Marketing Channels Flashcards
Sustainable competitive advantage
Place (distribution)
Potential for gaining competitive advantage because place is more difficult for competitors to copy
Disintermediation
reduction of number of intermediaries
Reintermediation
evolution of a new type of intermediary
Marketing Channel
external contractual organization that management operates to achieve its distribution objectives (slide 8, ch1)
Channel Manager
anyone in a firm or organization who is involved in marketing channel decision making
Channel Strategy
concerned with entire process of starting and operating contactual organization
Logistics Management
Focused specifically on providing product availability at appropriate time and place
Specialization & Division of Labor
Distribution Tasks- Distributed inter organizationally
Production- distributed intraorganizationally
Contactual Efficiency
Negotiation effort in dollar terms relative to achieving the distribution objective
Channel Structure
the group of channel members to which a set of distribution tasks has been allocated
Anchillary Structure
The group of institution that assist channel members in performing distribution tasks
Producers and Manufacturers
- Lack expertise
- lack economies of scale
inter organizational social system
- generated by any process of interaction on sociocultural level
- between two or more actors
- actor is individual or collectivity
Channel Conflict
Cause: when a channel member perceives that another members actions impeded the attainment of his or her goals
Power (in the marketing channel)
a capacity of a particular channel member to control or influence the behavior of another channel member
power bases
reward power coercive power legitimate power referent power expert power
Roles
a set of prescriptions defining what the behavior of a position member should be
Communication Process
- differences in goals between manufacturers & retailers
- differences in the kinds of language they use to convey information
- perceptual differences among members
- secretive behavior
- inadequate frequency of communication
Channel Management
The administration of existing channels to secure the cooperation of channel member in achieving the firms distribution objectives
Channel Strategy
The board principles by which the firm expects to achieve its distribution objectives for its target market
Channel Design
Decisions involving the development of new marketing channels either where none had previously existed or to the modification of existing channels
Channel Level
- Range from two to 5 or more
- number of alternatives is limited to two or three choices
- limitation result from the following factors
- particular industry practices
- nature& size of the market
- availability of intermediaries
Channel Intensity
Relationship between the intensity of distribution
dimension & number of retail intermediaries used in a
given market area
Market Geography
refers to the geographical extent of markets and where they are located
Market Size
refers to the number of buyers or potential buyers (consumer or industrial) in a given market
Market Density
refers to the numbers of buyers or potential buyers per unit of geographical area
Efficient Congestion
Congested (high-density) markets can promote efficiency in the performance of several basic distribution tasks, particularly those of transportation, storage, communication, and negotiation.
Market Behavior
- when the market buys
- where the market buys
- how the market buys
- who Buys
