Chapter 16 Definitions Flashcards
Channel of distribution
A sequence of marketing organizations that directs a product from he producer to the ultimate user.
Middleman
A marketing organization that links a producer and user within a marketing channel
Merchant middleman
A middleman that actually takes title to products by buying them.
Functional middleman
A middleman that helps in the transfer of ownership of products but does not take title to the products.
Retailer
A middleman that buys from producers or other middlemen and sells to consumers.
Wholesaler
A middleman that sells products to other firms.
Intensive distribution
The use of all available outlets for a product.
Selective distribution
The use of only a portion of the available outlets for a product in each geographic area.
Exclusive distribution
The use of only a single retail outlet for a product in a large geographic area.
Supply-chain management
Long-term partnership among channel members working together to create a distribution system that reduces ininefficiencies, costs and redundancies while creating a competitive advantage and satisfying customers.
Vertical channel integration
The combining of two or more stages of a distribution channel under a single firm’s management.
Vertical marketing system
A centrally managed distribution channel resulting from vertical channel integration.
Merchant wholesaler
A middleman that purchases goods in large quantities and then sells them to other wholesales or retailers and to institutional, farm, government, professional, or industrial users.
Full-service wholesaler
A middleman that performs the entire range of wholesaler functions.
General-merchandise wholesaler
A middleman that deals in a wide variety of products.
Limited-line wholesaler
A middleman that stocks only a few product lines but carries numerous product items within each line.
Specialty-line wholesaler
A middleman that carries a select group of products within a single line.
Limited-service wholesaler
A middleman that assumes responsibility for a few wholesale services only.
Commission merchant
A middleman that carries merchandise and negotiates sales for manufacturers.
Agent
A middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis.
Broker
A middleman that specializes in a particular commodity, represents either a buyer or a seller and is likely to be hired on a temporary basis.
Manufaturer’s sales branch
Essentially a merchant wholesaler that is owned by a manufacturer.
Manufacturer’s sales office
Essentially a sales agent owned by a manufacturer.
Independent retailer
A firm that operates only one retail outlet.
Chain retailer
A company that operates more than one retail outlet.
Department store
A retail store that employes 25 or more persons and sells at least home furnishings, appliances, family apparel and household linens and dry goods, each in different part of the store.
Discount store
A self-service general-merchandise outlet that sells products at lower-than-usual prices.
Catalog showroom
A retail outlet that displays well-known brands and sells them at discount prices through catalogs within the store.
Warehouse showroom
A retail facility in a large, low-cost building with a large on-premises inventory and minimal service.
Convenience store
A small food store that sells a limited variety of products but remains open well beyond normal business hours.
Supermarket
A large self-service store that sells primarily food and household products.
Superstore
A large retail store that carries not only food and nonfood prodcuts ordinarily found in supermarkets, but also additional product lines.
Warehouse club
A large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing.
Traditional specialty store
A store that carries a narrow product mix with deep product lines.
Off-price retailer
A store that buys manufacturers’ seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts.
Category killer
A very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability.
Nonstore retailing
A type of retailing whereby consumers purchase products without visiting a store.
Direct selling
The marketing of products to customers through face-to-face sales presentations at home or in the workplace.
Direct marketing
The use of the telephone, Internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone or the internet.
