Terms in this set (28)
Organizing and moving products through
aka: Logistics = ordering, transporting,
storing, handling and inventory control
Location - having the product where customers can buy it
Having the product available when the customer
businesses involved in sales transactions that move products from the manufacturer to the final user.
businesses that buy large quantities of goods from
manufacturer's (producers), store the goods, and then resell them to retailers
They make the products then sell them to
either a wholesaler (as in the game) or directly to a retailer
sell goods to the final consumer for personal use. Walmart!
A horizontal conflict refers to a disagreement among two or more channel members at the same level. For example, suppose a toy manufacturer has deals with two wholesalers, each contracted to sell products to retailers in different regions.
Channel of distribution
A distribution channel is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet.
a type of wholesaler . . . They manage inventory and
merchandising for retailers by counting stock, filling the shelves when needed, and
maintaining store displays. They provide the racks for display of products in a retail
store. They bill the retailer only for the goods sold, not for all the items on display.
a type of wholesaler . . . They own the goods they sell, but
they do not physically handle the actual products. They deal in bulk, or large
quantities of items, such as coal, lumber, and chemicals that require special handling.
traditional retailers that sell goods to
customers from their own physical stores
also called e-tailing or online retailing, this
involves retailers selling products over the Internet to the customer
Some e-tailing companies are found only on the Internet, such as amazon.com or overstock.com
unlike wholesalers and retailers, agents do not own the goods they sell.
Agents act as intermediaries by bringing buyers and sellers together. There are two
different types of agents: manufacturers' representatives and brokers.
Direct - occurs when the producer sells goods or services directly to the
customer with no intermediaries
Indirect - involves one or more intermediaries
involves distribution of a product in protected territories in a given geographic area.
Dealers are assured that they are the only ones within a certain geographic radius that have the right to sell the
manufacturer's or wholesaler's products.
some manufacturers own and run their own retail operations. This variation on
distribution is integrated distribution. The manufacturer acts as wholesaler and retailer for its own products
EX: Gap Inc. sells its clothing in company-owned retail stores
means that a limited number of outlets in a given geographic area sell a manufacturer's
product. The goal is to select channel members that can maintain the image of the product. These channel members are
also good credit risks, aggressive marketers, and good inventory planners.
involves the use of all suitable outlets to sell a
product. The objective is complete market coverage, and the ultimate goal is to sell
to as many customers as possible, in all the various locations they shop.
EX: Motor oil. Motor oil is marketed in quick-lube shops, farm stores, auto-parts retailers,
supermarkets, drugstores, hardware stores, warehouse clubs, and other mass
merchandisers to reach the maximum number of customers
trucking companies that provide transportation services to any business
in their operating area for a fee. Common carriers must treat all customers equally. More than
one-third of all motor freight is handled by common carriers
for-hire trucking companies that provide equipment and drivers for
specific routes, according to agreements between the carrier and the shipper. A contract carrier
can provide services on a one-time basis or on a continuing basis.
trucking companies that transport goods for an individual business. A
company can own or lease transportation equipment.
trucking companies that are free (exempt) from direct regulation of rates
and operating procedures. This exemption allows their rates to be lower than those of common
part of a marketing function and refers to the holding of goods until they are
sold. The amount of goods stored is called an "inventory"
a storage facility designed to meet the specific needs of its owner. Any producer, wholesaler, or retailer has the option of owning a private warehouse.
a storage and handling facility offered to any individual or company that will pay for its use
a warehouse designed to speed delivery of goods and to minimize storage costs.