Chapter 15 Vocab Marketing

marketing channel management
also called supply chain management, refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers
supply chain management
refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize systemwide costs while satisfying the serve levels their customers require
wholesalers
those firms engaged in buying, taking title to, often storing, and physically handling goods in large quantities then reselling the goods (usually in smaller quantities) to retailers or industrial or business uses
distribution center
a facility for the receipt, storage, and redistribution goods to company stores or customers; may be operated by retailers, manufacturers, or distribution specialist
direct marketing channel
the manufacturer sells directly to the buyer
indirect marketing channels
when one or more intermediaries work with manufacturers to provide goods and services to customers
vertical channel conflict
a type of channel conflict in which members of the same marketing channel, for example, manufacturers, wholesalers, and retailers, and in disagreement or discord
horizontal channel conflict
a type of channel conflict in which members at the same level of a marketing channel, for example, two competing retailers or two competing manufacturers, are in disagreement or discord, such as when they are in a price war
independent (conventional) marketing channel
a marketing channel in which several independent members – a manufacturer, a wholesaler, and a retailer – each attempts to satisfy its own objectives and maximize its profits, often at the expense of the other members
vertical marketing system
a supply chain in which the members act as a unified system; there are three types:administrated, contractual, and corporate
electronic data interchange (EDI)
the computer-to-computer exchange of business documents from a retailer to a vendor and back
vendor-managed inventory (VMI)
an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores
push marketing strategy
designed to increase demand by motivating sellers- wholesaler, distributors or salespeople – to highlight the product, rather than the products of competitors, and thereby push the product onto consumers
pull marketing strategy
designed to get consumers to pull the product into the supply chain by demanding it
receiving
the process of recording the receipt of merchandise as it arrives at a distribution center or store
radio frequency identification (RFID) tags
tiny computer chips that automatically transmit to a special scanner all the information about a container’s contents or individual products
ticketing and marking
creating price and identification labels and placing them on the merchandise
pick ticket
a document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas
just-in-time (JIT) inventory systems
inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise “just in time” for it to be used in the manufacture of another product, in the case of parts or components, for sale when the customer wants it, in the case of consumer goods
quick response
an inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it