chapter 13 - operations

Distribution Mix

Distribution Mix

The combination of distribution channels by which a firm gets its products to end users.

Intermediaries

Individuals or firms that help to distribute a product by either moving them or providing information that stimulates their movement from sellers to customers.

Wholesaler

An intermediary who sells products to other businesses for resale to final consumers.

Retailer

An intermediary who sells products directly to consumers.

Distribution Channel

The path a product follows from producer to end user.

Direct Distribution

A distribution channel in which a product travels from producer to consumer without intermediaries.

Retail Distribution

Producers distribute consumer products through retailers.

Wholesale Distribution

Traditional method of non-direct distribution where wholesalers store merchandise and restock retailer displays.

Channel Conflict

Conflict arising when the members of a distribution channel disagree over the roles they should play or the rewards they should receive.

Channel Captain

The channel member who is most powerful in determining the roles and rewards of other members.

Merchant Wholesalers

Independent wholesaler who takes legal possession of goods produced by a variety of manufacturers and resells them to other organizations.

E-Intermediary

Internet distribution channel member that assists in delivering products to customers or collects information about sellers.

Syndicated Selling

E-commerce practice whereby a website offers other websites commissions for referring customers.

Shopping Agent (E-Agent)

E-intermediary that assists users in finding products and prices but does not take possession of products.

Sales Agent

Independent intermediary who forms long-term relationships to represent producers and meet the needs of many customers.

Broker

Independent intermediary who matches numerous sellers and buyers as needed, often without knowing in advance who they will be.

Intensive Distribution

Strategy by which a product is distributed through as many channels as possible.

Exclusive Distribution

Strategy by which a manufacturer grants exclusive rights to distribute a product to a limited number of wholesalers or retailers.

Selective Distribution

Strategy by which a company uses only wholesalers and retailers who give special attention to specific products.

Physical Distribution

Activities needed to move products from an intermediary or a manufacturer to customers.

Order Processing

Personal-selling task in which salespeople receive orders and see to their handling and delivery.

Creative Selling

Personal-selling task in which salespeople persuade buyers to purchase products by providing information about their benefits.

Missionary Selling

Personal-selling task in which salespeople promote their firms and products rather than trying to close sales.

Public Relations

Company-influenced information that seeks to build good relations with the public or deal with unfavorable events.