Chapter 15 Distribution and Marketing Logistics

distribution strategy
a firm’s overall plan for mobbing products through intermediaries and on to final customers
marketing intermediaries
businesspeople and organizations that assist in moving and marketing goods and services between producers and consumers
intermediaries that sell products to other intermediaries for resale or to organizations for internal use
intermediaries that sell goods and services to individuals for their personal use
merchant wholesalers
independent wholesalers that take legal title to goods they distribute
drop shippers
wholesalers who take ownership but not physical possession of the goods they handle
merchant wholesalers that sell products to organizational customers for internal operations for the production of other goods, rather than to retailers for resale
agents and brokers
independent wholesalers that do not take title to the goods they distribute but may or may not take possession of those goods
the replacement of intermediaries by producers, customers, or other intermediaries when those other parties can perform channel function more effectively or efficiently
wheel of retailing
an 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
department stores
large stores that carry a variety of products in multiple categories, such as clothing, house wares, gifts, bedding, and furniture
specialty stores
stores that carry only a particular type of goods, often with deep selection in those specific categories
discount stores
retailers that sell a variety of everyday goods below the market price by keeping their overhead low
off-price retailers
stores that sell designer labels and other fashionable products at steep discounts
online retailers
companies that use e-commerce technologies to sell over the internet; includes internet only retailers and the online arm of store based retailers
e commerce
the application of internet technologies to wholesaling and retailing
multichannel retailing
coordinated efforts to reach consumers through more than one retail channel
retail theater
the addition of entertainment or education aspects to the retail experience
distribution mix
a combination of intermediaries and channels a producer uses to reach target customers
intensive distribution
a market coverage strategy that tries to place a product in as many outlets as possible
selective distribution
a market coverage strategy that uses a limited number of carefully chosen outlets to distribute products
exclusive distribution
a market coverage strategy that gives intermediaries exclusive rights to sell a product in a specific geographic area
channel conflict
disagreement or tension between two or more member in a distribution channel, such as competition between channel partners trying to reach the same group of customers
marketing systems
arrangement by which channel partners coordinate their activities under the leadership of one of the partners
physical distribution
all the activities required to move finished products from the producers to the consumer
the planning, movement, and flow of goods and related information throughout the supply chain
order processing
functions involved in receiving and filling customer orders
facilities for storing inventory
distribution centers
advanced warehouse facilities that specialize in collecting and shipping merchandise
intermodal transportation
the coordinated use of multiple modes of transportation, particularly with containers that can be shipped by track, rail, and sea

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