Chapter 11 Flashcards
What is Value Delivery network?
The network made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value.
What is marketing channel?
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business customer.
Which functions can channel partners perform?
Information gathering and distribution Promotion at point of purchase Contact Matching and arranging Negotiation Physical distribution Financing Risk taking After-sale support
What is retailing?
The business of selling goods or services to consumers for their personal use.
Who is a retailer?
A business that primarily sells products and services to consumers.
What is wholesaling?
All activities involved in selling goods and services to those buying for resale or business use.
Who are wholesalers?
Companies whose primary business is wholesaling.
Who is drop shipper?
An intermediary that takes orders and payments from customers then arranges to have the merchandise shipped to the customer directly from the supplier.
Who is rack jobber?
A wholesaler that buys merchandise and resells it on “rack” inside the retail store, in partnership with the retailer.
Who is a broker?
A wholesaler that does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.
Who is an agent?
A representative, either of buyer or a seller, who performs only few functions and does not take title to goods.
What is channel level?
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
What is direct marketing channel?
A marketing channel that has no intermediary levels.
What is indirect marketing channel?
A marketing channel containing one or more intermediary levels.
What is vertical marketing system?
A distribution 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.
What is corporate VMS?
A vertical markeing system that combines successive stages of production and distribution under single ownership; channel leadership is established through common ownership.
What is administered VMS?
A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of the parties.
What is contractual VMS?
A vertical marketing system in which independent firms at different levels of production and distribution work together under contract.
What is franchise organization?
A marketing system that links several stages in the production and distribution process, and controls operations from a central head office.
What is franchise organization?
A marketing system that links several stages in the production and distribution process, and controls operations from central head office.
What is horizontal marketing system?
An arrangement in which two or more companies that operate at the same channel level join together to follow a new marketing opportunity.
What is multichannel (hybrid) distribution system?
A distribution system in which a single firm sets up two or more marketing channels to reach one or more market segments.
What is channel conflict?
Disagreement among marketing channel members over goals, roles, and rewards.
What is disintermediation?
The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resselrs by radical new types of intermediaries.
What is intensive distribution?
A marketing strategy in which the product is stocked in as many outlets as possible.
What is selective distribution?
A distribution strategy in which the market selects a set of retailers that specialize in their product category.
What is exclusive distribution?
A distribution strategy in which the marketer gives the rights to distribute its products to only one retailer in a particular geographic territory.
What is marketing channel design?
Designing effective marketing channels by analyzing customer needs, setting channel objectives, determining the types and responsibilities of channel members, and making decisions about international distribution channels.
What is logistics management (supply chain management)?
Planning, implementing and controlling the physical flow of materials, final goods, and related information from points of origin to point of consumption to meet customer requirements at a profit.
What are just-in-time logistics systems?
A type of inventory management system in which only small inventories of parts or merchandise are held, and new stock arrives “just in time” when it is needed.
What is multimodal (or intermodal) transportation?
Combining two or more modes of transportation.
What is third-party logistics (3PL) provider
An independent logistics provider that performs any or all of the functions required to get its client’s product to market.
