Chapter 10: Distribution Channels

Question 1

What is the difference between an upstream chain and a downstream chain?

Answer 1

Upstream refers to the products or materials before they get to you in a supply chain, versus downstream products are ones that came from your firm on their way to final consumers.

Question 2

What is a value delivery network?

Answer 2

A VDN is the refiners, manufacturers, distributors, retailers, and customers that deliver a product to the market for increased customer satisfaction in the entire supply chain by working together to improve the whole process.

Question 3

What is a marketing/distribution channel?

Answer 3

It is the independent supply chain itself that brings products to market.

Question 4

How do marketing intermediaries bring value to supply chains?

Answer 4

They transform the ways products are delivered from the produces into what consumers what in addition to bridging logistical gaps between others members of the supply chain.

Question 5

What are the eight main functions of channel members?

Answer 5

Those are to inform actors in the chain about customers, producers, and other relevant conditions, promotion, persuasive communication to get more products sold, contact, which is finding and engaging customers, matching, which is customizing products to meet consumer needs, negotiation, creating the right price, physical distribution, financing the chain, and taking the risk for the products.

Question 6

What is a channel level?

Answer 6

It is the sets of intermediaries that bring products closer to their final destinations.

Question 7

What is a direct marketing channel?

Answer 7

It is one without intermediaries.

Question 8

What is an indirect marketing channel?

Answer 8

It is one with intermediaries.

Question 9

What is a channel conflict?

Answer 9

It is when there is a disagreement among marketing channel members over goals, roles, or rewards.

Question 10

What is the difference between horizontal and vertical conflicts?

Answer 10

Horizontal conflicts are across the channel, vertical is among different channels in the value chain.

Question 11

How are a conventional distribution network and a vertical marketing system different?

Answer 11

Traditional has companies act more independently, the vertical has the channel levels more integrated with their marketing strategies.

Question 12

What is a vertical corporate marketing system?

Answer 12

The various stages of production and distribution are under the control of one owner.

Question 13

What is a contractual VMS?

Answer 13

That is when independent firms in different marketing channels come together to form the value chain.

Question 14

What is an administered VMS?

Answer 14

That is when multiple independent firms work together, but it is done through the resources of one of the channels.

Question 15

What is a horizontal marketing opportunity?

Answer 15

That is when two entities in the same channel level team up for a marketing opportunity.

Question 16

What is a multichannel distribution system, and what opportunities does it bring?

Answer 16

It is two or more marketing channels, can bring a wider customer audience that each channel is custom made for, though they can be harder to control and could generate conflict.

Question 17

What is disintermediation?

Answer 17

It is when distribution channels are obsolete due to technology.

Question 18

What objectives are to be mastered by marketing channel design?

Answer 18

Those are analyzing customer needs, setting channel objectives, along identifying and evaluating channel alternatives.

Question 19

What is intensive distribution?

Answer 19

It is when the manufacturer will sell its units to whatever retailers/wholesalers will buy them for the right price.

Question 20

What is exclusive distribution?

Answer 20

That is when brands give exclusive selling rights to one retailer within a certain territory.

Question 21

What is selective distribution?

Answer 21

That is when some but not all retailers who submit bids can sell the manufacturer’s product.

Question 22

What is marketing channel management?

Answer 22

That is selecting, managing, motivating, and evaluating performs in each level of the marketing channel.

Question 23

What are exclusive arrangements?

Answer 23

When sellers allow only certain outlets to carry products, and ban them from carrying any competing product.

Question 24

What is the difference between an exclusive distribution and exclusive dealing?

Answer 24

distribution is when the seller only allows certain outlets to carry its products; dealing is when the seller requires the buyer to not handle competing products.

Question 25

What is full-line forcing?

Answer 25

It is when sellers are only allowed to carry buyers’ products when the seller accepts the full product line to sell.

Question 26

What is marketing logistics?

Answer 26

It is overseeing the physical transportation of goods, services, and ideas from the producer to its final consumer so that each customer is satisfied.

Question 27

What is the difference between outbound and inbound logistics?

Answer 27

Outbound is from your channel on its way to the final consumer, inbound is the components used to make your product from further up the distribution channel.

Question 28

What is reverse logistics?

Answer 28

It is the proper disposal, repurposed, or recycling of products after consumer use.

Question 29

What is supply chain management?

Answer 29

It is the upstream and downstream management of value-added goods, final goods, and ensuring that the customer is satisfied.

Question 30

What are distribution centers/warehousing?

Answer 30

Those are large companies and buildings that store large quantities of goods from manufacturers, store them, and then fulfill orders from retailers and deliver them to the next channel level.

Question 31

What is inventory management, and what are some techniques used to help?

Answer 31

It is deciding the right amount of goods to keep on hand and sell to consumers. Strategies include just-in-time inventory RFID scanned items.

Question 32

How does transportation affect marketing?

Answer 32

Pricing of products, delivery of service, condition of products.

Question 33

What are transportation modes and multimodal transportation?

Answer 33

transportation machines, or using more than one.

Question 34

Name and explain the two types of logistics management?

Answer 34

Those are the electronic data interchange, where info is shared between organizations online, and vendor-management inventory, where large retailers keep track of inventory.

Question 35

What are the two main logistics provides?

Answer 35

Those are integrated within the company and third parties outside of it.