Glossary
Chapter 12: Marketing ChannelsJump to a chapter's terms: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24
- Accumulation
- The development of a bank of homogeneous products with similar production or demand requirements. p. 356
- Allocation
- The breaking down of large homogeneous inventories into smaller lots. p. 356
- Assorting
- The grouping of products that buyers want to have available in one place. p. 356
- Assortment
- A combination of products put together to provide customer benefits. p. 355
- Channel of distribution (or marketing channel)
- A group of individuals and organisations that direct the flow of products from producers to customers. p. 352
- Channel power
- The ability to influence another channel member's goal achievement. p. 370
- Dual distribution
- A channel practice whereby a producer distributes the same products through two or more different channels. p. 360
- E-commerce
- The use of the Internet for marketing communications, selling and purchasing. p. 358
- Exclusive dealing
- System by which a manufacturer forbids an intermediary to carry products of competing manufacturers. p. 372
- Exclusive distribution
- The use of only one outlet in a relatively large geographic area to distribute a product. p. 364
- Functional middlemen
- Intermediaries who do not take title to products. p. 352
- Horizontal channel integration
- The combination of institutions at the same level of channel operation under one management. p. 363
- Industrial distributor
- An independent business that takes title to industrial products and carries inventories. p. 359
- Intensive distribution
- The use of all available outlets for distributing a product. p. 363
- Marketing intermediary
- A middleman who links producers to other middlemen or to those who ultimately use the products. p. 352
- Merchants
- Intermediaries who take title to products and re-sell them. p. 352
- Refusal to deal
- Situation in which suppliers will not do business with wholesalers or dealers simply because these wholesalers or dealers have resisted policies that are anti-competitive or in restraint of trade. p. 372
- Restricted sales territories
- System by which a manufacturer tries to prohibit intermediaries from selling its products outside designated sales territories. p. 372
- Selective distribution
- The use of only some available outlets in an area to distribute a product. p. 364
- Sorting activities
- Functions that let channel members divide roles and separate tasks. p. 355
- Sorting out
- Separating products into uniform, homogeneous groups. p. 355
- Strategic channel alliance
- Arrangement for distributing the products of one organisation through the marketing channels of another. p. 360
- Tying contract
- Arrangement whereby a supplier (usually a manufacturer or franchiser) furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well. p. 372
- Vertical channel integration
- The combination of two or more stages of the channel under one management. p. 360
- Vertical marketing system (VMS)
- Marketing channel in which a single channel member co-ordinates or manages channel activities to achieve efficient, low cost distribution aimed at satisfying target market customers. p. 362