Chapter 12: Distribution Channels

Question 1

distribution components

Answer 1

supply chain: goes to suppliers and producers

suppliers go to producers

producers go to distribution channels and consumers

distribution channels go to consumers

suppliers, producers, and consumer ‘ logistics management

Question 2

Producers or suppliers

Answer 2

provide the raw materials

distribution channels, supply chain, logistics: moving through the components

Question 3

reverse logistics

Answer 3

process of returning a product

Question 4

logisitcs

Answer 4

all activities involved in the flow of goods

Question 5

distribution channel

Answer 5

wholesalers, brokers, dealers, agents, resellers, etc.

Question 6

supply chain

Answer 6

network of firms involved nn flow of goods

Question 7

all of these are needed in supply chain

Answer 7

physical flow of goods

information flows

payment flows

ownership flows

promotion flows

Question 8

transactional function: buying

Answer 8

purchase foods for resale to other intermediaries or consumers

Question 9

transactional function: risk taking

Answer 9

own inventory that can become outdated

Question 10

transactional function: promotion

Answer 10

promote products to attract consumers

Question 11

transactional function: selling

Answer 11

transact with potential customers

Question 12

logistical function: physical distribution

Answer 12

transport goods to point of purchase

Question 13

logistical function: risk taking

Answer 13

maintain inventory and protect goods

Question 14

facilitating function: gathering information

Answer 14

share competitive intelligence about customers or other channel members

Question 15

facilitating function: financing

Answer 15

extend credit and other financial services to consumers

Question 16

direct and indirect distribution

Answer 16

Direct:
manufacturer -> consumer

indirect:
manufacturer -> retailer -> consumer
manufacturer -> wholesaler -> retailer -> consumer

Question 17

multichannel distribution

Answer 17

goes from manufacturer to many places such as distributors, retailers, directly to consumer segment, directly to business segment

Question 18

push marketing

Answer 18

manufacturer -> wholesaler -> consumer

Question 19

pull marketing

Answer 19

consumer -> wholesaler -> manufacturer (advertising, social media, store displays) WE want YOUR product

Question 20

distribution intensity (3)

Answer 20

intensive: everywhere
selective: few locations
exclusive: even fewer locations

Question 21

independent marketing channel

Answer 21

manufacturer - wholesaler - retailer - consumer

Question 22

vertical marketing channel

Answer 22

manufacturer, wholesaler, retailer - consumer (work together as team to deliver to consumer)

Question 23

administered VMS (vertical marketing channel)

Answer 23

most powerful member in distribution channel calls shot

Question 24

contractual VMS

Answer 24

(franchise): what are your obligations, what do you need, etc.

Question 25

corporate VMS

Answer 25

corporations own many channels: store, supplier, etc.

Question 26

logistics management

Answer 26

making merchandise flow

Question 27

inbound transportation

Answer 27

coordination of deliveries with dispatcher

Question 28

just-in-time systems

Answer 28

reduced lead time, increased product availability and lower inventory investment (having product get there JUST in time)

Question 29

supply chain benefits

Answer 29

fulfill delivery promises

meet customer expectations

reduce number of transactions

increase value for consumers

more efficient and effective distribution system