| A | B |
|---|
| distribution 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 middleman - moves products from producer to final user |
| direct marketing channel | company sells directly to consumers |
| direct marketing channel | farmer sells at a produce stand |
| indirect marketing channel | contains one or more intermediary levels |
| indirect marketing channel | t-shirt produced and sold to consumers in retail stores |
| horizontal conflict | disagreements among members at the same level |
| vertical conflict | disagreements between members at different levels in the chain |
| conventional distribution channel | consists of one or more independent producers, wholesalers, |
| vertical marketing system | one member owns the organizations 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 | 2 or more companies at the same channel level join together either temporarily or permanently to pursue a new opportunity |
| horizontal marketing system | McDonald's restaurants in Wal-Mart stores |
| multichannel distribution system | a single firm develops 2 or more marketing channels to reach one or more customer segments |
| multichannel distribution system | Dell sells computers, parts, etc. through their website, retail stores, and through college campus bookstores |
| disintermediation | marketing channels replaced by technology and/or new types of intermediaries |
| disintermediation | ordering directly through the Internet |
