Representatives of one or more manufacturers who sell products on their behalf to consumers, wholesalers, and distributors but do not take title to them.
A firm that sells a high volume of a product in a particular category.
A dispute among channel members.
A strong channel member that wields channel power.
The firms a company partners with to actively promote and sell a product as it travels through its marketing channel to users.
The ability to influence a channel partner’s goals and efforts.
Miniature supermarkets that stock a limited assortment of products. Many of them sell gasoline and are open twenty-four hours a day.
conventional marketing system
A marketing system in which the channel members have no affiliation with one another.
Stores that carry a wide variety of household and personal types of merchandise such as clothing and jewelry.
A marketing channel that consists of a producer and a consumer.
Delivering personalized promotional materials directly to individual consumers. Materials may be delivered via mail, catalogs, Internet, e-mail, or telephone, or in person.
A situation that occurs when intermediaries are cut out of marketing channels.
Businesses that purchase large quantities of products, can store products, can sell products, can deliver desired quantities of products, and can offer services. Distributors generally take title to products and employ a sales force to actively market their products.
Stores that specialize in selling over-the-counter medication, prescriptions, and health and beauty products and offer services such as photo developing.
A strategy of selling products through one or a few retailers in a specific location.
free on board (FOB)
A contract term that designates which party is responsible for a product’s shipping costs and owns the title to the goods and when.
A market in which a producer hasn’t authorized its products to be sold.
Conflict that occurs between organizations of the same type.
horizontal marketing system
A system in which two companies at the same channel level agree to cooperate with one another to sell their products.
A marketing channel that consists of a producer, a consumer, and one or more intermediaries.
Intermediary firms that sell products that businesses or government departments and agencies use but don’t resell.
A strategy of selling a product in as many outlets as possible.
Third parties that facilitate the supply and sale of products from manufacturers to users.
manufacturers’ sales offices or branchesSelling units that work directly for manufacturers. A type of factory outlet store.
The group of organizations involved in selling and promoting goods from the time they are produced until they reach end users.
Wholesalers that take title to the goods.
A contract that specifies information that is proprietary, or owned by a channel partner, and how, if at all, the other partners can use that information.
nonstore retailingRetailing not conducted in stores.
Stores that sell a variety of discount merchandise that consists of seconds, overruns, and the previous season’s stock other stores have liquidated.
Small temporary stores designed to generate “buzz” for a retailer and drive customers to its regular stores.
A strategy in which consumers are targeted with sales promotions such as coupons, contests, games, rebates, mail-in offers.
A strategy in which businesses are the target of promotions so products get “pushed” through their marketing channels and sold to consumers.
resale price maintenance agreement
An agreement whereby a producer of a product restricts the price a retailer can charge for it.
Businesses that purchase products from manufacturers, wholesalers, agents, or distributors and then sell them to consumers.
A strategy of selling products at specific outlets and/or locations.
Stores that sell a certain type of product.
Products retailers produce themselves or pay manufacturers to produce for them.
strategic channel alliance
An agreement formed by two or more firms to deliver their products via a channel. The products and organizations can be similar or different.
Self-service retailers that provide a full range of food products to consumers as well as some household products.
Large department stores that carry a broad array of general merchandise as well as groceries. Superstores are also referred to as hypermarkets and supercenters.
All the organizations that participate in the production, promotion, and delivery of a product or service from the producer to the end consumer.
supply chain management
The process of managing and refining supply chains so as to make them as efficient as possible.
Conflict that occurs between two different types of members of the channel.
vertical marketing system
A system in which channel members formally agree to cooperate with one another.
Supercenters that sell products at a discount to people who pay an annual membership fee to join them.
Businesses that purchase products in large quantities, can store the products, can break the pallets down into cases or units, and can deliver the desired quantity of a product to distributors, retailers, and/or consumers.