Distribution - Chapter 17 Flashcards
administered vertical marketing system
a channel situation where a manufacturer that dominates a market through its size and strong brands may exercise considerable power over intermediaries even though they are independent
channel integration
the way in which the players in the channel are linked
channel intermediaries
organisations that facilitate the distribution of products to customers
channel of distribution
the means by which products are moved from the producer to the ultimate consumer
channel strategy
the selection of the most effective distribution channel, the most appropriate level of distribution intensity and the degree of channel integration
contractual vertical marketing system
a channel situation where an organisation gains control of distribution through ownership
disintermediation
the removal of channel partners by bypassing intermediaries and going directly from manufacturer to consumer via the internet
exclusive distribution
an extreme form of selective distribution where only one wholesaler, retailer or industrial distributor is used in a geographical area to sell the products of a supplier
franchise
a legal contract in which a producer and channel intermediaries agree each others rights and obligations; usually the intermediary receives marketing, managerial, technical and financial services in return for a fee
intensive distribution
aim of this is to provide saturation coverage of the market by using all available outlets
reintermediation
the introduction of new forms of channel intermediary that provides services which link members of the supply chain e.g. web service providers and retailer
retail positioning
the choice of target market and differential advantage for a retail outlet
safety (buffer) stock
stocks or inventory held to cover against uncertainty about resupply lead times
selective distribution
the use of a limited number of outlets in a geographical area to sell the products of a supplier
