Exam 3 - Chp 12 Flashcards
Marketing Channel (Channel of Distribution)
A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer
Channel Members
All parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving product from the manufacturer into the hands of the final consumer
Discrepancy of Quantity
The difference between the amount of product produced and the amount an end user wants to buy
Discrepancy of Assortment
The lack of all items a customer needs to receive full satisfaction from a product or products
Temporal Discrepancy
A situation that occurs when a product is provided but a customer is not ready to buy it
Spatial Discrepancy
The difference between the location of a producer and the location of widely scattered markets
Retailer
A channel intermediary that sells mainly to consumers
Merchant Wholesaler
An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes titles to goods, stores them in its own warehouses, and later ships them.
Agents and Brokers
Wholesaling intermediaries who do not take title to a product but facilitates its sales from producer to end user by representing retailers, wholesalers, or manufacturers.
Logistics
The efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related information, into, through, and out of channel member companies. Logistics functions typically include transportation and storage of assets, as well as their sorting accumulations, consolidation, and or allocation for the purpose of meeting customer requirements
Direct Channel
A distribution channel in which producers sell directly to consumers
Dual Distribution (Multiple Distribution)
The use of two (or more) channels to distribute the same product to target markets
Strategic Channel Alliance
A cooperative agreement between business firms to use the others already established distribution channel
Supply Chain
The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function
Supply Chain Management
A management system that coordinates and integrates all the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
Intensive Distribution
A form of distribution aimed at having a product available in every outlet where target customers might want to buy it
Selective Distribution
A form of distribution achieved by screening dealers to eliminate all but a few in any single area
Exclusive Distribution
A form of distribution that establishes one or a few dealers within a given area
Arms-Length Relationships
A relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
Integrated Relationships
A relationship between companies that is tightly connected, with linked processes across and between firm boundaries, and high levels of trust and interfirm commitment
Cooperative Relationships
A relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each companies goals
Logistics Information System
The link that connects all of the logistics components of the supply chain
Supply Chain Team
An entire group of individuals who orchestrates the movement of goods, services, and information from the source to the consumers
Order Processing System
A system whereby orders are entered into the supply chain and filled
