Term
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Definition
| any intermediary with legal authority to act on behalf of the manufacturer |
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Term
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Definition
| Consists of 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
| the producer and the ultimate consumers deal directly with each other. No intermediaries and the produce performs all channel functions |
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Term
| electronic marketing channel |
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Definition
| employ the internet to make products and services available for consumption or use by consumers or organizational buyers. They combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers |
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Term
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Definition
| an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product |
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Term
| strategic channel alliance |
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Definition
| one firms marketing channel is used to sell another firms products. Popular in global marketing |
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Term
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Definition
| the combination of successive stages of production and distribution under a single ownership is a corporate vertical marketing system. A producer might own the intermediary at the next level down in the channel which is called forward integration. (ralph lauren manufactures clothing and also owns apparel shops) |
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Term
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Definition
| A retailer might own a manufacturing operation which is called backward integration. (grocery store operate manufacturing facilities that produce everything from aspirin to cheese for sale under their own label) |
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Term
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Definition
| contractual arrangement between a parent company (franchiser) and an individual or firm (franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules |
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Term
| 3 degrees of distribution density |
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Definition
Intensive: a firm tries to place its products and services in as many outlets as possible. Usually chosen for convenience products or services such as candy, fast food, newspapers, and soft drinks
Exclusive: extreme opposite of intensive distribution because only one retailer in a specified geographical area carries the firms products. Typically chosen for specialty products such as womens fragrances and men and women apparel and accessories
Selective: lies between these two extremes and means that a firm selects a few retailers in a specific geographical area to carry its products. Weds some of the market coverage benefits of intensive distribution to the control over resale evident with exclusive distribution |
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Term
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Definition
| Logistics involve activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. The performance of these activities is logistics management, the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements |
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Term
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Definition
| the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers. An important feature of supply chain management is its application of sophisticated information technology that allows companies to share and operate systems for order processing, transportation scheduling, and inventory and facility management |
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Term
| A responsive supply chain |
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Definition
| targets customers who desire having the most up-to-date computer systems customized in their needs. These customers are also willing to wait to have their customized computer system delivered in a few days, rather than picking out a model at a retail store and they are willing to pay a reasonable, though not the lowest, price in the marketplace |
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Term
| An efficient supply chain |
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Definition
may use inexpensive, but slower, modes of transportation, emphasize economies of scale in its production process by reducing the variety of systems.
Keeps relatively low inventory levels, and most of it is stocked in stores available for sale, not in a warehouse. Uses cross docking to operate only a small number of distribution centers to service neighborhoods |
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Term
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Definition
Estimated that logistics costs 25-30% of the retail price that you would pay for a new car
includes expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling |
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Term
| Integrated marketing communications (IMC) |
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Definition
| the concept of designing marketing communications programs that coordinate all promotional activities (advertising, personal selling, sales promotion, public relations, and direct marketing) to provide a consistent message across all audiences. Is a key element in a company's customer experience management strategy |
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Term
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Definition
the process of conveying a message to others, and it requires six elements: a source, message, channel of communication, receiver, and the process of encoding and decoding.
the source may be a company or person who has information to convey. The information sent by a source, such as a description of a new smartphone, forms the message. The message is conveyed by a means of a channel communication such as a salesperson. Customers who hear, read or see the message are the receivers |
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Term
| Promotional mix: advertising, personal selling, public relations, sales promotion, direct marketing |
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Definition
Promotional element, mass or customized, cost, strengths, weaknesses
advertising: mass, fees paid for space or time, efficient means for reaching large numbers of people, high absolute costs and difficult to receive good feedback
personal selling:customized, fees paid to salespeople as either salaries or commissions, immediate feedback, very persuasive, can select audience, can give complex information; extremely expensive per exposure, messages may differ between salespeople
Public relations: mass, no direct payment to media, often most credible source in the consumer's mind; difficult to get media cooperation
Sales-promotion: mass, wide range of fees depending on promotion selected, effective at changing behavior in short run and is very flexible; easily abused and duplicated and can lead to promotion wards
Direct marketing: customized, cost of communication through mail, telephone, or computer, messages can be prepared quickly and facilitates relationship with customer; declining customer response and database management is expensive |
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Term
| Promotional objectives of each stage of the product life cycle |
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Definition
introduction: to inform' publicity in magazines, advertising, salesforce calling on intermediaries, sales promotion in the form of free samples
Growth: to persuade; personal selling to intermediaries, advertising to differentiate a product from competing brands
maturity: to remind; reminder advertising, sales promotion in form of discounts, coupons, and events, limited personal selling, direct-mail reminders
Decline: to phase out; little money spent on advertising |
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Term
| Product pioneering advertising |
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Definition
| used in the introductory stage of the product life cycle; tells people what a product is, what it can do, and where it can be found. The key objective is to inform the target market |
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Term
| Product competitive advertising |
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Definition
| Advertising that promotes a specific brand's features and benefits. The objective of these messages is to persuade the target market to select the firm's brand rather that that of a competitor |
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Term
| Product Reminder advertising |
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Definition
| used to reinforce previous knowledge of a product. It is good for products that have achieved a well-recognized position and are in the mature phase |
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Term
| Objective of Institutional advertising |
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Definition
| build goodwill or image for an organization rather than promote a specific good or service |
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Term
| Institutional Pioneering advertising |
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Definition
| used for announcements about what a company is, what it can do, or where it is located |
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Term
| Competitive institutional advertising |
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Definition
| promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers |
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Term
| Reminder Institutional advertising |
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Definition
| Bring the company's name to the attention of the target market again |
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Term
| 3 Types of advertising appeal |
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Definition
Fear: suggest to the consumer that he or she can avoid some negative experience through the purchase and use of a product or service, a change in behavior, or a reduction in the use of a product.
Sex: suggest to the audience that the product will increase the attractiveness of the user.
Humor: imply either directly or subtly that the product is more fun or exciting than the competitors' offerings |
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Term
| Reach, rating, and frequency |
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Definition
Reach: the number of different people or households exposed to an advertisement
Rating: the percentage of households in a market that are tuned into a particular TV show or radio station. Maximize reach in their target market at the lowest cost
Frequency: when advertisers want to reach the same audience more than once, they are concerned with frequency, the average number of times a person in the target audience is exposed to a message or advertisement |
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Term
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Definition
advantage: reaches extremely large audience; uses picture, print,sound and motion for effect; can target specific target audiences
Disadvantages: high cost to prepare and run adds; short exposure time and perishable message; difficult to convey complex information |
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Term
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Definition
Advantages: low cost; can target specific local audiences; ads can be placed quickly; can use sound, humor, and intimacy effectively.
Disadvantages: no visual element; short exposure time and perishable message; difficult to convey complex information |
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Term
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Definition
advantages: can target specific audiences; high quality color; long life of ad; ads can be clipped and saved; can convey complex information.
Disadvantages: long time needed to place ad; relatively high cost; competes for attention with other magazine features |
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Term
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Definition
Advantages: excellent coverage of local markets; ads can be place, saved and changed quickly; quick consumer response; low cost
Disadvantages: ads compete for attention with other newspaper features; short life span; poor color |
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Term
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Definition
advantages: excellent coverage of geographic segments; long use period; available 24 hours/365 days.
Disadvantages: proliferation of competitive directories in many markets; difficult to keep up to date |
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Term
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Definition
Advantages: video and audio capabilities; animation can capture attention; ads can be interactive and link to advertiser.
Disadvantages: animation and interactively require large files and more time to load; effectiveness is still uncertain |
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Term
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Definition
Advantages: low cost; local market focus; high visibility; opportunity for repeat exposure.
Disadvantages: message must be short and simple; low selectivity of audience; criticized as a traffic hazard |
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Term
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Definition
Advantages: high selectivity of audience; can contain complex information and personalized messages; high quality graphics.
Disadvantages: high cost per contact; poor image (junk mail) |
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Term
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Definition
| conducted before the advertisements are placed in any medium. This is to see whether the ad communicates the intended message or to select among alternative versions |
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Term
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Definition
| An advertisement may go through posttests after it has been shown to the target audience to determine whether it accomplished its intended purpose |
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Term
| Consumer oriented sales promotions |
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Definition
| directed to ultimate consumers. sales tools used to support a company's advertising and personal selling |
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Term
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Definition
| sales promotions that usually offer a discounted price to the consumer, which encourages trial |
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Term
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Definition
| short-term price reductions, commonly used to increase trial among potential customers or to retaliate against a competitor's actions |
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Term
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Definition
| a promotional tool often used with consumers is the premium, which consists of merchandise offered free or at a significant savings over its retail price |
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Term
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Definition
| another sales promotion tool that encourages consumers to apply their skill or analytical or creative thinking to try and win a prize |
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Term
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Definition
| require participants to submit some kind of entry but are purely games of chance requiring no analytical or creative effort by the consumer |
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Term
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Definition
| offering the product free or at a greatly reduced price. trial size |
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Term
| point-of-purchase displays |
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Definition
| takes the form of advertising signs, which sometimes actually hold or display the product and are often located in high-traffic areas near the cash register or end of the aisle |
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Term
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Definition
| offers the return of money based on proof of purchase |
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Term
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Definition
| involved in the use of a brand-name product in a movie, tv show, video game, or commercial for another product |
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Term
| What is personal selling? |
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Definition
| personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a persons or groups purchase decision. Sales management involves planning the selling program and implementing and evaluating the personal selling effort of the firm. |
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Term
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Definition
| setting objectives, organizing salesforce, recruiting, selecting, training and compensating salespeople, and evaluating the performance of individual salespeople. |
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Term
| Salespeople role in a company |
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Definition
| Salespeople need to match company interests with customer needs to satisfy both parties in the exchange process. They are the company in consumers eyes. Personal selling may play a dominant role in a firm's marketing program |
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Term
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Definition
| the practice of building ties to customers based on a salesperson's attention and commitment to customer needs over time |
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Term
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Definition
| buyers and sellers combine their expertise and resources to create customized solutions; commit to joint planning; and share customer, competitive, and company information for their mutual benefit and ultimately the benefit of the customer |
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Term
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Definition
| processes routine orders or reorders for products that were already sold by the company. Their primary responsibility is to preserve an ongoing relationship with existing customers and maintain sales |
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Term
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Definition
| Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers use of a product or service |
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Term
| Leads, prospects, qualified prospect |
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Definition
lead: a person who may be a possible customer
Prospect: customer who wants or needs the product
qualified customer: an individual who wants the product, can afford it, and is the decision maker |
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Term
| Personal selling: prospecting |
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Definition
| Search for and qualify prospects |
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Term
| Personal selling: preapproach |
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Definition
| gather information and decide how to approach the prospect |
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Term
| Personal selling: approach |
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Definition
| gain a prospects attention, stimulate interest and make transition to the presentation |
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Term
| Personal selling: presentation |
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Definition
| begin converting a prospect into a customer by creating a desire for the product or service |
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Term
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Definition
| obtain a purchase commitment from the prospect and create a customer |
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Term
| Personal selling: follow-up |
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Definition
| ensure that the customer is satisfied with the product or service |
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Term
| Stimulus-response presentation |
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Definition
| assumes that given the appropriate stimulus by a salesperson, the prospect will buy. Tries one appeal after another, hoping to hit the right button |
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Term
| Formula-selling presentation |
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Definition
| based on the view that a presentation consists of information that must be provided in an accurate, thorough, and step-by-step manner to inform the prospect |
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Term
| Needs satisfaction presentation |
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Definition
emphasizes probing and listening by the salesperson to identify the needs and interests of prospective buyers. Once these are identified, the salesperson tailors the presentation to the prospect and highlights product benefits that may be valued by the prospect
- adaptive selling: adjusting the presentation to fit the selling situation, such as knowing when to offer solution and when to ask for more information
consultative selling:focuses on problem identification, where the salesperson serves as an expert on problem recognition and resolution |
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Term
| Objection-handling techniques |
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Definition
Acknowledge and convert the objection
postpone
agree and neutralize
accept the objection
denial
ignore the objection |
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Term
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Definition
Trial close: involves asking the prospect to make a decision on some aspect of the purchase. "would you prefer the blue or grey model?"
assumptive close: entails asking the prospect to consider choices concerning delivery, warranty, or financing terms under the assumption that a sale has been finalized
urgency close: used to commit the prospect quickly by making reference to the timeliness of the purchase "the low interest financing ends next week." |
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Term
| Sales management's three interrelated functions |
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Definition
sales plan formulation: setting objectives, organizing the salesforce, development account management policies
sales plan implementation: salesforce recruitment and selection, salesforce training, salesforce motivation and compensation
salesforce evaluation: quantitative assessment, behavioral evaluations |
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Term
| Sales plan formulation: input/output objectives, major account management |
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Definition
selling objectives can be output related and focus on dollar or unit sales volume, number of new customers added, or profit. Input related emphasizes the number of sales calls and selling expenses. These types of objectives are used for the salesforce as a whole and for each person.
Key account management: practice of using team selling to focus on important customers so as to build mutually beneficial, long term, and cooperative relationships |
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Term
| sales force motivation and compensation: what produces motivated salespeople? |
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Definition
| clear job description, effective sales management practices, a personal need for achievement, and proper compensation, incentives or rewards |
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Term
| Three sales compensation plans |
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Definition
Straight salary: a salesperson is paid a fixed fee per week, month or year
straight commission compensation: salespersons earnings are directly tied to the sales or profit generated
Combination compensation: contains a specified salary plus a commission on sales or profit generated |
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Term
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Definition
| involved channel conflict that arises when a channel member bypasses another member and sells or buys products direct |
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Term
| 7 factors influencing distribution strategy |
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Definition
| level of service to be provided, direct or indirect, length of distribution channel, intensity of distribution, marketing functions, incentives for channel partners, power and conflict |
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Term
| communication (promotion) mix components |
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Definition
| inform prospective buyers about the benefits of the product, persuade them to try it, remind them later about the benefits they enjoyed by using the product |
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Term
| four communication styles |
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Definition
| supportive (quiet and reserved, listens attentively, avoid use of power, makes thoughtful decisions in deliberate manner), emotive (appears active, takes social initiative, encourages informality, expresses emotional opinion), analyzer/reflective (controls emotional expression, displays preference for order, express measured opinions, difficult to get to know), director (busy, may give impression of not listening, serious attitude, maintain control) |
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Term
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Definition
situation questions: "could you tell me about your company's goals in the next 18 months?" background and facts of the buyer
problem questions: "how much time of your day do you spend on that activity?"
Implication questions: "how many leads do you lose a month using your manual process?" effects or consequences
Need-payoff questions: "If we could minimize the amount of lost leads by 10% a quarter, how much increased revenue would that bring to your organization?" benefit or what could be |
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Term
| sales management model (major components that affect sales performance) |
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Definition
| salespersons view of job requirements, role perception, accuracy,ambiguity, conflict, aptitude, skill levels, motivation level |
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