PM003(09)

3. Seeking control of channel members at different levels of the channel, e.g. the manufacturer’s acquisition of the distributor.
6. The ability of a channel member to control marketing variables of any other member in a channel at a different level of distribution.
8. The elimination of middlemen in the distribution channel, by online selling of products and services directly to the customers.
9. Number of levels (middlemen) in the distribution channel.
10. Typically the case where two products are linked together: the original product item is priced very low, in order to get customers ‘in’ and try the product. The follow-on product is then sold at a significantly higher price.
11. Importing and selling of products through market distribution channels that are not authorized by the manufacturer.
12. Combination of the experience curve (lowering costs per unit with accumulated production of the product) with typical market price development within an industry.
13. A term used to describe the movement of goods and services between suppliers and end users
15. All cost factors (e.g. firms’ net ex-works price, shipping costs, tariffs, distributor mark-up) in the distribution channel add up and lead to price escalation. The longer the distribution channel, the higher the final price in the foreign market.
16. Coverage can relate to geographical areas or number of retail outlets. Three approaches are available: intensive, selective or exclusive coverage.

1. A network of businesses that own stakes in one another as a means of mutual security, usually including large manufacturers and their suppliers of raw materials and components.
2. Worldwide tendency towards concentration in retailing, creating huge buying power in the big international retail chains.
4. Seeking control of channel members at the same level of the channel, e.g. the manufacturer’s acquisition of the competitor.
5. A customer requiring one global price (per product) from the supplier for all its foreign strategic business units (SBUs) and subsidiaries.
7. Bundling product and services together in a system-solution product.
14. Prices charged for intracompany movement of goods and services. While transfer prices are internal to the company, they are important externally for cross-border taxation purposes.