Chapter 14 Flashcards
Marketing Channel (channel of distribution)
set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
Channel Members
all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
form utility
the elements of the composition and appearance of a product that make it desirable
time utility
the increase in customer satisfaction gained by making a good or service available at the appropriate time
place utility
the usefulness of a good or service as a function of the location at which it is made available
exchange utility
the increased value of a product that is created as its ownership transferred
retailer
a channel intermediary that sells mainly to consumers
merchant wholesaler
institution that buys goods from manufactures and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to good, stores them in its own warehouses, and later ships them
Agents and brokers
wholesaling intermediaries who do not take title to a product but facilitate its sales from producer to end user by representing retailers, wholesalers, or manufacturers.
Direct Channel
a distribution channel in which producers sell directly to consumers
Dual distribution (multiple distribution)
the use of two or more channels to distribute the same product to target markets
nontraditional channels
nonphysical (often electronic) channels that facilitate the unique market access or products and services
strategic channel alliance
a cooperative agreement between business firms to use the others already established distribution
intensive distribution
a form of distribution aimed at having a product available in every outlet where target customers
selective distribution
a form of distribution achieved by screening dealers to eliminate all but a few in any single area
exclusive distribution
a from of distribution that establishes one or a few dealers within a given area
arms length relationship
relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions whi no or low expectation of future interaction or service
cooperative relationship
relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
integrated relationship
relationship between companies that is tightly connected, with linked processes across and between form boundaries and high levels of trust and interfirm commitment
co-opetition
a relationship that mixes elements of cooperation and competition between two partners
channel power
the capacity of a particular marketing channel member to control or influence the behavior or other channel members
channel control
situation that occurs when one marketing channel member intentionally affects another members behavior
channel captain
a member of a marketing channel that exercises authority and power over the activities of other channel members
channel conflict
a clash of goals and methods between distribution channel members
horizontal conflict
a channel conflict that occurs among channel members on the same level
vertical conflict
a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer
channel partnering
the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
retailing
all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
independent retailer
retailer owned by a single person or partnership and not operated as part of a larger retail institution
chain store
a store that is part of group of the same stores owned and operated by a single organization
franchise
a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee
gross margin
the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted
department store
a store housing several departments under one roof
specialty store
a retail store specializing in a given type of merchandise
supermarket
a large, departmentalized, self-service retailer that specializes in food and some nonfood items
scrambled merchandising
the tendency to offer a wide variety of nontraditional goods and services under one roof
drugstore
a retail store that stocks pharmacy-related products and services as its main draw.
convenience store
a miniature supermarket, carrying only a limited line of high-turnover convenience goods
Discount store
a retailer that competes on the basis of low prices, high turnover, and high volume
specialty discount store
a retail store that offers a nearly complete selection of single-line merchandise and uses self service, discount prices, high volume, and high turnover
off-price retailer
a retailer that sells at prices 25 percent or more below traditional department store prices because it pays cash for its stock and usually doesn’t ask for return privileges
factory outlet
an off-price retailer that is owned and operated by a manufacturer
used good retailer
a retailer whereby items purchased from one of the other types of retailers are resold to different customers
non-store retailing
shopping without visiting a store
automatic vending
the use of machines to offer goods for sale
direct retailing
the selling of products by representatives who work door-to-door. office-to-office, or at home sales parties
direct marketing (direct response marketing)
techniques used to get consumers to make purchases from their home, office, or other nonretail setting
telemarketing
the use of the telephone to sell directly to consumers
shop-at-home television network
a specialized form of direct response marketing whereby television shows display merchandise, with the retail price, to home views
online retailing (e-tailing)
a type of shopping available to consumers with personal computers and access to the internet
franchisor
the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its products
franchisee
an individual or business that is granted the right to sell another party’s product
retailing mix
a combination of the six p’s - product, place, promotion, price, presentation, and personnel - to sell goods and services to the ultimate consumer
destination store
a store that consumers purposely plan to visit
atmosphere
the overall impression conveyed by a stores physical layout, décor, and surroundings
layout
the internal design and configuration of a stores fixtures and products
data mining
the process of discovering patterns in large data sets of the purposes of extracting knowledge and understanding human behavior
m-commerce
the ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services
