BUSML 3250 Exam 3 2025

BUSML 3250 Exam 3 2025 Marketing Channel - -consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users Agent or Broker - -any intermediary with legal authority to act on behalf of the manufacturer Wholesaler - -an intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets Transactional Functions - -Buying: Purchasing products for resale or as an agent for supply of a product Selling: Contacting potential customers, promoting products, and seeking orders Risk Taking: Assuming business risks in the ownership of inventory that can become obsolete or deteriorate Logistical Functions - -Assorting: creating product assortments from several sources to serve customers Storing: assembling and protecting products at a convenient location to offer better customer service Sorting: purchasing in large quantities and breaking into smaller amounts desired by customers Transporting: physically moving a product to customers Facilitating Functions - -Financing: extending credit to customers Grading: inspecting, testing, or judging products, and assigning them quality grades Marketing information and research: providing information to customers and suppliers, including competitive conditions and trends Direct Channel - -a distribution channel in which producers sell directly to consumers Indirect Channel - -intermediaries are inserted between the producer and consumers and perform numerous channel functions Direct to Consumer Marketing Channels - -allow consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson Multichannel / Omni channel Marketing - -the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online BUSML 3250 BUSML 3250 Vertical Marketing Systems - -professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact Corporate vertical marketing system - -the combination of successive stages of production and distribution under a single ownership Intensive Distribution - -a level of distribution density whereby a firm tries to place its products and services in as many outlets as possible Exclusive Distribution - -a level of distribution density whereby only one retailer in a specific geographical area carries the firm's products Selective Distribution - -a level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products Buyer Requirements (four categories) - -Information, convenience, variety, and pre- or postsale services Channel conflict - -arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals Vertical Marketing System - -professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact Vertical Conflict - -occurs between different levels in a marketing channel Disintermediation - -a source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct Horizontal Conflict - -occurs between intermediaries at the same level in a marketing channel Channel Captain - -a channel member that coordinates, directs, and supports other channel members Logistics - -those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost Supply Chain - -the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users Supply Chain Management - -is the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers BUSML 3250 BUSML 3250 Consumer Utilities - -time, place, form, possession Form of Ownership - -distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet Level of Service - -Describes the degree of service provided to the customer from 3 types of retailers: self-, limited-, and full-service. Merchandise Line - -describes how many different types of products a store carries and in what assortment Independent Retailer - -independent business owned by an individual Corporate Chain - -multiple outlets under common ownership Franchising - -an individual or firm contracts with a parent company to set up a business or retail outlet Self Service - -requires that customers perform many functions during the purchase process Limited Service - -provide some services, such as credit and merchandise return, but not others, such as clothing alterations Full Service - -include most specialty stores and department stores, provide many services to their customers Depth of Product Line - -the store carries a large assortment of each product item Supercenter - -a large store that combines a typically merchandise store with a full sized grocery store Automatic Vending - -selling and delivering products through vending machines Direct Mail and Catalogs - -store that comes to your door. 1) eliminates cost of store and clerks. 2) increases marketing efficiency via segmentation and value creation. 3) new service encourages store and website visits. they are weakening and are better served by offering specialty books to niche markets. Television Home Shopping - -a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card BUSML 3250 BUSML 3250 Online Retailing - -allows consumers to search for, evaluate, and order products through the internet Telemarketing - -using the telephone to interact with and sell directly to consumers Direct Selling - -involves direct sales of products and services to consumers through personal interactions and demonstrations in their home or office Retail Positioning Matrix - -A matrix that positions retail outlets on two dimensions: breadth of product line and value added, such as location, product reliability, or prestige. Retailing Mix - -the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise Markup - -how much should be added to the cost the retailer paid for a product to reach the final selling price Markdown - -occurs when the product does not sell at the original price and an adjustment is necessary Everyday Low Pricing (EDLP) - -emphasize consistently low prices and eliminate most markdowns Off-Price Retailing - -selling brand-name merchandise at lower than regular prices Retail Image - -the way in which the store is defined in the shopper's mind, partly by its functional qualities and partly by an aura of psychological attributes Shopper Marketing - -the use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store Category Management - -an approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category Retail Life Cycle - -the process of growth and decline that retail outlets, like products, experience, consisting of the early growth, accelerated development, maturity, and decline stages Marketplace - -buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects Digital Marketspace - -a digitally enabled environment characterized by face-to-screen exchange relationships and electronic images and offerings BUSML 3250 BUSML 3250 Interactive Marketing - -two-way buyer-seller electronic communication in which the buyer controls the kind and amount of information received from the seller Choiceboards - -An interactive, digitally enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options. Personalization - -the consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences Permission Marketing - -The solicitation of a consumer's consent (called "opt-in") to receive e-mail and advertising based on personal data supplied by the consumer. Customer Experience - -the sum total of the interactions that a customer has with a company's website, from the initial look at a home page through the entire purchase decision process Eight-Second Rule - -a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds Customerization - -the growing practice of not only customizing a product or service but also personalizing the marketing and overall