Term
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Definition
| A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value. p 341 |
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Term
| Marketing channel (or distribution channel) |
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Definition
| A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. p 341 |
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Term
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Definition
| A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. p 343 |
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Term
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Definition
| A marketing channel that has no intermediary levels. p 343 |
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Term
| Indirect marketing channel |
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Definition
| A marketing channel containing one or more intermediary levels. p 343 |
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Term
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Definition
| Disagreements among marketing channel members on goals, roles, and rewards— who should do what and for what rewards. p 344 |
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Term
| Conventional distribution channel |
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Definition
| A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole. p 345 |
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Term
| Vertical marketing system (VMS) |
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Definition
| A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate. p 345 |
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Term
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Definition
| A vertical marketing system that combines successive stages of production and distribution under single ownership— channel leadership is established through common ownership. p 346 |
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Term
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Definition
| A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts. p 346 |
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Term
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Definition
| A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production- distribution process. p 346 |
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Term
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Definition
| A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. p 347 |
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Term
| Horizontal marketing system |
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Definition
| A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. p 347 |
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Term
| Multichannel distribution system |
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Definition
| A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. p 348 |
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Term
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Definition
| The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries. p 348 |
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Term
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Definition
| Designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives. p 350 |
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Term
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Definition
| Stocking the product in as many outlets as possible. p 351 |
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Term
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Definition
| Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories. p 351 |
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Term
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Definition
| The use of more than one but fewer than all of the intermediaries who are willing to carry the company’s products. p 351 |
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Term
| Marketing channel management |
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Definition
| Selecting, managing, and motivating individual channel members and evaluating their performance over time. p 353 |
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Term
| Marketing logistics (or physical distribution) |
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Definition
| Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit. p 357 |
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Term
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Definition
| Managing upstream and downstream value- added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. p 357 |
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Term
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Definition
| A large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. p 359 |
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Term
| Intermodal transportation |
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Definition
| Combining two or more modes of transportation. p 361 |
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Term
| Integrated logistics management |
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Definition
| The logistics concept that emphasizes teamwork— both inside the company and among all the marketing channel organizations— to maximize the performance of the entire distribution system. p 361 |
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Term
| Third-party logistics (3PL) provider |
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Definition
| An independent logistics provider that performs any or all of the functions required to get a client’s product to market. p 363 |
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