Intro to business: chapter 13 – Flashcards
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Distribution strategy
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A plan for delivering the right product to the right person at the right place at the right time.
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Channel of distribution
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The network of organizations and processes that links producers to consumers.
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Physical distribution
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The actual, physical movement of products along the distribution pathway.
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Direct channel
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A distribution process that links the producer and the customer with no intermediaries.
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Channel intermediaries
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Distribution organizations - informally called "middlemen" - that facilitate the movement of products from the producer to the customer.
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Retailers
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Distributors that sell products directly to the ultimate users, typically in small quantities, which are stored and merchandised on the premises.
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Wholesalers
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Distributors that buy products from producers and sell them to other businesses or non-final users such as hospitals, nonprofits, and the government.
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Independent Wholesaling businesses
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Independent distributors that buy products from a range of different businesses and sell those products to a range of different customers.
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Merchant wholesalers
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Independent distributors who take legal possession, or title, of the goods they distribute.
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Agents/brokers
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Independent distributors who do not take title of the goods they distribute (even though they may take physical possession on a temporary basis before distribution).
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Wheel of retailing
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A classic distribution theory that suggests that retail firms and retail categories become more upscale as they go through their life cycles.
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Multichannel retailing
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Providing multiple distribution channels for consumers to buy a product.
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Supply chain
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All organizations, processes, and activities involved in the flow of goods from their raw materials to the final consumer.
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Supply chain management (SCM)
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Planning and coordinating the movement of products along the supply chain, from the raw materials to the final consumers.
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Logistics
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A subset of supply chain management that focuses largely on the tactics involved in moving products along the supply chain.
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Modes of transportation
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The various transportation options - such as planes, trains, and railroads - for moving products through the supply chain.
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Penetration pricing
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A new product pricing strategy that aims to capture as much of the market as possible through rock-bottom prices.
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Everyday-low-pricing (EDLP)
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Long-term discount pricing, designed to achieve profitability through high sales volume.
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High/low pricing
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A pricing strategy designed to drive traffic to retail stores by special sales on a limited number of products, and higher everyday prices on others.
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Loss-leader pricing
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Closely related to high/low pricing, loss-leader pricing means pricing a handful of items- or loss leaders - temporarily below cost to drive traffic.
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Skimming Pricing
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A new product pricing strategy that aims to maximize profitability by offering new products at a premium price.
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Breakeven analysis
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The process of determining the number of units a firm must sell to cover all costs
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Profit margin
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The gap between the cost and the price of an item on a per-product basis
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Odd pricing
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The practice of ending prices in numbers below even dollars and cents in order to create a perception of greater value.
