Channels and Supply Chain Management

Question 1

important functions of channels

Answer 1

1. Facilitating the exchange process by reducing the number of marketplace contacts necessary to make a sale.
2. Sorting- producers want to maximize quantities while buyers want to limit quantities. Sorting solves discrepancies by channeling products to suit both the buyer and the supplier’s needs.
3. Standardizing exchange reactions by setting expectations for products and involves the transfer process itself.
4. Facilitating channels of search by both buyers and sellers. Sellers attempt to learn what buyers want.

Question 2

direct channel

Answer 2

moving good directly from a producer to the purchaser.

Question 3

direct selling

Answer 3

strategy to establish direct contact between producer and final user.

Question 4

dual distribution

Answer 4

network that moves products to a firms target market through more than one marketing channel.

Question 5

reverse channels

Answer 5

channels for returning goods to their producers.

Question 6

factors that influence the selection of marketing channels

Answer 6

• Market factors
• Product factors
• Organizational and competitive factors

Question 7

Channel Conflicts

Answer 7

• Horizontal Conflict
• Vertical Conflict
• The Gray Market

Question 8

gray goods

Answer 8

products manufactured abroad but with license under a US firm.

Question 9

contractual systems

Answer 9

Retail cooperatives and franchises

Question 10

supply chain

Answer 10

complete sequence of suppliers and activities that contribute to the creation of delivery of merchandise.

Question 11

upstream management

Answer 11

controlling part of the supply chain. Involves raw materials, inbound logistics, and warehouse and storage facilities.

Question 12

downstream management

Answer 12

controlling part of the supply chain. Involves finished involves product storage, outbound logistics, marketing and sales, and customer service.