Marketing Ch 10

Front 1

Marketing channel (distribution channel)

Back 1

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

Front 2

channel level

Back 2

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

Front 3

Direct marketing channel

Back 3

A marketing channel that has no intermediary levels.

Front 4

indirect marketing channel

Back 4

A marketing channel containing one or more intermediary levels.

Front 5

channel conflict

Back 5

Disagreements among marketing channel members on goals, roles, and rewards—who should do what and for what rewards.

Front 6

conventional distribution channel

Back 6

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 7

Vertical marketing system (VMs)

Back 7

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 8

corporate VMs

Back 8

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

Front 9

contractual VMs

Back 9

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

Front 10

franchise organization

Back 10

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

Front 11

administered VMs

Back 11

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

Front 12

horizontal marketing system

Back 12

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

Front 13

Multichannel distribution system

Back 13

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

Front 14

Disintermediation

Back 14

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 15

Marketing channel design

Back 15

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

Front 16

intensive distribution

Back 16

Stocking the product in as many outlets as possible.

Front 17

exclusive distribution

Back 17

Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.

Front 18

selective distribution

Back 18

The use of more than one but fewer than all of the intermediaries that are willing to carry the company’s products.

Front 19

Marketing channel management

Back 19

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

Front 20

Marketing logistics (physical distribution)

Back 20

Planning, implementing, and controlling the physical flow of goods, services, and related informationfrom points of origin to points of consumption to meet customer requirements at a profit.

Front 21

supply chain management

Back 21

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

Front 22

Distribution center

Back 22

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 23

integrated logistics management

Back 23

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 24

third-party logistics (3Pl) provider

Back 24

An independent logistics provider that performs any or all of the functions required to get a client’s product to market.