Upgrade to remove ads
Terms in this set (43)
are sets of interdependent organizations participating in the process of making a product or service available for use or consumption.
- intermediaries that buy, take title to and resell the merchandise.
- search for customers and may negotiate on the producer's behalf but do not take title to the goods.
- assist in the distribution process but neither take title to goods nor negotiate purchases or sales.
Marketing channel system -
is the particular set of marketing channels a firm employs and decisions about it are among the most critical ones management faces.
Push strategy -
uses the manufacturer's sales force, trade promotion money, or other means to induce intermediaries to carry, promote, and sell the product to end users.
strategy - the manufacturer uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries, thus inducing the intermediaries to order it.
Hybrid channels/ multichannel marketing -
occurs when a single firm uses two or more marketing channels to reach customer segments.
2. Selective distribution
- relies on only some of the intermediaries willing to carry a particular product.
3. Intensive distribution
places the goods or services in as many outlets as possible. This strategy serves well for convenience goods, snack foods, soft drinks, newspapers, etc.
• Direct marketing channels
- internet, telemarketing, retail stores
• Indirect channels
retail stores, distributors, value-added partners
• Direct sales channels
- valued-added partners, sales force
Price policy, conditions of sale, distributors terr. rights, Mutual services
1. Price policy
calls for the producer to establish a price list and schedule or discounts and allowances that intermediaries see as equitable and sufficient.
2. Conditions of sale
refers to payment terms and producer guarantees.
3. Distributors Territorial Rights -
define the distributors' territories and the terms under which the producer will enfranchise other distributors.
4. Mutual Services and Responsibilities
- must be carefully spelled out, especially in franchised and exclusive- agency channels.
how many sales each alternative will likely generate.
the costs of selling different volumes through each channel.
sales and costs.
Control and adaptive criteria
- the producer needs channel structures and policies that provide high adaptability.
ability to alter channel members behavior so they take actions they would not have taken otherwise.
• Coercive power
- a manufacturer threatens to withdraw a resource or terminate a relationship if intermediaries fail to cooperate.
• Reward power
- the manufacturer offers intermediaries an extra benefit for performing specific acts or functions.
• Legitimate power
- the manufacturer requests a behavior that is warranted under the contract.
• Expert power
- the manufacturer has special knowledge the intermediaries value.
• Referent power
- the manufacturer is so highly respected that intermediaries are proud to be associated with it.
Conventional marketing channel
- consists of an independent producer, wholsaler(s), and retailer(s). each is a separate business seeking to maximize its own profits.
Vertical marketing system (VMS)
- includes the producer, wholesaler and retailer acting as a unified system.
Corporate VMS -
combines successive stages of production and distribution under single ownership.
Administered VMS -
coordinates successive stages of production and distribution through the size and power of one of the members.
Contractual VMS -
consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.
1. Wholesaler-sponsored voluntary chains
- wholesalers organize voluntary chains of independent retailers to help standardize their selling practices and achieve buying economies in competing with large chain organizations.
2. Retailer cooperatives
- retailers take the initiative and organize a new business entity to carry on wholesaling and possibly some production.
3. Franchise organizations
- a channel member called a franchisor might link several successive stages in the production-distribution process.
Horizontal marketing systems
- two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.
Integrated marketing channel system
- the strategies and tactics of selling through one channel reflect the strategies and tactics of selling through one or more other channels.
- is generated when one channel members actions prevent another channel from achieving its goal.
- occurs when channel members are brought together to advance the goals of the channel, as opposed to their own potentially incompatible goals.
• Horizontal conflict -
occurs between members on the same level.
• Vertical conflict -
conflict occurs on different levels.
• Multichannel conflict -
exists when the manufacturer has established two or more channels that sell to the same market.
This set is often in folders with...
Chapter 7: Identifying Market Segments and Targets
Chapter 8: Creating Brand Equity
Integrated Marketing Communications
MKTG Ch 10 pt 2
You might also like...
PART 6 - DELIVERING VALUE. Chapter 15 - Designing…
Marketing Chapter 10
Other sets by this creator
Ch 4 Evaluating Company resources
Ch3 Evaluating Company External Environment
Ch 1 EDUC
CH 9 POWER
Other Quizlet sets
k201 study guide w/ koin quizzes
East of Eden: Vocabulary Review Part Two
Muscles of the Tongue