Marketing Ch. 16 – Grewal | Levy 5e – Flashcards

A supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship.

an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment.

process of gong through the goods upon receipt to make sure they arrived undamaged and that the merchandise ordered was the merchandise received.

Threatening or punishing the other channel member for not undertaking certain tasks. Delaying payment for late delivery would be an example.

Chain members must have common goals for a successful relationship to develop.

helps the manufacturer by supplying parts and materials.

the manufacturer owns the merchandise until it is sold by the retailer, at which tie the retailer pays for the merchandise.

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.

the parent company has complete control and can dictate the priorities and objectives of the marketing channel because it owns multiple segments of the channel, such as manufacturing plants, warehouse facilities, and retail outlets.

A distribution center to which vendors ship merchandise prepackaged and ready for sale. The merchandise goes to a staging area rather than into storage. When all merchandise going to a particular store has arrived in the staging area, it is loaded onto a truck and a way it goes.

there are no intermediaries between the buyer and seller (P488) Typically the seller is a manufacturer, such as when a carpentry business sells bookcases through its own store and online to individual consumers. The seller also can be an individual, such as when a knitter sells blankets and scarves to craft fairs, on Craigslist, or through eBay. OR Boeing sells planes to JetBlue, the marketing channel still is direct, this case is B2B.

the person who coordinates deliveries to the distribution center.

a facility for the receipt, storage, and redistribution of goods to company stores or customers, may be operated by retailers, manufacturers, or distribution specialists.

The computer-to-computer exchange of business documents from a retailer to a vendor and back. 3 main benefits 1.Reduces the cycle time 2. improves the overall quality of communications through better recordkeeping 3. data transmitted by EDI are in a computer-readable format that can be easily analyzed and used for a variety of tasks ranging fro evaluating vendor delivery performance to automating reorder processes.

When a channel member uses its expertise as leverage to influence the actions of another channel member.

Ready merchandise that is ready to be placed on the selling floor. Getting merchandise floor-ready entails ticketing, marking, and, in the case of some apparel, placing garments on hangers.

Flow 1: Customer to Store 2. Store to buyer 3. Buyer to Manufacturer 4. Store to Manufacturer 5. Store to Distribution Center 6. Manufacturer to Distribution Center and Buyer

a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor (P492) The most common type of contractual vertical marketing system.

occurs when there is a disagreement or discord among members at the same level of marketing channel, such as two competing retailers or two competing manufacturers.

several independent members--a manufacturer, a wholesaler, and a retailer--each attempts to satisfy it own objectives and maximize its profits, often at the expense of the other members.

once or more intermediaries work with manufacturers to provide goods and services to customers. Automobile manufacturers such as Ford and General Motors often use indirect distribution, such that dealers act as retailers.

A type of marketing channel power within an administered vertical marketing system in which one party (e.g. the manufacturer) provides or withholds important information to influence the actions of another party (e.g. retailer).

Systems inventory management systems that deliver less merchandise on a more frequent basis than traditional inventory systems. The firm gets the product just in tike for it to be used on the manufacture of another product or for sale when the customer wants it.

the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale.

A type of marketing channel power that occurs if the channel member exerting the power has a contractual agreement with the other channel member that requires the other channel member to behave in a certain way. This type of power occurs in an administered vertical marketing system.

a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels their customers require.

a document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas.

employees responsible for the financial planning and analysis of merchandise, and its allocation to stores.

exists in a marketing channel when one firm has the means or ability to dictate the actions of another member at a different level of distribution.

the amount of merchandise sent to the store is determined based on sales data captured by POS terminals. Customers pull the product into the market by demanding it.

merchandise is allocated to stores based on previous sales forecasts, which is likely to be a collaborative process between the manufacturer, wholesaler, and retailer.

an inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it. deliver less merchandise on a more frequent basis than traditional inventory systems.

tiny computer chips that automatically transmit to a special scanner all the information about a container's contents or individual products.

the process of recording the receipt of merchandise as it arrives at a distribution center.

By eliminating the need for paper transactions the EDI in the JIT system reduces the lead time, or the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale.

A type of marketing channel power that occurs if one channel member wants to be associated with another channel member. The channel member with whom the others wish to be associated has the power and can get them to do what they want.

A type of marketing channel power that occurs when the channel member exerting the power offers rewards to gain power, often a monetary incentive, for getting another channel member to do what it wants it to do.

the marketing channel members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial. In a conventional or administered marketing channel, there are significant incentives to establishing a strategic relationship even without contracts or ownership relationships.

a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system wide costs while satisfying the service levels their customers require.

refers to affixing price and identification labels to the merchandise.

Black and white bar code found on most merchandise.

an approach for improving marketing channel efficiency in which the manufacturer is responsible for maintaining the retailer's inventory levels in each of its stores.

When supply chain members that buy and sell to one another are not in agreement about their goals, roles, or rewards.

System a marketing channel in which the members act as a unified system. 3 types of vertical marketing systems: administered, contractual, and corporate

A supply chain in which the members act as a unified system, there are three types: administered, contractual and corporate.

firms that buy products from manufacturers and resell them to retailers.