Chapter 10: Marketing Exam 2

Front 1

value delivery network

Back 1

a network composed of the company, suppliers, distributors, and ultimately, customers who partner to help the entire system deliver better customer value

Front 2

marketing channel (or distribution channel)

Back 2

a set of interdependent organizations that help make a product or service available for use or consumption by the customer or business user

Front 3

channel level

Back 3

a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

Front 4

direct marketing channel

Back 4

a marketing channel that has no intermediary levels

Front 5

indirect marketing channel

Back 5

a marketing channel containing one or more intermediary levels

Front 6

channel conflict

Back 6

disagreements among marketing channel members on goals, roles, and rewards - who should do what and for what rewards

Front 7

conventional distribution channel

Back 7

a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole

Front 8

vertical marketing system (VMS)

Back 8

a channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate

Front 9

corporate VMS

Back 9

a vertical marketing system that combines successive stages of production and distribution under single ownership - channel leadership is established through common ownership

Front 10

contractual VMS

Back 10

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

Front 11

franchise organization

Back 11

a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process

Front 12

administered VMS

Back 12

a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

Front 13

horizontal marketing system

Back 13

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity

Front 14

multichannel distribution system

Back 14

a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments

Front 15

disintermediation

Back 15

the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries

Front 16

marketing channel design

Back 16

designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives

Front 17

intensive distribution

Back 17

stocking the product in as many outlets as possible

Front 18

exclusive distribution

Back 18

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

Front 19

selective distribution

Back 19

the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products

Front 20

marketing channel management

Back 20

selecting, managing, and motivating individual channel members and evaluating their performance over time

Front 21

marketing logistics (or physical distribution)

Back 21

planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

Front 22

supply chain management

Back 22

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Front 23

distribution center

Back 23

a large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

Front 24

intermodal transportation

Back 24

combining two or more modes of transportation

Front 25

integrated logistics management

Back 25

the logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organizations - to maximize the performance of the entire distribution system

Front 26

third-party logistics (3PL) provider

Back 26

an independent logistics provider that performs any or all of the functions required to get a client's product to market