40 terms

ch 15 - supply chain

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
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
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
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