Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Distribution Systems
CLEP PRINCIPLES OF MARKETING CH 5
| Question | Answer |
|---|---|
| primary channel function | the physical distribution of products |
| distribution modes | *transportation *inventory mgmt *cs functions |
| sorting process | *accumulation *sorting *assorting |
| accumulation | process of assembling & pooling relatively small shipments to be transported for less |
| sorting | process of separating goods by quality, color, or size |
| assorting | a wide variety of merchandise acquired to meet diverse consumer wants *at retail level |
| direct channels | moving goods from the producer to the final consumer without using "middlemen" |
| indirect channels | moving goods with the cooperation and assistance of middlemen |
| channel width | the number of independent members at one level of the distribution channel |
| channel length | the number of levels used to create a distribution channel |
| intensive dist' strategy | selling through every potential outlet that will reach target mkt |
| selective dist' strategy | selling through many but not all potential wholesalers & retailers |
| exclusive dist' strategy | limits the number of outlets employed in one or two intermediaries within each mkt |
| types of distribution coordination systems | *corporate *contractual *administered |
| corporate dist channel | owning all channel members or the firms at the next level in the channel |
| contractual | arrangements specify performance terms for each independent channel member |
| administered | channel operations coordinated thru a dominant channel member |
| vertical integration | acquiring firms that operate at different channel levels* may up ops control |
| horizontal integration | acquiring firms that operate at the same channel level* up mkt share, competitive strength |
| multiple channels | separate dist' channels to reach new mkts, up mkt coverage, or distribute new products |
| channel control | ability to influence the actions of other channel members |
| channel conflict | disagreements between members over practices & policies |
| horizontal conflicts | channel conflicts between firms at the same channel level |
| vertical conflicts | channel conflicts between firms at different channel levels |
| pushing | offering middlemen promos in return for their cooperation IE sales promos, personal selling, and ads |
| pulling | generates consumer demand for the product as a means of securing support w/in the channel. appro for new products |
| goals of physical distribution | cost control& customer service |
| total cost concept | idea that low costs and satisfied customers are conflicting goals |
| total cost concept goal | provide a level of cs at the lowest total costs |
| distribution center concept | cross between one central inventory site (high transport costs) and multi sites (less inventory control) |
| distribution centers | a type of warehouse planned in relation to specific markets |
| sub-optimization | cost reducing actions in one distribution function that increases the overall cost of others |
| cs standard | different buyers need different service levels |
| order processing | the receipt and transmission of sales order information: entry handling delivery |
| electronic data interchange (edi) | a single system of order processing, production, inventory planning and transport |
| materials handling | the physical handling of goods in both the warehouse & transport functions |
| unit loading | refers to the grouping of boxes on a pallet or skid |
| containerization | the process of consolidating many items into one container |
| warehousing | designing and operating facilities for receiving sorting storing moving goods |
| types of warehouses | *private & public *distribution cntrs *bonded storage |
| order leadtime | the average length of time between the customer plaing order and receiving it |
| reorder point | the inventory level at which new orders need to be rplaced to avoid a stockout |
| stockout | a shortage of product resultignfrom carrying too few in inventory |
| usage rate | the rate at which inventory is osd per time poeriod |
| safety stock | the amount of extra inventory kept on hand to avoid stockouts |
| economic order quantity (eoq) | the order size that minmizes the total cost of ordering and carrying inventory |
| just-in-time (jit) | making products an materials available just as needed for porduction or resale |
| transportation modes | the means of moving goods from one location to another |
| modes of transport | railroads trucks waterways airways pipelines |
| megacarriers | freight transport companies that provide several shipment modes |
| inter-modal transportation | two or more transport modes used in combination |
| freight forwarders | specialized agencies providing alternate forms of transport coordination |
Created by:
forrestree71
Popular Standardized Tests sets