12. Marketing Channels and Supply Chain Management Flashcards
A set of interdependent organisations that help make a product or service available for use or consumption by the consumer or business user
Marketing channel (or distribution channel)
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
Value delivery network
A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer
Channel level
A marketing channel that has no intermediary levels
Direct marketing channel
A marketing channel containing one or more intermediary channels
Indirect marketing channel
Disagreement among marketing channel members on goals and roles— who should do what and for what rewards
Channel conflict
A channel consisting of one or more independent producers, wholesalers and retailers, each a separate business seeking to maximise its own profits
Conventional distribution channel
A distribution channel structure in which producers, wholesalers and retailers act as a unified system
One channel member owns the others, has contracts with them or has so much power that they all cooperate
Vertical marketing system (VMS)
A vertical marketing system that combines successive stages of production and distribution under single ownership—channel leadership is established through common ownership
Corporate VMS
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
Contractual VMS
A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process
Franchise organisation
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
Administered VMS
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
Horizontal marketing system
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments
Multichannel distribution system
The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries
Disintermediation
Designing effective marketing channels by analysing consumer needs, setting channel objectives, identifying major channel alternatives and evaluating those alternatives
Marketing channel design and channel design decisions
Stocking the product in as many outlets as possible
Intensive distribution
Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories
Exclusive distribution
The use of more than one, but fewer than all, of the intermediaries who are willing to carry the company’s products
Selective distribution
Select channel members
Manage and motive channel members
Evaluate channel members
Marketing channel management decisions
The tasks involved in 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 as a profit
Marketing logistics (or physical distribution)
Managing upstream and downstream value-added flows of material, final goods and related information among suppliers, the company, resellers and final consumers
Supply chain management
A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill then efficiently and deliver goods to customers as quickly as possible
Distribution centre
Warehousing
Inventory management
Transportation
Logistics information management
Logistics system
