Chp. 15 Flashcards
marketing channel management
also called supply chain management, refers to a set of approaches and techniques firms use to efficiently and effectively integrate their supplies
wholesalers
those firms engaged in buying, taking title to, often storing, and physically handling goods in large quanities, then reselling the goods to retailers or industrial or business users
distribution center
a facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists
direct marketing channel
the ,manufacturer sells directly to the buyer
indirect marketing channel
when one or more intermediaries work with manufacturers to provide goods and services to customers
vertical channel conflict
a type of channel conflict in which members of the same marketing channel, for example, manufacturers, wholesalers, and retailers, are in disagreement
horizontal channel conflict
a type of channel conflict in which members at the same level of a marketing channel, for example, two competing retailers or two competing manufacturers, are in disagreement such as a price war
independent (conventional) marketing channel
a marketing channel in which several independent embers, a manufacturer, a wholesaler, and a retailer-each attempts to satisfy its own objectives and maximize its profits often at the expense of the other members
coercive power
threatening or punishing the other channel member for not undertaking certain tasks
referent power
a type of marketing channel power that occurs if one channel member wants to be associated with the other channel member. the channel member with whom the others wish to be associated has the power to get them to to what he wants
vertical marketing system
a supply chain in which the members act as a unified system; there are three types: administrated, contractual, and corporate
administered vertical marketing system
a supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship
power
a situation that occurs in a marketing channel in which one member has the means or ability to have control over the actions of another member in the channel at a different level of distribution such as if a retailer has power or control over a supplier
reward power
a type of marketing channel power that occurs when the channel member exerting the power offers rewards to gain power, often a monetary incentive, for getting another channel member to do what is wants it to do
expertise power
when a channel member uses its expertise as leverage to influence the actions of another channel member
information power
a type of marketing channel power that occurs if the channel member exerting the power has info that the other channel member wants or needs and can therefore get them to do what they want
legitimate power
a type of marketing channel power that occurs if the channel member exerting the power has a contractual agreement with the other channel member that requires the other channel member to behave in a certain way. this type of power occurs in an administered vertical marketing system
contractual vertical marketing system
a system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict
franchising
a contractual agreement between a franchisor and franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor
corporate vertical marketing system
a system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios
strategic relationship (partnering relationship)
a supply chain relationship that the members are committed to maintain ling term, investing in opportunities that are mutually beneficial; requires mutual trust, open communications, common goals, and credible commitments
universal product code (UPC)
the black and white bar code on merchandise
advanced shipping notice (ASN)
an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment
electronic data interchange (EDI)
the computer to computer exchange of business documents from retailer to vendor and back
vendor-managed inventory (VMI)
an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailers inventory levels in each of its stores
push marketing strategy
designed to increase demand by motivating sellers–wholesalers, distributers, or salespeople- to highlight the product, rather than the products of competitors, and thereby push the product onto consumers
pull marketing strategy
designed to get consumers to pull the product not the supply chain by demanding it
planners
in retailing context, employees who are responsible for the financial planning and analysis if merchandise, and its allocation to stores
receiving
the process of recording the receipt of merchandise as it arrives at a distribution center or store
radio frequency identification tags (RFID)
tiny computer chips that automatically transmit to a special scanner all the info about a containers contents or individual products
ticketing and marketing
creating price and identification labels and placing them on the merchandise
pick ticket
a document on display on a screen in a forklift truck indication how much of each item to get from specific storage areas
just-in-time inventory systems
inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise “just in time” for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer want it, in the case of consumer goods also known as quick response systems in retailing
