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Flashcards in Chapter 10 Deck (28):
1

What is a Marketing Channel?

The set of individuals or firms involved in the process of making a product available

2

Intermediaries

Individuals or firms performing a role in the marketing channel, involved in making a product available

3

What is a Middleman?

Another name for Intermediary

4

What is an Agent or Broker?

Any Intermediary with legal authority to act on behalf of another channel member (example: a manufacturer)

5

What is a Wholesaler?

Any intermediary who sells to other intermediaries, usually to retailers - this term usually applies to intermediaries who deal in consumer goods

6

What is a Retailer?

An intermediary who sells to consumers

7

What is a Distributor?

A general term used to describe intermediaries who perform a variety of functions, including selling, maintaining inventories, extending credit, and others-usually used for those in business markets

8

What is a Dealer?

A general term that can mean the same as a distributor, retailer, or a wholesaler

9

What functions are performed by an intermediary?

-Transactional functions
-Logistical functions
-Facilitating functions

10

Electronic marketing channels

Channels that use the internet to make goods and services available to consumers or business buyers

11

Dual distribution

Arrangement whereby a firm reaches buyers by using two or more different types of channels for the same basic production

12

Multichannel Marketing

Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with customers
includes: Transactional websites and Promotional websites

13

Cross channel shopper

An online consumer who researches products online and then purchases them at retail store

14

Vertical marketing systems

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
Consists of three systems:
-Corporate
-Contractual
-Administered channels

15

Franchising

contractual arrangement in which a parent company (the franchiser) allows an individual or firm (the franchisee) to operate a certain type of business under the established name and according to specific rules set by the franchiser

16

Global Channel strategy

Sophistication increases as its economic infrastructure develops

17

Intensive distribution

A firm tries to place its products or services in as many outlets as possible

18

Exclusive distribution

Only one retail outlet in a specific geographical area carries the firm's products

19

What are the three questions that marketing executives consider when choosing a marketing channel and intermediaries?

1) Which channel and intermediaries will best reach the target market?
2) Which channel and intermediaries will best serve the needs of the target market?
3) Which channel and intermediaries will lead to the most cost-efficient and profitable results

20

Selective distribution

A firm selects a few retail outlets in a specific geographical area to carry its products

21

What are the two categories of conflict?

1) Vertical 2) Horizantal

22

Channel conflict

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

23

Disintermediation

Vertical channel conflict that arises when a channel member bypasses another member and sells directly to consumers

24

Logistics

Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost

25

Supply chain

Sequence of firms that perform activities required to create and deliver a product to consumers or industrial users

26

Supply chain management

Integration and organization of information and logistics activities across firms in a supply chain of creating and delivering goods and services that provide value to consumers

27

Electronic data interchange (EDI)

A computer-to-computer exchange of business documents from a a retailer to a supplier and back

28

Just in time inventory system (JIT)

A system designed to deliver less merchandise on a more frequent basis than traditional inventory systems