Distribution (9) Flashcards
Direct channels
Producer to customer
Indirect channel
using other stores/ companies as intermediaries
Disintermediation
Removal of channel intermediaries e.g. self checkout
What are independent intermediaries?
Do business with many different manufacturers and different customers
What are manufacturer owned intermediaries?
Carry stock and provide sales but down own any inventory, instead providing selling functions e.g. sales branch
What is breaking bulk?
Wholesalers and retailers purchase large amount from manufactures, selling small amounts at a time to many different customers
What is creating assortments?
Provide a variety of products in one location so customers buy many different items from one seller at a time
Conventional marketing system
Multi-level distribution channel where members are independent of one another
Vertical marketing system
Formal co-operation among channel members at 2 or more different levels
Intensive distribution
Aims to maximise marketing by selling products at all possible wholesalers or retailers where availability is important to customer purchase decisions
Exclusive distribution
Limiting distribution to a single outlet in a particular region
Exclusive distribution
Limiting distribution to a single outlet in a particular region
Selective distribution
demand is too large for exclusive service but the product is a poor fit for intensive distribution
