MGKT CHAPTER 13
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MGKT CHAPTER 13
Important things from slides in class
Explain what a marketing channel
A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.
List the Marketing Channel Functions
Specialization and division of labor
Providing contact efficiency
Define A Discrepancy of Quantity
The difference between the amount of product produced and the amount an end user wants to buy.
Describe a Discrepancy of Assortment
The lack of all the items a customer needs to receive full satisfaction from a product or products.
Describe a Temporal Discrepancy
A situation that occurs when a product is produced but a customer is not ready to buy it.
Decribe a Spatial Discrepancy
The difference between the location of a producer and the location of widely scattered markets.
List the types of channel intermediaries
Retailer, Merchant Wholesaler, Agents and Brokers
describe the Retailer
A channel intermediary that sells mainly to customers\
They Take Title to Goods
Describe the Merchant Wholesaler
An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.
Describe the Agents and Brokers
Wholesaling intermediaries who facilitate the sale of a product by representing channel members.
Do NOT Take Title to Goods
Describe the Transactional Functions
done by Retailers
List the Logistical Functions
done by Wholesalers
List the Facilitating Functions
done by Agents and Brokers
The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.
Describe the channel structures for consumer and business products and discuss alternative channel arrangements
Define a Direct Channel
A distribution channel in which producers sell directly to consumers.
Describe CONSUMER CHANNELS
Describe BUSINESS CHANNELS
Decribe ALTERNATIVE CHANNELS
List the Alternative Channel Arrangements
Strategic channel alliances
Discuss the issues that influence channel strategy
List the different channel relationship types
Arm’s Length Relationship
Define Arm’s Length Relationship
Fulfills a one time or unique need; low involvement/risk
Parties unable to develop relationship; low trust level
Define a Cooperative Relationship
Formal contract without capital investment/long-term commitment; “happy medium”
Some parties may need more relationship definition
Describe a Integrated Relationship
Closely bonded relationship; explicitly defined relationships
High capital investment; any failure could affect every channel member
Explain channel leadership
A member of a marketing channel that exercises
authority/power over the activities of other members
Describe Channel Conflict
A clash of goals and methods between distribution channel members
Describe Channel Partnering
The joint effort of all channel members to create a supply chain that serves customers and creates a competitive advantage
Discuss channels and distribution decisions in global markets
Distribute directly or through foreign partners
Legal and infrastructure differences
Identify the special problems and opportunities associated with distribution in service organizations