Legal Issues
Producers have the right to choose or reject the channel members with which they will do business.
What is refusal to deal?
Freight transportation firms that provide several modes of shipment
What is megacarriers?
–Functions as an information system that links marketing channel members and outsourcing firms together
What is Electronic data interchange?
•The dominant leader of a marketing channel or a supply channel
What is channel captain?
An independent businessperson who sells complementary products of several producers in assigned territories and is compensated through commissions
What is manufacturer's agent?
A situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers
What is exclusive dealing?
–Containerization facilitates this by consolidating shipments into sealed containers for transport by piggyback (truck and rail), fishyback (truck and water), and birdyback (truck and air).
What is intermodal transportation?
An inventory management approach in which supplies arrive just when needed for production or resale
What is just in time inventory?
enables retailers, wholesalers, suppliers, and logistics providers to speed up inventory replenishment, improve customer service, and cut the costs of bringing products to the consumer.
What is cooperation?
COMPETITION IS AT ITS HIGHEST LEVEL
WHAT IS MATURITY?
A franchiser may tie the purchase of equipment and supplies to the sale of franchises, justifying the policy as necessary for quality control and protection of the franchiser’s reputation.
What is tying agreement?
–Storage space and related logistics facilities that can be leased by companies
What is public warehouses?
Product availability and customer creditworthiness is verified; order assembly occurs
What is order handling?
The ability of one channel member to influence another member’s goal achievement
WHAT IS CHANNEL POWER?
Manage transportation, warehousing, materials handling, inventory control, and communication.
What is logistics?
To tighten control over product distribution, a manufacturer may try to prohibit intermediaries from selling outside of designated sales territories.
What is restricted sales territories?
–Helps stabilize prices and the availability of seasonal items
What is warehousing?
•enhances the transparency of the supply chain, allowing all marketing channel members to track the movement of goods and improve their customer service.
What is information technology?
The dominant leader of a marketing channel or a supply channel
WHAT IS CHANNEL CAPTAIN?
How many days in a year?
What is 365?
courts and regulatory agencies determine under what circumstances channel management practices violate this underlying principle and must be restricted.
What is Sherman Antitrust Act and the Federal Trade Commission Act?
•Most flexible schedules and routes
What are trucks?
Firms that have special expertise in core physical distribution activities such as warehousing, transportation.
What is Third-party logistics (3PL) firms?
Intermediaries overemphasize competing products or diversity into product lines traditionally handled by other intermediaries
WHAT IS CHANNEL CONFLICT?
What is the 7th month of the year?
What is July?