Selling goods only at certain predetermined prices that reflect explicit price breaks • Promotional pricing o Price leaders ▪ Below, near cost , or below cost o Special event pricing ▪ Increase sales volume ▪ Ads sales or price cutting linked to an event o Comparison discounting
▪ Sets the price of a product at a specified level and simultaneously compares it with a higher price Determination of a specific price Pricing for business markets • Size of purchases, transportation considerations, and geographic issues • Geographic pricing o Deal with delivery costs o FOB – price does not include delivery charges o FOB destentiation – product price does include freight charges • Transfer pricing o When one unit in an organization sells a product to another unit • Discounting o Is a deduction off the price of an item o Trade discounts o Quantity discounts o Cash discounts
Test 10-16 11-14 12-12 13- 8 3- video Chapter 13 marketing channels and supply chain management Foundations of the supply chain • Distribution - the decision and activities that make products available to customers when and where they want to purchase them • Supply chain - all the organizations and activities involved with the flow and transformation of products from raw materials through to the end customer • Operations management - the total set of managerial acivties used by an organization to transform resource inputs into goods, services, or both • Logistics management - planning, implementing, and controlling the efficient and effective flow and storage of producs and info from the point of origin to consumption in order to meet customers needs and wants • Supply management – the processes that enable the progress of value from raw material to final customer and back redesign and final disposition Supply chain management • The coordination of all the activities involved with the flow and transformation of supplies, products, and info throughout the supply chain to the ultimate consumer • Incorporates several functions o Operations management o Logistics
o Supply o Marketing channel • Scm begin with a focus on the customer Marketing channel • Consist of a group of individuals and organizations that direct flow of producers to customers within the supply chain Marketing intermediaries • Are middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products Disintermediation • When a channel member decides to eliminate intermediaries and to buy and or sell direct
Marketing channels create value by providing utility • Time • Place • Form • Possession Direct indirect channels • Direct – when a producer and ultimate consumer deal directly with each other • Indirect- when intermediaries are inserted between the producer and customers and perform numerous channel functions Industrial distributor • Performs a variety of marketing channel funcstions, including selling, stocking, and delivering a full product assortment and financing. An independent business that intakes
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- Spring '14