Chapter 10 Flashcards
Supply chain
A system of efficiently and effectively producing, making and getting products to end-users
Supply chain management
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers and final consumers
Marketing logistics (physical distribution)
The tasks involved in planning, implementing and controlling the physical flow of materials and final goods from points of use to meet the needs of customers at a profit
Value delivery network
The company, suppliers, distributors and ultimately, customers who ‘partner’ with each other to improve the performance of the entire system
Services marketing logistics
Coordinating non-material activities needed to provide a service in a cost-effective way and with the quality expected
Supply chain trade-offs
The trade-offs in costs areas involved when deciding on the service level the organisation will offer customers
Distribution centre
Large and highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to the retail owner of the centre as quickly as possible
Intermodal transportation
Combining two or more modes of transportation
Marketing channel (distribution channel)
A set of interdependent organisations involved in the process of making a product or service available to users
Channel levels
A layer of intermediaries who perform some work in bringing the product and its ownership closer to the final buyer
Direct marketing channel
A marketing channel that has no intermediary levels
Channel conflict
Disagreements among marketing channel members on goals, roles and rewards - that is, on who should do what and for what rewards
Conventional marketing channel
A channel consisting of one or more independent producers, wholesalers and retailers, each a separate business seeking to maximise its own profits, perhaps even at the expense of profits for the system as a whole
Vertical marketing network
A distribution channel structure in which producers, wholesalers and retailers act as a unified network; one channel member owns the others, has contracts with them, or wields so much power that they all cooperate
Corporate vertical marketing network
A vertical marketing network that combines successive stages of production and distribution under single ownership; channel leadership is established through common ownership
Contratual vertical marketing network
A vertical marketing network in which independent firms at different levels of production and distribution join together through contracts
Administered vertical marketing network
A vertical marketing network that coordinates successive stages of production and distribution, not through common ownership or contractual ties but through the size and power of one of the parties
Horizontal marketing network
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
Multichannel distribution network
A multi channel distribution system in which a single firm sets up two or more marketing channels to reach one or more marketing segments
Disintermediation
The removal of marketing channel intermediaries by goods or services producers, or the displacement of traditional resellers by new and different types of intermediaries
Retailing
All activities involved in selling goods or services directly to final consumers for their personal use, non-business use
Retailer
A business whose sales come primarily from retailing
Shopper marketing
Using point-of-sale promotions and advertising to extend brand equity to ‘the last mile’ and encourage favourable in-store purchase decisions
Self-service retailer
A retailer that provides few or no services to shoppers; shoppers perform their own locate-compare-select process
Category killer
A giant speciality store that carries a very deep assortment of a particular line
Limited-service retailer
A retailer that provides only a limited number of services to shoppers
Full-service retailer
A retailer that provides a full range of services to shoppers
Speciality store
A retail store that carries a narrow product line with a deep assortment within that line
Combination store
A combined grocery and general merchandise store
Department store
A retail organisation that carries a wide variety of product lines, typically clothing, home furnishings and household goods, each line is operated as a separate department managed by specialist buyers or merchandisers
Supermarket
A large, low-cost, low-margin, high-volume, self service store that carries a wide variety of food, laundry and household products
Convenience store
A small store, located near a residential area, open long hours seven days a week, carrying a limited line of high-turnover convenience goods
Mass merchant
A type of store carrying a large assortment of merchandise such as hardware (Bunnings Warehouse), electrical goods (Harvey Norman), or personal and health care (Priceline)
Superstore
A store almost twice the size of a regular supermarket carrying a large assortment of routinely purchased food and non-food items, and offering such services as dry cleaning, photo developing, cheque cashing, bill paying, car care and pet care
Hypermarket
A huge store that combines supermarket, discount and warehouse retailing; in addition to food, it carries furniture, appliances, clothing and many other items
Service business
A business where the product line is actually a service - for example, hotels, motels, airlines and restraunts
Discount store
A retail institution that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume
Off-price retailer
A retailer that buys at less than regular wholesale prices and sells at less than retail, usually carrying a changing and unstable collection of high-quality merchandise, often leftover goods
Direct factory outlet
An off-price retailing operation owned and operated by manufacturers, normally carrying the manufacturers surplus, discounted or irregular goods
Warehouse club
An off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing and a hodgepodge of other goods at deep discounts to members who pay an annual membership fee
Chain stores
Two or more outlets that are commonly owned and controlled, employ central buying and merchandising, and sell similar lines of merchandise
Voluntary chain
A wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising
Retailer cooperative
A contractual vertical marketing network in which retailers organise a new, jointly owned wholesale business
Franchise
A contractual association between a manufacturer, wholesaler or service organisation (a franchisor) and independent business people (franchisees) who buy the right to own and operate one or more units in the franchise system
Central business district
The area of business at the heart of a city or town
Shopping centre
A group of retail businesses planned, developed, owned and managed as a unit
Strip shopping centre
A group of retail businesses located along an arterial road
Wheel of retailing concept
A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced
Wholesaling
All activities involved in selling goods and services to those buying for resale or business use
Wholesaler
A firm engaged primarily in wholesaling activity
Merchant wholesaler
An independently owned business that takes title to the merchandise it handles
Broker
A person or business who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation
Agent
A person or business who represents buyers or sellers on a more permanent basis, performs only a few functions and does not take title to goods
Manufacturers sales branches and offices
Wholesaling by sellers or buyers themselves, rather than through independent wholesalers
