Chp 12: Marketing Channels

Front 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

Back 1

Value Delivery Network

Front 2

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

Back 2

Marketing Channel

Front 3

a layer of intermediaries that performs some work in bringing the product and its ownership closer to final buyer

Back 3

Channel level

Front 4

a marketing channel that has no intermediary levels

Back 4

Direct Marketing Channel

Front 5

a marketing channel containing one or more intermediary levels

Back 5

Indirect Marketing Channel

Front 6

disagreements among marketing, channel members on goals, roles, and rewards, who should do what and for what awards

Back 6

Channel conflict

Front 7

consists of one or more independent producers, wholesalers, and retailers; each is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole

Back 7

Conventional distribution channel

Front 8

consists of producers, wholesalers, and retailers acting as a unified system; one channel member owns the others, has contracts with them, or weirdo so much power that they must all cooperate

Back 8

Vertical Marketing System (VMS)

Front 9

integrates successive stages of production and distribution under single ownership

Back 9

Cooperate VMS

Front 10

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

Back 10

Contractual VMS

Front 11

the most common type of contractual relationship; a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process

Back 11

Franchise organization

Front 12

a VMS that coordinate successive stages of production and distribution through the size and power of one of the parties

Back 12

Administered VMS

Front 13

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

Back 13

Horizontal Marketing System

Front 14

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

Back 14

Multichannel distribution system

Front 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

Back 15

Disinternediation

Front 16

calls for analyzing consumer needs, selling channel objectives, identifying major channel alternatives, and evaluating those alternatives

Back 16

Marketing channel design

Front 17

stocking the product in as many outlets as possible

Back 17

Intensive distribution

Front 18

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

Back 18

Exclusive distribution

Front 19

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

Back 19

Selective distribution

Front 20

calls for selecting, managing, and motivating individual channel members and evaluating their performance over time

Back 20

Marketing channel management

Front 21

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

Back 21

Marketing logistics (physical distribution)

Front 22

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

Back 22

Supply Chain Management

Front 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

Back 23

Distribution center

Front 24

combining two or more modes of transportation

Back 24

Intermodal transportation

Front 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

Back 25

Integrated logistics management

Front 26

an independent logistics provider that performs any or all of the functions required to get a client's product to market

Back 26

Third-Party Logistics (3PL)