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24 Cards in this Set

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Value Delivery Network
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.
Marketing channel (distribution channel)
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.
Channel Layer
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
Direct Marketing channel
A marketing channel that has no intermediary levels.
Indirect marketing channel
Channel containing one or more intermediary levels.
Channel conflict
Disagreement among marketing channel members on goals and roles-- who should do what and for what rewards.
Conventional distribution channel
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.
Vertical marketing system (VMS)
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.
Corporate VMS
A vertical marketing system that combines successive stages of production and distribution under single ownership--channel leadership is established through common ownership.
example: Spanish clothing chain Zara- designs, makes, distributes, and sells its own products through its own channels
Contractual VMS
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.
example: franchises: manufacturer-sponsored retailer, manufacturer-sponsored wholesaler, service-firm-sponsored retailer
Franchise organization
A contractural VMS in which a channel member, called a franchiser, links several stages in the production-distribution process.
Administered VMS
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.
examples: wal-mart exerting power over it's suppliers
Horizontal Marketing System
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
examples: coke & nestle joining together to make ready to drink coffee and tea products such as nestea and nescafe.
multichannel distribution system
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
4 segments: producer to consumer, producer to retailers to consumer, producer to distributors to dealers to businesses, producer to businesses
The displacement of traditional resellers from a merkting channel by radically new types of intermediaries.
exp: dell computers and american airlines selling directly to consumers and bypassing traditional retailers.
Intensive distribution
stocking the product in as many outlets as possible
exp: toothpaste sold in grocery stores, convenience stores, walmart, etc.
Exclusive Distribution
Giving a limited number of dealers the exclusive right to distribute the company's products in their territories.
exp: Bentley sold on through a few dealers, maybe even only one dealer in New York City.
Selective Distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products.
exp: larger appliances and furniture are sold this way
Marketing logistics (physical distribution)
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.
outbound, inbound, and reverse distribution
Supply chain management
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers and final consumers.
Distribution Center
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.
Intermodal transportation
Combining two or more modes of transportation.
piggyback, fishyback, trainship, airtruck
Integrated Logistics Management
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.
Third-party logistics (3PL) provider
An independent logistics provider that performs any or all of the functions required to get its client's product to market.
Ryder Systems, UPS Worldwide logistics, FedEx Logistics