Place

Question 1

Place in marketing meas

Answer 1

Distribution

Question 2

A mkt channel or distribution channel

Answer 2

specific set of interdependent organizations that play a role in making a product/service available for use/consumptions by the consumer/business customers

Question 3

Value delivery network

Answer 3

composed of company, suppliers, distributors, customers who partner with each other to improve the performance of the entire system in delivering customer value

Question 4

Channel level

Answer 4

layer of intermediaries that performs some work in bringing the product and its ownership closer to final buyer

Question 5

5 major types of channel partners

Answer 5

retailers
wholesalers
drop-shipper
rack jobbers
brokers

Question 6

Retailers

Answer 6

• primarily sell to consumers
• also buy suppliers at other retailers

Question 7

wholesalers

Answer 7

sells items to retail stores that will then sell them to individual customers for a higher price

Question 8

drop shipper

Answer 8

any kind of mail order is, in channel terminology, “drop
shipped.”

Question 9

rack jobbers

Answer 9

a company or trader that has an agreement with a retailer to display and sell products in a store.

Question 10

broker

Answer 10

never take possession of the goods,
they only negotiate the transfer.

e.g stock brokers, insurance

Question 11

direct mkt channel

Answer 11

a mkt channel that has no intermediary level, sells directly to customers

Question 12

indirect marketing channel

Answer 12

a marketing channel containing one or more intermediary levels

Question 13

Conventional distribution

Answer 13

a channel consisting of one or more independent producers, wholesales, retailers. Each seperate business seek to mazimize its own profits

producer-> wholesalers -> retailers -> consumers

Question 14

Vertical Marketing Systems

Answer 14

the producer of a product owns
or directly controls some or all of its channel partners.

(work together) (producer, wholesaler, retailer) -> consumer

Question 15

3 kinds of VMS

Answer 15

• Corporate VMS
• Administered VMS
• Contractual VMS (Franchise)

Question 16

Corporate VMS

Answer 16

large organization**, such as George Weston Limited, that owns many food producers and hundreds of food retailers; and Zara, which owns almost every stage of its distribution.

Question 17

ADMINISTERED VMS

Answer 17

less formal organization where one large
company can wield influence simply due to its size and power—such as General Electric.

Question 18

CONTRACTUAL VMS (FRANCHISE)

Answer 18

A contractual vms in which a channel member (franchisor), links several stages in the production distribution process

Question 19

3 types of franchises

Answer 19

1. manufacter-sponsored retailer franchise system
2. manufacturer-sponsored wholesaler
   franchise system
3. the service-firm sponsored
   franchise system

Question 20

Horizontal Marketing Systems

Answer 20

a system or organization of many companies, all of
which operate at the same level in the channel, such as the Star Alliance group of airlines
that share customers and share frequent flyer points.

Question 21

Multichannel (Hybrid) Distribution Systems

Answer 21

combination of direct channels and indirect channels to reach its final customers (usually customers in different market segments) in a number of different ways.

Question 22

partner relationship management (PRM) to

Answer 22

forge longterm partnerships with channel members.

Question 23

Channel conflict

Answer 23

disagreements among mkt channel members on goals/roles/rewards

Question 24

Evaluating channel members

Answer 24

recognize and reward intermediaries
who are performing well and adding good value for consumers.

Question 25

Disintermediation

Answer 25

replace intermediary by a different kind of intermediary e.g: Netflix replaced BlockBuster

Question 26

Three types of Distribution Strategies

Answer 26

- intensive distribution - selective distribution - exclusive distribution

Question 27

Intensive distribution

Answer 27

stocking the product in as many outlets as possible -> convenience store strategy

Question 28

Selective distribution

Answer 28

the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products (few, carefully selected)

Question 29

exclusive distribution

Answer 29

giving a limited number of dealers the exclusive right to distribute the company's products in their territories -> purposefully limit

Question 30

4 Major channel design decisions

Answer 30

1. analyzing customer needs 2. setting channel objectives 3. identifying major alternatives 4. evaluating the major alternatives

Question 31

setting channel objectives 3 decisions + 5 influences

Answer 31

- targeted level of customer service - which segments to serve - best channels to use in each case - influenced by nature of company, its products, mkt intermediaries, competitors, environment

Question 32

what to consider for major alternatives 3

Answer 32

- types of intermediaries (indirect/direct) - number of intermediaries (intensive -> exclusive) - responsibilities for each member

Question 33

alternatives allocation ways 3

Answer 33

- **economic criteria,** a company compares the likely **sales, costs, and profitability of different channel alternatives**. - Using **control issues** means giving them some **control over the marketing **of the product, and **some** intermediaries** take more control than others**. - Using **adaptive criteria **means the company wants to** keep the channel flexible** so that it can adapt to environmental changes.

Question 34

Supply chain management

Answer 34

**manage upstream and downstream value-added flows** of materials, final goods, and related information **among supplers/company/resellers and final consumers**

Question 35

marketing logistices (physical distribution)

Answer 35

planning, implementing, controlling the physical flow of materials, final goods and related info from points of origin to point of consumptions to meet customer requirement at a profit

Question 36

Just-in-time

Answer 36

managing things so that the parts or supplies you need arrive just in time to be used in the manufacturing process.

Question 37

outbound distribution

Answer 37

(moving products from the factory to resellers and ultimately to customers),

Question 38

inbound distribution

Answer 38

(moving products and materials from suppliers to the factory)

Question 39

reverse distribution

Answer 39

(moving broken, unwanted, or excess products returned by consumers or resellers).

Question 40

goal of marketing logistics

Answer 40

provide a targeted level of customer service at the least cost.

Question 41

warehouse

Answer 41

large building where items are stored.

Question 42

distribution centre,

Answer 42

- large building where items are stored. nothing is stored for very long; it’s just a point for shipments to come in, then be re-distributed (say, to local retailers) and go out.