chapter 15
horizontal integration
Absorption into a single firm of several firms involved in the same level of production and sharing resources at that level
intensive distribution
a firm tries to place its products and services in as many outlets as possible
reverse logistics
a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal
administered vertical marketing system
achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership
dual distribution
an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
vertical marketing systems
are professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
channel conflict
arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
disintermediation
conflict arises when a channel member bypasses another member and sells or buys products direct
marketing channel
consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
contractual vertical marketing system
independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone
logistics
involves those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
selective distribution
lies between these two extremes and means that a firm selects a few retailers in a specific geographical area to carry its products
vertical integration
when a manufacturer distributes through its own wholesaler in competition with independent wholesalers and retailers
vendor-managed inventory
whereby the supplier determines the product amount and assortment a customer needs and automatically delivers the appropriate items
direct channel
When a producer and ultimate consumer deal directly with each other
exclusive distribution
only one retailer is a specific geographical area carries the firm's products
supply chain
refers to the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users
multichannel marketing
sometimes called omnichannel marketing, is the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
customer service
the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
corporate vertical marketing system
the combination of successive stages of production and distribution under a single ownership
