Chapter 9 - Marketing Cahnnels: Delivering Customer Value

Front 1

“make and sell” view includes the firm’s raw materials, productive inputs, and factory capacity

Back 1

Supply chain

Front 2

“sense and respond” view suggests that planning starts with the needs of the target customer, and the firm responds to these needs by organizing a chain of resources and activities with the goal of creating customer value

Back 2

Demand chain

Front 3

the firm’s suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system

Back 3

Value delivery network

Front 4

offer producers greater efficiency in making goods available to target markets. Through their contacts, experience, specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own

Back 4

Intermediaries

Front 5

intermediaries transform the assortment of products into assortments wanted by consumers

Back 5

From an economic view

Front 6

add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them

Back 6

Channel members

Front 7

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

Back 7

Marketing channel

Front 8

refers to disagreement among marketing channel members on goals, roles, and rewards-who should do what and for what rewards

Back 8

Channel conflict (horizontal and vertical)

Front 9

channel consisting of one or more independent producers, wholesalers, ad retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole

Back 9

Conventional distribution systems

Front 10

distribution channel structure in which producers, wholesalers, and retailers acting as a unified system and consist of:

•Corporate marketing systems

•Contractual marketing systems

•Administered marketing systems

Back 10

Vertical marketing systems (VMSs)

Front 11

a vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common strategies; total ownership

Back 11

Corporate vertical marketing system

Front 12

consists of independent firms at different levels of production and distribution who join together through contracts; legal relationships

Back 12

Contractual vertical marketing system

Front 13

which a channel member, called franchisor, links, several stages in the production-distribution process

Back 13

Franchise organization

Front 14

vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties; strong leadership

Back 14

Administered vertical marketing system

Front 15

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

Back 15

Horizontal marketing systems

Front 16

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

Back 16

Disintermediation

Front 17

Channel design decisions

Back 17

•Analyzing consumer needs

•Setting channel objectives

•Identifying major channel alternatives

•Evaluation

Front 18

Identifying major alternatives

Back 18

•intensive distribution (candy and toothpaste)

•exclusive distribution (luxury automobiles and prestige clothing)

•selective distribution (television and home appliance)

Front 19

•can vary from country to country•Must be able to adapt channel strategies to the existing structures within each country

Back 19

Channel systems (Designing international distribution channels)

Front 20

Channel management decisions

Back 20

Selecting, managing, motivating, evaluating channel members

Front 21

when the seller allows only certain outlets to carry its products

Back 21

Exclusive distribution

Front 22

when the seller requires that the sellers not handle competitor’s products

Back 22

Exclusive dealing

Front 23

where producer or seller limit territory

Back 23

Exclusive territorial agreements

Front 24

agreements where the dealer must take most or all of the line

Back 24

Tying agreements

Front 25

involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit

Back 25

Marketing logistics (physical distribution)

Front 26

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

Back 26

Supply chain management

Front 27

Major logistics functions

Back 27

•warehousing

•inventory management

•transportation

•logistics information management