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37 Cards in this Set

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  • Back
What is place?
Making goods and services available in the right quantities and locations--when customers want them.
What is channel of distribution?
nay series of firms or individuals who participate in the flow of products from producer to final user or consumer.
What is direct marketing?
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.
Discrepancy of quantity
the difference between the quantity of products it os econimical for a producer to make and the quantity final users or consumers normally want.
Discrepancy of assortment
the difference between the lines of a typical producer makes and the assortment final users/customers want.
regrouping activities
adjusts the quantities or assortments of products handled at each level in a channel of distribution.
What are the 4 regrouping activities?
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.
traditional channel systems
the various channel members make little or no effort to cooperate with each other.
channel captain
a manager who helps direct the activities of a whoe channel and tries to avoid or solve channel conflicts
Vertical marketing systems
channel systems in which the whole channel focuses on the same target market at the end of the channel.
Corporate channel systems
corporate ownership all along the channel.
vertical integration
acquiring firms at different levels of channel activities.
administered channel systems
the channel members informally agree to cooperate with each other.
contractual channel systems
the channel members agree by contract to cooperate with each other.
ideal market exposure
makes a product available widely enough to satisfy target customers' needs by not exceed them.
intensive distribution
selling a product though all responsible and suitable wholesalers or retailers who will stock or sell the product.
selective distribution
selling through only those middlemen who will give the product special attention
exclusive distribution
selling through only middlemen in a particular geographic area.
Multichannel distribution (or dual distribution)
occurs when a producer uses several competing channels to reach the same target market.
revenue channels
channels used to retrieve products that customers no longer want.
Discrepancies of quantity occur because:
to obtain economies of scale, individual producers often make larger quantities of products than individual consumers normally want to buy.
Marketing specialists develop to adjust "discrepancies" in the marketplace. Which of the following best explains the concept of "discrepancies"?
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.
A channel of distribution:
is any series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer.
Ideally, a "channel captain":
earns that "position" by effective leadership.
In "traditional channel systems"
members at each level of the channel often have a very different view of who the competitors are.
When a channel has a "product-market commitment":
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
What is true about channel systems?
Some administered channel systems have achieved the advantages of vertically integrated systems while retaining more flexibility.
Marketing managers should know that:
vertical arrangements between manufacturers and middlemen which limit sales by customer or territory may be legal according to a Supreme Court ruling.
The best level of market exposure for a product
makes a product available widely enough to satisfy target customers' needs but NOT exceed them.
Ideally, a "channel captain":
earns that "position" by effective leadership.
Although some middlemen may resent this approach, a manufacturer may have to use "multi-channel distribution" because:
present channel members are doing a poor job and big retail chains want to deal directly.
What kind of Vertical marketing system does Pepsico have?
How much does Pepsico generate in revenue each year?
3.2 billion
What is the push and pull strategy?
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
What are the 3 channels of distribution for Pepsi?
Large format ex. Walmart
small format ex. Wal-greens
On-premise ex. Taco Bell, schools, vending machines
why use an indirect system?
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.
How much does Celestial Seasonings make a year?
100 million.