MKTG 301 (Clubb) Chapter 10: Marketing Channels: Delivering Customer Value

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

A marketing channel 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.

A vertical marketing system is __________.

Contractual vertical marketing system

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

Administered vertical marketing system

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

Horizontal marketing system

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

Conventional distribution channel

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.

Indirect marketing channel

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

Direct marketing channel

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

Inbound​ logistics, outbound​ logistics, and reverse logistics

Marketing logistics involve __________.

Partner relationship management

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

Warehousing, inventory management, transportation, and logistics information management

What are the four major functions of marketing​ logistics?

Analyzing consumer​ needs, setting channel​ objectives, identifying major channel​ alternatives, and evaluating the alternatives.

What are the four steps to designing marketing channels in their correct​ order?

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

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

Intensive, selective, and exclusive

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.

Administered vertical marketing

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

Channel level

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

Exclusive distribution

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

Supply chain management

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

Marketing logistics (physical distribution)

__________ 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.

Multichannel marketing

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

Intensive distribution

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

Disintermediation

__________ 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.

Integrated logistics management

__________ 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.

Selective distribution

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

A third-party logistics provider

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

A multichannel distribution system

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