Mktg - Chapters 14 & 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

Intermediary

Back 2

Any inbetween for manufacturer and end user

Front 3

6 Types of Intermediaries

Back 3

Intermediary
Agent or broker
Wholesaler
Retailer
Distributor
Dealer

Front 4

How do intermediaries make selling goods more efficient?

Back 4

They minimize the number of sales contacts necessary to reach the target market

Front 5

Functions performed be intermediaries?

Back 5

1. Transactional Function
2. Logistical Function
3. Facilitating Function

Front 6

Transactional Function

Back 6

Buying, selling, risk taking

Front 7

Logistical Function

Back 7

Assorting (creating product assortment)
Storing
Sorting
Transporting

Front 8

Facilitating Function

Back 8

Financing (credit to customers)
Grading
Marketing info and research

Front 9

2 Types of marketing channels

Back 9

Direct - producer and ultimate consumer deal with each other directly

Indirect - intermediaries are inserted between producer and consumer (perform numerous channel functions)

Front 10

Business Distributor

Back 10

Performs variety of functions including selling, stocking, delivering and financing

Front 11

Electronic Marketing Channels

Back 11

Employ the internet to make goods and services available for consumption or use online

Front 12

DIrect Marketing Channels

Back 12

allow consumers to buy products by interacting with various advertising media without face to face meeting with a sales person

Front 13

Multichannel Distribution

Back 13

An arrangement where a firm reaches buyers by employing two or more different types of marketing channels
Common at manufacturing and retail levels

Front 14

Strategic Channel Alliances

Back 14

Where one firms marketing channel is used to sell another's products
Popular in global marketing because creation of new channels is expensive

Front 15

Merchant Wholesalers

Back 15

Indepedantly owned firms that take title to the merchandise they handle

Front 16

General Merchandise Wholesaler

Back 16

Carry a broad assortment of merchandise and perform all channel functions

Front 17

Specialty Merchandise Wholesalers

Back 17

Offer a narrow range of products but have lots of assortment in the product lines carried

Front 18

Factors that affect channel choice

Back 18

Environmental - The changing environment
Consumer - Consumer characteristics
Product - Sophisticated or unsophisticated product?
Company - Firms financial, human, or technological capabilities

Front 19

Channel Design Considerations

Back 19

1. Which channel and intermediaries will provide the best coverage of the target market?
2. Which channel and intermediaries will best satisfy the buying requirements of the target market?
3. Which channel and intermediaries will be most profitable?

Front 20

3 Types of Vertical Marketing Systems

Back 20

Corporate
Contractual
Administered

Front 21

Corporate systems

Back 21

The combo of successive stages of production and distribution under a single ownership
Used to achieve channel efficiencies and marketing effectiveness

Front 22

Contractual systems

Back 22

Independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone

Front 23

Administered systems

Back 23

achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership

Front 24

Logistics management

Back 24

Organizing cost effective flow of goods from point of origin to point of consumption, satisfying customer requirements

Front 25

Supply Chain

Back 25

Sequence of firms that perform activities required to create and deliver a good or service to consumers and industrial users

Front 26

Supply chain management

Back 26

Integration and organization of info and logistics activities across firms in a supply chain for the purpose of creating and delivering goods/services that provide value to the customer

Front 27

3 steps to align supply chain with marketing strategy

Back 27

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

Front 28

5 Types of Transportation

Back 28

Rail
Truck
Air
Pipeline
Water

Front 29

Rail

Back 29

Pros - full capability, extensive routes, low cost
Cons - reliability/damage problems, not always complete pick up/delivery, sometimes slow

Front 30

Truck

Back 30

Pros - Complete pickup/delivery, extensive routes, fairly fast
Cons - Size and weight restrictions, higher cost, more weather sensitive

Front 31

Air

Back 31

Pros - Fast, low damage, frequent departures
Cons - High cost, limited capabilities

Front 32

Pipeline

Back 32

Pros - Low cost, reliable, frequent departures
Cons - Limited routes, slow

Front 33

Water

Back 33

Pros - low cost, huge capacity
Cons - slow, limited routes/schedules, weather sensitive

Front 34

Retailing

Back 34

activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family or household use

Front 35

Types of Retailers

Back 35

Independent Retailer - most common, indie business owned by individual
Corporate Chain - multiple outlets under common ownership
Contractual System - independently owned stores that band together and act like a chain

Front 36

6 Types of Non Store Retailing

Back 36

Automatic vending
Direct mail and catalogues
Television home shopping
Online retailing
Telemarketing
Direct Selling