Value Delivery Network
The company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system
Marketing Channel
a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
Channel Conflict
disagreement among marketing channel members on goals and roles-who should do what and for what rewards
Conventional distribution channel
a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits even at the expense of profits for the system as a whole
Vertical marketing system
a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels
Corporate VMS
a vertical marketing system that combines successive stages of production and distribution under single ownership- channel leadership is established through common ownership
Franchise
a business established or operated under an authorization to sell or distribute a company's goods or services in a particular area
Contractual VMS
a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone
Administered VMS
a vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power of one of the parties
Horizontal Marketing System
a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
Multichannel Distribution System
a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments
Disintermediation
the cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermediaries
Channel Design
Designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them
Marketing Channel Management
selecting, managing, and motivating individual channel members and evaluating their performance over time
Marketing Logistics
planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit
Supply Chain Management
Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
Retail Convergence
Situation in which similar merchandise is available from multiple retail outlets, resulting in the blurring of distinctions between type of retailer and merchandise offered.
Wholesaling
all activities involved in selling goods and services to those buying for resale or business use
Merchant Wholesalers
independently owned firms that take title to the merchandise they handle
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
Manufacturers' sales branches and offices
wholesaling by sellers or buyers themselves rather than through independent wholesalers
Retailing
All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor
Sales Promotion
Short-term incentives to encourage the purchase or sale of a product or service.
Personal Selling
Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships
Public Relations
Any activity designed to create a favorable image of a business, its products, or its policies
Direct Marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Integrated Marketing Communications
Consistent, clear, and compelling company and brand messages
Pull Strategy
Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they'll request the products from retailers. Creates a vacuum that "pulls" the product through the channel.
Push Strategy
a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise
Informative Advertising
Advertising that benefits consumers by giving information about a product
Persuasive Advertising
advertising designed to appeal to your emotions to influence you to buy, but does not provide much information
Reminder Advertising
Advertising used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle
Personal Selling
The personal presentation by the firm's sales force for the purpose of making sales and building customer relationships
Sales Force Management
The analysis, planning, implementation, and control of sales force acivities
Territorial Sales Force Structure
Salesperson assigned to a geographic territory and sells full line
Product Sales force structure
Salesperson specializes in selling only a portion of the company's products
Customer (market) sales force structure
Salespeople specialize in selling to certain customers or industries
Training
Includes learning about customers, the company and its products, and the selling process
Sales Quotas
Standards that state the amount a salesperson should sell
Sales Promotion
Short-term incentives to encourage purchase or sales of a product or service
Trade Promotions
Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to the consumer