Midterm 2 Flashcards
Merchant wholesalers
are independently owned firms that take title to (own) the goods that they handle.
Agents/ brokers
are marketing intermediaries that bring buyers and sellers together and assist in negotiating an exchange, but do not take title to the goods.
Cash and carry wholesalers
are wholesalers that serve mostly smaller retailers with a limited assortment of products.
Channel of distribution
is the whole series of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers
Rack jobbers
are wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment.
Intensive distribution
puts products into as many retail outlets as possible; includes vending machines (used for convenience goods such as candy and cigarettes).
Selective distribution
sends products to only a preferred group of retailers in an area (used for shopping goods such as appliances or furniture).
Exclusive distribution
is distribution that sends products to only one retail outlet in a given geographic area (used for specialty goods such as luxury automobiles).
Drop shippers
are wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.
Marketing intermediaries
are organizations that assist in moving goods and services from producer to business (B2B) and business to consumer (B2C).
Wholesaler
a marketing intermediary that sells to other organizations.
Retailer
is an organization that sells to ultimate consumers.
Utility
in economics, is the want-satisfying ability, or value, that organizations add to goods or services; the products are made more useful or accessible to consumers than they were before.
Time utility
is adding value to products by making them available when they are needed.
Place utility
is adding value to products by having them where people want them.
Possession utility
doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.
Information utility
s adding value to products by opening two-way flows of information between marketing participants.
Service utility
adding value by providing fast, friendly service during and after the sale and teaching customers how to best use products over time.
Online retailing
is selling goods and services to ultimate consumers (e.g., you and me) online.
Social commerce
is a form of electronic commerce that involves using social media and user contributions to assist in the online buying experience.
Telemarketing
is the sale of goods and services by telephone.
Direct selling
is selling to consumers in their homes or workplaces.
Direct marketing
is any activity that directly links manufacturers or intermediaries with the ultimate consumer.
Corporate distribution system
is a distribution system in which all the organizations in the channel of distribution are owned by one firm (example: Sherwin-Williams).