Place decision Flashcards
Define channel of distribution
The path a product takes from the producer or manufacturer to the consumer
Define direct channel
The path a product takes without the help of any intermediaries between the producer and consumer
Explain what direct marketing is
Marketing activities to sell products directly to customers through the use of a customer database
Example of direct marketing
Telephone sales, print, television, online
Define indirect channel
The path a product takes using intermediaries between the producer and the consumer
Example of indirect channel
Nike products can be sold at Foot Locker, Sport Chek, Champs, etc
Explain what an agent is
Do not take ownership of the goods they sell
Bring buyers and selling together for a fee
Example of agents
Ticketmaster, Amazon, Stubhub
Explain what a wholesaler is
Are retailers who buy goods from manufacturers, store them and sell them in smaller quantities to retailers or sports organizations
Example of a wholesaler
Costco
Explain what a retailer is
Sells directly to the consumer
Describe what a multiple channels of distribution is
Involves more than one type of distribution channel to reach customers
Increases product and service exposure and provides an opportunity to reach different parts of the consumer market
Examples of multiple channels of distribution
Website (direct)
Retail stores (direct)
Sells to retailers such as Foot Locker (indirect)
Explain what an outlet is
A place where a marketed product is released and made available or where it is placed
Example of an outlet
Imagine cinemas - movies
