Chap 14*

Question 1

What is distribution?

Answer 1

movement of goods and services from producers to customers.

Question 2

Marketing (distribution) channel?

Answer 2

Network of individuals and organizations involved in getting a product or service from the producer to the customer.
- physical flow of goods and services from producer to customer

Question 3

Logistics?

Answer 3

coordinating the flow of information, goods, and services among members of the distribution channel

Question 4

Supply chain management?

Answer 4

control of the activities of purchasing, processing and delivery through which:
- raw materials are transformed into products and made available to final consumers

Question 5

*4 Functions of marketing channels:

Answer 5

1. Facilitating the exchange process by REDUCING the number of marketplace CONTACTS necessary to make sale.
   * 2. Adjusting for discrepancies in the market’s assortment of goods and services via SORTING.
2. STANDARDIZING EXCHANGE transactions by setting expectations for the products
   - payment terms, delivery, schedule, prices, etc
3. Facilitating searches by both buyers and sellers.

Question 6

Marketing intermediary?

Answer 6

organization that operates between producers and consumers or business users.
“middle man”

Question 7

Wholesaler?

Answer 7

Takes title to the goods it handles and distributes these goods to:
Retailers
Other distributors
End consumers

Question 8

Short marketing channel?

Answer 8

Business products
Service firms - sell intangible products and need to maintain personal relationships within their channels
Not-for-Profit organizations

Question 9

Direct channel

Answer 9

moves goods directly from producer to the business purchaser or ultimate user

Question 10

Internet and direct mail are important tools for what?

Answer 10

direct selling

Question 11

*What is the traditional channel for consumer goods?

Answer 11

producer > wholesaler > retailer > consumer

Question 12

What does an agent do?

Answer 12

brings buyer and seller together

may or may not take possession of goods but does NOT take title

Question 13

Manufacturers’ representative?

Answer 13

Agent wholesaling intermediary who represents manufacturers of related but noncompeting products and receives a commission on each sale

Question 14

Dual distribution?

Answer 14

movement of products through more than one channel to reach the firm’s target market

Question 15

Reverse channels?

Answer 15

• channels designed to return goods to their producers
  (recycling, prices are rising for raw materials so recycling is more popular, batteries, tires)
• used for recalls and repairs

Question 16

Table 14.1

Answer 16

. . .

Question 17

Number of _______ determines distribution intensity.

Answer 17

intermediaries

Question 18

Intensive Distribution?

Answer 18

through all available channels

Question 19

Selective Distribution?

Answer 19

through a limited number of channels

Question 20

Exclusive Distribution?

Answer 20

a single wholesaler or retailer

Question 21

3 Keys to successful management of channel relationships?

Answer 21

Coordination
Commitment
Trust between channel members

Question 22

Channel captain?

Answer 22

dominant and controlling member of a marketing channel

Question 23

Horizontal channel conflict?

Answer 23

disagreements among channel members at the same level. producer vs producer. retailer vs. retailer

Question 24

Vertical channel conflict?

Answer 24

occurs among members at different levels of the channel

Question 25

What is the gray market?

Answer 25

gray goods: products manufactured abroad under license from a US firm and then sold in the US market in competing against firms own output
- different agent selling JCrew at outlet prices

Question 26

Forward integration?

Answer 26

firm attempts to control downstream distribution

manufacturer set up retail chain

Question 27

Backward integration?

Answer 27

manufacturer attempts to gain greater control over inputs to production process

Question 28

*Which of the following is true of the role of distribution channels in a firms’ marketing strategy?

Answer 28

They standardize exchange transactions by setting expectations for products including the transfer process it self

Question 29

*Which of the following categories of organizations is most likely to have the longest distribution channel?

Answer 29

Firms producing nonperishable consumer goods

Question 30

*Which of the following is a marketing intermediary who may or may not take possession of the goods but never takes title?

Answer 30

Agent