Chapter 15: Distribution Flashcards
Distribution
Movement of goods and services from producers to customers
Marketing Channel
Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
Direct Channels
No middlemen
Indirect Channel
Middleman/men
Retailers
Indirect Channel
Most common today
Wholesaler to Retailers
Indirect Channel
Classic
Direct to Consumer Marketing Channels
Allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson
Multichannel Marketing
Omnichannel Marketing
Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships who shop and buy in traditional intermediaries and online
Dual Distribution
Involves an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
Strategic Channel Alliances
One firm’s marketing channel is used to sell another firm’s products
Intensive Distribution
In as many outlets as possible
Selective Distribution
A limited number of outlets
Exclusive Distribution
One outlet
Buyer Requirements
-Information
-Convenience
-Variety
-Pre or Post Sale Service
Channel Conflict
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
Vertical Conflict
Occurs among members at different levels of the channel
Horizontal Conflict
Occurs among members at the same level of the channel
First Type of Vertical Conflict
When a channel member bypasses another member and sells or buys products direct (disintermediation)
Second Type of Vertical Conflict
When disagreements occur over how profits margins are distributed among channel members
Third Type of Vertical Conflict
When manufacturers believe wholesalers/retailers are not giving their products adequate attention
Channel Cooperation
Best achieved when all members of channel see themselves as equal components of the same organization
Channel Captain
Dominant and controlling member of a marketing channel; channel member who coordinates, supports, directs other channel members
Channel Influence
-Economic
-Expertise
-Identification
-Legitimate Right
Logistics
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
Firms involved in performing the activities required to create and deliver a product or service to consumers
Reverse Logistics
Reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal
Consumer to Retailer to Producer
Benefits of Reverse Logistics
Ecological and Economic
Why is Reverse Logistics growing in importance?
-Rising prices for raw materials
-Increasing availability of recycling facilities
-Passage of additional antipollution conservation laws
