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Chp. 10 Marketing
Question | Answer |
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Value delivery network | The network made up 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 channel (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. |
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 channel containing one or more intermediary levels. |
Channel conflict | Disagreement among marketing channel members on goals and roles-who should do what and for what rewards. |
Conventional distribution channel | a channel consisting of one or more independent producers, wholesalers, and retailers, each a seperate business seeking to maximize its own profits even at the expense of profits for the system as a whole. |
Vertical Marketing system | A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts 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 to obtain more economies or sales impact than they could achieve alone. |
Franchise organization | A contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process. |
Administered VMS | A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but 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 system | A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. |
Disintermediation | The cutting out of marketing channel intermediares by the product or service producers, or the displacement of traditional resellers by radical new types of intermediares. |
Marketing channel design | Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them. |
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. |
Supply chain management | Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and the final consumers. |
Distribution center | A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficently, and deliver goods to customers as quickly as possible. |