Chapter 12: Marketing Channels: Delivering Customer Value

Question 0

Marketing Channel (Distribution Channel)

Answer 0

A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

Question 1

Value Delivery Network

Answer 1

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.

Question 2

Channel Level

Answer 2

A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

Question 3

Direct Marketing Channel

Answer 3

A marketing channel that has no intermediary levels.

Question 4

Indirect Marketing Channel

Answer 4

A marketing channel containing one or more intermediary levels.

Question 5

Channel Conflict

Answer 5

Disagreement among marketing channel members on goals, roles and rewards - who should do what and for what rewards

Question 6

Conventional Distribution Channel

Answer 6

A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole.

Question 7

Vertical Marketing System (VMS)

Answer 7

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.

Question 8

Corporate VMS

Answer 8

A vertical marketing system that combines successive stages of production and distribution under single ownership; channel leadership is established through common ownership.

Question 9

Contractional VMS

Answer 9

A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts.

Question 10

Franchise Organization

Answer 10

A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production - distribution process.

Question 11

Administered VMS

Answer 11

A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.

Question 12

Horizontal Marketing System

Answer 12

A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

Question 13

Multichannel Distribution System

Answer 13

A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.

Question 14

Disintermediation

Answer 14

The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

Question 15

Marketing Channel Design

Answer 15

Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.

Question 16

Intensive Distribution

Answer 16

Stocking the product in as many outlets as possible.

Question 17

Exclusive Distribution

Answer 17

Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.

Question 18

Selective Distribution

Answer 18

The use of more than one but fewer than all the intermediaries who are willing to carry the company’s products.

Question 19

Marketing Channel Management

Answer 19

Selecting, managing, and motivating, individual channel members and evaluating their performance over time.

Question 20

Marketing Logistics (or Physical Distribution)

Answer 20

Planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Question 21

Supply Chain Management

Answer 21

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

Question 22

Distribution Centre

Answer 22

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.

Question 23

Intermodal Transportation

Answer 23

Combining two or more modes of transportation.

Question 24

Integrated Logistics Managment

Answer 24

The logistics concept that emphasizes teamwork - both inside the company and among all of the marketing channel organizations - to maximize the performance of the entire distribution system.

Question 25

Third-Party Logistics (3PL) Provider

Answer 25

An independent logistics provider that performs any or all of the functions required to get a client’s product to the market.