Chp. 15

Question 1

marketing channel management

Answer 1

also called supply chain management, refers to a set of approaches and techniques firms use to efficiently and effectively integrate their supplies

Question 2

wholesalers

Answer 2

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

Question 3

distribution center

Answer 3

a facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialists

Question 4

direct marketing channel

Answer 4

the ,manufacturer sells directly to the buyer

Question 5

indirect marketing channel

Answer 5

when one or more intermediaries work with manufacturers to provide goods and services to customers

Question 6

vertical channel conflict

Answer 6

a type of channel conflict in which members of the same marketing channel, for example, manufacturers, wholesalers, and retailers, are in disagreement

Question 7

horizontal channel conflict

Answer 7

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

Question 8

independent (conventional) marketing channel

Answer 8

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

Question 9

coercive power

Answer 9

threatening or punishing the other channel member for not undertaking certain tasks

Question 10

referent power

Answer 10

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

Question 11

vertical marketing system

Answer 11

a supply chain in which the members act as a unified system; there are three types: administrated, contractual, and corporate

Question 12

administered vertical marketing system

Answer 12

a supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship

Question 13

power

Answer 13

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

Question 14

reward power

Answer 14

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

Question 15

expertise power

Answer 15

when a channel member uses its expertise as leverage to influence the actions of another channel member

Question 16

information power

Answer 16

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

Question 17

legitimate power

Answer 17

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

Question 18

contractual vertical marketing system

Answer 18

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

Question 19

franchising

Answer 19

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

Question 20

corporate vertical marketing system

Answer 20

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

Question 21

strategic relationship (partnering relationship)

Answer 21

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

Question 22

universal product code (UPC)

Answer 22

the black and white bar code on merchandise

Question 23

advanced shipping notice (ASN)

Answer 23

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

Question 24

electronic data interchange (EDI)

Answer 24

the computer to computer exchange of business documents from retailer to vendor and back

Question 25

vendor-managed inventory (VMI)

Answer 25

an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailers inventory levels in each of its stores

Question 26

push marketing strategy

Answer 26

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

Question 27

pull marketing strategy

Answer 27

designed to get consumers to pull the product not the supply chain by demanding it

Question 28

planners

Answer 28

in retailing context, employees who are responsible for the financial planning and analysis if merchandise, and its allocation to stores

Question 29

receiving

Answer 29

the process of recording the receipt of merchandise as it arrives at a distribution center or store

Question 30

radio frequency identification tags (RFID)

Answer 30

tiny computer chips that automatically transmit to a special scanner all the info about a containers contents or individual products

Question 31

ticketing and marketing

Answer 31

creating price and identification labels and placing them on the merchandise

Question 32

pick ticket

Answer 32

a document on display on a screen in a forklift truck indication how much of each item to get from specific storage areas

Question 33

just-in-time inventory systems

Answer 33

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