Target rating points (TRPs), Gross rating points (GRPs)

TRP as a measurement in marketing is focusing on that ratio of all recipients through the whole reached audience (i.e. through the Gross rating points – GPRs) that are considered to be the “right target” for a specific product and/or service. TRPs are thus subdivisions out of GPRs. For example, an advertiser spends in a campaign using radio as a channel to reach all men in a region (GPR) while the core target for his products are men 35-55 years of age (TRP). Determining both in a right way is critical to employment of marketing channels of communication

Demographic characteristics

Objective descriptors of individuals and households: include age, income, family size, and employment status.

Indirect marketing channel

Channel containing one or more intermediary levels.

Disintermediation

This describes the process of elimination of a layer of intermediaries from a marketing channel or the displacement of traditional resellers by radically new types of intermediaries. Complete disintermediation tends to be the exception because intermediaries can often handle channel functions more efficiently than producers can handle them. Much of the initial hype surrounding Internet focused on disintermediation, but this did not happen. Many traditional intermediaries have been replaced with Internet equivalents, which are more efficient than traditional ones.

Reverse flow channel

The channels where there is a backward movement of products. They are important in case of: (1) Re-use products or containers, (2) Refurbished products for resale, (3) Recycled products and, (4) Dispose of products or packages.

Arbitration (channel conflict)

One of the types of conflict resolution mechanisms through some procedure between the producer and the retailer. When arbitration is used to resolve a conflict, parties voluntarily submit their disputes to a third part whose decision will be considered final and binding. This approach of conflict resolution is considered good because the conflict is resolved before it becomes too difficult to settle in a reasonably friendly manner.

Channel differentiation

One of the ways a companies can differentiate their offerings in the minds of the consumers. They can differentiate their offerings through their distribution channel’s coverage, expertise, and performance and thus may achieve competitive advantage.

Award (channel conflict)

One of the types of conflict resolution mechanisms through some procedure between the producer and the retailer. Award is a settlement that is reached between the producer and the retailer through a third person or agency to resolve the conflict and to accept the verdict rather than to continue with the conflict. An award is typically the result of a legal trial or arbitration. The courts of law have settled many conflicts in marketing channels, specifically between retailers and producers.

Advocate channel

One of the types of personal communication channels available to a marketer. Advocate channels consist of company’s sales people who contact buyers in the target market.

Conventional distribution channel

A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole. Also sometimes called conventional marketing channel.

Exclusive marketing

Situation in which a product supplier will offer selected vendors exclusive rights to a specific geographic area, industry and/or marketing channel. Resellers like having the exclusive right to a product because it means limited competition, which in turn leads to higher profit margins. They feel limited competition gives them a better opportunity to develop an area and are more likely to allocate resources to marketing the product. For the product manufacturer, granting exclusive marketing rights carries certain hazards. If a reseller is not reaching quota objectives, there’s little remedial action the manufacturer can take as long as the agreement in place. Manufacturers who grant exclusive rights should, in turn, demand quantity commitments or agreements that ca be cancelled if objectives are not reached.

Purchasing agents

Members of the marketing channel who operate on a contractual basis for a limited number of customers and receive a commission just as sales agents do.

Personal communication channels

One of the major communication channels that are used in disseminating information by the companies. Some of these channels are not under the control of a company. These channels involve two or more persons communicating directly with each other face-to-face, person-to-audience, over the telephone, or through e-mail. Personal communication channel derive their effectiveness through individualized presentation and feedback. Personal communication channels can be further classified into advocate, expert, and social communication channels.

Transients in marketing channel

One of the roles that an individual firm or company may perform in the channel system. Transients are firms that are outside the dominant channel and do not seek membership. They go in and out of the market and move around as opportunities arise. They have short-run expectations and little incentive to adhere to the industry code of conduct.

Z values

In the context of normal distribution and as well as in sampling distribution of mean z value concept is used. Z values are the number of standard errors a point is away from the mean.

Nonpersonal communication channels

Channels of communication that carry a message without involving interpersonal contact between sender and receiver. Nonpersonal channels are often referred to as mass media or mass communications, since the message is sent to many individuals at one time. For example, a TV commercial broadcast on a prime time show may be seen by millions of households at a given time.

Exclusive distribution

A market coverage strategy that relies on one retailer in a given geographic territory. It is most appropriate when the product is high involvement specialty or shopping good. Exclusive distribution is also useful when a firm wants to differentiate its products on the basis of high quality, prestige, or excellent customer service. The main advantage of exclusive distribution are that the manufacturer can choose retailers whose clientele match its target market, and that there will be close cooperation in implementing the producer’s merchandising and customer service programs.