Unit 7 - P for PLace (distribution)

Question 0

what is channel of distribution?

Answer 0

facilitates movement of product from producer to final customer

Question 1

what is supply chain?

Answer 1

activities necessary to turn raw materials into a good or service and put it in the hands of the consumer

Question 2

what are the functions of distribution channels?

Answer 2

to create efficiencies by reducing # of transactions
to ease the flow of goods from produce to customer
to “push” n promote the brands
risk taking
-storing &managing inventory
-providing credit

Question 3

what are the steps in distribution planning?

Answer 3

1) develop distribution objectives
2) evaluate internal/external environmental influences
3) choose a distribution strategy
4) develop distribution tactics

Question 4

what are long channels used for?

Answer 4

consumer goods
inexpensive & simple goods (low inv)
small products
standardized products
goods sold in dispersed markets 
good sold frequently & to many customers

Question 5

what are short channels used for

Answer 5

industrial products
expensive & complex goods
customized products
service
products sold in geographically concentrated market
products bought infrequently by relative small # of customers

Question 6

what is conventional?

Answer 6

channel which consists of 1 or more independent producers, wholesalers & retailers
each separate business

Question 7

what is vertical ms?

Answer 7

producers wholesales and retailers act as a unified system

Question 8

what are corporate vms?

Answer 8

more than one stage of the distribution channel under one ownership

Question 9

what is contractual VMS?`

Answer 9

most popular, inter organizational relationships formalized through contracts that spell out each members rights & obligations (franchise)

Question 10

what is administrative vms?

Answer 10

channel members are independent w/ high level of interorganizational management by informal coordination. agree to adopt uniform accounting policies, etc & promotional activites.
one channel member dominates, has a channel leader

Question 11

what is horizontal ms?

Answer 11

two or more firms at the same channel level work together for a common purpose

Question 12

what are the types of distribution strategy?

Answer 12

intensive, selective, exclusive

Question 13

what is intensive?

Answer 13

selling through all suitable wholesalers or retailers
inexpensive fast moving consumer convenience good
impulse purchase/ high number
good purchased frequently

Question 14

what is selective?

Answer 14

fewer outlets than intensive but more than exclusive distribution
shopping goods, medium priced goods
good purchased only occasionally
goods where purchased is planned rather than impulsive

Question 15

what is exclusive?

Answer 15

exists when a manufacturer gives a middleman the sole right to sell a product in a defined geographical area 
specialty product (high price, infrequent purchase, high involvement, planned purchase, niche products)

Question 16

what are channel partners?

Answer 16

are essential for marketing to achieve its objectives of having

Question 17

what type of channel partners are wholesalers?

Answer 17

obtain large quantities
store & break down into smaller units 
take title to goods
assume risk of selling & obselescene
three types: merchant wholesalers, brokers, & manufactures agents

Question 18

what type of channel partner are retailers

Answer 18

buy products from wholesalers, agents or distributors & then sell them to consumers
vary by the types of products they sell, their sizes, prices they charge, level of service, convenience or speed they offer

Question 19

what is direct distribution?

Answer 19

typically this a transaction between the producer & the end user

Question 20

what is indirect distribution?

Answer 20

consists of intermediaries between the producer & the user

Question 21

what is sourcing?

Answer 21

hiring & evaluating suppliers

Question 22

what is procurement

Answer 22

purchasing the necessary goods n services

Question 23

what is demand planning?

Answer 23

the process of estimating how much a good or service a customer will buy

Question 24

what is production scheduling

Answer 24

the management of the resources, events & processes needed to create an offering

Question 25

what are sourcing decisions?

Answer 25

deciding which suppliers to use, generally made periodically

Question 26

what is inventory control?

Answer 26

the process of ensuring your firm has an adequate amount of products to meet customer needs

Question 27

what is safety stock?

Answer 27

backup inventory that serves as a buffer in case of a surge in demand

Question 28

what is shrinkage

Answer 28

term used to describe a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors & supplier fraud

Question 29

what is just in time inventory?

Answer 29

system in which a firm keeps very little inventory on hand

Question 30

what is vendor managed inventory?

Answer 30

the practice of having your suppliers manage your inventories

Question 31

what are warehouses?

Answer 31

are needed to accommodate supply & demand changes for products

Question 32

what are distribution centers

Answer 32

warehouses or storage facilities where the emphasis is on processing & moving goods on to wholesalers, retailers, or consumers rather than on to storage

Question 33

what is SKU?

Answer 33

stock keeping unit- unique ID numbers are used to find products

Question 34

what are EDI?

Answer 34

Electronic data interchange

-computer to computer document exchange

Question 35

what goes into transportation process?

Answer 35

logistics, trucks, water, air, railroads, pipelines