Channels, Supply Chains, and Retailing

Question 1

What are channels in the context of marketing

Answer 1

Chains of organizations concerned with moving goods from producers and manufacturers to end users. Like supply chains in third person

Question 2

What types of intermediaries are there

Answer 2

agents, merchants, distributors, franchisers, wholesalers, and retailers

Question 3

How do intermediaries create value

Answer 3

They reduce uncertainty and promote efficiency

Question 4

Name the three main channel structures

Answer 4

Direct, indirect and multi channel

Question 5

What is a direct channel structure

Answer 5

Selling direct to consumer

Question 6

Explain an indirect channel structure

Answer 6

Selling to an intermediary like a swine farmer sells to a butchery that then sells to a retailer that in turn sells to the customers

Question 7

Explain a multichannel structure

Answer 7

selling to both end users and intermediaries

Question 8

What are the tradeoffs between direct and indirect channel structures

Answer 8

Direct trade control and share of end price for lesser coverage, the opposite is true for indirect.

Question 9

What are the cons of a multichannel approach

Answer 9

Greater conflicts within the channels as intermediaries view you as a competitor

Question 10

What should you think about when structuring marketing channels

Answer 10

What coverage is desired, what number and type of intermediaries should be involved and how the relationship with channel members should be managed

Question 11

What are retailers

Answer 11

The final downstream component of a supply chain that sells directly to consumers

Question 12

What risks do intermediaries alleviate

Answer 12

risk of storage, the risk of over and under production, the risk of changing suppliers, the risk of producing to late and to early, the risk of changing buyer behavior and of finance

Question 13

What benefits do intermediaries provide outside risk reduction

Answer 13

Reducing complexity in supply chains, creating routines and standards as well as allowing businesses to specialize more (produce large quantities of a small number of products)

Question 14

What does it mean that retailers offer a place, time, information and ownership utility

Answer 14

That they sell at a more convenient place than the place of production, they sell at times customers want to buy and present the end users with only the information they need

Question 15

What are agents or brokers

Answer 15

Intermediaries that bring together sellers and buyers

Question 15

Name some aspects of sorting and smoothing regarding intermediaries

Answer 15

Sorting out aka sorting products into different categories; Accumulation to provide more choices; Allocation or breaking bulk which means to divide bulk purchases into smaller sell-able batches; and Assorting aka assembling collections that are of value to consumers

Question 16

what is a merchant

Answer 16

An agent that takes ownership of a product they intend to sell

Question 17

What are distributors or dealers

Answer 17

They provide inventory sale, credit and after-sale services. They also sometimes trade directly with customers such as car distributors

Question 18

What is a franchise

Answer 18

Owners of intellectual property of a standard that consumers know and trust

Question 19

What are wholesalers

Answer 19

They stock goods and takes legal possession and title over the goods before they are sold to retailers “gross handel”

Question 20

What are informaries

Answer 20

Information intermediaries such as google and price runner

Question 21

How do you improve efficiency within the direct channel structure

Answer 21

By processing orders electronically and by supporting the physical delivery yourself

Question 22

What is channel intensity or coverage

Answer 22

The number and dispersion of outlets an end user can use to buy an offering. Different stores/online maybe?

Question 23

Explain intensive channel distribution

Answer 23

Place the offering in as many outlets as possible, popular for impulse goods, gives up a lot of control to the retailors who can put yours and the competitors yoghurt where thy want. Companies often start out intensive to create awareness.

Question 24

explain selective channel distribution

Answer 24

Limit the numbers of cahnnels when consumers are willing to seek out the offering as they face at least medium risk. Common when buying electronics (finding stuff at cdon and buying at elgiganten).

Question 25

Explain exclusive channel distribution

Answer 25

When only one is given the right to distribute with in a territory. Common in prestige goods where control is desired or service arangements are complex. Prices also tend to be more stable here

Question 26

What is disintermediation

Answer 26

Reducing the number or strength of intermediaries replace them or eliminate them

Question 27

There is a trend of re intermediation with digitization

Answer 27

Yes and no, firms can sell directly more easily but intemediaries are still largely appreciated and new intermediaries are being integrated such as platforms and comparison sites

Question 28

Explain horizontal and vertical conflict in a channel

Answer 28

Conflicts between retailers f.ex and conflict between supplier and retailor

Question 29

What is gray marketing

Answer 29

Unauthorized selling of branded products derived from authorized sources without the knowledge of the manufacturer. A common source of conflict but not illegal

Question 30

What activities are included in supply chain management

Answer 30

fulfillment, transportation, stock management and warehousing

Question 31

What are the goals of supply chain management

Answer 31

Waste reduction, time compression, flexible responsiveness, unit cost reduction

Question 32

What is fulfillment

Answer 32

material handling aka locating, picking and packaging stock before sending it to the next channel memeber

Question 33

does transportation have to be physical

Answer 33

No it can also be electronic

Question 34

What is stock management

Answer 34

Balancing between responsiveness to customer needs and the cost of holding stock, can be assisted by just in time delivery systems

Question 35

Explain warehousing and material handling

Answer 35

Taking care of the facilities facilitating the storage and distribution of goods

Question 36

What are the four key pillar of convenience for customers

Answer 36

access, search, possession and transaction aka is it easy to reach, identify, obtain and pay

Question 37

What is the difference between supermarkets and department stores

Answer 37

market operate on a more self service basis while department stores provide more customer service

Question 38

Explain some less conventional types of retailing

Answer 38

Telemarketing, online retail, electronic kiosks, door to door sales and vending machines