{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 11-14 FInal Exam Study Guide

Designed to achieve channel economies and maximum

Info iconThis preview shows pages 5–8. Sign up to view the full content.

View Full Document Right Arrow Icon
designed to achieve channel economies and maximum marketing impact Corporate systems : combo of successive stages under single ownership o Forward integration: producer owns intermediary at next level down; POLO o Backward integration: retailer may own manufacturing operation; Kroger Contractual Systems: independent production and distribution firms integrate efforts to obtain greater impact than they would alone *most popular o Wholesaler-sponsored voluntary chains : wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate; craft stores
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
o Retailer-sponsored cooperatives exist when small, independent retailers form an organization that operates a wholesale facility cooperatively; Ace Hardware and Associated Grocers o Franchising is a contractual arrangement between a parent company (a franchisor) and an individual or firm (a franchisee) that allows the franchisee to operate a certain type of business under an established name and according to specific rules; Wendy’s Administered vertical marketing systems achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership TWO CONCEPTS OF LOGISITCS MANAGEMENT IN A SUPPLY CHAIN Minimize total logistics costs while delivering the appropriate level of customer service Total logistics includes expenses associated with transportation, materials handling and warehousing, inventory, stock-outs (being out of inventory), order processing, and return products handling. Interrelated and all effect each other Customer service is the ability of logistics management to satisfy users in terms of Time: time between ordering, order received, and ready for sale Dependability: consistency of replenishment- consistent lead time, safe delivery, complete delivery Communication: 2 way link between buyer and seller Convenience: minimum effort on part of buyer in doing business with seller CHAPTER 14 THE VALUE OF RETAILING: Retailing's economic value is represented by the people employed in retailing as well as by the total amount of money exchanged in retail sales. “Consumer Utilities Offered by Retailing” Some supermarkets, for example, offer convenient locations (place utility); are open 24 hours a day (time utility); customize purchases in the bakery, deli, and florist (form utility); and allow several payment and credit options (possession utility). CLASSIFYING RETAIL OUTLETS
Background image of page 6
“Form of Ownership” Independent Retailer : small businesses Corporate Chain: multiple outlets under common ownership (department stores) Contractual systems: independently owned stores that band together to act like a chain Retailer-sponsored cooperatives, wholesaler-sponsored voluntary chains, and franchises The franchisee usually pays a one-time franchise fee and an annual royalty.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page5 / 9

designed to achieve channel economies and maximum marketing...

This preview shows document pages 5 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online