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MKT 320F-Test 3
Ch. 12
20
Marketing
Undergraduate 3
11/05/2009

Additional Marketing Flashcards

 


 

Cards

Term
logistics
Definition

-the transporting, storing, and handling of goods in ways that match target customers' needs with a firm's marketing mix-both within individual firms and along a channel of distribution

-also called Physical Distribution (PD)

Term
customer service level physical distribution
Definition
-how rapidly and dependably a firm can deliver what they, the customers, want
Term
The physical distribution (PD) concept
Definition

-says that all transporting, storing, and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level

-both lower costs and better service help increase customer value

Term
total cost approach
Definition

-in selecting a PD system, the total cost approach involves evaluating each possible PD system and indentifying ALL of the costs of each alternative.

-uses cost accounting and economics

Term
Just-in-time delivery system
Definition

-key advantage for business customers is that it reduces their PD costs-esp. storing and handling costs

-but since there's no backup plan, JIT requires that supplier have high quality control in every PD activity

-shifts greater responsibility for PD activities backward in the channel

Term
supply chain
Definition
-the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers
Term
Electronic Data Interchange (EDI)
Definition

-an approach that puts info in a standardized format easily shared between different computer systems

-replaced purchase orders, shipping reports, and other paper documents in many companies

-customers sends order directly to supplier's computer, and the EDI starts scheduling production, order assembly, transportation, etc.

Term
Electronic Data Interchange (EDI)
Definition

-an approach that puts info in a standardized format easily shared between different computer systems

-replaced purchase orders, shipping reports, and other paper documents in many companies

-customers sends order directly to supplier's computer, and the EDI starts scheduling production, order assembly, transportation, etc.

Term
transportation
Definition

-mkt. function of moving goods

-can help achieve economies of scale in production-if production costs can be reduced by producing larger quantities in one location, these savings can offset the added cost of transporting the finished products to customers

-transporting costs add little to the cost of products that are already valuable relative to their size and weight (ex. a case of medicine) but add a lot to the total cost for heavy products of low value

Term
railroads
Definition

-workhorse of the US transportation system

-carry more over more miles than any other mode, but caount for less than 10% of transport revenues b/c they carry heavy/bulky but low cost goods.

-best for full carloads of goods

-worst for perishable items or those in urgent demand

Term
trucks
Definition

-flexibility and speed makes them better at moving small quantities of goods for shorter distances

-go where rails cant

-relaiable in meeting delivery schedules

-75% of US consumer products travel at least part of the way from producer to consumer by truck

 

Term
water transportation
Definition

-slowest

-lowest-cost way of shipping heavy freight

-important for international shipments

Term
airfreight
Definition

-most expensive cargo transporting mode is airplane

-but greater speed may offset the added cost

-good for high-value, low-weight goods, small emergency deliveries and perishable items

-airfreight is growing

-benefits of this speed are less spoilage, theft, and damage

-althought transporting costs of air shipments may be higher, the total cost of distribution may be lower b/c it reduces the cost of packing, unpacking, and preparing goods for sale and helps reduce inventory costs by eliminating outlying warehouses

Term
containerization
Definition

-grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destinations

-protects products and simplifies handling

Term
piggyback service
Definition
-means loading truck trailers-or flatbed trailers carrying containers-on railcars to provide both speed and flexibility
Term
storing
Definition
-can increase the value of goods, but always involves costs too
Term
private warehouses
Definition

-storing facilities owned or leased by companies for their own use

-firms use these when a large volume of goods must be stored regularly

-fixed investment, high unit cost if volume is low but very low unit cost if volume is high, high control, highly adequate for product lines, low flexibility-fixed costs have already been committed

Term
public warehouse
Definition

-independent storing facilities

-firms use these if they dont have a regular need for space or if they must maintain stocks in many locations

-low cost, low managerial control, may not be convenient, high flexibility-easy to end arrangment

Term
distribution center
Definition

-a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs

-faster inventory turnover and easier bulk-breaking reduce the cost of carrying inventory

-slower but less expensive method than direct shipping

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