Term
| Marketing Channel or Channel of Distribution |
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Definition
| A set of interdependent orgranizations that ease the transfer of ownership as products move from producer to business user or consumer. |
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Definition
| All parties in the marketing channel that negotiate with one another, buy & sell products, facilitate the change of ownership, between buyer and seller inthe course of moving the product from the manufacturer into the hands of the final consumer. |
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Definition
| The difference between the amount of product produced and the amount an end user wants to buy. |
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| Discrepancy of Assortment |
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Definition
| The lack of all the items a customer needs to receive full satisfaction from a product or products. |
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| A situation that occurs whena product is produced but a customer is not ready to buy it. |
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| The difference between the location of a producer and the location of widely scattered markets. |
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| Speaks to the specific roles of Marketing Channel Members who facilitate the change of product ownership and whether they take title to the product. |
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| A channel intermediary that sells mainly to consumers. |
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Definition
| An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and takes title to goods, stores them in its own warehouses and ships them. |
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Definition
| Wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers. |
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Definition
The efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related information, into, through, and out of channel member companies.
Examples: transporation, storage, sorting, accumulation, consolidation, allocation. |
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Term
| Direct channel Structure (Consumer) |
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Definition
A distribution channel where producers sell directly to consumers.
Examples are: telemarketing, mail order and catalog shipping, online and shop at home television networks. |
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Term
| Retailer Channel Structure (Consumer) |
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Definition
| Channel structure where the producer sells to the retailer who then resells the product to the consumer. |
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Term
| Wholesaler Channel Structure (Consumer) |
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Definition
| Channel structure where the producer sales to the wholesaler, who sells to the retailer who sells to the consumer. |
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| Agent/Broker Channel Structure (Consumer) |
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Definition
| Channel structure where the producer sells to the ag |
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Term
| Alternative Channel Arrangement Types |
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Definition
| Multiple channel, Nontraditional channel, and strategic channel alliance |
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Definition
Alternative channel type where the use of two or more channels distribute the same product to target markets.
Examples: Victoria's secret, Limited, etc sell in store, online, and through catalogs. |
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Term
| Strategic Channel Alliances |
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Definition
Alternative channel type where a cooperative agreement between business firms to use the other's already established distribution channel.
Examples: When starbucks introduced ready-to-drink coffee beverages, they went to Pepsi and they became sole distributor. |
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Term
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Definition
| An alternative channel that helps differentiate a firm's product from the competition. Examples: Manufacturers may use the internet, vending machines, mail order or infomercials to sell products instead of retailers. Kiosks for wedding registry, ATM for dispensing cash, etc. |
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Term
| Factors that Affect Channel Choice |
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Definition
| Market, Product, and Producer factors. |
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Definition
| Factor that affects a marketer's channel choice where target market influences a product's distribution method. |
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Definition
| Where the features of a product and the target market will influence the distribution channel for the product. Example: Expensive and complex products tend to benefit from shorter and more direct marketing channels. |
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Definition
| The producer itself can influence the distribution channel for a particular product. Example: producers with large financial, managerial, and marketing resources are better able to support direct channels. Smaller firms rely on intermediaries. |
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Term
| Levels of Distribution Intensity |
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Definition
| Intensive, Selective, Exclusive |
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Definition
| Having product available at every store where customer's might want to buy it. |
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Definition
| Where dealers are screened to eliminate all but a few in a single area. Helps maintain a superior product image in order to charge a premium price. |
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Definition
| Most restrictive distribution level where only one or a few dealers are within a given area. Dealers usually grant retailers exclusive territories and receives benefits from manufacturer promotions. Retailer usually agrees not to sell the competition's products. |
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Term
| Channel Relationship Types |
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Definition
| Arm's Length, Integrated, Cooperative Relationships |
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Term
| Arm's Length Channel Relationship |
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Definition
| Relationship between companies that is loose with low relationship investment and trust, where there is no expectation of future interaction or service. Usually used for single, unique, or sudden need transactions not likely to arise again. |
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| Integrated Channel Relationship |
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Definition
| Tightly connected relationship between companies with linked processes spanning between each firm's boundaries with high level of trust and interfirm commitment. |
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Term
| Cooperative Channel Relationship |
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Definition
| Relationship between companies that takes the form of an informal partnership with moderate levels of trust and information sharing as needed to further each company's goal (between an Arm's Length and Integrated Channel Relationship. |
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Definition
| Channel management aspect where a marketing channel member is used to control or influence the behavior of other channel members. |
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| Channel management aspect where one channel member's behavior (one of influence and leadership) affects another member's behavior. |
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| Channel management aspect where a member of marketing channel exercises authority and power over the activities of other channel members. |
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Definition
| A clash of goals and methods between distribution channel members. |
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| Channel conflict that occurs between channel members on the same level. |
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Definition
| Channel conflict that occurs between different levels in a marketing channel, usually between manufacturer and retailer. |
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Term
| Channel Partnering (Channel Cooperation) |
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Definition
| Joint effort where channel members cooperate to create a channel that serves customers and creates a competitive advantage. |
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Term
| Channel and Distribution Decision for Services |
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Definition
| Minimize wait times, manage service capacity (ability to meet peaks), Improve service delivery (right distribution channel for target market & product). |
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