Marketing Chapter 10
Intermediaries are also called middlemen and include wholesalers and retailers
True or False
Channel level
a layer of intermediaries that performs work in bringing the product and its ownership closer to the final buyer
Multichannel distribution system
a single firm sets up two or more marketing channels to reach customer segments example on slide 25
channel decisions
affect every other marketing decision can lead to competitive advantage may involve long-term commitments to other firms
distribution center
are large, highly automated warehouses that receive goods, take orders, fill them and deliver goods to customers. desgined to move goods
value delivery network
company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system.
Horizontal
conflict occurs among firms at the same level of the channel example : ford dealership vs ford dealership
Vertical
conflict occurs between different levels of the same channel. example : KFC parent company and its franchise operations
Vertical Marketing Systems Conventional Distritbution Channel
consists of one or more independent producers, wholesalers, and retailers each member is a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole producer - wholesaler - retailer - consumer
Supply chain management
customer-centered logistics: marketplace to the factory or sources of supply outbourd logistics inbound logistics reverse logisitics
Channel conflict
disagreements among marketing channel members on goals, roles, and rewards
advantage
expansion of sales ad marketing coverage tailor-made products and services for the specific needs of customer segments
Transportation
factors affected by choice of transportation pricing of products, delivery performance, condition of goods, customer satisfaction modes, trucks, railroads, water carriers, pipelines, and the internet
Producers use intermediaries (also called middle men) to create ________________ _____________________in making goods available to target markets.
greater efficiency
intermediaries create __________ in making goods available to target markets
greater efficiency
disadvantage
harder to control generates conflict
Help to Complete Transactions
information - about consumers, producers promotion - develop and spread persuasive communication contact - prospective buyers matching - shaping offers to meet needs negotiation - reaching agreements on price, ownership
Producers make ______ assortments of products in ________ quantities. Consumers want __________ assortments of products in __________ quantities. Intermediaries solve this dilemma.
narrow, large, broad, small
Direct marketing channel
no intermediary levels example : mary kay cosmetics - home/ office parties
Disintermediation
occurs when product or services producers cut out marketing channel intermediaries or when radically new types of channel intermediaries displace traditional ones
Indirect marketing channel
one or more intermediary levels
Help to fulfill the completed transactions
physical distribution - transporting, storing goods financing - acquiring, using funds Risk taking - assuming risk of carrying out the channel work
marketing logistics
planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to consumption bottom line...getting the right product to the right customer in the right place at the right time
Vertical Marketing System
producers, wholesalers, and retailers act as a unified system types - corporate (single ownership) contractual (contract...franchise most common) and administered (size and power) producer retailer/wholesaler consumer
reverse logistics
reusing, recycling, refurbising, or disposing of broken unwanted or excess products
downstream partners
serve as distribution channels that link the firm and its customers
Inventory management
should be done in a cost effective and profitable manner Just - in - time logistics systems - carry small inventory, new stock arrives when needed Radio frequency indentification (RFID) - or smart tag technology, give the physical location of a product.
storage warehouses
store goods for moderate to long periods
upstream partners
supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service
Marketing logistics and supply chain management
the goal of marketing logisitics is to deliver a targeted level of customer service at the least cost Logistics functions include: warehousing, inventory management, transportation, logistics information management
Channel member add value by bridging the the major ______, ________, and ______ gaps that separate goods and services from those who use them
time, place, and possession
role of marketing intermediaries
transform the assortments of product made by producers into the assortments wanted by consumers
Horizontal Marketing System
two or more companies at one level join together to follow a new marketing opportunity walmart with mcdonalds inside