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38 Cards in this Set
- Front
- Back
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place |
making goods and services available in the right quantities and locations, when customers want them |
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channel of distribution |
any series of firms or individuals who participate in the flow of products from producer to final consumer |
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direct marketing |
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling |
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discrepancy of quantity |
is the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want |
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discrepancy of assortment |
the difference between the lines a typical producer makes and the assortment final consumers or users want |
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regrouping activities |
adjusts the quantities or assortments of products handled at each level in a channel of distribution |
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accumulating |
involves collecting products from many small producers |
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bulk-breaking |
dividing larger quantities into smaller quantities as products get closer to their final market |
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sorting |
separating products into grades and qualities desired by different target markets |
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assorting |
putting together a variety of products to give a target market what it wants |
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traditional channel systems |
various channel members make little or no effort to cooperate with each other |
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channel captain |
a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts |
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vertical marketing systems |
channel systems in which the whole channel focuses on the same target market at the end of the channel |
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corporate channel systems |
corporate ownership all along the channel - we might say that the firm is going "DIRECT" |
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vertical integration |
acquiring firms at different levels of channel activity aka - small bars owned by breweries |
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administered channel systems |
channel members informally agree to cooperate with each other |
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cotractural channel systems |
channel members agree by contract to cooperate with each other |
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ideal market exposure |
makes a product available widely enough to satisfy target customer' needs but not exceed them |
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intensive distribution |
selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product |
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selective distribution |
selling through only those intermediaries who will give the product special attention |
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exclusive distribution |
selling through only one intermediary in a particular geograpghic area |
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multichannel distribution |
occurs when a producer uses several competing channels to reach the same target market perhaps using several intermediaries as well as direct selling |
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reverse channels |
channels used to retrieve products that customers no longer want |
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exporting |
selling some of what the firm produces to foreign markets |
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licensing |
means selling the right to use some process, trademark, patent, or other right for a fee or royalty |
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management contracting |
the seller provides only management and marketing skills -- others own the production and distribution facilities |
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joint venture |
domestic firm enters into a partnership with a foreign firm |
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direct investment |
a parent firm has a division (or owns a separate subsidiary firm) in a foreign market |
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Strategy "Place" decisions would not include: A) type of physical distribution facilities B) type of channel of distribution C) degree of market exposure desired D) distribution customer service level E) training programs for salespeople |
E) training programs for salespeople |
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The main reason a firm might want to use direct distribution instead of indirect is: A) intermediaries don't help producers succeed B) direct distribution allows full control over the marketing mix C) intermediaries don't serve useful purposes for producers D) producers can't coordinate marketing activities with wholesalers and retailers E) intermediaries are competitors against producers in a channel |
B) direct distribution allows full control over the marketing mix |
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Which of the following best illustrates adjusting "discrepancies of assortment?" A) General Motors makes Hummer for one product-market and Chevrolet for another product-market B) A hardware store sells all the hardware items wanted by most people C) Over 310 million U.S. consumers are served by around 330,000 manufacturers D) RCA sold more than 2,000,000 TVs last year E) Three firms produce over 60 percent of all the DVD players sold in the United States |
B) A hardware store sells all the hardware items wanted by most people |
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When an online intermediary like Hulu scans thousands of hours of programming each week and groups these programs into categories of digital programs (e.g. sports, crime, etc.), this is an example of: A) vertical integration B) sorting C) bulk-breaking D) assorting E) licensing |
B) sorting |
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Traditionally, producers in the United States have taken on the role of channel captain. This is changing because: A) direct selling over the Internet is replacing traditional channels of distribution B) producers are selling less product due to the economic downturn C) retail giants like Walmart sell large quantities of product to final customers, shifting power away from the producer and toward retailers D) increased cooperation has eliminated the need for a channel captain E) distribution channels no longer require leadership |
C) retail giants like Walmart sell large quantities of product to final customers, shifting power away from the producer and toward retailers |
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Burger King's franchising operations is a type of: A) traditional channel B) administered channel C) contractual channel D) corporate channel E) direct channel |
C) contractual channel |
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From a producer's viewpoint, which of the following is an advantage of intensive distribution over selective distribution? A) Intermediaries' price-cutting may be reduced B) Intermediaries' facilities will be more convenient for customers C) Intermediaries can be required to carry larger stocks D) More aggressive selling can be expected from intermediaries E) Better service can be required from intermediaries |
B) Intermediaries' facilities will be more convenient for customers |
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A producer that is selling products to consumers through a retailer as well as directly over the Internet is engaging in: A) selective distribution B) reverse distribution C) multichannel distribution D) exclusive distribution E) vertical integration |
C) multichannel distribution |
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Which of the following is typically the lowest risk approach for moving into international markets?A) Licensing B) Exporting C) Joint venturing D) Direct investment E) Management contracting |
B) Exporting |
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Jolly Rogers Resorts is based in the United States. It has opened two locations in Mexico whereby Jolly Rogers provides management and marketing skills to owners in Mexico that own the resort facilities. Jolly Rogers Resorts is expanding into international markets using which approach? A) Exporting B) Licensing C) Management contracting D) Joint venture E) Direct investment |
D) Joint venture |
