Distribution - Real People Real Choices - Ch12

Front 1

Supply chain

Back 1

all activiies necessary to turn raw materials into a good or service and put it in the hands of the consumer

Front 2

Supply chain management

Back 2

manage flows among firms in the supply chain

Front 3

Insourcing

Back 3

a company contracts with a specialist to handle all or part of its supply chain operations

Front 4

Channel of distribution

Back 4

series of firms or individuals that facilitiates the movement of a product from producer to final custonmers

Front 5

Why are middleman essential?

Back 5

they break bulk and so have less transactions (transaction costs)

Front 6

What functions do the producers have to do in distribution channel

Back 6

logistics, efficiency, facilitating

Front 7

Channel intermediaries

Back 7

firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. (middleman)

Front 8

Breaking bulk

Back 8

dividing larger quantities of goods into smaller lots to meet needs of buyers

Front 9

Creating assortments

Back 9

provides a variety of products in one location to meet needs of buyers

Front 10

Facilitating functions

Back 10

functions of channel intermediaries that make the purcahse process easier for customers and manufacturers

Front 11

Disintermediation (of the channel of distribution)

Back 11

elimination of some layers in the channel of distribution to cut costs and improve efficiency

Front 12

Knowledge management

Back 12

approach to collecting, organizing, storing and retrieving a firm's information assets

Front 13

Online distribution piracy

Back 13

theft of unauthorized re purposing of intellectual property via the internet

Front 14

Logistics

Back 14

process of designing, managing, and improving movements of products through supply chain. (incl. purchasing, manufacturing, storage, transport)

Front 15

Physical distribution

Back 15

move finished goods from manufacturers to final customers, including order processing, warehousing, marials handling, transportation, and inventory contorl

Front 16

Order processing

Back 16

series of activities that occurs between time and order come to organization and time a product goes out the door

Front 17

Enterprise resource planning (ERP) systems

Back 17

software system where info from across entire company, including finance, order fulfillment, manufacturing, and transportation and then facilitates sharing of data through firm

Front 18

Warehousing

Back 18

storing goods in anticipation of sale or transfer to another member of channel of distribution

Front 19

Materials handling

Back 19

moving of products into and out of warehouses

Front 20

Transportation

Back 20

mode by which products move among channel members

Front 21

Inventory control

Back 21

activities to ensure that goods are always available to meet customer demands

Front 22

Radio frequency identification (RFID)

Back 22

product tags with tiny chips containing info on itme's content origin and destination

Front 23

Just in time (JIT)

Back 23

inventory managment and puchasing process where manufacturers and resellers use to reduce inventory to very low levels to ensure the delivieries arrive only when needed

Front 24

Wholesaling intermediaries

Back 24

firms the handle flow of products form manufacturer to retailer or business user

Front 25

Independent intermediaries

Back 25

channel intermediaries not controlled by any manufacturer but isntead to do business with many different menufacturers and many customers

Front 26

Merchant wholesalers

Back 26

Intermediaries that buy from manufacturers (take title ) and sell to retailers and other b2b

Front 27

Take title

Back 27

accept legal ownership of a product (rights & responsibility)

Front 28

Merchandise agents or brokers

Back 28

channel intermediaries that provide services in exchange for commision but never take title of the product

Front 29

Does MLM make sense?

Back 29

no, instead of selling product they are actually just recruiting agents

Front 30

Channel Levels

Back 30

number of categories of intermediaries that populate a channel of distribution

Front 31

Hybrid Marketing System

Back 31

system that uses a number of different channels and communication methods to serve a target market

eg. using direct (nike store, nike site) indirect(, walmart,)

Front 32

Channel Width and the 3 types

Back 32

Number of retail points. Intensive (convenience), Selective (shopping), Exlcusive (specialty)

Front 33

What factors determine channel width?

Back 33

company, customers, competition

Front 34

Channel Length

Back 34

number of levels in supply chain

Front 35

Steps in Ditribution Planning (4)

Back 35

1. Develop distribution objectives
2. evaluate internal and external envirnmental influences
3. choose distribution strategy
4. develop distribution tactices

Front 36

Conventional marketing system

Back 36

multi-level distribution channel where each member works independently

Front 37

Vertical marketing system

Back 37

formal cooperation b/t levels of manufacture, wholesale, and retail

eg. Macy's owns their network of distribution centers and retail stores

Front 38

Horizontal marketing system

Back 38

channel of distribution with 2 or more firms at same channel level work together

eg. ameriacan airlines has a number of alliances like JAL, British Airways

Front 39

Intensive distribution

Back 39

selling a product though all suitable wholesales or retailers willing to stock and sell the product

Front 40

Exclusive distribution

Back 40

selling a product only thorough a single outlet in a region

Front 41

Selective distribution

Back 41

distribution using fewer outlets than intensive distribution but mroe than exclusive distribution

Front 42

Channel leader

Back 42

firm at one level of distribution takes a leadership role and establishes operating norms based on its power relative to other channel members