Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
25 Cards in this Set
- Front
- Back
Define: value delivery network |
A network composed of the company suppliers, distributors and customers. Each partner with each other to improve the performance of the system. |
|
What direction of the stream marketing takes? What are the two elements which form this stream? |
Downstream. Wholesalers and retailers. |
|
Define: marketing (distribution) channel |
A set of interdependent organizations to make a product or service available for use. |
|
Why do producers use intermediaries? How can they help? |
It improves efficiency of the availability of goods to target markets. With their contacts, experience, specialization and scale of operations, their services can achieve more than the firm on its own. |
|
What is the role of marketing intermediaries in terms of product assortment? |
They decrease quantity and broaden product assortment, or what the consumer wants. Simply, they actively aid in matching supply with demand. |
|
What are the functions of marketing intermediaries? |
1. Information: gathering and distributing information in the environment to aid exchange. 2. Promotion: aids in informing new promotional offers of producers to consumers. 3. Contact: finding and engaging target market (prospective buyers). 4. Matching: shaping market offerings to match consumer needs. 5. Negotiation: reaching agreement on price and other terms for exchange. A. Physical distribution B. Financing C. Risk Taking: assuming risks of carrying out channel work |
|
Define: channel level |
A layer of intermediaries doing distinct work within a marketing channel. |
|
Define: direct marketing channel and indirect marketing channel |
A marketing channel with no intermediary levels. Intermediary: more than one. |
|
Define: marketing channel design |
Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying and evaluating channel alternatives |
|
What may comprise the service level of a channel? Why is it bad to achieve highly on these? |
1. Speed 2. Assortment breadth 3. Additional services (augmented product) Because of its impracticality and higher costs, which will pass on to consumers. |
|
How are objectives set for marketing channels? |
Which segments to serve, which distribution channels to utilize and how to minimize the total channel costs. |
|
What can influence the objectives for marketing channels? |
Type of product (e.g. perishable), competition (e.g. to facilitate comparison shopping and environmental forces (e.g. legal constraints) |
|
Define: intensive distribution. Which types of products commonly utilize this and why? |
Stocking products in multiple geographic areas. Convenience products to maximize brand exposure and consumer convenience.
|
|
Define: exclusive distribution. Which types of products commonly utilize this and why? |
Limiting the number of dealers to distribute the company's products. Specialty products to enhance luxury goods' distinct positioning. Furthermore, it improves dealer support and customer service. |
|
Define: selective distribution. Which types of products commonly utilize this and why? |
Using more than one, but not all intermediaries willing to supply the product. Shopping products to provide good market coverage, but with more control and less cost than intensive. |
|
What are the two trade offs for channel decisions? |
Control and cost |
|
In terms of control and cost, how are short and long channels different? |
Long channels will have less control, but less cost for the company and vice versa. |
|
Define: retailing |
Activities involved in selling goods or services to consumers for their personal, nonbusiness use. |
|
Define: first moment of truth |
The critical 3 to 7 seconds a shopper considers for a product on a shelf. |
|
What are the four different forms of retailers in Hong Kong? |
1. Department Stores 2. Superstores: large assortment of routinely purchased food & non food products 3. Convenience Stores 4. Multi-channel |
|
How are the different forms of retailers formed in Hong Kong? |
1. Amount of services provided 2. Price 3. Assortment |
|
How are retailer types categorized? What are its different types? |
Service and Price 1. Self-service: least sales assistance containing convenience products (fast moving consumer goods) 2. Limited-service: shopping goods, some sales assistance 3. Full-service: specialty products, most sales assistance |
|
What is the critical factor for retailing success? |
"Location, location, location" |
|
In what ways can retailers gain competitive advantage? |
1. Location (e.g. main street) 2. Price (e.g. high margin, low volume) 3. Assortment (width, length and depth) 4. Services (full, limited, self) 5. Atmosphere (visual, auditory, olfactory, space) |
|
What are the 4 trends in retailing? |
1. Retail convergence: merging of products, prices, customers and retailers, causing competition. "click and mortar," O2C (online and offline). 2. Personal touch from retailers 3. Megaretailers: size and buying power can offer better assortment, services and lower prices; shifting the power from producer to retailer. 4. Retail technologies: IT software systems for inventory control and better interaction for supplier and consumer. E.g. internet provides better convenience, more information and better brand connections. |