Collaborators: Managing Distribution

Question 1

Managing distribution

Answer 1

involves designing and managing the process of delivering a company’s offering to target customers

Question 2

distribution decisions should take into account (2)

Answer 2

1 strategic decisions 5Cs

2 7T tactical factors

Question 3

key decisions in designing and managing distribution channels

Answer 3

1 channel structure 
2 channel coordination 
3 channel type 
4 channel coverage 
5 channel exclusivity

Question 4

channel structure

Answer 4

direct, indirect, and hybrid

Question 5

channel coordination

Answer 5

(ownership- based, contractual, and implicit

Question 6

channel type

Answer 6

(specialized vs. broad and limited vs. extensive

Question 7

channel coverage

Answer 7

(limited vs. extensive

Question 8

reverse logistics

Answer 8

Channels also facilitate reverse logistics by processing product returns and payment credits.

Question 9

All-Commodity Volume (ACV)

Answer 9

A measure of an offering’s availability, typically calculated as the total annual volume of the company’s offering in a given geographic area relative to the total sales volume of the retailers in that geographic area across all product categories

Question 10

Category Killers

Answer 10

Specialty retailers that focus on one product category in which they offer a large assortment of options at competitive prices.

eg. Best Buy (electronics), Office Depot (office supplies), Home Depot (home improvement), and PetSmart (pet supplies)

Question 11

Detailers

Answer 11

Indirect sales force promoting pharmaceuticals to doctors and pharmacists so that they, in turn, recommend the brand to the consumer.

Question 12

Gray Market

Answer 12

Gray Market: A market in which products are sold through unauthorized channels.

Question 13

Hybrid Channel:

Answer 13

Distribution strategy in which the manufacturer and the end customer interact with each other through multiple channels (directly and through intermediaries).

Question 14

Parallel Importing:

Answer 14

the price is lower to a country in which the same product is priced higher. A hypothetical example of this practice is importing drugs from Canada to the United States. In most cases, parallel importing is illegal in the United States.

Question 15

Reverse Logistics:

Answer 15

Reverse Logistics: The process of reclaiming recyclable and reusable materials and returns for repair, remanufacturing, or disposal.

Question 16

Shrinkage:

Answer 16

Shrinkage: A term used by retailers to describe theft of goods by customers and employees.

Question 17

Common ownership

Answer 17

a type of coordination in which different channel members are parts of the same company.

(1) better optimization of channel functions, resulting in greater effectiveness and cost efficiency (through joint profit optimization and system integration), (2) greater degree of information sharing, and (3) better control and performance monitoring.