ch 12 Final Review – Flashcards
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Conventional distribution systems
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Conventional distribution systems consist of one or more independent channel members. •Often results in poor performance
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Vertical marketing systems (VMSs) consists of producers, wholesalers, and retailers acting as a unified system and consist of:
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consists of producers, wholesalers, and retailers acting as a unified system and consist of: •Corporate marketing systems •Contractual marketing systems •Administered marketing systems
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Corporate vertical marketing system-
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Controls production and distribution under single ownership. •Kroger •Gallo
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Contractual vertical marketing system:
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Independent firms who join together through contracts *The most common form is franchise organization 3 types 1. Manufacturer-sponsored retailer franchise system - Ford dealer and Do It Best Hardware 2. Manufacturer-sponsored wholesaler franchise system - Coke and Budweiser 3. Service firm-sponsored retailer franchise system -Mcdonalds and Burger King
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1. Manufacturer-sponsored retailer franchise system Contractual vertical marketing system
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- Ford dealer and Do It Best Hardware
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2. Manufacturer-sponsored wholesaler franchise system Contractual vertical marketing system
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- Coke and Budweiser
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3. Service firm-sponsored retailer franchise system Contractual vertical marketing system
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-Mcdonalds and Burger King
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Administered vertical marketing system:
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A few dominant channel members. Leadership comes from size and power •Wal-Mart •Kraft
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Horizontal marketing systems:
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two or more companies join together for a new marketing opportunity. -banks in grocery stores -Mcdonalds in gas stations in china
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Changing Channel Organization Disintermediation
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- producers cut out intermediaries and go directly to final buyers. (dell, Nook, and netflix)
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Cross-Docking
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•a practice that involves unloading products from suppliers, sorting products, and quickly reloading products onto its trucks. •The package never hits the floor.
