Chapter 13 Marketing Channels and Supply Chain Management Flashcards
marketing channel (channel of distribution)
set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer
A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption
set of interdependent organizations that ease the transfer of ownership as products move from the point of production to the point of consumption
channel members
all parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller as they move the product from the manufacturer into the hands
of the end consumer
Channel members, sometimes called intermediaries or middlemen, work together to complete the various tasks it takes to get a product from production through to sale.
or
entities that participate and facilitate the change of ownership of a product
supply chain
the connected chain of all the business entities, both internal and external to the company, that produce the product and perform or support the marketing channel functions
a network of entities who are involved in creating and delivering a product to consumers
or
the sequence of processes involved in the production and distribution of a commodity
discrepancy of quantity
the difference between the amount of product produced and the amount of a product desired / an end-user wants to buy
discrepancy of assortment
the difference between the range of items carried by a supplier and the items required to satisfy the needs of a customer.
temporal discrepancy
a product is produced but a customer is not ready to buy it
a product is produced but consumers aren’t ready to buy it
spatial discrepancy
the difference between the location of a producer and the location of widely scattered markets
retailer
a channel intermediary that sells mainly to consumers and business customers
a person or business that sells goods to the public in relatively small quantities for use or consumption rather than for resale
direct channel
a distribution channel in which producers sell directly to customers
dual distribution (multiple distributions)
use of two or more channels to distribute the same product to target markets
strategic channel alliances
cooperative agreements between business companies to use one of the manufacturer’s already established distribution channels
an arrangement between two companies to undertake a mutually beneficial project while each retains its independence.
ex) partnership between Spotify and Uber. The strategic alliance between the two organizations allows Uber users to connect to Spotify and stream their favorite music while on a ride.
intensive distribution
a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
coverage
ensuring product availability in every outlet where potential customers might want to buy It
selective distribution
a form of distribution achieved by screening dealers to eliminate all buy a few in any single area
exclusive distribution
a form of distribution that involves only one or a few dealers within a given area
channel power
a marketing channel members capacity to control or influence the behaviour of other channel members
channel control
one marketing channel member intentionally affects another member’s behaviour
channel leader (channel captain)
a member of a marketing channel who exercises authority and power over the activities of other channel members
channel conflict
a clash of goals and methods among distribution channel members
horizontal conflict
a channel conflict that occurs among channel members on the same level
vertical conflict
a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or
between the manufacturer and retailer
channel partnering (channel cooperation)
the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage
supply chain management
a management system that coordinates and integrates all the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
logistics
the process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption
logistics information system
the link that connects all the logistics functions of the supply chain
supply chain team
an entire group of individuals who orchestrate the movements of goods, services, and information from the source to the consumer
procurement
the process of buying goods and services for use in the operations of an organization
mass customization (build-to-order)
a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications
just-in-time production (JIT)
a process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line
order processing system
a system whereby orders are entered into the supply chain and filled
electronic data interchange (EDI)
information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission
inventory control system
a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand
electronic distribution
a distribution technique that includes anyh kind of product or service that can be distributed electronically, whether over traditional forms such as fibre-optic cable or through satellite transmission of electronic signals
three-dimensional printing (3DP)
the creation of three-dimensional objects via an additive manufacturing (printing) technology that layers raw materials intro desired shapes
