Ch. 12: Marketing Channels/Distribution

disintermediation

-(changing channel organization) -the cutting out of market channel intermediaries by products or service producers of the displacement of traditional resellers by radical new types of intermediaries -Channel conflict that arises when a channel member bypasses another member and sells or buys products direct

questions

-Explain why companies use marketing channels and discuss the functions these channels perform -Identify the major alternatives open to a company -discuss the nature and importance of marketing logistics and integrated supply chain management

supply chain management

-a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value -managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

vertical marketing system

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.

Exclusive distribution

Giving a limited number of dealers the exclusive right to distribute the company's product in their territories -1 type of distribution

logistics

Planning, implementing, and controlling the physical flow of materials, final goods, and related info among suppliers, the company, resellers and final consumers -Customer centered logistics -goal: deliver a targeted level of customer service at the least cost -Logistic functions: warehousing, inventory management, transportation, logistics information management -integrated logistics management

Marketing channel (distribution channels)

Set of interdependent organizations that help make a product or service available for use by consumer or business later Key functions by channel member: -help complete transaction -help fulfill completed transactions Channel members add value

omnichannel

a multichannel selling approach where a single retailer provides a seamless customer shopping experience from desktop computer, mobile device, telephone, or brick-and-mortar store -true continuity of customer's experience -perceiving and understanding all things -well integrated shopping experience -all campaigns must work together across all platforms (seamless experience, consistent and coherent message, aligned: messages, goals, objectives, design) -Ex: Disney, starbucks

integrated logistics management

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

use of more than one but fewer than all of the intermediaries willing to carry the companies product -1 type of distribution

Upstream

include raw material suppliers, components, parts, information, finances, and expertise to create a product or service

Downstream

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

customer centered logistics

starts with the marketplace and works backward to the factory or even to sources of supply -outbound-moving products from resellers to customers -inbound - moving products and materials from suppliers to factory -reverse- reusing, recycling, refurbishing, disposing of broken, unwanted, excess products returned by consumers or resellers

Intensive

stocking the product in as many outlets as possible -1 type of distribution