Marketing Ch.15

Question 1

Marketing Channel

Answer 1

individuals and firms involved in the process of making a product or service available for use or consumption

Question 2

Transactional function

Answer 2

intermediaries buy and sell products and services. Shares risk with the producer.

Question 3

Logistical Function

Answer 3

• the intermediary gather/sort/disperse products

Question 4

Facilitating Function

Answer 4

the intermediaries make a transaction easier for buyers by things like credit cards.

Question 5

Time Utility

Answer 5

intermediaries have the product/service available when you want it

Question 6

Place Utility

Answer 6

intermediaries have the product/service available where you want it

Question 7

Form Utility

Answer 7

intermediaries enhance products/services to make it more appealing to buyers

Question 8

Possession Utility

Answer 8

intermediaries help buyers take possession of a good or service.

Question 9

Direct Channel for consumer goods

Answer 9

producer and ultimate consumers deal with each other directly. No intermediaries, producer preforms all channel functions

Question 10

Indirect Channel

Answer 10

intermediaries are inserted between producer/consumer. Preform numerous channel functions.

Question 11

Direct Channel- for business goods

Answer 11

Firms maintain their own Salesforce and preform channel functions. Buyers are large and well defined. Extensive negotiations, products have high unit value, require hands on expertise to install/use

Question 12

Electronic Marketing Channels -

Answer 12

employ the internet to make products available for consumption or use. Combine traditions and electronic intermediaries

Question 13

Direct Marketing Channels

Answer 13

allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with salesperson.

Question 14

Multichannel Marketing

Answer 14

blending of different communication and delivery channels that are mutually reinforcing in attracting and retain relationships with consumers.

Question 15

Dual distribution-

Answer 15

an arrangement where a firm reaches different segments of buyers by employing 2+ different types of channels for the same basic product.

Question 16

Strategic Channel Alliance-

Answer 16

where one firms marketing channel is used to sell another firms products.

Question 17

Vertical Marketing Systems-

Answer 17

professional managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

Question 18

Corporate vertical marketing system

Answer 18

combination of successive stages of production and distribution under a single ownership.

Question 19

Forward Integration

Answer 19

firms owning intermediary at next level down

Question 20

Backward Integrating

Answer 20

when a retailer owns manufacturing facilities

Question 21

Contractual Vertical Marketing System

Answer 21

independent product and distribution firms integrate their efforts on a contract to obtain greater marketing impact

Question 22

Wholesaler Sponsored Voluntary Chains-

Answer 22

wholesaler develops a contractual relationship with small independent retailers to standardize and coordinate buying practices.

Question 23

Retailer-sponsored cooperatives-

Answer 23

when small independent retailers form an organization that operates a wholesale facility cooperatively.

Question 24

Manufacturer Sponsored- retail franchise systems

Answer 24

prominent in automobile. Manufacturer licenses dealers to sell item subject to various sales and service conditions.

Question 25

Manufacturer Sponsored Wholesale Franchise Systems

Answer 25

in soft drink industry. Where pepsi licenses wholesalers(bottlers) that purchase concentrate from pepsie and then carbonate, bottle, promote and distribute its products

Question 26

Service Sponsored Retail Franchise Systems-

Answer 26

used by firms that have designed a unique approach for preforming a service and wish to profit by selling the franchise to others

Question 27

Service Sponsored Franchise System

Answer 27

franchisors license individuals or firms to dispense a service under a trade name and specific guidelines

Question 28

Administered vertical marketing systems

Answer 28

achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. Ex. Proctor and Gamble

Question 29

density

Answer 29

• number of stores in a geographical location and type of intermediaries to be used at the retail level.

Question 30

Intensive Distribution

Answer 30

firm tries to pace its products in as many outlets as possible. Usually chosen for convenience products.

Question 31

Exclusive Distribution

Answer 31

opposite of intensive distribution b/c the firm selects only one retailers in a specific geographical area

Question 32

Selective Distribution

Answer 32

lies between intensive and exclusive. Firm selects a few retailers.

Question 33

Information requirement-

Answer 33

choose intermediaries that will communicate with buyers through in store displays…

Question 34

Convenience Requirement-

Answer 34

proximity or driving time to a retailer outlet. Ease of access

Question 35

Variety Requirement

Answer 35

reflects buyers interest having numerous competing and complementary items from which to choose.

Question 36

Pre or post sale services Requirement

Answer 36

provided by intermediaries are an important buying requirement for products such as large household appliances that require delivery/installation.

Question 37

Channel Conflict

Answer 37

when one channel member believes another channel is engaged in behavior that prevents it from achieving its goals

Question 38

Vertical Conflict

Answer 38

occurs between different levels in a marketing channel (ex. Wholesaler and retailer)

Question 39

Disintermediation

Answer 39

When a channel member bypasses another

Question 40

Horizontal Conflict

Answer 40

occurs between intermediaries at the same level.

Question 41

Dual Distribution

Answer 41

not illegal, can be anticompetitive. When a manufacturer distributes through its own vertically integrated channel in competition with independent wholesalers and retailers that also sell its products.

Question 42

Vertical Integration

Answer 42

not illegal, practice is sometimes subject to legal action

Question 43

Exclusive Dealing

Answer 43

exists when a supplier requires channel members to sell only its products or restricts distributors from selling directly competitive products.

Question 44

Full line forcing

Answer 44

special kind of tying arrangment. Carry full line or none

Question 45

Logistics

Answer 45

involves those activities that focus on getting the right amount of the right products to the right places

Question 46

Logistics Management

Answer 46

practice of organizing the cost effective flow of raw materials to finished goods and info to satisfy consumers

Question 47

Total Logistics Cost

Answer 47

includes expenses associated with transportation, handling, warehousing, inventory, stockouts, order processing

Question 48

Vendor-managed inventory

Answer 48

pplier determines the product amount and assortment a customer needs and automatically delivers it

Question 49

reverse logisticts

Answer 49

Process of reclaiming recyclable a reusable materials.