Channel Relationship A channel relationship can be linked to a marriage in that it brings together two independent entities that have shared goals. For the relationship to work, each party must be open about its expectations and communicate changes perceived in the other’s behaviour that might be contrary to the agreement.
Integrated distribution Requires the marketer to make an investment in the foreign market
Physical Distribution Part of logistics management, physical distribution is concerned with the transporting of merchandise, raw materials, or by-products, such as hazardous waste, from the source to the customer. A manager of physical distribution must also assess and control the cost of transporting these goods and materials, as well as to determine the most efficient way to store them, which usually involves some form of warehousing. Hence, physical distribution (PD) is concerned with inventory control, as well as with packaging and handling. Customer relations, order processing, and marketing are also related activities of PD. In essence, physical distribution management (PDM) involves controlling the movement of materials and goods from their source to their destination. It is a highly complex process, and one of the most important aspects of any business. PDM is the &quot;other&quot; side of marketing. While marketing creates demand, PDM's goal is to satisfy demand as quickly, capably, and cheaply as possible.
Grey Market Challenge The sale of authentic and legitimately manufactured trademark items by intermediaries other than authorized channel members Grey-market products vary from inexpensive consumer goods to expensive capital goods Are they always bad?
Systems Concept Based on the notion that materials-flow activities within and outside of the firm are so extensive and complex that they can be considered only in the context of their interaction. In order for the systems concept to work, information flows and partnership trust are instrumental.
Total cost concept The Total Cost acquisition and Ownership of the item must be optimum. Each of these costs represent an opportunity for reduction. The basic price of the supplier cannot be reduced. The margins can be played upon. The opportunity for reduction therefore lies in the supply chain - packing, forwarding, transportation, wastages, handling, storing, etc. Efficient supply chain management helps in reducing the Total Cost of Acquisition (TCA) of an item.
Tradeoff concept A trade-off (or tradeoff) is a situation that involves losing one quality or aspect of something in return for gaining another quality or aspect. It implies a decision to be made with full comprehension of both the upside and downside of a particular choice Brainstorm things that could be traded off.