A set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer.
Marketing Channel (Channel of Distribution)
All parties in the marketing channel that 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.
The connected chain of all the business entities, both internal and external to the company, that perform or support the marketing channel functions.
The differenece between the amount of product produced and the amount an end user wants to buy.
Discrepancy of Quantity
The lack of all the items a customer needs to recieve full satisfaction from a product or products.
Discrepancy of Assortment
A situtation that occurs when a product is produced but a customer is not ready to buy it.
The difference between the location of a producer and the location of widely scattered markets.
A channel intermediary that sells mainly to consumers.
An institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or reatialers and that receives and takes title to goods, stores them in its own warehouses, and later ships them.
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.
Agents and Brokers
The efficient and cost-effective forward and reverse flow as well as storage of goods, services, and related information, into, through, and out of channel member companies.
A distribution channel in which producers sell directly to consumers.
The use or two or more channels to distribute the same product to target markets.
Dual Distribution (Multiple Distribution)
A cooperatuve agreement between business firms to use the other's already established distribution channel.
Strategic Channel Alliance
A form of distribution aimed at having a product available in every outlet where target customers might want to buy it.
A form of distribution achieved by screening dealers to eliminate all but a few in any single area.
A form of distribution that establishes one or a few dealers within a given area.
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/low expectation of future interaction or service.
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.
A relationship between companies that is tightly connected, with linked processes across and between firms boundaries, and high levels of trust and interfirm commitment.
The capacity of a particular marketing channel member to control or influence the behavior of other channel memebers.
A situation that occurs when one marketing channel member intentionally affects another member's behavior.
A member of a marketing channel that exercises authority and power over the activities of other channel members.
Channel Leader (Channel Captain)
A clash of goals and methods between distribution channel members.
A channel conflict that occurs among channel members on the same level.
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.
The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage.