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MKTG360 EXAM3
chapters 15/16 (wholesaling/retailing)
30
Marketing
Undergraduate 3
04/04/2012

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Cards

Term
What is supply chain management?
Definition
-includes all firms that engage in the activities that are necessary to converting RAW MATERIALS into a GOOD OR SERVICE.

- flows among firms in supply chain to MAXIMIZE profit
Term
Supply Chain vs Distribution Channel
Definition
- supply chain is broader
- distribution channel is the process of getting FINISHED GOODS to the consumer
Term
Functions of Distribution Channel (6)
help?
Time....
Breaking Bulk...
Definition
- TIME
- PLACE
- OWNERSHIP UTILITIES
- TRANSPORTATION AND STORAGE FUNCTIONS
- BREAKING BULK
- CREATE ASSORTMENTS
Term
What is breaking bulk?
Definition
channel members buy large quantities from manufacturers and sell smaller quantities to customers
EX. TOP RAMEN
Term
Define Creating Assortments
Definition
provide a variety of products at no one location
- offer a variety in multiple locations
Term
Type of Distribution (3 types)
- and their definitions
(direct/indirect)
Definition
(1)Consumer:
direct: more profitable/not as much coverage
- works with customer, controls price
Indirect: less profit/more coverage
- panosonic sells TV's to best buy

(2) Business to Business
Direct: high dollar, high profit, few customers
Indirect: Merchant wholesaler buys from a manufacturer and sells to business customers

(3)Internet
DISINTERMEDIATION!!
- cuts cost and improves efficiency
- fewer employees, less decor in store
removing of groups (any middleman)
- consumer gets product FASTER
Term
Dual Distribution: what is it? who do they sell to?
Definition
- producers, customers, dealers, wholesalers like more than one type of channel
-Pharmaceuticals
Sells to hospitals
Sells to store chains (walgreens,walmart)
Sells to insurance companies
Term
Channel Leader
and
Channel Power (3)

Define each one
Definition
Channel leader: dominant firm that controls channel because they have power

Channel Power: if you have power then you have---
Economic Power: control resources
Legitimate Power- legal authority
Reward/Coercive Power- ability to give products
Term
Marketing Systems:
Vertical (3 types)
Horizontal
Conventional
(define each one)
Definition
Vertical: Formal cooperation between two or more firms
- maximizes efficiency/effectiveness with low costs
1. administered: independent but voluntarily work together
2. corporate: single firm owns manufacturing, retailing, and wholesaling
3. Contractual:rules laid out on contract

Horizontal: two or more firms work together in the same channel to get their product to the customer
(ex. subway/AT&T in walmart)

Conventional:
-multi-level distribution
-channel members work independently
- little concern for others
- limited to buying and selling
Term
Wholesaling:
definition and 3 advantages
Definition
DEFN: buying/handling of goods/services to resale to organizational buyers
ADV:
- allow manufacturers/service providers to distribute locally without making customer contacts
- greater assortment of items/fewer transactions
Term
Wholesaling categories (3 types)
Definition
Manufacturer/ service provider

Merchant/Wholesaling (largest percentage)

Agents/Brokers (smallest percentage)
Term
What is a manufacturer/service provider?
Definition
- manufacturer does all of the wholesaling
- manufacturer-owned intermediaries have operations limited to 1 manufacturer
Term
What is merchant wholesaling?
Definition
take title and possession of product for further resale
Term
Agents and Brokers
definition?
Definition
Perform various wholesaling tasks but do not take title/ownership of products
Term
Channel Strategy
- what are the two steps?
Definition
1. develop distribution objectives
(support of marketing goals, increase sales)
2. evaluate internal and external environment influences
Term
Retailing
DEFN
- few additional notes
(target market, what adds value)
Definition
- final stop on distribution path
- products are sold to consumers for personal use
* know your target market, determines what products you will carry
- add value with image, inventory, quality, location ETC
Term
Merchandise Mix
DEFN
2 things it depends on
merchandise B..
mechandise D..
Definition
Merchandise Mix: strategic decision on what products to carry
Made up of:
Merchandise Breadth
Merchandise Depth
Term
What is Merchandise Depth?
Definition
variety of choices available for each specific product line, specialty stores
Term
What is Merchandise Breadth?
Definition
number of different product lines availabke
Term
Define Scrambled Merchandise
Definition
multiple products offered
-Walgreen, gas stations
Term
Define Wheel of retailing
Definition
out with the old in with the new
- myspace to facebook
Term
what is Retail convergence?
Definition
many of same products available at different places
Term
Atmospherics (ECOLOGICAL DESIGN)
- what does it do/influence?
Definition
- creating store image through the environment
- modify environment to change behavior
- layout, color, music, decor
*positive cues do increase purchase behavior
Term
SOR MODEL
what does each letter stand for?
-define each
Definition
Stimulus: almost any aspect of a customer and employee environment
- color, lighting, clutter/crowding

Organism: how consumer reacts
- "affect" is the emotional reaction
- "arousal" is the physiological state

Response: should I stay or should I go?
Approach- stay, work, affiliate
Avoidance- do not stay, work, or affiliate
Term
Drawbacks to changing environment?
- what IS effective?
Definition
- can be expensive
- can get old
- bad cues cause "avoidance
(CONGRUOUS CUES MORE EFFECTIVE)!!
- ex. music matches environment
Term
Electronic Retailing
positives and negatives
Definition
ADV
- search in hyperspace
- retailers can update price/product 24/7
- time saver

DISADV:
- wait to receive
- no touch and feel
- credit card info, security
- cannibalize in-store sales
Term
F.O.B. pricing
-FOB ORIGIN
-FOB DELIVERY
Definition
FOB origin- ownership transferred as soon as it is shipped from place of origin
-customer also responsible for shipping cost

FOB delivery- ownership transferred once reach point of delivery
Term
Comparing online sales who has a greater sales volume?
Amazon or Walmart?
Definition
AMAZON!

(TEST QUESTION)
Term
What is one of the most important things to a customer when ordering a product online?
Definition
TRACKING INFORMATION

(TEST QUESTION)
Term
RF chip technology
Definition
-Rate of frequency, great for inventory control
- can tell how many products left the shelf so you can restock, also tell which product is selling/successful
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