Marketing Test 3

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Marketing Test 3
2012-12-03 15:32:23
chapter 13 16 17 19 20 22

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  1. Product characteristics, buyer consideration, market characteristics
    Determine what type of intermediary a manufacture should use
  2. Gray marketing
    products are distributed through unauthorized channel intermediaries

    selling on ebay for a cheaper price than the manufacture approves of
  3. Establishing channel-wide network coherence
    standarize their service quality across different geographic regions in order to maintain their brand image

    suppliers, service processes, and customer service have quality standards that are maintained regardless of where the service is purchased or consumed
  4. Improving service delivery
    Choosing the right distribution channel can increase the times that servies are available or add to customer convience

    • Service firms are experimenting with different distrubution channels for their services
    • Consumers can now purchase plane tickets, plan a vacation cruise, reserve a hotel room, pay bills, purhase mutual funds and receive electronic newspapers online
  5. Managing service capacity
    If service firms don't have the capacity to meet demand, they must either turn down some prospective customers, let service levels slip, or expand capacity. 

    At tax time a tax preparation firm may have so many customers desiring its services that it either has to turn customers down or hire temporary help
  6. Minimizing wait times
    Minimizing the amount of time customers wait inline is a key factor in maintaing the quality of servie
  7. Channel partnering (cooperation)
    • Channel members rely heavily on one another
    • The joint efford of all channel members to create a channel that serves customrs and creates a competitive advantage

    Working together to gain advantage

    • Vital if each member is to gain something from other members
    •      retailers, wholesalers, manufactures, and suppliers can speed up inventory replenishment, imporve customer service and reduce the total cost of the marketing channel
  8. Vertical conflict
    • Occurs between different levels in a marketing channel, most typicallly between the manufacturer and wholesaler or the manufacturer and retailer
    •      Producer vs wholesaler conflict-producer chooses to bypass the wholesaler and deal directly with the consumer or retailer
  9. Horizontal conflict
    Healthy competition-Same Level

    • occurs among channel members on the same level
    •      two or more different wholesalers or two or more different retailers that handle the same manufactururs brands
    •      Goodyear made the decision to distribute its tires through retailers such as Sears and Wal-Mart in addition to the exclusive dealerships it had established.
  10. Channel Conflict
    A clash of goals and methods between distrubution channel members 
  11. Channel leader (captain)
    To achieve control, a channel member assumes channel leadership and exercises authority and power
  12. Channel Control
    one channel members power intentionally affects another members behavior
  13. Channel power
    channel member's ability to control or influence the behavior of other channel members
  14. Integrated relationship 
    Closely bonded relationships characterized by formal arrangements that explictly define the relationsips of the channel members

    • Vertical integration-all related channel members are woned by a single legal entity
    • Supply chain- several companies act as one
  15. Cooperative relationship
    Used when a company wants less ambiguity but doesn't want long term and or capital investment necessary in an integrated relationship

    more flexible than integrated relationsips but are more structured than arms length relationships and inclucde franchising and licensing and joint ventures and strategic alliances
  16. Arm's-Length relationship
    temporary or one-time-only and often arise froma sudden or unique need

    a relationship between companies that is loose, characterized by low relational investment and trust and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
  17. Exclusive distribution
    a form of distribution that establishes one or few dealers within a given area
  18. Selective distribution
    a form of distribution achieved by screening dealers to eliminate all but a few in any single area
  19. Intensive distribution
    a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
  20. Strategic channel alliance
    a cooperative agreement between business firms to use the other already established distribution channel

    used when its too expensive or time consuming 

    NFL using verizon to broadcast sunday games
  21. Dual distribution (Multible distribution)
    the use of tow or more channels to distribute the same product to target markets

    sell instore, online and through catalogs
  22. Direct channel
    business and industrial products

    producers sell directly to consumers
  23. Channel functions performed by intermediaries
    Transactional Logistical facilitating
  24. Facilitating
    • research and financing 
    • getting answers to key questions (who are buyers, where are they located, why do they buy)
    • financing ensures that channel members have the money to keep the products moving through the channel to the consumer
  25. Logistics
    • The efficient and cost-effective foward and reverse flow and storage of goods, services and related information into, through, and out of channel member companies
    •      transportation and storage of assets, sorting, accumulation, consolidation, and or allocation for the purpose of conforming to customer requirements
  26. Transactional
    Involve contacting and communicationg with prospective buyers to make them aware of existing products and explain their features, advantages, and benefits
  27. Agents and borkers
    wholesaling intermediaries whoe do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufactures
  28. Merchant wholesaler
    an institution that buys goods from manufactures and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and taktes title to goods, stores them in its own warehouses, and later ships them
  29. Retailer
    a channel intermediary that sells mainly to consumersSpatial discrepancy
  30. Spatial discrepancy
    the difference between the location of a producer and the location of widely scattered markets
  31. temporal discrepancy
    a situation that occurs when a product is produced but a customer is not ready to buy it
  32. discrepany of assortment
    the lack of all the items a customer needs to receive full satisfaction from a product or products
  33. discrepancy of quantity
    the difference between the amount of product produced and the amount an end user wants to buy
  34. channel members
    all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of wonership between buyer and seller in the cousre of moving the product from the manufaturer into the hands of the final consumer
  35. marketing channel (channel of distribution)
    a set of interdependent organizations that eases the transferof ownership as products move from producer to business user or consumer