MKT 350 Test 4 Flashcards

2455101130	Why would a manufacturer want to use a wholesaler or retailer?	Supply chains add value to customer. Retailers lessen transactions which are less expensive. Competitive advantage increases	0
2455101131	Intensive distribution	A product is distributed through as many channels as possible so that consumers encounter the product virtually everywhere they go	1
2455101132	Selective distribution	That a moderate number of retailers are used in a treadle area	2
2455101133	Exclusive distribution	A manufacturer grants exclusive rights to a limited number of wholesalers or retailers in a given geographic area	3
2455101134	Types of power	Coercive, reward, legitimate, referent, and expert	4
2455101135	Coercive power	Based on ability to inflict punishment or deprive others of something valued	5
2455101136	Reward power	The ability to influence others by the granting or promising of desirable consequences	6
2455101137	Legitimate power	All managers have power that results from manager formal positions within the organization ( legal contracts)	7
2455101138	Referent power	One channel member believes their goals to be congruent with another's goals and so likely to conform to the latter's influence attempts	8
2455101139	Expert power	One channel member believes the other to have superior expertise and so is likely to conform to the latter's influence attempts	9
2455101140	Channel leader	Dominant leader of a marketing channel or supply chain, may be a producer, wholesaler, or retailer, and may establish channel policies and coordinate development of the marketing mix, possesses channel power	10
2455101141	Vertical intergration	The business practice of owning all of the businesses involved in each step of manufacturing process	11
2455101142	Types of vertical intergration	Corporate, administered, and contractual	12
2455101143	Corporate	They own everything from manufacturing, wholesale, and retailing.	13
2455101144	Administered	Channel dominated by one powerful member who acts as a channel captain	14
2455101145	Contractual	Channel coordinated through contractual agreements among channel members (ex: McDonalds)	15
2455101146	Tying agreements	Buyer is required to buy one product in order to get another. Legal when proper product functionally requires use of tied product.	16
2455101147	Exclusive dealing	Arrangement a manufacture makes with a reseller to handle only its products not those of its competitors	17
2455101148	What is wholesaling?	Selling goods and services to those buying resale/business use	18
2455101149	Merchant wholesaler	Independently owned businesses that take title to goods, assume ownership risks, and buy and resell products	19
2455101150	Limited line wholesaler	Few products lines but extensive assortment (ex: groceries)	20
2455101151	Speciality line wholesaler	Either a single product line or only a few products within the line. (Ex: fruit)	21
2455101152	Drop shipper	Accepts orders from customers and forwards them to producers, which ship directly to the customers who place the orders. Takes title but no possession of goods (ex: lumber)	22
2455101153	Agent	Sell part or all of a MFG product line in a given territory, not employees, little or no control over prices or terms, carry several non-competing lines from different MFG, never carry 2 of the same product	23
2455101154	Brokers	Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods (ex: eBay)	24
2455101155	Commission merchants	Receives goods on consignment from local sellers and negotiates sales in large, central markets ( ex: age products)	25
2455101156	Physical distribution functions	An integrated set of activities that deal with managing the movement of product 1. Order Processing 2. Inventory Management 3. Materials Handling 4. Warehousing 5. Transportation	26
2455101157	Stock-out costs	The costs that result when a company runs out of a particular item for which there is demand and the company must act quickly to meet the demand or suffer the costs of not meeting it	27
2455101158	Reorder points	Minimum and maximum stock levels which determine when a reorder is placed and for how much	28
2455101159	Containerization	Simplifies trans-shipment from mode of transport to another. It has revolutionized business transportation by significantly lowering costs of shipping goods over long distance.	29
2455101160	Freight forwarder	Business that handles overseas shipments	30
2455101161	Modes of transportation	Rail, trucks, air, pipeline, and water	31
2455101162	Rail	Advantage: full capability, low cost, extensive routes Disadvantages: poor reliability/ damage	32
2455101163	Truck	Advantage: complete pick ups/ delivery, extensive routes, fairly fast Disadvantage: size/weight restrictions, higher cost, more weather sensitive	33
2461640127	Air	Advantage: fast, low damage, frequent departures Disadvantage: high cost, limited capabilities	34
2461682318	Pipeline	Advantage: low cost, very reliable Disadvantage: limited capabilities/routes, slow	35
2461698113	Water	Advantage: low cost, huge capacities Disadvantage: limited routes/schedules, slowest, more weather sensitive	36
2461736733	What is retailing?	Set of business activities that add value to products sold to consumers Almost everything you spend money on goes to retailing. End of supply chain; marketing meets the consumer	37
2461907074	Types of stores	Department stores: Sears, jcpenney Discount stores: Walmart, target Supermarket: Kroger Warehouse: Costco, SAMs club Convenience store: 7-11 Outlet store: Nordstrom rack, tj maxx Category kill: toys r us, bass pro shops Speciality store: jewelry store, shoe store	38
2461923849	Franchising	An arrangement by which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner. Licensing that provides a complete package of materials and services	39
2461931674	Types of shopping centers	Neighborhood shopping centers, community shopping centers, non-traditional shopping center, lifestyle shopping center	40
2461938189	Neighborhood shopping center	Several small convenience and speciality stores, serves those within 10 min. of the location, 2-3 mile target market, little coordination of selling effort	41
2461961559	Community shopping centers	One primary store and often 20-40 smaller outlets; serve a population of consumers who are within a 10-20 mile drive	42
2461981662	Non-traditional shopping centers	Factory outlet malls, mini warehouse malls,money anchor department stores	43
2461984594	Lifestyle shopping center	Mini cities, Branson landing, stores, restaurants, entertainment	44
2461993860	Scrambled merchandising	Offering several unrelated product lines in a single store. (Ex: you can buy food, clothing, electronics at Walmart)	45
2462002981	Wheel of retailing	A concept that describes how new forms of retail outlets enter the market. (Enter as low status, low margin stores. Move to higher status/prices. Higher status and prices stay the same. New form of outlet enters retailing environment)	46
2462042190	Manufacturer Agent	Work for several producers and carry non-competitive, complementary merchandise in an exclusive territory	47
2462048714	Selling agents	Do not take title too good, take the place of the market department, have authority over price/promotion/distribution	48
2462049461	Category killers	A specialist that offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing	49
2462063548	Types of non-store retailing	Catalog, direct selling, TV home shopping, vending machines	50
2462081869	Pool car	Groups of shippers pool their shipments	51
2462083964	Mixed car	Mixed cargo, packed in bags, boxes, drums, tanks, cylinders, rail car	52