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75 Cards in this Set
- Front
- Back
Distribution (place) |
How a business gets its products to the customers |
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Types of Marketing Channels |
Direct p->c Retailer p->r->c Wholesaler/Distributor p->w->r->c Agents/Brokers p->a->w->r->c |
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Channel Intermediaries |
All of the organizations through which a product must pass between its point of production and consumption |
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Types of Discrepancies |
Discrepancy of quantity Discrepancy of assortment Discrepancy of time/temporal Discrepancy of spatial/distance |
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Discrepancy of Quantity |
The gap between what a company manufactures and what the customer wants |
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Discrepancy of Assortment |
Having all the products in one place |
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Discrepancy of Time/Temporal |
Having a product ready before the consumer is ready to buy it. |
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Discrepancy of Spatial/Distance |
Making products available in locations convenient to consumers |
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Specific Channel Functions |
Transactional Logistical Facilitating
(All channels do these at some point) |
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Transactional Function |
Contacts customers, promotes products, negotiating, risk taking
Ex: Retailer |
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Logistical Function |
Physical distributing products, storing products, sorting products
Ex: wholesaler, retailer |
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Facilitating Function |
Researching, financing
Ex: Agents, Brokers
(Who Where Why?) |
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Levels of Distribution |
Intensive Selective Exclusive |
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Intensive Distribution |
Aimed at having a product available at every outlet |
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Selective Distribution |
Sold at most outlets, but not all |
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Exclusive Distribution |
Can only be purchased at one or few locations, very valuable |
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Factors Affecting Channel Choices |
Buyer, Product, Market |
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Channel Relationships |
Arm's Length Cooperative Integrated |
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Arm's Length Relationship |
One time or unique need purchase. Low involvement/risk.
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Cooperative Relationship |
Formal contract without longtime commitment.
Ex: McD's and Coke, still separate entities. |
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Integrated Relationship |
Strong-bonded relationship. Acts as one company, knows all databases.
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Social Dimensions of Channels |
Power Control Leadership Conflict |
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Power |
One channel member influencing the behavior of other channel members |
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Control |
One channel member's power effects another member's behavior |
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Leadership |
Exercises authority and power |
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Conflict |
Incompatibility, differences in goals |
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Retailing Stores |
Department Specialty Convenience Drugstore Supermarket Discount Restaurants |
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Retailing Location Issues |
Cost Location of target market Product type Transportation availability/Traffic Competitor location |
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Franchise |
Franchisor grants franchisee the business rights to operate and sell a product
(saves money, local expertise) |
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Non-store Retailing |
Automatic vending Electronic Retailing E-commerce/Online M-commerce |
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Integrated Marketing Communications (IMC) |
The careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer |
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Promotional Mix |
Advertising Public relations Personal selling Sales promotion |
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Personal Selling |
One-on-one selling, most expensive |
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Sales Promotions |
Induces impulse buying |
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Marketing Communications |
Interpersonal Mass Hybrid model |
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Interpersonal Communication |
Spoken communication that takes place between two or more individuals on a personal level
Ex:A salesperson speaking with a client |
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Mass Communication |
Transmitting info to a large group of receivers |
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Communication Process |
Two or more people attempt to consciously/unconsciously influence each other through the use of symbols or words to satisfy their respective needs
Sender -> Encoder -> Channel -> Decoder -> Receiver |
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Goals and Tasks of Promotion |
Informing Reminding Persuading |
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Informative Promotion |
Increasing awareness of a new product Early stages of PLC |
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Reminder Promotion |
Reminding the customer that they need the product Maturity stage of PLC |
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Persuasive Promotion |
Stimulate a purchase or switch to a new product Growth stage of PLC |
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AIDA |
Attention - Interest - Desire - Action
List of events that may occur when a consumer engages with an ad |
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AIDA
Advertising |
High attention, Low action |
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AIDA
Public Relations |
High interest, desire, Low action |
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AIDA
Sales Promotion |
High action |
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AIDA
Personal Selling |
High everything |
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Push Strategy |
Aggressive personal selling |
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Pull Strategy |
Stimulate consumer demand |
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Types of Advertising |
Pioneering Competitive Comparative |
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Pioneering Advertising |
Used in introductory stage of PLC. Informs about new product |
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Competitive Advertising |
Used in growth stage of PLC. Appeals to emotion, creates impression they're better |
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Comparative Advertising |
Comparing two or more competing brands to help consumers choose which they prefer Used in mature or intro stage |
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Media Types |
Owned Earned Paid |
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Owned Media |
Channel a brand controls (website) Controlled by brand but keeps customers needs in mind |
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Earned Media |
"Word of mouth" Customer becomes the channel. Free publicity, most credible. |
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Paid Media |
Brand pays to leverage a channel (ads), poor credibility |
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Crowdsourcing |
Involving a high number of people to come up with a product idea or change |
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Corporate Social Responsibility (CSR) |
Social environmental impact created by a business |
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Cause Related Marketing (CRM) |
Mutually beneficial collaboration between a corporation and a non-profit |
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Ethics |
Guiding principle that comes from morals |
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Morals |
Determined by a group of people (society) as a result of values and norms |
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Legality |
Our morals dictate what is legal/illegal |
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Ethical Decision Making Factors |
Extent of the problem Probability of harm Potential consequences Number of people effected Level of consensus |
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FCPA Foreign Corrupt Practices Act |
A law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries.
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Global Standardization |
The product is exactly the same globally, highly valued |
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Promotion Adaption |
When the message is directed differently based on who is watching |
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Individualism (component of culture) |
Giving priority to one's own goals over group goals and defining one's identity in terms of personal attributes rather than group identifications
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Collectivism |
The priorities of a group are most important. |
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Power Distance Index |
Focuses on authority orientation; cultures high in this tend to be hierarchical, with members Countries with English or similar languages
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Uncertainty Avoidance Index |
Degree to which a society feels uncomfortable and avoids situations. |
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Culture |
"Software of the mind" - it is uncontrollable |
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External Environment Marketing Factors |
Competition Government policies Natural forces Social/Cultural forces Demographics Technology changes |
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Tariff |
Tax on imports/exports |
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Five Senses of Marketing |
Visual - Least proximity (men) Auditory -Tempo Volume Pitch 2nd Olfaction - Last line of defense 3rd (women) Haptics - Touch Gustatory - Greatest degree of proximity |