ch. 10: marketing channels

direct marketing channel indirect marketing channel *an intermediary = organization between the company and the final buyer

________ ______________ _____________: no intermediary levels. __________ _____________ _____________: one or more intermediary levels.

Clayton Act of 1914 marketing logistics (also called physical distribution)

__________ _______ ___ ________: exclusive arrangements are legal as long as the parties do not substantially lessen competition or tend to create a monopoly and enter the agreement voluntarily. ____________ ____________ is the planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to consumption.

vertical conflict horizontal marketing system *ex. of a horizontal marketing system are many restaurants in a mall cafeteria, including a McDonald's.

___________ _________ occurs between different levels of the same channel. ___________ _______________ ___________: two or more companies at one level join together to follow a new marketing opportunity.

storage warehouses distribution centers

___________ ______________ store goods for moderate to long periods. ________________ _________ are large, highly automated warehouses that receive goods, take orders, fill them, and deliver goods to customers.

customer-centered logistics outbound logistics, inbound logistics, and reverse logistics

____________-___________ _____________: marketplace to the factory or sources of supply. what are three examples of this kind of logistics?

channel conflict horizontal conflict

_____________ __________: disagreements among marketing channel members on goals, roles, and rewards. _______________ ___________ occurs among firms at the same level of the channel.

marketing channel design

_____________ ___________ _________ involves designing effective marketing channels by: -analyzing costumer needs -setting channel objectives -identifying major channel alternatives, and -evaluating the alternatives.

multimodal logistics information management

______________ transportation is combining two or more modes of transportation (piggyback, fishy-back, train-ship, air-truck). ___________ _______________ _____________: flows of information closely linked to channel performance.

disintermediation law

_________________ occurs when product or service producers cut out marketing channel intermediaries or when radically new types of channel intermediaries displace traditional ones. the decision is usually technology or _______ driven to eliminate a channel.

outsourcing third-party logistics (3PL) provider *3PL provider could consolidate shipping requirements, which would be a win-win-win situation for all.

examples of integrated logistics management include: forming cross-functional teams inside the firm, building logistics partnerships, and ______________ to third-party logistics providers. a ________ _________ ____________ ____________ performs any or all of the functions to get a client's product to the market.

transportation modes

factors affected by choice of _________________: pricing of products, delivery performance, condition of goods, and customer satisfaction. ________ of transportation include trucks, railroads, water carriers, pipelines, air carriers, and the internet.

the one on the left, without a distributor, is many-to- many. the one on the right, with a distributor, is many-to-one.

figure 10.1: how a distributor reduces the number of channel transactions.

this figure shows both consumer and business channels of different lengths. review who holds title to the product or good when it is in the consumer's hands.

figure 10.2: consumer and business marketing channels.

review!!

figure 10.5: supply chain management

electronic data interchange (EDI), which is an older way for businesses to communicate, and vendor-managed inventory (VMI), which is a newer way. integrated logistics management

information can be shared and managed through what two types of logistics IM? ______________ _____________ _______________ emphasizes teamwork both inside the company and among all the marketing channel organizations.

physical distribution, financing, and risk taking. channel levels

key functions performed by channel members: help to fulfill the completed transactions - ____________ _______________, ______________, and _______ ____________. _____________ __________: a layer of intermediaries that performs work in bringing the product and its ownership closer to the final buyer.

reverse logistics up

marketing logistics also includes ____________ _____________, which involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers. when there is a higher defect rate, prices usually go ______.

outbound logistics inbound logistics

marketing logistics involves not only ____________ ____________, which is moving products from the factory to resellers and ultimately to customers, but also ____________ _____________, which is moving products and materials from suppliers to the factory.

direct marketing channel indirect marketing channels

part A of this figure shows several common consumer distribution channels. channel 1, called a __________ _______________ ___________, has no intermediary levels, that is, the company sells directly to consumers. the remaining channels are _________ _____________ ____________, containing one or more intermediaries.

sales force intermediaries

part B of this figure shows some common business distribution channels. The business marketer can use its own ________ _______ to sell directly to business customers. or it can sell to various types of ________________, which in turn sell to these customers.

pro is not as much heavy duty accounting and bookkeeping for many-to-one, con is more heavy duty accounting and bookkeeping for many-to-many.

pros and cons of many-to-many and many-to-one: pro is elevated customer intimacy with many to many model; con of many-to-one is lower customer intimacy. pro is lower transportation costs for many-to-one; con of many-to-many is higher transportation.

exclusive distribution exclusive dealing

public policy and distribution decisions: many producers and wholesalers like to develop exclusive channels for their products. when the seller allows only certain outlets to carry its products, this strategy is called _____________ _______________. when the seller requires that these dealers not handle competitors' products, the strategy is called _____________ ____________.

upstream partners downstream partners

supply chains: _____________ ___________ supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. _______________ _____________ serve as distribution channels that link the firm and its customers.

customer service functions *Six Sigma = 1 in a million defects (very difficult to implement).

the goal of marketing logistics is to deliver a targeted level of ______________ _________ at the least cost. logistic ___________ include: warehousing, inventory management, transportation, and logistics information management.

foot traffic, brand recognition, and cheaper rent than having to create your own building. constricted by the mall's operating hours and lots of competition.

what are some of the pros of the horizontal marketing system for our McDonald's example? what are some of the cons of the horizontal marketing system for our McDonald's example?

physical flow of products flow of ownership payment flow information flow promotion flow

what are the types of flows that connect the institutions in the channels?