Bmgt350 Ch15 Vocab

Front 1

marketing channel

Back 1

indiviudals and firms involved in the process of making a product or service available for use/consumption by consumers or industrial users; make possible the flow of goods from a producer, through intermediaries, to a buyer

Front 2

3 basic functions of intermediaries

Back 2

transactional function - buying, selling, and risk taking b/c they stock merchandise in anticipation of sales
logistical function - gathering, storing, and dispersing of products
facilitating functions - assist producers in making g/s more attractive to buyers

Front 3

direct channel

Back 3

producer and ultimate consumers deal directly w/each other

Front 4

indirect channels

Back 4

intermediaries are inserted btwn the producer and consumers and perform numerous channel functions

Front 5

electronic marketing channels

Back 5

use internet to make g/s available for consumption or use by consumers/business buyers; combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers

Front 6

direct marketing channels

Back 6

allow consumers to buy products by interacting w/various ad media w/o a face-to-face meeting with a salesperson

Front 7

dual distribution

Back 7

2 or more diff channels for the same basic product
-multiple brands w/multibrand strategy

Front 8

strategic channel alliances

Back 8

one firm's marketing channel is used to sell another firm's products

Front 9

merchant wholesalers

Back 9

independently owned firms taht take title to the merchandise they handle

Front 10

general merchandise/full line wholesalers

Back 10

broad assortment of merchandise and perform all channel functions

Front 11

specialty merchandise/limited line wholesalers

Back 11

rel. narrow range of products, but extensive assortment within the product line carried

Front 12

rack jobbers

Back 12

furnish the racks/shelves that display merchandise in retail stores, perform all channel functions, sell on consignment to retailers (retain title to the products displayed and bill retailers only for merchandise sole)

Front 13

cash and carry wholesalers

Back 13

take title to merchandise but sell only to buyers who call on them, pay cash, and furnish transportation

Front 14

drop shippers/desk jobbers

Back 14

wholesalers that own the merchandise they sell but don't handle, stock, or deliver it

Front 15

truck jobbers

Back 15

small wholesalers that have a small wharehouse from which they stock their trucks for distribution to retailers

Front 16

manufacturer's agents/represatives

Back 16

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory

Front 17

selling agents

Back 17

represent a single producer; responsible for the entire marketing function of that producer

Front 18

brokers

Back 18

indep firms/indiv whose principal function is to bring buyers and sellers together to make sales

Front 19

manufacturer's branch office

Back 19

carries a producer's inventory and performs the functions of a full-service wholesaler

Front 20

manufacturer's sales office

Back 20

doesn't carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers

Front 21

vertical marketing systems

Back 21

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and max marketing impact

Front 22

corporate vertical marketing system

Back 22

combo of successive stages of production and distribution under a single ownership

Front 23

forward integration

Back 23

producer owns intermediary at the next level down in the channel

Front 24

backward integration

Back 24

retailer owns a manufacturing operation

Front 25

contractual vertical marketing system

Back 25

independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could acheive alone

Front 26

wholesaler-sponsored voluntary chains

Back 26

involve a wholesaler that develops a contractual relationship w/small indep retailers to standardize and coordinate buying practices, merchandising programs, and inventory mgmt efforts

Front 27

retailer-sponsored cooperatives

Back 27

small, indep retailers form an org that operates a wholesale facility cooperatively

Front 28

franchising

Back 28

contractual arrangement btwn a parent company and an indiv/firm that allows the franchisee to operate a certain type of business under an established name and according to specific rules
-manufacturer-sponsored wholesale systems (soft-drink)
-manufacturer-sponsored retail franchise systems (auto)

Front 29

-service sponsored retail franchise systems

Back 29

provided by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others

Front 30

-service sponsored franchise systems

Back 30

exist when franchisors license indiv/firms to dispense a service under a trade name and specific guidelines

Front 31

manufacturer's agents/represatives

Back 31

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory

Front 32

selling agents

Back 32

represent a single producer; responsible for the entire marketing function of that producer

Front 33

brokers

Back 33

indep firms/indiv whose principal function is to bring buyers and sellers together to make sales

Front 34

manufacturer's branch office

Back 34

carries a producer's inventory and performs the functions of a full-service wholesaler

Front 35

manufacturer's sales office

Back 35

doesn't carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers

Front 36

vertical marketing systems

Back 36

professionally managed and centrally coordinated marketing channels designed to achieve channel economies and max marketing impact

Front 37

corporate vertical marketing system

Back 37

combo of successive stages of production and distribution under a single ownership

Front 38

forward integration

Back 38

producer owns intermediary at the next level down in the channel

Front 39

backward integration

Back 39

retailer owns a manufacturing operation

Front 40

contractual vertical marketing system

Back 40

independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could acheive alone

Front 41

wholesaler-sponsored voluntary chains

Back 41

involve a wholesaler that develops a contractual relationship w/small indep retailers to standardize and coordinate buying practices, merchandising programs, and inventory mgmt efforts

Front 42

retailer-sponsored cooperatives

Back 42

small, indep retailers form an org that operates a wholesale facility cooperatively

Front 43

franchising

Back 43

contractual arrangement btwn a parent company and an indiv/firm that allows the franchisee to operate a certain type of business under an established name and according to specific rules
-manufacturer-sponsored wholesale systems (soft-drink)
-manufacturer-sponsored retail franchise systems (auto)

Front 44

-service sponsored retail franchise systems

Back 44

provided by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others

Front 45

-service sponsored franchise systems

Back 45

exist when franchisors license indiv/firms to dispense a service under a trade name and specific guidelines

Front 46

administered vertical marketing systems

Back 46

achieve coordination at succesive stages of production and dist by the size and influence of one channel member rather than through ownership

Front 47

channel partnership

Back 47

consists of agreements and procedures among channel members for ordering and physically distributing a producer's products through the channel to the ultimate consumers

Front 48

factors affecting channel choice and mgmt

Back 48

environmental
consumer
product
company

Front 49

3 ?s when considering a marketing channel and intermediaries:

Back 49

1. Which will provide the best coverage of the target market?
2. Best satisfy the buying requirements?
3. Be the most profitable?

Front 50

Intensive distribution

Back 50

firm tries to place its products and services in as many outlets as poss

Front 51

Exclusive distribution

Back 51

only one retail outlet in a specified geographic area carries the firm's products

Front 52

Selective distribution

Back 52

selects a few retail outlets in a specific geographic area to carry its products; most common form

Front 53

Buyer's requirments:

Back 53

info
convenience
variety
attendant services (installation, credit)

Front 54

profitability

Back 54

det by margins earned
-costs include distribution, ad, and selling expenses

Front 55

channel conflict

Back 55

one channel member believes another is engaged in behavior that prevents it from acheiving its goals

Front 56

vertical conflict

Back 56

occurs btwn diff lvls in a channel
1. disintermediation
2. disagreements over dist of PM

Front 57

disintermediation

Back 57

conflict arises when a channel member bypasses another and sells/buys products direct

Front 58

horizontal conflict

Back 58

occurs btwn intermed at the same lvl in a channel (2>retailers, 2>wholesalers that handle the same brand)

Front 59

channel captain

Back 59

coordinates, directs, and supports other channel members; can be producers, wholesalers, or retailers

Front 60

dual distribution

Back 60

anticompetitive in some situations

Front 61

Clayton Act

Back 61

prohibits exclusive dealing and tying arrangements when they lessen competition/create monopolies