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Terms in this set (29)
Sets of interdependent organizations participating in the process of making a product or service available for use or consumption.
Buy, take title to, and resell the merchandise.
Brokers, manufacturers' representatives, sales agents—search for customers and may negotiate on the producer's behalf but do not take title to the goods.
Transportation companies, independent warehouses, banks, advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales.
Marketing channel system
The particular set of marketing channels a firm employs. It does the work of moving goods from producers to comsumers.
Push marketing 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.
Pull marketing 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 or multichannel
A single firm uses two or more marketing channels to reach customer segments.
Demand chain planning
Company thinks of the target market and then design the supply chain backward from that point.
A system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings. It includes a firm's suppliers and its suppliers' suppliers, and its immediate customers and their end customers.
Zero-level channel/Direct marketing channel
Manufacturer selling directly to the final customer.
Small-scale wholesalers, who sell to small retailers.
Five service outputs that Channel produces.
1. Lot size
2. Waiting and delivery time
3. Spatial convenience
4. Product variety
5. Serice backup
The number of Intermidiaries are based on three strategies
1. Exclusive distribution
2. Selective distribution
3. Intensive distribution
• Price policy
• Conditions of sale
• Distributors' territorial rights
• Mutual services and responsibilities
Channel management decisions
. Selecting channel members
. Training and movtivating channel members
. Evaluating channel members
. Channel modification decisions
The ability to alter channel members' behavior so they take actions they would not have taken otherwise.
Conventional marketing channel
Includes an independent producer, wholesaler(s), and retailer(s). Each is a separate business seeking to maximize its own profits, even if this goal reduces profit for the system as a whole.
Vertical marketing system (VMS)
Includes the producer, wholesaler(s), and
retailer(s) acting as a unified system. There are three types corporate VMS, administred VMS and contractual VMS.
Horizontal marketing system
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.
builds a planned, professionally managed, vertical marketing system that meets the needs of both manufacture and distributors.
Is generated when one channel member's actions prevent another channel from achieving its goal.
When channel members are brought together to advance the goals of the channel, as opposed to their own potentially incompatible goals.
Horizontal channel conflict
Occurs between channel members at the same level.
Vertical channel conflict
Occurs between different levels of the channel.
Occurs when the manufacturer has established two or more channels that sell to the same market.
Causes of Channel Conflict
• Goal incompatibility
• Unclear roles and rights
• Differences in perception
• Differences in perception
Strategies to mange channel conflict
. Strategic Justification
. Dual Compensation
. Superordinate Goals
. Employee Exchange
. Joint Memberships
. Diplomacy, Mediation, and Arbitration
. Legal Recourse
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