chapter 12 Marketing Definitions

Supply chain
“make/sell” view includes the firm’s raw materials, productive inputs, and factory capacity
Demand chain
“sense/respond” view suggests that planning starts with the needs of the target customer
Marketing channel(distribution channel)
is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
Upstream partners
firms that supply raw materials, components, parts, info, finances, and expertise needed to create a product or service.
Downstream partners
include the marketing channels or distribution channels that look toward the customer,, including retailers and wholesalers
Value delivery network
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
channel level
a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.
direct marketing channel
a marketing channel that has no intermediary levels
indirect marketing channel
a marketing channel containing one or more intermediary levels.
channel conflict
disagreements among marketing channel members on goals, roles, and rewards-who should do what and for what rewards
conventional distribution channel
a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to max its own profits, perhaps even at the expense of profits for the system as a whole
Vertical marketing system (VMS)
a channel structure in which procedures, 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.
Corporate VMS
a vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership
Contractual VMS
a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts
Franchise orgs
a contractual vertical marketing system, in which a channel member called a franchiser links several stages in the production – distribution process
Administered VMS
a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties
Horizontal marketing system
a channel arrangement in which 2 or more companies at one level join together to follow a new marketing opportunity
Multi-channel distribution system
a distribution system in which a single firm sets up 2 or more marketing channels to reach 1 or more customer segments
Disintermediation
the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries
marketing channel design
designing effective marketing channels by analyzing customer needs, setting channel objectives, identifying major channel alternatives and evaluating those alternatives
intensive distribution
stocking the product in as many outlets as possible
exclusive distribution
giving a limited # of dealers the exclusive right to distribute the company’s products in their territories
selective distribution
the use of more than one but fewer than all of the intermediaries that are willing to carry the company’s product
marketing channel management
selecting, managing, and motivating individual channel memdisbers and evaluating their performance over time
marketing logistics (physical distribution)
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 point
supply chain management
managing upstream and downstream value-added flows of materials , final goods, and related information among suppliers, the company resellers, and final customers
distribution center
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
multimodal transportation
combining two or more modes of transportation
integrated logistics management
the logistics concept that emphasizes teamwork-both inside the company and among all the marketing channel organizations-to max the performance of the entire distribution system
3rd party logistics
an independent logistics provider that performs any or all of the functions required to get a client’s product to market
Exclusive distribution
when the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories
Exclusive dealing
when the seller requires that the exclusive distribution sellers not handle competitors products
Exclusive territorial agreements
where producer or seller limit territory
Tying agreements
agreements where the dealer must take most or all of the line