Chapter 9 - Marketing channels: delivery customer value Flashcards
What is a value-delivery network?
Network composed of company, suppliers, distributors and customers
Partner with each other
Improve performance of entire system in delivery customer value
What is a channel level?
Layer of intermediaries that performs some work in bringing the product and its ownership closer to final buyer
What is a direct marketing channel?
Marketing channel that has no intermediary level
What is conventional distribution channel?
Channel consisting of one or more independent producers, wholesalers and retailers
Each a separate business seeking to maximise its own profits even at expense of profits for system as a whole
What is a vertical marketing system (VMS)?
Distribution channel structure
Producers, wholesalers and retailers act as a unified system
One channel members own the others, has contracts with them or wields so much power that they all cooperate
What is a corporate VMS?
VMS that combines successive stages of production and distribution under single ownership
Channel leadership established through common ownership
What is a contractual VMS?
VMS in which independent firms at different levels of production and distribution join together through contracts
What is a franchise organisation?
Contractual VMS
Channel member called a franchisor links several stages in the production-distribution process
Name three types of distribution
Intensive
Exclusive
Selective
What is intensive distribution?
Stocking product in as many outlets as possible
Exclusive distribution
Giving limited number of dealers excuse right to distribute company’s products in their territories
Selective distribution
Use of more than one but fewer than all intermediaries who are willing to carry products
