PCM Key Terms - 6.1 Flashcards
(37 cards)
Administered Vertical Marketing System
Vertical marketing system in which coordination is achieved at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.
Buyer Requirements
The interests buyers might want fulfilled when they purchase a firm’s products or services. These fall into four broad categories: Information, Convenience, Variety, and Pre- or Postsale Services
Channel Conflict
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
Containerization
The consolidation of many items into a single, large container that is sealed at its point of origin and opened at its destination. The items may be transported by rail (piggyback), air (birdyback), ship (fishyback)
Contractual Vertical Marketing System
Vertical marketing system in which independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone
Corporate Vertical Marketing System
Vertical marketing system in which the successive stages of production and distribution are combined under a single ownership
Customer Service
The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
Direct Marketing Channels
Marketing channels in which the producer and the ultimate consumers deal directly with each other
Distributor
A type of reseller or marketing intermediary that resells manufactured products without significantly altering their form. Distributors often buy from manufacturers and sell to other businesses like retailers in a B2B transaction.
Dual Distribution
The use of two or more marketing channels to distribute the same products to the same target market
Exclusive Distribution
Distribution strategy in which only one retailer in a specified geographical area carries a firm’s products
Franchising
A form of licensing in which a franchiser, in exchange for a financial commitment, grants a franchisee the right to market its product in accordance with the franchiserês standards
Indirect Marketing Channels
Marketing channels in which intermediaries are inserted between the producer and the consumer and perform numerous channel functions
Intensive Distribution
Distribution strategy in which a firm tries to place all its products and services in as many outlets as possible
Intermediary
Those who make possible the flow of products from producers to ultimate consumers by performing transactional, logistical, and facilitating functions
Inventory Reorder Point*
The inventory level that signals the need to place a new order. Reorder Point = (Order Lead Time X Usage Rate) + Safety Stock
Just-In-Time (JIT)
An inventory-management approach in which supplies arrive just when needed for production or resale
Logistics (Physical Distribution)
Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Marketing Channel
Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
Materials Handling
Physical handling of tangible goods, supplies, and resources
Middleman
An intermediary between the manufacturer and end-user markets
Order Cycle Time (Replenishment Time)
The time between the ordering of an item and when it is received and ready for use or sale
Order Lead Time
The average time lapse between placing an order and receiving it
Order Processing
The receipt and transmission of sales order information. This most likely involves three main tasks: Order Entry, Order Handling, and Order Delivery
