Term
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Definition
| placement is getting the right product in the right place, at the right time, in the correct quantity to the customer, subject to the organizational objectives. |
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Term
| what does placement include? |
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Definition
| placement includes distribution, logistics, retailing and wholesaling. |
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Term
| what are channels or distribution? |
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Definition
| channels of distribution are defined as all organizations and structure involved in facilitating the sale and movement of product from producer to the final consumer |
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Term
| how do marketing logistics affect profits and competitiveness? |
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Definition
| distribution is a big overhead in many firms, squeezes margins |
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Term
| how do marketing logistics affect sales? |
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Definition
| if the product is not available the customer can't buy it |
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Term
| how do marketing logistics affect customer relationships and satisfaction? |
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Definition
| when the customer wants it, where they want it and in what quality |
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Term
| "______ of _____ is a source of competitive advantage" |
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Definition
| speed of deliver is a source of competitive advantage |
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Term
| what 6 factors influence placement decisions? |
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Definition
1. speed: door to door delivery time
2. dependability: deliver on time
3. capability: ability to handle different products
4. cost:
5: availability: geographic area served
6: flexibility: willingness to transfer modes and alter timing |
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Term
| marketing channel functions |
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Definition
risk taking: assuming the risks of carrying out the channel work
financing: acquiring and using funds to cover the costs of channel work
physical distribution: transporting and storing goods
negotiation: reaching an agreement on price and other terms
information: gathering and distributing relevant information about the environment
promotion: developing and spreading communication about an offer
contact: find and communicating with potential buyers
matching: shaping and fitting the offer to the buyer's needs |
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Term
| how are conventional channel vs a vertical channel organization? |
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Definition
in a conventional channel, the goods flow from the manufacturer to the wholesaler to the retailer to the customer.
in a vertical channel, the goods flow from the manufacturer to the retailer to the consumer? |
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Term
| in vertical marketing networks, the producer, wholesaler, and retailers act as a ______ network |
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Definition
| in vertical marketing networks, the producer, wholesaler, and retailers act as a unified network |
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Term
| what forms do vertical marketing networks take |
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Definition
1. corporate
2. contractual
3. administrered |
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Term
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Definition
| a VMN with a high degree of direct control that combines successive stages of production and distribution under single ownership |
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Term
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Definition
a VMN with a mild degree of direct control in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impacts than they could achieve alone.
ex- wholesaler sponsored retailer, retailer co-ops, franchises |
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Term
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Definition
| a VMN with a lesser degree of direct control that coordinates successive stages of production and distribution, not though common ownership or contractual ties, but through the size and power of one of the parties |
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Term
| what are some of the important distribution decisions? |
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Definition
warehouse locations
delivery methods
minimum order quantities
stocking levels |
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Term
| what are the three strategies to identify the number of intermediaries being used at each level? |
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Definition
1. exclusive: has the fewest number of intermediaries. gives a limited number of dealers the exclusive right to distribute the company's products in the territories
2. selective distribution: the use of more than one but less then all the intermediaries who are willing to carry the company's products
3. intensive distribution: uses the largest number of intermediaries. the product is stocked in as many outlets as possible |
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Term
| what are the three levels of market exposure |
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Definition
1. exclusive
2. selective
3. intensive |
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Term
| exclusive market exposure |
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Definition
a single supplier giving the company high levels of control and often a prestigious image. low competition, degree of market coverage, and purchase frequency. the customer is prepared to exert effort, so price skimming is often employed.
ex- BMW |
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Term
| selective market exposure |
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Definition
| several suppliers give moderate service. there is a medium/low level of market coverage and lower price competition, so market pricing is often used. however, purchases are not simple and repetitive |
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Term
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Definition
with many suppliers, there is a high degree of market coverage as well as a high level of competition or substitutes. in addition, there is low unit cost and immediate delivery leading to little or no service and ultimately low loyalty
ex- coca cola |
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Term
| what do you evaluate to decide what channel you should use? |
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Definition
positioning and pricing
power of suppliers in the industry (porter's 5 forces)
needs of the target market |
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Term
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Definition
| wholesaling includes all activities involved in selling goods and services to those buying for resale or business use-- essentially those that derive income from selling to other businesses |
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Term
| what are the 3 broad categories of wholesalers? |
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Definition
1. merchant- independently owned business that takes title to the merchandise it handles
2. brokers and agents- a broker brings buyers and sellers together and assists in negotiation (e.g. a real-estate agent); agents represent buyers or sellers on a more permanent basis
3. manufacture's sales branches- the outlet of the manufacture |
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Term
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Definition
| retailing is all those activities involved in selling goods or services directly to final consumer for their personal, non-business use |
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Term
| what are the 5 classifications of retail businesses? |
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Definition
1. amount of service- different products require different amount of service (self-service, limited service, full service)
2. product line sold- retailers can also be classified according to the depth and breadth of their product assortments
3. relative price emphasis
4. control of outlets
5. type of store cluster |
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Term
| what are the product line classifications of a retailer? |
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Definition
specialty stores
department stores
supermarkets
convenience
mass merchant or hypermarket
service business (ex- an airline) |
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Term
| what are the relative price emphasis classifications of a retailer? |
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Definition
discount stores: standard merchandise at lower prices
off price retailers: new version of discount store. ex- factory outlets
catalogue or showroom: sell high mark up, fast moving brand names at discount prices |
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Term
| what are the control of outlets classifications of a retailer? |
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Definition
corporate chain- 2 or more outlets commonly owned and controlled
voluntary chain and retailer cooperative
franchise organization
merchandising conglomerates (use several different retail forms under central ownership) |
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Term
| what is the type of store classification of a retailer? |
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Definition
| stores cluster together to increase customer pulling power. types of store clusters include central business district, regional shopping centere, etc. |
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Term
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Definition
| atmospherics are things that we can design into the environment to have an influence on customers, often without the conscious awareness of the customers. retailers must ensure that the atmospherics of the outlet is consistent with the expectations of the target market |
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Term
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Definition
| the overall perception the consumer has of the stores environment |
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Term
| how does one create a sensory retail experience? |
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Definition
| following the shift from buying products and services to buying experience, experimental retailing stimulates consumer emotions and senses to encourage buying. the experience should fit with the character of the brand, yet be unique and special at the same time. |
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Term
| how does place fit into the PLC? |
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Definition
introduction: exclusive or selective distribution for above the market products or price skimming OR intensive distribution at and below market products and price penetration
growth: as more wholesalers and retailers are interested in the product distribution increases
maturity: the product is readily available through intensive distribution
decline: the product is removed from many stores as there is little demand |
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