Marketing Ch 15

Front 1

Value chain

Back 1

A series of activities directed at designing, producing, marketing, delivering, and supporting any product

Front 2

Supply chain

Back 2

All of the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer
Distribution channels are a subset of the supply chain
Logistics management deals with the process of actually moving goods through the supply chain

Front 3

Supply chain management

Back 3

The management of flows among the firms in a supply chain to maximize total profitability
Includes physical movement of and sharing of information about goods

Front 4

Insourcing

Back 4

Firms contract with a specialist that handles all or part of the company’s supply chains

Front 5

Channel of distribution

Back 5

The series of firms or individuals that facilitates the movement of a product from producer to final customer

Front 6

Supply chain links

Back 6

1.The supplier network provides raw materials and parts to the manufacturer
2.Firm manufactures a product
3.Products are sent to distribution channel for resale to buyers

Front 7

Channel intermediaries

Back 7

Firms or individuals such as wholesalers, agents, brokers, and retailers that help move the product from the producer to the consumer or business user

Front 8

Functions of Distribution Channels

Back 8

- Provide time, place, and ownership utility
- Provide logistics and/or physical distribution functions
- Create efficiencies by reducing the number of transactions

Front 9

Breaking bulk

Back 9

Purchasing large quantities of goods to sell one/few at a time to customers

Front 10

Creating assortments

Back 10

Providing variety of products in one location

Front 11

4 Functions of Distribution Channels

Back 11

- Transport and store goods
- Perform facilitating functions to make purchase process easier
- Provide setup, repair, and maintenance services for products carried
- Provide communication and transaction functions

Front 12

channel structures

Back 12

Consumer channels
Business-to-business channels
Dual distribution systems
Hybrid marketing systems

Front 13

4 Steps in Distribution Planning

Back 13

1. Develop distribution strategies
2. Evaluate internal and external evaluation strategies
3. Choose a distribution strategy
4. Develop distribution strategies

Front 14

3 Channel relationships

Back 14

Conventional, vertical, or horizontal system

Front 15

Conventional marketing system

Back 15

Members work independently of one another

Front 16

Vertical marketing system (VMS)

Back 16

Formal cooperation among channel members.
Administered VMS
Corporate VMS
Contractual VMS
Retailer cooperative
Franchise organizations

Front 17

Horizontal marketing system

Back 17

Two or more firms at the same channel level agree to work together to get their product to the customer

Front 18

Intensive distribution

Back 18

Selling through all suitable wholesalers or retailers

Front 19

Exclusive distribution

Back 19

Selling only through a single outlet in a region

Front 20

Selective distribution

Back 20

Using fewer outlets than intensive but more than exclusive distribution

Front 21

Channel leader/captain

Back 21

Dominant firm that controls the channel (via economic, legitimate, reward/coercive power)

Front 22

Logistics

Back 22

The process of designing, managing, and improving the movement of products through the supply chain

Front 23

4 components of logistics

Back 23

Purchasing
Manufacturing
Storage
Transporting

Front 24

Logistics

Back 24

Involves physical distribution (the activities used to move finished goods from manufacturers to final customers)

Front 25

Logistic functions include

Back 25

Order processing
Warehousing
Materials handling
Transportation
Inventory control

Front 26

6 ways in which Transportation modes differ

Back 26

Dependability (safety and punctuality)
Cost
Speed of delivery
Accessibility (different locations served)
Capability (variety of products handled)
Traceability (ability to locate goods in shipment)

Front 27

Inventory control

Back 27

Activities to ensure goods are always available to meet customers’ demands

Front 28

Radio frequency identification (RFID)

Back 28

Product tags with tiny chips containing information about the item’s content, origin, and destination