reverse auction A process in which companies post what they
wantto buy and suppliers bid for the contract.
direct check method The merchandise is checked directly against
the actual invoice or purchase order.
spot check method The receiver of a delivery c
private warehouse A facility designed to meet the specific needs
of its owner.
public warehouse Storage and handling facilities offered to any
individual or company that will pay for its use.
distribution center A warehouse designed to speed delivery of
storefront The exterior of a business that includes a store's sign or
logo, marquee, outdoor lighting, banners, planters, awnings,
windows, the exterior design, ambiance, landscaping, and lighting
of the building
marquee An architectural canopy that exten
integrated distribution A distribution system in which
manufacturers act as wholesaler and retailer for their own
selective distribution A limited number of outlets in a given
geographic area are used to sell the product.
inventory turnover The number of times the average inventory has
been sold and replaced in a given period of time.
basic stock list A list used for those staple items that should
always be in stock.
model stock list An inventory monitoring plan used for
everday low prices (EDLP) Consistently low prices with no
intention of raising them or offering discounts in the future.
promotional pricing A pricing technique in which prices are
reduced for a short period of time, generally used in conjunction
transit advertising Advertising found on public transportation
broadcast media radio and television
online advertising A form of advertising that uses either e-mail or
the World Wide Web.
specialty media Relatively inexpensive, useful items featuring an
drop shippers Businesses that own the goods they sell but do not
physically handle the products.
retailers Channel of distribution that buys goods from wholesalers
or directly from manufacturers and resells them to the consumer.
price fixing When competitors agree on certain price ranges within
which they can set their own prices.
price discrimination Charging different prices to similar customers
in similar situations.
unit pricing Including price information for a standard unit
sales promotions All marketing activities-other than personal
selling, advertising, and public relations-that are used to
stimulate purchasing and sales.
trade promotions Sales promotion activities designed to get
support for a product from manufacturers,
Federal Trade Commission (FTC) Federal agency responsible for
enforcing the principles of a free enterprise system and protecting
consumers from unfair or deceptive business practices.
flextime A program that allows workers to choose their work hours
enumeration listing items in order
generalization a statement that is accepted as true by most
spreadsheet programs Software applications used to organize,
calculate, and analyze numerical data.
desktop publishing programs A software application th
business cycle Recurring changes in economic activity, such as
the expansion and contraction of an economy; expansion, peak,
recession, trough, and recovery
expansion A time when the economy is flourishing; also called
recession A period of ec
advertising form of nonpersonal promotion
direct marketing A type of advertising directed to a targeted group
of potential customer through the mail or through e-mail.
sales promotion all marketing activities
PR Activities that enable an organization to i
competition The struggle between companies to attract new
customers, keep existing ones, and take away customers from
price competition The sale price of a product; the assumption is
that consumers will buy the product with the lowest pri
North American Free Trade Agreement (NAFTA) An international
trade agreement among the United States, Canada, and Mexico.
European Union (EU) European trading bloc
licensing The process of letting another company (licensee) use a
trademark, patent, specia
industry A group of establishments primarily engaged in producing
or handling the same product or group of products or in rendering
the same services.
derived demand The demand for industrial goods based on the
demand for consumer goods and services.
factors of production Economic term for the four categories of
resources: land, labor, capital, and entrepreneurship.
infrastructure The physical development of a country, including its
roads, ports, sanitation facilities, and utilities.
cash-on-delivery (COD) sale A transaction that occurs when a
customer pays for merchandise at the time of delivery.
sales tax A percentage fee placed by the government on the sale
of goods and services.
allowance A partial return of the sale price for mer
standing-room-only close A method of closing a sale that is used
when a product is in short supply or when the price will be going
up in the near future.
direct close A closing method in which a salesperson asks for the
service close A way to close a
endless chain method The process of asking previous customers
for names of potential customers.
cold canvassing The process of locating as many potential
customers as possible without checking out leads beforehand.
sales quotas Dollar or unit sales goals
Vertical Marketing Systems professionally managed and centrally coordinated marketing
channels designed to achieve channel economies and maximum marketing impact
Major Types of Vertical Marketing Systems 1. Corporate Systems
2. Contractual Systems
Direct marketing channels allow consumer to buy products by interacting with various
advertising media without face to face meeting with a salesperson (mail order selling, direct mail
multichannel marketing the blending of different communica
Skimming Pricing is effective when. 1. enough prospective customers are willing to buy the
product immediately at the high initial price to make these sales profitable.
2. The high initial price will not attract competitors
3. Lowering price has only a mi
Cost-Plus Pricing summing the total unit cost of providing a product or service and adding a
specific amount to the cost to arrive at a price *Most commonly used method to set prices for
Two Forms of Cost Plus pricing 1. Cost-plus perce
Three sources of vertical Channel Conflict 1. Disintermediation - a channel member bypasses
another member and sells or buys the product direct
2. Disagreements over how profit margins are distributed
3. Manufacturers believe wholesalers or retailer are n
Marketing Channels consist of individuals and firms involved in the process of making a product
or service available for use or consumption by consumers or industrial users
intermediaries value is created by these - Ex. middleman, agent or broker, wholesa
Administered vertical marketing systems achieve coordination at successive stages of
production and distribution by the size and influence of one channel member rather than
Channel Partnerships consist of agreements and procedures among
4 Elements of Satisfying Buyer Requirements 1. Information 2. Convenience 3. Variety 4. Preor postsale services
Information an important requirement when buyers have limited knowledge or desire specific
data about a product or service
Convenience has mult
Trade (Functional) Discounts off the list price are offered to resellers in the marketing channel
on the basis of . 1. Where they are in the channel
2. The marketing activities they are expected to perform in the future
Cash Discounts used to encourage re