To Know About Place (MKTG Channels) Flashcards
Why do we need channels
For efficiency
Traditional (conventional) marketing system flow
Producer
Wholesaler
Retailer
Consumer
Vertical marketing system flow
Producer, wholesaler, retailer (all work together)
To deliver value to: consumer
Three types of vertical marketing systems
Corporate
Contractual
Administered
When a corporation owns production and distribution this is
Corporate VMS
When there is coordination and conflict through regular channels this is
Corporate VMS
When individual firms join together through extensive contracts this is
Contractual VMS
The VMS that includes franchise organizations
Contractual VMS
Leadership through the size and power of dominant channel members (channel captains)
Administered VMS
Grocery stores often owning their own bakery, dairy, ice cream plant, food processing plants etc is an example of
Corporate VMS
Luxotica is an umbrella company for many eyewear brands and this is an example of
Corporate VMS
Zara manufacturing on the second floor and selling on the first is an example of what
Corporate VMS
Hertz car rental company having a contract with ford about how many cars they will have on their lot that are manufactured by ford is an example of
Contractual VMS
PandG (Proctor and Gamble) is an example of what VMS
Administered VMS
When one party in the supply chain become captain this is
Administered VMS
Key component: trust
Two or more companies at one level join together to follow a new marketing opportunity
Horizontal marketing system
This marketing system is mutually beneficial
Horizontal marketing System
This marketing system “match supply and demand”
Horizontal marketing System
Subway in Walmart or Starbucks in target are examples of
Horizontal marketing systems
General Mills and Nestle (GM in USA and Nestlé in European counties) is an example of what marketing system and what concept
Horizontal marketing System
Brand equity
Marketing channel decisions involve what 3 things
Marketing channel design Marketing channel management Marketing logistics (physical distribution)
Marketing channel decisions flow
Suppliers Inbound logistics Company Outbound logistics Resellers Consumers
(Reverse logistics involved)
Three types of distribution
Exclusive
Selective
Intensive
Luxury cars are an example of what kind of distribution
Exclusive distribution
Shopping products are an example of what kind of distribution
Selective distribution
Convenience items that you can get anywhere are an example of what kind of distribution
Intensive distribution
Four major logistics functions
Warehousing
Inventory management
Transportation
Logistics information management
Where in the warehouse is the specific product so that we can manage it refers to
Inventory management
Data management refers to
Logistics information management
Eliminating marketing intermediaries from a channel is known as
Disintermediation
People can have a record label or contract with YouTube and do not need an agent; this is a example of
Disintermediation
Key trends in retailing (5)
Growth of non-store retailing (online)
Retail convergence and rise of mega-retailers
Global expansion of major retailers
Growing importance of technology
Retail stores as communities, hangout spaces, importance of experiential retailing
