Basic Marketing Chapter 10 (Perreault) 19th Ed

Place
making goods and services available in the right quantities and locations when customers want them.
channel of distribution
any series of firms or individuals who participate in the flow of products from producer to final user or consumer.
direct marketing
direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.
Discrepancy of quantity
the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.
Discrepancy of assortment
he difference between the lines of typical producer makes and the assortment final consumers or users want.
Regrouping activities
adjust the quantities of assortments of products handled at each level in a channel of distribution
Accumulating
involves collecting products from many small producers
bulk-breaking
dividing larger quantities into smaller quantities as products get closer to the final market
sorting
separating products into grades and qualities desired by different target markets
assorting
putting together a variety of products to give a target market what it wants
traditional channel systems
the various channel members make little or no effort to cooperate with each other. They buy and sell from each other. Shortsighted.
channel captain
a manager who helps direct the activities of a whole channel and tries ot avoid or solve channel conflicts
Vertical Marketing systems
channel systems in which the whole channel focuses on the same target market at the end of the channel
Corporate channel systems
Corporate ownership all along the channel. The firm may be handling manufacturing, wholesaling, and retailing (vertical marketing system)
Vertical integration
acquiring firms at different levels of channel activity.
administered channel systems
the channel members informally agree to cooperate with each other.
contractual channel systems
the channel members agree by contract to cooperate with each other. Members retain some of the flexibility of a traditional system.
Ideal market exposure
makes a product available widely enough to satisfy target customers’ need but not exceed them. Too much exposure increases the total cost of marketing
Intensive distribution
selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
Selective distribution
selling through only those intermediates who will give the product special attention
Exclusive distribution
selling through only one intermediary in a particular geographic area
Multichannel distribution
Occurs when a producer uses several competing channels to reach the same target market –perhaps using several intermediaries in addition to selling directly.
reverse channels
channels used to retrieve products that customers no longer want.
exporting
selling some of what the firm produces to foreign markets
Licensing
Selling the right to use some process, trademark, patent, or other right for a fee or royalty.
Management contracting
the seller provides only management and marketing skills –others own the production and distribution facilities
Joint venture
a domestic firm enters into a partnership with a foreign firm.
Direct investment
A parent firm has a division (or owns a separate subsidiary firm) in a foreign market.