Chapter 15

Front 1

marketing channel

Back 1

consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

Front 2

transactional function

Back 2

Involves buying, selling, and sharing risk with the producer by stocking merchandise in anticipation of sales.

Front 3

logistical function

Back 3

Involves gathering, sorting, and dispersing of products to buyers

Front 4

facilitating function

Back 4

Assists producers in making the transactions of goods and services more attractive for buyers.

Front 5

direct channel

Back 5

a marketing channel where a producer and ultimate consumers deal directly with each other.

Front 6

Indirect channels

Back 6

are marketing channels where intermediaries:

 Are inserted between the producer and consumers.

 Perform numerous channel functions.

Front 7

Electronic marketing channels

Back 7

employ the Internet to make products and services available for consumption or use by consumers or organizational buyers.

Front 8

Direct marketing channels

Back 8

Allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson.

Front 9

Direct marketing channels

Back 9

Examples:

 Mail order selling.  Telemarketing.

 Direct mail sales.  Interactive media.

 Catalog sales.  Televised home shopping.

Front 10

Dual distribution

Back 10

is an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

Front 11

Strategic channel alliances

Back 11

involve a practice whereby one firm’s marketing channel is used to sell another firm’s products.

Front 12

corporate vertical marketing system

Back 12

is the combination of successive stages of production and distribution under a single ownership.

Front 13

Forward integration.

Back 13

– Occurs when a producer owns an intermediary at the next level down in the channel.

– Examples: Ralph Lauren, Apple.

Front 14

Backward integration.

Back 14

– Occurs when a retailer owns a manufacturing operation.

– Examples: Kroger Supermarkets, Tiffany & Co.

Front 15

Why are channels for business products typically shorter than channels for consumer products?

Back 15

Business channels are typically shorter than consumer channels because business users are fewer in number, tend to be more concentrated geographically, and buy in larger quantities.

Front 16

What is the principal distinction between a corporate vertical marketing system and an administered vertical marketing system?

Back 16

A corporate vertical marketing system combines successive stages of production and distribution under a single ownership. An administered vertical marketing system achieves coordination by the size and influence of one channel member rather than through ownership.

Front 17

Three degrees of distribution density exist:

Back 17

Intensive distribution.

Exclusive distribution

Selective "

Front 18

Density

Back 18

the number of stores in a given geographical area.

Front 19

 Intensive distribution.

Back 19

Examples: Coca-Cola and ATMs

Front 20

 Exclusive distribution.

Back 20

– Examples: Clothing and accessories from Gucci and yachts.

Front 21

 Selective distribution.

Back 21

Example: Dell.

Front 22

Channel conflict

Back 22

arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.

Front 23

Vertical conflict

Back 23

Occurs between different levels in a marketing channel, such as a manufacturer and a retailer.

Front 24

Disintermediation

Back 24

is channel conflict that arises when a channel member bypasses another member and sells or buys products direct.

Front 25

Horizontal conflict.

Back 25

Occurs between intermediaries at the same level in a marketing channel…

Front 26

What are the three questions marketing executives consider when choosing a marketing channel and intermediaries?

Back 26

The three questions to consider when choosing a marketing channel and intermediaries are: (1) Which will provide the best coverage of the target market?
(2) Which will best satisfy the buying requirements of the target market? (3) Which
will be the most profitable?

Front 27

What is meant by exclusive dealing?

Back 27

Exclusive dealing exists when a supplier requires channel members to sell only its products or restricts distributors from selling directly competitive products. It is specifically prohibited under the Clayton Act when it lessens competition or creates monopolies.

Front 28

Logistics

Back 28

involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.

Front 29

Logistics management

Back 29

is the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements.

Front 30

supply chain

Back 30

is a sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users.

Front 31

Supply chain management.

Back 31

Is the integration and organization of information and logistic activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to ultimate consumers.

Front 32

supply chain

Back 32

Is a series of linked suppliers and customers.

Front 33

Total logistics cost

Back 33

includes expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.

Front 34

customer service

Back 34

is the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

Front 35

Convenience

Back 35

means that there should be a minimum of effort on the part of the buyer in doing business with the seller, who must remove unnecessary barriers.

Front 36

Vendor-managed inventory (VMI)

Back 36

Is where the supplier determines the product amount and assortment a customer needs and…

c. Automatically delivers the appropriate items.

Front 37

Reverse logistics

Back 37

is a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.

Front 38

The choice of a supply chain involves what three steps?

Back 38

(1) Understand the customer. (2) Understand the supply chain. (3) Harmonize the supply chain with the marketing strategy.

Front 39

A manager’s key task is to balance which four customer service factors against which five logistics cost factors?

Back 39

The four customer service factors are time, dependability, communication, and convenience. The five logistics cost factors are transportation costs, materials handling and warehousing costs, inventory costs, stockout costs (being out of inventory), and order processing costs

Front 40

What is the principal difference between a marketing channel and a supply chain?

Back 40

A marketing channel consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. A supply chain differs from a marketing channel in terms of membership. It includes suppliers who provide raw materials to a manufacturer as well as the wholesalers and retailers—the marketing channel—that deliver the finished goods to ultimate consumers.