Term
| Distribution Channel (or marketing channel) |
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Definition
| An organized system of institutions through with products, services and information flow from the point of production to the final user |
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Term
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Definition
| Coordination of the flow of products, services and information among channel members to ensure that products are available where consumers choose to buy, in the quantities and assortments they prefer, and at prices that are acceptable |
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Term
| Channel functions performed by intermediaries (functions of distribution) |
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Definition
1. Transactional
2. Logistical
3. Facilitating |
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Term
| To achieve the optimum channels structure, outputs demanded by customers must equal... |
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Definition
| service outputs provided by producers |
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Term
| Steps of designing distribution channels |
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Definition
1. Specifying the role of distribution and identify factors that affect distribution decisions
2. Selecting the type of channel
3. Determining the intensity of distribution
4. Choosing specific channel members defining responsibilities, implementing and monitoring the distribution strategy |
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Term
| External factors affecting distribution |
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Definition
- Competition
- Customers
- Channel intermediaries
- Legal and regulatory |
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Term
| Internal factors affecting distribution |
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Definition
- Marketing and distribution objectives
- Capabilities and budget
- Marketing mix strategy |
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Term
| Consumer channel alternatives |
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Definition
Level 0: Manufacturer/service provider, Consumer
Level 1: Manufacturer/service provider, Retailer/own store, Consumer
Level 2: Manufacturer/service provider, wholesales, retailer, consumer
Level 3: Manufacturer/service provider, broker, wholesaler, retailer, consumer |
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Term
| Business channel alternatives |
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Definition
Level 0: Manufacturer/service provider, business customer
Level 1: Manufacturer/service provider, manufacturer's rep/business distributor/broker, business customer
Level 2: Manufacturer/service provider, manufacturer's rep/broker, business distributor, business customer |
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Term
| Manufacturer's rep description |
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Definition
- Independent organizations may enter into contractual agreements with manufacturers
- Works on commission, but may receive a retainer
- May carry several, but non-competing product lines
- Obtains the order, manufacturer fulfills and invoices client |
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Term
| Manufacturer's rep primary users |
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Definition
- Small manufacturers with limited resources
- Manufacturers with a single or narrow product line
- Manufacturers seeking coverage of small or non-traditional markets |
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Term
| Distributor (wholesaler) description |
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Definition
- Buys products from manufacturer
- Stocks them in own warehouse
- Promotes and re-sells them to customers
- Finances the exchange
- Supplies market information
- Provides management service and advice |
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Term
| Distributor (wholesaler) users |
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Definition
| - Manufacturers for whom time and resources and scarce |
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Term
| Functional wholesaler (service merchandiser/rack jobber) description |
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Definition
- Places display racks in retail stores
- Checks stock
- Replenishes inventory
- Rents or pays royalties |
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Term
| Functional wholesaler - Rack jobber (service merchandiser) users |
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Definition
- Manufacturers who wish to extend their reach to marginal target markets
- Resellers for whom the product category does not represent their "core" business |
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Term
| Functional wholesaler - Drop shipper description |
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Definition
- Manufacturers or wholesales who ship products on behalf of B2C or B2B resellers
- Resellers takes title and bares all risk, but stocks no inventory
- Seller may offer sales support |
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Term
| Functional wholesaler - Drop shipper user |
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Definition
- Online retailers
- Small retailers with unusually large orders
- Custom retail items |
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Term
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Definition
| Several successive stages of production and distribution are linked through common ownership |
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Term
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Definition
| Coordination is achieved through programs and solutions provided by a "channel captain" |
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Term
| Contractual VMS - wholesaler sponsored |
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Definition
| Wholesalers organize a voluntary chain of independent retailers (IGA/IDA) |
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Term
| Contractual VMS - franchise system |
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Definition
| Several successive stages of production and distribution are linked through a contract |
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Term
| Contractual VMS - retailer sponsored cooperative |
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Definition
| Retailers organize a voluntary chain |
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Term
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Definition
- Co-distribution
- Co-production
- Customization |
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Term
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Definition
- Cross merchandizing
- Co-branding
- Co-promotion
- Endorsement |
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