Chapter 14 - Fernando Renjel Flashcards
what is a place factor?
The place where consumer will be able to buy product
what is a channel of distribution?
How products get from the producer to the final consumer.
advantages and disadvantages of Producer > consumer
Advantages:
- all of profit is owned by the producer
- product controls marketing mix
- quickest method
- producer has direct contact with consumer
Disadvantages:
- consumers not always able to try product
- delivery costs are high
- storage must be paid
- promotional activities must be carried out
advantages and disadvantages of Producer > retailer > consumer
Advantages:
- consumers can see and try product
- cost of holding inventories are paid
- retailer pays for advertising and promotional activities
- retailer located conveniently for consumers
Disadvantages:
- retailer take some of the profit
- producers lose some control in marketing mix
- producers must pay for delivery costs
- retailers usually sell to competitors
advantage and disadvantages of Producer > wholesaler > retailer > consumer
Advantages:
- wholesaler buys in bulk from producer
- wholesaler will advertise and promote product to retailers
- transport cost to the retailer is paid for by the wholesaler
- wholesaler will pay for storage costs
- distribution of goods through wholesalers help
Disadvantages:
- another middleman
- producer loses even more control over marketing mix
advantages and disadvantages of Manager > agent > wholesaler > retailer > consumer
Advantages:
- agents have specialist knowledge of the market
Disadvantages:
- another middleman is added to the channel of distribution
What is a wholesaler?
A business that buys products in bulk from producers to then sell to retailers.
.what is a retailer?
Shops and other outlets that sell goods and services to the final consumer.
what is a middlemen?
Shops and other outlets that sell goods and services to the final consumer.
what is direct selling?
Product sold by producer to producer directly to find the consumer without need of any middleman.
.Three factors to be considered when determining which channel of distribution to use:
- cost
- nature of product
- market
answer: - cost - nature of product
- market
what is a promotion?
Marketing activities used to communicate with customers and potential consumers to inform and persuade them to buy products.
what is the main objective of a promotion?
increase sales
what are the aims of promotion?
- attracting attention of customers
- persuading customers to buy product
- explain their product is better than competitors
name methods of promotion
- advertising
- sales promotion
- personal selling
- sponsorship
what is advertising?
Paid form of communication with consumers which uses printed/ visual media. Aim ) inform/ persuade customers to buy product
what is informative advertising?
Information about the product is communicated to the consumer to create product awareness and attract their interest.
what is persuasive advertising?
Communication with consumers aimed at getting them to buy a firms product rather than a competitor’s product.
what is a sales promotion?
Incentives used to encourage short term increases in sales or repeat purchases.
name types of sale promotion
- loyalty rewards schemes
- competitions and games
- money off coupons or vouchers
what is personal selling?
Sales staff communicate directly with the consumer to achieve a sale and form a long-term relationship between the firm and the consumer.
what is direct mail?
printed materials which are sent directly to the address of customers.
what is a sponsorship?
Payment by business to have its name or product associated with a particular event.
what is marketing budget?
The amount of money made available by a business for it’s marketing activities during a particular period of time
