Final exam Marketing 2 Flashcards
What are Channel Conflicts?
Disagreements or clashes between members of a distribution channel.
What is Horizontal Conflict?
Conflict between businesses at the same level of the distribution channel.
What is an example of Horizontal Conflict?
Two retailers competing over prices or customers.
What is Vertical Conflict?
Conflict between different levels of the same distribution channel.
What is an example of Vertical Conflict?
A hotel and an online travel agency disagreeing about commission rates.
Define Vertical Marketing System (VMS).
A distribution channel structure where the producer, wholesalers, and retailers work together as a unified system.
What are the main goals of a VMS?
- Better coordination between supply chain levels
- Fewer conflicts
- More efficient operations
What is Corporate VMS?
A type of VMS where one company owns all levels of the distribution channel.
What is an example of Corporate VMS?
Zara owning production, distribution, and retail stores.
What is Contractual VMS?
Independent firms at different levels join through contracts.
What is an example of Contractual VMS?
Franchising like McDonald’s.
What is Administered VMS?
One dominant player controls the others through influence.
What is an example of Administered VMS?
Walmart controlling other retailers.
What are the types of Distribution Intensity Strategies?
- Intensive Distribution
- Selective Distribution
- Exclusive Distribution
What is the goal of Intensive Distribution?
Place the product in as many outlets as possible.
What types of products typically use Intensive Distribution?
Convenience goods like snacks and soft drinks.
What is the Marketing Logistics Goal?
Deliver the right product to the right customer at the right place and time efficiently.
List key activities in Marketing Logistics.
- Warehousing
- Inventory Management
- Transportation
- Logistics Information Management
Define a Product Line.
A group of related products offered by a company.
What is an example of a Product Line?
Colgate’s toothpaste line includes Colgate Total, Colgate Whitening, Colgate Herbal.
Define Product Mix.
All product lines and items a company offers.
What are the dimensions of Product Mix?
- Width
- Length
- Depth
What does Width in Product Mix refer to?
The number of product lines a company offers.
What does Length in Product Mix refer to?
The total number of items in all product lines.
