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