Term
| What is supply chain management? |
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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 |
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Term
| Supply Chain vs Distribution Channel |
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Definition
- supply chain is broader
- distribution channel is the process of getting FINISHED GOODS to the consumer |
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Term
Functions of Distribution Channel (6)
help?
Time....
Breaking Bulk... |
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Definition
- TIME
- PLACE
- OWNERSHIP UTILITIES
- TRANSPORTATION AND STORAGE FUNCTIONS
- BREAKING BULK
- CREATE ASSORTMENTS |
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Term
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Definition
channel members buy large quantities from manufacturers and sell smaller quantities to customers
EX. TOP RAMEN |
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Term
| Define Creating Assortments |
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Definition
provide a variety of products at no one location
- offer a variety in multiple locations |
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Term
Type of Distribution (3 types)
- and their definitions
(direct/indirect) |
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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 |
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Term
| Dual Distribution: what is it? who do they sell to? |
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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 |
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Term
Channel Leader
and
Channel Power (3)
Define each one |
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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 |
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Term
Marketing Systems:
Vertical (3 types)
Horizontal
Conventional
(define each one) |
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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 |
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Term
Wholesaling:
definition and 3 advantages |
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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 |
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Term
| Wholesaling categories (3 types) |
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Definition
Manufacturer/ service provider
Merchant/Wholesaling (largest percentage)
Agents/Brokers (smallest percentage) |
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Term
| What is a manufacturer/service provider? |
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Definition
- manufacturer does all of the wholesaling
- manufacturer-owned intermediaries have operations limited to 1 manufacturer |
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Term
| What is merchant wholesaling? |
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Definition
| take title and possession of product for further resale |
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Term
Agents and Brokers
definition? |
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Definition
| Perform various wholesaling tasks but do not take title/ownership of products |
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Term
Channel Strategy
- what are the two steps? |
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Definition
1. develop distribution objectives
(support of marketing goals, increase sales)
2. evaluate internal and external environment influences |
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Term
Retailing
DEFN
- few additional notes
(target market, what adds value) |
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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 |
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Term
Merchandise Mix
DEFN
2 things it depends on
merchandise B..
mechandise D.. |
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Definition
Merchandise Mix: strategic decision on what products to carry
Made up of:
Merchandise Breadth
Merchandise Depth |
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Term
| What is Merchandise Depth? |
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Definition
| variety of choices available for each specific product line, specialty stores |
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Term
| What is Merchandise Breadth? |
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Definition
| number of different product lines availabke |
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Term
| Define Scrambled Merchandise |
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Definition
multiple products offered
-Walgreen, gas stations |
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Term
| Define Wheel of retailing |
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Definition
out with the old in with the new
- myspace to facebook |
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Term
| what is Retail convergence? |
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Definition
| many of same products available at different places |
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Term
Atmospherics (ECOLOGICAL DESIGN)
- what does it do/influence? |
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Definition
- creating store image through the environment
- modify environment to change behavior
- layout, color, music, decor
*positive cues do increase purchase behavior |
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Term
SOR MODEL
what does each letter stand for?
-define each |
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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 |
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Term
Drawbacks to changing environment?
- what IS effective? |
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Definition
- can be expensive
- can get old
- bad cues cause "avoidance
(CONGRUOUS CUES MORE EFFECTIVE)!!
- ex. music matches environment |
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Term
Electronic Retailing
positives and negatives |
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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 |
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Term
F.O.B. pricing
-FOB ORIGIN
-FOB DELIVERY |
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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 |
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Term
Comparing online sales who has a greater sales volume?
Amazon or Walmart? |
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Definition
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Term
| What is one of the most important things to a customer when ordering a product online? |
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Definition
TRACKING INFORMATION
(TEST QUESTION) |
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Term
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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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