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61 Cards in this Set

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marketing channel
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
3 basic functions of intermediaries
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
direct channel
producer and ultimate consumers deal directly w/each other
indirect channels
intermediaries are inserted btwn the producer and consumers and perform numerous channel functions
electronic marketing channels
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
direct marketing channels
allow consumers to buy products by interacting w/various ad media w/o a face-to-face meeting with a salesperson
dual distribution
2 or more diff channels for the same basic product
-multiple brands w/multibrand strategy
strategic channel alliances
one firm's marketing channel is used to sell another firm's products
merchant wholesalers
independently owned firms taht take title to the merchandise they handle
general merchandise/full line wholesalers
broad assortment of merchandise and perform all channel functions
specialty merchandise/limited line wholesalers
rel. narrow range of products, but extensive assortment within the product line carried
rack jobbers
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)
cash and carry wholesalers
take title to merchandise but sell only to buyers who call on them, pay cash, and furnish transportation
drop shippers/desk jobbers
wholesalers that own the merchandise they sell but don't handle, stock, or deliver it
truck jobbers
small wholesalers that have a small wharehouse from which they stock their trucks for distribution to retailers
manufacturer's agents/represatives
work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
selling agents
represent a single producer; responsible for the entire marketing function of that producer
brokers
indep firms/indiv whose principal function is to bring buyers and sellers together to make sales
manufacturer's branch office
carries a producer's inventory and performs the functions of a full-service wholesaler
manufacturer's sales office
doesn't carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers
vertical marketing systems
professionally managed and centrally coordinated marketing channels designed to achieve channel economies and max marketing impact
corporate vertical marketing system
combo of successive stages of production and distribution under a single ownership
forward integration
producer owns intermediary at the next level down in the channel
backward integration
retailer owns a manufacturing operation
contractual vertical marketing system
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
wholesaler-sponsored voluntary chains
involve a wholesaler that develops a contractual relationship w/small indep retailers to standardize and coordinate buying practices, merchandising programs, and inventory mgmt efforts
retailer-sponsored cooperatives
small, indep retailers form an org that operates a wholesale facility cooperatively
franchising
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)
-service sponsored retail franchise systems
provided by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others
-service sponsored franchise systems
exist when franchisors license indiv/firms to dispense a service under a trade name and specific guidelines
manufacturer's agents/represatives
work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
selling agents
represent a single producer; responsible for the entire marketing function of that producer
brokers
indep firms/indiv whose principal function is to bring buyers and sellers together to make sales
manufacturer's branch office
carries a producer's inventory and performs the functions of a full-service wholesaler
manufacturer's sales office
doesn't carry inventory, typically performs only a sales function, and serves as an alternative to agents and brokers
vertical marketing systems
professionally managed and centrally coordinated marketing channels designed to achieve channel economies and max marketing impact
corporate vertical marketing system
combo of successive stages of production and distribution under a single ownership
forward integration
producer owns intermediary at the next level down in the channel
backward integration
retailer owns a manufacturing operation
contractual vertical marketing system
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
wholesaler-sponsored voluntary chains
involve a wholesaler that develops a contractual relationship w/small indep retailers to standardize and coordinate buying practices, merchandising programs, and inventory mgmt efforts
retailer-sponsored cooperatives
small, indep retailers form an org that operates a wholesale facility cooperatively
franchising
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)
-service sponsored retail franchise systems
provided by firms that have designed a unique approach for performing a service and wish to profit by selling the franchise to others
-service sponsored franchise systems
exist when franchisors license indiv/firms to dispense a service under a trade name and specific guidelines
administered vertical marketing systems
achieve coordination at succesive stages of production and dist by the size and influence of one channel member rather than through ownership
channel partnership
consists of agreements and procedures among channel members for ordering and physically distributing a producer's products through the channel to the ultimate consumers
factors affecting channel choice and mgmt
environmental
consumer
product
company
3 ?s when considering a marketing channel and intermediaries:
1. Which will provide the best coverage of the target market?
2. Best satisfy the buying requirements?
3. Be the most profitable?
Intensive distribution
firm tries to place its products and services in as many outlets as poss
Exclusive distribution
only one retail outlet in a specified geographic area carries the firm's products
Selective distribution
selects a few retail outlets in a specific geographic area to carry its products; most common form
Buyer's requirments:
info
convenience
variety
attendant services (installation, credit)
profitability
det by margins earned
-costs include distribution, ad, and selling expenses
channel conflict
one channel member believes another is engaged in behavior that prevents it from acheiving its goals
vertical conflict
occurs btwn diff lvls in a channel
1. disintermediation
2. disagreements over dist of PM
disintermediation
conflict arises when a channel member bypasses another and sells/buys products direct
horizontal conflict
occurs btwn intermed at the same lvl in a channel (2>retailers, 2>wholesalers that handle the same brand)
channel captain
coordinates, directs, and supports other channel members; can be producers, wholesalers, or retailers
dual distribution
anticompetitive in some situations
Clayton Act
prohibits exclusive dealing and tying arrangements when they lessen competition/create monopolies