1. The product flow: traces the product itself from raw resources to finished product and final delivery to the customer.
2. the information flow: traces all info about a product as it moves through the process, (order informaiton and delivery status)
3. financial flow: traces payment schedules, credit terms, and any other additional financial arrangements that may be necessary, such as title and ownership arrangements. 

Marketing intermediary

(middleman)

a business or person that moves goods and services between producers and consumers or b/w business users.

** they reduce the time and costs of providing products to customers

types of intermediaries

(3)

1. wholesalers
2. agents / brokers
3. retailers

intermediaries that buy and resell products to other wholesalers, retailers, and industrial users. Primarly sell B2B products. 

(EX: local grocery store purchases tide laundry detergent from wholesaler who bought from p&g, manufactuer

EX: wholesale distributors = costco or sams club)

** primarily sell B2B ** 

merchant wholesalers

technical term for wholesaler

is the independently owned businesses that take ownership of the products they handle. 

cash-and-carry wholesalers

(limited-service wholesalers)

truck wholesalers

(limited-service wholesalers)

drop shippers

(limited-service wholesalers)

don't carry inventory or handle products.  They select a manufacturer who ships the merchandise directly to the customer. 

(usually lumber and coal industries)

Rack jobbers

  (limited-service wholesalers) 

1. manufacturers' agent: represent two or more manufacturers of complementary lines. 
2. selling agents: have contractual authority to sell a manufacturer's entire product line.  (common in machinery and equipment businesses)
3. purchasing agents: have long-term relationships with buyers and make purchases for them.  

1. in-store retailers
2. nonstore retailers

telemarketing

(nonstore retailing)

direct selling

(nonstore retailing)

direct marketing

(nonstore retailing)

appropiate for companies selling convenience goods, such as newpapers, soft drinks, gum, etc...

** convenient for purchase **

using only one outlet in a geographic area. 

(high quality sports cars, jewlery, or high fashion clothing)

logistics

& inbound logistics

• refers to managing the flow of materials, info, and processes that are involved in getting a product from its initial raw stages to the point of consumption. 

• any other goods and services from suppliers to the producer

warehousing

& 2 types

storing products at convenient locations ready for customers when they are needed

1. storage warehouses
2. distribution warehouses

1. advertising 
2. public relations 
3. personal selling 
4. sales promotions

steps involved in a promotional campaign 

(6 steps) 

1. identify the target market 
2. determine marketing objectives - (trying to introduce new product or respond to an attack by a competitor?)
3. design the message -(inform of benefits and in unified message)
4. determine the budget - (find mix that has biggest bang for buck) 
5. implement the promotional mix - (integrate and coordinate all promotional efforst) 
6. evaluate and adjust as needed - (effectiveness of any promotional mix depends on clearly understood and meansurable onjectives.)  

• introduction and growth stages of a product's life cycle bc it builds mass brand awareness and association 
• builds brand loyalty and equity 
• lead to lower prices for consumers 

Types of advertising 

(10 types) 

1. product advertising 
2. corporate (or institutional) advertising 
3. comparative advertising 
4. retail (local) advertising 
5. B2B advertising
6. nonprofit advertising
7. public service advertising 
8. advocacy advertising 
9. interactive advertising
10. internet 

promots a specific product's uses, features and benefits

(most commonly thought of) 

corporate advertising 

focuses on creating a positive image toward an organization or industry as oppoed to specific product.  

(EX: "Beef, It's what's for dinner.) 

focuses on promoting not-for-profit organizations

(EX: red cross, nature conservancy) 

(largest form) 

** junk mail **

displaying products iin television shows, movies and video games where they will be seen by potential customers.

(EX: coca-cola galsses in front of the judges on American Idol) 

public relation tools: 

(3 types) 

1. controlled messages 
2. semicontrolled messages 
3. uncontrolled messages 

1.  it is free 
2. it is more believable because it is often presented as a news story 

the direct communication between a firm's sales force and potential buyers to make a sale and build good customer relationships.  

(EX: laboratory supplies company may deploy a representativeto a reaserch facility to demonstrate new products.) 

a salesperson who increases a company's sales by selling to new customers and increasing sale to existing customers.  

(aka creative selling) 

(used in real estate, insurance, appliace, automoible companies) 

a salesperson who handles repeat sales and builds positive customer relationships. 

** one major job is to ensure buyers have sufficient quanitits of products when and where they are needed ** 

(especially in B2B sales that require standardized products that don't require technical sales expertise) 

1. prospecting
2. approaching the prospect 
3. presenting 
4. overcoming objections 
5. closing the sale 
6. following up

identify qualified (ability and authority to purchase) potential customers 

(EX: cold calling) 

approaching the prospect in the best way.

(2 ways) 

1. preapproach - salespeople learn as much as possible about their potential customers to determine their likely needs and think about how you can satisfy their needs
2. actual approach - the idea is to meet, great, and put the prospect at ease.  (build relationships) 

incentives designed to increase final consumer demand for a product 

** goal is to generate interest and excitement around a product ** 

coupons 

(sales promotional tools) 

rebates 

(sales promotional tools) 

provice a reduced price if the rebate form is mailed in along with a proof of purchase

(inexpensive for the businesses) 

frequent-user incentives 

(sales promotional tools) 

point-of-purchase (POP) displays 

(sales promotional tools) 

are strategically located to draw attention and encourage impulse purchases.  

(EX: items placed on racks close to check out) 

free samples 

(sales promotional tools) 

contests and sweepstakes 

(sales promotional tools) 

advertising specialties 

(sales promotional tools)