Chapter 12
direct marketing
A _____________ channel, has no intermediary levelslong dash—the company sells directly to consumers. For example, Mary Kay Cosmetics and Amway sell their products through home and office sales parties and online Web sites and social media; companies ranging from GEICO insurance to Omaha Steaks sell directly to customers via Internet, mobile, and telephone channels.
channel level
A layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer
*A. competitiveness* B. years in business C. reputation D. cooperativeness E. growth and profit record
Channel members should be selected on the basis of all of the following attributes except __________.
A. average inventory levels B. customer delivery time C. sales quotas D. treatment of damaged and lost goods *E. channel management*
Channel members' performance should be evaluated against standards which include all of the following except __________.
1) companies can gain a powerful competitive advantage by using improved logistics to give customers better service or lower prices 2) improved logistics can yield tremendous cost savings to both a company and its customers 3) improvements in information technology have created opportunities which did not exist before 4) logistics affects the environment and a firm's environmental sustainability efforts
Companies today are placing greater emphasis on logistics for several reasons:
Channel systems stand still, restricting formation of new intermediary systems.
Distribution channels are more than simple collections of firms tied together by various flows. Which of the following statements is NOT a characteristic of distribution channels?
less control and greater channel complexity
From the producer's point of view, a greater number of levels of marketing channel means __________.
integrated logistics management
The concept of __________ recognizes that providing better customer service and trimming distribution costs require teamwork. emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system
contractual
The franchise organization is the most common type of __________ VMS (vertical marketing system).
exclusive distribution
_____ involves giving a limited number of dealers the exclusive right to distribute the company's products in their territories.
intensive distribution
______ involves stocking the product in as many outlets as possible.
selective distribution
________ is the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products.
conventional distribution channel
a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole
multichannel distribution system
a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments
Corporate VMS
a vertical marketing system that combines successive stages of production and distribution under single ownership- channel leadership is established through common ownership
Administered VMS
a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties
Third-party logistics (3PL) provider
an independent logistics provider that performs any or all of the functions required to get a client's product to market
marketing channel
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
distribution center
designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible
key functions performed by the marketing channels
distribution of information promotion matching negotiation
supply chain management
managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers
selecting, managing, and motivating individual channel members and evaluating their performance over time
marketing channel management refers to:
conventional distribution channels
Historically, ___________ have lacked leadership and power, often resulting in damaging conflict and poor performance. One of the biggest channel developments for years has been the emergence of vertical marketing systems that provide channel leadership.
pricing
In making products and services available to consumers, channel members add value. Key functions performed by the marketing channels include all of the following except __________.
marketing logistics
__________ is planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
horizontal marketing system
a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
indirect marketing channel
a marketing channel containing one or more intermediary levels
Contractual VMS
a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts
The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries
which of the following describes disintermediation?
direct marketing channel
which of the following is a channel that has no intermediary level?
