| What is the Value Delivery Network? | A network composed of the company, suppliers, distributors and customers who partner with each other to improve the performance of the entire system in delivering customer value. |
| Members of the marketing channel perform many key functions. Some help to COMPLETE transactions. Mention 5 key functions. | Information, promotion, contact, matching, and negotiation. |
| What is Corporate VMS? | A vertical marketing system that combines successive stages of production and distribution under single ownership. |
| What is Contractual VMS? | A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts. |
| What is Administered VMS? | A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. |
| What is Disintermediation? | The cutting out of market channel intermediaries. |
| What is Suply Chain Management? | Managing upstream and downstream value-added flows of materials, final goods, and related information. |
| What are Upstream Partners? | The set of firms that supply the raw materials, components, parts, information, finances and expertise needed to create a product or service. |
| What are Downstream Partners? | The marketing channels that look towards the customer such as wholesalers and retailers. |
| What are Marketing Channel (Distribution channel)? | A set of interdependent organizations that help make a product or service available for consumption. |
| Why do Producers give some of the selling job to chanel partners? | Producers use intermediaries because they create greater efficiency in making goods available to target markets. |
| A company's channel decisions can have 3 affects. What are these? | 1. Affect every other marketing decision.
2. Can lead to competitive advantage.
3. May involve long-term commitments to other firms. |
| Members of the marketing channel perform many key functions. What are the 3 key functions which help to FULFILL the completed transactions? | Physical distribution, financing, and risk taking. |
| What is the Channel Level? | A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. |
| What is the Conventional Marketing Channel? | A channel consisting of one or more independent businesses that seeking to maximize its own profits at the expenses of the whole system. |
| What is the Vertical Marketing System(VMS)? | A channel structure in which businesses act as a unified system. One member takes the leadership. |
| What are the 3 Types of VMS? | Corporate, contractual, and administered. |
| What is Horizontal Marketing System? | A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. |
| What is the Multichannel Distribution System? | A distribution system in which a single firm set up two or more marketing channels to reach customer segments. |
| What is Marketign Channel Design? | Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives. |
| What are the 3 Strategies to determine the number of channel members? | Intensive, exclusive, and selecctive distribution. |
| What is Intensive Distribution? | Stocking the product in as many outlets as possible. |
| What is Exclusive Distribution? | Giving a limited number of dealers the exclusive right to distribute the product. |
| What is Selective Distribution? | The use of selecting intermediaries that sell the company's product. |
| When Designing International Distribution Channels one must look at 3 aspects. What are the 3 aspects? | 1. Existing structures within each country.
2. Distribution systems which can have many layers and large number of intermediaries.
3. Customs and government regulations. |
| What is the Goal of Marketing Logistics? | To provide the target level of customer service at the least cost. |
| What are the Major Logistic function? Mention 4 | Warehousing, inventory management, transportation, and logistic information management. |
| What is Integrated Logistics Management? | The logistic concept that emphasizes teamwork. Both inside the company and among all the marketing channel organizations. |
