Chapter 12 Flashcards
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.
value delivery network
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.
Marketing channel (distribution channel)
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 levels.
indirect marketing channel
Disagreements among marketing channel members on goals, roles, and rewards—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 maximize its own profits, perhaps even at the expense of profits for the system as a whole.
Conventional distribution channel
A 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.
Contractual VMS
A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process.
Franchise organization
A vertical marketing system that coordinates successive stages of production and distribution 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 analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.
Marketing channel design
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 that are willing to carry the company’s products.
selective distribution
Selecting, managing, and motivating individual channel members and evaluating their performance over time.
marketing channel management
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 at a profit.
Marketing logistics (physical distribution)
Managing upstream and downstream value-added flows of materials, 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 them efficiently, and deliver goods to customers as quickly as possible.
distribution center
Combining two or more modes of transportation.
Multimodal transportation
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.
Integrated logistics management
An independent logistics provider that performs any or all of the functions required to get a client’s product to market.
Third-party logistics (3PL) provider
