BUAD 332 Chapter 10
Horizontal marketing system
2 or more companies join at one level to follow new marketing opportunity
Vertical Marketing system
A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.
What are the four steps to designing marketing channels in their correct order?
Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives.
______________ begins with assessing customer channel service needs and company channel objectives and constraints.
Channel design
Set of interdependent organizations involved in process of making product/service available for use or consumption by consumer or behavior business.
Distribution channel
Vertical conflict
among firms at different level of same channel
Horizontal conflict
among firms at same level of the channel
Marketing logistics (or physical distribution) is ______________.
an area of potentially high cost-savings and improved customer satisfaction
Distribution channels are complex ______________ in which people and companies interact to accomplish individual, company, and channel goals.
behavioral systems
A company should forge strong partnerships with channel members to create a marketing system that meets the needs of _____________.
both the manufacturer and the partners
How do marketing channels complete transactions?
by offering physical distribution, financing and risk taking
Marketing channels help ______ transactions and spread __________ ______ about an offer.
complete, persuasive communications
Channel members perform _________ work, ___________ work, and ___________.
contact, matching and negotiation
Distribution channels are intermediaries that help the firm achieve more through their _____________, _________, __________, and _____________________.
contacts, experience, specialization, scale of operation
To ensure channel success, all channel firms should understand and accept their roles, _________________.
coordinate their goals and activities and cooperate to attain overall channel goals
Distribution channels match supply fro producers to ___________ from consumers
demand
When selecting intermediaries, the company should evaluate each channel member's years in business, other lines carried, location, _______________________.
growth and profit record, cooperativeness, and reputation
The ____________ concept recognizes that improved logistics requires teamwork in the form of close working relationships across functional areas inside the company and across various organizations in the supply chain.
integrated supply chain management
Companies can achieve ______________ harmony among functions by creating cross-functional logistics teams, integrative supply manager positions, and senior-level logistics executive positions with cross-functional authority.
logistics
Exclusive distribution
not easy to access
In managing its channels, a company must convince suppliers and distributors that they can succeed better by working together as _______________.
part of a cohesive value delivery system
Most companies see their intermediaries as first-line customers and partners. They practice strong _____________________ management to forge long-term partnerships with channel members.
partner relationship
Most companies today see their intermediaries as first-line customers and focus on ________ to forge long-term relationships with channel members.
partner relationship management
Disintermediation
producers selling straight to final buyers
New types of channel organizations have appeared that _________________.
provide stronger leadership and improved performance
Hybrid Marketing system
single firm sets up 2 or more marketing channels to reach 1 or more customer segments
The second step of channel design is the identification of the major channel alternatives in terms of the _________________.
types of intermediaries, number of intermediaries, and the channel responsibilities of each
A _______ consists of producers, wholesalers, and retailers acting as a unified system.
vertical marketing system
Intensive distribution
widely distributed, easy to access
What are the four major functions of marketing logistics?
Warehousing, inventory management, transportation, and logistics information management
Channel alternatives must be evaluated according to ________________criteria.
economic, control and adaptive
When designing marketing channels, companies must determine the number of channel members to use at each level. The three strategies that are available to do this are ________ distribution.
intensive, selective, and exclusive
When channel members cooperate, they can more effectively _________________.
sense, serve, and satisfy the target market
Marketing channels face continuous and sometimes dramatic change. Three of the most important trends are the growth of ___________________________ marketing systems.
vertical, horizontal and multichannel
