Chapter 15 Flashcards
are the venue a company uses to move its products or services to the world
what is this ?
distribution channels
What are the four different ways to reach the consumer ?
- Supplier -> distributor/wholesaler -> retailer -> end consumer
- Supplier -> Jobber/broker -> retailer -> end consumer
- Supplier -> retailer -> end consumer
- Supplier -> suppliers own sales and distribution -> end consumer
Two options on how to choose your distribution channel strategy ?
- direct
- indirect
How to choose whether you will go direct or indirect on choosing how your distribution channel strategy ?
- level of control
- level of cost
- level of coverage
are organizations who buy bulk quantities of product from the manufacturer, break it down into smaller quantities and assortment, and result it to retailers
what is this ?
wholesalers
are intermediaries who leverage their networks to resell products and services for manufacturers
what is this ?
brokers
what benefits do manufacturers get from working with wholesalers or brokers ?
*can sell bulk quantities
*gives access to broad distribution channels logistics
*reduces logistics complexity
what benefits do retailers get from working with wholesalers or brokers ?
*can get smaller and more timely shipments
*can carry less inventory
*purchasing power
how a company designs, manages, and evolves its channel strategy in light of changing competitive and customer environments
what is this ?
channel stewardship
What are the two main types of decisions in channel stewardship ?
- design decisions
- management decisions
can increase the level of control of an organization and decrease markup costs, but it takes significant organizational investment and coordination to make it work
what is this ?
vertical integration
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
what is this ?
marketing channel
when intermediaries buy and sell products or services
what is this ?
transactional function
gathering sorting, and dispersing products
what is this ?
logistical functions
make a transaction easier for buyers
what is this ?
facilitating functions
the producer and the ultimate consumers deal directly with each other
what is this ?
direct channel
intermediaries are inserted between the producer and consumers and perform numerous channel functions
what is this ?
indirect channels
allow consumers to buy products by interacting with various print or electronic media without a face to face meeting with a salesperson
what is this ?
direct to consumer marketing channels
the blending of 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
what is the ?
multichannel marketing or omnichannel marketing
professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
what is this ?
vertical marketing systems
independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone
what is this ?
corporate vertical marketing system
means that a firm tries to place its products and searches in as many outlets as possible
what is this ?
intensive distribution
the extreme opposite of intensive distribution because only one retailer in a specific geographic area carries the firms products
what is this ?
exclusive distribution
lies between these two extremes and means that a firm selects a few retailers in a specific geographic are to carry its products
what is this ?
selective distribution
arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
what is this ?
channel conflict
a source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct
what is this ?
disintermediation
occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers or two or more wholesalers that handle the same manufacturers brands
what is this ?
horizontal conflict
a channel member that coordinates, directs, and supports other channel members
what is this ?
channel captain
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
what is this ?
logistics
various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users
what is this ?
supply chain
the 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
what is this ?
supply chain managment
What are the 4 buyer requirements ?
- information
- convenience
- variety
- pre or postal services
occurs between different levels in a marketing channel
what is this ?
vertical conflict
