Chapter 13 Marketing Channels and Supply Chain Management

Question 1

marketing channel (channel of distribution)

Answer 1

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

Question 2

channel members

Answer 2

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

Question 3

supply chain

Answer 3

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

Question 4

discrepancy of quantity

Answer 4

the difference between the amount of product produced and the amount of a product desired / an end-user wants to buy

Question 5

discrepancy of assortment

Answer 5

the difference between the range of items carried by a supplier and the items required to satisfy the needs of a customer.

Question 6

temporal discrepancy

Answer 6

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

Question 7

spatial discrepancy

Answer 7

the difference between the location of a producer and the location of widely scattered markets

Question 8

retailer

Answer 8

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

Question 9

direct channel

Answer 9

a distribution channel in which producers sell directly to customers

Question 10

dual distribution (multiple distributions)

Answer 10

use of two or more channels to distribute the same product to target markets

Question 11

strategic channel alliances

Answer 11

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.

Question 12

intensive distribution

Answer 12

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

Question 13

coverage

Answer 13

ensuring product availability in every outlet where potential customers might want to buy It

Question 14

selective distribution

Answer 14

a form of distribution achieved by screening dealers to eliminate all buy a few in any single area

Question 15

exclusive distribution

Answer 15

a form of distribution that involves only one or a few dealers within a given area

Question 16

channel power

Answer 16

a marketing channel members capacity to control or influence the behaviour of other channel members

Question 17

channel control

Answer 17

one marketing channel member intentionally affects another member’s behaviour

Question 18

channel leader (channel captain)

Answer 18

a member of a marketing channel who exercises authority and power over the activities of other channel members

Question 19

channel conflict

Answer 19

a clash of goals and methods among distribution channel members

Question 20

horizontal conflict

Answer 20

a channel conflict that occurs among channel members on the same level

Question 21

vertical conflict

Answer 21

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

Question 22

channel partnering (channel cooperation)

Answer 22

the joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage

Question 23

supply chain management

Answer 23

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

Question 24

logistics

Answer 24

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

Question 25

logistics information system

Answer 25

the link that connects all the logistics functions of the supply chain

Question 26

supply chain team

Answer 26

an entire group of individuals who orchestrate the movements of goods, services, and information from the source to the consumer

Question 27

procurement

Answer 27

the process of buying goods and services for use in the operations of an organization

Question 28

mass customization (build-to-order)

Answer 28

a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications

Question 29

just-in-time production (JIT)

Answer 29

a process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line

Question 30

order processing system

Answer 30

a system whereby orders are entered into the supply chain and filled

Question 31

electronic data interchange (EDI)

Answer 31

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

Question 32

inventory control system

Answer 32

a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer’s or a customer’s demand

Question 33

electronic distribution

Answer 33

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

Question 34

three-dimensional printing (3DP)

Answer 34

the creation of three-dimensional objects via an additive manufacturing (printing) technology that layers raw materials intro desired shapes