Details Title: Chapter 15 Description: Marketing Final Total Flash Cards: 84 Created: 06/08/2009 14:54:36		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Marketing Flashcards
Cards in this set: Term Value Chain Definition a series directed at designing, producing, marketing,delivering,and servicing any -each step is usually done by a different company and adds value Term Supply Chain Definition involves the activity that turns raw materials into a product and put it in the hands of the consumer Term Supply Chain Management Definition the management of flows among firms in a supply chain, includes actual movement of good and sharing of information, goals is to maximize profitability Term Supply Chain management: Partners Definition Upstream Downstream Term Insourcing Definition when a company contracts a specialists to service their supply chain Term Upstream Partners Definition supply products necessary to create a product or goods *raw material, components parts Term Downstream Partners Definition link the company to the customer Term Channel of distribution Definition moves the product from the producer to the end user Term The importance of distribution: Direct channel Definition involves a producer and customer Term The importance of distribution: indirect Channel Definition involves one or more intermediaries -Firms and individuals that help move product to consumer or business user Term Functions of the distribution Channels Definition ease the flow of goods from puducer to consumer provide utility provide logistics functions of the product create efficiencies Make purchase easier manage risk perform communication and transaction functions-help to share info. Term Functions of DC: Utility Definition Provides time, place and ownership utility Term Functions of DC: Create efficiencies Definition by reducing the number of -breaking bulk-they purchase large quantities and sell them one or few at a time -Creating Assortments- or more product variations Term Internet in the DC Definition Radical changes in the distribution strategies -Disintermediation-elimination of traditional intermediaries -Knowledge management-sharing info. with other supply chain members. Term Wholesaling intermediaries Definition handle the flow of products from the manufacturer to the retailer. Term Independent Intermediaries Definition Channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and customers. Term Independent Intermediaries:Merchant Wholesalers Definition buy goods from manufacturers and sell to retailers and other B2B customers Term Full Service Merchant Wholesalers Definition Provides service,delivers, credit,repairs, advertising, and support Term Limited Merchant Wholesalers Definition Provides fewer more specialized services Term Types of limited Merchant Wholesalers Definition Cash-n-Carry truck Jobbers Drop Shippers rack Jobbers Mail Order Term Cash-n-Carry Definition offers low cost merchandise to customers who paying cash and handles on delivery, service customer that are too small for larger wholesalers to notice Term Truck Jobbers Definition carry products to small business customers Term Drop Shippers Definition take the title of the product but not possession Term Rack Jobbers Definition provide retail with specialty items and own and maintain racks in stores Term Types of Independent intermediaries Definition Merchant Wholesalers Merchant Agents/Brokers Manufacturer-Owned Intermediaries Term Independent Intermediaries:Merchant Agents/Brokers Definition Manufacturer agent/reps. Selling agents Commission Merchants Merchandise brokers Term Manufacturer agents/rep Definition independent sales person Carry several non-competing products Term Selling agents Definition independent marketing department whole product line or output Term Commission merchants Definition take possession of products but not title receive product on consignment Term Independent Intermediaries:Manufacturer Owned- Intermediaries Definition Sales branches Sales offices Manufacturer show rooms Term Sales branches Definition carry inventory and offers sales and service Term Sales offices Definition offers selling functions but do not carry inventory Term Manufacturer show rooms Definition product are permanently displayed here Term Types of Distribution Channels Definition Consumer Channels Business to Business Channels Dual Distribution System Hybrid Marketing System Term Consumer Channel: Direct Channel Definition Simplest channel Lowers costs When the producer handles distribution it maintains control over pricing, service and delivery all the elements of the transaction Term Consumer Channel: indirect Channel Definition Consumers are familiar with certain retailers or intermediaries Intermediaries also helps create utility, and transaction efficiencies * Producer-Retailer-Consumer -shortest indirect channel *Producer-Wholesaler-Retailer-Consumer is the most common form of indirect channel Term Business to Business Definition facilitate the flow of product production to an organization or business customer direct or indirect Term Dual Distribution System Definition a company interacts with more than one type of channels Term Hybrid Marketing System Definition add a new channel Term Steps in Distribution Planning Definition Develop Distribution objectives Evaluate environmental influences Choose a distribution strategy Develop Distribution tactics Term Develop distribution objectives Definition influenced by costs, company nature, products, intermediaries environment Term Evaluate environmental influences Definition looking at the internal and external environment. Consider ability to handle distribution and how competitors distribute. What intermediaries are available. Term Choose a distribution strategy Definition Channel relationships Conventional Marketing System Vertical Marketing system Horizontal Marketing System Distribution Intensity Term Conventional Marketing System Definition members work independently. -not very common today Term Vertical Marketing System (VMS) Definition formal cooperation amongst channel members. Members are unified systems working together. -administered VMS -corporate VMS -Contractual VMS -Retailer Cooperative -Franchise Organization Term Administered VMS Definition dominate member lead the channel. Could be an manufacturer or retailer Term Corporate VMS Definition The company own production and distribution Term Contractual VMS Definition Individual companies join through contracts Term Retailer Cooperative Definition a group of retailers who establish a wholesaling operations to enable them to compete against larger companies Term Franchise Organizations Definition franchiser is linking stages in the product distribution process. Term Horizontal Marketing System Definition two or more companies at the same channel level agree to work together to get the product to the consumer is their goal Term Distribution Intensity:Intensive Distribution Definition Selling through all suitable resellers ex. milk, pop Term Distribution Intensity:Exclusive Distribution Definition often selling through a single outlet in a region ex. piano Term Distribution Intensity:Selective Distribution Definition fewer outlets than intensive, but more than exclusive. ex. electronics Term Develop distribution tactics Definition Selecting Channel Partners Managing the Channel Term Selecting Channel Partners Definition very important these are long term commitments. Term Managing the Channel Definition Channel Leader/captain -dominate company who controls the channel able to do this because of some type of power Term Types of Power Definition Economic-controls resources Legitimate- Has legal authority Reward/Coercive-company use exclusive distribution and can give or take profitable products. Term Place decisions Definition affects pricing, product and its positioning Term Logistics Definition the process relating to the movement of products through the supply chain designing, managing, and improving the movement of products -purchasing -manufacturers -storage -transport Term Physical distribution Definition activities that move product for manufacturers to final customers Term Logistics functions Definition Order Processing Warehousing Material handling Transportation Inventory Control Term Order Processing Definition activities between receiving an order and shipping a product Term Warehousing Definition provides time utility Term Warehouses: Public Definition a company rent a portion of a warehouse Term Warehouses: Private Definition company owned warehouse Term Distribution Center Definition hold of product for a short period of time Term Material handling Definition moving a product into, within, out of warehouses Term Transportation Definition how we move product among channel members Term Modes of Transportation Definition Railroads, Water,Trucks,Air,Pipelines,Internet, Term Intermodial modes of transportation Definition a combination of modes -Fishyback -Piggyback -trainship Term Railroads Definition carry heavier and bulkier items longer distant Term Water Definition carry large products especially international Term Trucks Definition short hauls offering flexibility in location Term Air Definition high value low bulk items. fastest and most expensive form of transportation Term Pipelines Definition carry petroleum and other chemicals Term Internet Definition Carries Anything Term Fishyback Definition water and trucks combined Term Piggybacks Definition Trucks and railroads combined Term Trainships Definition Water and railroads combined Term Inventory Control Definition Activities to ensure that goods are always available to meet customer demands Term Types of Inventory Control system Definition Radio Frequency Identification (RFID) Just in time (JIT) Term RFID Definition Product tags with tiny chips containing information about the items content, origin, and destination Term JIT Definition Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed.