Marketing Ch.15 Flashcards Preview

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Flashcards in Marketing Ch.15 Deck (49):
1

Marketing Channel

individuals and firms involved in the process of making a product or service available for use or consumption

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Transactional function

intermediaries buy and sell products and services. Shares risk with the producer.

3

Logistical Function

- the intermediary gather/sort/disperse products

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Facilitating Function

the intermediaries make a transaction easier for buyers by things like credit cards.

5

Time Utility

intermediaries have the product/service available when you want it

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Place Utility

intermediaries have the product/service available where you want it

7

Form Utility

intermediaries enhance products/services to make it more appealing to buyers

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Possession Utility

intermediaries help buyers take possession of a good or service.

9

Direct Channel for consumer goods

producer and ultimate consumers deal with each other directly. No intermediaries, producer preforms all channel functions

10

Indirect Channel

intermediaries are inserted between producer/consumer. Preform numerous channel functions.

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Direct Channel- for business goods

Firms maintain their own Salesforce and preform channel functions. Buyers are large and well defined. Extensive negotiations, products have high unit value, require hands on expertise to install/use

12

Electronic Marketing Channels -

employ the internet to make products available for consumption or use. Combine traditions and electronic intermediaries

13

Direct Marketing Channels

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

14

Multichannel Marketing

blending of different communication and delivery channels that are mutually reinforcing in attracting and retain relationships with consumers.

15

Dual distribution-

an arrangement where a firm reaches different segments of buyers by employing 2+ different types of channels for the same basic product.

16

Strategic Channel Alliance-

where one firms marketing channel is used to sell another firms products.

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Vertical Marketing Systems-

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

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Corporate vertical marketing system

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

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Forward Integration

firms owning intermediary at next level down

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Backward Integrating

when a retailer owns manufacturing facilities

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Contractual Vertical Marketing System

independent product and distribution firms integrate their efforts on a contract to obtain greater marketing impact

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Wholesaler Sponsored Voluntary Chains-

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

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Retailer-sponsored cooperatives-

when small independent retailers form an organization that operates a wholesale facility cooperatively.

24

Manufacturer Sponsored- retail franchise systems

prominent in automobile. Manufacturer licenses dealers to sell item subject to various sales and service conditions.

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Manufacturer Sponsored Wholesale Franchise Systems

in soft drink industry. Where pepsi licenses wholesalers(bottlers) that purchase concentrate from pepsie and then carbonate, bottle, promote and distribute its products

26

Service Sponsored Retail Franchise Systems-

used by firms that have designed a unique approach for preforming a service and wish to profit by selling the franchise to others

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Service Sponsored Franchise System

franchisors license individuals or firms to dispense a service under a trade name and specific guidelines

28

Administered vertical marketing systems

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

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density

- number of stores in a geographical location and type of intermediaries to be used at the retail level.

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Intensive Distribution

firm tries to pace its products in as many outlets as possible. Usually chosen for convenience products.

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Exclusive Distribution

opposite of intensive distribution b/c the firm selects only one retailers in a specific geographical area

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Selective Distribution

lies between intensive and exclusive. Firm selects a few retailers.

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Information requirement-

choose intermediaries that will communicate with buyers through in store displays…

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Convenience Requirement-

proximity or driving time to a retailer outlet. Ease of access

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Variety Requirement

reflects buyers interest having numerous competing and complementary items from which to choose.

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Pre or post sale services Requirement

provided by intermediaries are an important buying requirement for products such as large household appliances that require delivery/installation.

37

Channel Conflict

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

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Vertical Conflict

occurs between different levels in a marketing channel (ex. Wholesaler and retailer)

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Disintermediation

When a channel member bypasses another

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Horizontal Conflict

occurs between intermediaries at the same level.

41

Dual Distribution

not illegal, can be anticompetitive. When a manufacturer distributes through its own vertically integrated channel in competition with independent wholesalers and retailers that also sell its products.

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Vertical Integration

not illegal, practice is sometimes subject to legal action

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Exclusive Dealing

exists when a supplier requires channel members to sell only its products or restricts distributors from selling directly competitive products.

44

Full line forcing

special kind of tying arrangment. Carry full line or none

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Logistics

involves those activities that focus on getting the right amount of the right products to the right places

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Logistics Management

practice of organizing the cost effective flow of raw materials to finished goods and info to satisfy consumers

47

Total Logistics Cost

includes expenses associated with transportation, handling, warehousing, inventory, stockouts, order processing

48

Vendor-managed inventory

pplier determines the product amount and assortment a customer needs and automatically delivers it

49

reverse logisticts

Process of reclaiming recyclable a reusable materials.