Marketing Channels Basics
What is a marketing channel?
A set of interdependent organizations that help make a product/service available for use or consumption.
What is vertical conflict?
Disagreement among different levels of the same channel (e.g., manufacturer vs. retailer).
What is retailing?
All activities involved in selling goods/services directly to final consumers.
What is retail convergence?
Merging of consumers, products, and prices among retailers.
What is wholesaling?
Selling goods/services to those buying for resale or business use.
What are the two types of marketing channels? (Keep it simple, one without middlemen and one with middlemen)
Direct and Indirect.
Define a vertical marketing system (VMS).
A system where producers, wholesalers, and retailers act as a unified system.
Define omni-channel retailing.
A seamless cross-channel buying experience integrating online, mobile, and in-store shopping.
What are megaretailers?
Large retailers with significant buying power, selection, and efficiency.
Name one function of a wholesaler.
Selling, promoting, warehousing, transportation, financing, etc.
What are the five types of flows connecting channel members?
Physical flow, Ownership flow, Payment flow, Information flow, Promotion flow.
What is multichannel distribution?
A system where a firm uses two or more marketing channels to reach customers.
Name one type of retailer based on service level.
Self-service, limited service, or full service.
Name a trend in retail technology.
Inventory control, online transactions, forecasting, customer tracking.
What are merchant wholesalers?
Independent businesses that take title to the goods they handle.
Name two ways channel members add value.
Information, promotion, contact, matching, negotiation, physical distribution, financing, risk-taking.
Name two of the four channel design decisions.
Analyzing customer needs, setting objectives, identifying alternatives, evaluating alternatives.
What is shopper marketing?
Turning shoppers into buyers as they approach the point of sale.
What is green retailing?
Using sustainable practices in store operations and supply chains.
What’s the difference between brokers and agents?
Brokers bring buyers and sellers together; agents represent them.
What is a value delivery network?
A system of suppliers, distributors, and customers who partner to improve overall performance.
What is disintermediation?
Cutting out intermediaries or replacing them with new ones.
Give an example of a category killer retailer.
Best Buy, PetSmart, Staples (specializes and dominates one category).
What is a major challenge for global expansion in retail?
Adapting to local market needs.
What’s a trend in wholesaling today?
Use of technology, value-added services, demand for efficiency.