chapter 12 Marketing DSM

Channel level

a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

a 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.

conventional distribution channel

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.

indirect marketing channel

channel containing one or more intermediary levels

direct marketing channel

channel that has no intermediary level

Horizontal marketing system

is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

multichannel distribution system

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

Distribution center

is designed to receive goods from various plants and suppliers, take order, fill them efficiently, and deliver goods to customers as quickly as possible.

Exclusive Distribution

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

intensive distribution

is stocking the product in as many outlets as possible.

Selective Distribution

is the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products.

Integrated logistics management

logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organization- to maximize performance of the entire distribution system.

Supply chain management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

Marketing logistics

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.

marketing channel management

selecting, managing, and motivating individual channel members and evaluating their performance over time

marketing channel

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

Disintermediation

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

Contractual VMS

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

Corporate VMS

vertical marketing system that combines successive stages of production and distribution under single ownership.

Administered VMS

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