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Chapter 13
Marketing Channels and Supply Chain Management
Term | Definition |
---|---|
distribution | the decisions and activities that make products available to customers when are where they want to purchase them |
supply chain | all the organizations and activities involved with the flow and transformation of products from raw materials through to the end customer |
procurement | processes to obtain resources to create value through sourcing, purchasing, and recycling inclinding materials and information |
logistics management | planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption in order to meet customers' needs and wants |
operations management | the total set of managerial activities used by an organization to transform resource inputs into goods, services, or both |
supply chain management (SCM) | the coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer |
blockchain | an incorruptible digital recordkeeping system |
marketing channel | a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain |
marketing intermediaries | middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products |
industrial distributor | an independent business organization that takes title to industrial products and carries inventories |
strategic channel alliance | an agreement whereby the products of one organization are distributed through the marketing channels of another |
multichannel distribution | the use of a variety of marketing channels to ensure maximum distribution |
digital distribution | delivering content through the internet to a computer or other device |
intensive distribution | using all available outlets to distribute a product |
selective distribution | using only some available outlets in an area to distribute a product |
exclusive distribution | using a single outlet in a fairly large geographic area to distribute a product |
channel captain | the dominant leader of a marketing channel or a supply channel |
channel power | the ability of one channel member to influence another member's goal achievement |
vertical channel integration | combining two or more stages of the marketing channel under one management |
vertical marketing system (VMS) | a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers |
horizontal channel integration | combining organizations at the same level of operation under one management |
third-party logistics (3PL) firms | firms that have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently |
cycle time | the time needed to complete a process |
order processing | the receipt and transmission of sales order information |
electronic data interchange (EDI) | a computerized means of integrating order processing with production, inventory, accounting, and transportation |
inventory management | developing and maintaining adequate assortments of products to meet customers' needs |
just-in-time (JIT) | an inventory management approach in which supplies arrive just when needed for production or resale |
materials handling | physical handling of tangible goods, supplies, and resources |
radio frequency identification (RFID) | a system of tags and readers that use radio waves to identify and track materials tagged with special microchips |
warehousing | the design and operation of facilities for storing and moving goods |
private warehouses | company-operated facilities for storing and shipping their own products |
public warehouses | storage space and related logistics facilities that can be leased by companies |
distribution centers | large, centralized warehouses that focus on moving, rather than storing, goods |
transportation | the movement of products from where they are made to intermediaries and end users |
intermodal transportation | two or more transportation modes used in combination |
freight forwarders | organizations that consolidate shipments from several firms into efficient lot sizes |
megacarriers | freight transportation firms that provide several modes of shipment |
tying agreement | an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well |
exclusive dealing | a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers |