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MKTG 3433 Exam 3-dub ashton
Terms in this set (134)
Adjusting the quantities and/or assortments of products handled at each level in a channel of distribution
serve final consumer
serve retailers and business,non competing providers
not at risk,dont take ownership
does wholesaler own product?
exceed customer expectations
-Those who wait for all conditions to be perfect before acting, Never Act!
Marketing Mix Issues of Focus
Kinds of Middleman
Kinds and Locations of Stores
How to Handle Transporting and Storing
Pull Channel Strategy
Push Channel Strategy
a set of interdependent organizations involved in the process of making goods and services available for use or consumption.
-The channel consists of institutions efficiently arranged. (Manufacturers, Wholesalers, Retailers, Facilitators.)
-The channel management process is constant, 24/7.
-Distribution objectives guide channel activities.
-Channels represent the largest marketing costs.
= f (Number of Potential Buyers * Velocity of Replenishment)
-gain control of retail marketplace
Retail Partners>>Retail Partners>>Retail partner
The Marketing Concept
(this term)= Consumer Orientation = Marketing Orientation = Customer Satisfaction
4 P's: Product, Price, Promotion, and Place.
Marketing Mix + Target Market.
-Penetration, Market and product Development
a routine repurchase that may have been made many times before and are RED ZONE decisions.
the process where some review of the buying situation is done and especially when a new supplier is evaluated for supplying existing needs and are YELLOW ZONE decisions.
New task buying
when an organization has a new need and the buyer wants a great deal of information and are BLUE ZONE decisions.
business product classifications
usage/application based/targeted for the B2B mkt
important capital items such as buildings, land rights, and major equipment.
a long-lasting product that can be used and depreciated for many years.
unprocessed natural or agricultural expense items such as logs, iron ore, wheat, and cotton that are moved to the next production process with little handling.
processed expense items that become part of a finished product and may be finished goods or materials needing further processing
expense items that do not become part of a finished product.
specialized services that support operations of a firm.
red zone decision making
-Frequently Purchased/Quickly Consumed-same brand at walmart-routine/repetitive
-Inexpensive-under 5$ bought frequently
-Little Perceived Risk-comfy with brand name
-Little/No Additional Information Required
yellow zone decision making
-Less Frequent Purchase-process some info
-Repeated/Delayed Consumption-semi durable products=clothes
-Some Perceived Risk-if wrong product bought
-Additional Information Beneficial to Buyer
blue zone decision making
-Very Infrequent Purchase- low IQ of product
-Perceived High Risk- tend to be more
durable=long term commitment
-Much Additional Information Desired-significant
info from ads
Routine problem solving
when consumers regularly select a particular way of satisfying a need when it occurs.
-red zone decision making
Limited problem solving
when a consumer is willing to put some effort into deciding the best way to satisfy a need.
-yellow zone decision making
Extensive problem solving
the type of problem solving consumers use for a completely new or important need--when they put much effort into deciding how to satisfy it.
-blue zone decision making
products a consumer needs but isn't willing to spend much time or effort shopping for and are usually thought to be RED ZONE products
products that are bought often, routinely, and without much thought.
products that are bought quickly as unplanned purchases because of an immediate strongly felt need.
products purchases because of merchandising or opportunity and will be consumed or used at some future point in time
products that are purchased immediately when the need is great.
semidurable and durable products
More risk from longer term or delayed consumption and are yellow and blue zone products
products that a customer feels are worth the time and effort to compare with competing products.
-Price is not a major factor in purchase.
-Special in the consumers mind.
Heterogeneous shopping products
shopping products the customer sees as different and wants to inspect for quality and suitability.
-Wants to shop and compare attributes.
-Consumers may rely less on brand names.
-Consumers may desire source services.
-More conspicuous in use
Homogeneous shopping products
shopping products the customer sees as basically the same and wants at the lowest price.
-Wants to shop and compare prices of alternatives.
-Consumers may compare source services.
-Less conspicuous in use.
consumer products that the customer really wants and makes a special effort to find.
-It is not the extent of searching but rather the willingness search that makes this good a (this term)
Convenience Specialty Products
Low cost products for which the consumer is willing to shop and will not accept substitute brands
-Not broad product categories-but brands.
-Need not be expensive or durable items.
products that potential customers don't yet want or know they can buy.
New unsought products
products offering really new ideas that potential customers don't know about yet.
Regular unsought goods
products or services that consumers may need but do not regularly think about their acquisition until a time of recognized need occurs.
final customers do not recognize the brand even though branders may use the brand name for identification and inventory control.
customers acknowledge the brand for identification purposes.
target customers will usually choose the brand over other brands perhaps because of habit or past favorable experience.
customers insist on a product brand and are willing to exercise considerable effort to acquire the product brand.
potential customers will not buy the product brand unless its image is changed to meet their expectations.
the use of a name, term, symbol, or design to identify a product source.
products that have no brand at all other than identification of their contents.
-No name cigarettes,Plain Label Products
brands created by wholesale and retail middlemen and are sometimes called deler brands or house brands.
-Kenmore, DieHard, Craftsman, Equate
brands that identify products marketed by manufacturers and are sold in middleman outlets not controlled or owned by the brander.
a branding strategy in which products are given brand names that are newly created and generally not connected to names of existing brands offered by the company.
-Sam's Cola, Walgreens Batteries, etc.
-lever's aim, close up,pepsodent toothpastes
-marketing practice involving the use of a single brand name for the sale of two or more related products.
-Maytag appliances,Heinz 57 Varieties,Great Value
-The added value that a certain brand name gives to a product.
-value of a brand overall strength in the market and is judged on attributes of
of the brand among the target market.
Dimensions of Brand Equity: The Young & Rubicam Model
-differentiation-mark mix better then comp
trying to increase sales by selling present products in new markets.
--Extending the Product Life Cycle
-Increasing the Number of users
offering new or improved products for present markets.
--Extending the Product Life Cycle
-Product Improvement & Finding New Uses
the marketing mix is distinct from and perhaps better than what's available from a competitor.
-Product (this term)-Positioning products to appeal to distinct consumer groups/segments because of product uniqueness/benefits.
trying to increase sales of a firm's present products in its present markets probably through a more aggressive marketing mix.
--Extending the Product Life Cycle
-Increasing Frequency of Use
Discrepancy of quantity
- Quantity of products it is economical for a producer to make
- Quantity final users or consumers normally want
Discrepancy of assortment (QUALITY)
- Lines a typical producer makes
- Assortment final consumers or users want
--Extending the Product Life Cycle
-Changing Package Sizes, Labels, or Product Quality
Product life cycle-def
the stages a new product idea goes through from beginning to end of its demand.
a stage of the product life cycle when sales are low as a new idea is first introduced to a market.
a stage of new competition when the product life cycle industry sales grow faster but industry profits rise and then start falling.
a stage of the product life cycle when industry sales rise at a slower rate of increase and competition gets tougher.
that point in the product life cycle when sales have reached their peak and will soon bebin to fall into sales decline.
a stage of the product life cycle when sales are decreasing throughout and new products replace the old.
Collecting products from many small producers
- Raw materials
Functions of the Channel
Universal Functions of Marketing
-Expectations = Routinization
buying, selling, and risk assumption
assembly, storage, sorting, and transportation.
service, financing, communicating, leadership.
Black box approach
-Interpersonal Determinants- situational
-Cultural Influences (congruence)
-Social Influences (social class, etc.)
-Family Influences (spousal influence)
-Opinion Leadership & Reference Groups
-Personal Determinants- situational
-Needs and Motives (motivation)
-Attitudes (cognitive, affective, conative)
-Learning (memory, recall, habit)
Separating products into grades and qualities desired by different target markets
Dividing larger quantities into smaller quantities as products get closer to the final market
Putting together a variety of products to give a target market what it wants
The Adoption Curve
-Factors affecting product adoption-
-relative advantage-Functional Improvement
-complexity-New Learning Required,easy?
-compatibility-Existing Shopping Styles
-trialability-Use w/o commitment-size matters
-observability-Market Visibility perceived risk
Complete set of firms/facilities/logistics activities that are involved in procuring materials, transforming them into intermediate and finished products, and distributing them to customers
Channel of distribution
Any series of firms or individuals who participate in the flow of products from producer to final user or consumer
Traditional channel systems
A channel in which the various channel members make little or no effort to cooperate with each other
Administered channel systems
Various channel members informally agree to cooperate with each other
- Usually include a channel captain
A manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts
Corporate channel systems
Corporate ownership all along the channel
Contractual channel systems
Various channel members agree by contract to cooperate with each other
Making goods and services available in the right quantities and locations when and where customers want them
Direct communication between a seller and an individual customer using a promotion method other than face to face personal selling
Simple Indirect Channels
Retailer to consumer
- Very short
- Generally durable
- Yellow and blue zones
Compound Indirect Channels
Wholesaler to retailer to consumer
- Intermediate in length
- Generally yellow and blue zones
Complex Indirect Channels
Agent/broker to wholesaler to retailer to consumer
- Consumable convenience goods
- Generally red zone and some yellow zone
When a producer uses several competing channels to reach alternative target market perhaps using several middlemen in addition to selling directly
Ideal market exposure
Product is available widely enough to satisfy target customers' needs but not exceed them
Selling a product through all responsible and suitable wholesalers or retailers who will stock and/or sell the product
- Convenience/consumables (Red)
-A channel policy in which a manufacturer of a convenience product attempts to saturate the market.
-(this term/Broad Availability
Customer desires convenience
Customer is self-sufficient
Customer is well-informed
Selling through only those middlemen who will give the product special attention
- Shopping/semi-durables/durables (Yellow)
-A channel policy in which a firm chooses only a limited number of retailers to handle its product line. Commonly use for shopping goods.
Customer willingness to shop
Sales help is available
Customer seeks information
Selling through only ONE middleman at the wholesale or retail level in a particular geographic area and contractual agreements
- Specialty/unique (Blue)
-A channel policy in which a firm grants exclusive rights to a single wholesaler or retailer to sell its products in a particular geographic area.
Customer service level
How rapidly and dependably a firm can deliver what customers want.
A special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs
Amount of goods being stored or being made available for purchase to the target audience
Economic Order Quantity (EOQ)
Quantity of product that is appropriate within a retail channel level of distribution
Transporting, storing, and handling of goods to match target customers' needs with a firm's marketing mix both within individual firms and along a channel of distribution
Physical distribution (PD) concept
All transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system which seeks to minimize the cost of distribution for a given customer service level
Storing facilities owned or leased by companies for their own use
Independent storing facilities where marketers and producers may store their output and make loans against the inventory stored
Marketing function of holding goods until needed for sale
Marketing function of moving goods throughout the supply chain system
Firms whose main function is providing wholesaling activities and selling B2B markets but not final consumers
All of the activities involved in the sale of products to final consumers
Middlemen who that sell products for several non-competing marketers but do not own or take title to the products they sell
-do not take tile to merchandise/goods
Agent middlemen who sell similar products for several noncompeting producers for a commission on what is actually sold
Agent middlemen who specialize in bringing buyers and sellers together and their main value added benefit is information about suppliers and demanders
Selling and delivering products through vending machines and providing immediate convenience for satisfaction of a felt needs in potential high demand locations
Merchant wholesalers who provide all the wholesaling functions including transactional, logisitcal, and financing services
Limited function wholesalers
Merchant wholesalers who provide only some wholesaling functions like cash and carry wholesalers
Wheel of Retailing Hypothesis
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
Larger stores that are organized into many separate departments and offer many product lines
Single line stores
Stores that specialize in certain lines of related products rather than a wide assortment sometimes
Convenience food stores
A convenience oriented variation of the conventional limited line food stores and is commonly used for fill-in items or small quantity purchases
Retailers carrying any product lines that they think they can sell profitably like the inventory model of a standard Walgreens store
Very large stores that try to carry not only foods and drug items, but all goods and services that the consumer purchases routinely like staples
Large stores specializing in groceries with self service and wide assortments of staple food items and may also use scramble merchandising methods
Mass merchandising concept
the idea that retailers should offer low prices to get faster turnover and greater sales volume by appealing to larger numbers of business or household buyers.
Large, self service stores with many departments that emphasize soft goods like housewares, clothing, and fabrics and staples like health and beauty aids and selling on lower margins to get faster turnover
Firm that owns and manages more than one store and often it is many branches or stores and manages via centralized decision making
Retailer sponsored groups, formed by independent retailers, to run their own buying organizations and conduct joint promotion efforts to be able to achieve better price competitiveness
Wholesaler sponsored groups that work with independent retailers that helps smaller independent operators to become more competitive and commonly have the same store identity like True Value Hardware and Rexall Drugs
A franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units and purchase the right to use the franchisor's brand but must share also the gross profits of the franchisee
General merchandise wholesalers
Service wholesalers who carry a wide variety of nonperishable items such as hardware, electrical supplies, plumbing supplies, furniture, drugs, cosmetics, and automobile equipment
Middlemen who own and take title to the products they sell at both the wholesale and retail levels of the channel of distribution
-take title to inventory/good
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