Principles of Marketing 8th Edition Chapter 14

agents and brokers
wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
arm’s-length relationship
a relationship between companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions with no or low expectation of future interaction or service
atmosphere
the overall impression conveyed by a store’s physical layout, décor, and surroundings
automatic vending
the use of machines to offer goods for sale
chain store
a store that is part of a group of the same stores owned and operated by a single organization
channel captain
a member of a marketing channel that exercises authority and power over the activities of other channel members
channel conflict
a clash of goals and methods between distribution channel members
channel control
a situation that occurs when one marketing channel member intentionally affects another member’s behavior
channel members
all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
channel partnering
the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage
channel power
the capacity of a particular marketing channel member to control or influence the behavior of other channel members
cooperative relationship
a relationship between companies that takes the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals
data mining
the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior
destination store
a store that consumers purposely plan to visit
direct channel
a distribution channel in which producers sell directly to consumers
direct marketing / direct response marketing
techniques used to get consumers to make a purchase from their home, office, or other nonretail setting
direct retailing
the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties
dual distribution / multiple distribution
the use of two or more channels to distribute the same product to target markets
exchange utility
the increased value of a product that is created as its ownership is transferred
exclusive distribution
a form of distribution that establishes one or a few dealers within a given area
factory outlet
an off-price retailer that is owned and operated by a manufacturer
form utility
the elements of the composition and appearance of a product that make it desirable
franchise
a relationship in which the business rights to operate and sell a product are granted by the franchisor to the franchisee
franchisee
an individual or business that is granted the right to sell another party’s product
franchisor
the originator of a trade name, product, methods of operation, and the like that grants operating rights to another party to sell its product
gross margin
the amount of money the retailer makes as a percentage of sales after the cost of goods sold is subtracted
horizontal conflict
a channel conflict that occurs among channel members on the same level
independent retailer
a retailer owned by a single person or partnership and not operated as part of a larger retail institution
integrated relationship
a relationship between companies that is tightly connected, with linked processes across and between firm boundaries and high levels of trust and inter-firm commitment
intensive distribution
a form of distribution aimed at having a product available in every outlet where target customers might want to buy it
layout
the internal design and configuration of a store’s fixtures and products
m-commerce
the ability to conduct commerce using a mobile device for the purpose of buying or selling goods or services
marketing channel / channel of distribution
a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer
merchant wholesaler
an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
non-store retailing
shopping without visiting a store
nontraditional channels
nonphysical, often electronic, channels that facilitate the unique market access of products and services
online retailing / e-tailing
a type of shopping available to consumers with personal computers and access to the Internet
place utility
the usefulness of a good or service as a function of the location at which it is made available
retailer
a channel intermediary that sells mainly to consumers
retailing
all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
retailing mix
a combination of the six Ps—product, place, promotion, price, presentation, and personnel—to sell goods and services to the ultimate consumer
scrambled merchandising
the tendency to offer a wide variety of nontraditional goods and services under one roof
selective distribution
a form of distribution achieved by screening dealers to eliminate all but a few in any single area
shop-at-home television network
a specialized form of direct-response marketing where shows display merchandise for viewers to purchase over the telephone with a credit card
strategic channel alliance
a cooperative agreement between business firms to use the other’s already established distribution channel
telemarketing
the use of the telephone to sell directly to consumers
time utility
the increase in customer satisfaction gained by making a good or service available at the appropriate time
vertical conflict
a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer