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Marketing > Cours 10 > Flashcards

Cours 10 Flashcards

1
Q

In what ways are intermediaries useful?

A

When you want to reduce the gaps between the needs of consumers and producers.

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2
Q

What are the principal functions of distribution intermediaries?

A
  • Logistics function
  • Financing function
  • Research function
  • Title transfer function
  • Promotion function
  • Sales function
  • Customer service function
  • Payment function
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3
Q

What is the logistic function?

A

They are the operations required to move products from the producer to the consumer.

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4
Q

What is an assortment gap?

A

It is the difference between a manufacturer’s product line and all the products a consumer wants.

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5
Q

What is the financing function?

A

It is the fact that intermediaries can facilitate transactions by offering financing options to customers and suppliers alike. (Ex: Canadian Tire credit card)

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6
Q

What is the research function?

A

It gathers information about consumers and the market, which they transmit to manufacturers and other intermediaries.

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7
Q

What is the title transfer function?

A

It is when a product changes its title.

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8
Q

What are the 2 strategies of the promotion function?

A
  • Push strategy: it is when an intermediary is encouraged to order a larger quantity of a product and give the brand a privileged position on store shelves.
  • Pull strategy: it is when businesses try to get around the distribution network and intermediaries by directly addressing the final customer through sales promotions or advertising.
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9
Q

What is the sales function?

A

This function implies searching for potential customers and meeting them to convince them to buy the product.

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10
Q

What is a distribution circuit or network?

A

It combines all the businesses that perform the various distribution functions and helps transfer a product, service, or title from a producer to a consumer.

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11
Q

What are traders?

A

They are intermediaries like retailers and wholesalers that buy merchandise that they offer to their own customers.

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12
Q

What is a retailer?

A

It is a merchant whose main activity is directly selling to final consumers.

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13
Q

What is a high-level service store?

A

It is a business model for high-level service stores that provide maximum quality customer service and a wide selection of products in each category.

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14
Q

What is a discount store?

A

The store operates with slimmer profit margins and a much quicker inventory turnover.

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15
Q

What is a wholesaler?

A

It is a merchant who buys large quantities of merchandise from producers and importers and resells it in varying quantities to retailers and industrial or institutional users.

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16
Q

What are agents?

A

They are intermediaries who do not buy the merchandise they sell to producers.

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17
Q

What is a distribution channel?

A

It is a network of interdependent organizations engaged in a process to make a product or service available for use or consumption.

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18
Q

What is a direct channel?

A

The absence of an intermediary between producers and consumers characterizes a direct channel.

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19
Q

What are the 3 different indirect channels?

A
  • Short channel
  • Long channel
    -Ultralong channel
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20
Q

What is a short channel?

A

It is frequently used for durable goods like furniture, household electrical appliances, and clothing. It gives more control and more effective cooperation with retailers during communication campaigns.

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21
Q

What is a long channel?

A

It is generally used for routine consumer goods like food, beverage, and beauty products. The advantages and disadvantages are the same as an ultralong channel but to a lesser degree.

22
Q

What is an ultralong channel?

A

It is the most common; the manufacturer goes through agents to get to wholesalers.

23
Q

What is the intensity of distribution?

A

It is the number of intermediaries used at each level of a channel.

24
Q

What is intensive distribution?

A

It is characterized by extensive coverage of all appropriate points of sale (retailers or wholesales) where the company wants to stock and sell a product.

25
Q

What is selective distribution?

A

It is characterized by the availability of products at points of sale where retailers are willing to give them special attention and meet specific criteria required by the manufacturer.

26
Q

What are the 3 types of distribution?

A
  • Intensive distribution
  • Selective distribution
  • Exclusive distribution
27
Q

What is exclusive distribution?

A

It exists when a product is available at only one point of sale in each geographic zone. It often corresponds to niche or high-end positioning.

28
Q

What are the 6 criteria to describe distribution intermediaries?

A
  • Cost and profitability of each distribution option.
  • Control of the network.
  • Image of the intermediaries.
  • Sharing of functions.
  • Compatibility with the existing network.
  • Flexibility of the network.
29
Q

What is the cost and profitability of each distribution option?

A

It means that for each distribution option, the sales volume, the margins that must be allowed for, and the cost of supporting the intermediaries in the channel must be estimated.

30
Q

What is the control of the network?

A

It is to enhance the coordination of intermediaries that will guarantee the smooth running of the network and solid relationships between the players.

31
Q

What is the image of the intermediaries?

A

It is the consumers’ perception of intermediaries’ competence.

32
Q

What is the sharing of functions?

A

It determines the respective responsibilities and commitments of the network members and is set out most often in policies on communication, pricing, sales conditions, territorial rights, etc.

33
Q

What is the compatibility with the existing network?

A

The new channel must not disrupt the existing network excessively; if it does, network intermediaries might boycott the new channel.

34
Q

What is the flexibility of the network?

A

It is the economic dependency established between a producer and its intermediaries that quickly becomes very difficult to change.

35
Q

What is multi-channel distribution?

A

It is a distribution mode combining several channels to reach different target markets.

36
Q

What recently disrupted the traditional distribution market?

A

The rapid advance in information technology and e-commerce.

37
Q

What is a channel conflict?

A

It is a situation in which members perceive that other members’ behavior is preventing them from achieving their own goals or is detrimental to them.

38
Q

What are the 3 main sources of conflict with the multi-channel distribution strategy?

A
  • Incompatibility of objectives: it is when objectives from a channel differ.
  • Poorly defined roles and rights: it is confusion in the definition of the sphere of activity and the functions of each distribution channel.
  • Differences in perception: it results from poor communication among the members of the distribution channels.
39
Q

What is an omnichannel strategy?

A

It is a complete and transparent integration of all channels and points of contact to offer an optimized and personalized experience.

40
Q

What is the price?

A

It is the amount spent plus the time and psychological cost incurred to obtain a product or service.

41
Q

What are the 3 main strategies when the competitive pressure is strong?

A
  • Price leadership strategy
  • Competitive parity strategy
  • Low-cost pricing strategy
42
Q

What is the price leadership strategy?

A

This strategy consists of adjusting a price and expecting the competitors to follow suit.

43
Q

What is a competitive parity strategy?

A

It consists of setting the same price as the market average or the leader.

44
Q

What is a low-cost pricing strategy?

A

It is a strategy that systematically offers the lowest price on the market.

45
Q

What is the prestige or quality signaling pricing strategy?

A

It consists of setting a price that will project the desired image of the product to consumers.

46
Q

What is a cost-plus pricing strategy?

A

It consists of setting a product price that lets the company achieve a predetermined profit margin.

47
Q

What are the strategies for a product line?

A
  • Complementary product pricing strategy.
  • Price bundling strategy
  • Customer value pricing strategy
48
Q

What is the complementary product pricing strategy?

A

It consists of selling the central product at a low price, while complementary goods are sold at a higher price.

49
Q

What is the price bundling strategy?

A

It consists of offering a product with a group of items sold at a lower price than the sum of all products at their regular cost.

50
Q

What is the customer value pricing strategy?

A

It consists of competitively pricing a product but offering fewer options than other products.

51
Q

What are the 2 strategies for a launch price?

A
  • Skimming strategy: it consists of setting a high initial price that is later lowered.
  • Penetration strategy: it consists of setting an initial low price

Marketing (9 decks)

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