Principles of Marketing Chapter 14- Marketing Channels and Retailing

Marketing Channel
a business structure of interdependent organizations that eases the transfer of ownership as products move from producer to consumer or business user.
Channel Members
negotiate w/ one another, buy and sell products, and facilitates the change of ownership b/w buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer.
Form Utility
the elements of the composition and appearance of a product that make it desirable.
Time Utility
the increase in customer satisfaction gained by making a good or service available at the appropriate time.
Place Utility
the usefulness of a good or service as a function of the location at which it is made available.
Exchange Utility
the increased value of a product that is created as its ownership is transferred.
Retailers
a channel intermediary that sells mainly to consumers.
Merchant Wholesalers
organizations that buy goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to good, stores them in its own warehouses, and later ships them.
Agents and brokers
intermediaries who do not take a title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers.
Direct channel
to sell directly to consumers.
Dual Distribution
the use of two or more channels to distribute the same product to target markets.
Nontraditional Channels
nonphysical channels that facilitate the unique market access of products and services.
Strategic Channel Alliances
a cooperative agreement b/w firms to use the others already established distribution channel.
Intensive Distribution
a form of distribution aimed at having product available in every outlet where target customers might want to but it.
Selective Distribution
screening dealers to eliminate all but a few in any single area.
Exclusive Distribution
establishes one or a few dealers within a given area.
Arms Length Relationship
a relationship b/w companies that is loose, characterized by low relational investment and trust, and usually taking the form of a series of discrete transactions w/ no or low expectation of future interaction or service.
Cooperative Relationship
companies that take the form of informal partnership with moderate levels of trust and information sharing as needed to further each company’s goals.
Integrated Relationship
companies that are tightly connected, w/ linked processes across and b/w firm boundaries and high levels of trust and interfirm commitment.
Co-opetiton
mixes elements of cooperation and competition b/w two partners.
Channel Power
channel members ability to control or influence the behavior of other channel members.
Channel Control
occurs when one channel members power affects another members behavior.
Channel Captain
a channel member that exercises authority and power over the activities of other channel members.
Channel Conflict
a clash of goals and methods among the members of a distribution channel.
Horizontal Conflict
a channel conflict that occurs among channel members on the same level.
Vertical Conflict
a channel conflict that occurs b/w different levels in a marketing channel, most typically b/w the manufacturer and wholesaler or b/w the manufacturer and retailer.
Channel Partnering
the joint effort of all channel members to create a channel that serves customers and creates a competitive advantage.
Direct Retailing
the selling of products by representatives who work door-to door, office to office, or at home sales parties.
Direct marketing
techniques used to get consumers to make a purchase from their home, office, or other non-retail setting.
Franchisor
originates the trade name, product, methods of operation, and the like that grants operating rights to another party to sell its products.
Franchisee
An individual or business that is granted a right to sell another party’s product.
Retailing Mix
A combination of the six P’s- product, place, promotion, price, presentation, and personnel to sell goods and services to the ultimate consumer.
Destination Store
a store that consumers purposely plan to visit.
Atmosphere
the overall impression conveyed by a stores physical layout, decor, and surroundings.
Data Mining
the process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior.