Marketing Management Ch. 11

Front 1

Value chain

Back 1

Synthesis of primary and support activities utilized by an org to design, produce, market, deliver, and support its products

Front 2

4 support activities in the value chain

Back 2

1. Firm infrastructure

2. HRM

3. Technology development

4. Procurement

Front 3

5 primary activities of the value chain

Back 3

1. Inbound logistics

2. Outbound logistics

3. Operations

4. Marketing and sales

5. Service

Front 4

Value network

Back 4

System of formal and informal relationships within the firm

Front 5

Value co creation

Back 5

Participation of suppliers, customers, and other stakeholders

Front 6

Network organization/ virtual organization

Back 6

Eliminates many in house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value

Front 7

Channel of distribution

Back 7

Consists of interdependent entities that are aligned for the purpose of transferring possession of a product from producer to consumer or business user

Front 8

Middleman

Back 8

Independent business entity that links producers and end user consumers or org buyers

Front 9

Merchant middleman

Back 9

Buys goods outright, taking title to them

Front 10

Agent

Back 10

Business entity that negotiates purchases, sales, or both but does not take title to the goods

Front 11

Manufacturer's agent

Back 11

Agent that usually operates on an extended contract, often sells them within an exclusive territory, handles noncompeting but related lines of goods, and has limited authority to price and create terms and sales

Front 12

Distributor

Back 12

Wholesale middleman, found esp with selective or exclusive distribution is common and strong promotional support is needed. Sometimes used simultaneously for a wholesaler

Front 13

Wholesaler

Back 13

Entity primarily engaged in buying, taking title to, storing and physically handling goods to retailers or org buyers

Front 14

Jobber

Back 14

Middleman that buys from manu and sells to retailers. The intermediary is sometimes called a rack jobber

Front 15

Facilitating agent

Back 15

Entity that assists in the performance of distribution tasks other than buying, selling, and transferring title

Front 16

Retailer

Back 16

Entity primarily engaged in selling to end user customers

Front 17

Intermediary process chain

Back 17

Manu--Agent--Wholesaler--Retailer--End user consumer

Front 18

Supply chain

Back 18

All org involved in supplying a firm, the members, and end users

Front 19

Breaking bulk

Back 19

Match quantities needed to space constraints and inv turnover requirements

Front 20

Accumulating bulk

Back 20

Take in product form multiple sources and transform it through SORTING

Front 21

Creating assortments

Back 21

Accumulate products from multiple sources and then make them available down the channel

Front 22

Reducing transactions

Back 22

Less channels needed to go through

Front 23

Transportation and storage

Back 23

Obvious

Front 24

3 functions of transaction and communications

Back 24

Selling, buying, and marketing communication

Front 25

4 facilitating functions

Back 25

Financing, market research, risk taking, and other services

Front 26

Disintermediation

Back 26

The shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, is common in the electronic channel

Front 27

Vertical marketing system (VMS)

Back 27

Vertically aligned networks behaving and performing as a unified system

Front 28

Corporate vertical marketing system

Back 28

Backward or forward vertical integration, control of other intermidiaries

Front 29

Contractual VMS

Back 29

Otherwise independent entities that are bound together legally through contractual agreement

Front 30

Administered VMS

Back 30

Sheer size and power of one of the channel members places in a position of channel control

Front 31

Channel power

Back 31

The degree to which any member of a marketing channel can exercise influence over the other members of the channel

Front 32

Channel conflict

Back 32

Can occur in which channel members experience disagreements and their relationship can become strained or even fall apart

Front 33

Coercive power

Back 33

Explicit or implicit threat that a channel captain will invoke negative consequences if request is not followed

Front 34

Reward power

Back 34

Big orders?

Front 35

Expert power

Back 35

Utilizing unique competencies over the competition

Front 36

Referent power

Back 36

Channel member is respected, admired, or revered based on one or more attributes

Front 37

Legitimate power

Back 37

Contracts such as franchisee agreements or other formal agreements

Front 38

3 considerations when selecting channel approaches

Back 38

1. What id the level of distribution intensity sought within the channel?

2. How much control and adaptability is required over the channel and its activities?

3. What are the priority channel functions that require investment?

Front 39

3 levels of distribution intensity (from high to low intensity)

Back 39

Intensive, selective, and exclusive

Front 40

4 things marketing managers must take into account when looking at channel control and adaptability

Back 40

Type of products, cost issues, accuracy of the sales forecast, and likelihood of major changes

Front 41

Push stategy

Back 41

Much of the intensive promotional activities take place form the manu downward through the channel of distribution

Front 42

Pull strategy

Back 42

Focuses much of its promotional investment on the end user consumer

Front 43

Logistics

Back 43

Physical distribution, the integrated process of moving input materials to the producer, in process inventory through the firm, and finished goods out of the firm through the channel of distribution

Front 44

Outbound logistics

Back 44

Internal flow going one direction

Front 45

Inbound logistics

Back 45

Sourcing materials and knowledge inputs from external suppliers to the point at which production begins

Front 46

Reverse logistics

Back 46

Hoe ti get the goods back to a manu or intermediary immediately after purchase

Front 47

Exclusive dealing

Back 47

Restrictive agreement that prohibits intermediaries that handle its products form handling competing firms products

Front 48

Exclusive territories

Back 48

Protects an intermediary form having to compete with others selling a producers goods

Front 49

Tying contracts

Back 49

Intermediary must purchase a supplementary product in order to qualify to purchase the primary product they wish to buy