Business in Action Chapter 15 – Flashcards
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Distribution Strategy
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Firm's overall plan for moving products to intermediaries and final customers
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Marketing intermediaries
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Businesspeople and organizations that assist in moving and marketing goods and services between producers and consumers
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Wholesalers
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Intermediaries that sell products to other intermediaries for resale or to organizations for internal use
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Retailers
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Intermediaries that sell goods and services to individuals for their own personal use
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How Intermediaries Simplify Commerce
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Intermediaries actually reduce the price customers pay for many goods and services, because they reduce the number of contacts between producers and consumers that would otherwise be necessary. They also create place, time, and possession utility.
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Independent wholesalers that take legal title to goods they distribute
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merchant wholesalers
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Merchant wholesalers that provide a wide variety of services to their customers, such as storage, delivery, and marketing support
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full- service merchant wholesalers
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Merchant wholesalers that sell products to organizational customers for internal operations or the production of other goods, rather than to retailers for resale
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distributors
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Independent wholesalers that do not take title to the goods they distribute but may or may not take possession of those goods
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agents and brokers
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The replacement of intermediaries by producers, customers, or other intermediaries when those other parties can perform channel functions more effectively or efficiently
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disintermediation
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Evolutionary process by which stores that feature low prices gradually upgrade until they no longer appeal to price- sensitive shoppers and are replaced by a new generation of leaner, low- price competitors
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wheel of retailing
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Large stores that carry a variety of products in multiple categories, such as clothing, housewares, gifts, bedding, and furniture
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department stores
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Stores that carries only a particular type of goods, often with deep selection in those specific categories
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specialty stores
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Retailers that sell a variety of everyday goods below the market price by keeping their overhead low
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discount stores
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Stores that sell designer labels and other fashionable products at steep discounts
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off-price retailers
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Companies that use e- commerce technologies to sell over the Internet; includes Internet- only retailers and the online arm of store- based retailers
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online retailers
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The application of Internet technologies to wholesaling and retailing
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e-commerce
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Coordinated efforts to reach consumers through more than one retail channel
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multichannel retailing
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The addition of entertainment or education aspects to the retail experience
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retail theater
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Combination of intermediaries and channels a producer uses to reach target customers
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distribution mix
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intensive distribution Market coverage strategy that tries to place a product in as many outlets as possible
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intensive distribution Market coverage strategy that tries to place a product in as many outlets as possible
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Market coverage strategy that uses a limited number of carefully chosen outlets to distribute products
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selective distribution
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Market coverage strategy that gives intermediaries exclusive rights to sell a product in a specific geographic area
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exclusive distribution
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channel conflict Disagreement or tension between two or more members in a distribution channel, such as competition between channel partners trying to reach the same group of customers
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channel conflict Disagreement or tension between two or more members in a distribution channel, such as competition between channel partners trying to reach the same group of customers
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Arrangements by which channel partners coordinate their activities under the leadership of one of the partners
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marketing systems
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All the activities required to move finished products from the producer to the consumer
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physical distribution
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The planning, movement, and flow of goods and related information throughout the supply chain
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logistics
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Steps in the Physical Distribution Process
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The phases of a distribution system should mesh as smoothly as the cogs in a machine. The objective of the process is to provide a target level of customer service at the lowest over-all cost.
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Functions involved in receiving and filling customers' orders
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order processing
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Facility for storing inventory
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warehouse
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Advanced warehouse facilities that specialize in collecting and shipping merchandise
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distribution centers
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Movement of goods within a firm's warehouse terminal, factory, or store
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materials handling
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The coordinated use of multiple modes of transportation, particularly with containers that can be shipped by truck, rail, and sea
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inter modal transportation
