Bus 464 - Final


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Side ASide B
an organized network of agencies and institutions, which in combination, perform all the activities...
channel of distribution
movement of goods through channels
physical distribution
the management of distribution
provides the means to achieve distribution - made up of a coordinated group of individuals...
Channel objectives - name 4 utilities
time, place, information, form
availability of a product or service in a location that is convenient to a potential customer
place utility
availability of a product or service when desired by a customer
time utility 
availability of the product processed, prepared, in proper condition, and /or ready to use
form utility
availability of answers to questions and general communication about useful product features...
information utility
wholesale intermediary that typically carries product lines or  brands on a selective...
an intermediary who negotiates transactions b/t two or more parties but does not take title...
channels tend to be ________ as the number of customers served _________ and price per unit...
longer / increased / decreases
individual customers market products to other individuals
peer - to - peer - Ebay helped Disney and IBM
usually low cost, mass market nondurable products / services - mature form in the US - popular...
door to door selling1/2 Japan's cars sold via door to door 
what is the consumer version of the keiretsu system?
door to door selling
3 types of consumer channels
manufacturer owned stores; franchises; independent retailers
Disney planned to spend _______ million to open up _______ stores - what type of consumer channel...
300 / 600 - manufacturer owned other examples: apple, Levi Strauss, Nike
establishes flagship retail stores as product showcases or means of obtaining marketing intelligence
manufacturer-owned consumer channel
Manufacturer-owned stores supplement, rather than replace, _______ through independent retail...
For mass-market consumer products (ice cream, cigs, etc), what is required to achieve market...
cannel linking manufacturer to distributor to retailer
Channel structure that has more intermediaries that seem necessary? irrational or rational?
rational - presents opportunity to gain competitive advantage through more effective channel...
channel innovation that has grown in popularity - one manufacturer distributes product by utilizing...
piggyback marketing
for piggyback marketing to work, the products must be....?
complementary / non-competitive / appeal to same customer
example of piggyback marketing
avon & mattel
for more expensive, complicated products that require explanation and applications, a company...
the _________ the market, the more feasible for manufacturer to use OWN sales force
the company establishes its own sales force or operates in own retail storesexample?
direct involvement Kodak
the company utilizes independent agents, distributors, and /or wholesalers
indirect involvement
true/false: companies entering market for first time (usually foreign) should use local distributors
Working with Channel Intermediaries - 7 guidelines
1. select distributors - dont let them select you2. look for distributors willing and able...
practice of accepting orders only from manufacturers with established demand for products/brands...
cherry picking
global retailingseveral departments, each representing distinct merchandise line with limited...
department store
less variety that dept stores - narrower merchandise mix aimed at specialty target market -...
specialty stores
departmentalized, single-story retail establishments that offer variety of food and non-food...
same products as supermarkets - merchandise mix limited to high turnover and impulse purchases15-20%...
convenience stores
all emphasize lower prices - "full line discounter": wide range of merchandise - limited service...
discount stores - WALMART IS KING
customers "join" the club to take advantage of low prices on products displayed in shipping...
warehouse club
hybrid retailing format combining the discounter, supermarket, and warehouse club togetherbiggest...
offer wide variety of aggressively priced grocery items plus general merchandise in space thats...
specialize in particular product category - offers vast selection at low prices"900 pound gorillas"
category killers - IKEA home depot
retail operations that let name brands dispose of excess inventory, out of date merchandise,...
outlet stores 
environmental factors in global retailing - why do it?
home country saturation, recession, strict regulations, high operating costs
classifying global retailers this quadrant is a global retailer with niche focus - use...
quadrant A - GAP, IKEA
this quadrant has private labels - must attract customers to both store and branded merchandise 
Quadrant B - Marks & Spenser
this quadrant has many well known brands in a tightly defined merchandise range - includes...
Quadrant C - Toys R Us, Virgin Mobile
this quadrant offers same type of merchandise than other retail stores - competence is in distribution...
WALMART - quadrant D
Name the 4 global retailing strategies
organic, franchise, chain acquisition, joint venture
type of global retailing strategy - internal growth - uses own resources to open a store on...
type of global retailing strategyappropriate when  barriers to entry are low but market...
type of global retailing strategy a market entry strategy that entails purchasing a company...
chain acquisition
type of global retailing strategyadvisable when culturally distance, difficult-to-enter markets...
joint venture 
Where does innovation take place in global retailing?
most highly developed systems
ability of a system to successfully adapt innovations is directly related to its level of ________...
economic development
The process of adaption can be greatly accelerated by the actions of _________ __________ ______.
aggressive individual firms
useful tool for accessing competence within a broader supply chain AND characterizes specified...
value chain
includes ALL the firms that perform support activities by generating raw materials, converting...
supply chain
the management process that integrates the activities of all companies to ensure an efficient...
a firm that is removed from customer is _________ in value chain
a company that is relatively closer to customer is considered ________ in the value chain
shipping from manufacturers directly out to stores
drop ship
includes order entry, in which the order is actually entered into a company's information...
order processing
used to either store goods or as distribution centers
designed to efficiently receive goods from suppliers, then fill orders for individual stores...
distribution centers
ensures that a company neither runs out of manufacturing components or finished goods nor incurs...
inventory management - expensive!
the method or mode a company should utilize when moving products through domestic and global...
easiest, most effective, reliable, most accessible
cost effective for moving large quantities long distances, less reliable than trucks, poor...
2 types of water transport
inland: low cost / bulk shipping / slowocean: any product can be shipped - more cost effective...
combo of land and water shipping form producer to consumer
intermodal transportation
"achilles heel of global distributon"
shitty railway system in US
loading ocean-going freight into steel boxes

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