Insourcing a practice in which a company contracts

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Insourcing – a practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations Channel of distribution – the series of firms or individuals that facilitates the movement of a product from the producer to the final customer Channel intermediaries – firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user Breaking bulk – dividing larger quantities of goods into smaller lots in order to meet the needs of buyers Creating assortments – providing a variety of products in one location to meet the needs of buyers Facilitating functions – functions of channel intermediaries that make the purchase process easier for customers and manufacturers Disintermediation (of the channel of distribution) – the elimination of some layers of the channel of distribution in order to cut costs and improve the efficiency of the channel Knowledge management – a comprehensive approach to collecting, organizing, storing, and retrieving a firm’s information assets Wholesaling intermediaries – firms that handle the flow of products from the manufacturer to the retailer or business user Independent intermediaries – channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers Merchant wholesalers – intermediaries that buy goods from manufacturers (take title to them) and sell to retailers and other business-to-business customers Take title – to accept legal ownership of a product and assume the accompanying rights and responsibilities of ownership
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Merchandise agents or brokers – channel intermediaries that provide services in exchange for commissions but never take title to the product Channel levels – the number of distinct categories of intermediaries that populate a channel of distribution Hybrid marketing system – a marketing system that uses a number of different channels and communication methods to serve a target market Conventional marketing system – a multiple-level distribution channel in which channel members work independently of one another Vertical marketing system (VMS) – a channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels Horizontal marketing system – an arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose Intensive distribution – selling a product through all suitable wholesalers or retailers that are willing to stock and sell product Exclusive distribution – selling a product only through a single outlet in a particular region Selective distribution – distribution using fewer outlets than intensive distribution but more than exclusive distribution Channel leader – a firm at one level of distribution that takes a leadership role, establishing operating norms and processes based on its power relative to other channel members
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  • Spring '08
  • billthompson
  • Marketing, organization Marketing plan

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