Marketing channels Flashcards
All parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
channel members (Intermediaries, resellers, middlemen)
A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
Marketing channel (channel of distribution)
The difference between the amount of product produced and the amount an end user wants to buy
Discrepancy of quantity
The lack of all the items a customer needs to receive full satisfaction from a product or products
Discrepancy of assortment
A situation that occurs when a product is produced but a customer is not ready to buy it
Temporal discrepancy
The difference between the location of a producer and the location of widely scattered markets
Spatial discrepancy
A channel intermediary that sells mainly to consumers
Retailer
An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers an that receives and takes Tito to goods, stores them in its own warehouses, and later ships them
Merchant wholesaler
Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
Agents and brokers
Functions that involve contacting and communicating with prospective buyers to make them aware of existing products and explain their features, advantages, and benefits
Transactional functions
The efficient and cost-effective forward and reverse flow and storage of goods, services, and related information into, through, and out of channel member companies
Logistics
Three maketing channel functions performed by intermediaries
Transactional functions
Logistical functions
Facilitating functions
A distribution channel in which producers sell directly to consumers
Direct channel
The use of two or more channels to distribute the same product to target markets
Dual distribution
Multiple distribution
A cooperative agreement between business firms to use the others already established distribution channel
Strategic channel alliance
Three options for intensity of distribution
Intensive distribution
Selective distribution
Exclusive distribution
A form of distribution aimed at having a product available in every outlet where regret customers might want to buy it
Intensive distribution
A form of distribution achieved by screening dealers to eliminate all but a few in any single area
Selective distribution
A form of distribution that established one or a few dealers within a given area
Exclusive distribution
A relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
Arms length relationship
A relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
Cooperative relationship
A relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and interfirm commitment
Integrated relationship
The capacity of a particular marketing channel member to control or influence the behavior of other channel members
Channel power
A situation that occurs when one marketing channel member intentionally affects another members behavior
Channel control
A member of a marketing channel that exercises authority and power over the activities of other channel members
Channel leader
Channel captain
A clash of goals and methods between distribution channel members
Channel conflict
A channel conflict that occurs among members on the same level
Horizontal conflict
A channel conflict that occurs between different levels in a marketing channel, most typically between the menu factored and The wholesaler or between the manufacturer and retailer
Vertical conflict
The joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
Channel partnering (channel cooperation)
The fastest growing part of our economy is the
Service sector
