Exam 3 - Chapter 15 Flashcards
Product Attributes
complex/expensive or standardized? durable or fragile?
Intensive Distribution
uses all available outlets to distribute a product convenience products multiple channels used ex: soda/candy
an agreement whereby the products of one organization are distributed through the marketing channels of another not competitors but similar markets instead
Strategic Channel Alliance
the inventory level that signals the need to place a new order
Reorder Point
organizational and system-wide coordination of operations and partnerships to meet customers’ product needs
Operation Management
the movement of products from where they are made to intermediaries and end users most expensive physical distribution function
Transportation
complex/expensive or standardized? durable or fragile?
Product Attributes
Exclusive Distribution
uses a single outlet in a fairly large geographic area to distribute a product for products purchased infrequently/consumed over a long period of time ex: cars
Form Utility
(sometimes) formed by assembling, preparing, or otherwise refining the product to suit customer needs ex: tailoring a suit, food in restaurant
Customer Characteristics
business or consumer market?
Industrial Distributor
an independent business organization that takes title to industrial products and carries inventories
uses a single outlet in a fairly large geographic area to distribute a product for products purchased infrequently/consumed over a long period of time ex: cars
Exclusive Distribution
storage space and related physical distribution facilities that can be leased by companies
Public Warehouses
wholesalers take possession of products but agent do not
Manufacturer’s Agents vs. Wholesalers
Selecting Marketing Channels
based on one of more of 6 characteristics: 1) customer characteristics 2) product attributes 3) type of organization 4) competition 5) marketing environmental forces 6) characteristics of intermediaries
the decisions and activities that make products available to customers when and where they want to purchase them
Distribution
Key Supply Chain Management Concepts
1) raw materials 2) components 3) manufacturer 4) (wholesaler) 5) retailer 6) consumer *back and forth/upstream and downstream
Warehousing
the design and operation of facilities for storing and moving goods creates time utility/stabilizes prices and availability of seasonal items
Channel Power
the ability of one channel member to influence another channel member’s goal achievement
very important if each member is to gain something enable retailers, wholesalers, suppliers, and logistics providers to speed up inventory replenishment, improve service, cut costs same vertical goal
Channel Cooperation
Channel Cooperation
very important if each member is to gain something enable retailers, wholesalers, suppliers, and logistics providers to speed up inventory replenishment, improve service, cut costs same vertical goal
Strategic Channel Alliance
an agreement whereby the products of one organization are distributed through the marketing channels of another not competitors but similar markets instead
the ability of one channel member to influence another channel member’s goal achievement
Channel Power
uses only some available outlets to distribute a product for shopping products image may be important ex: Nike shoes
Selective Distribution
Electronic Data Interchange (EDI)
a computerized means of integrating order processing with production, inventory, accounting, and transportation
Supply Management
sourcing of necessary resources, products, and services from suppliers to support all supply-chain members
Environmental Forces
technology government regulations trade agreements labor laws/regulations (etc.)
Upstream
producer back to raw materials
Outsourcing
contracting physical distribution tasks to third parties (experts)
a set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produces and distributed in the right quantities, the right locations, and at the right time
Supply Chain Management
Downstream
producer to consumer
low or high? retail vs. internet?
Competition
organizations that consolidate shipments from several firms into efficient lot sizes
Freight Forwarders
the extra inventory a firm keeps
Safety Stock
based on one of more of 6 characteristics: 1) customer characteristics 2) product attributes 3) type of organization 4) competition 5) marketing environmental forces 6) characteristics of intermediaries
Selecting Marketing Channels
4 Types of Marketing Channel Uses
time, place, possession, and form
1) raw materials 2) components 3) manufacturer 4) (wholesaler) 5) retailer 6) consumer *back and forth/upstream and downstream
Key Supply Chain Management Concepts
producer back to raw materials
Upstream
Megacarriers
freight transportation firms that provide several modes of shipment
Information Technology
created almost seamless distribution processes, reduced costs, increased speed/flexibility/cooperation
Distribution Centers
large, centralized warehouses that focus on moving rather than storing goods
specialists in facilitating exchange;can reduce cost of exchanges by performing certain services or functions efficiently ***while eliminating wholesaler may lower customer prices, it does not eliminate the need for the services they provide! ***eliminating the middle man does not result in reduced cost
Importance of Intermediaries
most common direct purchases from producer to organizational buyers sometimes agents are used as middle men because lots of organizations do not have their own as part of the company
Channel for Business Products
all the activities associated with the flow and transformation of product from raw materials through to the end consumer
Supply Chain
company-operated facilities for storing and shipping products
Private Warehouses
Just-In-Time
an inventory management approach in which supplies arrive just when needed for production or resale
Strategic Issues in Marketing Channels
competitive priorities channel leaderships/ coordination/conflict channel integration
having products available when the customer wants them ex: movies on demand
Time Utility
Safety Stock
the extra inventory a firm keeps
the average time lapse between placing the order and receiving it
Order Lead Time
Importance of Intermediaries
specialists in facilitating exchange;can reduce cost of exchanges by performing certain services or functions efficiently ***while eliminating wholesaler may lower customer prices, it does not eliminate the need for the services they provide! ***eliminating the middle man does not result in reduced cost
business or consumer market?
Customer Characteristics
Inventory Management
reorder point = (order lead time x usage rate) + safety stock
uses all available outlets to distribute a product convenience products multiple channels used ex: soda/candy
Intensive Distribution
Possession Utility
customers have access to the product to use now or store for future use may offer purchase terms or lease, or rental
the receipt and transmission of sales order information 1) entry - customers place orders 2) handling - product availability/assembly 3) delivery
Order Processing
Distribution
the decisions and activities that make products available to customers when and where they want to purchase them
Marketing Channel (Channel of Distribution)
a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain
large or small? need an agent?
Type of Organization
Vertical Integration
controlling all aspects to a product/production ex: farms, mills, factory, store for cereal
the design and operation of facilities for storing and moving goods creates time utility/stabilizes prices and availability of seasonal items
Warehousing
Logistics Management
all activities designed to move the product through the marketing channel to the end user, including warehousing and inventory management ex: UPS song
Manufacturer’s Agents vs. Wholesalers
wholesalers take possession of products but agent do not
Supply Chain
all the activities associated with the flow and transformation of product from raw materials through to the end consumer
Operation Management
organizational and system-wide coordination of operations and partnerships to meet customers’ product needs
the time needed to complete a process
Cycle Time
Time Utility
having products available when the customer wants them ex: movies on demand
a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain
Marketing Channel (Channel of Distribution)
marketing products available in locations where customers wish to purchase them ex: Coke in gas stations
Place Utility
Public Warehouses
storage space and related physical distribution facilities that can be leased by companies
shortages of products that can result in loss of customers
Stockouts
Marketing Intermediaries
middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangement or though the purchase and reselling of products (retailers/wholesalers)
activities used to move products from producers to consumers and other end users
Physical Distribution (Logistics)
a long channel may be the most efficient distribution method for some consumer goods one company doesn’t need to “do everything” firms can specialize in elements of producing results in cost efficiencies and added value to customers
Channel for Consumer Products
Materials Handling
physical handling of tangible goods, supplies, and resources costs involving transportation/handling
Order Processing
the receipt and transmission of sales order information 1) entry - customers place orders 2) handling - product availability/assembly 3) delivery
the dominant leader of a marketing channel or supply channel may be producer, wholesaler, or retailer
Channel Captain/Leader
Physical Distribution (Logistics)
activities used to move products from producers to consumers and other end users
marketing channels influence the rest of the marketing mix!! ex: market presence/accessibility
Significance of Marketing Channels
contracting physical distribution tasks to third parties (experts)
Outsourcing
Horizontal Integration
controlling competitors/other companies who produce the same product ex: P&G making more than one type of laundry detergent
Channel Manegement
all activities related to selling, service, and the development of long-term customer relationships
sourcing of necessary resources, products, and services from suppliers to support all supply-chain members
Supply Management
two or more transportation modes are used in combination ex: piggyback = truck and rail, fishyback = truck and water, and birdyback = truck and air
Intermodal Transportation
Freight Forwarders
organizations that consolidate shipments from several firms into efficient lot sizes
Characteristics of Intermediaries
do the customers/producers receive good service?
the rate at which inventory is used/sold
Usage Rate
created almost seamless distribution processes, reduced costs, increased speed/flexibility/cooperation
Information Technology
Significance of Marketing Channels
marketing channels influence the rest of the marketing mix!! ex: market presence/accessibility
time, place, possession, and form
4 Types of Marketing Channel Uses
technology government regulations trade agreements labor laws/regulations (etc.)
Environmental Forces
customers have access to the product to use now or store for future use may offer purchase terms or lease, or rental
Possession Utility
controlling all aspects to a product/production ex: farms, mills, factory, store for cereal
Vertical Integration
Type of Organization
large or small? need an agent?
Supply Chain Management
a set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produces and distributed in the right quantities, the right locations, and at the right time
freight transportation firms that provide several modes of shipment
Megacarriers
Place Utility
marketing products available in locations where customers wish to purchase them ex: Coke in gas stations
Cycle Time
the time needed to complete a process
Duel Distribution
the use of two or more marketing channels to distribute the same products to the same target market ex: P&G using retailers and e-store
Reorder Point
the inventory level that signals the need to place a new order
Intermodal Transportation
two or more transportation modes are used in combination ex: piggyback = truck and rail, fishyback = truck and water, and birdyback = truck and air
Private Warehouses
company-operated facilities for storing and shipping products
Channel for Business Products
most common direct purchases from producer to organizational buyers sometimes agents are used as middle men because lots of organizations do not have their own as part of the company
a computerized means of integrating order processing with production, inventory, accounting, and transportation
Electronic Data Interchange (EDI)
railroads, trucks, waterways, airways, pipelines
Ex: Modes of Transportation
an independent business organization that takes title to industrial products and carries inventories
Industrial Distributor
(sometimes) formed by assembling, preparing, or otherwise refining the product to suit customer needs ex: tailoring a suit, food in restaurant
Form Utility
Transportation
the movement of products from where they are made to intermediaries and end users most expensive physical distribution function
Ex: Modes of Transportation
railroads, trucks, waterways, airways, pipelines
Stockouts
shortages of products that can result in loss of customers
physical handling of tangible goods, supplies, and resources costs involving transportation/handling
Materials Handling
producer to consumer
Downstream
Channel for Consumer Products
a long channel may be the most efficient distribution method for some consumer goods one company doesn’t need to “do everything” firms can specialize in elements of producing results in cost efficiencies and added value to customers
do the customers/producers receive good service?
Characteristics of Intermediaries
Order Lead Time
the average time lapse between placing the order and receiving it
middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangement or though the purchase and reselling of products (retailers/wholesalers)
Marketing Intermediaries
competitive priorities channel leaderships/ coordination/conflict channel integration
Strategic Issues in Marketing Channels
the use of two or more marketing channels to distribute the same products to the same target market ex: P&G using retailers and e-store
Duel Distribution
controlling competitors/other companies who produce the same product ex: P&G making more than one type of laundry detergent
Horizontal Integration
reorder point = (order lead time x usage rate) + safety stock
Inventory Management
Channel Captain/Leader
the dominant leader of a marketing channel or supply channel may be producer, wholesaler, or retailer
all activities related to selling, service, and the development of long-term customer relationships
Channel Manegement
Usage Rate
the rate at which inventory is used/sold
Competition
low or high? retail vs. internet?
all activities designed to move the product through the marketing channel to the end user, including warehousing and inventory management ex: UPS song
Logistics Management
Selective Distribution
uses only some available outlets to distribute a product for shopping products image may be important ex: Nike shoes
an inventory management approach in which supplies arrive just when needed for production or resale
Just-In-Time
large, centralized warehouses that focus on moving rather than storing goods
Distribution Centers
