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MArketing Channels chapt 1
Marketing Channel Concept
23
Marketing
Undergraduate 3
09/06/2016

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Term
Economies of scale
Definition
increase quantity= decreased fixed cost per unit
Term
Economies of scope
Definition
increase in different goods produced = decrease in total cost of production
Term
Cost efficiency
Definition
increase production(output) by using least cost(input) as possible
Term
contractual efficiency
Definition
level of effort in negotiation function
Term
division of labor
Definition
efficient allocation of labor
Term
opportunity cost
Definition
cost of foregoing profitable opportunities
Term
3 channel dimensions
Definition
1) channel level
2) member type
3) member number
Term
direct channel
Definition
- no intermediaries
- aka corporate channel
Term
indirect channel
Definition
-has intermediaries
-aka commercial channel
Term
internal channel
Definition
intraorganizational
Term
external channel
Definition
interorganizational channel
Term
channel structure boundaries
Definition
-human boundary (labor)
-economic boundary (money)
-geographical boundary
Term
forward function (flow)
Definition
-physical possession
- ownership
-promotion
Term
backward function
Definition
-payment
-ordering
Term
dual function
Definition
-Financing (installment)
-Risk
- Information
-negotiation
Term
Channel management
Definition
Administering existing channel to secure cooperation of channel member to meet distribution objectives
Term
Planning
Definition
-distribution objectives
-distribution strategy (based on objectives)
-distribution tasks
Term
timing
Definition
-postponement
-Speculation
Term
Channel service outputs
Definition
-Spatial Convenience
-Lot Size
-waiting time
-product assortment
Term
Sorting out
Definition
Big to Smaller categories
Term
Assortment
Definition
Small to bigger category
Term
Accumulation
Definition
small x to bigger X groups
Term
Allocation
Definition
Big X to smaller x groups
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