Chapter 14: Marketing Channels and Supply Chain Management Flashcards
Define Marketing Channel
The people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption.
What are Several Trends of Competitive Advantage
- If it is done right = efficient
- growth for company
- increased power of retailers
- greater role of info technology
Who are Channel Members
All parties in the marketing channel that negotiate with one another to buy and sell products. They facilitate the change of ownership between buyers and sellers and they move products from the manufacturer into the hands of the customers
Define the Supply Chain
A connected chain of all the business entities; internal and external to the company; in which they perform or support the marketing channel functions
Define Quantity as Overcome Discrepancies
The difference between the amount of products produced and the amount an end user (customer) wants to buy
Define Assortment as Overcome Discrepancies
When the consumer does not have all the items needed to receive full satisfaction; marketing channels assemble all products in one location
Define Temporal as Overcome Discrepancies
When the product is produced but consumers are not ready to buy; inventories are maintained in anticipation of demand
Define Spatial as Overcome Discrepancies
Buyers are all over buy producers are concentrated; making products available in convenient locations
Who are Channel Intermediaries and what are their functions?
Taking title, and owning the merchandise and control the terms of sale (Retailers and Merchant Wholesalers take this title)
Define Product Characteristic as a Factor in Deciding what Type of Channel to use
Whether the product is standardized or customized, the complexity of the product, and the gross margin of the product
Define Buyer Considerations as a Factor in Deciding what Type of Channel to use
How often the product is purchased and how long the buyer is willing to wait to receive the product. Affects the channel members used and the length of channel
How many channel functions are performed
Three basic functions, although, channel members may come and go, the channel is quite fluid, but these 3 must be performed
Define Contacting and Promoting as a Transitional Function
Contacting potential customers, promoting products, and soliciting orders
Define Negotiating as a Transitional Function
Determining how many goods or services to buy and sell, the type of transportation to use, when to deliver, and method and timing of payment
Define Risk Taking as a Transitional Function
Assuming the risk of owning inventory
Define Physically Distributing as a Transitional Function
Transporting and sorting goods to overcome temporal and spatial discrepancies
Define Storing as a Transitional Function
Maintaining inventories and protecting goods
Define Sorting as a Transitional Function
Overcoming discrepancies of quantity and assortment
Define Sorting Out as a Transitional Function
Breaking down a heterogeneous supply into separate homogeneous stocks
Define Accumulating as a Transitional Function
Combining similar stocks into la larger homogeneous supply
Define Allocating as a Transitional Function
Breaking a homogeneous supply into smaller and smaller lots (breaking bulk)
Define Assorting as a Transitional Function
Combining products into collections or assortments that buyers want available at one place
Define Researching as a Facilitating Function
Gathering information about other channel members and customers
Define Financing as a Facilitating Function
Extending credit and other financial services to facilitate the flow of goods through the channel to final consumers