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Exam 3, Chapter 11 - Flashcards

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Class:MKT 320F - FOUNDATIONS OF MARKETING
Subject:Marketing
University:University of Texas - Austin
Term:Fall 2011
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products
  • making goods and services available in the right quantities and locations, when the customers want them.  

channel of distribution
  • any series of firms or individuals who participate in the flow of products from the producer to final user/consumer 

Place Decisions Are Guided By Ideal Place Objectives
  • Product class sets framework for place decisions and help decide how much market exposure needed in a geographic area.

  •   Managers need to develop several strategies, each with its own place arrangements, if different market segments view a product in different ways.

  •   Place decisions must be made based on product life cycle because they have long-run effects. 

direct marketing
  • direct communication between a seller and an individual customer

    using a promotion method other than face-to-face personal selling 

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the most important reason for using an indirect channel of distribution is that an intermediary can often help producers serve customers needs better and at lower cost. 
what do intermeditieries and wholesalers do ? ften help producers serve customers needs better and cheaply. 
  • allow wider distribution of product and have the inventory to sell customers its products “right now.”

    • avoid credit risks with customer who can’t pay the invoice. Wholesalers provide credit to final customers. 

     

   
specialists can provide crucial information about customer needs and insights into difference in the market environment. 
  • provide info to bring buyers and sellers together, esp. useful when entering international markets. 

discrepancy of quantity
  • difference between the quantity of products it is economical for a producer to make and the quantity final users normally want

    - most manufactures of golf produce large quantities perhaps 200,000 to 500,000 in a given time period. the average golfer wants only a few balls at a time. Adjusting for this discrepantcy usually requires intermediaters - wholesalers and retailers 

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Discrepancy of assortment
  • difference between the lines a typical producer makes and the assortment the final user want 

    - golfer wants shoes, and gloves 

regrouping activities
  • adjust the quantities or assortments of products handled at each level in a channel of distribution. Digital forms of products require this too (ex. Hulu).

    - accumulating, bulk- breaking, sorting and assorting  

Accumlating
  • ollection products from many small producers, also with professional

    services (ex. Hospital has many health care specialists) 

    is especially important in less developed countries and in other situations , like agricultural markets, when there are many small producers 

Bulk breaking
  • dividing larger quantities into smaller quantities as products get closer

    to 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.    
this is usually is down by those closest to the final consumer or user , retailers or wholesalers who try to supply a wide assortment of products for the convenience of their customers. A wholesalers selling Yazoo tractors and mowers to golf courses might also carry Pennington grass seed and scott fertilizer. 
Hulu collects programming from a variety of television networks and movie studios and streams it over the internet to a computer. this accumulates content, this makes it easier for consumers to visit one site where they can choose what best meets their needs. 
bulk breaking - receives programming from networks in bulk all the episodes of family guy for example offers them viewing one episode at time. by providing viewers with features that tag and rate programs hulu also performs a sorting activity. The tagging system combines with other categories that develop and creats a assorting activity, that help consumers view collections of programs that match their interests
market commitment
  • deally, all members of channel system focus on the same target market at the end of the channel and sharing various marketing functions in appropriate ways 

    they are a better able to compete effectively for the customers's buisness 

Generated by Koofers.com
traditional channel system
  • various channel members little effort to cooperate with each other and considers only what is in their best interest 

    - specialization can make a channel more efficient. 


vertical conflicts occur between firms at different levels in the channel of distribution
producer and retailer disagree with how much promotion
game stop new games and old games 
horizontal conflicts occurs between firms at the same level in the channel of distribution 
- a bicycle store that keeps a complete line of bikes on display, has a knowledgeable sales staff, and lets customers take test riders isn't' happy to find ut that an online store with the little inventory  and no sales people offers customers lower prices on the same models. 
Channel captains-
  • manager who helps direct the activities of a whole channel and tries

    to avoid/solve problems. Most traditional systems lack this 

Generated by Koofers.com
Vertical marketing systems-
  • channel system in which the whole channel focuses on the same target market at the end of the channel. They are the dominant force in marketplace. 

corporate channel systems
  • corporate ownership all along the channel (manufacturing, wholesaling, and retailing) by internal expansion or buying other firms 

Ideal market exposure
  • makes a product available widely enough to satisfy target customers’ needs but not exceed them. 

intensive distribution
  • elling a product thru all responsible and suitable wholesalers/retailers who will stock or sell the product. Commonly used for convenience products and business supplies. Customers want products nearby. 

Generated by Koofers.com
Multichannel distribution
  • when a producer uses several competing channels to reach same target market perhaps by using several intermediaries in addition to selling directly. 

reverse channels
  • hannels used to retrieve products that customers no longer want

    due to recalls because of safety issues, repairing, or purchase mistake. 

exporting
  • selling some of what the firm produces in foreign markets (getting rid of surplus). Better if intermediaries develop marketing mix and handle problems with customs etc. 

licensesing
  • selling the right to use some process, trademark, patent, or other right for a fee or royalty. Most of the risk falls on the foreign firm buying the license and must plan the marketing mix as well. 

Generated by Koofers.com
management contracting
  • seller provides only management and marketing skills while others own the production and distribution facilities. 

joint venture domestic firm enters into a partnership with a foreign firm    
direct investment
  • parent firm has a division or owns a separate subsidiary firm in a

    foreign market which gives more control of market planning. This creates a strong presence and good reputation in foreign country and the firm does not have to share profits 

    - the firm gets to learn more about the new markets. 

channels of distribution n are in an organized network of agencies and institutions which, in combination, perform all the activities required to link the producers with users 
Generated by Koofers.com
industrial goods typically have an shorter channel of distribution than consumer goods
functions of channel contacting 
financial support 
sorting 
demand stimulation 
assume risk 
gather and transmit needed information 
storage and movement 
 bulk breaking 
multi channel marketing systems single firm uses two or more channels to reach customer segments 
benefit to the seller 
- increased market coverage 
- lower channel cost 
- more customized selling 
- more competition 
Generated by Koofers.com

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 products
  • making goods and services available in the right quantities and locations, when the customers want them.  

 channel of distribution
  • any series of firms or individuals who participate in the flow of products from the producer to final user/consumer 

 Place Decisions Are Guided By Ideal Place Objectives
  • Product class sets framework for place decisions and help decide how much market exposure needed in a geographic area.

  •   Managers need to develop several strategies, each with its own place arrangements, if different market segments view a product in different ways.

  •   Place decisions must be made based on product life cycle because they have long-run effects. 

 direct marketing
  • direct communication between a seller and an individual customer

    using a promotion method other than face-to-face personal selling 

 the most important reason for using an indirect channel of distributionis that an intermediary can often help producers serve customers needs better and at lower cost. 
 what do intermeditieries and wholesalers do ?ften help producers serve customers needs better and cheaply. 
  • allow wider distribution of product and have the inventory to sell customers its products “right now.”

    • avoid credit risks with customer who can’t pay the invoice. Wholesalers provide credit to final customers. 

     

   
 specialistscan provide crucial information about customer needs and insights into difference in the market environment. 
  • provide info to bring buyers and sellers together, esp. useful when entering international markets. 

 discrepancy of quantity
  • difference between the quantity of products it is economical for a producer to make and the quantity final users normally want

    - most manufactures of golf produce large quantities perhaps 200,000 to 500,000 in a given time period. the average golfer wants only a few balls at a time. Adjusting for this discrepantcy usually requires intermediaters - wholesalers and retailers 

 Discrepancy of assortment
  • difference between the lines a typical producer makes and the assortment the final user want 

    - golfer wants shoes, and gloves 

 regrouping activities
  • adjust the quantities or assortments of products handled at each level in a channel of distribution. Digital forms of products require this too (ex. Hulu).

    - accumulating, bulk- breaking, sorting and assorting  

 Accumlating
  • ollection products from many small producers, also with professional

    services (ex. Hospital has many health care specialists) 

    is especially important in less developed countries and in other situations , like agricultural markets, when there are many small producers 

 Bulk breaking
  • dividing larger quantities into smaller quantities as products get closer

    to final market. 

 sorting
  • separating products into grades and qualities desired by different target

    markets 

 Assortingputting together a variety of products to give a target market what it wants.    
this is usually is down by those closest to the final consumer or user , retailers or wholesalers who try to supply a wide assortment of products for the convenience of their customers. A wholesalers selling Yazoo tractors and mowers to golf courses might also carry Pennington grass seed and scott fertilizer. 
 Hulucollects programming from a variety of television networks and movie studios and streams it over the internet to a computer. this accumulates content, this makes it easier for consumers to visit one site where they can choose what best meets their needs. 
bulk breaking - receives programming from networks in bulk all the episodes of family guy for example offers them viewing one episode at time. by providing viewers with features that tag and rate programs hulu also performs a sorting activity. The tagging system combines with other categories that develop and creats a assorting activity, that help consumers view collections of programs that match their interests
 market commitment
  • deally, all members of channel system focus on the same target market at the end of the channel and sharing various marketing functions in appropriate ways 

    they are a better able to compete effectively for the customers's buisness 

 traditional channel system
  • various channel members little effort to cooperate with each other and considers only what is in their best interest 

    - specialization can make a channel more efficient. 


 vertical conflictsoccur between firms at different levels in the channel of distribution
producer and retailer disagree with how much promotion
game stop new games and old games 
 horizontal conflictsoccurs between firms at the same level in the channel of distribution 
- a bicycle store that keeps a complete line of bikes on display, has a knowledgeable sales staff, and lets customers take test riders isn't' happy to find ut that an online store with the little inventory  and no sales people offers customers lower prices on the same models. 
 Channel captains-
  • manager who helps direct the activities of a whole channel and tries

    to avoid/solve problems. Most traditional systems lack this 

 Vertical marketing systems-
  • channel system in which the whole channel focuses on the same target market at the end of the channel. They are the dominant force in marketplace. 

 corporate channel systems
  • corporate ownership all along the channel (manufacturing, wholesaling, and retailing) by internal expansion or buying other firms 

 Ideal market exposure
  • makes a product available widely enough to satisfy target customers’ needs but not exceed them. 

 intensive distribution
  • elling a product thru all responsible and suitable wholesalers/retailers who will stock or sell the product. Commonly used for convenience products and business supplies. Customers want products nearby. 

 Multichannel distribution
  • when a producer uses several competing channels to reach same target market perhaps by using several intermediaries in addition to selling directly. 

 reverse channels
  • hannels used to retrieve products that customers no longer want

    due to recalls because of safety issues, repairing, or purchase mistake. 

 exporting
  • selling some of what the firm produces in foreign markets (getting rid of surplus). Better if intermediaries develop marketing mix and handle problems with customs etc. 

 licensesing
  • selling the right to use some process, trademark, patent, or other right for a fee or royalty. Most of the risk falls on the foreign firm buying the license and must plan the marketing mix as well. 

 management contracting
  • seller provides only management and marketing skills while others own the production and distribution facilities. 

 joint venturedomestic firm enters into a partnership with a foreign firm    
 direct investment
  • parent firm has a division or owns a separate subsidiary firm in a

    foreign market which gives more control of market planning. This creates a strong presence and good reputation in foreign country and the firm does not have to share profits 

    - the firm gets to learn more about the new markets. 

 channels of distributionn are in an organized network of agencies and institutions which, in combination, perform all the activities required to link the producers with users 
 industrial goodstypically have an shorter channel of distribution than consumer goods
 functions of channelcontacting 
financial support 
sorting 
demand stimulation 
assume risk 
gather and transmit needed information 
storage and movement 
 bulk breaking 
 multi channel marketing systemssingle firm uses two or more channels to reach customer segments 
benefit to the seller 
- increased market coverage 
- lower channel cost 
- more customized selling 
- more competition 
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