Distribution Channels - Chapter 12

Question 1

Distribution channel :

Answer 1

Transfers the ownership of goods and moves them from the pt of production to the pt of consumption, most often to retailers.

Distribution channels are part of the overall supply chain
When a firm is just starting out or entering new market, it doesn’t rlly have the option of having the “best” distribution channel structure.

Question 2

Supply chain management :

Answer 2

Set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation

Question 3

Logistics management :

Answer 3

Describes the integration of 2 or more activities to plan, implement, and control the efficient flow of raw materials, in-process inventory, and finished goods from the pt of origin to the pt of consumption.

Question 4

What are the 2 developing distribution strategies a company can use?

Answer 4

• push marketing strategy
• pull marketing strategy

Question 5

Push marketing strategy :

Answer 5

Increase demand by focusing on wholesalers, distributors or sales ppl, who push the product to consumers via distribution channels

Question 6

Pull marketing strategy :

Answer 6

Designed to get consumers to pull the product into the supply chain by demanding that retailers carry it

Question 7

Distribution intensity

Answer 7

Number of channel members to use at each level of the supply chain

Question 8

Intensive distribution strategy :

Answer 8

Designed to get products into as many outlets as possible

Question 9

Exclusive distribution :

Answer 9

Granting geographic territories to one or very few retail customers so no other retailers in the territory can sell a particular brand

Question 10

Selective distribution :

Answer 10

Uses a few selected customers in a territory
Lies between the intensive and exclusive distribution strategies

Question 11

Distribution centre :

Answer 11

Facility for the receipt, storage, and redistribution of goods to company stores or customers

Question 12

Channel conflict :

Answer 12

Results when supply chain members are not in agreement act their goals, roles or rewards

Although conflict is likely to occur in any distribution channel, it is mitigated by the degree to which one channel member has power over another.

Question 13

Corporate vertical marketing system :

Answer 13

Parent company has complete control and can dictate the priorities and objectives of the marketing channel bc it owns multiple segments of the channel, such as manufacturing plants, warehouse facilities, and retail outlets.

Question 14

Contractual vertical marketing system :

Answer 14

Independent firms at diff levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict

Question 15

Strategic relationship (partnering relationship) :

Answer 15

Supply chain relationship that the members r committed to maintaining long-term, investing in opportunities that are mutually beneficial; requires mutual trust, open communication, common goals, and credible commitments

Question 16

What are the 5 flows from Customer to Distribution Centre?

Answer 16

Flow 1 (Customer to Store)
Flow 2 (Store to Buyer)
Flow 3 (Buyer to Manufacturer)
Flow 4 (Store to Manufacturer)
Flow 5 (Store to Distribution Centre)

Question 17

Electronic data interchange (EDI) :

Answer 17

Computer-to-computer exchange of business doc from a retailer to a vendor and back

Question 18

Advanced shipping notice :

Answer 18

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 19

Vendor managed inventory (VMI) :

Answer 19

Approach for improving marketing channel efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores.

Question 20

Mobile task management :

Answer 20

Tech that uses a wireless network and a mobile device that receives demand notification and enables a speedy response

Question 21

Lead time :

Answer 21

The amt of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller’s store, ready for sale.