• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/31

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

31 Cards in this Set

  • Front
  • Back
channel of distribution
any series of firms or individuals who participate in the flow of products from producer to final user or consumer
place decisions...
1. are suggested by product classes
2. may involve several different places/arrangements
3. have long run effects, harder to change than any of other 4 Ps
direct distribution channel
producer handles all distribution: goes directly to customer
advantages of direct distribution
greater control of marketing process; lower cost; direct contact with customers/more aware of changes; don't have to deal w/ middlemen; internet makes it easier
direct distribution most common for...
in B2B markets (larger orders, fewer transactions, e-commerce can handle replenishment), most service firms (ex. accounting firm), very few consumer products (ex. vacuum cleaners, or through online direct orders)
direct marketing
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling (more promotion related than distribution)
indirect distribution channel
many times not feasible for producer to handle whole distribution job; most consumer products must use indirect for convenience for the customer
middlemen (wholesalers and retailers)/channel specialists
can supply information to bring buyers and sellers together, can also resolve discrepancies in quantity and assortment
discrepancy of quantity
the difference between the quantity of products it is economical for a producer to make and the quantity that consumers or users really want
discrepancy of assortment
the difference between the lines of products a producer typically makes and the assortments final consumers or users want
regrouping activities
activities that adjust discrepancies in quantity and assortment
RgA: Accumulating
collecting products from many small producers: important in less-developed countries, agricultural markets, and for professional services (eg hospitals)
RgA: Bulk-Breaking
dividing large quantities into smaller quantities (usually as products get closer to final market)
RgA: Sorting
separating products into grades and qualities desired by different target markets
RgA: Assorting
putting together a variety of products to give a target market what it wants (usually done by those closest to the final consumer)
whole-channel product-market commitment
all channel members must focus on the same target market at the end of the channel and share the various marketing functions in appropriate ways
conflict in channel
can be vertical: between two firms at different levels (ex. producer v wholesaler) or horizontal: between two firms at the same level of distribution (ex. two retailers)
channel captain
a manager who guides channel relationships and helps direct the activities of the whole channel and tries to avoid or resolve channel conflicts
different firms as channel leaders
producers or middlemen can be channel captains, but functions may be split or shared in different ways (chopped up 4P diagram) and some big firm leaders can alter channel's structure (say, by eliminating a wholesaler from the process)
traditional marketing system
little/no cooperation between different firms in channel, no leader or control, firms act as 'independents'
vertical marketing system
whole channel focuses on same target market at the end of the channel. 3 types: administered, contractual, and corporate
VMS: administered
informal agreement by channel members to cooperate; may use routine ordering or accounting standardization; most economically powerful is the leader; ex=GE
VMS: contractual
formal agreement by contract to cooperate channel activities; communication is usually better in these; ex=McDonald's
VMS: corporate
one company owns all firms in distribution channel; full communication and no questions of leadership
ideal market exposure
desired or ideal level of exposure in each geographic market; can be exclusive, selective, or intensive; makes a product available widely enough to satisfy target customers’ needs but not exceed them
IME: intensive
selling the product through all responsible and suitable wholesalers and retailers who will stock and/or sell the product; pretty much 'sell it where they buy it'
IME: selective
selling only through middlemen who give product special attention; pretty much 'sell it where it sells best' *this can grow to intensive if market grows*
IME: exclusive
selling through only one middleman for a particular geographic area (usually for specialty products only)
horizontal vs. vertical arrangements
vertical arrangements (between firms at different levels) are legal, horizontal arrangements (between firms at same level) are illegal
dual distribution (also multichannel distribution)
occurs when a producer uses several competing channels to reach the same target market
reverse channels
channels used to retrieve products from consumers; a comprehensive distribution strategy means that reverse channels must be planned for in the event they are needed