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Marketing Channels and Supply Chain Management
| Distribution | Movement of goods and services from producers to customers |
| Marketing (distribution) channel | System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user |
| Logistics | Process of coordinating the flow of information, goods, and services among members of the distribution channel |
| Supply chain management | control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers |
| Physical Distribution | Broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer |
| Marketing Intermediary | is an organization that operates between producers and consumers or business users |
| Wholesaler | is an intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers |
| Direct Channel | carries foods directly from a producer to the business purchaser or ultimate user |
| Direct Selling | a marketing strategy in which a producer establishes direct sales contacts with its product's final users |
| Industrial distributor | commonly refers to intermediaries in the business markets that take title to the goods |
| Manufacturers' representative | provides an independent sales force to contact wholesale buyers |
| Dual Distribution | refers to movement of products through more than one channel to reach the firm's target market |
| Reverse channels | channels designed to return goods to their producers (recycling) |
| Product Factors | Product characteristics that guide the choice of optimal marketing channel strategy |
| Organizational and Competitive factors | Companies with strong financials, management, and marketing resources feel less need for help from intermediaries |
| Distribution Intensity | refers to the number of intermediaries through which a manufacturers distributes its foods in a particular market |
| Intensive Distribution | seeks to distribute a product through all available channels in a trade area |
| Selective Distribution | a firm chooses only a limited number of retailers in a market area |
| Exclusive Distribution | Distribution of a product through a single wholesaler or retailer in a specific geographic region |
| Exclusive dealing agreement | which prohibits a marketing intermediary (a wholesaler, more typically a retailer) from handling competing products |
| Closed Sales Territories | to restrict their distributors to certain geographic regions |
| Tying Agreements | which allow channel members to become exclusive dealers only if they also carry products other than those they want to sell |
| Channel Captain | Dominant and controlling member of a marketing channel |
| Horizontal Conflict | sometimes results from disagreements among channel members at the same level, such as two or more wholesalers or two or more retailers, or among marketing intermediaries of the same type |
| Vertical Conflict | may result in frequent and severe conflict. channel members at different levels find many reasons for disputes, as when retailers develop private brands to compete with producers brands |
| Gray Goods | goods produced for overseas markets often at reduced prices, enter U.S. channels through the actions of of unauthorized foreign distributors |
| Vertical Marketing System | planned channel system designed to improve distribution efficiency and cost-efficacy by integrating carious functions throughout the distribution chain |
| Forward Integration | a firm attempts to control downstream distribution |
| Backward Integration | occurs when a manufacturer attempts to gain greater control over inputs in its production process |
| Corporate marketing system | when a single owner runs an organization at each stage of the marketing channel |
| Administered marketing system | achieves channel coordination when a dominant channel member exercises its power |
| Contractual marketing system | coordinates distribution through formal agreements among channel members |
| Retail Cooperative | a group of retailers establishes a shared wholesaling operation to help them compete with chains |
| Franchise | in which a wholesaler or dealer agrees to meet the operating requirements of a manufacturer or other franchiser |
| Supply Chain | complete sequence of suppliers and activities that contribute to the creation and delivery of merchandise |
| Upstream management | involves managing raw materials, inbound logistics and warehouse and storage facilities |
| Downstream management | involves managing finished product storage, outbound logistics, marketing and sales, and customer service |
| Radio frequency identification | technology that uses a tiny chip with identification information that can be read by a scanner using radio from a distance |
| Enterprise resource planning system | is an integrated software system that consolidates data from among the firm's unit |
| Third-Party (contract) logistics firms | specialized in handling logistical activities for their clients |
| Customer Service | level of customer service the distribution activites support |
| Transportation | how the firm ships its products |
| Inventory control | quantity of inventory the firm maintains at each location |
| Protective packaging and materials handling | how the firm packages and efficiently handles goods in the factory, warehouse, and transport terminals |
| Order Processing | how the firm handles orders |
| Warehousing | the distribution system's location of stock and number of warehouses the firm maintains |
| Sub-optimization | results when the managers of individual physical distribution functions attempt to minimize costs, but the impact of one task leads to less than optimal results on the others |
| Customer service standards | state the goals and define acceptable performance for the quality of service a firm expects to deliver to its customers |
| Common carriers | often considered the backbone of the transportation industry, provide transportation services for hire to the general public |
| Contract carriers | are for-hire transporters that do not offer their services to the general public |
| Private Carriers | do not offer services for hire. Used solely in internationally generated freight in private companies |
| Intermodal operations | Combination of transport modes, such as rail and highway carriers (piggyback). and water and air carriers (fishy-back) to improve customer service and achieve cost advantages |
| Vendor managed inventory | systems like this are based on the assumption that suppliers are in the best position to spot understocks or surpluses, cutting costs along the supply chain that can be translated into lower prices at the checkout counter |
| Materials handling system | logistics managers arrange and control activities for moving product within plants, warehouses, and transportation terminals |
| Containerization | combining several unitized loads |
What helps producers distribute goods from sellers to customers?
A distribution channel represents a chain of businesses or intermediaries through which the final buyer purchases a good or service. Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer.
Which of the following is an individual or firm that helps to distribute a product?
Intermediary - An independent or corporate-owned business that helps move products from the producer to the ultimate consumer. Intermediate market - A set of wholesalers and retailers that buy goods from others and re-sells them.
What is the role of a sales agent during the distribution process?
A direct employee of a distributor or wholesale organization, the distribution sales representative is responsible for selling the products her company sells. She is often responsible for a specific territory and the customers that reside within that territory.
Which distribution channel is used by companies that distribute their goods through their own system of outlets quizlet?
Terms in this set (15) Which distribution channel is used by companies that distribute their goods through their own system of outlets? Explanation: B) This illustrates retail distribution.