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.