Distribution

Question 1

Distribution channel

Answer 1

a way to get the right products to the right customers at the right place at the right price (utility)

Question 2

Supply Chain

Answer 2

refers to the various firms involved in performing the activities required to create and deliver a product or service to customers or industrial users

Question 3

Time Utility

Answer 3

making products available at the time the consumer wants to purchase them

Question 4

Place utility

Answer 4

making products available in the locations that the customer wants them

Question 5

Form Utility

Answer 5

customising products to the consumers particular needs

Question 6

Exchange efficiencies

Answer 6

making transactions as simple and cheap as possible by establishing and managing efficient exchange processes

Question 7

Possession utility

Answer 7

enabling customers to possess the product eg using different payment methods

Question 8

Direct Distribution

Answer 8

No intermediaries. consists of manufacturer selling directly to consumers
eg. wine > online customer

Question 9

Indirect distribution

Answer 9

One intermediary= letter box > Mitre 10 > consumer

Two intermediaries= confectionery > wholesaler > retail outlet > customer

three intermediaries= flower grower > export agent > flower auction > florist > customer

Question 10

Dual Distribution

Answer 10

using more than one distribution channel at the same time

eg retail and online = direct and indirect

Question 11

Middleman

Answer 11

any intermediary between the manufacturer and end user

Question 12

Agent or Broker

Answer 12

Any intermediary with legal authority to act on behalf of the manufacturer

Question 13

Wholesaler

Answer 13

An intermediary who sells to other intermediaries, usually to retailers, usually applies to consumer markets

Question 14

Retailer

Answer 14

An intermediary who sells to consumers

Question 15

Distibutor

Answer 15

An imprecise term, usually used to describe intermediaries who perform a variety of distribution functions including selling, maintaining inventories, extending credit, and so on.

Question 16

Dealer

Answer 16

A more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler etc

Question 17

Main Channel intermediary Functions

Answer 17

Transnational: buying, selling, risk taking

Logistical: Assorting, Storing, Sorting, Transporting

Facilitating: financing, grading, marketing info and research

Question 18

Horizontal Channel intergration

Answer 18

bringing organisations at the same level of operation under a single management structure
eg retailer buys out a competing retailer

Question 19

Vertical channel intergration

Answer 19

bringing different stages (levels) of the marketing channel under a single managemnet structure
eg. wholesaler buys a retailer or transport channel

Question 20

Vertical marketing system

Answer 20

a marketing channel in which all stages (levels) occur under a single management
eg. a postal company owns post boxes, post offices and all transport channels

Question 21

Franchising

Answer 21

an approach to business in which one party ( afranchiser) licenses the business model to another party ( a franchise)
eg mcDs

Question 22

Horizontal conflict

Answer 22

between firms at the same level of the channel

eg between a retailer and reatailer

Question 23

Vertical Conflict

Answer 23

between different levels of the same channel

eg btw wholesaler and retailer

Question 24

Disintermediation

Answer 24

cutting out the middleman

eg dealing with customer directly via internet

Question 25

Distribution Intensity

Low, Exclusive

Answer 25

One or a few dealers within a given area

eg designer clothes, new car

Question 26

Distribution Intensity:

Selective, Middle

Answer 26

Several dealers within a given area

eg domestic flights, childs bike, mobile phone

Question 27

Distribution Intensity:

High, Intensive

Answer 27

Large number of dealers within a given area

eg dog food, newspaper, bread