Chapter 12 Vocab Flashcards Preview

Marketing > Chapter 12 Vocab > Flashcards

Flashcards in Chapter 12 Vocab Deck (39)
Loading flashcards...

value delivery network

network composed of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value


marketing (distribution) channel

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


key functions performed by marketing channel members (distributors) (8)

5 help to complete transactions
information - gathering & distribution to relevant parties
promotion - develop & spread persuasive communication
contact - find & communicate with buyers
matching - shape offers to meet buyer's needs
negotiation - reach agreement on price, other terms
3 help fulfill completed transactions
physical distribution - transportation & storage
financing - covering costs of channel work
risk taking - assuming risk of carrying out channel work


channel level

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


direct marketing channel

a marketing channel that has no intermediary levels


indirect marketing channel

a marketing channel containing one or more intermediary levels


types of flows in the marketing channel (5)

physical flow of products
flow of ownership
payment flow
information flow
promotion flow


channel conflict

disagreements among marketing channel members on goals, roles, and rewards (who should do what and for what rewards)


horizontal conflict

occurs among firms at the same level of the channel


vertical conflict

conflict between different levels of the same channel
more common than horizontal conflict


conventional distribution channels

a 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


vertical marketing system

a channel structure in which producers, wholesalers, and retailers act as a unified system; one channel member owns the others, has contacts with them, or has so much power that they all cooperate


corporate VMS

a vertical marketing system that combines successive stages of production and distribution under single ownership; channel leadership is established through common ownership


contractual VMS

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


franchise organization

a contractual VMS in which a channel member, called a franchisor, links several stages in the production distribution process


3 types of franchises

manufacturer sponsored retailer franchise system
manufacturer sponsored wholesaler franchise system
service firm sponsored retailer franchise system


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


multichannel distribution systems

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



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


marketing channel design

designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives


intensive distribution

stocking the product in as many outlets as possible


exclusive distribution

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


selective distribution

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


marketing channel management

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


exclusive dealing

sellers require that exclusive distributors not carry competitors' products


full line forcing

forcing a deal to take some or all the rest of a line if they want to be able to carry a strong brand


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


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


outbound logistics

moving products from the factory to resellers and ultimately to customers