Marketing Ch. 15

Front 1

Arises when once channel member believes anothermember is engaged in behavior that prevents it from achieving its goals. Twotypes

Back 1

Channel Conflict

Front 2

Conflict between different levels in a marketing channel(ex: between a manufacturer and wholesaler where a channel member bypassesanother member and sells or buys products direct

Back 2

Vertical Conflict

Front 3

Conflict that Occurs between intermediaries at the same levelin a marketing channel, such as between two or more retailers (Target andKmart) or two or more wholesalers that handle the same manufacturer’s brands.Ex: one Buick dealer complains that another has opened up too close to itsdealership

Back 3

Horizontal Conflict

Front 4

The ability of logistics management to satisfyusers in terms of time, dependability, communication and convenience

Back 4

Customer Service

Front 5

Type of Channel Conflict: when a channel memberbypasses another member and sells or buys products direct. Ex: AmericanAirlines terminating its relationship with orbitz to sell directly through AADirect Connect

Back 5

Disintermediation

Front 6

An arrangement whereby a firm reaches differentbuyers by employing two or more different types of channels for the same basicproduct. Ex: GE sells large appliances directly to home builders but also usesretail outlets such as Lowes to sell to consumers

Back 6

Dual Distribution

Front 7

When only one retailer in a specifiedgeographical area carries the firm’s products. Typically chosen for specialtyproducts or services such as women’s fragrance and men’s and women’s high endapparel. Opposite of intensive distribution

Back 7

Exclusive Distribution

Front 8

When a firm tries to place its products andservices in as many outlets as possible. Usually chosen for convenienceproducts or services such as candy, fast food, newspapers, soft drinks, etc.opposite of exclusive distribution

Back 8

Intensive Distribution

Front 9

When a firm tries to place its products andservices in as many outlets as possible. Usually chosen for convenienceproducts or services such as candy, fast food, newspapers, soft drinks, etc.opposite of exclusive distribution.

- The performance of these activities is known as logistics management, all to satisfy customer requirements

Back 9

Logistics

Front 10

Method of marketing distribution which consistsof individuals and firms involved in the process of making a product or serviceavailable for use or consumption by consumers or industrial users

Back 10

Marketing Channel

Front 11

Types of Marketing Channel

The producer and ultimate consumer deal directlywith each other

Back 11

Direct Channel

Front 12

Types of Marketing Channels

Intermediaries are inserted between the producerand consumer and perform numerous channel functions

Back 12

Indirect Channel

Front 13

The blending of different communication anddelivery channels that are mutually reinforcing in attracting, retaining andbuilding relationships with consumers who shop and buy in traditional intermediaries and online.

Back 13

Multimarketing Channel

Front 14

A process of reclaiming recyclable and reusablematerials, returns and reworks from the point of consumption or use for repair,remanufacturing, redistribution or disposal.

- The effect of this can be seen in the reduced waste in landfills and lowered operating costs for companies

Back 14

Reverse Logistics

Front 15

· Means that a firm selects a few retailers in aspecific geographical area to carry its products. This weds some of the marketcoverage benefits of intensive distribution to the control over resale withexclusive distribution

Back 15

Selective Distribution

Front 16

Refers to the various firms involved inperforming the activities required to create and deliver a product or serviceto consumers or industrial users

- Includes suppliers that provide raw material inputs to a manufacturer as well as the wholesalers

Back 16

Supply Chain

Front 17

Includes expenses associated withtransportation, materials handling and warehousing, inventory, stockouts, orderprocessing and return products handling.

- The objective of logistics management in a supply chain is to minimize this while delivering the appropriate level of customer service

Back 17

Total Logistics Cost

Front 18

Where the supplier determines the product amountand assortment a customer (such as a retailer) needs and automatically deliversthe appropriate items.

- Convenience component of customer service concept

Back 18

Vendor-managed Inventory (VMI)

Front 19

Professionally managed and centrally coordinatedmarketing channels designed to achieve channel economies and maximum marketingimpact.

Back 19

Vertical Marketing Systems