Flashcards in Marketing Ch.15 Deck (49):
individuals and firms involved in the process of making a product or service available for use or consumption
intermediaries buy and sell products and services. Shares risk with the producer.
- the intermediary gather/sort/disperse products
the intermediaries make a transaction easier for buyers by things like credit cards.
intermediaries have the product/service available when you want it
intermediaries have the product/service available where you want it
intermediaries enhance products/services to make it more appealing to buyers
intermediaries help buyers take possession of a good or service.
Direct Channel for consumer goods
producer and ultimate consumers deal with each other directly. No intermediaries, producer preforms all channel functions
intermediaries are inserted between producer/consumer. Preform numerous channel functions.
Direct Channel- for business goods
Firms maintain their own Salesforce and preform channel functions. Buyers are large and well defined. Extensive negotiations, products have high unit value, require hands on expertise to install/use
Electronic Marketing Channels -
employ the internet to make products available for consumption or use. Combine traditions and electronic intermediaries
Direct Marketing Channels
allow consumers to buy products by interacting with various advertising media without a face-to-face meeting with salesperson.
blending of different communication and delivery channels that are mutually reinforcing in attracting and retain relationships with consumers.
an arrangement where a firm reaches different segments of buyers by employing 2+ different types of channels for the same basic product.
Strategic Channel Alliance-
where one firms marketing channel is used to sell another firms products.
Vertical Marketing Systems-
professional managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.
Corporate vertical marketing system
combination of successive stages of production and distribution under a single ownership.
firms owning intermediary at next level down
when a retailer owns manufacturing facilities
Contractual Vertical Marketing System
independent product and distribution firms integrate their efforts on a contract to obtain greater marketing impact
Wholesaler Sponsored Voluntary Chains-
wholesaler develops a contractual relationship with small independent retailers to standardize and coordinate buying practices.
when small independent retailers form an organization that operates a wholesale facility cooperatively.
Manufacturer Sponsored- retail franchise systems
prominent in automobile. Manufacturer licenses dealers to sell item subject to various sales and service conditions.
Manufacturer Sponsored Wholesale Franchise Systems
in soft drink industry. Where pepsi licenses wholesalers(bottlers) that purchase concentrate from pepsie and then carbonate, bottle, promote and distribute its products
Service Sponsored Retail Franchise Systems-
used by firms that have designed a unique approach for preforming a service and wish to profit by selling the franchise to others
Service Sponsored Franchise System
franchisors license individuals or firms to dispense a service under a trade name and specific guidelines
Administered vertical marketing systems
achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership. Ex. Proctor and Gamble
- number of stores in a geographical location and type of intermediaries to be used at the retail level.
firm tries to pace its products in as many outlets as possible. Usually chosen for convenience products.
opposite of intensive distribution b/c the firm selects only one retailers in a specific geographical area
lies between intensive and exclusive. Firm selects a few retailers.
choose intermediaries that will communicate with buyers through in store displays…
proximity or driving time to a retailer outlet. Ease of access
reflects buyers interest having numerous competing and complementary items from which to choose.
Pre or post sale services Requirement
provided by intermediaries are an important buying requirement for products such as large household appliances that require delivery/installation.
when one channel member believes another channel is engaged in behavior that prevents it from achieving its goals
occurs between different levels in a marketing channel (ex. Wholesaler and retailer)
When a channel member bypasses another
occurs between intermediaries at the same level.
not illegal, can be anticompetitive. When a manufacturer distributes through its own vertically integrated channel in competition with independent wholesalers and retailers that also sell its products.
not illegal, practice is sometimes subject to legal action
exists when a supplier requires channel members to sell only its products or restricts distributors from selling directly competitive products.
Full line forcing
special kind of tying arrangment. Carry full line or none
involves those activities that focus on getting the right amount of the right products to the right places
practice of organizing the cost effective flow of raw materials to finished goods and info to satisfy consumers
Total Logistics Cost
includes expenses associated with transportation, handling, warehousing, inventory, stockouts, order processing
pplier determines the product amount and assortment a customer needs and automatically delivers it