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Channel Management Glossary of Industry Terms

Channel Management Glossary of Industry Terms



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A glossary of channel industry related terms defined.
A glossary of channel industry related terms defined.

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Published by: CCI- Channel Management on Jan 22, 2009
Copyright:Attribution Non-commercial


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Glossary of
 Industry Terms
7250 Redwood DriveSuite 105Novato, CA 94945888.260.2667www.channelmanagement.com
A nancial allowance provided by the vendor or manufacturer to its sales channel.Typically, the accrual amount is determined by taking a percentage of the invoicedprice of items sold to the channel partner over the course of a distinct period oftime.
An independent company or person who resells a product or service.
The examination and verication of expenditures made in the prior approval (P.A.)or claim process of a co-operative marketing or advertising program.
A class of goods which are identied by name as the product or service from a singlecompany or manufacturer and the values - both emotional and psychological thatconsumers and the marketplace associate with the company and/or its products.
Brand equity
The tangible, emotional and nancial value that is attributed to a brand.
Activities that develop, establish, promote and secure a company’s brand, and thesum of all emotional and psychological values that consumers and the marketplaceattach to the brand. Branding is considered the best way to get end users andconsumers to recognize a company’s brand over that of a competitor.
A generic term used to describe one of various ways that a manufacturer maymarket and sell products to end users and consumers. Members of a channelmay include a direct sales force, resellers, distributors, retailers, agents, dealers,catalogs, and/or web stores.
Channel partner
A generic term used to describe a company with whom a manufacturer partnersto market and sell the manufacturer’s products and/or services. A channel partnermight be a resellers, a distributor, a retailer, an agents, or a dealer.
The formal request for reimbursement from a manufacturer for performing qualiedactivities in a co-operative marketing or advertising program.
Branding in partnership with two or more companies in an effort to effectivelymarket and sell a single product line jointly.
A partnership between two or more companies in which both companies jointlymarket each other’s products.
For the purposes of the CCI website, “consumer” means the last person or companyto whom a product or service is sold, and the person or company who will make useof the product or service purchased.
Co-operative advertising
Manufacturer-provided subsidy of a reseller’s cost for marketing and advertisingthe manufacturer’s product or service.
Co-operative funding
One type of co-operative marketing that manufacturers might offer to resellers.Co-op is a reimbursement model.
Co-operative marketing
Manufacturer-provided subsidy of a reseller’s cost for marketing and advertisingthe manufacturer’s product or service.
For the purposes of the CCI website, “customer” means any entity to whom amanufacturer sells a product for the purposes of having the product resold to endusers and consumers.
NAPAA says: Generally an unauthorized reduction taken to the invoiced amounta manufacturer or supplier bills a customer. Often taken by customers who feelthey have qualied for advertising or promotional allowances that have not beenpaid by the manufacturer or supplier. When taken, these unauthorized deductionscreate a tremendous administrative burden to resolve and cost both the supplierand the retailer unnecessary expenses in time and money.
One that markets and/or sells a product; Typically a wholesaler or other intermediarywho helps move a product from the manufacturer to a company that is authorizedto sell the product on behalf of the manufacturer.
Gross sales
Total dollar amount of sales without subtracting the costs of making the sale,returns, discounts and shipping costs.
The consistent image that is developed as a result of all company messaging.
Incentive marketing
Incentive marketing is the device used to promote an incentive program to thecorrect target audience(s). Incentive marketing is used to help communicate theincentive program that then incents specic behavior.
Incentive program
A program designed to incent specic behavior to achieve desired results. Incentiveprograms are typically used to motivate employees, customers, sales reps, resellers,etc. Incentive programs may be used as a means to achieving any type of results

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