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29 Cards in this Set

  • Front
  • Back
marketing channels
compromised of org's and individuals thats makes products or service available for customer use - make possible the flow of goods from a producer through intermediaries to a buyer
value created by marketing channels (2)
1)exchange efecencies b/t people
2)reduce number of contacts required b/t people
how do pioneer and JVC get to contacts (rock fan, pop fan)
put retailer in their to cut down on contacts
3 functions performed by channel intermediaries
1.transactional functions
2.logistical functions
3.facilitating functions
transactional functions
-buy merchandise and take risk that it will sell
-sell merchandise to customer
logistical functions
-assort(gather) products which makes assorment to choose from
-store products - maintain
-sort products - buy large quanities and break into small quanties for customers
-transport products
facilitating functions
-finance products
-grade products(jugement qualities)
-marketing infor and research to customers
merchant wholesalers
-independently owned
-take title(own) products they sell
-profits from buy low and selling high
agents and brokers
-do not take title(dont own) products they sell
-perform fewer channel functions
-profits come from commission or fees for their distribution services
direct channels
direct realtionship b/t producer and consumer(producer>consumer)
indirect channels (3)
1. when theres something b/t producer and consumer such as retailer.(producer>retailer>consumer)
2.sometimes 2 b/t (producer>wholesaler>retailer>consumer)
3.agent too(producer>agent>wholesaler>retailer>consumer)
who owns product...agent or merchant?
merchant owns product, agent does not
org. product channels (4)direct and indirect
2.producer>industrial distributor>customer
forward integration
manufac and retailer are the same company b/c manufac buys a retailer...moving toward the customer
backward integration
up the channel away from the customer(retailer buying manufac)
contractual system
-org's are under legal contract adn not under one(same) ownership
-contracts trying to enforce who they should behave
3 types of contractual systems
1. wholesaler sponsored-wholesale develops relationship with independent retailer
2.retailer sponsored-independent retailers form org. that operates wholesaler
3.franchising - contractual arragment for distrubting products
administered system
achieve coordination a tsuccessive stages of production and distribution by the size and influence of one channel member rather than though ownership. proctocr and gable gets promtion in supermarkets.
exculusive dealing
supplier requires channel members to sell only its products or restricts distributors form selling directly competitive products
tying arragements
supplier requires a distributor purchasing some proucts to buy others from the supplier
refusal to deal
supplier has legal right to choose intermediaries--> but can refuse to deal with intermediary
resale restrictions
suppliers attempt to stipulate to whom distibutors may resell the suppliers producsts and in what specific geograpfic areas or territories they may be sold
industrial distributor
variety of functions such as selling, stocking, and delivering a full prouct assortment and financing- similar to the wholesalers in consumer channels
full service merchant wholesalers
1.general merchandise - carry broad assortment of merdchandise and perform all fucntions
2.specialty merchandise-offer narrow range of products but exstensive assortment with in product lines
limited service wholesalers
1.rack jobbers-funish racks or shelves that display merchandise in retial stores and carry-take title to merch and furnish their own transportation for merchandise
3.drop shippers-own merch they sell but dont stock or deliver
4.truck jobbers-small wholesalers w/ warehouse from which they stock trucks to retailers
manufac agent
work for severl producers and carry noncompetitve merchandise in territory
selling agents
represent single producer and resonsible for entire marketing functions
vertical marketing systems
professionaly managed and centrally coordinated marketing channels achieve marketing impact
coportate system
successive stages of production and distribution. forward and back integration