Supply Chains and the Value Delivery Network
What company turned the retail music business on its head by selling music via the internet on iTunes.
What is Apple?
When two or more companies at one level join together to pursue a common marketing opportunity.
What is a horizontal marketing system?
The criteria used when a company compares the likely sales, cost, and profitability.
What are Economic Criteria?
When companies look at things like inventory levels, sales quotas, customer delivery time, etc., and decide whether to reward, help, or replace intermediaries.
What is evaluating channel members?
It includes: warehousing, inventory management, transportation, and logistics information management.
What are the major logistics functions?
This car company was used in the slides as an example for creating customer value.
What is Toyota?
When a single firm sets up two or more marketing channels to reach one or more customer segments.
What is multichannel distribution system?
It is the use of more than one but fewer than all of the intermediaries who are willing to carry a company’s products.
What is selective distribution?
When companies choose intermediaries that best fit its channel's objectives.
What is selecting channel members?
It is a highly automated warehouse designed to receive goods from various plants and suppliers.
What is a distribution center?
This deals with a system of procurement, operations management, logistics and marketing channels so that the raw materials can be converted into a finished product and delivered to the end customer.
What is supply chain management?
The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.
It is the start of designing the marketing channel.
What is finding out what the target consumers want?
When the seller requires that these dealers not handle competitors' products.
What is Exclusive Dealing?
It is an independent logistics provider that performs all the functions required to get a client’s product to the market.
What is Third Party Logistics?
This forms a vital link between the firm and its customers. Think examples such as wholesalers and retailers.
What is downstream?
A channel consisting of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole.
What is a Conventional Distribution Channel?
An example of a company positioning itself on a higher service level.
What is Four Seasons Hotels and Resorts?
When the seller allows only certain outlets to carry its products.
What is Exclusive Distribution?
Combining two or more modes of transportation.
What is Multimodal Transportation?
This is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service.
What is upstream?
A channel structure in which producers, wholesalers, and retailers acting as a unified system. One channel member owns the others, has contracts with them, or wields so much power that they must all cooperate.
What is a Vertical Marketing System (VMS)?
A strategy in which they stock their products in as many outlets as possible.
What is intensive distribution?
This is the process of selecting, managing, and motivating individual channel members and evaluating their performance over time.
What is Marketing Channel Management?
It involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.
What is Marketing Logistics?