Marketing DSM Chapter 11 – Flashcards
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In a process called __________, companies are eliminating many traditional intermediaries because they find that they don't add enough value to the distribution channel.
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disintermediation (of the distribution center)
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The advantage of using __________ is that they facilitate transactions for bulky products.
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drop shippers
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Marketers use __________ for products such as chewing gum, soft drinks, and milk that consumers quickly consume and must replace frequently.
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intensive distribution
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Sales agents who receive goods, primarily agricultural products, on consignment are __________.
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commission merchants
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__________ is the storing of goods in anticipation of sale or transfer to another member of the distribution channel.
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warehousing
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The name for the process that includes product returns, recycling and material reuse, and waste disposal
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reverse logististics
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the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door
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Order processing
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the process of designing, managing, and improving the movement of products through the supply chain
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logistics
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the mode by which products move among channel members
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transportation
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a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels
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vertical marketing system (VMS)
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selling a product only through a single outlet in a particular region
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exclusive distribution
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a group of retailers that establishes a wholesaling operation to help them compete more effectively with the large chains
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retailer cooperative
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an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose
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horizontal marketing system
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The number of times a firm's inventory completely cycles through during a defined time frame
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inventory turnover
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a multiple-level distribution channel in which channel members work independently of one another
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conventional marketing system
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a type of vertical marketing system, members remain independent but voluntarily work together because of the power of a single channel member
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administered VMS
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the dependence of producers, wholesalers, and retailers on one another for success
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channel cooperation
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the ability of members to influence, control, and lead the entire channel based on one or more sources of power
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channel power
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the dominant firm that controls the channel
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channel leader (or channel captain)
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incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacturer's distribution strategy
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channel conflict
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the inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed
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just-in-time inventory
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the name for all the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer
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supply chain
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the distinct categories of intermediaries that populate a channel of distribution
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channel levels
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buys products from a manufacturer and sells them to business customers
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industrial distributor
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uses a number of different channels and communication methods to serve a target market
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hybrid marketing system
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a fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space
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slotting allowance
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Firms that handle the flow of information from the manufacturer to the retailer or business user
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wholesaling intermediaries
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channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers
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Independent intermediaries
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intermediaries that buy goods from manufacturers and sell to retailers and other business-to-business customers
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Merchant wholesalers
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channel intermediaries that provide services in exchange for commissions but never take title to the product
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Merchandise agents (brokers)
