Channel Functions
What is a marketing channel?
A set of interdependent organizations that make a product/service available for use or consumption.
What is channel conflict?
Disagreement among channel members on goals, roles, or rewards.
Name the three distribution intensity levels.
Intensive, selective, exclusive.
Give two criteria used to select channel members.
Financial strength; service reputation (also: years in business, growth, cooperativeness).
What is supply chain management?
Managing upstream and downstream flows of goods and information across the value delivery network.
List three key channel functions.
Information, matching, physical distribution (also: contact, promotion, negotiation, financing, risk taking).
Define vertical channel conflict.
Conflict between different levels of the same channel (e.g., manufacturer vs. retailer).
Which intensity fits convenience goods like soft drinks?
Intensive distribution
Long-term collaboration with shared planning and goals describes this partner approach.
Strategic partnership
Name the logistics that moves finished goods to customers.
Outbound logistics
This function shapes the offer to meet buyer needs (assortment, customization).
Matching
Conflict among firms at the same channel level.
Horizontal conflict
Placing a product in as many outlets as possible.
Intensive distribution
Screening and choosing potential intermediaries is called this.
Channel member selection
Coordinating suppliers, the company, resellers, and customers to deliver value is called this.
Supply chain management
The value-adding activity involving warehousing and transportation.
Physical distribution
A unified channel managed under one leadership across levels is this kind of system.
Vertical marketing system (VMS)
Limiting distribution to a few qualified intermediaries in a territory.
Selective distribution
Using discounts, co-op ads, and bonuses to influence partners.
Incentive programs (incentive-based motivation)
Delivering orders from warehouses to end buyers refers to this logistics direction.
Outbound logistics
Channel activity that covers costs or extends credit to partners or customers.
Financing
A contractual VMS in which a channel member licenses others to use its brand and format.
Franchise organization
Granting sole rights to one intermediary per territory.
Exclusive distribution
Regularly assessing sales, delivery time, and service quality for partners.
Channel member evaluation
Handling returns, recycling, and disposal flows in the chain.
Reverse logistics