MKT 3013 Chapter 10: Marketing Channels: Delivering Customer Value

A vertical marketing system is __________.

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.

__________ uses a single firm sets up two or more marketing channels to reach one or more customer segments.

A multichannel distribution system

A marketing channel is __________.

A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

__________ performs any or all of the functions required to get a client's product to market.

A third-party logistics provider

_________ is the marketing system coordinates successive stages of production and distribution through the size and power of one of the parties.

Administered vertical marketing

A(n) __________ coordinates successive stages of production and distribution through the size and power of one of the parties.

Administered vertical marketing system

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.

When assigning functions to channel​ members, it is important for producers to​ ________.

Assign functions to the channel members that can add the most value for the cost

__________ is a layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer.

Channel level

A(n) __________ consists of independent firms at different levels of production and distribution joining together through contracts.

Contractual vertical marketing system

A(n) __________ is a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

Conventional distribution channel

A(n) __________ is a marketing channel that has no intermediary level.

Direct marketing channel

__________ is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

Disintermediation

__________ is giving a limited number of dealers the exclusive right to distribute the company's products in their territories.

Exclusive distribution

A(n) __________ is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

Horizontal marketing system

Marketing logistics involve __________.

Inbound​ logistics, outbound​ logistics, and reverse logistics

A(n) __________ is a marketing channel containing one or more intermediary levels.

Indirect marketing channel

__________ is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system.

Integrated logistics management

__________ is stocking the product in as many outlets as possible.

Intensive distribution

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

__________ is planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customers' requirements at a profit.

Marketing logistics (physical distribution)

__________ is selecting, managing, and motivating individual channel members and evaluating their performance over time.

Multichannel marketing

Most companies today see their intermediaries as​ first-line customers and focus on​ ________ to forge​ long-term relationships with channel members.

Partner relationship management

__________ is the use of more than one but fewer than all of the intermediaries who are willing carry the company's products.

Selective distribution

__________ is managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

Supply chain management

What are the four major functions of marketing​ logistics?

Warehousing, inventory management, transportation, and logistics information management