Place Flashcards
Define Place
-The ‘supply chain’ element of the marketing mix, which is a set of independent firms which are responsible for making products available to consumers.
Name and explain the 2 types of partner in a firms supply chain.
UPSTREAM
- Supply industrial products required to manufacture and product
DOWNSTREAM
- Marketing and distribution channels that supply consumer products to end consumers.
Define the Value Delivery Network, and name the 5 key activities performed by the supply chain.
- Composed of the firm itself and all other firms in its supply chain that partner together to provide superior customer value.
Key Activities
Sourcing, Manufacturing, Warehousing, Distribution & Return.
Name and define the 2 types of Distribution Channel, and the 2 types of Marketing Intermediary.
Distribution Channels
DIRECT- Where Manufacturer sells direct to consumers, with no intermediaries involved.
INDIRECT- When a firms distribution channel contains 1 or more channel intermediary to aid distribution.
Types of Intermediary
RETAILERS- Involved with all activities related to selling products to final consumers
WHOLESALERS- Involved with all activities related to selling products to other businesses for further processing or resale.
Name the 2 types of Intermediary used in Business Distribution channels
Business Distributors
Manufacturer reps/ sales branches.
Names and Define the 4 types of Marketing Channel, what a channel level is and how they add value.
CONVENTIONAL
Manufacturer - Wholesaler - Retailer - Consumers
VERTICAL
(Manufacturer+WHolesaler+Retailer) Integrated - Consumers
HORIZONTAL
Numerous levels of manufacturers, wholesalers and retailers all interact to serve consumers.
OMNI-CHANNEL
Where a firm utilises numerous types of Marketing and Distribution channel simultaneously (e.g conventional and direct channels)
- Channel levels are a layer of intermediaries who perform an activity to bring products to consumers.
- Channels add value through reducing number of transactions that a firm is involved in, and arrange products into assortments desired by consumers.
Define Channel Conflict
When disagreement occurs between channels members over goals, roles and responsibilities.
Name and explain the 2 types of channel conflict.
HORIZONTAL CONFLICT
- Occurs between intermediaries at the same channel level
VERTICAL CONFLICT
- Occurs between intermediaries at different channel levels
Name and explain the 5 key causes of channel conflict
Role Incongruities - Deviation from assigned role
Resource scarcity - Disagreement over resource allocation
Clash of Market Domain- intermediary invades anothers geographically defined territories.
Goal incompatibilities - Difference of opinion over goals
Communication difficulties
Name the 3 stages of Managing Channel Conflict
- Detecting Conflict
- Appraising effect of conflict
- Resolving Conflict
Explain how detecting conflict occurs
Done via monitoring. Firms monitoring strategy can be archetyped by whether they monitor the process or the outcome or intermediaries, and if they have high levels of information exchange or low levels of information exchange with intermediaries.
FOX - Process/high
OWL- Output/high
DOG- Process/low
BAT- Output/low
How do firms Appraise the effects of channel conflict?
- Asses importance of conflict of firms efficiency
- Asses the intensity of conflict between channel members.
Name 3 ways firms Resolve Channel Conflict
Distribution Executive
Joint decision making
Channel commitees
Define Marketing Logistics
The physical flow of goods and services from their point of origin to their point of consumption
Name and explain the 3 types of Marketing Logistics.
INBOUND- Flow of industrial products into firm from supplier
OUTBOUND- Flow of consumer products and industrial products from firm to consumers and other firms
REVERSE- Flow of products from consumers back to intermediaries or the firm.
