MARKETING CHANNELS AND INTERMEDIARIES Flashcards
The simplest and shortest marketing channel is a direct channel.
It carries goods directly from a producer to the business purchaser or ultimate user.
Direct Selling
Intermediaries are middlemen who connect different parties involved in a transaction.
They play a crucial role in facilitating the flow of goods, services, or information between producers and consumers (in the case of consumer goods) or producers and other businesses (in the case of business-to-business transactions).
Selling through Intermediaries
Network that moves products to a firm’s target market through more than one marketing channel.
Dual Distribution
Channel designed to return goods to their producers.
Reverse Channel
FIVE CHANNELS OF MARKETING INTERMEDIARIES
- Producer to Wholesaler to Retailer to Consumer
- Producer to Wholesaler to Business User
- Producer to Agent to Wholesaler to Retailer to Consumer
- Producer to Agent to Wholesaler to Business User
- Producer to Agent to Business User
arises from disagreements among channel members or marketing intermediaries.
Horizontal Conflict
Frequent and severe conflicts can arise due to various reasons, including retailers developing private brands, producers establishing their own stores, and producers bypassing intermediaries.
Vertical Conflict
Gray goods, produced for overseas markets at reduced prices, enter
countries channels through unauthorized foreign distributors.
Gray Market
A set of processes and practices that work together to achieve a company’ s marketing goals.
Corporate marketing system
is a type of vertical marketing system (VMS) where one powerful player in the supply chain takes charge.
Administered marketing system
is a type of distribution channel where
independent businesses at different levels (e.g., manufacturer, wholesaler, retailer) collaborate through formal agreements to achieve common marketing goals.
Contractual marketing system
