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33 Cards in this Set
- Front
- Back
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channel design
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decisions concerned with developing a channel structure that links the firm's marketing strategy with the needs of its target market. ex. how many levels of middlemen should be included in the distribution system?
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channel management
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decision invlove that development of policies and procedures to gain the maintain the copperation of and often to form mutually benficial long-term relationships with the various institutions within the channel
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merchant wholesalers
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take title to the goods they handle, sell primarily to other resellers (e.g. retailers) industrial and commercial customers tather than to individual consumers.
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agent middlemen
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include manufacturer's representatives and brokers. Also sell to other resellers, industrial or commerical customers, but do not take title to the goods. Usually specialize in the selling function and reprsent client manufacturers on a commission basis.
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retailers
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sell goods and services directly to ultimate consumers for their persona, nonbusienss use. Usually take title to goods they handle; are compensated by the margin between the price they pay for those goods the price they receive from their customers.
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facilitating agencies
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include advertising agencies, marketing research firms, collection agencies, truckign firms, and railroads; specialize in one or more marketing functions, work on a fee-for-service basis to help clients perform those functions more effectively and efficiently.
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exporting
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simplest way to enter a foreign market because it involves the least commitment and risk
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export merchants
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buy the product and sell it overseas for their own account
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export agents
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sell on a comission basis
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cooperative organization
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export for several producers, especially those selling farm prodcuts.
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licensing
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a firm offers the right to use its intangible assests (technology, know-how, patents, company name, trademarks) in exchange for royalites or some other ofrm of payment.
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franchising
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grants ther ight to use the company's name, tradermarks, and tehcnology.
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contract manufacturing
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involves sourcing a product from a manufacturer located in a foriegn country for sale there or elsewhere (auto parts, clothes, and furniture).
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joint ventures
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a joint ownership arrangemnt to produce and/or market goods in a foreign country.
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sole ownership
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setting up a production facitiliy in a foreign country
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economic power
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exists when channel members perceive that a firm can mediate economic rewards for them if they follow its directives.
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coercive power
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based on a perception that one channel member will punish another for failure to cooperate.
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expert power
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stems from a perception that one channel member has special knowledge or expertise that can benefit other members of the system.
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referent power
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based on teh belief that the benefits generated are likely to continue.
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legitimate power
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flows from the belief the one channel member has the right ot make certain decision or demands and to expect compliance from other members.
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dual distribution systems
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when a manufacturer of industrial goods uses wholesalers to sell small accounts and its own salesforce to handle large accounts
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sales agents
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usually represent only one manufacturer and are responsible for the full range of marekting activites needed by theat producer
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brokers
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these are independent firms whose purpose is to bring buyers and sellers to gether for an exchange.
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coporate vertical marketing systems
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in these systems firms acheive coordination and control through coporate ownership.
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contractual vertical marketing system
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in such systems independent firms at different levels of production and distribution coordinate their programs through contracts that spell out the right and duties of each party.
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dual distribution systems
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when a manufacturer of industrial goods uses wholesalers to sell small accounts and its own salesforce to handle large accounts
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administered vertical marketing system
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firms using this system coordinate the necessary activities at successive stages of distribution through the informal guidance and influence of one of the parties (rather than through ownership or contractual agreements). Ex. Walmart.
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relational vertical amrketing system
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rely on economic rewards, and often contractual agreements as well, to specify what is expected of each channel member and to provide incentives for cooperation. However, in relational systems what is expected of each partner may change by mutual agreement as market or competitive conditions change, and the economic incentives depend mroe on the long-term market success of the entire system than on the power and largess of the strongest member.
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pull strategy
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when purusing this strategy, a manufacturer focusese primairly on building selective demand and brand loyalty among potential customers through media advertising, consumer promotions, extended warranties, and customer service, product improvements, line extensions, and other actiosn aimed at winning custoemr preference. build strong consumer demand to increase ability to promote economic rewards in the form of large scale volumes to its channel members in return for their cooperation.
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push strategy
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much of the product's marketing budget is devoted to direct inducements to gain the cooperation of wholesalers and/or retailers.
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slotting allowance
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fee to induce reailers to stock the prodcuct on their shelves
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spiff
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monetary rewards
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off-invoice discounts
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discounts to encourage the reseller to pass along the savings to customers in the form of a special promotional price or sale event.
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