Marketing Chapter 12 – Flashcards
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Marketing channel
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Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
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Middleman
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Any intermediary between the manufacturer and end-user markets
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Agent or broker
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Any intermediary with legal authority to act on behalf of the manufacturer
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Wholesaler
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An intermedairy who sales to other intermediary, usually to retailers; term usually applies to consumer markets
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Retailer
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An intermediary who sells to consumers
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Distributor
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An imprecise term, usually used to describe intermediaries who perfom a variety of distribution functions, inclusing selling, maintaining inventories, extending credit, and so on; a more common term in business markets but may also be used to refer to wholesalers
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Dealers
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A more precise term that distributors that can mean the same as distributor, retailer, wholesaler, and so forth
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What are the three basic functions performed by intermedairies
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Transactional function Logistical function Facilitatiting functions
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Time utility
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Refers to having a product or service when you want it. For example, FedEx provides next-morning delivery.
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Place utility
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Means having a product or service available where consumers want it, such as having a Chevron gas station located on a long stretch of lonely highway.
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Form utility
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Involves enhancing a product or service to make it more appealing to buyers. Consider the importance of bottlers in the soft-drink industry.
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Possession utility
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Entails efforts by intermediaries to help buyers take possession of a product or service, such as having airline tickets delivered by a travel agency
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Multichannel marketing
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The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
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Dual distribution
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An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
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strategic channel alliances
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It is whereby one firm's marketing channel is used to sell another firm's products
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Vertical marketing systems
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Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
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corporate, contractual, and administered
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What are the three major types of vertical marketing systems?
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corporate vertical marketing system
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The combination of successive stages of production and distribution under a single ownership
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contractual vertical marketing system
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Independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone.
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Wholesaler-sponsored voluntary chains
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wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts.
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Franchising
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A contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules.
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Intensive distribution
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When a firm tries to place its products and services in as many outlets as possible.
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Exclusive distribution
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When only one retailer in a specified geographical area carries the firm's products
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Selective distribution
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When a firm selects a few retailers in a specific geographical area to carry its products.
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Channel conflict
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Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
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vertical conflict and horizontal conflict
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What are the two types of conflict that occur in marketing channels
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Disintermediation
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A channel conflict that arises when a channel member bypasses another member and sells or buys a product direct
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6.What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?
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Target market coverage Buyer requirements Profitability
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Logistics
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Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
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Logistics management
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The practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements.
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Supply chain
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The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users.
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What are the three steps of marketing strategy
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Understand the customer Understand the supply chain Harmoniz the supply chain with the marketing strategy
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Total logistics cost
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Expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.
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customer service
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The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
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vendor-managed inventory
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An inventory management system whereby the supplier determines the product amount and assortment a customer(such as retailer) needs and automatically delivers the appropriate
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Reverse logistics
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A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.
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A channel intermediary that acts on behalf of the seller but does not take title to products is called a(n)
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agent or broker
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transactional
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Contacting potential customers, promoting products, and seeking orders would be an example of a(n) __________ function that intermediaries perform.
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low-cost, low unit value items.
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Adding a wholesaler to the marketing channel for consumer products is most common for
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Electronic marketing channels employ the Internet to make products and services available for consumption or use by consumers or business buyers.
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Which of the following statements regarding electronic marketing channels is most accurate?
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Most of Lands' End's revenues come through catalog and Internet sales, but it also operates over a dozen retail stores and factory outlets. This makes Lands' End an example of a(n) __________ marketer.
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multichannel
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achieve channel economies and maximum marketing impact.
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The purpose of a vertical marketing system is to
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Which of the following is the most popular type of vertical marketing system?
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contractual vertical marketing systems
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total inventory in the warehouse system will increase
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Suppose a large retail chain is considering increasing the number of distribution centers that serve its retail stores from 6 to 20. If the number of suppliers, retail outlets, and customers remain unchanged, which of the following statements accurately describes what will happen as a result of this expansion?
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Quick response systems
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Inventory management systems that are designed to reduce a retailer's lead time for receiving merchandise, which then lowers its inventory investment, improves its customer service levels, and reduce its total logistics expense.
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warehousing and materials handling
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Total logistic cost factors in a supply chain include transportation, order processing, stockout, inventory, returns, and __________.
