ch 15 Marketing Channels and Supply Chain Management

This set of vocabulary flashcards covers the fundamental concepts of marketing channels, types of intermediaries, supply chain management, and distribution intensity levels.

Marketing Channel

A set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer.

Channel of Distribution

A group of marketing intermediaries that join together to transport and store goods from producers to consumers.

Discrepancy of Quantity

The difference between the amount of product produced and the amount an end user wants to buy.

Discrepancy of Assortment

The lack of all the items a customer needs to receive full satisfaction from a product or products.

Retailer

A channel intermediary that sells mainly to customers.

Merchant Wholesaler

An institution that buys goods from manufacturers, takes title to goods, stores them, and resells and ships them.

Agents and Brokers

Wholesaling intermediaries who facilitate the sale of a product by representing channel members and do NOT take title to goods.

Supply Chain Management

A management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value.

Channel Captain

A dominant company that exerts the most power in a distribution channel.

Intensive Distribution

A level of distribution intensity aimed at achieving mass market selling for convenience goods using many intermediaries.

Selective Distribution

A level of distribution intensity achieved by working with several selected intermediaries for shopping and some specialty goods.

Exclusive Distribution

A level of distribution intensity involving work with a single intermediary for specialty goods and industrial equipment.