Chapter 10 1 Administered VMS a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties 2 Channel Conflict disagreements among marketing channel members on goals roles and rewards who should do what and for what rewards 3 Channel Level a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer 4 Contractual VMS a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts 5 Conventional Distribution Channel a channel consisting of one or more independent producers wholesalers and retailers 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 VMS a vertical marketing system that combines successive stages of production and distribution under single ownership channel leadership is established through common ownership 7 Direct Marketing Channel a marketing channel that has no intermediary levels 8 Disintermediation 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 Franchise Organization a contractual vertical marketing system in which a channel member called a franchisor links several stages in the production distribution process 10 Horizontal Marketing System a channel management in which two or more companies at one level join together to follow a new marketing opportunity 11 Marketing Channel Distribution Channel a set of interdependent organizations that help make a product or service available for the use or consumption by the consumer or business user 12 Marketing Channel Management selecting managing and motivating individual channel members and evaluation their performance over time 13 Marketing Logistics physical distribution 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 14 Reverse logistics reusing recycling refurbishing or disposing of broken unwanted or excess products returned by consumers or resellers 15 Multichannel distribution system a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments 16 Supply chain management managing upstream and downstream value added flows of materials final goods and related information among suppliers the company resellers and final consumers 17 Value delivery network 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 18 Vertical marketing system VMS 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 a wholesaler who represents buyers or sellers on a relatively permanent basis performs only a few functions and does not take title to goods 2 Broker a wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation 3 Category killer a giant specialty store that carries a very deep assortments of a particular line 4 Corporate chains two or more outlets that are commonly owned and controlled 5 Convenience store a small store located near a residential area that is open long hours seven days a week and carries a limited line of high0turnover convenience goods 6 Department store a retail store that carries a wide variety of product lines each operated as a separate department managed by specialist buyers or merchandisers 7 Discount store a straight reduction in price on purchases during a stated period of time or in larger quantities 8 Factory outlet an off price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturers surplus discontinued or irregular goods 9 Franchise a contractual association between a manufacturer wholesaler or service organization a franchisor and independent businesspeople franchises who buy the right to own and operate one or more units in the franchise system 10 Independent off price retailers an off price retailer that is either independently owned and run or is a division of a larger retail corporation 11 Merchant wholesaler an independently owned wholesale business that takes title to the 12 Off price retailer a retailer that buys at less than regular wholesale prices and sells at less than merchandise it handles retail 13 Retailer a business whose sales come primarily from retailing 14 Retailing all the activities involved in selling goods or services directly to final consumers for their personal nonbusiness use 15 Service retailer a retailer whose product line is actually a service examples include hotels airlines banks colleges and many others 16 Shopping center a group of retail business built on a site that is planned developed owned and managed as a unit that line 17 Specialty store a retail store that carries a narrow product line with a deep assortment within 18 Store atmosphere an important element in the resellers product arsenal retailers want to create a unique store experience that suits the target market and moves customers to buy 19 Supermarket a large low cost low margin high volume self service store that carries a wide variety of grocery and household products 20 Superstore a store much larger than a regular supermarket that offers a large assortment of routinely purchased food products nonfood items and services 21 Wholesaler a firm engaged primarily in wholesaling activities 22 Wholesaling all the activities involved in selling goods and services to those buying for resale or business use Chapter 12 1 Advertising any paid form of nonpersonal presentation and promotion of ideas goods or services by an innovation to final adoption 2 Advertising budget the dollars and other resources allocated to a product or company advertising program 3 Advertising media the vehicles through which advertising messages are delivered to their intended audiences 4 Advertising objective a specific communication task to be accomplished with a specific target audience during a specific