7 Flashcards
value chain
- the connected chain of all business entities, both internal and external to the company that perform or support the logistics function (aka supply chain)
- part marketers care less about
- every action from raw goods to customer has it
marketing channel
- a set of interdependent orgs that facilitate the transfer of ownership as pdts move from producer to business to business user
- marketer are involved in this
- looks forward to end customer
supplier network
the firm point in looking back ward to make raw materials
what kind of value can be created through the marketing channel?
- brand status can be matched to where you buy from (Walmart v apple)
- connivence
- service
channel alternatives? vertical or horizontal? what is it made up of?
- these all go from supplier → end consumer
- distributor/wholesaler → retailer
- job/broker →retailer
- retailer
- suppliers own sale and distribution (drect end consumer are buying directly from supplier
channel alternatives for consumer products
direct channel
retailer channel
wholesaler channel
agent/broker channel
- producer → consumer
- producer → retailer→consumer
- producer→wholesaler→retailer→consumer
- p →job/broker→wholesaler→ retailer →consumer
retailer
- sells product to end consumers through a bunch of different ways (online/grocery stores)
- take title to goods
distributor/wholesaler
sells products to retailers or business end users
- they own and take physical control of inventory
- promote products. and arrange fincnacing ordering with custoemrs
- take title to goods
jobber/broker
specialized agents hired by supplier or manufacture that focuses o a particular customer segment
- they sell and are compensatedthrough commisio fees
- do not take title to goods
what are the three marketing channel benefits ?
- specialization and division of labor
- overcoming discrpeancies
- providing contact effieceny
what is specialization and division of labor? what can it do ?
- lets us focus on what we prefer to do and what we do best, and the others will do the other activities that we do bad at
creates greater efficacy - provides lower costs
- achieves econmies of scale
- aids producers who lack resources to market directly
- builds good relationships with customers
what are the four types of discrepancies?
- quantity:
- assortment
- temporal
- spatial
discrepancy of quantity?
quantity: the difference between the amount produced and the amount the end user wants to buy
- suppliers want to make a lot. but customers buy only one and to fix this distributors buy a lot
discrepancy of assortment
- the lack of all the items a customer needs to receive full satisfaction from a product
- it needs to carry everything for a project or full assortemt across a lot of vendors to choose the right one
- Discrepancy of assortment refers to the absence of all necessary items for complete customer satisfaction from a product. It occurs when a store fails to stock all the required items for a project or a comprehensive assortment, compelling customers to visit multiple vendors to fulfill their needs.
temporal discrepancy
a situatoin occurs when a prodcut is produced but a customer is not ready to buy it
- produce all year long but some imteams are seasonal (bathing suits)
