Chapter 12: Marketing Channels and Distribution
What is an indirect marketing channel?
A channel containing one or more intermediaries.
What is a conventional distribution channel?
A channel with independent producers, wholesalers, and retailers each seeking individual profits.
What is a direct marketing channel?
A channel with no intermediaries between producer and consumer.
What is a marketing channel?
A set of interdependent organizations that help make a product available to customers.
What is a franchise organization?
A type of contractual VMS where a franchisor links several stages in the production-distribution process.
What is a vertical marketing system (VMS)?
A unified system where producers, wholesalers, and retailers act as one.
What is horizontal conflict?
Conflict among firms at the same level (e.g., two retailers).
What is vertical conflict?
Conflict between different levels of the same channel (e.g., manufacturer vs. retailer).
What are the three types of VMS?
Corporate, contractual, and administered.
What is disintermediation?
Cutting out intermediaries and going directly to consumers.
What is channel conflict?
Disagreement among channel members over goals or roles.
What are upstream partners?
Firms that supply raw materials, components, and other inputs.
What is exclusive distribution?
Giving limited dealers exclusive rights to sell a product.
What are the key functions of channel members?
Information, promotion, matching, negotiation, and physical distribution.
What are the three types of distribution intensity?
Intensive, selective, and exclusive.
What is marketing logistics (physical distribution)?
Planning and controlling the physical flow of goods from origin to consumption.
What are key responsibilities of channel members?
Pricing, territory rights, and sales conditions.
What are downstream partners?
Retailers, wholesalers, and distributors closer to the customer.
What is intensive distribution?
Stocking products in as many outlets as possible.
What is the difference between the supply chain and the demand chain?
Supply chain focuses on "make and sell," while demand chain starts with "sense and respond" to customer needs.
What is a value delivery network?
The company, suppliers, distributors, and customers working together to improve performance.
What is a supply chain?
The system of organizations and activities involved in producing and delivering a product.
What is a horizontal marketing system?
Two or more companies at one level join forces to pursue a marketing opportunity.
What is selective distribution?
Using more than one, but fewer than all, intermediaries willing to carry the product.
What are the main logistics functions?
Warehousing, inventory management, transportation, and logistics information management.
What is a multichannel distribution system?
When a company uses multiple channels to reach customer segments.
