Shared Flashcard Set

Details

Chapter 13
Marketing Channels - Marketing - Lamb, Hair & McDaniel
39
Marketing
Undergraduate 3
11/07/2010

Additional Marketing Flashcards

 


 

Cards

Term
Marketing Channel or Channel of Distribution
Definition
A set of interdependent orgranizations that ease the transfer of ownership as products move from producer to business user or consumer.
Term
Channel Members
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.
Term
Discrepancy of Quantity
Definition
The difference between the amount of product produced and the amount an end user wants to buy.
Term
Discrepancy of Assortment
Definition
The lack of all the items a customer needs to receive full satisfaction from a product or products.
Term
Temporal Discrepancy
Definition
A situation that occurs whena product is produced but a customer is not ready to buy it.
Term
Spatial Discrepancy
Definition
The difference between the location of a producer and the location of widely scattered markets.
Term
Channel Intermediaries
Definition
Speaks to the specific roles of Marketing Channel Members who facilitate the change of product ownership and whether they take title to the product.
Term
Retailer
Definition
A channel intermediary that sells mainly to consumers.
Term
Merchant Wholesalers
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.
Term
Agents and Brokers
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.
Term
Logistics
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.
Term
Direct channel Structure (Consumer)
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.
Term
Retailer Channel Structure (Consumer)
Definition
Channel structure where the producer sells to the retailer who then resells the product to the consumer.
Term
Wholesaler Channel Structure (Consumer)
Definition
Channel structure where the producer sales to the wholesaler, who sells to the retailer who sells to the consumer.
Term
Agent/Broker Channel Structure (Consumer)
Definition
Channel structure where the producer sells to the ag
Term
Alternative Channel Arrangement Types
Definition
Multiple channel, Nontraditional channel, and strategic channel alliance
Term
Multiple Channels
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.
Term
Strategic Channel Alliances
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.
Term
Nontraditional Channels
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.
Term
Factors that Affect Channel Choice
Definition
Market, Product, and Producer factors.
Term
Market Factors
Definition
Factor that affects a marketer's channel choice where target market influences a product's distribution method.
Term
Product Factors
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.
Term
Producer Factors
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.
Term
Levels of Distribution Intensity
Definition
Intensive, Selective, Exclusive
Term
Intensive Distribution
Definition
Having product available at every store where customer's might want to buy it.
Term
Selective Distribution
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.
Term
Exclusive Distribution
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.
Term
Channel Relationship Types
Definition
Arm's Length, Integrated, Cooperative Relationships
Term
Arm's Length Channel Relationship
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.
Term
Integrated Channel Relationship
Definition
Tightly connected relationship between companies with linked processes spanning between each firm's boundaries with high level of trust and interfirm commitment.
Term
Cooperative Channel Relationship
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.
Term
Channel Power
Definition
Channel management aspect where a marketing channel member is used to control or influence the behavior of other channel members.
Term
Channel Control
Definition
Channel management aspect where one channel member's behavior (one of influence and leadership) affects another member's behavior.
Term
Channel Leader (Captain)
Definition
Channel management aspect where a member of marketing channel exercises authority and power over the activities of other channel members.
Term
Channel Conflict
Definition
A clash of goals and methods between distribution channel members.
Term
Horizontal Conflict
Definition
Channel conflict that occurs between channel members on the same level.
Term
Vertical Conflict
Definition
Channel conflict that occurs between different levels in a marketing channel, usually between manufacturer and retailer.
Term
Channel Partnering (Channel Cooperation)
Definition
Joint effort where channel members cooperate to create a channel that serves customers and creates a competitive advantage.
Term
Channel and Distribution Decision for Services
Definition
Minimize wait times, manage service capacity (ability to meet peaks), Improve service delivery (right distribution channel for target market & product).
Supporting users have an ad free experience!