive, comparative, reminder
advertising objectives (4)
price maintenance
agreement under which a manufacturer fixes the minimum price below which a trademarked or name brand article may not be sold to the ultimate consumer or user
price fixing
an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms
$15
assume a manufacturer with fixed costs of $100,000, a variable cost of $10, and expected sales of 50,000 units wants to earn a 20% markup on sales. what is the manufacturer's markup price?
multichannel distribution system
atlas imports and exports sells products directly to consumers via the atlas web site, and through local retailers as well. which of the following is evident here?
brokers
bring buyers and sellers together and assist in negotiations
analyze needs, set objectives, identify alternatives, evaluate
channel design decisions
optional product
companies involved in deciding which items to include in the base price and which to offer as options are engaged in _____ pricing
conventional distribution systems
consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict
contractual VMS
consists of independent firms joined together by contract for their mutual benefit
comparative advertising
directly or indirectly compares the brand with one or more other brands
brokers and agents
do not take title, perform a few functions, and specialize by product line or customer type
elastic
if demand changes greatly with a small change in price, we say the demand is _____
direct
in a(n) _____ channel, a store sells christmas ornaments to customers via its online click-to-order catalogs
horizontal marketing system
in a(n) _____, two or more companies at one level join together to follow a new marketing opportunity
wholesaling
includes all activities involved in selling goods and services to those buying for resale or business use
retailing
includes all the activities in selling products or services directly to final consumers for their personal, non-business use
manufacturers' sales branches and offices
is a form of wholesaling by sellers or buyers themselves rather than through independent wholesalers
persuasive advertising
is important with increased competition to build selective demand
reminder advertising
is important with mature products to help maintain customer relationships and keep customers thinking about the product
third-party logistics
is the outsourcing of logistics functions to third-party logistics providers
marketing channels
the decisions and activities that make products available to customers when and where they want to purchase them
deceptive pricing
the method by which retailers use deceptive means to trick the customers into thinking that they are paying a lower price for the product, than what they are actually supposed to
product line pricing
tone zone plans to introduce four mp3 player models over the next year. these models range from basic players at $99 per unit, to more sophisticated players at $399 per unit. the more features a model has, the more expensive it is. what pricing strategy is tone zone using for its range of mp3 players?
upstream and downstream
two types of partners in supply chain
transactional, functional, strategic, affiliative
types of sales relationships (4)
buying, buy-back, scan-back, merchandise
types of trade allowances (4)
merchant wholesalers, agents and brokers, manufacturers' sales branches and offices
types of wholesalers (3 types)
sense and respond
under _____ view, planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value
customer perceptions of the product's value
what sets the ceiling for product prices?
discount and allowance pricing
which of the following price adjustment strategies involves reducing prices to reward customer responses such as volume purchases, paying early, or promoting the product promptly?
downstream partners
which of the following terms refers to the partners such as wholesalers and retailers that form a vital link between the firm and its customers?
the method ignores demand and competitor prices
why is markup pricing most likely impractical?
department stores
wide variety of product lines
