Chapter 14 Flashcards
form utility
elements of the composition and appearance of a product that make it desirable
time utility
increase in customer satisfaction gained by making a good or service available at the appropriate time
place utility
usefulness of a good or service as a function of the location at which it is made available
exchange
utility the increased value of a product that is created as its ownership is transferred
retailer
a channel intermediary that sells mainly to consumers
merchant
wholesaler an institution that buys goods from manufacturers and resells them to businesses government agencies and other wholesalers or retailers and that receives and takes title to goods stores them in its own warehouses and later ships them
agents
broers wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers wholesalers or manufacturers
direct channel
a distribution channel in which producers sell directly to consumers
dual distribution
(multiple distribution) the use of two or more channels to distribute the same product to target markets
nontraditional
channels non- physical (often electronic) channels that facilitate the unique market access of products and services
strategic channel
alliance a cooperative agreement between business firms to use the other’s already established distribution channel
exclusive distribution
a form of distribution that establishes one or a few dealers within a given area
selective distribution
a form of distribution achieved by screening dealers to eliminate all but a few in any single area
intensive distribution
a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
arm’s- length
relationship a relationship between companies that is loose characterized by low relational investment and trust and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
cooperative
relationship a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
integrated
relationship a relationship between companies that is tightly connected with linked processes across and between firm boundaries and high levels of trust and interfirm commitment
channel power
the capacity of a particular marketing channel member to control or influence the behavior of other channel members
channel control
a situation that occurs when one marketing channel member intentionally affects another member’s behavior
channel captain
a member of a marketing channel that exercises authority and power over the activities of other channel members
channel conflict
a clash of goals and methods between distribution channel members
horizontal conflict
a channel conflict that occurs among channel members on the same level
vertical conflict
a channel conflict that occurs between different levels in a marketing channel most typically between the manufacturer and wholesaler or between the manufacturer and retailer
channel
partnering the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
retailing
all the activities directly related to the sale of goods and services to the ultimate consumer for personal nonbusiness use
gross margin
amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted
franchise a relationship
in which the business rights to operate and sell a product are granted by the franchisor to the franchisee.
chain store
a store that is part of a group of the same stores owned and operated by a single organization
independent
retailer a retailer owned by a single person or partnership and not operated as part of a larger retail institution
scrambled
merchandising the tendency to offer a wide variety of nontraditional goods and services under one roof
direct mareting
(direct response mareting) techniques used to get consumers to make a purchase from their home office or other nonretail setting
direct retailing
the selling of products by representatives who work door- to- door office- to- office orat home sales parties
automatic vending
the use of machines to offer goods for sale
nonstore
retailing shopping without visiting a store
factory outlet an off-
price retailer that is owned and operated by a manufacturer
franchisee
individual or business that is granted the right to sell another party’s product
franchisor
originator of a trade name product methods of operation and the like that grants operating rights to another party to sell its product
online retailing
(e- tailing) a type of shopping available to consumers with personal computers and access to the Internet
shop-at-home
television networ a specialized form of direct-response marketing where shows display merchandise for viewers to purchase over the telephone with a credit card
telemareting
use of the telephone to sell directly to consumers
retailing mix
a combination of the six Ps— product place promotion price presentation and personnel— to sell goods and services to the ultimate consumer
destination store
a store that consumers purposely plan to visit
atmosphere
the overall impression conveyed by a store’s physical layout décor and surroundings
layout the internal design
and configuration of a store’s fixtures and products
data mining
the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior
m- commerce
ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services
communication
the process by which we exchange or share meaning through a common set of symbols
competitive
advantage one or more unique aspects of an organization that cause target consumers to patronize that firm rather than competitors
promotional strategy
a plan for the optimal use of the elements of promotion: advertising public relations personal selling sales promotion and social media
promotion communication
by marketers that informs persuades and reminds potential buyers of a product in order to influence an opinion or elicit a response
