Includes all of the companies involved in all of the upstream and downstream flows of products, services, finances, and information, from initial suppliers (the point of origin) to the ultimate customer (the point of consumption)
Supply Chain Management
Coordinate and integrate all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption
8 Key Processes of Focus for Supply Chain Managers
1. Customer relationship management
2. Customer service management
3. Demand management
4. Order fulfillment
5. Manufacturing flow management
6. Supplier relationship management
7. Product development and commercialization
8. Returns management
Customer Relationship Management (CRM) Process
Allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain
Customer Service Management Process
Presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced
Demand Management Process
Seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and create demand-related plans of action prior to actual customer purchasing behavior
Order Fulfillment Process
A highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time
Manufacturing Flow Management Process
Concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process
Supplier Relationship Management Process
Closely related to the manufacturing flow management process and contains several characteristics that parallel the customer relationship management process
Product Development and Commercialization Process
Includes the group activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms
Returns Management Process
Enables firms to manage volumes of returned product efficiently, while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain
The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption
Production of goods or services is not scheduled until an order is placed by the customer specifying the desired configuration
Uniquely tailors mass-market goods and services to the needs of the individuals who buy them
Just-in-time Production (JIT)
A process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials at the precise time they are needed on the production line
Electronic Data Interchange (EDI)
Order processing is becoming more automated through the use of computer technology known as electronic data interchange
Trends in Supply Chain Management
Advanced Computer Technology
Outsourcing Logistics Functions
Green Supply Chain Management
_____ coordinates and integrates all of the activities performed by channel members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value
Supply Chain Management
____ occurs when all the firms and business units participating in the supply appear as though they are reading from the same script
Supply Chain Integration
Through the use of automatic shipping notices, Ace is effective at removing unnecessary costs from its supply chain. According to a VP of inventory for the retailer, "Info gathering that used to take 3-4 phone calls now is available immediately" This is an example of the use of __ integration.
Technology and Planning
ProLog is a firm that specializes in warehousing and fulfilling orders for firms as diverse as those supplying parts for manufacturers of missile defense systems to those manufacturing pet products. Firms contract ProLog to mnge part of all of their order fulfillment process. ProLog is an ex. of a:
Third party logistics firm (3PL)
Mattel ordered 18 million toys made in China which had to be recalled because of hazards such as the use of lead paint. Mattel's ___ process allowed it to handle the product recall efficiently.
1/4 of A's 60k Ss are vendor-managed through software called the "Collaboration" program. C allows certain vendors to go online to get info to build their forecasts. The result of this app is fewer shipments fuller pallets, increased pallets per truck, & a reduction in freight. C is part of A's:
Logistics Information System
Growers of V onions determined that their chief priority for choosing a transportation mode w/in the US is transit time. However, this must be tempered by practical cost considerations. V onion growers should use ___ to ship their onions.
Motor carriers (trucks)
A manufacturer of automobile component parts that has turned over all transportation functions to an independent third party in its supply chain has engaged in:
___ provides time utility to buyers and sellers and aids manufacturers in managing supply and demand.
Which technology is an automatic identification method that works with scanned bar codes to identify products?
Radio-frequency identification (RFID)
Around the world, most retailers are ___, operating one or a few stores in their community, owned by a single person or partnership and not operated as part of a larger retail institution.
Rick owns and operates his own UPS shipping store. He has licensed the right to use UPS's business systems. Rick's shipping store is a:
The ___ at John Lewis selects the merchandise for his or her department and is often responsible for its promotion and for managing the personnel in that department.
Safeway, Publix, and other supermarket chains offer a variety of nontraditional goods and services such as video rental, flower shops, etc. This practice is called:
Specialty stores such as Best Buy, Babies R Us, and Bed, Bath & Beyond are often called category killers because:
They can destroy the profit potential for a category of merchandise for other retailers
K buys supplies for her consulting business at a retailer that stocks a limited selection of items, which are sold in bulk on a cash-&-carry basis to members only. Katie is most likely shopping at a(n):
Warehouse membership club
__ refers to shopping without visiting a store and is currently growing faster than in-store shopping because of the consumer demand for convenience.
The manufacturer of Cutco knives uses students as salespeople through the company, Vector Marketing. The salespeople go into customers' homes and demonstrate the product & the sales transactions usually occur in a home setting. This form of nonstore retailing is called:
The Cedar Store carries a full line of cedar swings, benches, etc. All of its products can be purchased through its website. The site has done well since the store's products do not need to be touched or smelled before purchase. The Cedar Store is engaging in:
Walk into Apple store immediately greeted by a clerk. The store is designed with layouts where you can experience every product. If you have questions you can visit the Genius Bar. There is a place for kids. This description is of the store's ___.
All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
Major types of retail operations
A store housing several departments under one roof. Each department is headed by a buyer, or department head who selects merchandise.
A retail store specializing in a given type of merchandise
Large, departmentalized, self-service retailer. Specializes in food. Some use scrambled merchandising.
A retail store that stocks pharmacy-related products and services as its main draw.
A miniature supermarket, carrying only a limited line of high-turnover convenience goods.
Full-line Discount Store
A retailer that offers consumers very limited service and carries a broad assortment of well-known, nationally branded "hard goods"
Shopping without visiting a store
Major forms: automatic vending, direct retailing, direct marketing, electronic retailing
The use of machines to offer goods for sale
A continuing relationship in which a franchiser grants to a franchisee the business rights to operate or sell a product
Product, Price, Promotion, Place
New Developments in Retailing
Consumers are involved in the retail experience
Purchasing goods through mobile devices
Rose is responsible for developing a plan for the optimal use of advertising, personal selling, sales promotion, and public relations. Rose is developing a:
The main function of a promotional strategy is to:
Convince the target customers that a firm's products offer competitive advantages over those of its competition
The four major promotional tools (advertising, personal selling, sales promotion, and public relations) are collectively known as the:
A $1-off coupon for Carnation Instant Breakfast powder is a form of:
The __ is the originator of the message in the communication process.
Point-of-purchase displays in grocery stores, coupons, premiums, and trial-size packages are most useful when the consumer is near the __ stage of the AIDA model.
A plan for the optimal use of the elements of promotion:
Combination of promotion tools used to reach the target market and fulfill the organization's overall goals
Most commonly distributed by traditional media, though increasingly through non-traditional media, such as websites, e-mail, blogs, and interactive video kiosks in malls and supermarkets
Helps an organization communicate with customers, suppliers, stockholders, government officials, employees, and the community
Marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness
Planned presentation to one or more prospective buyers for the purpose of making a sale
The process by which meanings are exchanged or shared through a common set of symbols
Goals and Tasks of Promotion
Explain how product works
Suggest new uses
Build company image
Encourage brand switching
Change customers' perceptions of product attributes
Influence immediate buying decision
Persuade customers to call
Remind customers that product may be needed
Remind customers where to buy product
Maintain customer awareness
Attention Interest Desire Action
Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message
Manufacturers may use aggressive personal selling and trade advertising to convince a wholesaler/retailer to carry and sell their merchandise
Stimulates consumer demand to obtain product distribution
Manufacturer uses a pull strategy by focusing promotional efforts on end consumers and opinion leaders
Integrated Marketing Communications
The careful coordination of all promotional messages to assure the consistency of messages at every contact point where a company meets the consumer
Kraft's marketing efforts for its Macaroni & Cheese include tv commercial and magazine inserts. These activities are all activities associated with:
The advertising response function helps marketers:
Use their advertising budgets wisely
Is highly regulated and is illegal in certain countries
The first step in the advertising campaign decision process is to:
Determine campaign objectives
The UPS Store's advertising "What Brown Can do for You" whiteboard campaign tells business consumers that when it comes to getting their products delivered somewhere or need shipping software or ship products worldwide that UPS can help. The ad is focusing on:
A product benefit
A print ad for Kraft Capri Sun drink packs says "take a sip of antioxidant protection" What kind of an advertising appeal is this ad using?
Many advertisements use celebrities that are liked by many people in hopes that consumers will buy the product that the celebrity endorses. Using celebrities to influence consumers to buy the product is an example of which advertising appeal?
When an advertiser decides how much space and/or time will be placed in each advertising medium that the company wants to use, the advertiser is determining its:
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