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Intermediary

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Individuals or firms that helps to distribute a product or goods. QUESTION:A(n) _---Intermediary---_ is an individual or firm that serves as a go-between when moving products from producer to consumer?

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Distribution Mix

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The combination of distribution channels by which a firm gets products to end users. QUESTIONS:The --_Distribution Mix_--is a combination of marketing intermediaries and channels that producers use to reach their target customers.

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Wholesaler

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intermediary who sells products to other businesses for resale to final consumers.

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Retailer

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Intermediary who sells products directly to consumers.

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distribution channel

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network of interdependent companies through which a product passes from producer to end user. QUESTION; A _--distribution--_consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user.

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Channel 1 Direct channel

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direct channel, the product travel from the producer to the consumer or organizational buyer without intermediaries. such as online companies) Avon, dell, GEICO, Tupperware use this channel. Business goods bought is large quantities are sold directly by the manufacturer to the industrial buyer.

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Channel 2 Retail channel

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Retail channel, producers distribute consumer products through retailer good year, maintains its own system of retail outlets, (Levi's own its own outlets and produce s jeans for other retailers. larger outlets like Walmart buy merchandise directly from producers, then resell to customers online and at Walmart retail stores. consumers go online to buy popular products such as movies downloads and itunes from online retailers. and industrial buyers, ( businesses buying office supplies from staples will rely on this channel ( retail channel)

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Channel 3 Wholesale Distribution

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Once the most widely used method of non-direct distribution channel requires a large and costly amount of floor space for storing and displaying merchandise at brick-and-mortar facilities. Wholesalers relieve the space problem by storing merchandise and restocking store displays frequently with approximately 90 percent of its space used to display merchandise and only 10 percent left storage and office facilities the combination convenience store and gas station's use of wholesalers an products being assembled and shipped to customers. (producer to customer)

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Channel 4 Agents or Brokers sales

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agents or brokers represent producers and receive commissions on the goods they sell to consumers or industrial users.

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Sales agents

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Online travel agents, deal in the related product lines of a few producers, such as tour companies, to meet the needs of many customers. Independent intermediary who generally deals in the related product lines of a few producers and forms long term relationships to represent those producers and meet the needs of many customers.

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Broker

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Independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be. Brokers, industries as real estate and stock exchanges, match numerous sellers and buyers as needed to sell properties, often without knowing in advance who they will be.

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Intensive Distribution

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strategy by which a product is distributed through as many channels as possible.(Both wholesalers and retailers). used for low cost good (such as candy M&M's that enter the market through all suitable retail outlets candy machines, supermarkets, etc. '

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Exclusive distribution

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Strategy by which a manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers or retailers in a given geographic area. the rights of products to a distributor of high priced prestige products such as Rolex watches that are sold only by "Official Rolex Jewelers"

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Selective Distribution

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strategy by which a company uses only wholesalers ans retailers who give special attention in sales effort to specific products. products that are used most often for consumers products, like furniture and appliances, Frigidaire and Whirlpool use selective distribution for appliances to cement relationships whit wholesalers who will marker Frigidaire and whirlpool over other brands.

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Channel Conflict

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conflict arising when the members of a distribution channel disagree over the roles they should play or the rewards they should receive. such as john Deere and State farm insurance would object to its dealers distributing tractors and insurance products of competing brands. conflict arises when one channel has more power than the other. apple having its own outlet and sell it others outlets defeat the purpose and cause conflict of the system and disrupts the flow of goods.

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Channel Captain

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channel member who is most powerful in determining the roles and rewards of other members Often the channel captain is a manufacturer or an originator of a service. Jewelry artisan Thomas Mann is in a big demand that wholesalers and retailers wait years for the chance to distribute his techno-romantic creations. Walmart is a channel captain due to large sales volume. (POWER)

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Merchant Wholesalers

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Independent wholesaler who takes legal possession of goods produced by a variety of manufacturers and then resells them to other organizations. They own the goods they resell and provide storage and delivery.

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Full service Merchant Wholesalers

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Merchant wholesaler that provides credit, Marketing, and merchandising services. in addition to traditional buying and selling services. 80 % of all merchant wholesalers provide value- services such as above.

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Limited-Function Merchant wholesalers

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merchant wholesaler that provides a limited range of services. Fewer services, merely storage, customers are small, operations are cash and customers pick up their goods. (cash on demand)

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Drop shippers

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Limited-Function merchant wholesaler that receives customer orders, negotiates with producers, takes title to goods, and arranges for shipment to customers. don't carry inventory or handle products, take orders from customers, negotiate with producers to supply goods to take title to them and arrange for shipment. Rack jobbers market consumer goods (non Food items) directly to retail stores, marking prices and sitting up displays in a variety of stores. Procter ; Gamble(P;G) uses rack jobbers to distribute products such as its Pamper diapers.

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e-Intermediary

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internet distribution channel member that assist in delivering products to customers or that collects information about various sellers to be presented to consumers, or they help deliver online products to buyers. wholesalers---perform one or both of two functions: they collect information about sellers and present it to consumers (such as kayak.com) or they help deliver online products to buyers (such as Amazon.com)

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Syndicated Selling

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e-commerce practice whereby a website offers other websites commissions for referring costumers. (Expedia,com and dollar rent a care.com is a heavily visited travel services website. example: Expedia gave dollar rental car a banner and when customers click on it, dollar rental car pays Expedia a fee for each booking that comes through the channel. (referral for a fee)

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Shopping Agent (e-agent)

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e-intermediary (middleman) in the internet distribution channel that assists users in finding products and prices but does not take possession of products. (help online customers)Hotwire.com is a well know shopping agent.

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Department Store

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large product line retailer characterized by organization into specialized departments

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Supermarket

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large product line retailer offering a variety of food and food related items in specialized departments

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specialty store

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retail store carrying one product line or category of related products

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bargain Retailer

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retailer carrying a wide range of products at bargain prices

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Discount House

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bargain retailer that generates large sales volume by offering goods at substantial price reductions

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Catalog showroom

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bargain retailer in which customers place orders for catalog items to be picked up at on premises ware warehouses

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Factory Outlet

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bargain retailer owned by the manufacturer whose products it sells

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Wholesale Club

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bargain retailer offering large discounts on brand name merchandise to customers who have paid annual membership fees

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Convenience store

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retail store offering easy accessibility, extended hours and fast service

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Direct-Response retailing

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form of non-store retailing in which firms directly interact with customers to inform them of products and to receive sales orders

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Mail order ( catalog marketing)

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form of non-store retailing in which customers place orders for catalog merchandise received through the mail

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Telemarketing

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form of non-store retailing in which the telephone is used to sell directly to consumers

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Direct selling

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form of non-store retailing typified retailing typified by door-to-door sales

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Online Retailing

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non-store retailing in which information about the seller's products and services is connected to consumers computers allowing consumers to receive the information and purchase the products in the home

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e-catalog

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non-store retailing in which the internet is used to display products

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Electronic Statement

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Commercial website at which customers gather information about products and buying opportunities, place orders, and pay for purchases.

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Cybermail

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collection of virtual store fronts (business websites) representing a variety of products and product lines on the internet.

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Video Retailing

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non-Store retailing to consumers via home television

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Physical distribution

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activities needed to move a product efficiently for manufacturer to consumer

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Warehousing

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physical distribution operation concerned with the storage of goods

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Public warehouse

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independently owned and operated warehouse that stored goods for many firms

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promotion

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aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product

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Positioning

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process of establishing identifiable product image in the minds of consumers. (placing and image brain washing customer)

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Pull strategy

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promotional strategy designed to appeal directly to consumers who will demand a product from retailers

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Push strategy

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promotions strategy designed to encourage wholesalers or retailers to market products to consumers

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promotional Mix

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combination of tools used to promote a product

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Advertising

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promotional tool consisting of paid, non personal communication used by an identified sponsor to inform an audience about a product.

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Personal selling

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promotional tool in which a salesperson communicates one on one potential customers

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Retail Selling

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selling a consumer product for the buyer's personal or household use

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Industrial Selling

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selling products to other businesses, either for the purpose of manufacturing or for resale.

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order processing

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personal selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits.

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Creative Selling

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Personal selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits.

Chapter 13 Business management – Flashcards

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