Disagreements among marketing channel members on goals, roles, and regards - who should do what and for what reward : Layer of intermediaries that preform some work in bringing the product and its ownership closer to the final buyer

1. Channel conflict:

Disagreements among marketing channel members on goals, roles, and regards - who should do what and for what reward

2. Channel Level

: Layer of intermediaries that preform some work in bringing the product and its ownership closer to the final buyer.

3. Conventional distribution channel:

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

4. Corporate VMS:

Vertical marketing system that combines successive strategies of production and distribution under single ownership -channel leadership is established through common ownership.

5. Contractual VMS:

Vertical marketing system in which independent firms at different levels of production and distribution join together through contracts.

6. Direct marketing channel:

marketing channel that has no intermediary levels

7. Indirect marketing channel:

marketing channel containing one or more intermediary levels

8. Disintermediation:

Cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

9. Franchise Organization:

Contractual vertical marketing system in which a channel member, called a franchisor, links several stages in production - distribution process.

10. Horizontal marketing system:

channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity