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