Chapter 14 manging marketing channels and supply chains Flashcards
what is meant by a marketing channels
A:
why intermediaries are often needed (its values) 3 points
A:
Distinguish among traditional marketing channels, electronic marketing channels, multichannel distribution
A: i) to bring a seller and buyer together,
ii) make the sale of products and services more efficient by
iii) minimizing the number of sales contacts.
different types of vertical marketing systems.
A:
factors considered by marketing executives when selecting and managing a marketing channel.
A:
how conflict, co-operation, and legal considerations affect marketing channels relationships.
A:
how a company’s supply chain aligns with its marketing strategy.
A:
Identify the major logistics costs
A:
identify customer service factors that managers consider when making supply chain decisions.
A:
key logistics functions in a supply chain.
A:
what is meant by a marketing channels (def. marketing channel)
Individuals and firm involved in the process of making goods and services available for use or Consumption by Consumers and Organizations.
give 3 examples of MC’s transnational functions
buying: purchasing products for resale/ as an agent for supply of a product
selling: contacting potential customers and promoting products and soliciting orders
risk taking: assuming business risks in the ownership of inventory that can be obsolete or deteriorate
give 4 examples of MC’s logistical functions
Assorting: creating product assortments for several sources to serve customers
storing: assembling and protecting customers at a convenient location to offer better customer service
Sorting:purchasing in large quantities and breaking into smaller amounts desired by customers
Transporting: Physically moving a product to customers
give 4 examples of MC’s transnational functions?
Assorting: creating product assortments for several sources to serve customers
storing: assembling and protecting customers at a convenient location to offer better customer service
Sorting:purchasing in large quantities and breaking into smaller amounts desired by customers
Transporting: Physically moving a product to cutomers
give 3 examples of MC’s facilitating functions
Financing: extending credit to customers
Grading: inspection, testing or judging products and assigning them quality grades.
Marketing information and research: providing information to customers and suppliers including competitive conditions and trends.
what is a more completed common marketing channels for consumer goods and services? including all possible intermediaries in order
producers–> agents–> wholesalers–> retailers –> consumers
what is a more completed common marketing channels for business goods and services?
producers–> agents–> business distributors –> business users
what is a more completed common marketing channels for business goods and services?
producers–> agents–> business distributors –> business users
in an indirect common marketing channels for consumers, which intermediaries cannot be missed?
a retailer
in an indirect common marketing channels for business goods and services, which intermediaries cannot be missed?
a business distributor or an agent
in an indirect common electronic marketing channels for business goods and services, which intermediaries cannot be missed?
a virtual agent
what is function of a manufacturer’s branch office
carry a producer’s inventory, performs the functions of a full‑service wholesaler, and is an alternative to a merchant full-service wholesaler.
wholly-owned extensions of the firm and perform whole-sales activities.
what is function of a manufacturer’s sales office
does not carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers.
- wholly-owned extension of the firm and perform partial whole-sales activities (transational function only)
what is Merchant Wholesalers
Independently owned firms that take title to the merchandise they handle
def. Strategic channel alliances
one firm sells the products of another
exam an example of strategic channel alliance
Macdonald’s in a Walmart store
def. vertical marketing systems
- professionally managed and centrally coordinated marketing channels
- designed to achieve channel function economies and maximum marketing impact.
who is a broker?
the same as the agent: any intermediary with:
-legal authority to act on behalf of the manufacturer
who is a distributor
(imprecise) a common terms in business market but also be used to refer to wholesalers. distribution functions include selling, maintaining inventories, extending credits and so on ( values of intermediaries)
who is a dealer
a general term that can mean the same as distributor, retailers, wholesaler and forth
who is a retailer
an intermediary who sells to customers directly
who is a whole-saler
an intermediary who sells to other intermediaries, usually to retailers; usually applies ti consumer markets.
what is a Corporate-Owned Systems
A corporate vertical marketing system is the single ownership of a combination of successive stages of production and distribution.
what is an Administered Vertical Marketing System
co-ordination is achieved at successive stages of product and distribution by the size and influence of one channel member rather than through ownership
what is a Contractual or Administered Systems
Similar to the corporate but organized by contracts in three forms
what are three forms of a Contractual or Administered Systems
Wholesaler-sponsored, Retail-cooperative and franchises.
def. franchising
Franchisee is contractual arrangement between a parent company – the Franchisor – that authorizes the franchisee(s) to operate certain type of business under the name of the franchisor. (ex, Tim Hortons)
Holiday Inn is what type of business under vertical marketing system
contractual vertical marketing system–> Service-sponsored retail franchise system
What is the principal distinction between a corporate vertical marketing system and an administered vertical marketing system?
A corporate vertical marketing system is the single ownership of a combination of successive stages of production and distribution. Under an administered vertical marketing system, co-ordination is achieved at successive stages of product and distribution by the size and influence of one channel member rather than through ownership.
The final choice of a marketing channel by a producer depends on a number (4) of influential factors, including:
- Environmental Factors
- Consumer Factors
- Product Factors
- Company Factors
influential factor of choosing an marketing channel: Environmental Factors ex.
??
influential factor of choosing an marketing channel: consumer Factors
The what, where, when and how consumers prefer to buy impact the choice of intermediary
THE LEVEL OF SERVICE in retailing (3)
- self-service
- limited service
- full-service
merchandise lines: retail outlets are classified by
- depth of product line
2. breadth of product line
depth of product line
to a store carrying a large assortment of each item (Shoe Store carrying dress shoes, running shoes, children shoes, winter boots, hiking shoes, etc
breadth of product line
variety of different line of items that a store carries.
Victoria’s Secrets in retail outlet classification
high depth but low breadth
Scrambled merchandising
Carry a broad (several hundred) unrelated lines with limited depth in a single store (high breadth but low depth)
ex. depanneur
Intertype competition
Competition between very dissimilar types of retail outlet
