Term
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Definition
| individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users |
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Term
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Definition
| make the flow of products from producers to ultimate consumers possible |
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Term
Transactional
(Intermediaries) |
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Definition
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Term
Facilitation
(intermediaries) |
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Definition
| finance, marketing info, research |
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Term
Logistics
(Intermediaries) |
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Definition
gather, sort, disperse products
WOMIT:
warehousing
order processing
materials
inventory
transportation |
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Term
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Definition
ISE
Intensive: to as many outlets as possible
Selective: To a few outlets within a specific geographical area
Exclusive: ONE retailer in a specific geographical area |
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Term
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Definition
channel conflict that arises when a channel member bypasses another member and sells or buys products directly
(taking away the intermediaries by terminating a distributor and selling directly to retailers) |
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Term
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Definition
independently owned firm
merchants make profits from the sale of the merchandise they own |
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Term
| Limited service merchant wholesalers |
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Definition
Rack jobbers: furnish racks and perform all channel functions
Cash and carry: don't supply transportation, carry limited product assortment (groceries)
Drop Shippers: solicit orders and have merchandise sent from producer to consumer
Truck jobber: small warehouse of trucks for distribution to retailers |
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Term
| Full service merchant wholesalers |
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Definition
full line: carry an assortment of merchandise and perform all channel functions (drug store)
Specialty: narrow range of products but extensive assortment within product lines (health food stores) |
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Term
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Definition
manufacturing agent: works for SEVERAL producers, responsible for the transactional function (buying and selling)and carry mom-competitive complimentary products
Selling Agent: works for a SINGLE producer and is responsible for carrying out all marketing functions |
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Term
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Definition
branch office: carries inventory and performs wholesaling activities
sales office: no inventory, performs sales functions and serves as an alternate for agents and brokers |
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Term
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Definition
| brings buyers and sellers together but does not continue the relationship, negotiates a contract between two parties and moves on to another task |
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Term
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Definition
| sell, rent, and provide products or services to ultimate consumers for personal family or household use |
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Term
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Definition
create value for the customer
Form
Time
Place
Possession |
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Term
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Definition
Form of ownership
level of service
merchandise line
non-store |
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Term
form of ownership
(type of classification) |
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Definition
independently owned: convenient potential service
corporate: multiple outlets, common ownership, similar merchandise, consistent management policies
contractual: independently owned but ban together like a chain (franchisee) |
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Term
Level of service
(type of classification) |
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Definition
self: customers perform all functions
Limited: some services are provided and some are left to customers to perform
Full: provide many or all services to customers |
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Term
Merchandise Line
(type of classification) |
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Definition
*different types (variety) of products a store carries and its assortment
depth: stroe carries a large ASSORTMENT of each item
breadth: store carries a VARIETY of different items |
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Term
non-store
(type of classification) |
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Definition
*occurs outside a retail outlet with a varying amount of consumer and producer services provided
vending machines, direct mail, TV, online, telemarketing, direct sale |
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Term
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Definition
Pricing: markups (original markups, maintained markups) mark downs, off price (TJ Maxx)
Store Location: central business district (downtown), regional center (shopping mall), strip mall with an anchor store, power strip with multiple anchor stores |
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Term
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Definition
to inform, persuade or remind through multiple communication channels and tools
ads, personal selling, PR, sales promotions, direct marketing |
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Term
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Definition
Intro stage
growth stage
maturity stage |
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Term
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Definition
| encourage a store to order a stock product and encourage consumers to ask stores to carry the product |
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Term
| promotional Decision process |
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Definition
planning
implementing- execute the plans
control- evaluate and fix |
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Term
Planning
(Promotional decision making process) |
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Definition
identify target audience
specify promotion objectives (awareness, interest, evaluation, trial, adoption)
Promotion budget (approaches: % of sales, all you can afford, competitive, objectives and tasks)
Design the promotion
Schedule the promotion |
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Term
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Definition
short term offfer designed to arouse interest inn buying
*consumer oriented promos
*trade oriented promos |
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Term
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Definition
DIRECT communication with the consumer to generate a response in the form of an order
*direct orders: transaction is complete
*lead generation: leads to the buyer asking for further information
*traffic generation: motivates people to visit a business |
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Term
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Definition
pioneering: initial intro of the product
competitive: promote brand features and benefits by persauding the target market
Reminder: reinforce previous knowledge |
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Term
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Definition
*identify target markets
*specify ad objectives (ex: to create awareness)
*set the ad budget
*design for the ad (fear, sex, humor)
*create the message (copyrighters make the ad text and the ideas are translated into the actual ad)
*select the media (consider reach, ratings, frequency, CPM)
*schedule (continuous, flighting, pulse)
*execute (pretest, use agencies, product placement)
*evaluate (post test) |
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Term
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Definition
buyer turnover: how often new buyers enter the market (more buyers= more ads)
purchase frequency: more purchases=less repitition of ads
forgetting rate: rate at which the consumer forgets the ad if it is not seen |
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Term
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Definition
non-personal presentation witout direct cost
*news release
*PSA- free space donated by the media |
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Term
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Definition
5 skills for buiklding stronger client relationships
1. optimism
2. resilience
3. self- motivation
4. personality
5. empathy |
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Term
Prospecting
(personal selling process) |
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Definition
search for potential customers
*canvas
*lead: name of possible customer
*prospect: wants/needs the product
*qualified prospect: wants the product, can afford it, is the decission maker |
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Term
Pre-Approach
(personal selling process) |
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Definition
gathering info, decide how to approach the prospect
*know their objectives
*know the best times to contact them
*know the cost of reaching the prospect |
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Term
Approach
(personal selling process) |
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Definition
initial meeting
*getting attention
*stimulate interest
*build foundation for the presentation and the relationship |
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Term
presentation
(personal selling process) |
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Definition
convert the prospect to a customer
*stimulus response: appropriate stimulus leads to a purchase, multiple approaches are tried until there is a positive stimulus response
*formula selling: info provided in an accurate step by step manner
*needs satisfaction: listening to the needs of the customer
*adapt presentation to fit thier needs
*consultative- problem recognition and resolution
*handle objections appropriately (don't take no for an answer) |
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Term
Close
(personal selling process) |
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Definition
committment to the purchase
*trial- prospect makes decision
*assumptive- discuss terms of sale as if the sale has been finalized (assuming it has been finalized)
*urgent- commit prospect quickly by referencing the timeline of the purchase |
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Term
Sales Plan
(sales management function) |
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Definition
describe what is to be acheived and where and how the efforts of a salesperson should be deployed
*set objective and organize sales force |
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Term
| setting objectives for a sales plan |
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Definition
input: objectives related to number of sales and selling expenses
output: objectives related to dollars, unit sales volume, new customers, and profit |
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Term
| organizing a sales force for a sales plan |
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Definition
*geography: split salespeople up into regions and district with defined geographical borders so selling is not overlapped
*expertise sellers
*specialized sellers
*develop account policies: who salespeople should contact, what kinds of selling and customer activities should be engaged and how they should be carried out |
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Term
Implementation
(sales management function) |
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Definition
recruit and select sales people
*job analysis, job description, job specification
*KSA- knowledge, skills abilities
*BFOQ- Bona fide occupational qualifications
*evaluate recruits through resumes interviews and references
*training (seminars)
*compensation: straight salary or commission or combo (commission motivates salespeople) |
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Term
Evaluate and control
(sales management function) |
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Definition
quantitative: sales quotas, expenses, new accounts
Behavioral (qualitative): attitude, professionalism, communication skills |
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Term
| Illegal practices and unethical practices |
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Definition
illegal: price discrimination, price fixing, bribes and kickbacks
unethical: deceptive pricing, predatory pricing |
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Term
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Definition
| right to be safe, choose, be informed, be heard |
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Term
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Definition
utilitarianism: greatest good for the greatest amount of people
moral Idealism: individual rights are universal regardless of the outcome |
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Term
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Definition
| protect certain industries within a country's economy from foreign competition through tarriffs and quotas |
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Term
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Definition
increase market share
open new markets
competition
governmental- economy growth through foreign economies
production- outsource, offshore, cheap labor, greater source of raw materials overseas |
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