MKT Ch. 10 – Flashcards
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Sets of interdependent organizations that help make the product or service of a company available for use by consumers or by business users
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Marketing channels
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Producers use marketing intermediaries because they:
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create greater efficiency in making goods available to target markets
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Creates shortest distribution channel between a producer and a consumer
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Direct marketing
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Producer has guaranteed full control over product sales
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Direct marketing channel
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T/F: Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers
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False
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T/F: A channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
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True
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T/F: A company that has no intermediary levels sells its products directly to its customers
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True
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Producers, wholesalers, and retailers act as a unified system. In such a structure, 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
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Combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership
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Corporate vertical
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Marketing system in which independent firms at different levels of production and distribution join together through binding agreements
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Contractual vertical
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Franchise organization most likely follows:
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Contractual vertical marketing system
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Leadership over production and distribution is assumed through the size and power of one or few dominant channel members
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Administered vertical marketing system
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2 or more companies at one level join together to follow a new marketing opportunity
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Horizontal marketing system
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T/F: in a vertical marketing system, producers do not use intermediaries to sell their products
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False
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T/F: A horizontal marketing system can develop between a company and its competitor
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True
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T/F: A multichannel marketing system is one in which a producer sells to multiple markets using the same distributional channel
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False
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T/F: Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers
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True
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Product distribution strategy that involves stocking a product in as many outlets as possible
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Intensive
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Gives a limited number of dealers the sole rights to distribute a company's products in their territories
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Exclusive Distribution
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T/F: Marketing channel design calls for analyzing consumer needs, setting objectives, identifying major channel alternatives, and evaluating those alternatives
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True
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T/F: Companies selling perishable products generally prefer direct marketing, which minimizes delays
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True
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Strategy when a seller requires only certain dealers carry its products
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Exclusive distribution
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T/F: In exclusive dealing, a producer may agree not to sell to other dealers in a given area
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True
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In supply chain management, moving products and materials from suppliers to the factory is known as
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Inbound logistics
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Highly automated and designed to receive goods from various plants and supplies, take orders, fill them efficiently, and deliver goods to customers as quickly as possible
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Distribution center
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Most efficient for short hauls of high-value merchandise and is highly flexible in routing and time schedule
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Trucks
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Involves combining two or more systems of transportation to move products
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Multimodal transportation
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T/F: Customer-centered logistics starts with the marketplace and works backward to the factory
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True
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T/F: Supply chain mgt involves managing both upstream and downstream value-added flows of materials
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True
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T/F: According to the text, the goal of any logistics system should be to maximize sales, not profits
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False
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T/F: Inbound logistics involves managing the flow of products from an intermediary to a customer
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False
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T/F: With a vendor-managed inventory system, the supplier takes full responsibility for managing inventories and deliveries
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True
