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11 Cards in this Set
- Front
- Back
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What is an indirect channel? |
A long channel of distribution |
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What is a direct channel |
A short channel of distribution |
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What is a multi-channel distribution system (advantages and disadvantages) |
A type of distribution for which different kinds of intermediaries are used at the same level in the channel of distribution. Advantage: Disadvantage: requires careful coordination between the various distribution channels |
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What are the 4 main factors that influence channel selection? |
Product and service characteristics, competition, company resources, intensity of distribution (intensive, selective and exclusive) |
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Intensive distribution |
The availability of a product in the widest possible channel of distribution (typically used by a company that wants to reach as much of the population as possible) |
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Selective distribution |
The availability of a product in only a few outlets in a particular market (suitable for goods that are purchased less frequently and for industrial goods such as accessory equipment) |
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Exclusive distribution |
The availability of a product in only one outlet in a geographic area (Sought for high priced shopping or specialty goods that offer the purchaser a unique value) |
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What are the 3 types of vertical marketing systems? |
Administered vertical marketing system, contractual vertical marketing system, corporate vertical marketing system |
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Administered vertical marketing system |
A cooperative system in which the organization with the greatest economic influence has control of planning the marketing program and identifies and coordinates the responsibilities of each member |
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Contractual vertical marketing system |
A legal agreement that binds the members in the marketing channel |
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Corporate vertical marketing system |
A tightly controlled arrangement in which a single corporations owns and operates in each level of the marketing channel |
