Marketing Chapter 12

Front 1

Value delivery network

Back 1

A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value.

Front 2

Marketing channel (distribution channel):

Back 2

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

Front 3

Channel level

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 steps.

Front 5

Indirect marketing channel

Back 5

A marketing channel containing one or more intermediary levels.

Front 6

Channel conflict

Back 6

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

Front 7

Vertical
Horizontal

Back 7

Conflict between different levels of the same channel.

Occurs among firms at the same level of the channel.

Front 8

Conventional distribution channel

Back 8

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 9

Intensive distribution

Back 9

Stocking the product in as many outlets as possible.

Front 10

Exclusive distribution

Back 10

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

Front 11

Selective distribution

Back 11

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

Front 12

Marketing logistics: 3 flows:

Back 12

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.

Front 13

Major logistical functions

Back 13

Warehousing, Inventory Management, Transportation, Logistics Information Management.

Front 14

Just-in-time

Back 14

Carrying only small amounts of inventories and new stock arrives exactly when needed, rather than being stored.

Front 15

Radio frequency identification distribution (RFID):

Back 15

“smart tag”. Transmitter chips embedded in or placed on products used to track products through various points of the distribution channel.

Front 16

Supply chain management

Back 16

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

Front 17

Distribution center

Back 17

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 18

Third-party logistics (3PL) provider

Back 18

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