Chapter 13 Buisness

promotion

communication about an organization and its products that is intended to inform, persuade, or remind target-market members

Middleman

: Links a producer and user within a marketing channel

Advertising:

Paid non-personal message communicated to a select audience through a mass medium Personal selling Sales promotion Public relations

Promotion mix:

Particular combination of promotion to reach a target market

Telemarketing:

Performance of marketing-related activities by telephone

Full-service wholesaler

Performs the entire range of wholesaler functions, including delivering goods, supplying, warehousing, arranging for credit, supporting promotional activities, and providing general customer assistance.

Convenience store:

Small food store that sells a limited variety of products but remains open beyond business hours

Event sponsorship

Special events such as concerts and charity functions that the firm underwrites

Limited-line wholesaler

Stocks only a few product lines but carries numerous product items within each line

Department:

a division of a large organization such as a government, university, business, or shop, dealing with a specific subject, commodity, or area of activity.

carrier

a firm that offers transportation services

independent retailer

a firm that operates only one retail outlet

television home shopping

a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card

sample

a free product given to customers to encourage trial and purchase

premium

a gift that a producer offers a customer in return for buying its product

superstore

a large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines

supermarket

a large self-service store that sells primarily food and household products

warehouse club

a large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing

press conference

a meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs.

merchant middleman

a middleman that actually takes title to products by buying them

retailer

a middleman that buys from producers or other middlemen and sells to consumers

specialty-line wholesaler

a middleman that carries a select group of products within a single line

general-merchandise wholesaler

a middleman that deals in a wide variety of products

agent

a middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis

functional middleman

a middleman that helps in the transfer of ownership of products but does not take title to the products

full-service wholesaler

a middleman that performs the entire range of wholesaler functions

merchant wholesaler

a middleman that purchases goods in large quantities and sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users

wholesaler

a middleman that sells products to other firms

broker

a middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis

limited-line wholesaler

a middleman that stocks only a few product lines but carries numerous product items within each line

advertising

a paid nonpersonal message communicated to a select audience through a mass medium

captioned photograph

a picture accompanied by a brief explanation

feature article

a piece (of up to 3,000 words) prepared by an organization for inclusion in a particular publication

neighborhood shopping center

a planned shopping center consisting of several small convenience and specialty stores

regional shopping center

a planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels

community shopping center

a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores

frequent-user incentive

a program developed to reward customers who engage in repeat (frequent) purchases

warehouse showroom

a retail facility in a large, low-cost building with a large on-premises inventory and minimal service

department store

a retail store that (1) employs 25 or more persons and (2) sells at least home furnishings, appliances, family apparel, and household linens and dry goods, each in a different part of the store

Superstore

a retail store, as a grocery store or bookstore, with more than the average amount of space and variety of stock.

rebate

a return of part of the purchase price of a product

consumer sales promotion method

a sales promotion method designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products

trade sales promotion method

a sales promotion method designed to encourage wholesalers and retailers to stock and actively promote a manufacturer's product

technical salesperson

a salesperson who assists a company's current customers in technical matters

order taker

a salesperson who handles repeat sales in ways that maintain positive relationships with customers

order getter

a salesperson who is responsible for selling a firm's products to new customers and increasing sales to present customers

trade salesperson

a salespersongenerally employed by a food producer or processorwho assists customers in promoting products, especially in retail stores

missionary salesperson

a salespersongenerally employed by a manufacturerwho visits retailers to persuade them to buy the manufacturer's products

discount store

a self-service general-merchandise outlet that sells products at lower-than-usual prices

distribution channel (or marketing channel)

a sequence of marketing organizations that directs a product from the producer to the ultimate user

convenience store

a small food store that sells a limited variety of products but remains open well beyond normal business hours

off-price retailer

a store that buys manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

traditional specialty store

a store that carries a narrow product mix with deep product lines

buying allowance

a temporary price reduction to resellers for purchasing specified quantities of a product

direct-response marketing

a type of marketing in which a retailer advertises a product and makes it available through mail, telephone, or online orders

catalog marketing

a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the Internet

nonstore retailing

a type of retailing whereby consumers purchase products without visiting a store

news release

a typed page of about 300 words provide by an organization to the media as a form of publicity

category killer

a very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability

order processing

activities involved in receiving and filling customers' purchase orders

What is promotion?

activity that supports or provides active encouragement for the furtherance of a cause, venture, or aim.

Merchant Middleman:

actually takes title to products by buying them.

institutional advertising

advertising designed to enhance a firm's image or reputation

selective-demand (or brand) advertising

advertising that is used to sell a particular brand of product

primary-demand advertising

advertising whose purpose is to increase the demand for all brands of a product within a specific industry

physical distribution

all those activities concerned with the efficient movement of products from the producer to the ultimate user

cooperative advertising

an arrangement whereby a manufacturer agrees to pay a certain amount of a retailer's media cost for advertising the manufacturer's products

advertising agency

an independent firm that plans, produces, and places advertising for its clients

trade show

an industry-wide exhibit at which many sellers display their products

lifestyle shopping center

an open-air-environment shopping center with upscale chain specialty stores

public relations

communication activities used to create and maintain favorable relationships between an organization and various public groups, both internal and external

publicity

communication in news-story form about an organization, its products, or both

Direct-response marketing:

A retailer advertises a product and makes it available through mail, telephone, or online orders

Warehouse clubs:

A warehouse club is a retail store, usually selling a wide variety of merchandise, in which customers may buy large, wholesale quantities of the store's products, which makes these clubs attractive to both bargain hunters and small business owners

What is a wholesaler?

A wholesaler is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers. In its simplest form, a distributor performs a similar role but often provides more complex services. Distributors and wholesalers often work together as channel partners.

Order processing:

Activities involved in receiving and filling customers' purchase orders

Warehousing:

Activities involved in receiving and storing goods and preparing them for reshipment Private warehouse Public warehouse

Sales Promotion

Activities or materials that are direct inducements to customers or salespersons Objectives Attract new customers Encourage trial of a new product Invigorate the sales of a mature brand Boost sales to current customers Reinforce advertising Objectives Increase traffic in retail stores Smooth out customer demand Build up reseller inventories Neutralize competitive promotional efforts Improve shelf space and displays

Inventory management:

Managing inventories to minimize inventory costs, including both holding costs and potential stock-out costs Holding cost Stock-out costs

Physical Distribution

All those activities concerned with the efficient movement of products from the producer to the ultimate user

Technical salespersons:

Assist current customers in technical matters

Trade salespersons:

Assists customers in promoting products, especially in retail stores

Internet

Banner and button ads Sponsorship ads Interstitial ads

Public Relations

Broad set of communication activities used to create and maintain favorable relationships between: Organization and various public groups Both internal and external

Written and spoken communications

Brochures, newsletters, company magazines, annual reports, news releases, corporate- identity materials, speeches

What is the cheapest mode of transportation?

Bus i.e.,public transport for small distances.From one city to another is railway.

Wholesalers' Services to Retailers

Buying in large quantities and selling to retailers in smaller quantities and delivering goods to retailers. Stocking in one place the variety of goods that retailers otherwise would have to buy from many producers. Providing assistance in: promotion, market information, and financial aid.

Traditional specialty store:

Carries a narrow product mix with deep product lines

Specialty-line wholesaler

Carries a select group of products within a single line

The path a product takes from manufacturer to consumer is called?

Channel of Distribution

What is the most expensive mode of transportation?

Charter jet, followed by the concord.

Publicity:

Communication in news story form about an organization, its products, or both

Promotion:

Communication about an organization and its products

Chain retailer:

Company that operates more than one retail outlet

Neighborhood shopping center:

Consists of several small convenience and specialty stores

Nonstore retailing:

Consumers purchase products without visiting a store

Regional shopping center:

Contains large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels

Integrated Marketing Communications

Coordination of promotion efforts to ensure: Maximal informational Persuasive impact on customers Results in a consistent message to customers

General-merchandise wholesaler

Deals in a wide variety of products, such as drugs, hardware, nonperishable foods, cosmetics, detergents, and tobacco

Consumer sales promotion method

Designed to attract consumers to particular retail stores

Institutional advertising:

Designed to enhance a firm's image or reputation

Producer to consumer

Direct channel Used by all services and by a few consumer goods

Sales support personnel

Employees who aid in selling More involved in locating prospects Educating customers Building goodwill for the firm Providing follow-up service

Sales Promotion Methods

Factors influencing the choice of sales promotion method Objectives of the promotional effort Product characteristics Target market profile Distribution channels Availability of resellers Competitive and regulatory forces in the environment

Retailers:

Final link between producers and consumers

Carrier:

Firm that offers transportation services Common carriers Contract carriers Private carriers Freight forwarders

Independent retailer:

Firm that operates only one retail outlet

Cooperative advertising:

Manufacturer agrees to pay a certain amount of a retailer's media cost for advertising the manufacturer's product

Sample:

Free product given to customers to encourage trial and purchase

Premium:

Gift a producer offers to a customer in return for buying its product

Functional middleman:

Helps in the transfer of ownership of products but does not take title to the products.

Major Steps in Developing an Advertising Campaign

Identify and analyze the target audience Define the advertising objectives Create the advertising platform Determine the advertising appropriation Develop the media plan Create the advertising message Execute the campaign Evaluate advertising effectiveness

Community shopping center:

Includes one or two department stores and some specialty stores, along with convenience stores

Primary-demand advertising:

Increase demand for all brands of a product in a specific industry

Social media

Increasingly popular More personal connection Only reaches person at the computer Uncertainty of best way to use it Large time commitment to monitor activity

Advertising Agencies

Independent firm that plans, produces, and places advertising for its clients Firms may use In-house media personnel Independent agency

Trade shows:

Industry-wide exhibit at which many sellers display their products

What is the only free type of advertising?

Internet

Superstore:

Large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines

Supermarket:

Large self-service store that sells primarily food and household products

Supply-chain management:

Long-term partnership among channel members working together to create a distribution system

Online retailing:

Makes products available to buyers through computer connections

Direct selling:

Marketing of products to consumers through face-to-face sales presentations

Distribution Channels

Marketing organizations that direct a product from the producer to the ultimate user

press conference:

Meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs

Agents:

Middleman that expedites exchanges, represents a buyer or a seller

Merchant wholesaler:

Middleman that purchases goods in large quantities and then sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users.

Brokers:

Middleman that specializes in a particular commodity, represents either a buyer or a seller

Personal Selling

Most adaptable and expensive promotion method Kinds of salespersons

What are some examples of non-store retailing?

Non-store retailing is the selling of goods and services outside the confines of a retail facility. It is a generic term describing retailing taking place outside of shops and stores (that is, off the premises of fixed retail locations and of markets stands).

Radio

Offers selectivity Most accessible medium Less expensive than other media Absence of visual images

Lifestyle shopping center:

Open-air configuration and is occupied by upscale national chain specialty stores

What is physical distribution?

Physical distribution includes all the activities associated with the supply of finished product at every step, from the production line to the consumers. Important physical distribution functions include customer service, order processing, inventory control, transportation and logistics, and packaging and materials.

Materials handling:

Physical handling of goods, in warehouses as well as during transportation

Captioned photograph:

Picture accompanied by a brief explanation

Feature article:

Prepared by an organization for inclusion in a particular publication

Television

Primary medium Network time Local time Product placemen

Television home shopping:

Products are presented to television viewers, who can buy them by calling a toll-free number and paying by credit card

Frequent-user incentives:

Program developed to reward customers who engage in repeat purchases

Infomercials:

Program-length televised commercial message resembling an entertainment program

The Uses of Public Relations

Promote: People Places Activities Ideas Enhance the reputation of organization Create specific positive company images

Point-of-purchase displays

Promotional material in the retail store designed to: Inform customers Encourage purchases

Direct mail:

Promotional material mailed directly to individuals

Catalog marketing:

Provides a catalog to customers to make selections and place orders

Wholesalers' Services to Manufacturers

Providing a sales force Reducing inventory costs Assuming credit risks Furnishing market information

Magazines

Reach a specific market segment More prestigious than newspapers High cost Lack of timeliness

What is the difference between agent and brokers?

Real estate broker: A person who has taken education beyond the agent level as required by state laws and has passed a broker's license exam. Brokers can work alone or they can hire agents to work for them. Real estate salesperson: Another name for a real estate agent.

Activities included in warehousing

Receiving goods Identifying goods Sorting goods Dispatching goods to storage Holding goods Recalling, picking, and assembling goods Dispatching shipments

Coupon:

Reduces the retail price of a particular item by a stated amount at the time of purchase

Warehouse showroom:

Retail facility in a large, low-cost building with large on-premises inventories and minimal service

What is a retailer?

Retail is the process of selling consumer goods and/or services to customers through multiple channels of distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying consumers' wants and needs through a lean supply chain.

Department store:

Retail store that employs twenty-five or more persons

Producer to Retailer to Consumer

Retailer: Buys from producers or other middlemen and sells to consumers

Rebate:

Return of part of the purchase price of a product

Order taker:

Salesperson who handles repeat sales in ways that maintain positive relationships with customers

Order getter:

Salesperson who is responsible for selling a firm's

Discount store:

Self-service, general-merchandise outlet that sells products at lower-than-usual prices

Creative selling:

Selling products to new customers and increasing sales to present customers

Managing Personal Selling

Setting sales objectives Concrete, quantifiable terms Specified time period Specified geographic area Adjust the size of the sales force to meet changes in the firm's Attracting and hiring Effective salespersons Training salespersons Compensating plan Motivating salespersons to boost productivity Define sales territories and determine scheduling and routing Evaluate the operation holistically

Transportation:

Shipment of products to customers

Yellow pages advertising:

Simple listings under specific product categories appearing in print and online telephone directories

Off-price retailer:

Store that buys manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Buying allowance:

Temporary price reduction to resellers for purchasing specified quantities of a product

What are the four elements of the promotional mix?

The Promotional Mix. A marketing plan is focused on the target market and made up of four key elements. These four elements are also knows as the 4 Ps. One P is called the promotional mix and it contains advertising, public relations, personal selling and sales promotion.

Discount:

a deduction from the usual cost of something, typically given for prompt or advance payment or to a special category of buyers.

Exclusive distribution:

The use of only a single retail outlet for a product in a large geographic area

Intensive distribution:

The use of all available outlets for a product

Selective distribution:

The use of only a portion of the available outlets for a product in each geographic area

News release:

Typed page of about 300 words provided by an organization to the media as a form of publicity

Automatic vending:

Use of machines to dispense products

Direct marketing:

Use of non personal media to introduce products to customers

Selective-demand advertising:

Used to sell a particular brand of product Immediate-response advertising Reminder advertising Comparative advertising

Advertising Media

Various forms of communication through which advertising reaches its audience

Category killer:

Very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability Toys "R" Us Home Depot Best Buy Office Depot PETsMart Barnes & Noble

Missionary salespersons:

Visits retailers to persuade them to buy the manufacturer's products

chain retailer

a company that operates more than one retail outlet

integrated marketing communications

coordination of promotion efforts to ensure maximal informational and persuasive impact on customers

sales support personnel

employees who aid in selling but are more involved in locating prospects, educating customers, building goodwill for the firm, and providing follow-up service

Newspapers

inexpensive and timely Short life span

supply-chain management

long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers

middleman (or marketing intermediary)

marketing organization that links a producer and user within a marketing channel

personal selling

personal communication aimed at informing customers and persuading them to buy a firm's products

point-of-purchase display

promotional material placed within a retail store

coupon

reduces the retail price of a particular item by a stated amount at the time of purchase

online retailing

retailing that makes products available to buyers through computer connections

creative selling

selling products to new customers and increasing sales to present customers

materials handling

the actual physical handling of goods, in warehouses as well as during transportation

direct selling

the marketing of products to customers through face-to-face sales presentations at home or in the workplace

promotion mix

the particular combination of promotion methods a firm uses to reach a target market

telemarketing

the performance of marketing-related activities by telephone

inventory management

the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs

warehousing

the set of activities involved in receiving and storing goods and preparing them for reshipment

transportation

the shipment of products to customers

Convenience

the state of being able to proceed with something with little effort or difficulty.

sales promotion

the use of activities or materials as direct inducements to customers or salespersons

intensive distribution

the use of all available outlets for a product

automatic vending

the use of machines to dispense products

selective distribution

the use of only a portion of the available outlets for a product in each geographic area

exclusive distribution

the use of only a single retail outlet for a product in a large geographic area

direct marketing

the use of the telephone, Internet, and nonpersonal media to introduce products to customers, who then can purchase them via mail, telephone, or the Internet