question

sets of interdependent organizations involved in the process of making a product or service available for use or consumption

answer

marketing channels

question

the particular set of marketing channels employed by a firm

answer

marketing channel system

question

when the manufacturer uses its sales force and trade promotion money to induce intermediaries to carry, promote, and sell the product to end users

answer

push strategy

question

when the manufacturer uses advertising and promotion to persuade consumers to ask intermediaries for the product, thus inducing the intermediaries to order it

answer

pull strategy

question

a single firm uses two or more marketing channels to reach one or more customer segments

answer

multichannel marketing

question

multiple channels work seamlessly together and match each target customer's preferred ways of doing business, regardless of whether customers are online, in the store, or on the phone

answer

omnichannel marketing

question

the strategies and tactics of selling through one channel reflect the strategies and tactics of selling through one or more other channels

answer

integrated marketing channel system

question

the process of designing the supply chain based on adopting a target market perspective and working backward

answer

demand chain planning

question

a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings

answer

value network

question

a manufacturer selling directly to the final customer

answer

zero-level channel (direct marketing channel)

question

small-scale wholesalers who sell to small retailers

answer

jobbers

question

when consumers physically examine a product and collect information in a store but make their actual purchase from the retailer later online, or from a different retailer altogether, typically to secure a lower price

answer

showrooming

question

severely limiting the number of intermediaries in order to maintain control over the service level and outputs offered by resellers

answer

exclusive distribution

question

the use of more than a few but less than all of the intermediaries who are willing to carry a particular product

answer

selective distribution

question

the manufacturer placing the goods or services in as many outlets as possible

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intensive distribution

question

the ability to alter channel members' behavior so that they take actions they would not have taken otherwise

answer

channel power

question

an independent producer, wholesaler(s), and retailer(s)

answer

conventional marketing channel

question

producer, wholesaler(s), and retailer(s) acting as a unified system

answer

vertical marketing system (VMS)

question

building a planned, professionally managed, vertical marketing system that meets the needs of both manufacturer and distributors

answer

distribution programming

question

two or more unrelated companies put together resources or programs to exploit an emerging market opportunity

answer

horizontal marketing system

question

a company or site offers to transact or facilitate the selling of products or services online

answer

e-commerce

question

companies that have launched a Website without any previous existence as a firm

answer

pure-click

question

existing companies that have added an online site for information and/or e-commerce

answer

brick-and-click

question

when one channel member's actions prevent the channel from achieving its goal

answer

channel conflict

question

when channel members are brought together to advance the goals of the channel as opposed to their own potentially incompatible goals

answer

channel coordination

question

an effort by one organization to win the support of the leaders of another by including them in advisory councils, boards of directors, and the like

answer

co-optation

question

when each side sends a person or group to meet with its counterpart to resolve a conflict

answer

diplomacy

question

when a neutral third party skilled in conciliating two parties' interests is brought into resolve a dispute

answer

mediation

question

to resolve a conflict, when two parties agree to present their arguments to one or more arbitrators and accept their decision

answer

arbitration

question

agreement in which producers of strong brands sell their products to dealers only if dealers purchase related products or services, such as other products in the brand line

answer

tying agreements

question

wholesalers and retailers

answer

merchants

question

brokers, manufacturers' representatives, sales agents

answer

agents

question

transportation companies, independent warehouses, banks, advertising agencies

answer

facilitators

question

contains two intermediaries

answer

two-level channel

question

contains three intermediaries

answer

three-level channel

question

the number of units the channel permits a typical customer to purchase on one occasion

answer

desired lot size

question

the average time customers wait for receipt of goods

answer

waiting and delivery time

question

the degree to which the marketing channel makes it easy for customers to purchase the product

answer

spatial convenience

question

the assortment provided by the marketing channel

answer

product variety

question

add-on services (credit, delivery, installation, repairs) provided by the channel

answer

service backup

question

calls for the producer to establish a price list and schedule of discounts and allowances that intermediaries see as equitable and sufficient

answer

price policy

question

refers to payment terms and producer guarantees

answer

conditions of sale

question

define the distributors' territories and the terms under which the producer will enfranchise other distributors

answer

distributors' territorial rights

question

must be carefully spelled out, especially in franchised and exclusive agency channels

answer

mutual services and responsibilities

question

a manufacturer threatens to withdraw a resource or terminate a relationship if intermediaries fail to cooperate. this power can be effective, but its exercise produces resentment and can lead the intermediaries to organize countervailing power

answer

coercive power

question

the manufacturer offers intermediaries an extra benefit for performing specific acts or functions. reward power typically produces better results than coercive power, but intermediaries may come to expect a reward every time the manufacturer wants a certain behavior to occur

answer

reward power

question

the manufacturer requests a behavior that is warranted under the contract. as long as the intermediaries view the manufacturer as a legitimate leader, legitimate power works

answer

legitimate power

question

the manufacturer has special knowledge that intermediaries value. once the intermediaries acquire this expertise, however, expert power weakens. the manufacturer must continue to develop new expertise so intermediaries will want to continue cooperating

answer

expert power

question

the manufacturer is so highly respected that intermediaries are proud to be associated with it

answer

referent power

question

organizes their relationships in three areas: demand-sales management, supply-side management, and enablers and integrators

answer

efficient consumer response (ECR) practices

question

collaborative practices to stimulate consumer demand by promoting joint marketing and sales activities

answer

demand-side management

question

collaborative practices to optimize supply (with a focus on joint logistics and supply chain activities)

answer

supply-side management

question

collaborative information technology and process improvement tools to support joint activities that reduce operational problems, allow greater standardization, and so on

answer

enables and integrators

question

independent grocery stores

answer

kirana shops

question

one channel member that owns or franchises the others or has so much power that they all cooperate

answer

channel captain (channel steward)

question

combines successful stages of production and distribution under single ownership

answer

corporate VMS

question

coordinates successful stages of production and distribution through the size and power of one of the members

answer

administered VMS

question

consists of independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone

answer

contractual VMS

question

wholesalers organize voluntary chains of independent retailers to help standardize their selling practices and achieve buying economies in competing with large chain organizations

answer

wholesaler-sponsored voluntary chains

question

retailers take the initiative and organize a new business entity to carry on wholesaling and possibly some production. members concentrate their purchases through the retailer co-op and plan their advertising jointly, sharing in profits in proportion to their purchases. nonmember retailers can also buy through the co-op but do not share in the profits

answer

retailer cooperatives

question

a channel member called a franchisor might link several successive stages in the production-distribution process. franchising has been the fastest-growing retailing development in recent years

answer

franchise organizations

question

animated characters that act as company representatives, personal shopping assistants, Website guides, or conversation partners

answer

avatars

question

third parties that add value by aggregating information about alternatives

answer

infomediaries

question

third parties that link buyers and sellers

answer

market makers

question

buyers can swap stories about suppliers' products and services

answer

customer communities

question

target customers with a mobile promotion while they are within a defined geographical space, typically near or in a store

answer

geofencing

question

occurs between channel members at the same level

answer

horizontal channel conflict

question

occurs between different levels of the channel

answer

vertical channel conflict

question

exists when the manufacturer has established two or more channels that sell to the same market

answer

multichannel conflict

question

dealers not to handle competitors' products

answer

exclusive dealing

question

producers of a strong brand sometimes sell it to dealers only if they will take some or all of the rest of the line

answer

full-line forcing

Chapter 17: Designing and Managing Integrated Marketing Channels – Flashcards

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