Marketing Final- Distribution

Ace your homework & exams now with Quizwiz!

Supply chain

a sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users

Administered vertical marketing system

achieve coordination that successive stages of production and distribution by the size and influence of one channel member rather than through ownership.

target market coverage

Intensive distribution, exclusive distribution, selective distribution.

Brokers

independent firms or individuals whose principal function is to bring buyers and sellers together to make sales

Contractual vertical marketing system

independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact

Merchant wholesalers

independently owned firms that take title to the merchandise they handle

Marketing Channel

individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

Intensive distribution

means that a firm tries to place its products and services as many outlets as possible

Vertical integration

not illegal but the practice could be subject to legal action is such integration were designed to eliminate or lesson competition duly.

Vertical conflict

occurs between different levels in a marketing channel for example between the manufacturer and a wholesaler or retailer.

Horizontal conflict

occurs between intermediaries at the same level in a marketing channel such as between two or more retailers for example Zellers and Walmart

Tight selling

occurs when supplier requires a distributor adjusting some products to by other goods from the supplier.

Specialty merchandise or limited line wholesalers

offer a relatively narrow range of products but have an extensive assortment within the product line carried

Cooperation in marketing channels

one means is through a channel captain, which is a channel member that coordinates directs and supports other channel members

Business distributor

performs a variety of marketing channel functions including selling something delivering a full product assortment, and financing for business goods and services

Vertical marketing systems

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact

Resale or market restrictions

referred to as suppliers attempt to stipulate to you and distributors maybe sell the suppliers products and in which geographical areas

Selling agents

represent a single producer and are responsible for the entire marketing function of that producer

Retailer sponsored cooperatives

small independent retailers form an organization that operates wholesale facility cooperatively

Multiple channel distribution

sometimes referred to as hybrid marketing channels or dual distribution - an arrangement whereby a firm reaches buyers by employing two or more different types of marketing channels

Vendor managed inventory

supplier determines product amount and assortment a customer needs and automatically delivers the appropriate terms.

Just in time inventory concept

supply system that operates with very low inventories and requires fast on-time delivery

Channel Design Considerations

target market coverage, satisfying buyer requirements, profitability

exclusive distribution

the extreme opposite of intensive distribution because only one retail outlet in a specified geographical area carries the firms product

supply chain management

the integration and organization of information and logistics activities across firms and a supply chain for the purpose of creating and delivering goods and services that provide value to customers

logistics management

the practice of organizing the cost-effective flow of raw materials, in process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements

Profitability

the third consideration in designing a channel is profitability which is determined by the margins earned for each channel member and for the channel as a whole

Keiretsu

this type of distribution bonds producers and intermediaries together through vertical integration and social and economic ties to ensure that each channel member benefits from the distribution alignment.

global dimensions of marketing channels

understanding marketing channels in global markets is a pre-requisite to successful marketing, marketing channels around the world of sex traditions customs and geography

Wholesaler sponsored voluntary chains

wholesaler develops a contractual relationship with small independent retailers to standardize and coordinate buying practices

Manufacturer's agents

work for several producers and carry non-competitive complement three merchandise in an exclusive territory, also called manufacturers' representatives

Key Logistics Function in a Supply Chain

Transportation Warehousing and Materials Handling Order Processing Inventory Management

Indirect Channel

a marketing channel where intermediaries are inserted between the producer and consumer and perform numerous channel functions

Direct Channel

a marketing channel where producer and ultimately consumers deal directly with each other

Strategic channel alliances

a practice whereby one firm's marketing channel is used to sell another firm's products

Forward integration

a producer might own the intermediary at the next level down in the channel, examples include Goodyear and Irving oil.

Dual distribution

a situation where a manufacturer distributes through its own vertically integrated channels in direct competition with wholesalers and retailers that also sell its products

Direct marketing channels

allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with the salesperson.

Distributor

an imprecise term usually used to describe intermediaries who perform a variety of distribution functions including selling, maintenance of inventories, and so on

Wholesaler

an intermediary who sells to other intermediaries usually to retailers, usually applies to consumer markets

Channel conflict

arises when one channel member believes another channel member is engaging in behavior that prevents it from achieving its goals

General merchandise or full-line wholesalers

carry a broad assortment of merchandise and perform all channel functions

Corporate vertical marketing system

combination of successive stages of production and distribution under a single ownership

Disintermediation

conflict arises when a channel member bypasses another member and cells or by-product direct

Legal considerations

conflict in marketing channels is typically resolved through negotiation or the exercise of influence by channel members, sometimes conflict reduces legal action.

franchising

contractual arrangement between the parent company and an individual firm that allows a franchise to operate a certain type of business under an established name and according to specific rules

Manufacturers sales office

does not carry inventory, typically performs only a sales function and serves as an alternative to agents and brokers

Electronic marketing channels

employ the Internet to make goods and services available for consumption or use by consumers or business buyers

Satisfying buyer requirements

falls under four categories information, convenience, variety, and attendant services

Facilitating Function

financing, grading, marketing information and research

selective distribution

lies between these two extremes and means the firm selects and the retail outlets and a specified geographical area

Reverse logistics

reclaiming recyclable materials from the point of consumption for repair, remanufacturing, redistribution, or disposal

Logistical function

sorting, storing, sorting, transporting

Factors affecting channel choice

Environmental, Consumer, Product, company

Dealer

an even more imprecise term they can mean the same as distributor, retailer, wholesaler

Retailer

an intermediary who sells to customers

Intermediary

any intermediary between manufacturer and end-user markets

Agent or Broker

any intermediary with legal authority to act on behalf of the manufacturer

Transactional Function

buying, selling, risk-taking

Manufacturers branch office

carries a producers inventory and performs the functions of a full-service wholesaler


Related study sets

Nationalism and Imperialism Midterm

View Set

guía de estudio para elaboración del examen

View Set

Pharmacology Chapters 56, 57, 58

View Set

Unit 1: Challenge 1 and Challenge 2

View Set

Classical Art & Archeology - Quiz 8

View Set

نظم معلومات محاسبية

View Set

1.8 - c++ standard library TO 1.12 - basics of a typical c++ environment

View Set