Koofers

Exam 3 - Flashcards

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Class:MKT 320F - FOUNDATIONS OF MARKETING
Subject:Marketing
University:University of Texas - Austin
Term:Spring 2012
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place making goods and services available in the right quantities and locations, when customers want them
channel of distribution any series of firms or individuals who participate  in the flow of products from producer to final user or consumer
direct marketing direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling
discrepancy of quantity the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want
Generated by Koofers.com
discrepancy of assortment the difference between the lines a typical producer makes and the assortment final consumers or users want
regrouping activities adjust the quantities or assortments of products handled at each level in a channel of distribution
accumulating collecting products form many small producers
bulk-breaking dividing larger quantities into smaller quantities as products get closer to the final market
Generated by Koofers.com
sorting separating products into grades and qualities desired by different target markets
assorting putting together a variety of products to give a target market what it wants
traditional channel systems various channel members make little or no effort to cooperate with each other
channel captain a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts
Generated by Koofers.com
vertical marketing systems channel systems in which the whole channel focuses on the same target market at the end of the channel
corporate channel systems corporate ownership all along the channel
vertical integration acquiring firms at different levels of channel activity
administered channel systems the channel members informally agree to cooperate with each other
Generated by Koofers.com
contractual channel systems the channel members agree by contract to cooperate with each other
ideal market exposure makes a product available widely enough to satisfy a target customers' needs but not exceed them
intensive distribution selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product
selective distribution selling through only those intermediaries who will give the product special attention
Generated by Koofers.com
exclusive distribution selling through only one intermediary in a particular geographic area
multichannel distribution occurs when a producer uses several competing channels to reach the same target market, perhaps using several intermediaries in addition to selling directly
reverse channels channels used to retrieve products that customers no longer want
exporting selling some of what the firm produces to foreign markets
Generated by Koofers.com
licensing selling the right to use some process, trademark, patent, or other right for a fee or royalty
management contracting the seller provides only management and marketing skills, others own the product and distribution facilities
joint venture a domestic firm enters into a partnership with a foreign firm
direct investment a parent firm has a division (or owns a separate subsidiary firm) in a foreign market
Generated by Koofers.com
logistics the transporting, storing, and handling of goods in ways that match target customers' needs with a firm's marketing mix-both within individual firms and along a channel of distribution
physical distribution (PD) another common name for logistics
customer service level how rapidly and dependably a firm can deliver what the customers want
PD concept all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level
Generated by Koofers.com
total cost approach evaluating each possible PD system and identifying all of the costs of each alternative
supply chain the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers
electronic data interchange (EDI) an approach that puts information in a standardized format easily shared between different computer systems
transporting the marketing function of moving goods
Generated by Koofers.com
containerization grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination
piggyback service loading truck trailers-or flatbed trailers carrying containers-on railcars to provide both speed and flexibility
storing the marketing function of holding goods so they're available when they're needed
inventory the amount of goods being stored
Generated by Koofers.com
private warehouses storing facilities owned or leased by companies for their own use
public warehouses independent storing facilities
distribution center a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs
retailing covers all of the activities involved in the sale of products to final consumers
Generated by Koofers.com
general stores early retailers who carried anything they could sell in reasonable volume
single-line/limited-line stores stores that specialize in certain lines of related products rather than a wide assortment
specialty shop a type of conventional limited-line store, usually small and has a distinct "personality"
department stores larger stores that are organized into many separate departments and offer many product lines
Generated by Koofers.com
mass-merchandising concept retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets
supermarkets large stores specializing in groceries with self-service and wide assortments
discount houses stores that sell hard goods (cameras, TVs, appliances) at substantial price cuts to customers who go to discounter's low-rent store, pay cash, and take car of any service or repair problems themselves
mass-merchandisers large self-service stores with many departments that emphasize "soft goods" (houseware, clothing, and fabrics) and staples (like health and beauty aids) but still follow the discount house's emphasis on lower margins to get faster turnover
Generated by Koofers.com
supercenters (hypermarkets) very large stores that try to carry not only food and drug items but all goods and services that the consumer purchases routinely
convenience (food) stores convenience-oriented variation of the conventional limited-line food stores, but with limited stock to pick up or fill in items
automatic vending selling and delivering products through vending machines
door-to-door selling a salesperson going directly to the consumer's home
Generated by Koofers.com
wheel of retailing theory new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices
scrambled merchandising carrying any product lines they think they can sell profitably
corporate chain firm that owns and manages more than one store
cooperative chains retailer-sponsored groups-formed by independent retailers-that run their own buying organizations and conduct joint promotion efforts
Generated by Koofers.com
voluntary chains wholesaler-sponsored groups that work with "independent" retailers
franchise operation the franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units
wholesaling concerned with the activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but that do not sell in large amounts to final consumers
wholesalers firms whose main function is providing wholesaling activities
Generated by Koofers.com
manufacturers' sales branches warehouses that producers set up at separate locations away from their factories
merchant wholesalers own the products they sell, often specialize by certain types of products or customers
service wholesalers merchant wholesalers that provide all the wholesaling functions, include:
1. general merchandise
2. single-line
3. specialty
general merchandise wholesalers service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment
Generated by Koofers.com
single-line (general-line) wholesalers service wholesalers that carry a narrower line of merchandise than general merchandise wholesalers
specialty wholesalers service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers
limited-function wholesalers provide only some wholesaling functions
cash and carry wholesalers operate like service wholesalers-except that the customer must pay cash
Generated by Koofers.com
drop-shippers own the products they sell-but do not actually handle, stock, or deliver them
truck wholesalers specialize in delivering products that they stock in their own trucks, promptly deliver perishable products that regular wholesalers prefer not to carry
rack jobbers specialize in hard to handle assortments of products that a retailer doesn't want to manager-and usually display the products on their own wire racks
catalog wholesalers sell out of catalogs that may be distributed widely to smaller industrial customers or retailers that might not be called on by other wholesalers
Generated by Koofers.com
agent wholesalers wholesalers who do not own the products they sell, main purpose is to help in buying and selling
manufacturers' agent sells similar products for several noncompeting producers for a commission on what is actually sold
export or import agents basically manufacturers' agents who specialize in international trade
brokers bring buyers and sellers together, usually have a temporary relationship with the buyer and seller while the deal is negotiated
Generated by Koofers.com
export and import brokers operate like brokers, but they specialize in bringing together buyers and sellers from different countries
selling agents take over the whole marketing job of producers, not just the selling function
combination export manager a blend of manufacturers' agent and selling agent-handling the entire export function for several producers of similar but noncompeting lines
auction companies provide a place where buyers and sellers can come together and bid to complete a transaction
Generated by Koofers.com
promotion communicating information between the seller and potential buyer or others in the channel to influence attitudes and behaviors
personal selling involves direct spoken communication between sellers and potential customers
mass selling communicating with large numbers of potential customers at the same time
advertising any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor
Generated by Koofers.com
publicity any unpaid form of non-personal presentation of ideas, goods or services
sales promotion refers to promotion activities that stimulate interest, trial, or purchase by final customers or others in the channel
sales managers concerned with managing personal selling
advertising managers manage their company's mass-selling effort
Generated by Koofers.com
public relations communication with noncustomers, including labor, public interest groups, stockholders, and the government
sales promotion managers manage their company's sales promotion effort
integrated marketing communication the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message
AIDA model four promotion jobs
  1. get attention
  2. to hold interest
  3. arouse desire
  4. obtain action
Generated by Koofers.com
communication process a source trying to reach a receiver with a message
source the sender of a message
receiver potential customer
noise any distraction that reduces the effectiveness of the communication process
Generated by Koofers.com
encoding the source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver
decoding the receiver translating the message
message channel the carrier of the message
pushing using normal promotion effort to help sell the whole marketing mix to possible channel members
Generated by Koofers.com
pulling getting customers to ask intermediaries for the product
adoption curve shows when different groups accept ideas
innovators the first to adopt, eager to try a new idea and willing to take risks
early adopters well respected by their peers and often are opinion leaders, tend be younger, more mobile and more creative, but have fewer contacts outside own community
Generated by Koofers.com
early majority avoid risk and wait to consider a new idea after many early adopters have tried it and liked it
late majority cautious about new ideas, often older and set in their ways
laggards/nonadopters prefer to do things the way they've been done in the past and are very suspicious of new ideas
primary demand demand for the general product idea, not just for the company's own brand
Generated by Koofers.com
selective demand demand for a company's own brand, main job to persuade customers to buy, and keep buying, the company's product
task method basing the budget on the job to be done
Generated by Koofers.com

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 placemaking goods and services available in the right quantities and locations, when customers want them
 channel of distributionany series of firms or individuals who participate  in the flow of products from producer to final user or consumer
 direct marketingdirect communication between a seller and an individual customer using a promotion method other than face-to-face personal selling
 discrepancy of quantitythe difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want
 discrepancy of assortmentthe difference between the lines a typical producer makes and the assortment final consumers or users want
 regrouping activitiesadjust the quantities or assortments of products handled at each level in a channel of distribution
 accumulatingcollecting products form many small producers
 bulk-breakingdividing larger quantities into smaller quantities as products get closer to the final market
 sortingseparating products into grades and qualities desired by different target markets
 assortingputting together a variety of products to give a target market what it wants
 traditional channel systemsvarious channel members make little or no effort to cooperate with each other
 channel captaina manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts
 vertical marketing systemschannel systems in which the whole channel focuses on the same target market at the end of the channel
 corporate channel systemscorporate ownership all along the channel
 vertical integrationacquiring firms at different levels of channel activity
 administered channel systemsthe channel members informally agree to cooperate with each other
 contractual channel systemsthe channel members agree by contract to cooperate with each other
 ideal market exposuremakes a product available widely enough to satisfy a target customers' needs but not exceed them
 intensive distributionselling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product
 selective distributionselling through only those intermediaries who will give the product special attention
 exclusive distributionselling through only one intermediary in a particular geographic area
 multichannel distributionoccurs when a producer uses several competing channels to reach the same target market, perhaps using several intermediaries in addition to selling directly
 reverse channelschannels used to retrieve products that customers no longer want
 exportingselling some of what the firm produces to foreign markets
 licensingselling the right to use some process, trademark, patent, or other right for a fee or royalty
 management contractingthe seller provides only management and marketing skills, others own the product and distribution facilities
 joint venturea domestic firm enters into a partnership with a foreign firm
 direct investmenta parent firm has a division (or owns a separate subsidiary firm) in a foreign market
 logisticsthe transporting, storing, and handling of goods in ways that match target customers' needs with a firm's marketing mix-both within individual firms and along a channel of distribution
 physical distribution (PD)another common name for logistics
 customer service levelhow rapidly and dependably a firm can deliver what the customers want
 PD conceptall transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level
 total cost approachevaluating each possible PD system and identifying all of the costs of each alternative
 supply chainthe complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers
 electronic data interchange (EDI)an approach that puts information in a standardized format easily shared between different computer systems
 transportingthe marketing function of moving goods
 containerizationgrouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination
 piggyback serviceloading truck trailers-or flatbed trailers carrying containers-on railcars to provide both speed and flexibility
 storingthe marketing function of holding goods so they're available when they're needed
 inventorythe amount of goods being stored
 private warehousesstoring facilities owned or leased by companies for their own use
 public warehousesindependent storing facilities
 distribution centera special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs
 retailingcovers all of the activities involved in the sale of products to final consumers
 general storesearly retailers who carried anything they could sell in reasonable volume
 single-line/limited-line storesstores that specialize in certain lines of related products rather than a wide assortment
 specialty shopa type of conventional limited-line store, usually small and has a distinct "personality"
 department storeslarger stores that are organized into many separate departments and offer many product lines
 mass-merchandising conceptretailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets
 supermarketslarge stores specializing in groceries with self-service and wide assortments
 discount housesstores that sell hard goods (cameras, TVs, appliances) at substantial price cuts to customers who go to discounter's low-rent store, pay cash, and take car of any service or repair problems themselves
 mass-merchandiserslarge self-service stores with many departments that emphasize "soft goods" (houseware, clothing, and fabrics) and staples (like health and beauty aids) but still follow the discount house's emphasis on lower margins to get faster turnover
 supercenters (hypermarkets)very large stores that try to carry not only food and drug items but all goods and services that the consumer purchases routinely
 convenience (food) storesconvenience-oriented variation of the conventional limited-line food stores, but with limited stock to pick up or fill in items
 automatic vendingselling and delivering products through vending machines
 door-to-door sellinga salesperson going directly to the consumer's home
 wheel of retailing theorynew types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices
 scrambled merchandisingcarrying any product lines they think they can sell profitably
 corporate chainfirm that owns and manages more than one store
 cooperative chainsretailer-sponsored groups-formed by independent retailers-that run their own buying organizations and conduct joint promotion efforts
 voluntary chainswholesaler-sponsored groups that work with "independent" retailers
 franchise operationthe franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units
 wholesalingconcerned with the activities of those persons or establishments that sell to retailers and other merchants, or to industrial, institutional, and commercial users, but that do not sell in large amounts to final consumers
 wholesalersfirms whose main function is providing wholesaling activities
 manufacturers' sales brancheswarehouses that producers set up at separate locations away from their factories
 merchant wholesalersown the products they sell, often specialize by certain types of products or customers
 service wholesalersmerchant wholesalers that provide all the wholesaling functions, include:
1. general merchandise
2. single-line
3. specialty
 general merchandise wholesalersservice wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment
 single-line (general-line) wholesalersservice wholesalers that carry a narrower line of merchandise than general merchandise wholesalers
 specialty wholesalersservice wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers
 limited-function wholesalersprovide only some wholesaling functions
 cash and carry wholesalersoperate like service wholesalers-except that the customer must pay cash
 drop-shippersown the products they sell-but do not actually handle, stock, or deliver them
 truck wholesalersspecialize in delivering products that they stock in their own trucks, promptly deliver perishable products that regular wholesalers prefer not to carry
 rack jobbersspecialize in hard to handle assortments of products that a retailer doesn't want to manager-and usually display the products on their own wire racks
 catalog wholesalerssell out of catalogs that may be distributed widely to smaller industrial customers or retailers that might not be called on by other wholesalers
 agent wholesalerswholesalers who do not own the products they sell, main purpose is to help in buying and selling
 manufacturers' agentsells similar products for several noncompeting producers for a commission on what is actually sold
 export or import agentsbasically manufacturers' agents who specialize in international trade
 brokersbring buyers and sellers together, usually have a temporary relationship with the buyer and seller while the deal is negotiated
 export and import brokersoperate like brokers, but they specialize in bringing together buyers and sellers from different countries
 selling agentstake over the whole marketing job of producers, not just the selling function
 combination export managera blend of manufacturers' agent and selling agent-handling the entire export function for several producers of similar but noncompeting lines
 auction companiesprovide a place where buyers and sellers can come together and bid to complete a transaction
 promotioncommunicating information between the seller and potential buyer or others in the channel to influence attitudes and behaviors
 personal sellinginvolves direct spoken communication between sellers and potential customers
 mass sellingcommunicating with large numbers of potential customers at the same time
 advertisingany paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor
 publicityany unpaid form of non-personal presentation of ideas, goods or services
 sales promotionrefers to promotion activities that stimulate interest, trial, or purchase by final customers or others in the channel
 sales managersconcerned with managing personal selling
 advertising managersmanage their company's mass-selling effort
 public relationscommunication with noncustomers, including labor, public interest groups, stockholders, and the government
 sales promotion managersmanage their company's sales promotion effort
 integrated marketing communicationthe intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message
 AIDA modelfour promotion jobs
  1. get attention
  2. to hold interest
  3. arouse desire
  4. obtain action
 communication processa source trying to reach a receiver with a message
 sourcethe sender of a message
 receiverpotential customer
 noiseany distraction that reduces the effectiveness of the communication process
 encodingthe source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver
 decodingthe receiver translating the message
 message channelthe carrier of the message
 pushingusing normal promotion effort to help sell the whole marketing mix to possible channel members
 pullinggetting customers to ask intermediaries for the product
 adoption curveshows when different groups accept ideas
 innovatorsthe first to adopt, eager to try a new idea and willing to take risks
 early adopterswell respected by their peers and often are opinion leaders, tend be younger, more mobile and more creative, but have fewer contacts outside own community
 early majorityavoid risk and wait to consider a new idea after many early adopters have tried it and liked it
 late majoritycautious about new ideas, often older and set in their ways
 laggards/nonadoptersprefer to do things the way they've been done in the past and are very suspicious of new ideas
 primary demanddemand for the general product idea, not just for the company's own brand
 selective demanddemand for a company's own brand, main job to persuade customers to buy, and keep buying, the company's product
 task methodbasing the budget on the job to be done
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