| A | B |
|---|
| distribution function | involves determining the best methods and procedures to use so that prospective customers can locate, obtain, and use a business's products and services |
| direct channel | the producer sells the product to the final consumer |
| indirect channel | other businesses between the producer and the consumer perform one or more marketing functions |
| channel captain | a company that takes responsibility to identify channel members, assign distribution activities, help members agree on performance standards, and facilitate communication among channel members |
| wholesalers | companies that assist with distribution activities among businesses |
| wholesale member clubs | businesses that offer a variety of consumer products to members through a warehouse outlet |
| retailer | the final business organization in an indirect channel of distribution for consumer products |
| inventory shrinkage | a loss of products due to theft, fraud, negligence, or error |
| specialty or limited-line retailers | businesses that offer products from one category of merchandise or closely related items |
| mixed merchandise retailers | businesses that offer products from several categories |
| service retailers | businesses that have services as their primary offering with a limited number of products for sale that complement the services |
| non-store retailing | selling directly to the consumer at home rather than requiring the consumer to travel to a store |
| franchising | a business relationship in which the developer of a business idea sells others the rights to the business idea and the use of the business name |
| atmospherics | elements of the shopping environment that appeal to customers, attract them to a store, and encourage them to buy |
| physical distribution | the process of efficiently and effectively moving products and materials through the distribution channels |
| warehouse | a building designed to store large amounts of raw materials or products until they can be used or sold |
| distribution center | a facility used to accumulate products from several sources and then regroup, repackage, and send them quickly to the locations where they will be used |
| logistics | the process of efficiently and effectively moving products and materials through the distribution channels |
| elasticity of demand | describes the relationship between changes in a product's price and the demand for that product |
| inelastic demand | a price decrease will decrease total revenue |
| elastic demand | a price decrease will increase total revenue |
| break even point | the quantity of a product that must be sold for total revenues to match total costs at a specific price |
| selling price | the price charged for a product or service |
| product cost | includes the cost of parts and raw materials, labor, transportation, insurance, and an amount for damaged, lost, or stolen products |
| gross margin | the amount that is available to cover the business's expenses and provide a profit on the sale of the product |
| operating expenses | all costs associated with business operations |
| net profit | the difference between the selling price and all costs and operating expenses associated with the product |
| markup | an amount added to the cost of a product to determine the selling price |
| markdown | a reduction from the original selling price |
| skimming price | a very high price designed to emphasize the quality or uniqueness of the product |
| penetration price | a very low price designed to increase the quantity sold of a product by emphasizing value |
| nonprice competition | de-emphasizes price by developing a unique offering that meets an important customer need |
| one-price policy | means that all customers pay the same price |
| flexible pricing policy | allows customers to negotiate the price within a price range |
| price lines | distinct categories of prices based on differences in product quality and features |
| FOB pricing | identifies the location from which the buyer pays the transportation costs and takes title to the products purchased |
| zone pricing | different products prices or transportation costs are set for specific areas of the seller's market |
| discounts and allowances | reductions in a price given to the customer in exchange for performing certain marketing activities or accepting something other than what would normally be expected |
| consumer credit | credit a retail business extends to the final consumer |
| trade credit | offered by one business to another business, often because of the time lag between when a sale is negotiated and when the products are actually delivered to the customer and used or resold |
| price | actual cost and the methods of increasing the value of the product to the customers |
| pricing | establishing and communicating the value of products and services to customers |
| promotion | any form of communication that a company uses to inform, persuade, or remind consumers about its products or sercvices |
| communication process | the transfer of a message from a sender to a reciever |
| sender | the source of the message being sent (the who in the communication process) |
| message | what is being communicated in the promotion process |
| encoding | when the sender converts data into a message that the receiver can understand |
| media | the method by which the message travels |
| vehicle | the specific broadcast or print choices associated with a message channel |
| receiver | the person or persons to whom the message is directed or any person who understands the message that is sent |
| decoding | the process by which the receiver interprets the transmitted language and symbols to comprehend the message |
| noise | any distracting information in the transmission, the message channel, or the receiver's environment that may inhibit or distract from the message |
| feedback | the receiver's response to the message |
| interpersonal communication | any person-to-person exchange |
| mass communication | attempts to reach a wide audience, sometimes millions of people, through mass media such as radio, television, magazines, newspapers, and the internet |
| advertising | any form of paid, non-personal communication that uses mass media to deliver a marketer's message message to an audience |
| broadcast media | a signal is sent from a central transmitter to receivers in a geographic area |
| print advertising | any paid message in a magazine or newspaper |
| direct mail | any marketing message sent to an audience through the mail |
| outdoor advertising | includes billboards, signs on buses or taxis, messages on sides of buildings, posters, ads on bus shelters or benches |
| ambient advertising | type of advertising includes any nontraditional medium in the environment of the audience (stickers on bananas, messages chalked onto sidewalks) |
| internet advertising | the fastest growing and most dynamic type of advertising, can be targeted based on area and location |
| publicity | any nonpaid mention of a product, service, company, or cause |
| public relations | the effort to reach consumers by generating positive publicity |
| personal selling | person-to-person communication with a potential customer in an effort to inform, persuade, or remind the customer to purchase an organization's products or services |
| sales promotion | any activity or material that gives consumers a direct incentive to buy |
| promotional mix | the combination of advertising, public relations, personal selling, and sales promotion that marketers use to reach a target market |
| promotional plan | the blue-print for how the elements of the promotional mix will work together |
| product advertising | relays the benefits of a specific product or service and uses rational arguments to explain why a customer should buy it. |
| brand advertising | advertising that aims to build an image |
| selling | direct, personal communication with prospective customers in order to assess needs and satisfy those needs with appropriate products and services |
| corporate advertising | brand advertising for a company |
| advertising agency | a company that specializes in creating advertising |
| advertising plan | a document that outlines the activities to be completed and resources needed to create advertising |
| advertising campaign | a series of related advertisements with a similar look, feel, and theme that centers on a specific product, service, or brand |
| cold calling | a salesperson contacts a large number of people who are conveniently located without knowing a great deal about each one |
| media plan | a detailed listing of where and when ads will run |
| media planner | the person who develops the media plan |
