chapter 12

Question 1

Distribution Channel

Answer 1

A pathway through which products travel from producer to consumer.

Question 2

Flow of distribution channels

Answer 2

Brand Manufacturer → Distributor → Customer

Question 3

Value Delivery Network

Answer 3

The company, suppliers, distributors, and, ultimately, customers who “partner” with each other to improve the performance of the entire system.

Question 4

Supply Chain

Answer 4

network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product. it consists of upstream and downstream partners

Question 5

Whats wrong with the term supply chain?

Answer 5

its limiting because it makes a “make and sell” depiction of the business.

Question 6

better term for supply chain

Answer 6

demand chain

Question 7

Upstream partners

Answer 7

Supply raw materials and components, parts, information, finances, and expertise

Question 8

example of an upstream partner

Answer 8

a textile manufacturer would be an upstream partner to NIKE

Question 9

Downstream partners

Answer 9

What marketers focus on, also known as the distribution channels, they help deliver the product to the customer

Question 10

example of downstream partners

Answer 10

retailers, logistics

Question 11

Multi-Channel Marketing System

Answer 11

A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments, coordinating channel strategies to maximize total profits across all the channels.

Question 12

What is problematic about multi-channel marketing systems

Answer 12

They may increase risk of causing internal conflict between partners

Question 13

Member Channels

Answer 13

The organizations and individuals involved in the process of moving a product or service from the producer to the end consumer

Question 14

How do channel members add value

Answer 14

by bridging the any time, place, and possession gaps that separate goods and services from those who use them.

Question 15

how do channel members help to complete transactions

Answer 15

Information, Promotion, Contact, Matching, and Negotiation

Question 16

how do channel members fufill completed transactions

Answer 16

Physical distribution, Financing, Risk taking

Question 17

how do channel members add value for consumers

Answer 17

After-sale service, Product assembly, Product availability (storage), Financing options, Product information, Communication, Competitive pricing - (better pricing)

Question 18

how do channel members add value For Manufacturers

Answer 18

Market research, Quality assurance, Demand generation (e.g., promotion), Lot sizing (packaging), Logistics (storage, transportation)

Question 19

Channel Design

Answer 19

analyzing customer needs and major channel alternatives and setting channel objectives accordingly

Question 20

Channel Level

Answer 20

layer of intermediaries that helps bring the product closer to the final buyer. number of intermediaries between producer and consumer indicates the channel length

Question 21

Wholesaler

Answer 21

businesses that purchase goods in bulk from manufacturers or suppliers and then sell them in smaller quantities to retailers or other businesses

Question 22

example of wholesaler

Answer 22

think food distributors

Question 23

Direct marketing channel

Answer 23

A marketing channel that has no intermediary levels, with the producer selling directly to the consumer.

Question 24

Indirect marketing channel

Answer 24

a marketing channel containing one or more intermediary levels between the producer and the consumer.

Question 25

Channel Breadth

Answer 25

how many different types of distribution channels a company uses to reach its customers

Question 26

example of channel breadth

Answer 26

a company selling products online, in its own retail stores, and through third-party retailers

Question 27

exclusive distribution

Answer 27

the producer gives a limited number of dealers the right to distribute its products. luxury brands

Question 28

intensive distribution

Answer 28

they stock their products in as many outlets as possible

Question 29

Disintermediation

Answer 29

Removing traditional intermediaries from the distribution process

Question 30

example of disintermediation

Answer 30

When Dell started selling computers directly to consumers through its website, it cut out traditional retailers like Best Buy

Question 31

Vertical Integration Types

Answer 31

Corporate, Administered, and Contractual

Question 32

Corporate with an example

Answer 32

One firm owns the entire distribution channel. Zara makes and sells their own products

Question 33

Administered with an example

Answer 33

no formal contract or ownership, just one powerful player who calls the shots. Example is Walmart

Question 34

Contractual with an example

Answer 34

Independent firms at different levels join together through contracts. franchises like Burger King.

Question 35

Horizontal Integration

Answer 35

Combining organizations at the same level of the channel

Question 36

Channel Conflict

Answer 36

Theres horizontal conflict which is between firms at the same level and vertical conflict which is between different levels