Refers to competition among sellers of the same brand of product.
Refers to competition among sellers of different brands of the same (general type of) product.
Dual distribution channel
Sells the same product through different channels.
Multiple distribution channel
Sells different products through different channels.
Channel intermediaries that sell their products for low prices while riding on the services offered by full-service channel intermediaries.
Refers to the sale of authorized, branded product through unauthorized marketing channels.
Marketing channel design
Refers to those decisions involving the development of new marketing channels where none had existed before, or the modification of existing channels.
Statements that describe the objectives of distribution and the role that distribution is expected to play in the organization and the marketing mix. Must be congruent with overall objectives and strategies of the organization and of the marketing mix.
Refers to the number of levels in a marketing channel (the number of independent intermediaries used).
Channel width (channel intensity)
Refers to the number of intermediaries (and hence the amount of competition) at each level of the marketing channel.
Short marketing channel
Ex. Direct distribution. A manufacturer sells goods and services directly to final consumers without the use of independent channel intermediaries.
Long marketing channel
The marketing channel includes a relatively large number of levels (of independent channel intermediaries).
Product gestation period
The time it takes from when a consumer first shows interest in a product to when they actually purchase the product.
For consumers who cannot travel very easily to remote retail locations.
Bulk breaking (breaking bulk)
For consumers who do not have sufficiently high disposable income to keep many products at their home.
As many outlets as possible are used at each level of the marketing channel.
Not all possible channel intermediaries at a particular level are used.
A very highly selective pattern of distribution. Ex. Only one channel intermediary in a particular market area is used.
Refers to the extent to which a product is available to potential buyers in a geographical area.
All Commodity Volume (ACV)
The sum of market shares in the whole market.
Percent Category Volume (PCV)
The sum of market shares of the particular category of goods.
The rate at which a product is purchase by users.
The difference between the product’s production costs and the final selling price (buying price – selling price).
Time of consumption
The length of the time period during which the product is used.
The amount of effort expended by customers to shop for the product.
Refers to the extent to which two or more of a manufacturer’s products can use (share) the same distribution channels.
Occurs when one manufacturer uses another manufacturer’s sales force and distribution capabilities to sell to the same market.
Occurs when two manufacturers both sell their own products and those of the piggybacking partner.
Refers to a manufacturer’s attempt to have consumers perceive the products in a particular way relative to competing products.
Refers to the manufacturer’s attempts to portray a product(s) as being different from competing products and therefore, more desirable, even though the price may be higher.
The amount of product customization required to meet users’ requirements.
Occurs when, in a given product category, a channel intermediary sells the products of only one manufacturer.
The market channel technique of allocating or assigning specific geographical territories or market areas to specific marketing channel intermediaries.
Occurs when, in a given market area, only one channel intermediary sells the product(s) of a given manufacturer.
Exists in a marketing channel when a marketing channel member perceives another member’s actions to be impeding the attainment of his or her goals.
A “role” defines what the behaviour of a channel member should be. Conflict may result if a marketing channel member deviates from its role.
Conflict may result when a channel member is not performing its role to an expected level of performance.
Conflict may result when one member of a marketing channel sets goals that conflict with another channel member’s goals.
Conflict may result from a disagreement between channel members over the allocation of some valuable resources needed to achieve their respective goals.
Conflict may result when different marketing channel members perceive the same item or incident in different ways.
Conflict may result if one channel member feels that another channel member is making decisions in an area that belongs to the first channel member.
Refers to the actions taken by the manufacturer to encourage strong cooperation by channel intermediaries in implementing the manufacturer’s distribution objectives.