question

upstream and downstream partners: upstream- firms that supply raw materials, components, parts, info, finances, expertise downstream- whole salers, retailers

answer

supply chain

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made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system

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value delivery network

question

1. what is the nature of marketing channels and why are they important 2. how do channel firms interact and organize to do the work of the channel 3. what problems do companies face in designing and managing their channels 4. what role do physical distribution and supply chain management play in attracting and satisfying customers

answer

4 major questions concerning marketing channels

question

set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

answer

marketing channel (distribution channel)

question

1. information- gathering and distributing info 2. promotion- developing and spreading persuasive communications about an offer 3. contact- find and communicate with prospective buyers 4. matching 5. negotiation 6. physical distribution 7. financing 8. risk taking

answer

members of marketing channel perform many key functions:

question

layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

answer

channel level

question

a marketing channel that has no intermediary levels, company sells directly to consumers

answer

direct marketing channel

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length of a channel

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number of intermediary levels

question

marketing channel containing one or more intermediary levels

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indirect marketing channel

question

physical flow of products flow of ownership payment flow info flow promotion flow

answer

all institutions in channel are connected by several types of flows:

question

disagreements among marketing channel members on goals, roles and rewards- who should do what and for what rewards

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channel conflict

question

occurs among firms at the same level of the channel

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horizontal conflict

question

conflict between different levels of the same channel, even more common

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vertical conflict

question

channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole

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conventional distribution channel

question

channel structure in which producers, wholesalers, and retailers act as a unified system. one channel member owns the others, has contracts with them or has so much power that they all cooperate

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vertical marketing system(VMS)

question

vertical marketing system that combines successive stages of production and distribution under single ownership- channel leadership is established through common ownership

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corporate VMS

question

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

answer

contractual VMS

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contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process

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franchise organization

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1. manufacturer-sponsored retailer franchise system 2. manufacturer-sponsored wholesaler franchise system 3. service-firm sponsored retailer franchise system

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3 types of franchises

question

vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

answer

administered VMS

question

channel arrangement in which 2 or more companies at one level join together to follow a new marketing opportunity, ex: when there is a mcdonalds in a walmart

answer

horizontal marketing system

question

distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments, advantages: expansion of sales and marketing coverage, tailor made products and services for the specific needs of customer segments disadvantages: harder to control, generates conflict

answer

multichannel distribution system

question

cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

answer

disintermediation

question

designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives and evaluating those alternatives

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marketing channel design

question

types of intermediaries number of intermediaries responsibilities of each channel member

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after defining channel objectives, company should identify major channel alternatives in terms of:

question

stocking the product in as many outlets as possible

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intensive distribution

question

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

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exclusive distribution

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the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products

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selective distribution

question

intensive, exclusive, selective

answer

3 strategies of number of marketing intermediaries

question

selecting, managing and motivating individual channel members and evaluating their performance over time

answer

marketing channel management

question

supply chain management, used to help recruit, train, organize, manage, motivate, evaluate relationships with channel partners

answer

SCM software

question

planning, implementing, and controlling the physical flow of materials, final goods and related info from points of origin to points of consumption to meet customer requirements at a profit

answer

marketing logistics(physical distribution)

question

when the seller requires that these dealers not handle competitors' products

answer

exclusive dealing

question

producer may agree not to sell to other dealers in a give area or the buyer may agree to sell only in its own territory

answer

exclusive territorial agreements

question

producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line

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full-line forcing

question

start with the marketplace and work backward to the factory or even sources of supply

answer

customer centered logistics

question

moving product from factory to resellers and ultimately customers

answer

outbound logistics

question

moving products and materials from suppliers to the factor

answer

inbound logistics

question

reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers

answer

reverse logistics

question

managing upstream and downstream value-added flows of materials, final goods and related info among suppliers, the company, resellers, and final consumers

answer

supply chain management

question

coordinate the activities of suppliers, purchasing agents, marketers, channel members, customers

answer

logistics manager's task

question

warehousing, inventory management, transportation, logistics information management

answer

major logistics functions

question

large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

answer

distribution center

question

producers and retailers carry only small inventories of parts or merchandise, often enough for only a few days of operations

answer

just-in time logistics

question

trucks, railroads, water carriers, pipelines, air carriers, internet

answer

types of transportation

question

combining two or more modes of transportation- fishy back (water and truck) trainship (rail and water), air truck (air and trucks)

answer

multimodal transportation

question

digital exchange of data between organizations, which primarily is transmitted via the internet

answer

electronic data interchange

question

customer shares real time data on sales and current inventory levels with the supplier. supplier then takes full responsibility for managing inventories and deliveries

answer

vendor managed inventory (continuous replenishment systems)

question

logistics concept that emphasizes teamwork- both inside the company and among all the marketing channel organizations- to maximize the performance of the entire distribution system

answer

integrated logistics management

question

an independent logistics provider that performs any or all of the functions required to get a client's product to market

answer

third party logistics provider

question

manufacturer- retailer-consumer

answer

1 level channel

question

manufacturer- wholesaler-retailer-consumer

answer

2 level channel

question

manufacturer- wholesaler-jobber-retailer-consumer

answer

3 level channel

question

degree of control achieved by the seller-proportionate to the directness of the channel

answer

desired degree of control

question

provide delivery, credit, repairs, advertising, market research and more to their customers, and often field their own sales force

answer

full service merchant wholesaler

question

provide fewer services to their customers, and include the cash-and-carry wholesaler, truck jobbers, drop shippers, mail-order wholesalers, and rack jobbers

answer

limited service merchant wholesalers

question

provide products for small business customers and are used to distribute low cost merchandise for small retailers and other business customers

answer

cash and carry wholesalers

question

deliver perishable food and tobacco items to retailers

answer

truck jobbers

question

take orders from retailers and bill retailers for bulky items that are drop shipped from the manufacturer

answer

drop shippers

question

sell through the phone, via mail order, or catalogs and thus provide reasonably priced items to smaller organizational customers

answer

mail order wholesalers

question

provide display units to retailers, check inventories and stock shelves

answer

rack jobbers

question

manufacturer's purchasing wholesalers or retailers

answer

forward integration

question

wholesalers or retailers purchase channel members above them

answer

backward integration

question

cost speed of delivery accessibility capability traceability

answer

variables that effect transportation choice

Marketing Ch 10 marketing channels – Flashcards

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