Marketing Ch. 13

Front 1

Value Delivery Network

Back 1

The network made up of the company, suppliers, distributiors, and ultimately customers who "partner" with each other to improve the performance of the entire system.

Front 2

Marketing channel (distribution channel)

Back 2

A set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.

Front 3

Channel Layer

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

Channel containing one or more intermediary levels.

Front 6

Channel conflict

Back 6

Disagreement among marketing channel members on goals and roles-- 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, even at the expense of profits for the system as a whole.

Front 8

Vertical marketing system (VMS)

Back 8

A distribution channel structure in which producers, wholesales, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power 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.

Hint 9

example: Spanish clothing chain Zara- designs, makes, distributes, and sells its own products through its own channels

Front 10

Contractual VMS

Back 10

A vertical marketing system in which indepedent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could acheive alone.

Hint 10

example: franchises: manufacturer-sponsored retailer, manufacturer-sponsored wholesaler, service-firm-sponsored retailer

Front 11

Franchise organization

Back 11

A contractural VMS in which a channel member, called a franchiser, 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, not through common ownership or contractual ties, but through the size and power of one of the parties.

Hint 12

examples: wal-mart exerting power over it's suppliers

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.

Hint 13

examples: coke & nestle joining together to make ready to drink coffee and tea products such as nestea and nescafe.

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.

Hint 14

4 segments: producer to consumer, producer to retailers to consumer, producer to distributors to dealers to businesses, producer to businesses

Front 15

Disintermediation

Back 15

The displacement of traditional resellers from a merkting channel by radically new types of intermediaries.

Hint 15

exp: dell computers and american airlines selling directly to consumers and bypassing traditional retailers.

Front 16

Intensive distribution

Back 16

stocking the product in as many outlets as possible

Hint 16

exp: toothpaste sold in grocery stores, convenience stores, walmart, etc.

Front 17

Exclusive Distribution

Back 17

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

Hint 17

exp: Bentley sold on through a few dealers, maybe even only one dealer in New York City.

Front 18

Selective Distribution

Back 18

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

Hint 18

exp: larger appliances and furniture are sold this way

Front 19

Marketing logistics (physical distribution)

Back 19

The tasks involved in 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.

Hint 19

outbound, inbound, and reverse distribution

Front 20

Supply chain management

Back 20

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

Front 21

Distribution Center

Back 21

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 22

Intermodal transportation

Back 22

Combining two or more modes of transportation.

Hint 22

piggyback, fishyback, trainship, airtruck

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 its client's product to market.

Hint 24

Ryder Systems, UPS Worldwide logistics, FedEx Logistics