Exam 4
Marketing 3305 with Davis at Baylor University
About this deck
By: Sarah Van Dyke
Created: 2011-12-11
Size: 28 flashcards
Views: 15
Created: 2011-12-11
Size: 28 flashcards
Views: 15
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Supply chain
Connected chain of all the business entities, both internal and external to the company, that perform or support the logistics function
Supply chain management
Management system that integrates all the activities performed by supply chain members into a seamless process, from the source to the point of consumption.
Benefits:
Benefits:
- Reduced costs in inventory management, transportation, warehousing and packaging.
- Improved service (time based delivery, make to order)
- Higher product availability, more customized products.
Distribution strategies
- Intensive - having a product available in every outlet where someone might want to buy
- Selective - screening dealers to eliminate all but a few in a single area
- Exclusive - established one or a few dealers w/in a given area.
Channel structures (consumer)
- Direct channel - producers sell directly to consumers
- Agent/channel broker - used in markets w/ many small manufacturers and retailers that lack resources to find one another. Agents bring them together for negotiations.
- Retailer channel - common when retailer is large and can buy in lg. quantities directly from manufacturer
- Wholesaler channel - commonly used for low-cost items frequently purchased such as candy, cigarettes and magazines.
Alternate channel arrangements
- Multiple channels / Dual distribution - use of 2+ channels to dist. the same product to target market
- Nontraditional channels - internet, mail order or informercials
- Strategic channel alliances - cooperative agreement btwn businesses to use other's already est. distribution channel
Factors affecting channel choice
Market Factors
Product factors
Product's life cycle
Producer factors
- Target customer considerations
- Geographic location and size
- lg markets = more intermediaries
- concentrated target = direct selling
Product factors
- More complex and expensive products need shorter/more direct channels
- Sell better through direct sales. Ex, pharmaceuticals,, airplanes, etc.
Product's life cycle
- Delicacy of product - perishables have short life span
Producer factors
- Large financial/marketing resources better able to use direct channels
- Can hire own sales force, warehouse, etc
Discrepancies
- Quantity - diff. btwn the amt of product produced and the amount an end user wants to buy
- Assortment - lack of all the items a customer needs to receive full satisfaction from a product.
- Temporal - when a product is produced but a customer isnt ready to buy it. Ex - christmas decorations
- Special discrepancy - diff. btwn the location of a producer and location of widely scattered markets
Channel power/control
- Channel power - Capacity of a particular marketing channel member to control or influence the behavior of others
- Channel control - When one marketing channel member intentionally affects another's behavior.
Channel leader/captain
A member of a marketing channel that exercises authority and opwer over the activities of others
Conflict, types
Horizontal conflict - channel conflict that occurs among members on the same level
Vertical conflict - occurs btwn diff. levels in a marketing channel, most typically btwn the manufacturer and wholesaler/retailer.
Vertical conflict - occurs btwn diff. levels in a marketing channel, most typically btwn the manufacturer and wholesaler/retailer.
Logistics
Strategically managing the efficient flow of storage and raw mtls, in-process inventory, and finished goods from point of origin to point of consumption.
- Sourcing and procurement of raw mtls/supplies
- Production scheduling
- Order processing
- Inventory control
- Warehousing and mtls handling
- Transportation
Just-in-time
For the manufacturer - means that raw mtls arrive at the assembly line in guaranteed working order just in time to be installed. Finished products generally shipped to the customer after completion.
For the supplier - means supplying customer w/ products in just a few days rather than weeks
For the consumer - lower costs, shorter lead times, and products that more closely meet consumer's needs
For the supplier - means supplying customer w/ products in just a few days rather than weeks
For the consumer - lower costs, shorter lead times, and products that more closely meet consumer's needs
Types of transportation, trade-offs
Air - most expensive, low reliability, but fastest transit time and highest tracability
Truck - highly accessible, lower transit times, more expensive
Rail - higher transit time, middle of the road every where else
Pipe - lower cost, most reliable, but very low capacity/accessibility/traceability.
Water - lowest cost, lowest reliability/transit time, but very capable.
Truck - highly accessible, lower transit times, more expensive
Rail - higher transit time, middle of the road every where else
Pipe - lower cost, most reliable, but very low capacity/accessibility/traceability.
Water - lowest cost, lowest reliability/transit time, but very capable.
Outsourcing
Manufacturers use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing or order processing.
Global logistics and supply chain management
- Shippers and distributors must be aware of the permits, licenses and registrations they may need to acquire, and any tariffs/quotas etc that apply in each country.
- Transportation can be a major issue w/ global supply chains
- Uncertainty regarding shipping is the top reason companies avoid international markets.
Classifying retail operations
Ownership
Level of service
Product assortment
Price
- Independent retailers
- Chain stores - owned as a group by a single organization
- Franchise - right to operate a business/sell a product
Level of service
- Full service or Self service
Product assortment
- Breadth
- Depth
Price
- Gross margin - amt of $ a retailer makes as a percentage of sales after COGS is subtracted.
Major types, focus just on high-level categories
- Department stores - housing several depts under one roof
- Specialty stores - specializes in one type of merch.
- Supermarkets - mainly food/groceries
- Drugstores - mainly pharmacy
- Convenience stores - mini. supermarket, limited line of high turnover goods
- Discount store - competes on low prices and high volume (see other card)
- Restaurants
Scrambled merchandising
Tendency to offer a wide variety of nontraditional goods and services under one roof.
Non-store retailing, types/characteristics
Shopping without a store.
Ex: automatic vending
Ex: automatic vending
Direct retailing
Selling products through door to door representatives or at home parties.
- Telemarketing
- Direct mail
- Catalogs and mail order
Franchising, types
- Product and trade name franchising - dealer agrees to sell certain products provided by manufacturer
- Business format franchising - ongoing relationship where a franchisor grants the business operating rights to a franchisee.
Retail strategy, steps
1. Defining target market
2. Develop marketing mix:
- based on demographic, geographic or psychographic characteristics
2. Develop marketing mix:
- product
- place
- promotion
- price
- presentation
- personnel
Key retail strategies
- The product offering
- Promotion strategy
- Proper location
- Retail prices
- Presentation of store/Atmosphere
- Employee type (friendly, knowledgeable) and density
- Merchandise type and density
- Sound - control the pace of traffic, attract a shoppers attention
- Visual factors - colors create a mood or focus attention
- Personnel, customer service
New developments in retailing
Interactivity - ex: Build-a-Bear workshop
M-commerce - enables consumers w/ wireless devices to connect to the internet and shop
M-commerce - enables consumers w/ wireless devices to connect to the internet and shop
Marketing channels
Set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.
Channel structures (business/industrial)
- Direct channels are typical
- Industrial wholesalers - channel members who buy and take title to products
- Private exchange - company creates a network so it can connect its business w/ suppliers
Discount store (types)
- Full line- very limited service, broad assortment of well known branded goods
- Specialty - Offers nearly complete selection of single line merch., uses self-service, discount prices and high volume
- Warehouse membership clubs - limited service wholesalers that sell a limited selection of brand name household items
- Off price retailer - sells at prices 25% or more below dept. store prices because it pays cash for stock.
Functions performed by Intermediaries
Transactional
- Contacting and Promoting
- Negotiating (type of transportation, method of payment, when to deliver)
- Risk taking (of owning inventory)
- Physically distributing
- Storing
- Sorting
- Researching
- Financing
About this deck
By: Sarah Van Dyke
Created: 2011-12-11
Size: 28 flashcards
Views: 15
Created: 2011-12-11
Size: 28 flashcards
Views: 15
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
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