Chapter 15 Flashcards
Marketing Channel
Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumer or industrial users
Agent or Broker
Any intermediary with legal authority to act on behalf of the manufactuer
Wholesaler
An intermediary who sells to other intermediaries, usually to retailers; usually applies to consumer markets
Transactional Functions
When intermediaries buy and sell products or services
Logistical Functions
Gathering, sorting, and dispersing products
Facilitating Functions
Make a transaction easier for buyers
Direct Channel
Directly from Producer to Consumer
Indirect Channel
Intermediaries are inserted between the producer and consumer and perform numerous channel functions
Direct to Consumer Marketing Channels
Allow consumers to buy products by interacting with various print or electronic media without a face-to-face meeting with a salesperson
Multichannel / Omnichannel marketing
Blending different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
Vertical Marketing Systems
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
Corporate vertical marketing system
The combination of successive stages of production and distribution under a single owndership
Intensive Distribution
A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible
Exclusive Distrubtion
A level of distribution density whereby only one retailer in a specific geographic area carries the firm’s products
Selective Distribution
A level of distribution density whereby a firm selects a few retailers in a specific geographic area to carry its products
Buyer Requirements
Information, convenience, variety, pre or post-sale services
Channel Conflict
When one channel member believes another is engaged in behavior that prevents it from achieving its goals
Vertical Marketing System
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
Vertical Conflict
Occurs between different levels in a marketing channel (manufacturer and wholesaler)
Disintermediation
A source of channel conflict that occurs when a channel member bypasses another member and sells or buys product direct
Horizontal Conflict
Occurs between intermediaries at the same level in a marketing channel (between two retailers)
Channel Captain
A channel member that coordinates, directs, and supports other channel members
Logistics
Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Supply Chain
The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users
Supply Chain Management
Integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers
