Chapter 14-Managing Marketing Channels and Supply Chains Flashcards
Marketing Channel
Individuals and firms involved in the process of making a product or service available for use by consumers or industrial users
Direct Channel
A marketing channel where a producer and ultimate consumers deal directly with each other
Indirect Channel
Intermediaries are inserted between the producer and consumers and perform lots of channel functions
Business Distributer
Performs a variety of marketing channel functions, including selling, stocking, delivering a full product assortment, and financing for business goods and services
Electronic Marketing Channels
Employ the Internet to make goods and services available for consumption by consumer or business buyers
Direct Marketing Channels
Allow customers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson
Multichannel distribution
an arrangement whereby a firm reaches buyers by employing two or more different types of marketing channels
Strategic Channel Alliances
a practice where one firms marketing channel is used to sell another firms product
Merchant Wholesalers
Independently owned firms that take title to the merchandise they handle
Manufacturers Agents
work for several producers and carry non-competitive complementary merchandise in an exclusive territory
Selling agents
represent a single producer and are responsible for the entire marketing function of that producer
Brokers
brings buyers and seller together to make sales
Vertical Marketing Systems
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
Franchising
Contract agreement between parent company and individual firm that allows the firm to conduct business under an established name according to specific rules
Channel Conflict
Arises when one channel member believes that a member’s behaviour is preventing them from achieving their goals
Disintermediation
Channel conflict that arises when a channel member bypasses another member and sells or buys products directly
Logistics management
The practice of organizing the cost-effective flow of raw materials, in process inventory, finished goods, and related info from point of origin to point of consumption to satisfy customer requirements
Total logistics cost
Expenses associated with transportation, materials handling and warehousing, inventory, stock outs, order processing, and return goods on handling
Reverse Logistics
A process of reclaiming recyclable and reusable materials, returns and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal
