Term
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Definition
| Individuals and firms involved in the proces of making product or service available for use or consumption by consumers or industrial users. |
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Term
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Definition
| Independently owned firms that take title to the merchandise they handle |
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Term
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Definition
| Work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory |
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Term
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Definition
| Represent a single producer and are responsible for the entire marketing function of that producer |
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Term
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Definition
| Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales |
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Term
| What 3 functions are performed by intermediaries? |
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Definition
| Transactional, logistical, and facilitating functions |
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Term
| What is involved in the intermediaries transactional function? |
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Definition
| buying, selling and risk taking because they stock merchandise in anticipation of sales |
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Term
| What is involved in the intermediaries logistical function? |
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Definition
| storing, sorting, transporting of the product |
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Term
| what is involved in the intermediaries facilitating function? |
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Definition
| helping producers make goods more attractive to customers (by providing market research and offering financing) |
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Term
| how do intermediaries create value? |
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Definition
| they minimize the number of sales contacts necessary to reach a target market |
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Term
| How do customers benefit from intermediaries? |
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Definition
| they recieve value in the form of the main utilities |
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Term
| what are the 4 utilities provided to customers by the marketing channel? Name and explain. |
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Definition
time - having product when you want it
place - having the product where you want it
form - enhancing a product to make it appealing to customers
posession - helping buyers take posession of a product |
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Term
| What is a direct channel? How are a producers functions different from other marketing channels? |
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Definition
| a marketing channel in which the producer and consumer deal directly with each other; the producer performs all of the channel functions. |
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Term
| What are indirect channels? |
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Definition
| when there are severl intermediaries in the marketing channel in order to perform numerous channel functions |
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Term
| What are 3 types of intermediaries in indirect consumer product channels? |
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Definition
| retailers, wholesalers, and agents |
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Term
| when would a retailer be used? (2 reasons) |
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Definition
| when the retailer is large and can buy in large quantities from a producer or when the cost of inventory makes it too expensive to use a wholesaler |
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Term
| When would a wholesaler be used? |
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Definition
| when the products have low-cost and low-unit value and are frequently purchased by consumers |
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Term
| when would an agent be used? |
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Definition
| when there are many small retailers and many small manufacturers |
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Term
| When are direct channels used for business goods? |
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Definition
| when the buyers are large and well defined, sales effort requires extensive negotiations, and products are of high unit value and require hands-on expertise in terms of installation or use |
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Term
| What intermediary is exclusive to business goods? |
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Definition
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Term
| what does an industrial distributor do? What consumer goods intermediary are they similar to? |
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Definition
| selling, stocking, delivering a full product assortment, and financing; similar to wholesalers |
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Term
| What intermediary is used in both consumer and business goods? |
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Definition
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Term
| What do electronic marketing channels do? |
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Definition
| employ the internet to make goods and services available for consumption or use by consumers or business buyers |
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Term
| How to electronic marketing channels create utility? |
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Definition
| By combining electronic and traditional intermediaries |
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Term
| what is cheaper: electronic marketing channels or traditional intermediaries? why? in what aspects? |
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Definition
| electronic marketing channels because of efficiencies made possible by information technology. only in the transactional and facilitating functions |
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Term
| what downside is there to electronic marketing channels? |
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Definition
| they cannot perform the logistics function |
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Term
| What do direct marketing channels do? give examples |
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Definition
| allow consumers to buy products by interacting with various advertising media without face-to-face meeting with a salesperson. i.e. mail-order, direct-mail, catalog, etc... |
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Term
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Definition
| blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining,and building relationships with consumers (within the same firm) |
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Term
| what benefit does multichannel marketing have with regard to the value of each type of marketing channel? give an example |
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Definition
| it can leverage the value adding capabilities of different channels. i.e. a customer returning a nonstore purchase at a store |
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Term
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Definition
| an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product i.e. G.E. sellin appliances to apartment builders and Lowes simultaneously |
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Term
| what strategy is often employed with dual distribution? |
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Definition
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Term
| strategic channel alliance |
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Definition
| when one firm uses other firm’s marketing channel in order to sell a product |
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Term
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Definition
| independently owned firms that take title to the merchandise they handle |
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Term
| what are merchant wholesalers classified into? |
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Definition
| full-service or limited-service wholesalers |
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Term
| general merchandise wholesalers |
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Definition
| a.k.a. "full-line" wholesalers, carry a broad assortment of merchandise and perform all channel functions |
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Term
| specialty merchandise wholesalers |
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Definition
| a.k.a. "limited-line" wholesalers, offer a relatively narrow range of products with an extensive assortment within the product lines carried and perform all channel functions |
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Term
| What are the 4 major types of limited-service (limited-line) wholesalers? |
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Definition
| rack jobbers, cash and carry wholesalers,drop shippers/desk jobbers, and truck jobbers |
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Term
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Definition
| furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers |
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Term
| Cash and carry wholesalers |
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Definition
| take title to merchandise but sell only to buyers who call on them, pay cqash for merchandise, furnish their own transportation for merchandise,carry a limited product assortment and do not make deliveries, extend credit, or supply market information |
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Term
| drop shippers/desk jobbers |
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Definition
| wholesalers that own the merchandise they sell but do not physically handle, stock, or deliver it |
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Term
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Definition
| small wholesalers that have a small warehouse from which they stock their trucks for distribution to retailers; usually handle limited assortments of fast-moving or perishable items that are sold for cash directly from trucks |
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Term
| How are agents and brokers different from merchant wholesalers? How do they make profit? |
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Definition
| they do not tak title to merchandise and typically perform fewer channel functions; they make profit from commissions or fees paid for their services |
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Term
| What are two major types of agents used by producers? |
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Definition
| manufacturers agents and selling agents |
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Term
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Definition
| a.k.a. "manufacturer's representatives," work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory, primarily responsible for selling |
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Term
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Definition
| represent a single producer and are responsible for the entire marketing function of that producer (design promotional plans, set prices, determine distribution policies, and make recomendations on product strategy) |
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Term
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Definition
| independent firms or individuals whose principal function is to bring buyers and sellers together to make sales |
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Term
| manufacturer's branch office |
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Definition
| a wholly owned extension of the producer that carries a producer's inventory and performs the functions of a full-service wholesaler |
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Term
| manufacturer's sales office |
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Definition
| a wholly owned extension of the producer that does not carry inventory, performs only a sales function, and serves as an alternative to agents and brokers |
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Term
| why are vertical marketing systems and channel partnerships arranged? |
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Definition
| to improve the efficiency of performing all channel functions and achieving greater marketing effectiveness |
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Term
| vertical marketing systems |
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Definition
| professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact |
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Term
| what are the 3 major types of vertical marketing systems? |
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Definition
| corporate, contractual, and administered |
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Term
| corporate vertical marketing system |
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Definition
| combination of successive stages of production and distribution under a single ownership |
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Term
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Definition
| when a producer owns the intermediary at the next level down in the channel |
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Term
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Definition
| when a retailer owns a manufacturing operation |
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Term
| contractual vertical marketing system |
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Definition
| when independent production and distribution firms intergrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone |
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Term
| what are the 3 variations of contractual agreements? |
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Definition
| wholesaler-sponsored voluntary chains, retail sponsored cooperatives, and franchise programs |
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Term
| wholesaler-sponsored voluntary chains |
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Definition
| when a wholesaler develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts |
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Term
| retail-sponsored cooperatives |
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Definition
| when small, independent retailers form an organization that operates a wholesale facility cooperatively; they concentrate their buying power and plan collaborative promotional and pricing activities |
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Term
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Definition
| a contractual agreement between a parent company and an individual or firm that allows the franchisee to operate a certain type of business under an established name and according to specific rules |
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Term
| administered vertical marketing |
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Definition
| achieves coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership |
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Term
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Definition
| agreements and procedures among channel members for ordering and physically distributing a producer's products through the channel to the ultimate consumer |
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Term
| What are Tying Arrangements? When are they illegal? |
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Definition
| when the supplier requires the franchisee who purchases some products to also buy other products from the same supplier; Illegal if tied products could be purchased at fair market value from other suppliers |
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