Vertical Marketing Systems – Flashcards
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Vertical marketing systems
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planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain
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forward integration
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process through which a firm attempts to control downstream integration
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backward integration
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process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials
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corporate marketing systems
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VMS in which a single owner operates the entire marketing channel
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administered marketing system
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VMS that achieves channel coordination when a dominant channel member exercises his power
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contractual marketing system
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VMS that coordinates channel activities through formal agreements among participants
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retail cooperative
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group of retailers that establisha shared wholesaling operation to help them compete with chains
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franchise
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contractual agreement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser
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supply chain
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control of the activities of purchasing, processing, delivery through which raw materials are transformed into products and made available to final customers
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upstream management
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controlling part of the supply chain that involves raw materials, inbound logistics, and warehouse and storage facilities
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downstream management
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controlling part of the supply chain that involves finished product storage, outbound logistics, marketing and sales, and customer service
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Radio frequency identification
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technology that uses a tiny chip with identification information that can be read by a scanner using radio waves from a distance
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enterprise resource planning system
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software system that consolidates data from among a firm's various business units
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third-party (contract) logistics firms
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company that specializes in handling logistics activities for other firms
