Ch.10 Distribution Flashcards
The path a product takes from its producer or manufacturer to the Chapter 21 - channels of Distribution 445 final user.
Channel Distribution
Businesses involved in sales transactions that move products from the manufacturer to the final user.
Intermediaries
Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses.
Wholesalers
Wholesalers that manage inventory and merchandising for retailers by counting stock, filling it in when needed, and maintaining store displays.
Rack Jobbers
Own the goods they sell but do not physically handle the actual products.
Drop Shippers
Sell goods to the final consumer for personal use.
Retailers
Sell goods to the customer from their own physical stores.
Brick-and-Mortar Retailers
Involves retailers selling products over the Internet to the customer.
E-Tailing
Act as intermediaries by bringing buyers and sellers together.
Agents
Occurs when the producer sells goods or services directly to the customer with no intermediaries.
Direct Distributions
Selling that involves one or more intermediaries.
Indirect Distributions
Involves protected territories for distribution of a product in a given geographic area.
Exclusive Distributions
Some manufacturers own and run their own retail operations.
Integrated Distributions
A limited number of outlets in a given geographic area are used to sell the product.
Selective Distribution
Involves the use of all suitable outlets to sell a product. The objective is complete market coverage, and the ultimate goal is to sell to as many customers as possible, wherever they choose to shop.
Intensive Distribution