Chapter 12: Marketing Channels- Delivering Customer Value (Final Exam) – Flashcards
Unlock all answers in this set
Unlock answersquestion
Upstream Partners
answer
Raw Material suppliers, components, parts, information, finances, and expertise to create a product or service
question
Downstream partners
answer
include the marketing channels or distribution channels that look toward the customer, including retailers and wholesalers
question
Information
answer
Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange.
question
Promotion
answer
Developing and spreading persuasive communications about an offer.
question
Contact
answer
Finding and communicating with prospective buyers.
question
Matching
answer
Shaping and fitting the offer to the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
question
Negotiation
answer
Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.
question
Physical Distribution
answer
transporting and storing goods
question
Financing
answer
acquiring and using funds to cover the costs of the channel work
question
Risk Taking
answer
Assuming the risks of carrying out the channel work
question
Risk taking
answer
assuming the risks of carrying out the channel work
question
Marketing Channel
answer
consists of firms that have partnered for their common good with each member playing a specialized role
question
Channel conflict
answer
disagreement over goals, roles and rewards can be horizontal (among franchisees) or vertical (KFC v. franchisees)
question
Conventional distribution systems
answer
Independent producers, wholesalers and retailers Maximize its own profits Little control
question
Vertical Marketing Systems (VMSs)
answer
provide channel leadership and consist of producers, wholesalers and retailers acting as a unified system and consist of: contractual marketing systems corporate marketing systems administered marketing systems
question
Contractual Vertical Marketing System
answer
consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone (Ex. Franchise)
question
Franchise Organization
answer
links several stages in the production distribution process. Manufacturer sponsored wholesaler/ retailer or service firm sponsored retailer franchise system
question
Manufacturer sponsored retailer franchise system
answer
General Motors and it's independent franchised dealers
question
Manufacturer sponsored wholesaler franchise system
answer
Coca cola licenses bottlers
question
Service firm sponsored retailer franchise system
answer
McDonald's and its franchisee-operated restaurants
question
Corporate Vertical Marketing System
answer
integrates successive stages of production and distribution under single ownership (Ex. Zara)
question
Administered vertical marketing system
answer
a few dominant channel members without common ownership, leadership comes from zip and power. (Ex. P&G and retailers including Target)
question
Horizontal Marketing systems
answer
when two or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone.
question
Multichannel distribution system
answer
a single firm sets up two or more marketing channels to reach one or more customer segments
question
Disintermediation
answer
occurs when a product or service producer cuts out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones
question
Intensive distribution
answer
Ex. Candy and toothpaste
question
Exclusive distribution
answer
luxury automobiles and prestige clothing
question
Selective distribution
answer
television and home appliance
