Mktg Test-April 17

Term
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Marketing channel (channel of distribution)
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Terms in this set (123)
Marketing channel (channel of distribution)
a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
channel members
all parties in the mktg channel who negotiate w/one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
discrepancy of quantity
the difference between the amount of product between the amount of product produced and the amount an end user wants to buy
discrepancy of assortment
the lack of all the items a customer needs to receive full satisfaction from a product or products
temporal discrepancy
a situation that occurs when a product is produced but a customer is not ready to buy it
spatial discrepancy
the difference between the location of a producer and the location of widely scattered markets
retailer
a channel intermediary that sells mainly to consumers
merchant wholesaler
an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
agents and brokers
wholesaling intermediaries who do not take title to a product but facilitate its sale from a producer to end user by representing retailers, wholesalers, or manufacturers
logistics
the efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies
direct channela distribution channel in which producers sell directly to consumersdual distribution (multiple distribution)the use of two or more channels to distribute the same product to target marketsstrategic channel alliancea cooperative agreement between business firms to use the other's already established distribution channelintensive distributiona form of distribution aimed at having a product available in every outlet where target customers might want to buy itselective distributiona form of distribution achieved by screening dealers to eliminate all but a few in any single areaexclusive distributiona form of distribution that establishes one or a few dealers w/in a given areaarm's length relationshipa relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions w/ no or low expectation of future interaction or servicecooperative relationshipa relationship between companies that takes the form of informal partnership w/ moderate levels of trust and information sharing as needed to further each company's goalsintegrated relationshipa relationship between companies that is tightly connected, w/ linked processes across and between firm boundaries and high levels of trust and interfirm commitmentchannel powerthe capacity of a particular mktg channel member to control or influence the behavior of other channel memberschannel controla situation that occurs when one mktg channel member intentionally affects another member's behaviorchannel leader (channel captain)a member of a mktg channel that exercises authority and power over the activities of other channel memberschannel conflicta clash of goals and methods between distribution channel membershorizontal conflicta channel conflict that occurs among channel members on the same levelvertical conflicta channel conflict that occurs between different levels in a mktg channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailerchannel partnering (channel cooperation)the joint effort of all channel members to create a channel that serves customers and creates a competitive advantageretailingall the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness useindependent retailera retailer owned by a single person or partnership and not operated as part of a larger retail institutionchain storea store that is part of a group of the same stores owned and operated by a single organizationfranchisethe right to operate a business or to sell a productgross marginthe amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracteddepartment storea store housing several departments under one roofbuyera department head who selects the merchandise for his or her department and may also be responsible for promo and personnelspecialty storea retail store specializing in a given type of merchandisesupermarketa large, departmentalized, self-service retailer that specializes in food and some nonfood itemsscrambled merchandisingthe tendency to offer a wide variety of nontraditional goods and services under one roofdrugstorea retail store that stocks pharmacy-related products and services as its main drawconvenience storea mini supermarket, carrying only a limited line of high-turnover convenience goodsdiscount storea retailer that competes on the basis of low prices, high turnover, and high volumefull-line discount storea retailer that offers consumers very limited of well-known, nationally branded "hard goods"mass merchandisinga retailing strategy using moderate to low prices on large quantities of merchandise and lower levels of service to stimulate high turnover of productssupercentera retail store that combines groceries and general merchandise goods w/ a wide range of servicesspecialty discount storea retail store that offers a nearly complete selection of single-line merchandise and uses self-service, discount prices, high volume and high turnovercategory killera specialty discount store that heavily dominates its narrow merchandise segmentwarehouse membership cluba limited service merchant wholesaler that sells a limited selection of brand name appliances, household items, and groceries on a cash and carry basis to members, usually small businesses and groupsoff price retailera retailer that sells at prices 25 percent or more below traditional department store prices bc it pays cash for its stock and usually doesnt ask for return privilegesfactory outletan off-price retailer that is owned and operated by a manufacturernonstore retailingshopping w/out visiting a storeautomatic vendingthe use of machines to offer goods for saledirect retailingthe selling of products by representatives who work door-to-door, office-to-office, or at home sales partiesdirect mktg (direct response mktg)techniques used to get consumers to make a purchase from their home, office, or other nonretail settingtelemarketingthe use of the telephone to sell directly to consumersonline retailinga type of shopping available to consumers w/ personal computers and access to the internetfranchisorthe originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its productfranchisean individual or business that is granted the right to sell another party's productretailing mixa combination of the six P's-product, place, promo, price, presentation, and personnel, to sell goods and services to the ultimate consumerproduct offeringthe mix of products offered to the consumer by the retailer, also called the product assortment or merchandise mixdestination storea store that consumers purposely plan to visitatmospherethe overall impression conveyed by a store's physical layout, decor, and surroundingspricethat which is given up in an exchange to acquire a good or servicerevenuethe price charged to customers multiplied by the number of units soldprofitrevenue minus expensesreturn on investmentnet profit after taxes divided by total assetsmarket sharea company's product sales as a percentage of total sales for that industrystatus quo pricinga pricing objective that maintains existing prices or meets the competition's pricesdemandthe quantity of a product that will be sold in the market at various prices for a specified periodsupplythe quantity of a product that will be offered to the market by a supplier at various prices for a specified periodprice equlibriumthe price at which demand and supply are equalelasticity of demandconsumers' responsiveness or sensitivity to changes in priceelastic demanda situation in which consumer demand is sensitive to changes in priceinelastic demanda situation in which an increase or a decrease in price will not significantly affect demand for the productunitary elasticitya situation in which total revenue remains the same when prices changeyield management systemsa technique for adjusting prices that uses complex mathematical software to profitably fill unused capacity by discounting early purchases, limiting early sales at these discounted prices, and overbooking capacityvariable costa cost that varies w/ changes in the level of outputfixed costa cost that does not change as output is increased or decreasedavg variable cost (AVC)total variable costs divided by quantity of outputavg total cost (ATC)total costs divided by quantity of outputmarginal cost (MC)the change in total costs associated w/ a one-unit change in outputmarkup pricingthe cost of buying the product from the producer, plus amounts for profit and for expenses not otherwise accounted forkeystoningthe practice of marking up prices by 100 percent, or doubling the costprofit maximizationa method of setting prices that occurs when marginal revenue equals marginal costmarginal revenue (MR)the extra revenue associated w/ selling an extra unit of output or the change in total revenue w/ a one-unit change in outputbreak-even analysisa method of determining what sales volume must be reached before total revenue equals total costsselling against the brandstocking well known branded items at high prices in order to sell the store brands at discounted pricesextraneta private electronic network that links a company w/its suppliers and customersprestige pricingcharging a high price to help promote a high quality imageprice strategya basic, longterm pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycleprice skimminga pricing policy whereby a firm charges a high intro price, often coupled w/ heavy promopenetration pricinga pricing policy whereby a firm charges a relatively low price for a product initially as a way to reach the mass marketstatus quo pricingcharging a price identical to or very close to the competition's priceunfair trade practice actslaws that prohibit wholesalers and retailers from selling below costprice fixingan agreement between two or more firms on the price they will charge for a productpredatory pricingthe practice of charging a very low price for a product w/ the intent of driving competitors out of business or out a marketbase pricethe general price level at which the company expects to sell the good or servicequantity discountprice reduction offered to buyers buying in multiple units or above a specified dollar amountcumulative quantity discounta deduction from list price that applies to the buyer's total purchases made during a specific periodnoncumulative quantity discounta deduction from list price that applies to a single order rather than to the total volume of orders placed during a certain periodcash discounta price reduction offered to a consumer, an industrial user, or a mktg intermediary in return for prompt payment of a billfunctional discount (trade discount)a discount to wholesalers and retailers for performing channel functionsseasonal discounta price reduction for buying merchandise out of seasonpromo allowance (trade allowance)a payment to a dealer for promoting the manufacturer's productsrebatea cash refund given for the purchase of a product during a specific periodvalue-based pricingsetting the price at a level that seems to the customer to be a good price compared to the prices of other optionsFOB origin pricinga price tactic that requires the buyer to absorb the freight costs from the shipping point ("free on board")uniform delivered pricinga price tactic in which the seller pays the actual freight charges and bills every purchaser an identical, flat freight chargezone pricinga modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zonefreight absorption pricinga price tactic in which the seller pays all or part of the actual freight charges and does not pass them on to the buyerbasing point pricinga price tactic that charges freight from a given (basing) point, regardless of the city from which the goods are shippedsingle-price tactica price tactic that offers all goods and services at the same price (or perhaps 2 or 3 prices)flexible pricing (variable pricing)a price tactic in which different customers pay different prices for essentially the same merchandise bought in equal quantitiesprice liningthe practice of offering a product line w/ several items at specific price pointsleader pricing (loss leader pricing)a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the storebait pricinga price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandiseodd-even pricing (psycho pricing)a price tactic that uses odd-numbered prices to connote bargains and even-numbered prices to imply qualityprice bundlingmktg two or more products in a single package for a special priceunbundlingreducing the bundle of services that comes w/ the basic producttwo-part pricinga price tactic that charges two separate amounts to consume a single good or serviceconsumer penaltyan extra fee paid by the consumer for violating the terms of the purchase agreementproduct line pricingsetting prices for an entire line of productsjoint costscosts that are shared in the manufacturing and mktg of several products in a product linedelayed quotation pricinga price tactic used for industrial installations and many accessory items in which a firm price is not set until the item is either finished or deliveredescalator pricinga price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is madeprice shadingthe use of discounts by salespeople to increase demand for one or more products in a line