Marketing Through Distribution
The most complex and challenging part of marketing.
What is Distribution?
Percent of total marketing costs secured for distribution activities for most products.
What is 50%?
Amount of satisfaction a consumer receives.
What is Economic Utility?
This software analyzes target market and individual customer sales records, product requests, returns, and new market opportunities.
What is CRM or Customer Relationship Management?
Measure of the rate at which distributors sell or "deplete" their product inventories.
What is Depletion?
System described in the marketing strategy of the marketing plan.
What is Distribution System?
Channel in which the producer sells directly to the final consumer.
What is Direct Channel?
A wholesaler can provide storage and inventory management for manufacturers, allowing them to focus on what.
What is Production?
Big difference between retailers and wholesalers.
What is Buy in Bulk?
1) Businesses' own sales, including orders from their distributors.
2) Sales or deliveries that distributors make to retailers. (Depletion)
What are two measures of product movement?
Two main types of distribution channels.
What is Indirect and Direct?
Most common direct distribution channel.
What is Retailer?
Three categories of wholesalers.
What are Full Service, Limited Service, and Agents and Brokers?
Type of retailing when a customer learns of the product through a company's electronic presence and then purchases the product at its physical location.
What is Online-to-Offline (O2O) Retailing?
Three classifications of retailers.
What are Product Mix, Location, and Non-Store Retailing?
Partially or completed processed items that become a part of the products produced by the business.
What are Component Parts?
1) Adjust differences between producers and consumers
2) Provide marketing functions
3) Increase marketing efficiency
What are Channels of Distribution?
Last month, inventory shrinkage reduced the value of the Totale Company's inventory by 5% before it could be sold. If the inventory was worth $375,000 before the shrinkage occurred, what was it worth afterwards?
$375,000 - 5% = $356,250
What is $356,250?
Distribution channel for luxury products.
What is Exclusive?
This occurs when products are lost due to theft, fraud, negligence, or error.
What is Shrinkage?
A computer manufacturer's shipments to dealers decreased by 5,500 units in one month while retailers' depletions increased by 16,000 units. What is the implied change in retailers' inventory levels?
-5,500 - 16,000 = -21,500 units
What is decreased by 21,500 units?
Channel where there are intermediary businesses that perform some of the marketing functions.
What is Indirect Channel?
Typical wholesaling activities include. (Hint: B, S, T, S, and F)
What are Buying, Selling, Transporting, Storing, and Financing?
The final business organization in an indirect channel of distribution for consumer products.
What is Retailer?
Two important parts of the physical distribution information system.
What are Order Processing and Inventory Control?