Exam 2 - Marketing Channels Flashcards
- Consumer Markets
Consumer When the product goes directly to the consumers Direct marketing Agent Works like wholesalers They don’t take titles to question Jobber Wholesalers Direct distribution No middleman Indirect distribution Middleman
Business Markets
More concentrated
Has a direct channel internet, phone, etc
Usually a sales force calling the customers
Operates similar as the consumer distribution channel
Except: no more retailers (Everything is at the wholesaler level)
Channels are shorter and simpler for business
Concentrated markets not selling to consumers but to businesses
Businesses would mix and match
Channels used for certain customers
1.Direct marketing for key accounts
2.Wholesalers for other accounts, and etc..
- Middleman terminology (specific)
Intermediaries
Wholesalers originally sell to retailers (been replaced by the WalMart channel where wholesalers buy direct from manufacturers and sell directly to consumers) aka middleman or intermediary
- Channel flows
Product Title Negotiation Promotion Information
Title
Title to the goods (Who as inventory on their books)
Negotiation
Buying and selling
Promotion
Anything marketers do
Intensive
Convenience goods
Toothpaste
Selective
Shopping goods
Clothes
Average car
Exclusive
Exclusive goods
expensive car
- VMS: three types
- Administred
- Contractual
- Corporate
Administered
weak, informal vertical marketing system
Weakest system
Use to incentive to motivate the channel
1. Don’t change any of the organizational structure
Contractual
Keep in control of the contract Several types of contractual Fastest growing part of vertical Sometimes legal issues franchises, retailer co-op
Corporate
very strong and formal vertical marketing system
- A change in ownership
a. A manufacturer owning a retailer
b. Buy out stores, buy stocks, buy debt
- Contractual VMS: three types
franchises, retailer co-op Keep in control of the contract Several types of contractual Fastest growing part of vertical Sometimes legal issues
