Marketing Channels and Supply Chain Management -- terms

marketing fundamentals -- part 10 -- terms

value delivery network -- a network made up of the company, suppliers, distributors, and ultimately customers to "partner" with each other to improve the performance of the entire system
marketing channel (distribution channel) -- a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer for business user
channel level -- a layer of intermediaries that perform some work in bringing the product and its ownership closer to the final buyer
direct marketing channel -- a marketing channel that has no intermediary levels
indirect marketing channel -- a channel containing one or more intermediary levels
channel conflict -- disagreement among marketing channel members on goals and roles -- you 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 (VMS) -- a distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contacts with them, or has so much power that they all cooperate
corporate VMS -- a vertical marketing system that combined successive stages of production and distribution under single ownership - channel leadership is established through common ownership
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
franchise organization -- a contractual vertical marketing system in which a channel member, called a franchiser, links several stages in the production-distribution process
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 joined together to follow a new marketing opportunity
multichannel distribution system -- a distribution system and which a single firm sets up two or more marketing channels to reach one or more customer segments
disintermediation -- the displacement of traditional resellers from a marketing channel by radical new types of intermediaries
intensive distribution -- stocking the product in as many outlets as possible
exclusive distribution -- giving a limited number of dealers exclusive rights to distribute the company's products in their territories
selective distribution -- they use of more than one, but fewer than all, of the intermediaries who are willing to carry the company's products
marketing logistics (physical distribution) -- the tasks involved in 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 -- managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers
distribution center -- a large, highly automated warehouse designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible
intermodal transportation -- combining two or more roads of transportation
integrated logistics management -- the logistics concept that emphasizes teamwork, both inside the company and among all the marketing channel organizations, to maximize the performance of the entire distribution system
third-party logistics (3PL) provider -- an independent logistics provider that performs any or all of the functions required to get its clients products to market