Chapter 15 Flashcards
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).
Marketing Intermediaries
A whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers.
Channel of Distribution
Helps ensure the flow of communication and money
Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods.
Agents/Brokers
A marketing intermediary that sells to other organizations.
Wholesaler
An organization that sells to ultimate consumers
Retailer
Why are marketing intermediaries needed
They perform marketing task such as transport, storing, selling, and relationship building better and cheaper.
What are the three points of intermediaries and why they add value for the cost
- Intermediaries can be eliminated, but their functions can’t.
- They have survived because they perform marketing functions better and cheaper than others.
- They add cost, but those are normally offset by the value they add.
In economics, the want-satisfying ability, or value, that organizations add to goods or services when the products are made more useful or accessible to consumers than they were before.
Utility
Time utility
Adding value to products by making them available when they’re needed.
Adding value to products by having them where people want them.
Place utility
Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.
Possession utility
Adding value to products by opening two-way flows of information between marketing participants.
Information utility
Adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time.
Service utility
Becoming the most important
What’s the difference between a retail sale and a wholesale?
A retail sale is the sale of G&S to consumers for personal use and a wholesale is the is the sale of G&S to businesses for use in the business or wholesalers for resale.
Independently owned firms that take title to the goods they handle.
Merchant wholesalers
80% of whole sellers fall into this category
Name and describe the two types of merchant wholesalers
Full-service - perform all the distribution functions
Limited Function wholesalers - perform select functions very well.
Wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment.
Rack jobbers
Wholesalers that serve mostly smaller retailers with a limited assortment of products.
cash-and-carry wholesalers
Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.
Drop shippers
Distribution that puts products into as many retail outlets as possible.
Intensive Distribution
Distribution that sends products to only a preferred group of retailers in an area.
Selective distribution
Distribution that sends products to only one retail outlet in a given geographic area.
Exclusive distribution
Retailing such as vending machines, telemarketing, kiosks, and online that open new channels of distribution for products
Non-store retailing
Selling goods and services to ultimate customers (e.g., you and me) over the Internet.
online retailing
A form of electronic commerce that involves using social media, online media that support social interaction, and user contributions to assist in the online buying and selling of products and services.
Social Commerce
The sale of goods and services by telephone.
Telemarketing
Selling to consumers in their homes or where they work.
Direct selling
Marketing where sales people work as contractors and generate commissions for the people above them while people below generate commission for them
Multilevel Marketing
Any activity that directly links manufacturers or intermediaries with the ultimate consumer.
Direct Marketing
How can traditional retailers compete with online retailers
Become so efficient they can beat them on cost.
what are the four formal relationships that can link firms together for increased efficiency
Corporate systems
Contractual systems
administered systems
supply chains
A distribution system in which all of the organizations in the channel of distribution are owned by one firm.
Corporate Distribution System
A distribution system in which members are bound to cooperate through contractual agreements.
Contractual distribution system
A distribution system in which producers manage all of the marketing functions at the retail level.
Administered Distribution system
The sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers.
Supply chain (value chain)
The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Logistics
What are the 7 R’s of logistics
Right Product Right Place Right customer Right time Right quantity Right condition Right Price
The use of multiple modes of transportation to complete a single long-distance movement of freight.
Intermodal shipping
