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48 Cards in this Set

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A group of institutions ( facilitating agencies) that assists channel members in performing distribution tasks
Ancillary Structure
The group of channel members to which a set of distribution tasks have been allocated
channel structure
given a set of distribution tasks that must be performed to accomplish a firms dist. objectives the manager must decide how to allocate the tasks
allocation decision
firm has chosen to reach its customers through more then one channel
multi-channel strategy
hundreds of thousands of producers would be connected directly with millions of consumers on a global scale w/o the help of middlemen
disintermediation
involving new types of middlemen called intermedearies such as yahoo and ebay emerged to connect buyers and sellers via the internet
reintermediation
rapid technology transfer from one company to another and global competition
product strategy
the ability of more and more firms to operate production facilities all over the world has created fierce price competition in many diff. product catagories and service as well
pricing strategy
massive barrage of advertising and other firms of promotion to which to which consumers are exposed on a daily basis has created enormous clutter
promotion
a marketing channel strategy that offers a greater potential for gaining a competition adv. then the other b/c it is more difficult for competition to copy
place
the external contactual organization that management oporates to achieve its distribution objectives
marketing channel
the marketing channel exists outside the firm
external
suggests involvement by management in the affairs of the channel
operates
refers to those firms or parties whao are involved in negotiation functions as a product or service moves from the producer to its ultimate user
contactual organization
that management has has certain distribution goals in mind
distribution objectives
anyone in the firm or org. who is involved in marketing channel decision making
channel manager
5 flows in marketing channels
1. product flow
2. negotiation flow
3. ownership flow
4. information flow
5. promotion flow
eliminate the middleman
disintermediation
2 end users
1. consumer
2. industries + institutional
percent increase in manu. trade
70%
break down bulk or shipment into smaller quantities
break bulk
5 stages of marketing channel and the environment
1. economic environment
2. competitive environment
3. sociocultural environment
4. technilogical environment
5. legal environment
3 channels of economic environment or 3 major forces
1. recession - consumers don't spend money; sales drop
2. inflation - prrices rise
3. deflation - prices fall; production cost rises
4 types of competition
1. horizontal competition
2. intertype competition
3. vertical competition
4. channel system competition
3 types of vertical marketing
1. corporate
2. contactual
3. administered
IGA
independent grocers alliance
concrete human
social system
firms / agencies
collectivity
personal very direct aimed at one person
conflict
object oriented
competition
stores which the mmanu. will sell directly, high volume retailers
house accounts
the way an individual selects and interprits environmental stimuli
perceptual differences
various channel members have expectations about the behavior of other channel members
expectational differences
channel members explicitly carve out for themselves an area of decision making that they feel is explicitly theirs
decision domain disagreement
each member of the marketing channel has his or her own goals
goal incompatabilities
the system generated by any process of interaction on the sociocultural level, b/w two or more actors
social system
individuals or collectivities interacting as members of the marketing channel
interorganizational social system
the degree to which the total investment in the various inputs necessary to achieve a given distribution object can be optimized in terms of outputs
channel efficiency
offers another possible approach for uncovering potential conflict b.w channel members
marketing channel audit
offer another approach to early detection or channel conflict
distributors advisory councils or channel members committees
might be established for periodic evaluations of emerging problems related to conflict
a channelwide committee
by the committee or some other vehicle which takes into account the goals and special capacities of various channel members the needs of consumers and environmental constraints
joint goal setting
position might be created for each major firm in the channel. individuals fulfilling this position would be responsible for exploring the firms distribution related problems
a distribution executive
weigand and wasson point to the following 5 advantages of arbitration for resolving channel conflicts :
1. Arbitration is fast
2. Arbitration preserves secrecy
3. Arbitration is less expensive then litigation
4. Arbitration confronts problems in their ancipient stage when they are easier to resolve
5. Arbitration often takes place before industry experts
the capacity of one channel member to control member to control or influence the behavior of another channel member
power
the opposite of reward power
coercive power
stems from internalized norms in one channel member which dictate that another channel member has a legitimate right to influence the first and an obligation exists to accept that influence
legitimate power
4 types of growing emphasis on marketing channel strategy
1. the explosion of info technology and e commerce
2. the greater difficulty in gaining a sustainable competitive adv.
3. the growing power of distributers especially giwnt retailers in marketing channels
4. the need to reduce distribution costs