Principles of Marketing Ch 14

distribution
movement of goods and services from producers to customers.
marketing(distribution) channel
system of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user.
logistics
process of coordinating the flow of information, goods, and services among members of the distribution channel.
supply chain management
complete sequence of suppliers and activities that contribute to the creation and delivery of merchandise.
physical distribution
broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer.
marketing intermediary (middleman)
wholesaler or retailer that operates between producers and consumers or business users.
wholesaler
channel intermediary that takes title to the goods it handles and then distributes these goods to retailers other distributors, or business or B2B customers.
direct channel
marketing channel that moves goods directly from a producer to the business purchase or ultimate user.
direct selling
strategy designed to establish direct sales contact between producer and final user.
manufacturer’s representative
agents wholesaling intermediary that represents manufacturers of related but noncompeting products and receives a commission on each sale.
dual distribution
network that moves products to a firm’s target market through more than one marketing channel.
reverse channels
channel designed to return goods to their producers.
intensive distribution
distribution of a product through all available channels.
selective distribution
distribution of a product through a limited number of channels.
exclusive distribution
distribution of a product through a single wholesaler or retailer in a specific geographic region.
closes sales territories
exclusive geographic selling region of a distributor.
tying agreements
arrangement that requires a marketing intermediary to carry items other than those they want to sell.
channel captain
dominant and controlling member of a marketing channel.
gray goods
products manufactured abroad under license from a U.S firm and then sold in the U.S. market in completion with that firm’s own domestic output.
virtual marketing system (VMS)
planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain.
forward integration
process through which a firm attempts to control downstream distribution.
backward integration
process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw material.
corporate marketing system.
VMS in which a single owner operates the entire marketing channel.
administrated marketing system
VMS that achieves channel coordination when a dominant channel member exercises its power.
contractual system
VMS that coordinates channel activities through formal agreements among participants.
retail cooperative
group or retailers that establish a shared wholesaling operation to help them operate with chains.
franchise
contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchise.
supply chain
control of the activities of purchasing, processing, and delivery through which raw material are transformed into products and made available to final consumers.
upstream management
controlling part of the supply chain that involved raw materials, inbound logistics, and warehouse and storage facilities.
downstream management
controlling part of the supply chain that involved finished product storage, outbound logistics, marketing and sales, and customer service.
radio frequency identification (RFID)
technology that uses a tiny chip with identification information that can be read by a scanner using radio waves from a distance.
enterprise resource planning (ERP) system
software system that consolidates data from among a firm’s various business units.
third-part (contract) logistics firms
company that specializes in handling logistics activities for other firms.
sub optimization
condition that results when individual operations achieve their objectives but interfere with progress toward broader organization goals.
common carriers
businesses that provide transportation services as for hire carriers to the general public.
contract carriers
for hire transporters that do not offer their services to the general public.
private carriers
transporters that provide service solely for internally generated freight.
intermodal operations
combination of transport modes, such as rail and highway carriers, air and highway carriers, and water and air carriers to improve customer service and achieve cost advantages.
materials handling system
set of activities and other goods within factories, warehouses, and transportation terminal.
containerization
process of combining several unitized loads into a single, well-protected load for shipment.