Marketing Ch. 13

Front 1

Individuals or firms involved in making a service or product for consumers or industrial (business) users

Back 1

Marketing channels

Front 2

How do intermediaries create value (2 things)?

Back 2

1.) Bring buyers and sellers together
2.) Efficiently minimize number of contacts necessary in the market place.

Front 3

3 intermediary functions

Back 3

1.) Transactional
2.) Logistical
3.) Facilitating

Front 4

3 characteristics of transactional intermediaries

Back 4

1.) Buy, sell, and take risks
2.) Stocking merchandise in anticipation of sales
3.) Seller does not have to buy merchandise back from intermediary

Front 5

3 actions of logistical intermediaries

Back 5

1.) Gather products
2.) Store products
3.) Disperse products

Front 6

Assist producers in making products and services more attractive to buyers

Back 6

Facilitating intermediaries

Front 7

3 methods of facilitating as an intermediary

Back 7

1.) Offering lines of credit
2.) Package goods in various sizes
3.) Inspecting and issuing quality grades (e.g. B+)

Front 8

4 kinds of utility that intermediaries create

Back 8

1.) Time utility
2.) Place utility
3.) Possession utility
4.) Form utility

Front 9

2 goals of marketing channels

Back 9

1.) Efficiency (low cost)
2.) Effectiveness (make product available)

Front 10

4 kinds of marketing channels

Back 10

1.) Direct
2.) Indirect
3.) Electronic
4.) Industrial

Front 11

Marketing channel in which produer deals directly with the ultimate customer (e.g. Apple orchards have roadside stands selling apples)

Back 11

Direct channels

Front 12

Marketing channel in which intermediaries are present (e.g. Apple orchards sell apples to wholesalers to sell to distributors who sell to grocery stores who sell to customers)

Back 12

Indirect channels

Front 13

Marketing channel in which intermediaries operate online; can fail to confer time utility because of shipping

Back 13

Electronic channels

Front 14

4 characteristics of industrial marketing channels

Back 14

1.) Shorter than consumer channels
2.) Few industrial buyers
3.) More concentrated geographically
4.) Purchase larger amounts

Front 15

Firm uses multiple channels simultaneously to reach different buyers

Back 15

Dual distribution

Front 16

Most typical branding strategy paired with dual distribution

Back 16

Multibranding (because similar products have different brand names sold through different outlets)

Front 17

Configurations in which one firm's marketing channel is used to sell another firm's products

Back 17

Strategic channel alliances

Front 18

6 considerations in determining the best marketing channel

Back 18

1.) Environment
2.) Product
3.) Profitability
4.) Company (Internals)
5.) Consumers (market)
6.) Coverage

Front 19

3 kinds of appropriate coverage in determining the best marketing channel

Back 19

1.) Intensive
2.) Selective
3.) Exclusive

Front 20

4 characteristics of vertical channel conflict

Back 20

1.) Between different levels within the channel
2.) Disintermediation (members bypass levels)
3.) Distribution varies
4.) Manufacturers think wholesalers/retailers aren't providing enough attention

Front 21

3 characteristics of horizontal channel conflict

Back 21

1.) Between intermediaries at the same level (e.g. 2 retailers)
2.) Increased geographic distribution
3.) Different types of retailers have the same product (e.g. Macy's and Sears selling same "high quality" product)

Front 22

Organizing all the information/activities of all firms involved with the final product to create and deliver goods/services to customers

Back 22

Supply chain management

Front 23

Difference between a supply chain and a distribution channel

Back 23

Supply chain is looking backward to raw materials, whereas distribution channels are looking forward to getting finished goods to customers.

Front 24

3 steps to developing a supply chain

Back 24

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

Front 25

5 total logistics cost factors

Back 25

1.) Transportation
2.) Materials handling and warehousing
3.) Order processing
4.) Stockout
5.) Inventory

Front 26

4 customer service factors

Back 26

1.) Time
2.) Dependability
3.) Communication
4.) Convenience