Ch. 13 flashcards
Direct Channel
Distribution process that links the producer and the customer with
Channel Intermediaries
informally called middlemen. They facilitate the movement of products from the producer to the consumer
Channel of Distribution
the path that a product takes from the producer to the consumer
Form Utility
Turning inputs into finished goods
Time Utility
Providing products at the right time
Place Utility
Offering products at the right place
Ownership Utility
Providing credit, cashing checking, delivering products
Information Utility
offering helpful information
Service Utility
Providing fast, friendly, personalized service
Retailers
the distributors that sell products directly to the ultimate users
Wholesalers
distributors that buy products from producers and sell them to other businesses or nonfinal users
Distribution
the action or process of supplying goods to stores and other businesses that sell to consumers
Merchant Wholesalers
operates in the chain between producer and retail merchant, typically dealing in large quantities of goods
Intensive Distribution
A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go
Selective Distribution
Allows manufacturers to maintain more control over the way their products are sold and discourages price competition among sellers of the products by distributing their products only to those wholesalers and retailers who follow the manufacturer’s guidelines
Exclusive Distribution
Contracting with single channel members to move the product through the commercialization schedule
Logistics
tactics involved in moving product
Supply Chain Management
planning and coordinating the movement of products along the supply chain
Skimming Pricing
A product pricing strategy by which a firm charges the highest initial price that customers will pay. As the demand of the first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment
Penetration Pricing
setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers
Loss Leader pricing
a store sells selected goods below cost in order to attract customers who will, according to the loss leader philosophy, make up for the losses on highlighted products with additional purchases of profitable goods
Break Even
Total fixed cost/ (Price/unit - variable cost/unit)
Profit Margin
gap between cost and price per product
