Marketing Final Exam Key Terms Defined If Term Is In RED Will Not Be Included On Exam Chapter 10 1 Administered Vertical Marketing System VMS a Coordinates successive stages of production and distribution through the size and power of one of the parties a Disagreements among marketing channel members on goals roles and 2 Channel Conflict rewards 3 Channel Level a A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer 4 Contractual Vertical Marketing System VMS a Independent firms at different levels of production and distribution join together through contracts 5 Conventional Distribution Channel a Channel consisting of 1 independent producers retailers and wholesalers each a separate business seeking to maximize its own profits perhaps even at the expense of profits for the system as a whole 6 Corporate Vertical Marketing System VMS a Combines successive stages of production and distribution under single ownership 7 Direct Marketing Channel 8 Disintermediation a A marketing channel that has no intermediary levels a The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries 9 Distribution Center a A large highly automated warehouse designed to receive goods from various plants and suppliers take orders fill them efficiently and deliver goods to customers as quickly as possible 10 Exclusive Distribution a Giving a limited number of dealers the exclusive right to distribute the company s products in their territories 11 Franchise Organization a A contractual vertical marketing system in which a channel member called a franchisor links several stages in the production distribution process 12 Horizontal Marketing System a A channel arrangement in which 2 companies at one level join together to follow a new marketing opportunity 13 Inbound Logistics a Moving products and materials from suppliers to the factory 14 Indirect Marketing Channel a A marketing channel containing 1 intermediary levels 15 Integrated Logistics Management a The logistics concept that emphasizes teamwork both inside the company and among all the marketing channel organizations to maximize the performance of the entire distribution system 16 Intensive Distribution a Stocking the product in as many outlets as possible 17 Intermodal Transportation a Combining 2 modes of transportation 18 Marketing Channel Distribution Channel a A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user 19 Marketing Channel Design a Designing effective marketing channels by analyzing customer needs setting channel objectives identifying major channel alternatives and evaluating those alternatives 20 Marketing Channel Management a Selecting managing and motivating individual channel members and evaluating their performance over time 21 Marketing Logistics Physical Distribution a Planning implementing and controlling the physical flow of materials final goods and related information from points of origin to points of consumption to meet customer requirements at a profit a Moving products from the factory to resellers and ultimately to 22 Outbound Logistics customers 23 Reverse Logistics a Reusing recycling refurbishing or disposing of broken unwanted or excess products returned by consumers or resellers 24 Multichannel Distribution System a A distribution system in which a single firm sets up 2 marketing channels to reach 1 customer segments 25 Selective Distribution a The use of more than one but fewer than all the intermediaries who are willing to carry the company s products 26 Supply Chain Management a Managing upstream and downstream value added flows of materials final goods and related information among suppliers the company resellers and final consumers 27 Third Party Logistics 3PL a An independent logistics provider that performs any or all of the functions required to get a client s product to market 28 Value Delivery Network a A network composed of the company suppliers distributors and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value 29 Vertical Marketing System VMS a A channel structure in which producers wholesalers and retailers act as a unified system One channel member owns the others has contracts with them or has so much power that they all cooperate Chapter 11 1 Agent 2 Broker 3 Category Killer 4 Corporate Chains 5 Convenience Store 6 Department Store a A wholesaler who represents buyers or sellers on a relatively permanent basis performs only a few functions and does not take title to goods a A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together an assist in negotiation a A giant specialty store that carries a very deep assortment of a particular line a 2 outlets that are commonly owned and controlled a A small store located near a residential area that is open long hours 7 days a week and carries a limited line of high turnover convenience goods a A retail store that carries a wide variety of product lines each operated as a separate department managed by specialist buyers or merchandisers a A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume a An off price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer s surplus discontinued or irregular goods a A contractual association between a manufacturer wholesaler or service organization Franchisor and independent business people Franchisees who buy the right to own and operate 1 units in the franchise system 7 Discount Store 8 Factory Outlet 9 Franchise 10 Franchisee a Pays up front costs makes monthly payments to franchisor runs business by franchisor s rules and procedures and buys materials from franchisor and or approved suppliers 11 Franchisor a Assigns territory provides financial aid advice offers merchandise and supplies at competitive prices provides training and support business expansion using O P M 12 Independent Off Price Retailer a An off price retailer that is either independently owned and run or is a division of a larger retail corporation 13 Manufacturers Sales Branches a Wholesaling by sellers or buyers themselves rather than through independent