Marketing an Intro - Chap. 10 Marketing Channels; Delivering Customer Value

Contractual VMS

A _____ consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone.

Conventional distribution

A _______ channel consists 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.

Value Delivery Network

A _______ is made up of the company, suppliers, distributors, and ultimately, customers who "partner" with each other to improve the performance of the entire system.

Horizantal marketing system

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. In a _____________, two or more companies at one level join toghether to follow a new marketing opportunity. By working together, companies can combine their financial, production, or marketing resources to accomplish

Vertical marketing system

A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel memeber owns the others, has contracts with them, or has so much power that they all cooperate.

True

A forge should forge strong partnerships with channel members to create a mardeting system that meets the needs of both the manufacturer and the partners.Ma

Distribution center

A large, highly automated warehouse disngned to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.

Channel level

A layer of intermediaries that performs wome work in bringing the product and its ownership closer to the final buyer

Indirect marketing channel

A marketing channel containing one or more intermediary levels

Corporate VMS

A vertical marketing system that combines successive stages of production and destribution under signel 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. In an _________, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members.

Marketing channel

Also called a distribution channel: A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user; Marketers have traditionally focused on this downstream side of the supply chain, that looks toward the customer.

Third party logistics provider

An independent logistics providerthat performs any or all of the functions required to get a client's product to market (Ryder, fed ex, etc.)

Selective distribution

Between intensive and exclusive destribution lies _________ - the use of more than ove but fewer than all of the intermediaries who are willing to carry a company's products.

Exclusive distribution

By contrast, some producers purposely limit the number of intermediaries handling their products. The extreme form of this practice is _________, in chich the producer gives only a limited number of dealers the exclusive right to distributeits products in their territories.

True

Channel design begins with assessing customer channel service needs and company channel objectives and constraints, the company then identifies the major channel alternatives in terms of "types" of intermediaries, the "number" of intermediaries, and the "channel responsibilities" of each.

Marketing Channel design

Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.

Channel Conflict

Disagreements amoung marketing channel memebers on goals, roles, and rewards-who should do what and for what rewards.

True

From the economic system's point of view, the role of marketing intermediaries is to transform the assortments of products made by producers into the assortments wanted by customers.

True

In a large company, the formal organization structture assigns roles and provides needed leadership. In a distribution channel composed of independent firms, leadership and power are not formally set. Traditionally, distribution channels have lacked leadership needed to assign roles and manage conflict.

True

In recent years, new types of channel organizations have appeared that provide stronger leadership and improved performance.

Supply chain management

Managing upstream and downstream value-added flows of materials, final goods, and related information amoung suppliers, the company, resellers, and final customers.

True

No logistics system can both maximize customer service and minimize distribution costs.

True

Other Marketing Channels help "fulllfill" the completed transactions by offering "physical distribution" (transporting and storing goods), "financing" (acquiring and using funds to cover the costs of the channel work, and "risk taking" (assuming the risks of carrying out the channel work.

Intensive distribution

Producers of convenience products and common raw materials typically seek ______ - a strategy in which they stock their products in as many outlets as possible.

Intermodal transportation

Shippers also use _______ - combining two or more modes of transportation.

True

Some marketing channels help "complete transactions" by gathering and distributing "information" needed for planning and aiding exchange, developing and spreading persuasive "communications" abut an offer, performing "contract" work (finding and communicating with prospective buyers), "matching" (shaping and fitting the offer to the buyer's needs), and entering into "negotiation" to reach an agreement on price and other terms of the offer so that ownership can be transfered.

True

The four major questions concerning marketing channels are (1) What is the nature of marketing channels and why are they important? (2) How do channel firms interact and organize to do the work of the channel? (3) What problems do companies face in designing and managing their channels? and (4) What role do physical distribution and supply chain management play in attracting and satisfying customers?

Franchise organization

The most common type of contractual relationship, _______ is a contractual vertical marketing system in which a channel member, called a franchisor, links several staages in the production-distribution process.

Supply chain

This chain consists of upstream and downstream partners. Upstream from the company is the set of firms the supply the raw materials, components, parts, information, finances, and expertise needed to create a product of service.The downstream side of the supply chain (Marketing or distribution channel) look toward the customer

Intergrated logistics management

This logistics concept recognizes that providing better customer service and trimming distribution costs emphasizes teamwork - both inside the company and amoung all the marketing channel organizations-to maximize the performance of the entire distribution system.

True

Through their contracts, experience, specialization, and scale of operations, intermediaries usually offer the firm more that it can achieve on its own

Multichannel distribution

Today with the proliferation of customer segments and channel possibilities, more and more co mpanies have adopted _________ systems. Such multichannel marketing occors when a single firm sets up two or more marketing channels to reach one or more customer segments.

major logistics functions

Warehousing, inventory management, transportation, and logistics information management

Disintermediation

______ occurs when marketing channel intermediaries are cut out by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

Marketing channel management

________ calls for selecting managing, and motivating individual channel members and evaluating their performance over time.

Marketing Logistics

__________-also called physical destribution- involves planning, implementing, and controlling the phyical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Direct marketing channel

marketing chanel that has no intermediary levels- the company sells directly to customers