Kotler/Keller – Chapter 12: Designing and Managing Integrated Marketing Channels – Flashcards
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The particular set of marketing channels a firm employs and decisions about it are among the most critical ones management faces.
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Define "Marketing Channel System"
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Push: a sales force, trade promotions, or other means to induce intermediaries to carry and sell a product to consumers. Pull: using advertising, promotion and other forms of communication to persuade consumers to demand the product from intermediaries, thus forcing intermediaries to order the product.
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Define "Push Strategy" vs. "Pull Strategy".
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Also known as a "Direct Marketing Channel", it consists of manufacturer selling directly to the final consumer (e.g., door-to-door sales)
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Define "Zero-Level Channel"
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1. Desired lot size 2. Waiting and delivery time 3. Spatial convenience 4. Product variety 5. Service backup
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Identify the five types service outputs which channels produce.
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1. Merchants: wholesalers and retailers that buy, take title to, and resell merchandise 2. Agents: search for customers and may negotiate on the producer's behalf but do not take title to the goods 3. Facilitators: assist in the distribution process but neither take title nor negotiate the purchase or sales
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Identify and define the 3 types of intermediaries.
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1. Exclusive Distribution: severely limits the number of intermediaries and is appropriate when the producer wants more knowledgeable, dedicated resellers 2. Selective Distribution: relies on only some intermediaries willing to carry a particular product. This provides more control and less cost than intensive distribution. 3. Intensive Distribution: places goods or services in as many places as possible. Often used for convenience goods.
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Identify and define the 3 types of distribution strategies related to the number of intermediaries used.
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1. Wholesaler-sponsored voluntary chains 2. Retailer cooperatives 3. Franchise organizations
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Identify 3 types of contractual vertical marketing systems.
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When two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.
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Define "Horizontal Marketing System"
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A company that has launched a company without any previous existence as a firm.
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Define what is meant by a "Pure Click" company
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What is generated when one channel member's actions prevent another channel from achieving its goal. Types: Vertical, Horizontal, and Multichannel
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Define "Channel Conflict" and identify 3 possible forms
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1. Goal incompatibility 2. Unclear roles and rights 3. Differences in perceptions
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Identify 3 causes of Channel Conflict
