Marketing Terms Chapter 10 - Marketing Channels
vertical marketing systems
a channel structure in which producers, wholesalers, and retailers act as a unified system
Franchise organization
a contractual VMS in which a channel member called a franchisor links several stages int he production-distribution process
channel level
a layer of intermediaries that performs some work in bringing the product closer to the buyer
contractual VMS
a vertical marketing system in which independent firms at different levels of production join together through contracts
corporate VMS
a vertical marketing system that combines successive stages of production and distribution under single ownership. In a corporate VMS, one member of the channel owns the others, ex: the retailer owns the production and wholesale.
administered VMS
a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties
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
how a distributor makes it easier for consumers
chart on page 334
integrated logistics management
concept that emphasized teamwork to maximize performance of the entire distribution system
disintermediation
cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries
market channel design
designing effective marketing channels by analyzing customer needs, analyzing alternatives, and random other shit that's not important
channel conflict
disagreements among marketing channel members on goals, roles, and rewards
exclusive distribution
giving a limited number of dealers the exclusive right to distribute the company's products in their territories
how channel members add value
information, promotion, contact, matching, negotiation (pg. 335), distribution, financing, risk taking
value delivery network
made up of the company, suppliers, distributors, and the customers
multichannel distribution system
one in which a single firm sets up two or more marketing channels to reach one or more customer segments
conventional distribution channel
one that consists of one or more independent producers, wholesalers, and retailers
direct marketing channel
one that has no intermediary levels
indirect marketing channels
one that has one or more intermediary levels
marketing logistics (physical distribution)
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
3 types of franchises
see page 339
marketing channel management
selecting, managing, and motivating channel members and evaluating their performance
marketing channel (distribution channel)
set of interdependent organizations that help make a product available for use or consumption by the consumer or business set
intensive distribution
stocking a product in as many outlets as possible
selective distribution
the use of more than one but fewer than all of the intermediaries that are willing to carry a company's products
multimodal transportation
the use of two or more modes of transportation to ship products. Ex: using boats and trucks
evaluating channel alternatives
they should use economic, control, and adaptability criteria (page 345)
horizontal marketing system
two or more companies at one level join together to follow a new marketing opportunity. Example: a soda company and a chips company join together to maximize their marketing opportunity.
supply chain management
what it sounds like. does this differ from logistics though?
distribution center
what it sounds like. think the example of the staples factory where they have robots do everything
