Vertical Market

Vertical Cooperative Advertising – Advertising in which the retailer and other previous marketing channel members (e.g., manufacturers or wholesalers) share the cost.

Vertical Integration – 1. (channels of distribution definition) The combination of two or more separate stages in the channel through ownership, including mergers or acquisitions. 2. (environment definition) The expansion of a business engaged in earlier or later stages of marketing a product. in forward vertical integration, manufacturers might acquire or develop wholesaling and retailing activities. in backward vertical integration, retailers might develop their own wholesaling or manufacturing capabilities.

Vertical Market – A situation in which an industrial product is used by only one or a very few industry or trade groups. the market is narrow but deep in the sense that most prospective customers in the industry may need the article.

Vertical Marketing System – 1. (channels of distribution definition) The channel system consisting of horizontally coordinated and vertically aligned establishments that are professionally managed and centrally coordinated to achieve optimum operating economies and maximum market impact. The three types of vertical marketing systems are administered vertical marketing system, contractual marketing system, and corporate vertical marketing system. 2. (physical distribution definition) A long-term channel relationship in which two or more firms acknowledge and desire interdependence.

Vertical Merger – The joining or combination of two or more companies at different stages in the production or marketing process, such as the combination of IBM, a manufacturer of computers, with Intel, a manufacturer of microprocessors.

Vertical Price-Fixing – A conspiracy among marketers at different levels of channel to set prices for a product.

Visual Merchandising – A situation in which reliance is upon the use of informative labels, descriptive signs, or a self service type of display, as opposed to dependence upon a salesperson for information.

Wagon Distributor – A wholesaler whose inventory of merchandise is carried on trucks that are operated by driver-salespeople. The retailer’s requirements for merchandise are determined at the time of the sales call and orders are filled immediately from the stock carried on the truck. It is a somewhat archaic team.

Want Book – 1. The information collected by retail salespeople to record out-of stock or requested merchandise. 2. A notebook in which store employees record names of items called for by customer but are not in stock.

Want Slip – A slip on which the salesperson records customer requests for items that cannot be supplied from stock.

Warehouse Retailing – The retailing of certain types of merchandise, particularly groceries, drugs, hardware, home improvement, and home furnishings, in a superstore type of warehouse atmosphere. The facilities are typically in low-rent, isolated buildings with a minimum of services offered.

Warranty – A statement or promise made to the customer that a product being offered for sale is fit for the purpose being claimed. The promise concerns primarily what the seller will do if the product performs below expectations or turns out to be defective in some way. The promise (warranty) may be full (complete protection) or limited (some corrective steps), under terms of the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (1975). It may also be expressed (orally or in writing) or only implied, and it may have time restrictions.

Waybill – An official shipping document that identifies shipper and consignee, routing, description of goods, cost of shipment, and weight of shipment.

Wholesale Merchant – An establishment primarily engaged in buying and selling merchandise in the domestic market and performing the principal wholesale functions.

Wholesale Price Index (WPI) – A relative measure maintained by the U.S. government of average price changes in commodities sold in wholesale markets in the United States.

Wholesaler – A merchant establishment operated by a concern that is primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods Usually in smaller quantities) to retailers of to industrial or business users.

Wholesaler Sponsored Cooperative – A form of contractual vertical marketing system that is an example of forward integration. retailers achieve vertical system advantages by affiliating with a sponsoring wholesaler.

Will-Call– The products ordered by customers in advance of the time delivery is desired.

Word-of-Mouth (WOM) – 1. (consumer behavior definition) This occurs when people share information about products or promotions with friends. 2. (consumer behavior definition) The information imparted by a customer or individual other than a sponsor. It is sharing information about a product, promotion etc. between a consumer and a friend, colleague, or other acquaintance. for example, a consumer may tell a friend about a particularly good price he or she received on a product. Research has found that word-of -mouth communication about products is more likely to be negative than positive.

Yield Management – The practice of pricing to maximize the amount of revenue received per unit sold. it is commonly associated with the pricing practices of airline, hotels, and other seller of “perishable” products.

Zero Order Model – A probabilistic model in which the probability of concurrence of any given outcome at a particular point in time does not depend on any previous outcomes of the process. Models of this kind are often used to represent brand choice behavior or media exposure patterns ( Lilien and Kotler 1983). Evidence that this simple zero order assumption for brand choice behavior cannot be rejected, given empirical choice patterns has been provided by Bass, Givon, Kalwani, Reibstein and Wright (1984).

Zone Pricing – The delivered cost based on factory price plus averagd freight rate for the section or territory to which goods are shipped (same delivered cost to all in the zone).

 

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