chapter 15

  1. Marketing Channel
    consists of individuals and firms involved in the process of making a product available for use bye consumers
  2. Middle man
    an intermediary between manufacturer and end user
  3. Agent or Broker
    any intermediary with legal authority to act on behalf of the manufacturer
  4. Wholesaler
    any intermediary who sells to other intermediaries usually to retailers
  5. Retailer
    an intermediary who sells to consumers
  6. Distributor
    intermediaries who perform a variety of distribution functions
  7. Transactional functions
    Involves buying selling and risk taking because they stock merchandise in anticipation of sales
  8. Logistical functions
    evident in the gathering storing and dispersing of products
  9. Facilitating functions
    Assists producers in making goods and services more attractive to buyers
  10. Direct Channel
    producers and consumers deal directly with each other
  11. In direct channel
    inserted between producer and consumer and perform numerous channel functions
  12. Industrial distributors
    Performs a variety of marketing channel functions including selling, stocking, delivering a full product assortment and financing
  13. Electronic marketing channel
    Employ the internet to make products available for consumption by consumer
  14. Direct marketing channel
    Allow consumers to buy products by interacting with various advertising media without a face to face meeting with the sales person
  15. Multichannel marketing
    Is the blending of different communication and delivery channels that are mutually reinforcing in attracting retaining and building relationships with consumers who shop and buy in intermediaries and online
  16. Dual distribution
    An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product
  17. Strategic channel alliance
    where one firms marketing channel is used to sell another firms product
  18. Merchant wholesaler
    Independently owned firms that take title to merchandise they handle
  19. General merchandise wholesaler
    Carry a broad assortment of merchandise and perform all channel function
  20. Specialty merchandise wholesaler
    Offers a relatively narrow range of products but have an extensive assortment within the product lines carried
  21. Rack jobbers
    Furnish the racks or shelves that display merchandise in retail stores, perform all channel functions and sell on consignment
  22. Cash and carry merchandise wholesalers
    Take title to merchandise but sell only to buyers who pay them cash
  23. Drop shippers
    Wholesalers that own the merchandise they sell but do not handle or deliver
  24. Truck jobbers
    Small wholesalers that have small warehouses from which they stock trucks
  25. Manufacturers agent
    work for several producers and carry non competitive merchandise in an exclusive territory
  26. Selling agents
    Represents a single producers and are responsible for the entire marketing function
  27. Brokers
    Independent firms whose principal is to bring buyers and sellers together to make sales
  28. Vertical marketing system
    professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impacts
  29. Corporate vertical marketing system
    A combo of successive stages of production and distribution under a single ownership
  30. Forward integration
    A producer might own the intermediary at the next level down
  31. Backward integration
    a retailer may own a manufacturing operation
  32. Contractual vertical marketing
    Independent production and distribution firms integrate their efforts on a contactual basis to obtain greater functional economies and marketing than they can achieve alone
  33. Wholesaler sponsored voluntary chains
    Involves a wholesaler that develops a contactual relationship with small independent retailers to standardize and coordinate buying practices merchandising programs and inventor management efforts
  34. Franchising
    a contractual agreement between a parent company and individual or firm that allows the franchise to operate a certain type of business under an established name
  35. retailer sponsored cooperatives
    exist when small independent retailers form an organization that operates a wholesale facility cooperatively
  36. Manufacturer sponsored retail facility
    automobile industry
  37. manufacturer sponsored wholesale system
    allows wholesalers to purchase the license and then carbonate bottle and distribute soft drinks
  38. Service sponsored retail franchise system
    hotels and restaurants
  39. Service sponsored franchise system
    exist when franchisors license individuals or firms to dispense a service under a trade name and specific guidlines
  40. Administered vertical marketing systems
    achieve coordination at successive stages of productions and distribution by the size and influence of one channel rather than ownership
  41. Channel partnership
    consists of agreements and procedures among channel members for ordering and physically distributing a producers product through the channel to the ultimate consumer
  42. Factors affecting channel choice and management
    • Environment
    • Consumer
    • Product
    • Company
  43. Intensive distribution
    Means that a firm tries to place its products and services in as many outlets as possible
  44. Exclusive distribution
    Only one retailer in a specified geographic area carries the firms product
  45. Selective distribution
    the firm selects a few retailers in a specified geographic area to carry its products
  46. Satisfying buyer requirements
    • Information
    • Convienicnce
    • Vairety
    • Post and Pre sale services
  47. Channel Conflict
    arises when one channel member believes another channel member is engaged in behavior that prevents it from achieveing its goals
  48. vertical conflict
    occurs between diffrent levels in the marketing channel
  49. disintermediation
    when a channel memeber bypasses another memeber and sells or buy directly
  50. Horizontal conflict
    occurs betweeen intermediaries at the same level
  51. channel captain
    a channel members that coordinates directs and suppors
  52. dual distribution
    anticompetitive not illeagal
  53. vertical integration
    not illegal but subject to legal action
  54. exclusive dealing
    exsists when a supplier requires channel member to sell only its products or retricts distributors from selling directly competitive products
  55. typing arrangment
    occurs when a supplier requires distributor to purchase some products to buy others from supplier
  56. full line forcing
    type of typing arrangment requires distributor to carry a full line of products in order to sell a specific product
  57. Resale restrictions
    suppliers attempt to stipulate who distributors can resell to and in what region
Card Set
chapter 15
chapter 15