CH 14 -- Marketing Channels and Supply Chain Management Flashcards
distribution
movement of goods and services form producers to consumers
Marketing (distribution) channels
System of marketing institutions that enhances the physical flow of G&S, along with ownership title from producer to consumer
Logisitics
Process of coordinating the flow of information, G&S among members of distribution channels
Supply chain management
Control of the activities of purchasing, process, and delivery through which raw materials are transformed into products and made available to final consumers
Physical Distribution
Broad range of activities aimed at efficient movement of finished goods from the end of the production line to consumers
Marketing Intermediary
Wholesaler or retailer that operates between producrers and consumers
Direct Channel
Marketing channel that moves goods directly from a producer to the business purchaser
Direct Selling
Strategy designed to establish direct sales contact between producer and final user
Dual Distribution
Network that moves products to a firm’s target market thourgh more than one marketing channel
Reverse Channel
Channel designed to return goods to their producers
Intensive Distribtuion
Distribution of a product through all available channels
Selective Distribution
Distribution of a product through a limited number of channels
Exclusive Distribution
Distribution of a product through a single wholesaler or retailer ina specific geographic region
Closed Sales Territory
Exclusive geographic selling region of distributor
Tying Agreement
Arrangement that requires a marketing intermediary to carry items other than those they want to sell
Channel Captain
Dominant and controlling member of the marketing channel
Gray Goods
Products manufactured abroad under license from US firm and then sold in the US market in competition with that firm’s own domestic output
Vertical Marketing Systems
Planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout distribution chain
Forward integration
Process through which a firm attempts to control downstream distribution
Backward integration
Process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials
Corporate Marketing system
VMS in which a single owner operates the entire marketing channel
Administered Marketing System
VMS that achieves channel coordination when a dominant channel member exercises its power
Contractual Marketing System
VMS that coordinates channel activities through fomral agreements among participants
Retail Cooperative
Group of retailers that establish a shared wholesaling operation to help them compete with chains
