Mkt300 - Exam 4 (Ch.13)

Front 1

Marketing Channel

Back 1

-A business structure of interdependent organizations that reach from the point of product origin to the consumer with the purpose of moving products to their final consumption destination

Front 2

Channel Members

Back 2

-Intermediaries, Re-sellers, Middlemen

Front 3

Supply Chain

Back 3

-The connected chain of all of the business entities, both internal and external to the company, that perform or support the marketing channel functions

Front 4

Discrepancy of Quantity

Back 4

-The difference between the amount of product produced and the amount an end user wants to buy

Front 5

Discrepancy of Assortment

Back 5

-Occurs when a consumer does not have all of the items needed to receive full satisfaction from a product.

(Example: For pancakes, you still need a knife, fork, butter, syrup, to go with the pancakes)

Front 6

Temporal Discrepancy

Back 6

-A situation that occurs when a product is produced but a customer is not ready to buy it

(Ex: X-mas and Halloween decorations are in operation all year even though consumer demand is concentrated during certain months of the year)

Front 7

Spatial Discrepancy

Back 7

-The difference between the location of a producer and the location of widely scattered markets

(Ex: If all the Hungry Jack pancake mix is produced is Boise, then Pillsbury must use an intermediary to distribute the product to other regions of the US)

Front 8

Retailer

Back 8

-A channel intermediary that sells mainly to consumers

Front 9

Merchant Wholesalers

Back 9

-Organizations that facilitate the movement of products and services from the manufacturer to producers, re-sellers, governments, institutions, and retailers

Front 10

Agents & Brokers

Back 10

-Facilitate the sale of a product from producer to end user by representing retailers, wholesalers, or manufacturers

Front 11

Marketing Channel Functions

Back 11

-Transactional
-Logistical
-Facilitating

Front 12

Transactional Functions

Back 12

-Contacting and communicating with prospective buyers to make them aware of existing products and explain their features, advantages, and benefits.

Front 13

Logistical Functions

Back 13

-Transportation and storage of assets, as well as their sorting, accumulation, consolidation, and/or allocation for the purpose of conforming to customer requirements

Front 14

Facilitating Functions

Back 14

-Researching and Financing

Front 15

Direct Channel

Back 15

-A distribution channel in which producers sell directly to consumers

(Ex: telemarketing, mail-order, and catalog shopping)

Front 16

Alternative Channels

Back 16

-Multiple Channels
-Nontraditional channels
-Strategic Channel Alliances

Front 17

Multiple Channels

Back 17

-When a producer selects two or more channels to distribute the same product to target markets

Front 18

Nontraditional Channels

Back 18

-Mail-order channels, Infomercials

-May limit a brand's coverage, but they can give a producer serving a niche market a way to gain market access and customer attention without having to establish channel intermediaries

Front 19

Strategic Channel Alliances

Back 19

-A cooperative agreement between business firms to use the other's already established distribution channel

(Ex: 15 years ago Starbucks contracted with PepsiCo to develop and bottle a Starbucks brand of ready to drink coffee_

Front 20

Factors affecting Channel Choice

Back 20

-Market factors

-Product factors: products that are more complex, customized, and expensive tend to benefit from shorter and more direct marketing channels. (ex: pharmaceuticals)

-Producer factors

Front 21

Intensive Distribution

Back 21

-A form of distribution aimed at having a product available in every outlet where target customers might want to buy it

Front 22

Selective Distribution

Back 22

-A form of distribution achieved by screening dealers to eliminate all but a few in any single area

Front 23

Exclusive Distribution

Back 23

-A form of distribution that establishes one or a few dealers within a given area

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Types of Channel Relationships

Back 24

-Arms Length relationships
-Cooperative relationships
-Integrated relationships

Front 25

Arms-Length relationships

Back 25

-Considered to be temporary or one-time only and are characterized by the companies' unwillingness or lack of ability to develop a closer type of relationship

Front 26

Cooperative relationships

Back 26

-Generally administered using some kind of formal contract, are used when a company wants less ambiguity but doesn't want the long term and/or capital investment necessary in an integrated relationship

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Integrated relationships

Back 27

-Closely bonded relationships characterized by formal arrangements that explicitly define the relationships to the involved channel members

Front 28

Channel Power

Back 28

-A channel member's ability to control or influence the behavior of other channel members

Front 29

Channel Control

Back 29

-Occurs when one channel member's power affects another member's behavior

Front 30

Channel Leader/Captain

Back 30

-A member of a marketing channel that exercises authority and power over the activities of other channel members

Front 31

Channel Conflict

Back 31

-A clash of goals and methods between distribution channel members

Front 32

Horizontal Conflict

Back 32

-Occurs among channel members on the same level, such as 2 or more different wholesalers or 2 or more different retailers that handle the same manufacturer's brands

Front 33

Vertical Conflict

Back 33

-A channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or the manufacturer and retailer

Front 34

Channel Partnering/ Cooperation

Back 34

-The joint effort of all channel members to create a channel that serves customers and creates a competitive advantage