mkt ch 13 and 14

supply chain All the organizations and activities involved with the flow and transformation of products from raw materials through to the end customer

An important function of distribution is to create an effective supply chain, which includes all the organizations and activities involved with the flow and transformation of products from raw materials through to the end customer

Digital Distribution

Delivering content through the Internet to a computer or other device

3rd Party Logistics (3PL) firms

Firms that have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently

intensive distribution selective distribution exclusive distribution

Intensive: Using all available outlets to distribute a product selective: using only some available outlets in an area to distribute a product exclusive: using a single outlet in a fairly large geographic area to distribute a product

logistics management

Planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants

channel power

The ability of one channel member to influence another member's goal achievement

Operations management

The total set of managerial activities used by an organization to transform resource inputs into goods, services, or both

multichannel distribution

The use of a variety of marketing channels to ensure maximum distribution

Supply Chain Management

coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer

Megacarriers

freight transportation firms that provide several modes of shipment

Redbox kiosks keep track of what movies are being ordered frequently at that location. The individual kiosks inform the company about past purchases, and the company can adjust the availability of DVDs or Blu-rays its uses to supply the kiosks based on this information. These activities most likely fall under which of the following?

inventory management

distribution centers

large, centralized warehouses that focus on moving rather than storing goods

marketing professionals can reduce costs, boost profits, and better serve customers by effectively integrating activities along the entire length of the supply chain. Doing so requires marketing managers to work with other managers in _____, _____, and _____

operations, logistics, and supply

freight forwarders

organizations that consolidate shipments from several firms into efficient lot sizes

Consider that Redbox locates its kiosks close to shopping centers where customers can pick up a DVD while out shopping for food or other supplies. Based upon this, what type of utility do Redbox's kiosks offer to consumers?

place utility

private warehouses public warehouses

private: Company-operated facilities for storing and shipping products public: Storage space and related physical distribution facilities that can be leased by companies

Warehousing

the design and operation of facilities for storing and moving goods

cycle time

the time needed to complete a process

_____ is the most expensive physical distribution function.

transportation

In addition to producing the popular iPod and iPad, Apple also helps design the components as well as the processors. It also owns its own retail stores. Apple therefore operates in the hardware, software, services, and retail industries. This is an example of _________________.

vertical channel integration

vertical channel integration horizontal channel integration

vertical: Combining two or more stages of the marketing channel under one management horizontal: Combining organizations at the same level of operation under one management

Marketing channels create four types of utility: time, place, possession, and form

-Time utility means making products available when the customer wants them -Place utility is making products available in locations where customers wish to purchase them -Possession utility means that the customer has access to the product to use or to store for future use (occur through ownership or through arrangements that give the customer the right to use the product, such as a lease or rental agreement) -form utility by assembling, preparing, or otherwise refining the product to suit individual customer needs

electronic data exchange (EDI)

A computerized means of integrating order processing with production, inventory, accounting, and transportation

vertical marketing system

A marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers

strategic channel alliance

An agreement whereby the products of one organization are distributed through the marketing channels of another

Just-in-time (JIT)

An inventory-management approach in which supplies arrive just when needed for production or resale

Inventory Management

Developing and maintaining adequate assortments of products to meet customers' needs

marketing intermediaries Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

Most channels have one or more marketing intermediaries that link producers to other intermediaries or to ultimate consumers through contractual arrangements or through the purchase and resale of products

materials handling

Physical handling of tangible goods, supplies, and resources

distribution The decisions and activities that make products available to customers when and where they want to purchase them

The distribution component of the marketing mix focuses on the decisions and activities involved in making products available to customers when and where they want to purchase them

channel captain

The dominant leader of a marketing channel or a supply channel

marketing channel (aka channel of distribution or distribution channel) is a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

The major role of marketing channels is to make products available at the right time at the right place in the right quantities

transportation

The movement of products from where they are made to intermediaries and end users

Radio Frequency Identification (RFID)

Using radio waves to identify and track materials tagged with special microchips

exclusive dealing

a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers

Supply-chain management should begin with a focus on ____________. a. the customer b. the marketing channel c. the government regulator d. the producer e. the seller

a. customer

physical distribution

activities used to move products from producers to consumers and other end users

tying agreement

an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

industrial distributor

an independent business organization that takes title to industrial products and carries inventories

Which of the following involves planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants? a. physical distribution b. logistics management c. supply management d. operations management e. supply-chain management

b. logistics

Which of the following integrates the functions of operations management, logistics management, supply management, and marketing channel management so that products are produced and distributed in the right quantities, to the right locations, and at the right times? a. physical distribution b. 3rd party logistics c. supply-chain management d. multichannel distribution e. channel integration

c. SCM

Supply Management

in its broadest form, refers to the processes that enable the progress of value from raw material to final customer and back to redesign and final disposition

George is in charge of working with movie studios and third-party distributors to purchase DVDs to be made available through the kiosks. His only responsibility is to procure the DVDs and video games for the different kiosks. Purchasing specifically falls under

supply management

order processing

the receipt and transmission of sales order information

intermodal transportation

two or more transportation modes used in combination

Acme Corporation sells hammers and other tools to Blue's Hardware Store. Suppose that Acme, which is the only supplier of a specific type of hammer that Blue's sells, informs Blue's that it will have to purchase certain other products from Acme if it wants to continue receiving the hammers. Blue's is dismayed because these other products are costly. It has no customers for these products. Acme is attempting to get Blue's to enter into _________.

tying agreement