Chapter 14: Managing Distribution and Pricing Flashcards Preview

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Flashcards in Chapter 14: Managing Distribution and Pricing Deck (63)
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1
Q

Companies partner with________ to help distribute products to the customer

A

marketing intermediaries like retailers and wholesalers

2
Q

4 common distribution channels

A
  1. Direct channel
  2. producer to retailer to customer channel
  3. producer to wholesaler to retailer to customer channel
  4. producer to agent to wholesaler to retailer to customer channel
3
Q

organization that helps move products from producers to customers

A

marketing intermediaries

4
Q

businesses that specialize in selling products to the end user

A

retailers

5
Q

companies that sell products to other businesses, like retail stores instead of selling to customers

A

wholesalers

6
Q

a distribution channel where the producer sells directly to customers with no marketing intermediaries in between

A

direct channel

7
Q

a distribution channel where the producer sells to a retail store, which then sells to customers. Is also the largest and most common type of marketing

A

producer to retailer to customer channel

8
Q

a D.C where goods are first sold to wholesalers and then to retailers

A

producer to wholesaler to retailer to customer channel

9
Q

a distribution channel similar to the producer to wholesaler to retailer channel but with the addition of sales agents who connect buyers to sellers

A

producer to agent to wholesaler to retailer to customer channel

10
Q

Benefits of marketing intermediaries

A
  1. they provide efficiency and assortment
  2. break bulk for producers
  3. provide valuable market information
  4. provide an instant sale infrastructure for the producer
11
Q

Most important benefit of marketing intermediary

A

provides an instant sale infrastructure for the producer

12
Q

____ are the link between producers and customers

A

retailers

13
Q

4 common features that differentiate various physical retailers

A
  1. number of product categories
  2. pricing
  3. distribution intensity
  4. size and selection
14
Q

the level of market coverage of a product, and is usually measured by the # of outlets where the product is sold

A

distribution intensity

15
Q

Convenience goods generally would use _____ distribution

A

intensive

16
Q

shopping goods would use ______ or _______ distribution

A

intensive or selective

17
Q

specialty and unsought products would use _____ distribution

A

exclusive

18
Q

retail stores that employ 25 or more staff

A

Department stores

19
Q

sell products at a lower price

A

discount stores

20
Q

sell a limited variety of products

A

convenience stores

21
Q

Large-self service store

A

supermarkets

22
Q

large retail stores that carry additional product lines

A

superstore

23
Q

Large-scale members-only establishments

A

warehouse clubs. ex: Costco

24
Q

Carry a narrow product mix with deep product lines

A

traditional specialty stores

25
Q

stores that buy manufacturers seconds and off-season merchandise. ex: Winners

A

Off-price retailer

26
Q

Very large specialty stores that concentrate on a single product line and compete by offering low prices

A

Category killers

27
Q

selling that does not take place in conventional store

A

non-store retailing

28
Q

____ use direct selling, direct marketing and vending machines

A

non-store retailing

29
Q

the marketing of products to customers through face-to -face sales

A

direct selling

30
Q

the use of the phone, internet to communicate product and organizational info to customers

A

direct marketing

31
Q

3 primary functions of physical distribution:

A

inventory management, warehousing and transportation

32
Q

the supply of goods that a company holds for use in production or for sale of customers

A

inventory

33
Q

deciding how much of each type of inventory to keep on hand

A

inventory management

34
Q

receiving and storing goods, then preparing them for transportation

A

warehousing

35
Q

transportation (function of physical distribution)

A

the shipment of products

36
Q

the mix of marketing intermediaries a producer uses to move products to customers

A

channel of distribution

37
Q

the actual type of transportation for moving physical goods from one point to another

A

mode of distribution

38
Q

Factors that affect product price

A

economic conditions, the industry, and stage of a products life cycle

39
Q

if a customer is in a competitive industry it sets prices

A

comparable to similar products

40
Q

3 keys to consider when determining pricing

A

your cost, max price customers are willing to pay, what competitors charge

41
Q

minimum number of units the company must sell to cover costs

A

break-even-point

42
Q

operating costs of a company

A

fixed cost

43
Q

cost of producing or purchasing product

A

variable cost

44
Q

the profit you make per unit of sale because it is the amount of money that each sale contributes to paying fixed costs

A

contribution margin

45
Q

action designed to achieve pricing objectives

A

pricing strategy

46
Q

new-product pricing

A

price skimming and penetration pricing

47
Q

strategy of charging the highest possible price for a product during the introduction stage of life cycle

A

price skimming

48
Q

strategy of selling new products at low prices

A

price penetration

49
Q

purchases based on the emotional response rather than economically

A

psychological pricing

50
Q

strategy of setting prices using odd numbers that are slightly below whole dollar amounts

A

odd-number pricing

51
Q

setting a single price for 2 or more units. ex: 2 cans for 99c rather than 50c per can

A

multiple-unit pricing

52
Q

pricing a product at a moderate level and positioning it next to a more expensive model

A

reference pricing

53
Q

packaging 2 or more products to be sold for single price

A

bundle pricing

54
Q

marketer sets a low price for its products on a consistent basis

A

everyday low prices

55
Q

sets the price of certain goods on the basis of tradition. ex: chewing gum and chocolate bars

A

customary pricing

56
Q

can provide marketers with flexibility in price setting

A

product-line-pricing

57
Q

when the basic product in a product line is priced low, while the price on the items required to operate it are set at a higher price

A

captive pricing

58
Q

occurs when the highest-quality product in a product line is given the highest price

A

premium pricing

59
Q

strategy of selling goods only at certain predetermined prices. ex: lulu sports bras are either 34$ or 54$

A

price lining

60
Q

_____ includes: price leaders, special event pricing, and comparison discounting

A

promotional pricing

61
Q

involves advertising sales or price cutting linked to holiday or event

A

special-event pricing

62
Q

are priced below usual markup or below cost

A

price leaders

63
Q

sets price of a product at specific level and compares it with a higher price

A

comparison discounting