Marketing Terms Chapter 10 - Marketing Channels

vertical marketing systems

a channel structure in which producers, wholesalers, and retailers act as a unified system

Franchise organization

a contractual VMS in which a channel member called a franchisor links several stages int he production-distribution process

channel level

a layer of intermediaries that performs some work in bringing the product closer to the buyer

contractual VMS

a vertical marketing system in which independent firms at different levels of production join together through contracts

corporate VMS

a vertical marketing system that combines successive stages of production and distribution under single ownership. In a corporate VMS, one member of the channel owns the others, ex: the retailer owns the production and wholesale.

administered VMS

a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

third party logistics provider

an independent logistics provider that performs any or all of the functions required to get a client's product to market

how a distributor makes it easier for consumers

chart on page 334

integrated logistics management

concept that emphasized teamwork to maximize performance of the entire distribution system

disintermediation

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

market channel design

designing effective marketing channels by analyzing customer needs, analyzing alternatives, and random other shit that's not important

channel conflict

disagreements among marketing channel members on goals, roles, and rewards

exclusive distribution

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

how channel members add value

information, promotion, contact, matching, negotiation (pg. 335), distribution, financing, risk taking

value delivery network

made up of the company, suppliers, distributors, and the customers

multichannel distribution system

one in which a single firm sets up two or more marketing channels to reach one or more customer segments

conventional distribution channel

one that consists of one or more independent producers, wholesalers, and retailers

direct marketing channel

one that has no intermediary levels

indirect marketing channels

one that has one or more intermediary levels

marketing logistics (physical distribution)

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

3 types of franchises

see page 339

marketing channel management

selecting, managing, and motivating channel members and evaluating their performance

marketing channel (distribution channel)

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

intensive distribution

stocking a product in as many outlets as possible

selective distribution

the use of more than one but fewer than all of the intermediaries that are willing to carry a company's products

multimodal transportation

the use of two or more modes of transportation to ship products. Ex: using boats and trucks

evaluating channel alternatives

they should use economic, control, and adaptability criteria (page 345)

horizontal marketing system

two or more companies at one level join together to follow a new marketing opportunity. Example: a soda company and a chips company join together to maximize their marketing opportunity.

supply chain management

what it sounds like. does this differ from logistics though?

distribution center

what it sounds like. think the example of the staples factory where they have robots do everything