Chapter 12 Flashcards
(29 cards)
supply chain
‘make and sell’ view includes firm’s raw materials, productive inputs, and factory capacity.
demand chain
‘sense and respond’ view suggests planning starts with needs of target customer.
value delivery network
composed of company, suppliers, distriibutors, and ultimately customers partering with each other to improve system performance.
marketing/distribution channel
set of interdependent org.’s helping make product/service available for use/consumption by consumer.
upstream partners
firms supplying raw materials, components, parts, information, finances, and expertise needed to create product/service.
downstream partners
include marketing/distribution channels looking toward customers, including retailers and wholesalers.
how channel members add value
transform assortment of products into assortments wanted by consumers
bridge major time, place, possession gaps between manufacturers and customers, facilitating transactions.
distributors decrease number of contact, matching, negotiation, physical distribution, financing, risk-taking.
direct marketing channel
no intermediary levels (producer to consumer)
channel level
layer of intermediaries performing some work in bringing product and its ownership closer to final buyer
indirect marketing channel
one or more intermediary (producer to wholesaler to retailer to consumer)
channel members connected by several flows
physical flow of products, flow of ownership, payment flow, information flow, promotion flow.
marketing channels
firms partnering for common good with each member playing specialized role
channel conflict
disagreement among members over goals, roles, and reward.
horizontal - between members at same level of distribution channel.
vertical - between members of diff. levels of distribution channel.
conventional distribution system
one or more independent producers, wholesalers, and retailers, each a separate business seeking to max. own profits, perhaps even at expense of profits for system as a whole.
vertical marketing system (VMS)
provide channel leadership and consist of producers, wholesalers, retailers acting as unified system;
corporate, contractual, and administered MS.
corporate VMS
combine successive stages of production and distribution under single ownership
multichannel distribution systems
single firm sets up 2 or more marketing channels to reach one or more customer segments
disintermediations
cutting out of marketing channel intermediaries by producers or displacement of traditiona resellers by new intermediaries .
marketing channel design
design effective marketing channels by:
analyzing customer needs
setting channel objectives
identifying major channel alternatives (intensive, exclusive, selective distribution)
evaluating those alternative
for international distribution channels, marketers must be able to adapt channel strategies to structures within each country.
channel management decision
select
manage
motivate
and evaluate channel members
exclusive distribution
when producer gives only limited number of dealers exclusive right to distribute products on their territories.
exclusive dealing
when seller requires exclusive distribution sellers not to handle competitor’s products
exclusive territorial agreements
producer or seller limit territory
tying agreements
dealer must take more of all of line
