MKTG 301 Chapter 10

contractual vertical marketing system

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

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.

administered vertical marketing system

coordinates successive stages of production and distribution through the size and power of one of the parties.

conventional distribution channel

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.

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.

indirect marketing channel

is a marketing channel containing one or more intermediary levels.

direct marketing channel

is a marketing channel that has no intermediary level.

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.

third-party logistics

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

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

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.

vertical marketing system

s 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.

multichannel distribution system

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