Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MKTG100 > Distribution (place) Lecture Week 9 > Flashcards

Distribution (place) Lecture Week 9 Flashcards

1
Q

What is a supply chain? Describe the role and function of a supply chain.

A

A supply chain consists of activities and processes as well as the transformation of products and moving from one location to another. The product starts off from a combination of different raw materials and finishes when the end consumer purchases and consumes the product/good/item.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define what a marketing channel is

A

A marketing channel is another word used to describe a distribution channel. Which refers to individuals and business organisations that manage and control the flow of products from producers to consumers. A marketing/distribution channel is an integral part of a supply chain commonly known as the Place element in the marketing mix - the 4P`S.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Supply chain

A

A supply chain starts off from the raw materials and then moves on in the channel of distribution to the parts/suppliers who then provide and supply everything necessary to manufacture/create/produce these products/goods who then package the product and label the goods and distribute them to the retail outlets and shops shop sell the products and goods to the final consumers who purchase the products known as the customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define channel management

A

Channel management refers to the whole full set of managerial activities and processes in which organisations use to distribute products in the right quantities to the correct locations at the right time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define Marketing intermediaries

A

Are individuals or organisations that act in the distribution chain between the producer and the end-user (e.g. industrial buyers, wholesalers, agents, and brokers and retailers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Marketing Channels
Time Utility
Place utility
Exchange efficiencies

A

Ensuring products are made available when they are wanted or needed.
Products are available when they are wanted.
Available in the places that they are needed in the correct amounts/quantities possible.
Transactions are effective, quick and very successful and affordable meeting customer needs and expectations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Provide two reasons for using intermediaries

A
  1. Involving intermediaries makes distribution more efficient for producers and consumers.
  2. Intermediaries match supply & demand.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Disadvantage for intermediaries

A

Intermediaries can be costly and highly expensive and therefore reduce the chance of profitability, they can also be very time-consuming.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Information

A

Gather and distribute information (e.g. market research)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Promotion

A

Develop and spread persuasive communication.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Facilitating Exchange:
Contact:
Matching:
Negotiation:

A

Finding and communicating with prospective buyers.
Customising the offer to the buyer`s needs
Reach agreement involving factors such as price, payment and service.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Physical Distribution:

A

transporting and storing goods- moving goods from point to point of production - transportation to regions in NZ, logistical work - strong goods when they are needed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Financing:

A

acquiring and using funds to cover costs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Risk-taking:

A

Assuming the risks of distribution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Two critical roles for intermediaries are sales specialists for suppliers and purchasing agents for customers. Name and identify 3 or 4 examples for each of them.

A 
Sales Specialists for Suppliers: 
- Experience
- Information
- Negotiation
Purchasing Agents for Customers: 
- Anticipate wants
- Store and transport
- Guarantee product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the three Key Decisions associated with Channel Strategy

A
  1. The most effective distribution channel.
  2. The most appropriate level of distribution intensity.
  3. The degree of channel integration (merging).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Identify and describe the four different types of Marketing Channels:

A

Direct- a channel owned and operated by a singular individual channel member responsible for supplying a target market segment.
Indirect- a channel comprised of several independently owned channel members who work together to serve a target market segment.
Multiple- a combination of direct and indirect channels whereby each channel is used to reach a different target market (consumer and industrial markets)
Hybrid- a combination of direct and indirect channels whereby different channels are used to reach the same target market segment - work themselves directly using technology and intermediaries- serving the same target market with different forms.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Identify all of the different types of marketing channels:

A

Producer - consumer
Producer - retailer - consumer
Producer - wholesaler - retailer - consumer
Producer - agent/broken - wholesaler - retailer - consumer
Producer - agent/broker - consumer.

19
Q

What are the six different marketing channel selections?

A 
Customer Characteristics
Product attributes 
Type of organisation
Competition
Marketing environmental forces
Characteristics of intermediaries
20
Q

Distribution Intensity (Market coverage) Number of intermediaries at each level

A

Exclusive- selling through only one intermediary in a particular geographic region.
Selective- Selling through only intermediaries who will give the product special attention.
Intensive- Selling through all responsible and suitable wholesalers and retailers who will stock and/or sell the product.
Exlusive - selective - intensive
Few to many
Number of intermediaries

21
Q

What are the two different types of channel integration (merging)?

A

Vertical - Combining two or more stages of the marketing channel under one management. (Multiple stages combined serving 1 management only)

Horizontal - Combininbing organisations at the same level of operation under one management only. (Businesses joining to work together in partnerships at the same level of operation under one management.

22
Q

Choosing a Channel Integration

Conventional Marketing System

Vertical Marketing System:

Horizontal Marketing System

A

A multi-level system where channel members work independently of one another.

Vertical Marketing System: A channel where there is a formal agreement on cooperation at different channel levels.

Horizontal Marketing system: Where two or more companies at the same level agree to work together such as Air New Zealand and Star Alliance

23
Q

Identify and describe the four different types of vertical marketing systems (VMS)

A

Contractual - where a series of contracts exist.
Corporate - where one company owns the channel.
Franchise organisations: work together under the rules of a franchiser.
Retailer: cooperatives work together for buying/purchasing better more affordable deals.

24
Q

What is franchising and what is a franchisor?

A

An approach to business in which one party ( a franchiser) licenses the business model to another party ( a franchisee ). Examples: Dominoes, MacDonalds, the coffee club, super liquor, Westpac, ASB.

25
Q

List 5 Advantages/positives of channel cooperation:

A

Speeds up inventory replenishment.
Improves customer service.
Cuts the costs of bringing products to the consumer.
Is vital to the success of the channel.
Leads to the overall functioning of the channel.

26
Q

In channel leadership what is the primary role and description of a channel captain?

A

A channel captain is the dominant leader of a marketing channel or a supply chain.

27
Q

In channel leadership what is the intended function and purpose and description of Channel Power?

A

The ability of one channel member to influence another member`s goal achievement.

28
Q

What are three examples of Channel conflict?

A

Self-interest creates misunderstanding about role expectations
End result generally leads to frustration, annoyance and anger for the entire channel
Multiple channels driven partly by new technology have increased the potential for conflict within the channel

29
Q

Channel Behaviour
What is conflict?
And identify and describe the two examples of conflict between the Horizontal and Vertical channels

A

Conflict is when one channel member perceives another member to be acting so as to prevent the first member from achieving its objectives.
Horizontal - firms competing at the same level. (E.g. Retailer vs Retailer)
Vertical - firms at different levels of the channel (e.g. manufacturer vs wholesaler)

30
Q

What is wholesailing?

A

Wholesaling is associated with the transactions in which products are brought for resale, for making other products or for general business operations.

31
Q

How do wholesalers differ from retailers?

A

Wholesalers sell to other businesses e.g. to retailers. Not to private consumers, hence location, atmosphere, and promotion are less important and relevant.

32
Q

List some different daily acitvities that wholesalers achieve and accomplish on a regular, normal, standard business day:

A

Wholesalers are involved in many supply chain activities: warehousing, shipping, product handling, inventory control, information system management, data processing, risk-taking, financing, budgeting marketing research and promotion.

33
Q

Provide 7 examples of which services wholesalers provide

A
  • Initiating sales contacts.
  • Providing financial assistance.
  • Serving as conduits/channel- providing/offering something.
  • Assisting with marketing strategy.
  • Helping retailers to select inventory.
  • Offering specialised knowledge of market conditions
  • Offering expert negotiation on final purchases.
34
Q

Give an example of horizontal conflict

A

E.g. Retailer versus retailer.

35
Q

Give an example of vertical conflict

A

E.g. Manufacturer versus Wholesaler increases the increasing intensity of distribution.

36
Q

Define Retailers - What are they?

A

Retailing services and industries and shops/outlets who are involved in selling goods or services directly to the final consumer for their personal, non-business use.
Retailers, businesses whose sales come primarily from retailing, can vary dramatically.

37
Q

Retailer Examples:

A

when buying fruit, stereos, fast food, books you may purchase from Woolworths, Farmers, McDonald’s and Whitcoulls or from Corner fruit shop, music specialists, local takeaways, and amazon.com.

38
Q

Types of Retailers

A

General Merchandise Stores: A retail establishment that offers a variety of product lines that are stocked in considerable depth.
Specialty Retailers: Stores that carry a narrow product mix with deep product lines.

39
Q

Identify and describe the three different types of retailers:

A

Traditional specialty stores:
- Stores that carry a narrow product mix with deep product lines.
Category Killers:
- A very large specialty store focusing and concentrating on a major product category as well as competing on the basis of low prices and product availability.
Off-price retailers:
- Stores that purchase manufacturers` seconds, overruns and off-season merchandise at below wholesale prices.
Resale to consumers at deep discounts.

40
Q

What are the two strategic issues in Retailing?

A
  1. Location.

2. Store Image.

41
Q

Name some characteristics for Location in Retailing:

A
  • Location of firms target market within the trading area.
  • Kinds of products being sold.
  • Availability of public transportation.
  • Customer characteristics
  • Competitors locations/destinations in close proximity to complementary retailers.
42
Q

Name some characteristics for Store Image in Retailing:

Important question thinks of value and brand awareness and attracting consumers.

A 
Store environment - atmospheric.
Merchandise Quality.
Service quality (level)
Types of products we sell 
Help locate and find products in the store itself (STORE IMAGE and ATMOSPHERE attract customers) - atmospherics - present to the marketplace.
43
Q

Name the three challenges in relation to Retailers:

A
  1. Consumers want more individualised and independent experiences with their shopping and purchasing. Hence why innovations such as shop and go and self-checkout are both effective and both working so well with each other.
  2. Need to merge and integrate technology.
  3. Power shift away from retailers to customers.
44
Q

Future of Retail:

A
  • New formats/concepts
    Experience!
    Technology
    Retail design

MKTG100 (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions