Marketing Management (Kotler) – Ch 15 Designing and Managing Integrated Marketing Channels

What are marketing channels?
sets of interdependent organizations participating in the process of making a product or service available for use or consumption.
In importance of channels, what is a marketing channel system?
the particular set of marketing channels a firm employs, and decisions about it are among the most critical ones management faces.
In importance of channels, what is a push strategy?
uses the manufacturer’s sales force, trade promotion money, or
other means to induce intermediaries to carry, promote, and sell the product to end users.
In importance of channels, what is a pull strategy?
when the manufacturer uses advertising, promotion, and other forms of communication to
persuade consumers to demand the product from intermediaries, thus inducing the intermediaries
to order it.
What are hybrid channels (aka multichannel marketing)?
occurs when a single firm uses two or more marketing channels to reach customer segments.
What is channel integration?
when firms make sure that their channels work well together and match each target customer’s preferred ways of doing business.
What is demand chain management?
a multi-step operational supply chain management (SCM) process used to create reliable forecasts, align inventory levels with peaks and troughs in demand, and enhance profitability for a given channel or product.
What is a value network?
a system of partnerships and alliances that a firm creates to source, augment, and deliver its offerings.
What is a zero level channel (aka direct marketing channel)?
consists of a manufacturer selling
directly to the final customer.
What are jobbers?
essentially small-scale wholesalers, who sell to small retailers.
What are the 3 types of shoppers?
1) service/quality customers, (2) price/value customers and (3) affinity customers
In identifying major channel alternatives, what is exclusive distribution strategy?
when only certain retailers are given the option of carrying a product in its store. It is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographical area to carry the supplier’s product.
In identifying major channel alternatives, what is selective distribution strategy?
relies on only some of the intermediaries willing to carry a particular product.
In identifying major channel alternatives, what is intensive distribution strategy?
places the goods or services
in as many outlets as possible. This strategy serves well for snack foods, soft drinks, newspapers, candies, and gum—products consumers buy frequently or in a variety of locations.
What is channel power?
the ability to alter channel members’ behavior so they take actions they would not have taken otherwise.
What is coercive power?
Example of a manufacturer who threatens to withdraw a resource or terminate a relationship if intermediaries fail to cooperate.
What is reward power?
Example of a manufacturer who offers intermediaries an extra benefit for performing specific
acts or functions.
What is legitimate power?
Example of a manufacturer who requests a behavior that is warranted under the contract
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