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Windle Test 5
Question | Answer |
---|---|
Channel of distribution | any sequence of entities that assists in the transfer of products from production to actual consumption |
Middlemen | retailers or wholesalers. Exist b/t producers and consumers |
Two questions: | 1. What needs to be done until the product gets into the hands of the consumer? 2. Am I willing and/or do I have the financial resources to do these things? No? Employ middlemen. |
Retailer | majority of all sales are to END USERS or consumers. Over 50% of sales. Ex: Weis, Macy's (24-26% of the end price) |
Wholesaler | bulk of sales are industrial. Sell to resalers. Most of the sales to retailers. Cost about 11 cents out of every dollar you spend. 11% of the end price |
Discrepancies of quantity | start out wanting one million in quantity and customer only wants one |
Bulk-breaking | taking that one million and spreading out the bulk |
Discrepancies of assortment | variety of assortment. that is what consumers what. Creates variety from different manufacturers ex: clothes that have diff. brands at PacSun |
Traditional | nobody is running or controlling the show. All stages are standard |
Vertical marketing system | three types |
Corporate | ownership. Control entire channel of distribution. Not let anyone interfere ex: sherman williams, have their own paint business |
Contractual | same thing as franchise. Not as expensive as corporate, but you can still exercise control Ex: Mcdonalds is franchised |
Administered | no contract or ownership. One person is "more powerful". Everyone looks to the Channel captain for advice |
Channel captain | pretty much whoever wears the pants in the manufacturing assortment. Tell people what to do Ex: WalMart, Tide, etc. and they use blackmail to say that they get the spot on the shelf before anyone else |
"Multiple channels" | dual channels. Ex: Singapore airlines product is service so you buy a ticket online. Direct channel to get the product. All the different ways to obtain a given product. Different channels |
Bucket shop | buy (20) seats and then sell them and try to make money. The airline is fine because they sold all their tickets |
Reverse channels | how to get the product back all the way or part of the way - product recall. Sometimes may go all the way back to the manufacturer. Get it all back to ONE place |
Intensive distribution | has to be EVERYWHERE - in as many places as the stores can carry ex: Cheerios, candy, etc. |
Selective distribution | just a few places. Not every place. Just the stores that can hold it and take care of your product. The ones that you choose to hold your product |
Logistics | everything AFTER channel of distribution was set up |
Transportation | responsibility of the marketers many modes of transportation Ex: air, highway, etc. |
Physical distribution | how to transport your product |
Materials handling | how you handle products from production to consumption. Reduce damage to the product. Packaging |
Storage and warehousing | whole field in itself. Filling geographical areas |
Inventory control | ex: bar codes (oldest example) Every time the order went through the inventory reduced by one |
Paperwork | administrative part of everything. Try to consolidate everything. Not duplicating efforts. |
Point of promotion | is to make a profitable sale |