Chapter 10 – Fashion Marketing Channels & Supply Chain Management – Flashcards
Unlock all answers in this set
Unlock answersquestion
Marketing Channels / Distribution Channels
answer
-Set of independent business organizations that help make a product available
question
What are Intermediaries
answer
-Members of the marketing channel that work with manufacturers, other intermediaries and/or ultimate consumers
question
Retailers *type of intermediaries
answer
-Organizations that sell mainly to consumers
question
Merchant Wholesales *type of intermediaries
answer
-Businesses that own the goods they sell to other intermediaries
question
Agents & Brokers *type of intermediaries
answer
-Represent wholesalers, retailers, or manufacturers to customers -Make buying & selling easier
question
The Purpose of Marketing Channels
answer
-To accomplish what a manufacturer may not be willing or able to afford to do alone -Tasks satisfy customers & profits
question
Channel of Distribution - 5 Stages (map of how raw materials become products then get into the hands of customers as goods)
answer
Raw Materials > Manufacturers > Wholesaler/Distributor > Retailer > Consumer
question
Channel Conflict
answer
-Disagreements over which member should do what and how should each be compensated - can occur b/c members are often separate & often independent organizations
question
Marketing Consumer Goods
answer
-4 marketing channels for consumer goods *1 Direct Marketing Channel *3 Indirect Marketing Channels
question
Direct Marketing Channels *Marketing Consumer Goods
answer
-A promotional strategy in which the seller initiates direct contact to carefully chosen individual customers by one or more channels in order to cultivate a relationship & solicit a response, usually in the form of a purchase -Work directly w consumers
question
Indirect Marketing Channels *Marketing Consumer Goods
answer
-A marketing channel that contains one or more intermediary -The shortest selling channel from manufacturer to retailer (used by large marketers)
question
Business Marketing Channels
answer
-Can be direct or indirect -Services often marketed thru direct channels
question
Conventional Marketing Channels
answer
-Independent manufacturers, intermediaries -Each transaction is unique -Doesn't maximize profitability opportunities because lack of coordination leads to inefficiency
question
Vertical Marketing System (VMS)
answer
Arrangement in which manufacturers ; intermediaries work together to coordinate marketing efforts -3 types of VMS [corporate, contractual, administered]
question
Corporate Marketing Systems *Type of VMS
answer
-Brings the entire channel under 1 ownership
question
Contractual Marketing Systems *Type of VMS
answer
-Exists thru written agreements between manufacturers and intermediaries
question
Administered Marketing System *Type of VMS
answer
-When 1 member of a of a marketing channel wields more power than the others
question
Franchise
answer
An agreement between a large well known marketing organization and a local business to market the franchisers product exclusively
question
Multi-Channel Marketing
answer
The use of marketers of a variety of channels in order to reach a wide range of customers
question
Channel Decisions
answer
-Marketers need to consider a number of factors to choose the most appropriate channel to maximize profitability
question
Analyzing Customer Demand *Channel Decisions
answer
Fashion marketers analyze customer needs
question
Establishing Channel Goals *Channel Decisions
answer
3 factors when establishing channel goals *customer service levels *the size of the company *external marketing factors
question
Determining Distribution Intensity *Channel Decisions
answer
Exclusive Distribution Strategy - using 1 or a few retailers in a certain area (expensive/luxury goods) Selective Distribution Strategy -when marketing goods need some explination or that customers want to compare w similar goods (popular priced items) Intensive Distribution Strategy -Place products in many locations (cheaper products)
question
Channel Management
answer
Companies decide on the most useful marketing channels for their purposes, they first select, then motivate, and continually evaluate their choices
question
Marketing Logistics
answer
Include planning, initiating ; controlling the physical flow of products form producers to consumers
question
Supply Chain
answer
The combination of businesses that perform the marketing logistics activities necessary in moving products from producers to consumers
question
Marketing Logistics Activities
answer
Supply chain managers work to provide logistics systems that meet the levels of service at the cost each customer is willing to incur *include a series of things
question
Transportation *Marketing Logistics Activities
answer
Intermodal Transportation -combining more than 1 type of transportation such as truck and train or ship Containerization -shipping goods in standardized containers Radio Frequency Identification -tiny electronic chips that can be scanned with special equipment to provide detailed info about the product at any point thru the supply chain
question
Warehousing ; Storage *Marketing Logistics Activities
answer
Marketers need to store goods for as short as possible to gain a profit
question
Inventory Management *Marketing Logistics Activities
answer
Maintaining an assortment of goods to fulfill store requirements ; meet customer needs
question
Information Processing *Marketing Logistics Activities
answer
Receiving merchandise orders, locating the goods, and tracking their shipment to the retailer Order processing - receiving ; transmitting info concerning merch orders such as quantity, style ; price Exporting - the marketing of a company's products in other countries
