Chapter 10: Marketing Channels and Supply Chain Management

Question 1

Marketing Channel (Distribution Channels):

Answer 1

set of interdependent organizations that help make a product or service available for use or consumption by the business user

Question 2

Channel Functions

Answer 2

functions should be assigned to channel member who can add the most value for the cost.

Question 3

Channel Levels:

Answer 3

layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

Question 4

indirect marketing channel:

Answer 4

marketing channel containing one or more intermediary levels

Question 5

Marketing Systems:

Answer 5

conventional vs vertical or Hybrid

Question 6

conventional marketing system:

Answer 6

channel consisting of one or more independent producers, wholesalers and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

Question 7

vertical marketing system (VMS):

Answer 7

channel structure in which producers, wholesalers and retailers act as a unified system. One channel member owns the others, has contracts with them or has so much power that they all cooperate.

Question 8

VMS types

Answer 8

leadership is base on:
1. corporate- single common ownership
2. contractual- join through contracts
3. administrated- through the size and power of one of the parties.

Question 9

Disintermediation:

Answer 9

product and service producer bypass intermediaries and go directly to final buyer or radically new types of channel intermediaries are emerging to displace traditional ones.

Question 10

Marketing channel design steps

Answer 10

1. Analyzing customer needs
2. Setting channel objectives
3. Identifying major channel alternatives
4. Evaluating major alternatives

Question 11

Marketing Logistics (Physical Distribution):

Answer 11

planning, implementing and controlling the physical flow of goods, services and related information from points of origin to points of consumption to meet customer requirements at a profit

Question 12

Supply Chain Management

Answer 12

managing upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers.