Kotler/Keller – Chapter 12: Designing and Managing Integrated Marketing Channels

Define “Marketing Channel System”
The particular set of marketing channels a firm employs and decisions about it are among the most critical ones management faces.
Define “Push Strategy” vs. “Pull Strategy”.
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.
Define “Zero-Level Channel”
Also known as a “Direct Marketing Channel”, it consists of manufacturer selling directly to the final consumer (e.g., door-to-door sales)
Identify the five types service outputs which channels produce.
1. Desired lot size
2. Waiting and delivery time
3. Spatial convenience
4. Product variety
5. Service backup
Identify and define the 3 types of intermediaries.
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
Identify and define the 3 types of distribution strategies related to the number of intermediaries used.
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.
Identify 3 types of contractual vertical marketing systems.
1. Wholesaler-sponsored voluntary chains
2. Retailer cooperatives
3. Franchise organizations
Define “Horizontal Marketing System”
When two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity.
Define what is meant by a “Pure Click” company
A company that has launched a company without any previous existence as a firm.
Define “Channel Conflict” and identify 3 possible forms
What is generated when one channel member’s actions prevent another channel from achieving its goal.
Types: Vertical, Horizontal, and Multichannel
Identify 3 causes of Channel Conflict
1. Goal incompatibility
2. Unclear roles and rights
3. Differences in perceptions

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