Modules 25 and 26 – Flashcards

Unlock all answers in this set

Unlock answers
question
What is the point of Module 25?
answer
Wholesaling
question
What are the five areas in the channel decisions?
answer
Channel organization, channel structure, channel intensity, channel member selection, and channel management
question
What is channel member selection?
answer
Choosing partners (or intermediaries) that perform wholesaling or reselling activities. It buys products that it intends to resell without adding value. It sells to an end user or a consumer.
question
What is wholesaling?
answer
The execution of activities involved in servicing and/or selling to retailers and other businesses or intermediates that adds no value.
question
What are the seven basic types of intermediaries?
answer
Wholesaling - wholesalers, brokers/agents, manufacturing reps, selling tasks, branch/sales offices. Other - retailers and direct marketing.
question
What is the purpose of wholesaling?
answer
To address any inherent market discrepancies or separations through the effective and efficient execution of one or more of the universal marketing functions.
question
Do wholesalers add costs?
answer
Not from the macro perspective. From the firm's perspective, wholesalers add value.
question
What functions do wholesalers perform for suppliers?
answer
Market coverage, sales contact, inventory holding, order processing, market information, and customer support.
question
What functions do wholesalers add for the customer?
answer
Assortment, allocation, product information, credit, customer service, and technical support.
question
What does wholesaling impact?
answer
Directly tasks, time, and place utilities. Indirectly possession and experience.
question
What types of organizations can marketers choose from?
answer
Merchant, broker/agent, manufacturer's rep, sales agent, branch/sales office.
question
What criteria is this decision based on?
answer
Channel structure (direct or indirect), universal marketing functions (customer priorities, market efficiencies, and market effectiveness), competitive advantages, and product line/mix.
question
How can wholesalers be categorized?
answer
The depth of product lines, the marketing functions the wholesaler is proficient in, and the power of ownership / possession.
question
Who take titles to goods and services?
answer
Merchants and wholesalers - not manufacturing reps, brokers and agents, or selling agents. These represent the marketers goods and services for a fee or commission.
question
What are the four categories of wholesalers?
answer
Full-line (who carry a wide and deep product line mix), limited-line (who have a narrow product mix that is only one or two product lines - but deep), full service (includes all universal marketing functions), limited service (includes some universal marketing functions). One full service retailer is a rack jobber, who provides all universal marketing functions and organize products.
question
What is cash and carry?
answer
It doesn't provide delivery or financing services.
question
What is a drop shipper or desk jobber?
answer
It doesn't provide warehousing. A drop shipper simply arranges for delivery.
question
What is a truck dropper?
answer
They just handle warehousing, transportation, and market information.
question
What are agents and brokers?
answer
They do not take title, they have proficiency in marketing functions, they bring buyers and help facilitate a market transaction. They operate on a long-term contractual basis.
question
What is a retailers impact on value creation?
answer
Through the interactions they provide and the environments they create to contribute to functional, symbolic, and experiential values.
question
What are retailer alternatives?
answer
Store, direct marketing, and internet.
question
What are decision criteria?
answer
channel structure, environment, allocation and assortment, positioning, image, and the experience.
question
How is a retailer selected?
answer
Based on its ability to contribute to value creation through its interactions and environment, and the congruence of its positioning strategy and customer relationships and the positioning and customer relationships desired by the organization.
question
Appreciate the economic importance of wholesalers
answer
Wholesalers are intermediaries who take title to the products they carry and make the majority of their sales to businesses. Wholesalers purchase large amounts of merchandise from a variety of suppliers and offer it for resale in smaller quantities. They often provide credit, extensive information on product benefits, training on product use, and technical assistance. They are needed because small to medium-sized companies in many industries do not buy in sufficient quantity to deal directly with manufacturers. Many large companies also buy from wholesalers because of convenience, lower personnel costs and better customer service
question
Allocation
answer
A wholesaler function that entails purchasing products in large quantities and reselling them in smaller quantities.
question
Assortment
answer
A wholesaler function that entails selling a range of merchandise from a variety of sources.
question
Automated vending
answer
The use of machinery operated by coins or credit cards to dispense goods.
question
Big Box Retailer
answer
A large retail establishment, usually part of a chain, selling either general merchandise or specialty items (such as electronics) and focusing on large sales volume.
question
Chain Store
answer
One of a group of centrally owned and managed retail stores that handle the same product lines.
question
Convenience Store
answer
A small retailer with moderately low breadth and depth of merchandise.
question
Department Store
answer
A retailer with merchandise of broad variety and moderate depth and with a relatively high level of customer service.
question
Direct Marketing
answer
The use of various communication media to interact directly with customers and generally calling for them to make a direct response.
question
Discount Store
answer
A retailer offering a broad variety of merchandise with limited service and low prices.
question
Full-service wholesaler
answer
An intermediary who performs a wide range of functions or tasks for its customers.
question
Hypermarket
answer
A giant shopping facility with a wide selection of food and general merchandise at low prices.
question
Infomercial
answer
A programmatic advertisement of considerable length that resembles a documentary.
question
Limited-service wholesaler
answer
An intermediary who performs only some of the traditional channel functions, either eliminating others or passing them on to someone else.
question
Mail-order catalog
answer
A collection of product and price information that is published in paper form.
question
Off-price retailer
answer
A seller of brand-name clothing at low prices.
question
Private Label Merchandise
answer
Products with brand names owned by the retailer
question
Retailing
answer
The activities involved in selling of products to end users for use and consumption by the purchaser.
question
Scrambled merchandising
answer
A retail strategy that entails carrying an array of product lines that seem to be unrelated.
question
Specialty store
answer
A retailer offering merchandise in one primary product category in considerable depth.
question
Supermarket
answer
A large, departmentalized, food-oriented retail establishment that sells beverages, canned goods, dairy products, frozen foods, meat, produce and such nonfood items as health and beauty aids, kitchen utensils, magazines, pharmaceuticals and toys.
question
Superstore
answer
A retailer that focuses on a single product category but offers a huge selection and low prices; also called a category killer.
question
Telemarketing
answer
Using the telephone to contact leads (potential customers) from a list.
question
Variety store:
answer
A retailer offering a variety of low-priced merchandise of low to moderate quality.
question
Warehouse club
answer
A large, no-frills store that carries a revolving array of merchandise at low prices.
question
Wheel of retailing
answer
A descriptive theory about how retailers emerge, evolve and sometimes fade away.
question
Wholesaling
answer
Selling of goods for resale or use to retailers and other businesses."
question
Broker:
answer
A firm that does not take title to the goods it handles but actively negotiates the sale of goods for its clients.
question
Channel levels
answer
The number of distinct units (producers, intermediaries and customers) in a distribution channel.
question
Cross-docking
answer
Sorting and loading an incoming shipment from a supplier for delivery to customers without its being stored in any warehouse.
question
Direct channel
answer
A distribution channel in which the producer uses its own employees and physical assets to distribute the product directly to the end user.
question
Distribution center
answer
A location where inventory is maintained before being routed to individual sales outlets or customers.
question
Distribution intensity
answer
The number of locations through which a company sells its product in a given market area.
question
Efficient consumer response (ECR) programs
answer
Programs to improve the efficiency of replenishing, delivering and stocking inventory in the distribution channel, while promoting customer value.
question
Electronic data interchange (EDI)
answer
Intercompany computer-to-computer exchange of orders and other business documents in standard formats.
question
Exclusive dealing:
answer
Restricting intermediaries from carrying competitive lines.
question
Exclusive distribution
answer
Distributing a product through only one sales outlet in each trading area
question
Freight forwarders
answer
Service companies specializing in the movement of cargo from one point to another, often country to country.
question
Full-line forcing
answer
Requiring intermediaries to carry and sell the company's complete line.
question
Indirect channel:
answer
A distribution channel in which the producer makes use of independent organizations to distribute the product to end users.
question
Integrated logistics management
answer
The coordination of all logistical activities in a company
question
Intensive distribution
answer
Making the product available through every possible sales outlet in a trade area.
question
Intermediary
answer
Independently owned organization that acts as a link to move products between the producer and the end user.
question
Intermodal transportation
answer
The combination of two or more modes in moving freight.
question
Inventory control
answer
Management of stock levels.
question
Logistics
answer
The movement of raw materials, components and finished products within and between companies."
question
Marketing/distribution channel
answer
A set of interdependent organizations involved in making a good available for purchase.
question
Materials handling:
answer
The moving of products in and around a warehouse in the process of filling orders
question
Multiple channel systems
answer
The use of more than one channel to access markets for the same product.
question
Order management
answer
The means by which a company receives, fills and delivers orders to customers.
question
Physical distribution
answer
The movement of finished products through channels of distribution to customers.
question
Private warehouse
answer
A storage facility owned and operated by the company
question
Public warehouse
answer
A storage facility owned and operated by businesses that rent space.
question
Retailer
answer
A firm that takes title to products for resale to ultimate consumers.
question
Reverse Channel
answer
A distribution channel that flows from the end user to the wholesaler and producer
question
Selective Distribution
answer
The use of a limited number of sales outlets per trade area
question
Supply chain management
answer
Incorporation of all activities concerned with planning, implementation, and control of sourcing, manufacturing, and delivery of products or services
question
Tying arrangment
answer
The purchase of a superior product is conditioned on the purchase of a second product of lower quality
question
Warehousing
answer
The storage of inventory in the physical distribution system
question
Wholesaler
answer
A firm that takes title to products for resale to businesses, or other wholesalers or distributors, and sometimes consumers
question
Types of Retailers
answer
Nature of Format (In-store/Nonstore) Ownership structure Level of Services Provided Level of Merchandising
question
Task Fullfillment
answer
the extent the purpose of the shoping activity was achieved successfully and in a timely manner
question
Engagement
answer
The extent any 'humans's are involved in the experience; and that they are polite, genuinely caring and interested in helping, acknowledging and listening
question
Executional Excellence
answer
The extent that patiently explained product information is provided along with advising, checking stock, helping to find products, and providing unexpected product quality
question
Expedtiting
answer
Is being sensitive to customers' time on long check-out lines, being proactive in helping speed the shopping process
question
Problem recovery
answer
helping resolve and compensate for problems, upgrading quality and ensuring complete satisfaction
question
Brand Experience
answer
the extent to which products have consistently great quality, and staff make customers feel they're special and that they always get a deal
question
Atomosphere
answer
having an exciting store design and atmosphere that impact customers physically and emotionally
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New