Mrkt 341 Chapter 10

Front 1

Value delivery network

Back 1

The network made up 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 levels.

Front 5

Indirect marketing channel

Back 5

A channel containing one or more intermediary levels.

Front 6

Channel conflict

Back 6

Disagreement among marketing channel members on goals and roles--who should do what and for what rewards.

Front 7

Conventional distribution channel

Back 7

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.

Front 8

Vertical marketing system (VMS)

Back 8

A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the other, has contracts with them, or has so much power that they all cooperate.

Front 9

Corporate VMS

Back 9

A vertical marketing system that combines successive stages of production and distribution under single ownership--channel leadership is established through common ownership.

Front 10

Contractual VMS

Back 10

A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone.

Front 11

Franchise organization

Back 11

A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process.

Front 12

Administered VMS

Back 12

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.

Front 13

Horizontal marketing system

Back 13

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

Front 14

Multichannel distribution system

Back 14

A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.

Front 15

Disintermediation

Back 15

The cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermediaries.

Front 16

Marketing channel design

Back 16

Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them.

Front 17

Intensive distribution

Back 17

Stocking the product in as many outlets as possible.

Front 18

Exclusive distribution

Back 18

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

Front 19

Selective distribution

Back 19

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

Front 20

Marketing channel management

Back 20

Selecting, managing and motivating individual channel members and evaluating their performance over time.

Front 21

Marketing logistics (physical distribution)

Back 21

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 22

Supply chain management

Back 22

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

Front 23

Distribution center

Back 23

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 24

Intermodal transportation

Back 24

Combining two or more modes of transportation.

Front 25

Integrated logistics management

Back 25

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.

Front 26

Third-party logistics (3PL) provider

Back 26

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