Marketing chapter: 12, key notes. Marketing Channels .

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Marketing Channel: It is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. 

Channel Level: A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer. 

Direct Marketing Channel: A marketing channel that has no intermediary levels.

Indirect marketing channel: Channel containing one or more intermediary levels. 

Channel conflict: It states that disagreement among marketing channel members on goals and roles-who should do what and for what rewards. 

Conventional distribution channel: A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system as a whole.

Vertical marketing system: A distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all co-operate.  

Corporate VMS: A vertical marketing system that combines successive stages of production and distribution under single ownership-channel leadership is established through common ownership. 

Contractual VMS: A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone. 

Franchise organization: A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process. 

Administrated VMS: A vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties but through the size and power of one of the parties. 

Horizontal marketing system: A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity. 

Multichannel distribution system: A distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. 

Disintermediation: The cutting out of marketing channel intermediaries by product or service producers, or the displacement of traditional resellers by radical new types of intermediaries. 

Intensive distribution: It means that stocking the product in as many outlets as possible. 

Exclusive distribution: It states that giving a limited number of dealers the exclusive right to distribute the company's products in their territories. 

Selective distribution: The use of more than one, but fewer than all, to the intermediaries who are willing to carry the company's products. 

Note that all the information has collected from Principles of Marketing (Asian perspective).