deca marketing CM

channel management

exclusive dealing

distribution strategy forbidding dealers from carrying competitors’ products

• considered illegal because it restricts competition

• violates antitrust laws → can lead to monopolies

only legal in certain situations

• ex: franchisors requiring franchisees to see only their products, etc

channel conflict

occurs when channel members compete among themselves for customers

• selling different products through different channels reduces channel conflict

• selling directly to end users, slotting fees, and requiring members to sell exclusively can create channel conflict

producer

makes or provides goods/services

• can include manufacturers

intermediary

operate between produce and user to help in the movement of goods/services

• ex: car dealership & renter cal service

grey market

involves the buying and selling of products through channels other than what was originally intended

• purchasing and reselling

• not illegal but unethical and bad for retailers

black market

involves the buying and selling of banned commodities like guns through illegal trade

vertical channel conflict

conflicts among members at different levels in a channel

• ex: manufacturer and retailer

horizontal channel conflict

conflict among members at the same level in a channel

• ex: two different retailers or wholesalers of a certain product

intensive distribution strategy

producer selling product through every available intermediary

selective distribution strategy

distribution pattern in which a producer sells a product through a limited number of intermediaries in a geographic location