Marketing chapter 12

Marketing/Distribution Channel

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

Tying arguments

agreements where the dealer must take most or all of the line

Marketing channel design

analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives.

Value Delivery Network

composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system.

Nature and Importance of Marketing Logistics

involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet consumer requirements at a profit.

Producer --> Wholesaler --> Retailer --> Consumer

Conventional Distribution Channel

Downstream Partners

the marketing channels or distribution channels that look toward the customer, including retailers and wholesalers

Exclusive Distribution

when the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories.

Exclusive Dealing

when the seller requires that the exclusive distribution sellers not handle competitor's products.

Exclusive territorial agreements

where producer or seller limit territory.

Marketing channels consist of:

firms that have partnered for their common good with each member playing a specialized role.

Upstream Partners

firms that supply raw materials, components, parts, information, finances, and expertise needed to create a product or service.