MKT 3050 Test 4 Vocab

Value Chain

A series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys

Supply chain

All the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer

Supply Chain Management

The management of flows among firms in the supply chain to maximize total profitability

Merchant Wholesalers

Intermediaries that buy goods from manufacturers (take title to them) and sell to retailers and other B2B customers

Merchandise Agents or Brokers

Channel intermediaries that provide services in exchange for commissions but never take title to the product

Channel Levels

The number of distinct categories of intermediaries that make up a channel of distribution

Duel Distribution

a marketing strategy where a manufacturer or supplier sells its products through direct channels (such as company-owned stores or its own website) while simultaneously selling those same products through independent intermediaries (such as external retailers, wholesalers, or third-party dealers)

Conventional Marketing System

A multiple-level distribution channel in which channel members work independently of one another

Vertical Marketing System (VMS)

A channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels

Horizontal Marketing System

An arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose

Channel Leader (or channel captain)

The dominant firm that controls the channel

Logistics

The process of designing, managing, and improving the movement of products through the supply chain. Includes purchasing, manufacturing, storage, and transport

Physical Distribution

The activities that move finished goods from manufacturers to final customers, including order processing, warehousing, materials handling, transportation, and inventory control

Just-In-Time (JIT)

Inventory management and purchasing processes that manufacturers and resellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed

Business-To-Business Markets (B2B markets)/Organizational Markets

The group of customers that includes manufacturers, wholesalers, retailers, and other organizations

Derived Demand

Demand for business or organizational products caused by demand for consumer goods or services

Inelastic Demand

Demand in which changes in price have little or no effect on the amount demanded

Joint Demand

Demand for two or more goods that are used together to create a product

Producers

The individuals or organizations that purchase products for use in the production of other goods and services

Resellers

The individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations

North American Industry Classification System (NAICS)

The numerical coding system that the United States, Canada, and Mexico use to classify firms into detailed categories according to their business activities

Buy Class

a classification system used in Business-to-Business (B2B) marketing and organizational purchasing to categorize buying situations based on how familiar the buyer is with the product, how much risk or uncertainty is involved, and how much information is needed

Buying Center

The group of people in an organization who participate in a purchasing decision

Reciprocity

A trading partnership in which two firms agree to buy from one another

Outsourcing

The business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in house

Reverse Marketing

A business practice in which a buyer firm attempts to identify suppliers who will produce products according to the buyer firm’s specifications

Single and Multiple Sourcing

The business practice of buying a particular product from only one supplier. The business practice of buying a particular product from several different suppliers

Crowdsourcing

A practice where firms outsource marketing activities (such as selecting an ad) to a community of users

Offshoring

A process by which U.S. companies contract with companies or individuals in remote places like China or India to perform work they used to do at home

Intranet

An internal corporate communication network that uses Internet technology to link company departments, employees, and databases

Extranet

A private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization