Purdue MGMT 323 Exam 3 Ch. 15-18 100% Pass

Purdue MGMT 323 Exam 3 Ch. 15-18 100% Pass Marketing Channel Management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers Supply Chain Management Another term for Marketing Channel Management Wholesalers firms that buy products from manufacturers and resell them to retailers; retailers sell products directly to consumers Virtual Marketing Program promotional strategy that encourages people to pass along a marketing message to other potential consumers How does Marketing Channels add value? Each of the participants to a channel of a product adds value in some form Distribution center facility for the receipt, storage, and redistribution of goods to company stores, may be operated by retailers, manufacturers, or distribution specialists Fulfillment Center Warehouse facilities used to ship merchandise directly to customers direct marketing channel Manufacturer sells directly to buyer Indirect Marketing Channel one or more intermediaries work with manufacturers to provide goods and services to customers What types of channel conflict are there? Horizontal channel conflict and Vertical channel conflict Vertical Channel Conflict type of channel conflict in which members of the same marketing channel are in disagreement or discord who can be in vertical channel conflict Manufacturers, wholesalers, and retailers Horizontal Channel Conflict type of channel conflict in which members at the same level of a marketing channel are in disagreement or discord, such as when they are in a price war who can be in horizontal channel conflict two competing retailers or two competing manufacturers Independent/conventional marketing channel marketing channel in which several independent members each attempt to satisfy its own objectives and maximize its profits, often at the expense of other members Who are involved with Independent marketing channels manufacturer, wholesalers, and a retailer Vertical Marketing System supply chain in which the members act as a unified system What types of vertical marketing systems exist? administered, contractual, corporate Administered Vertical Marketing System supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship Power Situation that occurs in a marketing channel in which one member has the means/ability to have control over the actions of another member in a channel at a different level of distribution Reward Power type of marketing channel power that occurs when the channel member exerting the power offers rewards to gain power for getting another channel member to do what it wants it to do Coercive Power Threatening or punishing the other channel member for not undertaking certain tasks Referent Power type of marketing channel power that occurs if one channel member wants to be associated with another channel member. The channel member with whom the others wish to be associated has the power and can get them to do what they want. Expertise Power when a channel member uses its expertise as leverage to influence the actions of another channel member Information Power type of marketing channel power within an administered vertical marketing system in which one party provides or withholds important information to influence the actions of another party Legitimate power Type of marketing channel power that occurs if the channel member exerting the power has a contractual agreement with the other channel member that requires the other channel member to behave in a certain way. Occurs in an administered vertical marketing system Contractual Vertical Marketing System System in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination to reduce conflict Ffranchising contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format development and supported by the franchisor Strategic/Partnering Relationship supply chain relationship that the members are committed to maintaining long term, investing in opportunities that are mutually beneficial: requires mutual trust, open communication, common goals, and credible commitments Flow of information and merchandise in the marketing channel 1) customer to store 2) store to buyer 3) Buyer to Manufacturers 4) Manufacturers to Stores 5) Stores to Distribution Center 6) Distribution Center to Manufacturers/Buyer Universal Product Code (UPC) black-and-white bar code found on most merchandise Advance Shipping Notice electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment Electronic Data Interchange computer-to-computer exchange of business documents from a retailer to a vendor and back Vendor-managed inventory approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer's inventory levels in each of its stores Planner employee who is responsible for the financial planning and analysis of merchandise, and its allocation to stores dispatcher person who coordinates deliveries to distribution centers Receiving process of recording the receipt of merchandise as it arrives at a distribution center or store Checking process of going through the goods upon receipt to ensure they arrived undamaged and that the merchandise ordered was the merchandise received Radio Frequency Identification Tag tiny computer chip that automatically transmits to a special scanner all the information about a containers contents or individual products Cross-docking distribution center distribution center to which vendors ship merchandise prepackaged and ready for sale Floor-ready merchandise merchandise that is ready to be placed on the selling floor immediately Ticketing and marking creating price and identification labels and placing them on merchandise pick ticket document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas Just-in-time inventory systems inventory management system designed to deliver less merchandise on a more frequent basis than traditional systems lead time amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale distribution intensity number of supply chain members to use at each level of the supply chain intensive distribution strategy designed to get products into as many outlets as possible exclusive distribution strategy in which only selected retailers can sell a manufacturer's brand selective distribution Lies between the intensive and exclusive distribution strategies Private-label Brands brands developed and marketed by a retailer and available only from that retailer exclusive brand developed by national brand vendor and retailer and sold only by that retailer share of wallet the percentage of the customer's purchases made from a particular retailer online chats instant messaging or voice conversation with an online sales representative Integrated Marketing Communication represents the promotion dimension of the four Ps: sender firm from which an IMC message originates transmitter agent or intermediary with which the sender works to develop the marketing communications Encoding process of converting the sender's ideas into a message, which could be verbal, visual, or both communication channel medium that carries the message receiver person who reads, hears, or sees the processes the information contained int he message advertisement noise interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium. feedback loop allows the receiver to communication with the sender and thereby informs the sender whether the message was received and decoded properly Brand Awareness measures how many consumers in a market are familiar with the brand and what is stands for Public Relations organizational function that manages the firm's communications to achieve a variety of objectives Personal Selling two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision rule-of-thumb methods budgeting methods that base on the IMC budget on either the firm's share of the martket in relation to competition, a fixed percentage of forcasted sales, or what is left after other operating costs and forecasted sales have been budgeted Advertising paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future advertising plan section of the firm's overall marketing plan that explicitly outlines the objectives of the advertising campaign pull strategy strategy in which the goal is to get consumers to pull the product through the marketing channel by demand push strategy designed to increase demand by motivating sellers to highlight the product, rather than the products of competitors, and thereby push the product onto consumers Informative Advertising communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase Product-Focused advertisements used to inform, persuade, or remind consumers about a specific product or service Institutional Advertisement type of advertisement that informs, persuades, or reminds consumers about issues related to places, politics, or an industry