Mrkt 3001 - Ch 13

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

Multichannel marketing

Back 2

involves the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online

Front 3

Dual distribution

Back 3

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

Front 4

Vertical marketing systems

Back 4

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact

Front 5

Intensive distribution

Back 5

a level of distribution density whereby a firm tries to place its products and services in as many outlets as possible

Front 6

Exclusive distribution

Back 6

a level of distribution density whereby only one retail outlet in a specific geographical area carries the firm's products

Front 7

Selective distribution

Back 7

a level of distribution density whereby a firm selects a few retail outlets in a specific geographical area to carry its products

Front 8

Channel conflict

Back 8

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

Front 9

Disintermediation

Back 9

involves channel conflict that arises when a channel member by passes another member and sells or buys products direct

Front 10

Logistics

Back 10

consists of 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 11

supply chain

Back 11

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

Front 12

Total logistics cost

Back 12

consists of expenses associated with transportation, materials handling and warehousing, inventory, stockouts, order processing, and return goods handling

Front 13

Customer service

Back 13

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

Front 14

Vendor managed inventory

Back 14

an inventory-management system whereby the supplier determines the product amount and assortment a customer needs and automatically delivers the appropriate items

Front 15

contractual vertical marketing system

Back 15

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 16

wholesaler sponsored voluntary chains

Back 16

contractual system that involves a wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs and inventory management efforts

Front 17

retailer sponsored cooperatives

Back 17

contractual systems that are small, independent retailers from an organization that operates a wholesale facility cooperatively

Front 18

manufacturer sponsored retail franchise system

Back 18

a franchise system that is prominent in the automobile industry, where a manufacturuer licenses dealers to sell its cars subject to various sales and service conditions

Front 19

manufacturer sponsored wholesale system

Back 19

a system that exists in the soft drink industry, where a company (like pepsi) licenses wholesalers (bottlers) that purchase concentrate from pepsi to bottle, promote, and distribute its products

Front 20

service sponsored retail franchise system

Back 20

franchise systems provided by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others

Front 21

Service-sponsored franchise systems

Back 21

franchise systems that exist when franchisers license individuals or firms to dispense a service under a trade name and specific guidelines

Front 22

administered vertical marketing system

Back 22

system that achieves coordination at successive stages of production and distribution by the size and influence of once channel member rather than though ownership

Front 23

vertical conflict

Back 23

channel conflict that occurs between different levels in a marketing channel (ex. between a manufacturer and a wholesaler or retailer)

Front 24

horizontal conflict

Back 24

channel conflict that occurs between intermediaries at the same level in a marketing channel

Front 25

when different types of retailers carry the same brands

Back 25

when does dual distribution create channel conflict?

Front 26

1) economic
2) expertise
3) identification with a particular channel member
4) the right to direct others behaviors

Back 26

a firm becomes a channel captain because of these four influences

Front 27

logistics management

Back 27

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 consumer requirements

Front 28

supply chain management

Back 28

the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers

Front 29

1) Middle men
2) Retailer
3) Wholesaler
4) Agent or Broker
5) Distributor
6) Dealer

Back 29

Name the 6 types of intermediaries

Front 30

Dealer

Back 30

An even more imprecise term that can mean the
same as distributor, retailer, wholesaler, and so
forth

Front 31

Distributor

Back 31

An imprecise term, usually used to describe
intermediaries who perform a variety of
distribution functions, including selling,
maintaining inventories, extending credit, and so
on; a more common term in industrial markets
but may also be used to refer to wholesalers

Front 32

Retailer

Back 32

An intermediary who sells to consumers

Front 33

Wholesaler

Back 33

An intermediary who sells to other intermediaries,
usually to retailers; usually applies to consumer
markets

Front 34

Middle men

Back 34

Any intermediary between manufacturer and end-user
markets

Front 35

Agent or Broker

Back 35

Any intermediary with legal authority to act on
behalf of the manufacturer

Front 36

1 ) Transactional function

2) Logistical function

3) Facilitating function

Back 36

3 functions of intermediaries

Front 37

- buying

- Selling

- Risk taking (ownership of inventory)

Back 37

Activities related to Transactional functions

Front 38

- assorting
-storing
- sorting
- transporting

Back 38

Activities related to Logistical functions

Front 39

- marketing info and research
- financing
- grading

Back 39

Activities related to Facilitating functions

Front 40

Direct Channel

Back 40

When a producer and the ultimate consumer deal directly with each other

Front 41

Indirect Channel:

Back 41

when intermediaries are inserted between the producer and consumers and perform numerous channel functions.

Front 42

Producer
↓
agent
↓
wholesaler
↓
retailer
↓
Ultimate consumers

Back 42

Recall the flow of channels for (consumers)

Front 43

producer
↓
agent
↓
industrial distributor
↓
industrial user

Back 43

Recall the flow of channels for (Business goods and services)

Front 44

industrial distributor

Back 44

performs a variety of marketing channel functions, including selling, stocking, and delivering a full product assortment and financing.

- are like wholesalers in consumer channels.

Front 45

electronic marketing channels

Back 45

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

Front 46

Direct marketing channel

Back 46

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

Front 47

Direct marketing channel

Back 47

includes mail-order selling, direct- mail sales, catalog sales, telemarketing, interactivemedia, and televised home shopping.

Front 48

Strategic channel alliances

(starbucks → kraft → supermarkets)

Back 48

are a recent innovation in marketing channels, whereby one firm’s channel is used to sell another firm’s products.

Front 49

1) corporate

2) contractual

3) Administered

Back 49

3 major types of vertical marketing system

Front 50

corporate vertical marketing system

Back 50

The combination of successive stages of production and distribution under a single ownership

Front 51

forward integration

Back 51

when a producer owns the intermediary at the next level down in the channel

Front 52

Backward intergation

Back 52

when a retailer owns a manufacturing operation

Front 53

Contractual vertical Marketing system

Back 53

most popularamong the three types of vertical marketing systems, accounting for about 40% of all retail sales.

Front 54

Franchising

Back 54

contractual arrangement between a parent company and an individual or firm that allows the firm to operate a certain type of business under an established name according to specific rules

Front 55

1) Manufacturer-Sponsored retail franchise systems

2) Manufacturer-Sponsored wholesale systems

3) Service-Sponsored retail franchise systems

4) Service-Sponsored franchise systems

Back 55

Name the types of franchising

Front 56

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 the most profitable.

Back 56

Marketing executives typically consider three questions when choosing a marketing channel and intermediaries:

Front 57

1. Vertical Conflict

2. Horizontal Conflict

Back 57

Types of Conflict in Marketing Channels

Front 58

Channel Captain

Back 58

a channel member that coordinates,directs, and supports other channel members.

-can be producers, wholesalers, or retailers.

Front 59

flow

Back 59

moving a product from the source of raw materials to consumption

Front 60

1) flow of the product

2) has to be cost effective

3) customer service

Back 60

3 elements of logistics

Front 61

chain manager

Back 61

who is responsible for translating customer requirements into orders, arrangements delivery dates, and making financial arrangements.

Front 62

cross docking

Back 62

a practice that involves unloading products from suppliers, sorting products for individual stores, and quickly reloading products onto its trucks for a particular store.

Front 63

order cycle

or

replenishment time

Back 63

the time between the ordering of an item and when it is received and ready for the use or sale.