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MKT 301 Chapter 13

QuestionAnswer
Marketing Channel AKA Channel of distribution. The set of interdependent organizations that facilitate the transfer of ownership as products move from producer to business user or consumer.
Channel Members AKA intermediaries, resellers, and middlemen. Negotiate with one another, buyand sell products, and facilitate the change of ownership between buyer and seller.
Discrepancy of Quantity The difference between the amount of product produced and the amount an end user wants to buy.
Discrepancy of Assortment The lack of all the items necessary to receive full satisfaction from a product or products.
Temporal Discrepancy Created when a product is produced and a consumer is not ready to purchase it.
Spatial Discrepancy The difference between the location of the producer and the location of widely scattered markets.
Retailers Firms that sell mainly to consumers. They take title to the goods which they sell.
Merchant Wholesalers Facilitate the movement of products and services form the manufacturer to producers, resellers, government institutions, and retailers. Merchant wholesalers take title to the goods which they sell.
Agents and Brokers Facilitate the sale of a product from producer to end use by representing retailers, wholesalers, or manufacturers. Agents and brokers do not take title.
Logistics The efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related information, into, through, and out of channel member companies. Logistical functions include transporting, storing, sorting out, accumulating...
Direct Channel Used by producers to sell directly to consumers. Includes, telemarketing, mail order, and catalog shopping and forms of electronic retailing.
Multiple Distribution AKA Dual distribution. Some producers select two or more channels to distribute the same products to target markets. A variation of this practice is the marketing of similar products using different brand names.
Strategic Channel Alliances Sometimes formed to use another manufacturer's already established channel.
Intensive Distribution Aimed at having a product available in every outlet where target consumers might want to buy it.
Selective Distribution Achieved by screening dealers to eliminate all but a few in any single area.
Exclusive Distribution Entails establishing one ore a few dealers within a given area.
Arm's-length Relationships Loose relationships, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no/low expectation of future interaction or service.
Cooperative Relationships Exist between arm's-length and integrated relationships, take the form of informal partnership with moderate levels of trust and information sharing as needed to further each company's goals.
Integrated Relationships Are tightly connected relationships with linked processes across and between firm boundaries, and high levels of trust and inter-firm commitment.
Channel Power A channel member's ability to control or influence the behavior of another member's behavior.
Channel Control A situation that occurs when one channel member intentionally affects another member's behavior.
Channel Leader or Channel Captain The channel member who assumes channel leadership and exercises authority and power.
Channel Conflict A clash of goals and methods between distribution channel members.
Horizontal Conflict Occurs among channel members on the same level.
Vertical Conflict Occurs between different levels in a marketing channel.
Channel Partnering or Channel Cooperation The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage.
Created by: 569314993
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