Mk323 - Chpt 16 And 17 - Supply Chain And Channel Management And Retailing And Multichannel Marketing

Front 1

marketing channel management aka supply chain management

Back 1

a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers into a seamless operation to the right locations, and at the right time, as well as to minimize systemwide costs while satisfying the service levels their customers require

Front 2

direct marketing channel

Back 2

there are no intermediaries between the buyer and the seller

Front 3

indirect channel

Back 3

there are 1 or more intermediaries between the buyer and the seller

Front 4

vertical channel conflict

Back 4

when supply chain members that buy and sell to one another are not in agreement about their goals, roles or rewards

Front 5

horizontal channel conflict

Back 5

where there is a disagreement or discord among members at the same level of marketing channel

Front 6

vertical marketing system

Back 6

marketing channel in which the members act as a unified system

Front 7

administered vertical marketing system

Back 7

no common ownership. but dominant channel member controls or holds the balance of power

Front 8

contractual vertical marketing system

Back 8

after formalizing relationship. independent firms at different levels of marketing channel join together through contracts to obtain economies of scale and coordination and to reduce conflict.

Front 9

reward power

Back 9

(economic power) monetary incentives

Front 10

coercive power

Back 10

(economic power) power of threat. form of punishment to the less powerful supply member

ex) Walmart threatens to punish the other members for not undertaking certain tasks (ex. delay payment to PenAgain for a late delivery to Walmart's stores)

Front 11

referent power

Back 11

when customers expect the supplier's product or brand to be at the other member's retail stores

ex) nordstrom has referent power over Gucci. customers expect gucci's products to be sold at nordstrom. gucci not present at nordstrom's stores can negatively influence its sales and profits.

Front 12

expertise power

Back 12

one member displays great knowledge in marketing and selling skills over the other member(s)

ex) Macy's displays excellent marketing skills therefore, has expertise power over other members of their supply channel

Front 13

information power

Back 13

one member has more information and connections about other suppliers and industries or marketing information.

ex) Walmart can withhold industry information or marketing information form PenAgain

Front 14

Legitimate power

Back 14

one member with legitimate power can get another member to behave a certain way because of contractual agreement

ex) Walmart is big enough to exert its legitimate power over Pen Again to gain its own benefits and get PenAgain to act a certain way

Front 15

franchising

Back 15

contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor

Front 16

corporate vertical marketing system

Back 16

the parent company has complete control and can dictate the priorities and objectives of the marketing channel because it owns multiple segments of the channel.

ex) American Apparel manufactures its own product and operates its own retail stores

Front 17

strategic relationship aka. partnering relationship

Back 17

the supply chain members are committed to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial. by having:

mutual trust

open communications

common goals

interdependence

credible commitments

Front 18

electronic data interchange (EDI)

Back 18

computer-to-computer exchange of business documents from a retailer to a vendor and back

Front 19

vendor-managed inventory

Back 19

an approach for improving marketing channel efficiency [in which manufacturer is responsible for maintaining the retailer's inventory levels in each of its stores]

Front 20

distribution intensity

Back 20

# of channel members to use at each level of marketing channel

Front 21

intensive distribution

Back 21

strategy designed to place products in as many outlets as possible

Front 22

exclusive distribution

Back 22

exclusive geographic territories to one or very few retail customers

Front 23

selective distribution

Back 23

relies on a few selected retail customers in a territory to sell products

Front 24

exclusive co-brand

Back 24

a brand that is developed by a national brand vendor, often in conjunction with a retailer and is sold exclusively by the retailer.