Marketing Channels Quiz 2

Intrabrand competition
Refers to competition among sellers of the same brand of product.
Interbrand competition
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.
Free riding
Channel intermediaries that sell their products for low prices while riding on the services offered by full-service channel intermediaries.
Gray marketing
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.
Distribution objectives
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.
Channel length
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.
Spatial convenience
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.
Intensive distribution
As many outlets as possible are used at each level of the marketing channel.
Selective distribution
Not all possible channel intermediaries at a particular level are used.
Exclusive distribution
A very highly selective pattern of distribution. Ex. Only one channel intermediary in a particular market area is used.
Market coverage
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.
Replacement rate
The rate at which a product is purchase by users.
Gross margin
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.
Searching time
The amount of effort expended by customers to shop for the product.
Channel overlap
Refers to the extent to which two or more of a manufacturer’s products can use (share) the same distribution channels.
Piggybacking
Occurs when one manufacturer uses another manufacturer’s sales force and distribution capabilities to sell to the same market.
Reciprocal piggybacking
Occurs when two manufacturers both sell their own products and those of the piggybacking partner.
Product positioning
Refers to a manufacturer’s attempt to have consumers perceive the products in a particular way relative to competing products.
Product differentiation
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.
Adjustment
The amount of product customization required to meet users’ requirements.
Exclusive dealing
Occurs when, in a given product category, a channel intermediary sells the products of only one manufacturer.
Exclusive territories
The market channel technique of allocating or assigning specific geographical territories or market areas to specific marketing channel intermediaries.
Exclusive distribution
Occurs when, in a given market area, only one channel intermediary sells the product(s) of a given manufacturer.
Conflict
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.
Role incongruity
A “role” defines what the behaviour of a channel member should be. Conflict may result if a marketing channel member deviates from its role.
Expectational difference
Conflict may result when a channel member is not performing its role to an expected level of performance.
Goal incompatibility
Conflict may result when one member of a marketing channel sets goals that conflict with another channel member’s goals.
Resource scarcity
Conflict may result from a disagreement between channel members over the allocation of some valuable resources needed to achieve their respective goals.
Perceptual difference
Conflict may result when different marketing channel members perceive the same item or incident in different ways.
Domain disagreement
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.
Motivation
Refers to the actions taken by the manufacturer to encourage strong cooperation by channel intermediaries in implementing the manufacturer’s distribution objectives.