Distribution Decisions Flashcards
What is Distribution?
The decisions and activities that make products available to customers when and where they want to purchase them
What is a Marketing Channel?
The aggregate of all individuals and organisations that direct flow of products from producers to customers
What are Intermediaries?
Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through purchase and resale of products
List the Marketing Channel types and an example of each:
Direct e.g. IKEA overseas material supply to promotion
Indirect e.g Grocery manufacturers
Multiple e.g. Textbook publishers, to uni students and professors
Hybrid e.g. Airlines sell tickets via website and travel agencies.
What is the Direct Marketing Channel type?
A Marketing channel owned and managed by a single channel member to supply a target market segment
What is the Indirect Marketing Channel type?
A marketing channel comprised of several independently owned channel members who work together to serve a target market segment
What is the Multiple Marketing Channel type?
A combination of direct and indirect channel whereby each channel is used to reach a different target market
What is the Hybrid Marketing Channel type?
A combination of direct and indirect channels whereby different channels are used to reach the same target market segment
What is Direct Marketing?
The use of telecommunications and non personal media to introduce products to consumers, who then can purchase them via mail, telephone or the internet
What is Direct Selling?
The marketing of products to ultimate consumers through face to face sales presentations at home or in the workplace
What is Retailing?
All transactions in which the buyer intends to consume the product through personal, family or household use
What is Franchising?
Arrangement in which a suppler grants a dealer the right to sell the franchiser’s products in exchange for some type of consideration, such as % of the franchisee’s sales or an annual fee
What is Wholesaling?
Transactions in which products are bought for resale, for making other products or for general business operations
What is the difference and similarities between Agents and Brokers?
Agents represent either buyer or seller usually on a permanent basis whereas Brokers bring buyers and sellers together on a temporary basis. However they both do not take title to products and are compensated with commissions for negotiating exchanges between buyers and sellers.
What are the Strategic Issues in Marketing Channels?
Channel Leadership e.g. Coles and Woolworths
Channel Cooperation
Channel Conflict
Channel Integration - Vertical or Horizontal Integration
