Advertisement Upgrade to remove ads

distribution

supply chain focuses on this marketing mix element

supply chain

flow & transformation of products, from raw materials to the end consumer
technology has HELPED

operations management

managerial activities used by an organization to transform resource inputs into products

logistics management

planning, implementing, controlling efficient flow from point A to the end (consumption)

supply management

the progress of value from raw material to final customer, and then back to redesign & final disposition

supply-chain management

integration of ops, logistics, supplies
includes mfr., research, sales, advert., shipping

marketing channel

directs flow of products from producers to consumers
determines product's market presence & buyer's accessibility to product
strategic b/c they entail l-t committments

marketing intermediaries

ex: wholesaler buy & resell products to other wholesalers, to retailers, & to industrial consumers

customer relationship mgmt (CRM)

exploits info from supply chain partners' info systems to help all channel MEMBERS make marketing strat. decisions

utility of marketing channels

1) time _utility_ (available when customer wants product)
2) place _utility_ (make products available when customer wants them)
3) possession _utility_ (customer has access to use product / store product
4) form _utility_ (CHANNEL MEMBERS can refine, assemble, etc. product to suit indiv customer needs)

consumer channels

long channel can sometimes be most efficient

industrial distributor

facilitates exchanges b/w producer & business customer
carries inventory
most effective when product has broad market appeal
does selling activities at relatively low cost to mfr and reducing a producer's financial burden
unfortunately, they may also stock competitors

manufacturer's agent

independent businessman who sells complimentary products of several producers in assigned territories
paid by commission

dual distribution

use 2+ marketing channels for distributing the same product to the SAME target market.

strategic channel alliance

agreement, the products of 1 organiz. are distributed through the marketing channels of ANOTHER

channel selection decision

affected by 1+ of:
customer chars (business customers prefer to deal directly w/producer)
product attributes (less expensive, more standardized products can use long channels. cars & dairy don't)
type of organiz. (large firms can negot. better deals)
competition (can adapt a similar stat. to competition)
marketing environm. forces (might need to use a low-cost channel)
chars of intermediaries

intensive distribution

all available outlets for distrib. product are used
for convenient products

selective distribution

only some available outlets in an area are chosen to distribute product
for shopping products

exclusive distribution

only ONE outlet used for large geo area
for sth infrequently purchased

channel conflict

prevent this from happening by providing competing resellers w/ diff brands, negot. territorial issues, etc.

vertical channel integration

combines 2+ STAGES of the channel under 1 mgmt
they coordinate efforts to reach a desired target market

vertical marketing systems

a single channel member manages channel activity to achieve low-cost distribution

horizontal channel integration

combing organiz. at the same lvl of operation under 1 mgmt
can be from mergers

physical distribution (logistics)

activities to move products from producers to consumers

outsourcing

contracting physical distribution to 3rd party

cycle time

time needed to complete a process

order processing

receiving & transmitting sales order info
can contrib to high customer satisfaction, decreased costs, etc.

inventory mgmt

developing & maintaining adequate # of products

stock outs

when too few products in inventory

safety stock

extra inventory to guard against stockouts

materials handling

physical handling of tangible goods
minimizes inventory mgmt costs

private warehouses

company-owned facilities

public warehouses

storage spaces leased to other co's.

distribution center

large facility for receiving, warehousing, redistributing products to stores or customers

transportation

move products
MOST EXPENSIVE distrib. function

intermodal transportation

2+ transportation modes used in combo

freight forwarders

organiz. that consolidates shipments from several firms into efficient lot sizes

megacarriers

freight transport co's that offer several modes of shipment

typing agreement

when supplier furnishes a product to a channel member, and also says that the channel member must purchase other products as well

exclusive dealing

when mfr. FORBIDS intermediary to carry products of competing mfr's.
producers HAVE RIGHT to choose channel members

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set