Lecture 11 Place

Question 1

Define upstream partners

Answer 1

Firms that supply raw materials, components, parts, information, finances, and expertise needed to create a products or service

Question 2

Define downstream partners

Answer 2

These include the marketing channels or distribution channels that look towards the customer, including retailers and wholesalers

Question 3

Define supply chain

Answer 3

“make and sell” view includes the firm’s raw materials, productive inputs, and factory capacity

Question 4

Define demand chain

Answer 4

“sense and respond” view suggests that planning starts within the needs of the target customer

Question 5

Define value delivery network

Answer 5

This is composed of the company, suppliers, distributors, and customers who partner with each other to improve the performance of the entire system

Question 6

Define marketing channel (distribution channel)

Answer 6

This is a set of independent organisations that help make a product or service available for use or consumption by the consumer or business user

Question 7

What is a benefit of market channel intermediaries?

Answer 7

They make buying easier for the consumer

Question 8

Give an example of a marketing channel distributary

Answer 8

Grocery retailer

Question 9

What are 8 ways in which channel members add value?

Answer 9

Information
Promotion
Contact
Matching
Negotiation
Physical distribution
Finance 
Risk taking

Question 10

Define channel level

Answer 10

This is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

Question 11

Define direct marketing channel

Answer 11

This is a marketing channel that has no intermediary levels

Question 12

Define indirect marketing channel

Answer 12

This is a marketing channel containing one or more intermediary levels

Question 13

What happens when using direct channels?

Answer 13

The company sells directly to the consumer

Question 14

What happens when using indirect channels?

Answer 14

The company uses one or more levels of intermediaries to help bring its products to the final buyers

Question 15

Give 4 different flows that can help connect channels

Answer 15

Physical flow of products
Flow of ownership
Payment flow
Information flow
Promotion flow

Question 16

What do marketing channels consist of?

Answer 16

Firms that have partnered for their common good with each member playing a specialised role

Question 17

Define channel conflict

Answer 17

This refers to disagreement among channel members over goals, roles and rewards

Question 18

What are the two types of channel conflict?

Answer 18

Horizontal conflict

Vertical conflict

Question 19

What do conventional distribution systems consist of?

Answer 19

These consist of one or more independent producers, wholesalers, and retailers, each separate business is seeking to maximise its own profits, perhaps at the expense of the profits for the system as a whole.

Question 20

What do vertical marketing systems do?

Answer 20

They provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system

Question 21

Give three examples of vertical marketing systems

Answer 21

Corporate marketing systems
Contractual marketing systems
Administered marketing systems

Question 22

Define corporate vertical marketing systems

Answer 22

These combine successive stages of production and distribution under single ownership

Question 23

Define contractual vertical marketing systems

Answer 23

These consist of independent firms at different levels of production and distribution who join together through contracts

Question 24

What is an administered vertical marketing system?

Answer 24

This is a VMS that coordinates successive stages of production and distribution through the size and power of one of the parties

Question 25

Define horizontal marketing system

Answer 25

This is a channel arrangement where two or more companies at one level join together to fellow a new marketing opportunity

Question 26

Define multi channel distribution systems

Answer 26

These are systems in which a single firm sets up two or more marketing channels to reach one or more customer segments

Question 27

What is disintermediation?

Answer 27

This is the cutting out of marketing channel intermediaries by producers or the displacement of traditional resellers by new intermediaries

Question 28

What are the 4 components of marketing channel design?

Answer 28

Analysing customer needs Setting channel objectives Identifying major channel alternatives Evaluating channel alternatives

Question 29

What does analysing customer needs entail?

Answer 29

Find out what target consumers want from the channel Identify market segments Determine the best channel use Minimise the cost of meeting customer service requirements

Question 30

What does setting channel objectives entail?

Answer 30

Determine targeted levels of customer service | Balance consumer needs against costs and customer price preferences

Question 31

What does identifying major alternatives entail?

Answer 31

Types of intermediaries | Number of intermediaries

Question 32

What does looking at the types of intermediaries involve?

Answer 32

Finding channel members able to carry out channel work

Question 33

What is an issue most companies face when looking at the types of intermediaries?

Answer 33

Most companies face many channel member choices

Question 34

What 3 things need to be looked at when deciding on the number of marketing intermediaries?

Answer 34

Intensive distribution Exclusive distribution Selective distribution

Question 35

What criteria are channel members responsible for?

Answer 35

Economic criteria Control issues Adaptability criteria

Question 36

What do producers and intermediaries need to agree on?

Answer 36

Price policies Conditions of sale Territory rights Specific services

Question 37

What are the 4 stages in channel management decision?

Answer 37

1- selecting channel members 2- managing channel members 3- motivating channel members 4- evaluating channel members

Question 38

Define exclusive distribution

Answer 38

This is when the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories

Question 39

Define exclusive dealing

Answer 39

This is when the seller requires that the exclusive distribution sellers not handle competitor's products

Question 40

What are exclusive territorial agreements?

Answer 40

These are where producers or sellers limit territory

Question 41

What are tying agreements?

Answer 41

Agreements where the dealer must take all or most of the line

Question 42

What do marketing logistics involve?

Answer 42

This is physical distribution and involves planning, implementing and controlling the physical flow of goods, services and related information from points of origin to points of consumption to meet customer requirements at a profit

Question 43

What does supply chain management involve?

Answer 43

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Question 44

What is the goal of marketing logistics?

Answer 44

To provide a targeted level of customer service at the least cost

Question 45

What are the 3 types of logistics?

Answer 45

Inbound Outbound Reverse

Question 46

What is integrated logistics management?

Answer 46

The recognition that providing customer service and trimming distribution costs requires teamwork internally and externally

Question 47

What are 4 major logistics functions?

Answer 47

Warehousing Inventory management Logistics information management Transportation