Marketing 311 – Chapter 15

Marketing Channel
Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
Multichannel Marketing
Blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online
Dual Distribution
Arrangement whereby a firm reaches different buyers by employing two or more different type of channels for the same basic product
Vertical Marketing Systems
Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
Intensive Distribution
Level of distribution density whereby a firm tries to place its products and service in as many outlets as possible
Exclusive Distribution
Level of distribution density whereby only one retailer in a specific geographical area carries the firms products
Selective Distribution
Level of distribution density whereby a firm selects a few retailers in a specific geographic all area to carry its products
Channel Conflict
When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
Disintermediation
Channels conflict that arises when a channel member bypasses another member and sells or buys products direct
Logistics
Activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Supply Chain
Sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users
Total Logistics Cost
Expenses associated with transportation, materials handling and warehousing, inventory, stock outs, order processing, and return products handling
Customer Service
The ability of logistics management to satisfy users in terms od dependability, communication, and convenience
Vendor-Managed Inventory VMI
An inventory management system whereby the supplier determines the
Rosy to amount and assortment customers needs and automatically delivers the appropriate items
Reverse Logistics
Process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal