Chapter 14: Marketing Channels and Supply Chain Management Flashcards Preview

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Flashcards in Chapter 14: Marketing Channels and Supply Chain Management Deck (40)
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1

Marketing channel (channel of distribution)

A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

2

Channel members

All parties in the marketing channel that negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller as they move the product form the manufacturer into the hands of the final consumer.

3

Supply chain

The connected chain of all the business entities, both internal and external to the company, that perform or support the marketing channel functions.

4

Discrepancy of quantity

The difference between the amount of product produced and the amount an end-user wants to buy.

5

Discrepancy of assortment

The lack of all the items a customer needs to receive full satisfaction from a product or products.

6

Temporal discrepancy

A product is produced but a customer is not ready to buy it.

7

Spatial discrepancy

The difference between the location of a producer and the location of widely scattered markets.

8

Retailer

A channel intermediary that sells mainly to consumers and business customers.

9

Direct channel

A distribution channel in which producers sell directly to consumers.

10

Dual distribution (multiple distribution)

The use of two or more channels to distribute the same product to target markets.

11

Strategic channel alliances

Cooperative agreements between business firms to use one of the manufacturer's already established distribution channels.

12

Intensive distribution

A form of distribution aimed at having a product available in every outlet where target customers might want to buy it.

13

Coverage

Ensuring product availability in every outlet where potential customers might want to buy it.

14

Selective distribution

A form of distribution achieved by screening dealers to eliminate all but a few in any single area.

15

Exclusive distribution

A form of distribution that involves only one or a few dealers within a given area.

16

Channel power

A marketing channel member's capacity to control or influence the behaviour of other channel members.

17

Channel control

One marketing channel member intentionally affects another member's behaviour.

18

Channel leader (channel captain)

A member of a marketing channel who exercises authority and power over the activities of other channel members.

19

Channel conflict

A clash of goals and methods among distribution channel members.

20

Horizontal conflict

A channel conflict that occurs among channel members on the same level.

21

Vertical conflict

A channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer.

22

Channel partnering (channel cooperation)

The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage.

23

Supply chain management

A management system that coordinates and integrates all the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

24

Logistics

The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.

25

Logistics information system

The link that connects all the logistics functions of the supply chain.

26

Supply chain team

An entire group of individuals who orchestrate the movement of goods, services, and information from the source to the customer.

27

Procurement

The process of buying goods and services for use in the operations of an organization.

28

Mass customization (build-to-order)

A production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications

29

Just-in-time production (JIT)

A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line.

30

Order processing system

A system whereby orders are entered into the supply chain and filled.