Ch. 9 Place And Development Of Channel Systems

Front 1

What is place?

Back 1

Making goods and services available in the right quantities and locations--when customers want them.

Front 2

What is channel of distribution?

Back 2

nay series of firms or individuals who participate in the flow of products from producer to final user or consumer.

Front 3

What is direct marketing?

Back 3

direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.

Front 4

Discrepancy of quantity

Back 4

the difference between the quantity of products it os econimical for a producer to make and the quantity final users or consumers normally want.

Front 5

Discrepancy of assortment

Back 5

the difference between the lines of a typical producer makes and the assortment final users/customers want.

Front 6

regrouping activities

Back 6

adjusts the quantities or assortments of products handled at each level in a channel of distribution.

Front 7

What are the 4 regrouping activities?

Back 7

Accumulating- collecting products from many small producers.
bulk-breaking- dividing large quantities into smaller quantities as products get closer to the final market.
sorting- separating products into grades and qualities desired by different target markets.
assorting- putting together a variety of products to vie a target market what it wants.

Front 8

traditional channel systems

Back 8

the various channel members make little or no effort to cooperate with each other.

Front 9

channel captain

Back 9

a manager who helps direct the activities of a whoe channel and tries to avoid or solve channel conflicts

Front 10

Vertical marketing systems

Back 10

channel systems in which the whole channel focuses on the same target market at the end of the channel.

Front 11

Corporate channel systems

Back 11

corporate ownership all along the channel.

Front 12

vertical integration

Back 12

acquiring firms at different levels of channel activities.

Front 13

administered channel systems

Back 13

the channel members informally agree to cooperate with each other.

Front 14

contractual channel systems

Back 14

the channel members agree by contract to cooperate with each other.

Front 15

ideal market exposure

Back 15

makes a product available widely enough to satisfy target customers' needs by not exceed them.

Front 16

intensive distribution

Back 16

selling a product though all responsible and suitable wholesalers or retailers who will stock or sell the product.

Front 17

selective distribution

Back 17

selling through only those middlemen who will give the product special attention

Front 18

exclusive distribution

Back 18

selling through only middlemen in a particular geographic area.

Front 19

Multichannel distribution (or dual distribution)

Back 19

occurs when a producer uses several competing channels to reach the same target market.

Front 20

revenue channels

Back 20

channels used to retrieve products that customers no longer want.

Front 21

Discrepancies of quantity occur because:

Back 21

to obtain economies of scale, individual producers often make larger quantities of products than individual consumers normally want to buy.

Front 22

Marketing specialists develop to adjust "discrepancies" in the marketplace. Which of the following best explains the concept of "discrepancies"?

Back 22

The assortment and quantity of products wanted by a customer may be different than the assortment and quantity of products normally produced by a manufacturer.

Front 23

A channel of distribution:

Back 23

is any series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer.

Front 24

Ideally, a "channel captain":

Back 24

earns that "position" by effective leadership.

Front 25

In "traditional channel systems"

Back 25

members at each level of the channel often have a very different view of who the competitors are.

Front 26

When a channel has a "product-market commitment":

Back 26

all members focus on the same target market at the end of the channel and there is no need for a channel captain to develop

Front 27

What is true about channel systems?

Back 27

Some administered channel systems have achieved the advantages of vertically integrated systems while retaining more flexibility.

Front 28

Marketing managers should know that:

Back 28

vertical arrangements between manufacturers and middlemen which limit sales by customer or territory may be legal according to a Supreme Court ruling.

Front 29

The best level of market exposure for a product

Back 29

makes a product available widely enough to satisfy target customers' needs but NOT exceed them.

Front 30

Ideally, a "channel captain":

Back 30

earns that "position" by effective leadership.

Front 31

Although some middlemen may resent this approach, a manufacturer may have to use "multi-channel distribution" because:

Back 31

present channel members are doing a poor job and big retail chains want to deal directly.

Front 32

What kind of Vertical marketing system does Pepsico have?

Back 32

Vertical

Front 33

How much does Pepsico generate in revenue each year?

Back 33

3.2 billion

Front 34

What is the push and pull strategy?

Back 34

Push-- getting retailers to allocate as much space for pepsi products as well as get them to sale and promote the products.

pull is building brand awareness and loyalty

Front 35

What are the 3 channels of distribution for Pepsi?

Back 35

Large format ex. Walmart
small format ex. Wal-greens
On-premise ex. Taco Bell, schools, vending machines

Front 36

why use an indirect system?

Back 36

Because some customers are spread throughout geographic areas, they often prefer to shop for certain products at specific places. Ex. some people see Sears as the place to buy tires.

Front 37

How much does Celestial Seasonings make a year?

Back 37

100 million.