Ch. 16 Marketing – Flashcards
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Set of approaches and techniques firms employ to efficiently and effectively integrate suppliers, manufacturers, warehouses, stores, and transportation intermediaries in which merchandise is produced and distributed in the most efficient fashion.
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Marketing Channel Management
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Firms that buy products from manufacturers and resell them to retailers, who in turn sell directly to consumers.
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Wholesalers
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Yes. When there is a marketing channel, less transactions occur which in turn lowers cost and adds value.
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Do marketing channels add value?
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A facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists.
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Distribution Center
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The person who coordinates deliveries to the distribution center.
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Dispatcher
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Channel in which there are no intermediaries between the buyer and seller.
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Direct Marketing Channel
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Channel in which there are one or more intermediaries between the buyer and seller.
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Indirect Marketing Channel
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When supply chain members who buy and sell to one another are not in agreement about their goals, roles, or rewards.
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Vertical channel conflict
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When there is discord between members of the same marketing channel; ex. two competing retailers get involved in price war.
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Horizontal Channel Conflict
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Highest chance of conflict between channel members; each member only takes into account their own objectives.
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Conventional marketing channel
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A marketing channel in which all members act as unified system.
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Vertical marketing system
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A supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls or holds the balance of power in the channel relationship.
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Administered vertical marketing system
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A system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict.
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Contractual vertical marketing system
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A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios.
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Corporate vertical marketing system
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Franchising
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What is the most common type of contractual vertical marketing system?
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When marketing channel members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial; requires mutual trust, open communication, common goals, interdependence, and credible commitments.
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Partnering relationship
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Electronic document that the supplier sends to the retailer informing them of whats going to be in shipment.
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Advanced Shipping notice (ASN)
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Huge database where purchase data collected at the point of sale is stored.
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Data warehouse
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Computer to computer exchange of business documents from retailer to vendor and back; info includes on-hand inventory status, vendor promotions, cost changes, order change/status, retail prices, and transportation routings.
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Electronic data interchange (EDI)
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Approach for improving marketing channel efficiency in which manufacturer is responsible for maintaining retailer's inventory levels in each of its stores.
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Vendor-managed inventory (VMI)
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Merchandise is distributed to stores based on previous sales forecasts; manufacturers provide incentives to retailers or wholesalers to sell more products; encourages that manufacturers products to be sold before competitors.
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Push marketing strategy
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The amount of merchandise sent to a store is determined based on sales captured by POS terminals.
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Pull marketing strategy
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For perishable goods, items that help create the retailer's image of being the first to sell the latest product, or fads; helps ensure manufacturer products displayed properly at retail stores.
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Direct store delivery is used
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Delivery shipment and advanced shipping notice.
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The information between the manufacturer and the distribution center and buyer typically include
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coordinating inbound transportation; receiving, checking, storing, and cross-docking; getting merchandise "floor ready"; and coordinating outbound transportation.
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The distribution center provides the following activities
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Sales transaction data and automatic reordering.
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Information communicated from the store to the manufacturer typically includes
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Employees responsible for financial planning and analysis of merchandise, and its allocation of stores.
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Planners
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Process of recording the receipt of merchandise as it arrives at a distribution center.
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Receiving
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Process of going through the goods upon receipt to make sure they arrived undamaged and that the merchandise ordered was the merchandise received.
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Checking
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Tiny computer chips that automatically transmit to a special scanner all the info about a container's contents or individual products. Stores more info than UPC; also passive tracking devices; eliminates need to handle items individually and reduces overall inventory.
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Radio frequency identification tags (RFID)
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Merchandise at distribution center that is ready for sale and placed on conveyor system that routes it from the unloading dock at which it was received to the loading dock for the truck going to a specific store for delivery.
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Storing and Cross-Docking
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Document or display on screen in forklift truck indicating how much of each item to get from specific storage areas.
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Pick Ticket
