MAR 14 Flashcards
The process of delivering products and services to customers?
distribution
Resellers, brokers, and facilitators that improve the effectiveness of a marketing channel
channel intermediaries
typical marketing channel intermediary?
retailer
agent
facilitator
wholesaler
first step in designing a channel strategy?
understanding the desires of the target customer
at minimum, a channel of distribution consists of a producer and a(n) ____.
customer
When marketers determine the distribution intensity for a product, they are determining the ____ of a channel level.
width
Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products?
selective
A conventional channel consists of one or more ___ producers, wholesalers, and retailers.
independent
____ conflict occurs between different levels of the same channel, while ___ conflict occurs among firms at the same level of the channel.
vertical; horizontal
___ is the coordination of all activities related to the transportation or delivery of products . and services that occur within the countries of a single business or organization.
logistics
Marketing channel
network of all parties involved in moving products or services from producers to consumers or business customers
agents and brokers do not take title to the product
channel strategies determine the best way to make a product available to the target market, while keeping in mind the marketing objectives.
choosing the right channel of distribution
Channels of distribution provide…
time, place, and ownership utility
What is the term for the firms and individuals who help move a product to the consumer or the business user?
channel intermediaries
At minimum, a channel of distribution consists of a producer and a(n) ________
customer
Expense of Distribution Channels
The expenses that are associated with marketing channels (distribution, storage, shipment, etc.) can account for 30% to 50% of the ultimate selling price of a product.
These distribution costs include freight and storage expenses, along with the profits earned by wholesalers and retailers.
70% of all products
intensive distribution strategy
many locations as possible. (ma)
chapstick (30)
selective distribution strategy
companies will seek out a few intermediaries and will gain the necessary market coverage through control and lower costs (than by using intensive distribution)
Camera (3)
exclusive distribution
companies significantly limit the number of intermediaries to further increase control over the channel. Intermediaries are often given exclusive rights to a geographic area; this strategy is used to maintain a perception of exclusivity and prestige. ( the more exccclusive the better
Fine glass (1)
a conventional channel
, all members work independently, each seeking to gain maximum profits.
vertical marketing system
is where one channel member takes control of the other members, either through an acquisition, or through developing their own capabilities.
Make more profit.
horizontal marketing system
A horizontal marketing system occurs when two or more channel members form an alliance to share resources. Examples include banks or quick serve restaurants opening branches in grocery stores.
goal of logistics
is to ensure that the right things happen
supply chain mgmt
expands this to include all firms that impact the distribution process
Physical distribution
movement of products from point A to point B.
Inventory
storage of goods that await transport or shipping.
shippers
own the goods being distributed and are most often the producer of the goods.
carriers
those companies who physically transport goods from shippers to consignees (such as freight carriers, railroads, etc.)
consignees
those who receive the distributed goods and include wholesalers, retailers, etc.
marketing functions
exchange negotiate price place orders make sales
distribution channel
choosing right channel with 4 p’s
cant go back change select distribution channel stuck
Inbound logistics
entails the movement of products (say tires) from suppliers (Michelin) to companies (GM).
1 manufactor process
Outbound logistics
the movement of products from company to customer (car buyer). In the case above, this movement includes the use of an intermediary (car dealership).
consumer
Reverse logistics
the methods that are used to move products backwards through the supply chain for return or repair. Take for example a defective tire that was installed on a new car. The car buyer will return to their contact point, the car dealership, who in turn will take possession of the tire and work it back through the channel (to the tire manufacturer). In some cases, the process could bypass one or more members of the channel.
