Chapter 12 Flashcards

1
Q

What does place mean in distribution?

A

Means making the goods and services available where and when customers need them.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a distribution channel?

A

A series of firms or individuals that help in the movement of a product from the producer to the final customer

Includes:
- manufacturers
- wholesalers
- retailers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a channel level?

A

A layer of intermediaries that perform some work in bringing the product closer to the buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are 5 reasons for choosing a direct channel?

A

1) greater control
2) lower cost
3) direct contact with customer needs
4) quicker response or change in marketing mix
5) suitable middleman not available

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why are marketing intermediaries used?

A

1) Greater efficency in making foods available to target markets
2) The manufacturer can achieve more on its own
3) match supply and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are functions of the Distribution Channel? (8)

A

1) Risk taking
2) Information
3) promotion
4) contact
5) matching (S&D)
6) negotiation
7) physical distribution
8) financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are 4 regrouping activities?

A

1) Allocating (bulk-breaking)
- start with large quantity, convert to smaller
2) Assorting
- Creating variety
3) Sorting
- Separate products based on a quality
4) Accumulating (making bulk)
- small quantities to large

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are two types of channel systems?

A

1) Direct
2) Indirect
-vertical marketing
-traditional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are 3 types of vertical marketing systems?

A

1) corporate
- common ownership at different levels of the channel
2) contractual
- contractual agreement among channel members
3) Administered
- Leadership is assumed by one or a few dominant members

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

When will the channel be the most effective?

A

When all members cooperate to attain overall goals and satisfy the target market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When does conflict occur in the channels?

A

1) horizontal conflict
- at the same channel level, retailer to retailer
2) vertical conflict
- cuts between different levels, manufacturer to retailer

Conflict must be managed for channel to perform well

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What types of conflict arise?

A

1) Differences in goals
2) Drive for autonomy
3) excessive use of power and influence attempts
4) communication problems
5) disagreements over resource allocation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the 3 degrees of market exposure?

A

1) selective
2) exclusive
3) intensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What’s a Horizontal Marketing System?

A

Two or more companies at the same channel level working together
- McDonald’s inside a Walmart

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the steps of the Logistics System?

A

Total Cost
Warehousing
Inventory
Order Processing
Transportation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What’s the most important step in the logistics system?

A

Minimizing the cost of transportation

17
Q

What are the three goals of the Logistics system?

A

1) Provide a targeted level of customer service at the lowest cost
2) Higher dist. cost/higher customer. service levels
3) Lower dist. cost/higher customer service levels

18
Q

What are the 5 transportation methods?

A

1)Rail
- bulk, inexpensive
2) Trucks
- door-to-door
3) Water
- low cost, low value, slow
4) Pipeline
- reliable, limited
5) Air
- high cost, fast, high-value

19
Q

What is intermodel transportation?

A

Combining two or more transportation methods

Piggyback = rail + truck
BirdyBack = air + truck
FishyBack = truck + water

20
Q

How are transportation rates influenced?

A

1) distance
2) volume/weight
3) value

21
Q

What’s time utility?

A

When companies make sure customers get their items at the right time

22
Q

What’s a private warehouse?

A

Company owns the property

23
Q

What’s a public warehouse?

A

Company rents the property

24
Q

What are carrying costs?

A

Capital Costs
Storage costs
Service costs

25
Q

What’s the Economic Order Quantity? (EOQ)

A

Right amount of products you should order to minimize total inventory costs.

26
Q

What are distribution centers?

A

Special warehouses designed to speed up the flow of product movement into and out of the facility