Marketing Chapter 11
________ refer(s) to functions of channel intermediaries that make the purchase process easier for customers and manufacturers.
Facilitating functions
United Airlines is in an enduring relationship with other airlines globally, such as Singapore Air, Lufthansa, and ANA, that enables them to cooperate and share routes for their passengers globally. What type of channel agreement is this cooperation?
Horizontal marketing system
________ refers to an inventory management and purchasing process that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed.
Just in time (JIT)
________ refers to the process of designing, managing, and improving the movement of products through the supply chain and includes purchasing, manufacturing, storage, and transport.
Logistics
________ refers to the moving of products into, within, and out of warehouses.
Materials handling
Which of the following is an advantage of mail-order wholesalers?
Provide reasonably priced sales options to small organizational customers
________ is a group of retailers that establishes a wholesaling operation to help them compete more effectively with the large chains.
Retailer cooperative
Which one of the following roles belongs to a factor in the channel other than the wholesale level within the channels?
Retailers
________ market a whole product line or one manufacturer's total output. They often work like an independent marketing department because they perform the same functions as full-service merchant wholesalers but do not take title to products. Unlike manufacturers' agents, selling agents have unlimited territories and control the pricing, promotion, and distribution of their products.
Selling agents
If a retailer wanted to have goods shipped to it through the supply chain and the merchandise is large, bulky, not particularly expensive, and made in China, which method of delivery would be advised?
Water transport
vertical marketing system (VMS)
a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels
slotting allowance
a fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space
retailer cooperative
a group of retailer that establishes a wholesaling operation to help them compete more effectively with the large chains
hybrid marketing system
a marketing system that uses a number of different channels and communication methods to serve a target market
conventional marketing system
a multiple level distribution channel in which channel members work independently of one another
insourcing
a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations
enterprise resource planning (ERP) systems
a software system that intergrates information from across the entire company, including finance, order fulfillment, manufacturing, and transportation, and then facilitates sharing of the data throughout the firm
dual or multiple distribution systems
a system where producers, dealers, wholesalers, retailers, and customers participate in more than one type of channel
corporate VMS
a vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing orperations
administer VMS
a vertical marketing system in which channel members remain independent but voluntarily work together because of the power of a single channel member
contratual VMS
a vertical marketing system in which cooperation is enforced by contracts (legal agreements) that spell out each member's rights and responsibilities and how they will cooperate
distribution center
a warehouse that stores goods for short periods of time and that provides other functions, such as breaking bulk
inventory control
activities to ensure that goods are always available to meet customers' demands
supply chain
all the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer
horizontal marketing system
an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose
intranet
an internal corporate communication network that uses internet technology to link company departments, employees, and databases
independent intermediaries
channel intemediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers
merchandise agents or brokers
channel intermediaries that provide services in exchange for commissions but never take title to the product
knowledge management
comprehensive approach to collecting organizing, storing, and retrieving a firm's information assets
franchise organizations
contractual vertical marketing system that includes a franchiser (a manufacturer or a service provider) who allows an entrepreneur (the franchisee) to use the franchise name and a marketing plan for a fee
selective distribution
distribution using fewer outlets than intensive distribution but more than exclusive distribution
breaking bulk
dividing larger quantities of goods into smaller lots in order to meet the needs of buyers
channel intermediaries
firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the customer or business user. An older intermediaries is middlemen
wholesaling intermediaries
firms that handle the flow of products from the manufacturer to the retailer or business user
facilitating functions
functions of channel intermediaries that make the purchase process easier for customers and manufactuers
communication and transaction functions
happens when channel members develop and execute both promotional and other types of communication among members of the channel
reverse logistics
includes product returns , recycling and material reuse, and waste disposal
channel conflict
incompatible goals, poor communication, and disagreement over roles, responsibilities, and functions among firms at different levels of the same distribution channel that may threaten a manufacturer's distribution strategy
merchant wholesalers
intermediaries that buy goods from manufacturers (take title to them) and sell to retailers and other B2B customers
just in time(JIT)
inventory management and purchasing processes that manufacturers and retailers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed
What is the process of designing, managing, and improving the movement of products through the supply chain called?
logistics
channel cooperation
occurs when producrs, wholesalers, and retailers depend on one another for success
transportation and storage
occurs when retailers and other channel members move the goods from the production point to other locations where they can hold them until consumers want them
radio frequency identification (RFID)
product tags with tiny chips containing information about the item's content, origin, and destination
exclusive distribution
selling a product only through a single outlet in a particular region
intensive distribution
selling a product theough all suitable wholesalers or retailers that are willing to stock and sell the product
Which of the following logistics elements found in transportation refers to the total time to move a product from one location to another, including loading and unloading?
speed of delivery
warehousing
storing hoods in anticipation of sale or transfer to another member of the channel of distribution
channel power
the ability of one channel member to influence, control, and lead the entire channel based on one or more sources of power
physical distribution
the activities that move finished goods from manufacturers to final customer, including order processing, warehousing, materials handling, transportation, and inventory control
risk-taking functions
the chance retailers take on the loss of a product when they buy a product from a manufacturer because the product sits on the shelf because no customers want it
channel leader or channel captain
the dominant firm that controls the channel
disintermediation (of the channel of distribution)
the elimination of some layers of the channel of distribution in order to cut cost and improve the efficiency of the channel
supply chain mangement
the management of flows among firms in the supply chain to maximize total profitability
transportation
the mode by which products move among channel members
materials handling
the moving of products into, within, and out of warehouses
channel levels
the number of distinct categories of intermediaries that make up a channel of distribution
distribution intensity
the number of intermediaries at each level of the channel
inventory turnover or inventory turns
the number of times a firm's inventory completely cycles through during a defined time frame
logistics
the process of designing, managing, and improving the movement of products through the supply chain. Logistics includes purchasing, manufacturing, storage, and transport
distribution planning
the process of developing distribution objectives, evaluation internal and external environmental influences on distribution , and choosing a distribution strategy
order processing
the series of activities that occurs between the time an order comes into the organization and the time a product goes out the door
channel of distribution
the series of firms or individuals that facilitates the movement of a product from the producer to the final customer
online distribution piracy
the theft and unauthorized repurposing of intellectual property via the internet
take title
to accept legal ownership of a product and assume the accompanying rights and responsibilities of ownership
create assortments
to provide a variety of products in one location to meet the needs of buyers
full-service merchant wholesalers
wholesalers that provide a wide range if services for their customers, including delivery, credit, product-use assistance, repairs, advertising, and other promotional support
limited-service merchant wholesalers
wholesalers that provide fewer services for their customers
stock-outs
zero-inventory situations resulting in lost sales and customers dissatisfaction
The channel leader or channel captain is the dominant firm that controls the channel because it has more channel power relative to other channel members. From the following types of power, which one is available to all participants and not only the channel captain?
Assortment power
________ occurs when producers, wholesalers, and retailers depend on one another for success.
Channel cooperation
________ refer(s) to the series of firms or individuals that facilitate the movement of a product from the producer to the final customer.
Channel of distribution
________ refers to a multiple-level distribution channel in which channel members work independently of one another.
Conventional marketing system
________ is a vertical marketing system in which a single firm owns manufacturing, wholesaling, and retailing operations.
Corporate VMS
Which one of the following is an element by which the channels of distribution may encounter a slowdown of the movement of goods from the producer to the final consumer?
Creating larger quantities and smaller assortments
