1. Channel Management and Leadership
1.1. Channel Conflict
1.1.1. Horizontal conflict Disagreements among channel members at the same level, such as two competing discount stores
1.1.2. Vertical conflict Occurs among members at different levels of the channel
1.1.3. The gray market Goods produced for overseas markets that re-enter the U.S. market and compete against domestic versions
1.2. Achieving Channel Cooperation
1.2.1. Best achieved when all members of channel see themselves as equal components of the same organization
2. Vertical Marketing Systems
2.1. Planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain
2.2. Benefits
2.2.1. Improves chances for controlling and coordinating the steps in the distribution or production process leading to greater efficiency of channels
2.2.2. May lead to the development of economies of scale that ultimately saves money
2.2.3. May let a manufacturer expand into profitable new businesses
2.2.4. Sharing of information and resources among channel members
2.2.5. Greater collective bargaining power
2.3. Disadvantages
2.3.1. Involves some costs
2.3.2. Marketers lose some flexibility
2.4. Corporate and Administered Systems
2.4.1. Corporate marketing system - A single owner operates the entire marketing channel
2.4.2. Administered marketing system - A dominant channel member exercises power to achieve channel coordination
2.5. Contractual Systems
2.5.1. Coordinates channel activities through formal agreements among channel members
3. Physical Distribution
3.1. Customer service
3.2. Transportation
3.3. Inventory control
3.4. Protective packaging and materials handling
3.5. Order processing
3.6. Warehousing
4. Reverse Channels
4.1. Channels designed to return goods to their producers
4.2. Growing importance
4.2.1. Rising prices for raw materials
4.2.2. Increasing availability of recycling facilities
4.2.3. Passage of additional antipollution conservation laws
5. Logistics and Supply Chain Management
5.1. Effective logistics requires
5.1.1. Proper supply chain management
5.1.2. Control of the activities of purchasing, processing, and delivery
5.2. Supply chain - Complete sequence of suppliers and activities that contribute to the creation and delivery of merchandise
6. Radio Frequency Identification (RFID)
6.1. Technology that uses a tiny chip with identification information that can be read by a scanner using radio waves from a distance
6.2. Can be used to grant access to restricted areas or to speed delivery processing
7. Enterprise Resource Planning
7.1. Software system that consolidates data from among a firm’s various business units
8. The Problem of Suboptimization
8.1. Results when the managers of individual physical distribution functions attempt to minimize costs, but the impact of one task on the others leads to less than optimal results
9. DEFINITION
9.1. System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user
10. ROLES
10.1. Facilitating the exchange process by reducing the number of marketplace contacts necessary to make a sale
10.2. Adjusting for discrepancies in the market’s assortment of goods and services via sorting
10.3. Standardizing exchange transactions by setting expectations for products
10.4. Facilitating searches by both buyers and sellers
11. TYPES OF MARKETING CHANNEL
11.1. Resellers
11.1.1. Wholesaler – firms that acquire large quantities of products from manufacturers/producers and then sort,store and resell them to retailers, businesses or sometimes end consumers. Takes title to the goods it handles
11.1.2. Retailers – all channel members who are involved in selling products or services to consumers. Takes title to the goods it handles
11.2. Brokers
11.2.1. Agents – people who facilitate the exchange of products but do not take title(i.e purchase) anything that they sell.
11.3. Facilitators
11.3.1. Transportation companies –organizations that assists in the distribution of products but do not take title or negotiate sales.
11.4. Service firms market through short channels because they sell intangible products and need to maintain personal relationships within their channels
11.4.1. Haircuts, manicures, and dental cleanings all operate through short channels