a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts. (p405) Franchise organization a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production – distribution process. (p405) Administered VMS a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties. (p407)
Horizontal marketing system a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. (p407) Multichannel distribution system a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. (p408) Disintermediation the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries. (p409) Marketing channel design designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating those alternatives. (p411) Intensive distribution stocking the product in as many outlets as possible. (p412) Exclusive distribution giving a limited number of dealers the exclusive right to distribute the company’s products in their territories. (p412) Selective distribution the use of more than one but fewer than all of the intermediaries who are willing to carry the company’s products. (p413) Marketing channel management selecting, managing, and motivating individual channel members and evaluating their performance over time. (p415) Marketing logistics (or physical distribution) planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit. (p418) 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. (p418) 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. (p422) Intermodal transportation combining two or more modes of transportation. (p424) Integrated logistics management the logistics concept that emphasizes teamwork – both inside the company and among all of the marketing channel organizations – to maximize the performance of the entire distribution system. (p425) Third-party logistics (3PL) provider an independent logistics provider that performs any or all of the functions required to get a client’s product to market.
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