MKTG1025 Marketing Principles
Glossary of terms
Extracted from recommended text:
Armstrong, Adam, Denize, Volkov, Kotler (2018)
Principles of Marketing, 7th Edition
. Pearson
Education Australia
Page 2 of 7
Contractual vertical marketing network
A vertical marketing network in which independent firms at different levels of production
and distribution join together through contracts.
Convenience store (C-store)
A small store, located near a residential area, open long hours seven days a week,
carrying a limited line of high- turnover convenience goods.
Conventional marketing channel
A channel consisting of one or more independent producers, wholesalers and retailers,
each a separate business seeking to maximise its own profits, perhaps even at the
expense of profits for the system as a whole.
Corporate vertical marketing network
A vertical marketing network that combines successive stages of production and
distribution under single ownership; channel leadership is established through common
ownership.
Department store
A retail organisation that carries a wide variety of product lines, typically clothing, home
furnishings and household goods; each line is operated as a separate department,
which may be managed by specialist buyers or merchandisers, or this function may be
performed centrally.
Direct factory outlet (DFO)
An off-price retailing operation owned and operated by manufacturers, normally carrying
the manufacturers' surplus, discontinued or irregular goods.
Direct marketing channel
A direct marketing channel has no intermediary levels.
Discount store
A retail institution that sells standard merchandise at lower prices by accepting lower
margins and selling at higher volume.
Disintermediation
The removal of marketing channel intermediaries by goods or service producers, or the
displacement of traditional resellers by new and different types of intermediaries.