Marketing Chapter 12 Flashcards Preview

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Flashcards in Marketing Chapter 12 Deck (67):
1

Value Delivery Network

is the firm's supplier, distributors, and ultimately customers who partner with each other to improve the performance of the entire system

2

Intermediaries

offers producers greater efficiency in making goods available to target market

3

Upstream Partners

include Raw material supplier, components, parts, information, finnces, and expertise to create a product or service

4

Downstream Partners

include the marketing channels or distribution channels that look towards the customers

5

Supply Chain

"make and sell" view includes the firm's raw materials, productive inputs and factory capacity

6

Demand Chain

"sense and respond" view suggest the planning starts with the needs of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value

7

What do intermediaries do from an economic view

transform the assortment of products into assortments wanted by customers

8

channel members add value by

bridging the major time, place, and possession gaps the separate goods and services from those who would use them

9

Information

gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and aiding exchange.

10

Promotion

Developing and spreading persuasive communications about an offer

11

Contact

Finding and communicating with perspective buyers

12

Matching

Shaping and fitting the offer to the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging

13

Negotiation

Reaching an agreement on price and other terms of the offers that ownership or possession can be transferred

14

Physical distribution

Transporting and storing goods

15

Financing

Acquiring and using funds to cover the costs of the channel work.

16

Risk Taking

Assuming the risks of carrying out the channel work

17

Direct marketing Channel

AKA Channel 1 has no intermediary levels; the company sells directly to the consumer

18

Indirect marketing Channels

contains one or more intermediaries

19

Marekting Channel

consists of firms that have partnered for their common good with each member playing a specialized role

20

Channel conflicts

refers to disagreement over goals, roles, and rewards by channel members
Horizon and vertical conflict

21

Horizontal conflict

conflict among members at the same channels level

22

Vertical conflict

is conflict between different levels of the same channel

23

conventional distribution systems

consists of one or more independent producers, wholesalers, and retailer. Each seeks to maximize its own profits and there is little control over the other members and no formal means for assigning roles and resolving conflict

24

Vertical Marketing Systems

providing channel leadership and consists of producers, wholesalers and retailers acting as a unified system and consists of:
Corporate marketing systems
Contractual marketing systems
administered marketing system

25

Corporate Vertical marketing systems

integrates successive stages of production and distribution under single ownership

26

Contractual Vertical Marketing System

consists of independent firms at different levels of production and distribution who join together through contracts to obtain more economies or sales impact than each could achieve alone. The most common form is the franchise organization

27

Franchise organization

links several stages in the production distribution process
-Manufacturer-sponsored retailer franchise system
-Manufactuer-sponsered wholesaler franchise system
-Service form sponsored retailer franchise system

28

Administered Vertical Marketing System

has a few dominant channel members w/o common ownership. Leadership comes form size and power

29

Horizontal Marketing Systems

are when 2 or more companies at one level join together to follow a new marketing opportunity. Companies combine financial, production, or marketing resources to accomplish more than any one company could alone
mcdonalds and walmart

30

Multichannel Distribution systems (Hybrid marketing channels)

are when a single firm sets up 2 or more marketing channels to reach one or more customer segments
supermarket teaming up with peapod delivery company

31

Advantages of Multichannel Distribution Systems

-Increased sales and market coverage
-New oppurtunites to tailor products and services to specific needs of diverse customer segments

32

Challenges of Multichannel Distribution Systems

-Hard to control
-Creat Channel Conflict

33

Disintermediation

occurs when the product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones....Ebay replacing ads and non internet auctions

34

Setting Channel Objectives

Targeted levels of customer service
-what segments to serve
-best channels to use
-minimizing the cost of meeting customer service requirements

35

Objectives are influenced by

the company, marketing intermediaries, competitors and the environment

36

Types of Intermediaries

refers to channel members available to carry out channel work. Ex. Include the company sales force. manufacture's agency, and industrial distributors

37

Intensive distribution

candy and toothpaste

38

Exclusive distribution

Luxury automobiles and prestige clothing

39

Selective distribution

Television and home appliance

40

Each Alternative should be evaluated against:

-Economic criteria
-Control
-Adaptive Criteria

41

Economic criteria

company compares the likely sales,costs and profitability of different channel alternatives

42

Control issues

Using intermediaries usually means giving them some control over the marketing of the product, and some intermediaries take more control than others

43

Adaptive Criteria

being able to keep the channel flexible so that it can adapt to environmental changes

44

Channel Systems

can vary from country to country

45

Must be able to adapt channel strategies

to the existing structures within each country

46

Exclusive distribution

is when the seller allows only certain outlets to carry its products

47

Exclusive dealing

is when the seller requires that the sellers not handle competitors' products

48

Exclusive territorial agreements

are where producer or seller limit territory

49

Tying agreements

agreements where the dealer must take most of all of the line

50

Marketing logistics

(physical distribution) involves planning, implementing, and controlling the physical flow of goods, services, and related info from points of origin to points of consumption to meet consumers requirements at a profit

51

Outbound distribution

moving products from the factory to resellers and consumers

52

Inbound distribution

moving products and materials from suppliers to the factory

53

Reverse distribution

moving broken, unwanted or excess products returned by consumers or resellers

54

Supply Chain Management

the process of managing upstream and downstream value added flows of materials, final goods, and related info among suppliers, the company, resellers and final consumers

55

Major Logistic Functions

-Warehousing
-Transportion
-Inventory Management
-Logistics info management

56

RFID

knowing exact product location

57

smart shelves

placing orders automatically

58

Transportation affects

the pricing of products, delivery performance, and condition of the goods when they arrive

59

Piggy back uses

rail and truck

60

Fishy back

uses water and truck

61

Airtruck uses

air and truck

62

Logistics Info Management

is the management of the flow of info, including customer orders billing, inventory, level, and customer data

63

EDI

Electronic data interchange

64

VMI

Vendor managed Inventory

65

Integrated logistics management

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

66

Third-Party Logistics

is the outsourcing of logistics functions to third party logistics providers (3PLs)

67

Third- Party Logistics provide

Logistics functions more effectively, lower cost, allw the company to focus on its core business, are more knowledgeable of complex logistics