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Distribution Channels (marketing channels)- | The routes followed in the process of making a product or service available for use or consumption by the consumer or business user. |
Intermediary | A business involved in activities that move products from the producer to the final user; also known as a middleman or channel member. |
Direct marketing channel | A marketing channel that has no intermediaries; the company sells directly to consumers. |
Indirect marketing channel | A channel containing one or more intermediary levels |
Channel conflict | Disagreements among marketing channel members about goals, roles, and rewards. |
Conventional distribution channel | A channel consisting of one or more independent producers, wholesaler, and retailers, each of which is a separate business making its own decisions about providing what its customers want. |
Vertical marketing system (VMS)- | A distribution channel in which one member (Perhaps the manufacturer) owns the organization at the other levels in the channel, has contracts with them, or has so much power that they all cooperate and act as a unit. |
Horizontal marketing system | A channel arrangement in which two or more companies at the same channel level join together either temporality or permanently to pursue a new opportunity. |
Multichannel distribution system (hybrid marketing channel)- | A distribution system in which a single firm develops two or more marketing channel to reach one or more customer segments. |
Disintermediation | The displacement of traditional intermediaries from a marketing channel as a result of technological advances and the appearance of new types of intermediaries. |
Marketing logistics | aka physical distribution. Tasks involved in managing the physical flow of materials, final goods, and related information |
supply chain management | system for coordinating inbound, outbound, and reverse distributions. |
inbound distribution | movement of products and materials from suppliers to the factory |
outbound distribution | movement of products from the factory to resellers and consumers |
reverse distribution | movement of broken, unwanted or excess products returned by consumers or resellers. |
storage warehouse | large building used used to store goods until they can be sold. Moderate to long time |
distribution center | large, highly automated warehouse designed to receive goods, take and fill orders, and deliver goods as quickly as possible. |
just-in-time logistics system | inventory management that provides shipment of new stock exactly when needed in the correct amount. |
intermodal transportation | combination of 2 or more modes of transportation to maximize advantages of each. |
Integrated logistics management | logistic concept emphasizes teamwork, both within company and marketing channels, to maximize performance of entire distribution system |
cross-functional teamwork | working together inside the company to coordinate logistics decisions related to marketing, sales, finance, operations and purchasing to create high market satisfaction at a reasonable cost. |
logistics partnerships | working with channel partners outside company to meet goals of efficiency and lowering costs while satisfying customers and improving whole channel distribution |
third-party logistics provider (3PL) | independent logistics provider that performs any or all of the functions required to get the client's product to market |