Chapter 15 Vocab Flashcards
Channel Conflict
Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
Customer Service
The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.
Disintermediation
Channel conflict that arises when a channel member bypasses another member and sells or buys products direct.
Dual Distribution
An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
Exclusive Distribution
A level of distribution density whereby only one retailer in a specific geographical area carries the firm’s products.
Intensive Distribution
A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.
Logistics
Those activités that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
Marketing Channel
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.
Multichannel Marketing
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.
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.
Selective Distribution
A level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.
Supply Chain
The various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users.
Total Logistics Cost
The expenses associated with transportation, materials handling and warehousing, inventory, stock outs (being out of inventory), order processing, and return products handling.
Vendor-managed Inventory (VMI)
An inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items.
Vertical Marketing Systems
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
