MAR 3023 Ch 12
Members of the marketing channel perform Many key functions
1) Gathering of information 2) promotion 3) contact 4)matching 5) negotiation 6) physical distribution 7) financing 8) risk taking
Contractual VMS
A Vertical Marketing System in which independent firms at different levels of production and distribution join together through contracts.
Supply chain
Takes a make and sell view of business
Corporate VMS
A Vertical Marketing System that combines successive stages of production and distribution under single ownership. Channel leadership is established through common ownership.
Administered VMS
A Vertical Marketing System that coordinates successive stages of production and distribution through the size and power of one of the parties.
Horizontal marketing system
A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
Indirect marketing channel
A channel containing one or more intermediary levels.
Direct marketing channel
A channel that has no intermediary level.
Conventional distribution channel
A conventional marketing channel that consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits.
Multichannel distribution system
A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments.
Integrated logistics management
A logistics concept that emphasizes teamwork - inside the company and among all the marketing channel organization - to maximize performance of entire distribution system.
Value delivery network
A network comprised of the company suppliers, distributors, and ultimately customers who partner with each other to improve the system in delivering customer value
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.
Distribution channels
Behavioral systems in which people and companies interact to accomplish individual, company, and channel goals
Marketing channel
Consists of a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.
Integrated logistics management
Defined as the logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system.
Distribution center
Designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.
Channel conflict
Disagreements among marketing channel members on goals, roles, and rewards - who should do what and for what rewards
Down stream marketing channels or distribution channels such as wholesalers and retailers
Form a vital link between the firm and its customers
Exclusive distribution
Giving a limited number of dealers the exclusive right to distribute the company's products in their territories.
Intensive distribution
Involves stocking the product in as many outlets as possible.
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.
Intermediaries
Play an important role in matching supply and demand
Demand chain - a linear view of purchase-production-consumption activities
Suggests a sense and respond view of the market - under this view planning starts by identifying needs of a target customers then responding by organizing a chain of resources and activities with the goal of creating customer value
Integrated logistics management
The logistics concept that emphasizes teamwork - both inside the company and among all the marketing channel organization - to maximize the performance of the entire distribution system.
Selective distribution
The use of more than one but fewer than all of the intermediaries who are willing to carry the company's products.