Marketing and Distribution Fundamentals

Physical distribution is a marketing function that facilitates the movement of goods from the manufacturer to the location of the ultimate users.

Order placement refers to the time that elapses from the time the customer develops the order until the order is received by the seller.

Internal order processing refers to the time required to process the customer's order until it is ready for shipment.

Order preparation refers to all activities relating to the picking and packaging of individual customer orders.

Order shipment refers to the time the order is placed upon a transport facility until the goods ordered are unloaded and received by the customer.

Durable goods are tangible products which normally survive many uses.

Convenience goods are those which are purchased with a minimum of effort.

Shopping goods are those that are bought only after an effort to compare with other goods is made.

Specialty goods are those that the consumers seek to buy and they are not willing or they are not able to accept substitute.

Unsought goods are those that are not yet wanted by or are still unknown to the consumer.

Logistics is the strategic managing of the efficient flow and storage of raw materials, in-process inventory and finished goods from the point of origin to point of consumption.

Distribution channel in marketing refers to the path or route through which goods and services travel to get from the place of production or manufacture to the final users, it has at its centre transportation and logistical consideration.

Discriminatory pricing refers to modifications of the basic price to accommodate differences in customer, product, and locations. The company sells its products or service at two or more prices.

Cash rebates these are offered to customers to encourage them to make purchases within a specified time period.

Allowance these are reductions from list prices to buyers for performing some activity.

Cash discounts are reduction in prices to encourage buyers to pay their bills quickly. An example is the one-hundred-peso discount offered to monthly instalment dues of a customer if he pays on or before due dates.

Marketing channels may be defined as a set of independent organizations and individuals that facilitate the movement and transfer of ownership of commodities from the producers to the ultimate users.

Personal selling is a promotional method in which the salesperson uses skills and techniques for building personal relationships with another party (those involved in a purchased decision) that result in both parties obtaining value.

Sales promotion is the process of persuading a possible customer to purchase the product. Sales promotion is designed to be used as short-term tactic to boost sales, it is appropriate as a technique of building long-term customer loyalty.

Product is anything offered for sale by the firm to buyers to satisfy their wants and needs.

Services are intangible goods like activities, benefits or satisfaction which are offered for sale.

Pricing may be defined as those activities involved in the determination of the price at which products that will be offered for sale considering the various objectives of the firm.

Skimming price strategy a company initially sets a high price for the product and at the same time promotes it heavily via advertising and sales promotion, eventually the firm lowers the price to capture a larger share of market.

Wholesaling refers to all activities involved in selling goods and services to those who intend to resell or use the same for producing goods or services.

Retailing refers to the business activity of selling goods or services to the final consumer.

Penetration pricing company prices its products low in order to penetrate its target as quickly as possible and thereby gain market control

Loss-leader pricing this refers to the practice of setting low prices on selected products which will result in the generation of less profits, but with the objective of increasing the sales volume of other products sold the company.

Intensive distribution is a strategy that requires the firm to sell its products through every available outlet in a market where a consumer might reasonably try to find them.

Price lining pricing this method refers to the practice of selling merchandise at a limited number of predetermined price levels, the different price levels are intended to represent various levels of quality.

Geographical pricing refers to pricing decisions related to product intended for customer in different locations.

Physical distribution is a marketing function that facilitates the movement of goods from the manufacturer to the location of the ultimate ______.

Order placement refers to the time that elapses from the time the customer develops the order until the order is received by the ______.

Internal order processing refers to the time required to process the customer's order until it is ready for ______.

Order preparation involves all activities relating to the picking and ______ of individual customer orders.

Order shipment refers to the time the order is placed upon a transport facility until the goods ordered are unloaded and received by the ______.

Durable goods are tangible products which normally ______ many uses.

Convenience goods are those which are purchased with a minimum of ______.

Shopping goods are those that are bought only after an effort to ______ with other goods is made.

CASH DISCOUNT refers to a reduction in ______ to encourage buyers to pay their bills quickly.

SKIMMING PRICE is a strategy where a company initially sets a high price for the product and promotes it heavily via ______ and sales promotion.

MARKETING CHANNELS can be defined as a set of interdependent organizations that facilitate the movement and transfer of ownership of ______ from producers to users.

PENETRATION PRICING involves pricing products ______ to quickly gain market control.

WHOLESALING refers to all activities involved in selling goods and services to those who intend to ______ or use the same for producing goods.

LOSS-LEADER PRICING is the practice of setting low prices on selected products to increase the ______ volume of other products sold by the company.

RETAILING is the business activity of selling goods or services to the final ______.

INTENSIVE DISTRIBUTION is a strategy that requires the firm to sell its products through every available ______ in a market.

____________ are those that are not yet wanted by or are still unknown to the consumer.

____________ refers to the strategic managing of the efficient flow and storage of raw materials, in-process inventory, and finished goods.

____________ is a promotional method in which the salesperson uses skills and techniques for building personal relationships.

____________ are intangible goods like activities, benefits or satisfaction which are offered for sale.

____________ refers to the path or route through which goods and services travel to the final users.

____________ pricing refers to the practice of setting low prices on selected products to generate increased sales volume of other products.

____________ pricing may be defined as those activities involved in determining the price at which products will be offered for sale.

____________ goods are those that consumers seek to buy and are not willing or able to accept substitutes.

Logistics

Distribution Channel

Discriminatory Pricing

Cash Rebates

Allowance

Cash Discount

Marketing Channels

Wholesaling

Retailing

Intensive Distribution

Price Lining Pricing

Geographical Pricing

Physical Distribution

Order Placement

Internal Order Processing

Order Preparation

Order Shipment

Durable Goods

Convenience Goods

Shopping Goods

Specialty Goods

Unsought Goods

Elements of an Efficient Physical Distribution

Personal Selling

Sales Promotion

Product

Services

Pricing

Skimming Price

Penetration Pricing

Loss-Leader Pricing

What are Specialty Goods?

What are Unsought Goods?

What is Sales Promotion?

What is Personal Selling?

What is a Product?

What are Services?

What is a Distribution Channel?

What is Logistics?

Skimming Pricing