Term
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Definition
channel of distribution
business structure of interdependent organizations that reach from the point of product origin to the consumer with the purpose of moving products tot heir final consumption destination |
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Term
| marketing channels facilitate the physical movement of goods through __ |
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Definition
| supply chain representing a place in the marketing mix, and encompassing the processes involved in getting the right product to the right place at the right time |
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Term
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Definition
| intermediaries, resellers, and midddlemen, negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving product |
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Term
| providing specialization and division of labor |
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Definition
| breaking down complex task into smaller simpler ones and allocating them to specialists will create greater efficiency and lower average production costs |
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Term
| strategies of economies of scale |
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Definition
| marketing channels through specialization and division of labor by aiding producers who lack the motivation, financing, or expertise to market directly to end users or consumers |
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Term
| producers hire channel marketers and wholesalers to do what the producers are not equipped to do |
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Definition
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Term
| Why do producers hire marketing channels? |
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Definition
| because they have built-in relationships |
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Term
| marketing channels overcome quantity discrepancies by making products available in the quantities that consumers desire |
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Definition
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Term
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Definition
| difference between the amount of product produced and the amount an end user wants to buy |
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Term
| discrepancy of assortment |
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Definition
occurs when a consumer does not have all the items needed to receive full satisfaction from a product
ie, pancakes need syrup, forks, plate, etc |
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Term
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Definition
| created when a product is produced but a consumer is not ready to buy it. |
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Term
| strategies for temporal discrepancy |
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Definition
maintain inventories in anticipation of demand
ie, christmas and halloween items |
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Term
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Definition
| scattered markets over large geographical regions, global, least nationwide |
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Term
| strategies for overcoming spatial discrepancies |
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Definition
| making products available in locations convenient to consumers |
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Term
| providing contact efficiency |
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Definition
| reducing the number of stores customers must shop in to complete their purchases |
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Term
| marketing channel strategies |
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Definition
providing specialization and division of labor
overcoming discrepancies
providing contact efficiency |
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Term
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Definition
retailers
merchant wholesalers
agents and brokers |
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Term
| what is an example of taking title? |
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Definition
| retailers and merchant wholesalers taking products in the marketing channel to resell them |
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Term
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Definition
they own the merchandise and control the terms of sale
ie, price and delivery date |
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Term
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Definition
| organizations that facilitate the movement of products and services from the manufacturer to producers, resellers, governments, institutions, and retailers |
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Term
| all merchant wholesalers_______to the goods they sell |
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Definition
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Term
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Definition
| facilitate the sale of a product from producer to end user by representing retailers, wholesalers, or manufacturers |
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Term
| what determines the type of intermediary the manufacturer should use? |
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Definition
product characteristics
buyer considerations
market conditions |
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Term
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Definition
is the product standardized or customized will depend on the intermediary
ie, insurance is sold through an insurance agent
gum is standardized |
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Term
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Definition
| how the product is purchased and how long the buyer is willing to wait for the product |
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Term
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Definition
determining the wholesaler type include how many buyers are in the market and whether they are concentrated in a general location or are widely dispersed
ie, produced in one location and consumed in many other lcoations |
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Term
| channel functions performed by intermediaries |
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Definition
logistics
transactional
facilitating |
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Term
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Definition
| involve contacting and communicating with prospective buyers to make them aware of existing products and explain their features, advantages, and benefits |
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Term
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Definition
| efficient and cost effective forward and reverse flow and storage of goods and services related information into through and out of channel member companies. |
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Term
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Definition
research and financing, provides information about channel members and consumers by getting answers to key questions
ie, where are they located? |
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Term
| channels for consumer products |
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Definition
direct channel
retailer channel
wholesaler channel
agent/broker channel |
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Term
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Definition
no intermediaries
telemarketing
electronic retailing
catalog shopping |
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Term
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Definition
complicated
many small manufacturers
negotiations
sell to the ultimate consumer of the product |
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Term
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Definition
most common
retailer is large
buy in large quantities directly from the manufacturer
ie, walmart, sears |
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Term
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Definition
commonly used for low cost items that are frequently purchased
ie, gum, candy |
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Term
(Industrial products)
manufacturers that require suppliers to meet detailed technical specifications often prefer direct channels |
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Definition
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Term
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Definition
| companies selling standardized items of moderate or low value |
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Term
| these are wholesalers and channel members that buy and take title to products |
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Definition
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Term
| the internet has enabled virtual distributors to emerge and has forced traditional industrial distributors to expand their business model |
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Definition
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Term
| What are retailers using now to reduce costs in purchases? |
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Definition
virtual distributors
worldwide retail exchanges
private exchange |
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Term
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Definition
company creates a network that connects its business with those of its suppliers
provide tighter security over transactions |
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Term
| alternative channel arrangements |
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Definition
multiple channels
nontraditional channels
strategic channel alliances |
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Term
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Definition
| when a producer selects two or more channels to distribute the same product to target markets |
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Term
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Definition
help differentiate a firms product from the competition
internet
mail-order channels
infomercials
gain market access without intermediary
ie. redbox for movies |
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Term
| strategic channel alliance |
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Definition
enable companies to use another manufacturer's already established channel
used most often when the creation of marketing channel relationships may be too expensive and time consuming
ie, pepsico purchased its two major bottlers and has since been able to work directly with retailers to create store specific bundles for grocery stores |
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Term
| strategic channel alliances are proving to be more successful for growing businesses than mergers and acquisitions |
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Definition
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Term
| factors affecting channel choice |
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Definition
market factors
product factors
producer factors |
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Term
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Definition
most important are target customer considerations
5 W's
industrial customers tend to buy in larger quantities and require more customer service
geographic size and location |
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Term
| if the target market is concentrated in one or more areas then____ |
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Definition
| direct selling through a sales force is appropriate |
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Term
| when markets are more widely dispersed then____ |
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Definition
| intermediaries would less expensive |
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Term
| larger markets require more intermediaries |
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Definition
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Term
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Definition
products that are more complex customized and expensive tend to benefit from shorter and more direct marketing channels
ie, airplanes, scientific instruments |
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Term
| the more standardized a product______ |
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Definition
the longer the distribution channel and the greater the number of intermediaries that can be involved
ie, gum in volves many wholesalers and retailers |
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Term
| product life cycle is also an important ___ |
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Definition
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Term
| deliacy of the product is _____ |
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Definition
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Term
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Definition
a producers desire to control pricing, positioning, brand image, and customer support also tend to influence channel selection
ie some retailers are selling their products at less expensive stores |
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Term
| levels of distribution intensity |
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Definition
intensive distribution
selective distribution
exclusive distribution |
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Term
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Definition
form of distribution aimed at maximum market coverage
sell to a large % of the wholesalers willing to stock their products |
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Term
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Definition
screening dealers and retailers to eliminate all but a few in any single area
consumer must seek out the product
sometimes the distribution is expanded into cheaper stores when sales decline |
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Term
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Definition
most restrictive form of coverage
only one or few dealers in an area
confined specialty products
channels of communication are usually well established because the manufacturer works with a limited number of dealers
takes place in a retailers store rather than a geographical area |
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Term
| basic social dimensions of channels are |
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Definition
power
control
leadership
conflict
partnering |
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Term
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Definition
| channel members ability to control or influence the behavior of other channel members |
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Term
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Definition
occurs when one channel member's power affects another members behavior
to achieve control a channel member assumes channel leadership and exercises authority and power |
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Term
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Definition
assumes channel leadership
ie, apple is the current leader for tablets |
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Term
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Definition
| which is a clash of goals and methods among the members of a distribution channel |
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Term
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Definition
occurs among channel members on the same level, such as two or more different wholesalers or two or more different retailers that handle the same manufacturers brand
ie, when apple opened their stores it created conflict |
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Term
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Definition
more serious than horizontal
occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or the manufacturer and retailer
ie, producer versus the wholesaler conflict occurs when the producer chooses to bypass the wholesaler and deal directly with the consumer or retailer |
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Term
| dual distribution strategies |
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Definition
cvs using beauty 360 beside the existing cvs
may cause vertical conflict |
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Term
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Definition
joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
rapid growth because of enabling technology and the need to lower costs |
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Term
| service distribution focuses on 4 main areas |
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Definition
minimizing wait times
managing service capacity
improving service delivery
establishing channel wide network coherence |
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