test 4 Flashcards

Question

Dynamic Pricing

Answer 1

Adjusting prices continually to meet the characteristics and needs of individual customers and situations

Answer 2

Reasons for price cuts: -Excess capacity -Falling demand -Attempt to dominate the market Avoid perception of price gouging! Mylan Pharmaceuticals - EpiPen

Answer 3

Price fixing - Collusion among sellers Predatory pricing -Sell below cost with intent of reducing competition Deceptive pricing -Misleads customers *Inflated regular prices *Scanner fraud

Answer 4

Upstream partners supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. Downstream partners serve as distribution channels that link the firm and its customers raw materials--> components--> manufacture--> distributor and partners-->customers

Answer 5

A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

Answer 6

Interdependent organizations that help make a product or service available for use or consumption

Answer 7

Affect every other marketing decision Can lead to competitive advantage - Enterprise, Apple, Uber May involve long-term commitments to other firms - Can be difficult to change quickly

Answer 8

the distributor reduces the number of transactions

Answer 9

Intermediaries create greater efficiency in making goods available to target markets. Marketing intermediaries transform the assortments of products made by producers into the assortments wanted by consumers. Intermediaries bridge the major time, place, and possession gaps that separate goods and services from users. Time, form, place, and possession utility

Answer 10

Help to complete transactions - Information – gather information to aid exchange - Promotion - Contact – find customers - Matching – grading, assembling, packaging - Negotiation Help to fulfill the completed transactions - Physical distribution – transportation and storing - Financing - Risk taking

Answer 11

A layer of intermediaries that performs work in bringing the product and its ownership closer to the final buyer

Answer 12

More levels = more complexity, less control for the producer

Answer 13

Channel members: Depend on each other to meet customer needs And their own success -Channel conflict: Disagreements among marketing channel members on goals, roles, and rewards - Horizontal conflict occurs among firms at the same level of the channel. - Vertical conflict occurs between different levels of the same channel

Answer 14

A vertical marketing system (VMS) consists of producers, wholesalers, and retailers acting as a unified system. There are three types of VMSs: - Corporate - Contractual - Administered

Answer 15

Corporate - Integrates production and distribution - Example: Sherwin-Williams, LLBean, Administered - Size and power “motivates” cooperation - Retailer or supplier Contractual - Franchises

Answer 16

Papa Johns Pizza Hut McDonalds Wendy’s Subway Dunkin Donuts

Answer 17

Two or more companies at one level join together to follow a new marketing opportunity.

Answer 18

A single firm sets up two or more marketing channels to reach customer segments

Answer 19

Expansion of sales and marketing coverage Tailor-made products and services for the specific needs of customer segments

Answer 20

Harder to control Generates conflict

Answer 21

Occurs when product or service producers: - Cut out marketing channel intermediaries * Sell directly to buyers - Introduce radically new types of channel intermediaries that displace traditional ones - Online retailers - iTunes - Spotify

Answer 22

involves designing effective marketing channels by: - Analyzing customer needs - Setting channel objectives * Customer service level required by target market(s) - Identifying major channel alternatives (next slide) - Evaluating the alternatives

Answer 23

Types of intermediaries refers to channel members available to carry out channel work. Number of intermediaries to use Intensive distribution Exclusive distribution Selective distribution Responsibilities of each channel member Territory Service delivery Promotional support

Answer 24

Selecting channel members Managing and motivating channel members - Sell through, to, and with them Evaluating channel members - Sales - Inventory levels - Delivery performance

Answer 25

suppliers--> company-->Resellers-->customers

Answer 26

Activities involved in selling goods or services directly to consumers for their personal use

Answer 27

Focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale Considers the entire buying journey – on-line and/or bricks & mortar points of contact

Answer 28

Creating a seam-less cross-channel buying experience that integrates in-store, online, and mobile shopping Omni-channel consumers research products and prices online, shopping digitally from home, from work, in stores, or anywhere in between. The boundaries between in-store and online retailing are rapidly blurring.

Answer 29

-Amount of service offered -Breadth and depth of the product lines -Relative prices charged -Way they are organized

Answer 30

Serve customers who are willing to perform their own locate-compare-select process

Answer 31

Carry more shopping goods about which customers need information Provide more sales assistance

Answer 32

Carry more specialty goods Assist customers in every phase of the shopping process

Answer 33

A store that carries a narrow product line with a deep assortment, such as apparel stores, sporting-goods stores, furniture stores, florists, and bookstores. example: REI, Sunglass Hut, Sephora, Williams-Sonoma

Answer 34

A store that carries several product lines—typically clothing, home furnishings, and household goods—with each line operated as a separate department managed by specialist buyers or merchandisers example: Macy’s, Sears, Neiman Marcus

Answer 35

A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer’s total needs for grocery and household products. example: Kroger, Publix, Safeway, SuperValu.

Answer 36

A relatively small store located near residential areas, open 24/7, and carrying a limited line of high-turnover convenience products at slightly higher prices. example: 7-Eleven, Circle K, Speedway, Sheetz

Answer 37

A very large store that meets consumers’ total needs for routinely purchased food and nonfood items. This includes supercenters, combined supermarket and discount stores, and category killers, which carry a deep assortment in a particular category. example: Walmart Supercenter, SuperTarget, Meijer (discount stores); Best Buy, Petco, Staples, Bed Bath & Beyond (category killers)

Answer 38

A store that carries standard merchandise sold at lower prices with lower margins and higher volumes. Example: Walmart, Target, Kohl’s

Answer 39

A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail. These include factory outlets owned and operated by manufacturers; independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations; and warehouse (or wholesale) clubs selling a limited selection of goods at deep discounts to consumers who pay membership fees. Example: Mikasa (factory outlet); TJ Maxx (independent off-price retailer); Costco, Sam’s Club, BJ’s (warehouse clubs).

Answer 40

Two or more outlets that are commonly owned and controlled. Corporate chains appear in all types of retailing but they are strongest in department stores, discount stores, food stores, drugstores, and restaurants. Example: Macy’s (department stores), Target (discount stores), Kroger (grocery stores), CVS (drugstores)

Answer 41

Wholesaler-sponsored group of independent retailers engaged in group buying and merchandising. Example: Independent Grocers Alliance (IGA), Western Auto (auto supply), True Value (hardware)

Answer 42

Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts. Example: Associated Grocers (groceries), Ace Hardware (hardware)

Answer 43

Contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (independent businesspeople who buy the right to own and operate one or more units in the franchise system). Example: McDonald’s, Subway, Pizza Hut, Jiffy Lube, Meineke Mufflers, 7-Eleven

Answer 44

-Retailers must determine three product variables. - Product assortment - Services mix - Store atmosphere - Experiential retailing

Answer 45

Retailers use various combinations of the five promotion tools: -Advertising -Personal selling -Sales promotion -Public relations (PR) -Direct and social media marketing How is retailer promotion funded?

Answer 46

Locations should be accessible to the target market in areas that are consistent with the retailer’s positioning.

Answer 47

Group of retail businesses built on a site that is planned, developed, owned, and managed as a unit

Answer 48

Growth of direct, online, mobile, and social media retailing -Omni-Channel retailing -Showrooming -Webrooming

Answer 49

A firm engaged primarily in wholesaling activities Involves all the activities in selling goods and services to those buying for resale or business use

Answer 50

Wholesale merchants: - Sell primarily to retailers - Provide a full range of services Types - General merchandise wholesalers - General line wholesalers - Specialty wholesalers Industrial distributors: - Sell to manufacturers - Carry stock - Offer credit - Provide delivery - May carry a broad range of merchandise, a general line, or a specialty line

test 4 Flashcards

(75 cards)