Notes 3

Question 1

Distribution channels

Answer 1

The path a product follows from manufacturers to consumers

Question 2

Direct channel

Answer 2

From manufacturer to consumer
Online or apple store

Cheaper

Question 3

Indirect channel

Answer 3

Manufacturers. Marketing intermediaries. Consumer

More convenient
Allows focus

Question 4

Dual

Answer 4

When u do both direct and indirect

Question 5

Channel conflict

Answer 5

When u sell direct and indirect and compete with yourself

Ways to stop: keep price the same and give channel partners exclusive products

Question 6

Channel length

Answer 6

How long the chain of intermediaries is

How many times a product changes hands

Question 7

Anticipatory inventory

Answer 7

Guess how much u sell

Question 8

Response inventory

Answer 8

Every time something is bought another is ordered

Question 9

Merchant

Answer 9

60%. Take products then sell them assume a lot of risk

Question 10

Matchmakers

Answer 10

40%. Finds customer for the company then buys product and delivers

Question 11

2 types of matchmakers

Answer 11

Agent: pair with specific company
To sell their goods

Broker: sells specific product to people helps people choose from a lot of different brands

Question 12

Verticals integration

Answer 12

When one channel starts to overtake other parts of the chain

Question 13

Backward VI

Answer 13

When distributor becomes manufacturers

Question 14

Frontward VI

Answer 14

When a distributor overtakes a retailer

Question 15

Intensive

Answer 15

Can be found anywhere

Like gum

Question 16

Exclusive

Answer 16

Have to travel not common

Rolls Royce dealer

Question 17

Selective

Answer 17

In between

Olive Garden

Question 18

Direct response

Answer 18

Commercial adds

Say call right now limited time offer infomercial

Question 19

Brand advertising

Answer 19

A man shoots basketball then says Nike just do it. No direct call to buy

Question 20

E commerce

Answer 20

Digital version of direct marketing

Question 21

Timeline of marketing media

Answer 21

Book 
Periodical 
Radio 
Tv 
Internet 
Smart phone

Question 22

Service marketing

Answer 22

More important to brand a service than a product because services are intangible
90% of jobs are services in developed countries
Include hidden sector
Furniture also install replace repair

Question 23

Types of services

Answer 23

Rental (cars hotel ski’s)
Repair (insurance plumbing lawn)
Personal services (schools, speech coach, physical trainer)

Question 24

GDP

Answer 24

The value of all the work done in a country

Question 25

Cues

Answer 25

Stan vs. Bob | Sheetz cleans trucks

Question 26

Business to business

Answer 26

``` When business’s buy from business’s Biggest buyers Microsoft Staples fedex General Electric Visa Insurance 50% b to b sales done online ```

Question 27

Main focus of b to b marketing

Answer 27

Consumers focus on products business focus on vendors | Most important is delivery

Question 28

B to b promotion

Answer 28

Search engine | Personal selling advertising in trade journals

Question 29

Derived demand

Answer 29

Industrial demand derived from consumer demand

Question 30

Accelerator principle

Answer 30

When consumers don’t want a product it takes out a lot of people

Question 31

International marketing

Answer 31

Pros: higher profit, reputation, Econ, product life cycle curve, market opportunities and saturation Cons: laws, changing product, different culture, languages confusion, currency diff, diff needs, government stability, tariffs violence

Question 32

Ethnocentric

Answer 32

Stay in ur country not international

Question 33

International

Answer 33

One or two other countries

Question 34

Multinational

Answer 34

Geo centric company that targets the whole world May require product adaptation or promotional adaptation. Or dual adaptation Transplant means you change nothing

Question 35

Exchange rate

Answer 35

Import: like when dollar is weak Export: likes when dollar weak

Question 36

BRICA

Answer 36

Brazil Russian India China Africa

Question 37

B-O-P

Answer 37

Bottom of pyramid | Cadbury small chocolate pieces in India

Question 38

OUDA loop

Answer 38

Observation. Understand. Decision. Action

Question 39

1. Law of leadership

Answer 39

It is better to be first than to be better

Question 40

2. Law of category

Answer 40

If you can’t be first find a way to be first

Question 41

3. Law of the mind

Answer 41

It’s better to be first into the mind the first in the market place Ex iPod vs nomad

Question 42

Law of perception

Answer 42

Marketing is a battle of perception not products

Question 43

5 law of focus

Answer 43

Better to do one thing excellently then 1000 marginally | Later vs sun

Question 44

6 law of division

Answer 44

Over time product categories divide. 800 different types of milk They call for special brands

Question 45

7 law of extinction

Answer 45

When u are tempted to extend the line don’t | Brand extension confuses line canabalism

Question 46

8 Law of inoculation

Answer 46

Realtor tells Powell’s about leaky roof b4 they go and see it tells them they will fix it so they don’t freak out. Do the same w/ product! Loreal says they r expensive

Question 47

9 law of success:

Answer 47

success leads to arrogance to failure. First fat foolish failure

Question 48

10 the law of illusion

Answer 48

Marketing is not common sense, often counter intuitive. 90% of new products fail