Exam 3 - Chp 12

Question 1

Marketing Channel (Channel of Distribution)

Answer 1

A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer

Question 2

Channel Members

Answer 2

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

Question 3

Discrepancy of Quantity

Answer 3

The difference between the amount of product produced and the amount an end user wants to buy

Question 4

Discrepancy of Assortment

Answer 4

The lack of all items a customer needs to receive full satisfaction from a product or products

Question 5

Temporal Discrepancy

Answer 5

A situation that occurs when a product is provided but a customer is not ready to buy it

Question 6

Spatial Discrepancy

Answer 6

The difference between the location of a producer and the location of widely scattered markets

Question 7

Retailer

Answer 7

A channel intermediary that sells mainly to consumers

Question 8

Merchant Wholesaler

Answer 8

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.

Question 9

Agents and Brokers

Answer 9

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.

Question 10

Logistics

Answer 10

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

Question 11

Direct Channel

Answer 11

A distribution channel in which producers sell directly to consumers

Question 12

Dual Distribution (Multiple Distribution)

Answer 12

The use of two (or more) channels to distribute the same product to target markets

Question 13

Strategic Channel Alliance

Answer 13

A cooperative agreement between business firms to use the others already established distribution channel

Question 14

Supply Chain

Answer 14

The connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

Question 15

Supply Chain Management

Answer 15

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

Question 16

Intensive Distribution

Answer 16

A form of distribution aimed at having a product available in every outlet where target customers might want to buy it

Question 17

Selective Distribution

Answer 17

A form of distribution achieved by screening dealers to eliminate all but a few in any single area

Question 18

Exclusive Distribution

Answer 18

A form of distribution that establishes one or a few dealers within a given area

Question 19

Arms-Length Relationships

Answer 19

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

Question 20

Integrated Relationships

Answer 20

A relationship between companies that is tightly connected, with linked processes across and between firm boundaries, and high levels of trust and interfirm commitment

Question 21

Cooperative Relationships

Answer 21

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

Question 22

Logistics Information System

Answer 22

The link that connects all of the logistics components of the supply chain

Question 23

Supply Chain Team

Answer 23

An entire group of individuals who orchestrates the movement of goods, services, and information from the source to the consumers

Question 24

Order Processing System

Answer 24

A system whereby orders are entered into the supply chain and filled

Question 25

Electronic Data Interchange (EDI)

Answer 25

Information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmissions of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission

Question 26

Inventory Control System

Answer 26

A method of developers and maintaining an adequate assortment of materials or products to meet a manufacturers or a customers demand

Question 27

Material Requirement Planning (MRP, Materials Management)

Answer 27

An inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer

Question 28

Distribution Resource Planning (DRP)

Answer 28

An inventory control system that manages the replenishment of goods from the manufacturers to the final consumer

Question 29

Automatic Replenishment Program

Answer 29

An inventory management system that triggers shipments only once a good is sold to the customer, the program uses (EDI) linkage connected with barcode scanners at the point of purchase, so supplier can view the inventory being held at the next tier of the supply chain in real time

Question 30

Materials-handling System

Answer 30

A method of moving inventory into, within, and out of the warehouse

Question 31

Outsourcing (Contract Logistics)

Answer 31

A manufacturers or suppliers use of an independent third party to manage an entire function of the logistics system, such as transportations, warehousing, or order processing

Question 32

Electronic Distribution

Answer 32

A distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable through satellite transmissions of electronic signals

Question 33

Channel Power

Answer 33

The capacity of a particular marketing channel member to control or influence the behavior of other channel members

Question 34

Channel Control

Answer 34

A situation that occurs when one marketing channel member intentionally affects another members behavior

Question 35

Channel leader (Channel Captain)

Answer 35

A member of a marketing channel that exercises authority and power over the activities of other channel members

Question 36

Channel Conflict

Answer 36

A clash of goals and methods between distribution channel members

Question 37

Horizontal Conflict

Answer 37

A channel conflict that occurs among channel members on the same level

Question 38

Vertical Conflict

Answer 38

A channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer

Question 39

Channel Partnering (Channel Cooperation)

Answer 39

The joint effort of all channel members to create a channel that serves customers and creates a competitive advantage