Lecture 11: Distribution Channels Flashcards

1
Q

distribution

A

activities required to get right product to right place at right time

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2
Q

what does a distribution channel do?

A

transfer the ownership of goods and moves them from point of production to point of consumption (usually to retailers); part of overall supply chain

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3
Q

direct distribution

A

no intermediaries between buyer and seller; avoids cost of using retailers

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4
Q

indirect distribution

A

one or more intermediaries working with manufacturers to provide for consumers (e.g, dealers acting a retailer, wholesalers instead of retailers for chips/candy)

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5
Q

multi-channel distribution

A
  • multiple channels (e.g., retail and own branded stores, direct and catalogues)
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6
Q

push marketing strategy

A

focuses promotional efforts to convince them to carry its product

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7
Q

pull strategy

A

directed at consumers to build demand for products which might convince retailers to carry them

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8
Q

benefit of a wholesaler of retailer

A

each add value

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9
Q

channel conflict

A

when channel members are not in agreement about their goals, roles or rewards

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10
Q

vertical conflict

A

manufacturer with retailer conflict (e.g., Stanley wants Home Depot to carry all its tools and no other, but Home Depot wants to maximize sales in tools category)

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11
Q

horizontal conflict

A

retailer with retailer (e.g., Amazon with Target)

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12
Q

vertical marketing channel

A

members act as a unified system (work together to make distribution system more efficient)

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13
Q

administered vertical marketing system

A

dominant channel member controls channel relationship and operation of the supply chain (e.g., Walmart’s power over its suppliers)

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14
Q

contractual vertical marketing system

A

independent firms at different levels of supply chain join together through contracts e.g., franchising

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15
Q

corporate vertical marketing system

A

parent company has complete control and can dictate the priorities/objectives of marketing channel (e.g., Warby Parker designing glasses iin-house and selling online/own retail stores)

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16
Q

horizontal marketing systems

A

two or more companies at a single level joining together to combine

17
Q

disintermediation

A

when producers/service providers cut out traditional intermediaries or displace resellers

18
Q

market exposure decision

A

of intermediaries
distribution intensity:
- intensive
- selective
- exclusive

19
Q

intensive distribution intensity

A

Usually worth it with convenience products
Want it in as many places as possible
E.g. Coke

20
Q

selective

A

Few distribution channels
E.g., Sony or Sephora
Want product perceived as selective

21
Q

exclusive

A

Exclusive:
Only grant exclusive rights to sell to just one or two retailer
E.g., Porsche