Marketing III: Distribution

Question 1

Distribution

Distribution

Answer 1

Economic activities concerned with getting goods from manufacturers to final customers.

Question 2

Channel of distribution

Absatzweg

Answer 2

Decision concerning the number and types of intermediaries (btw the manufacturer of a product and its final user) to be used in the distribution; it will affect the total cost of the product to be distributed (depending on the nr of stages).

Question 3

Physical distribution

Answer 3

Selecting the most suitable mode of transport.

Question 4

Logistics

Logistik

Answer 4

Storage, Planning, Recycling

The process of planning, implementing and controlling the cost-efficient flow and storage of materials, equipment and inventory btw the point of production and the point of consumption.

Question 5

Zero-stage channel of distribution

Answer 5

Door-to-door selling

From the producer directly to the final user.

Question 6

One-stage channel of distribution

Answer 6

Features one type of intermediary eg retailers that are supplied by the producer direct.

Question 7

Two-stage channel of distribution

Answer 7

Features two types of middleman eg wholesaler and retailers.

Question 8

Retailer

Einzelhändler

Answer 8

Eg Spar, Merkur, Billa

Retailers are the last link in the chain of distribution; in fact, any company that sells to final customers makes retail sales. Usually retailers prefer to serve local markets which they understand (nationwide), but recently they seem to enter foreign markets - through franchising.

Question 9

Franchising

Answer 9

Vertical distribution arrangement under which an independent contractor (franchisor) grants another one (franchisee) specified rights in return for a franchising fee.

Starbucks, McDonalds (Marinopoulos GmbH)

Question 10

Department store

Kaufhaus, Warenhaus

Answer 10

eg Müller,

“One-stop shopping” / “We supply everything from a needle to a crocodile”

Large retail establishments offering a wide range of goods => departments (mancare, makeup etc)

Question 11

Stockist

Fachhändler

Answer 11

eg Media Markt

Retail outlets which carry a restricted range of goods (eg only electronics, furs, shoes etc).; usually they specialise in one particular line of products.

Question 12

Unit shop

Einzelgeschäft

Answer 12

eg alimentara

Small, independent, owner-operated retail establishment; usually facing heavy competition from large retail concerns, may have some advantages.

Question 13

Multiple store

Filialunternehmen, Ladenkette

Answer 13

The same company!! (Nu franchising)

Consists of two or more outlets which are centrally owned and operated. Although this permits standardisation of shopfronts, layout product range etc, it can be at disadvantage, because it is less flexible than a unit store (will adapt slower to a demand change).

Question 14

Mail order
(Versandshandel)

Answer 14

Eg Amazon?

System of retailing where a customer places an order by mail or by telephone and the goods are deliverd to his home (usually COD payment).

Question 15

Wholesaler

Großhändler

Answer 15

eg METRO

Any sale to a business customer or institution of goods or services not intended for personal use.

Question 16

(Merchant) Wholesaler

Answer 16

Buys and sells products or goods for his own account.

Question 17

Wholesaling middlemad (agent)

Answer 17

Acts for the principal’s (eg a manufacturer) account.