place vocab

Channel length

The total number of channel members in a channel of distribution.

Channel management

Processes by which marketers ensure that products are distributed to customers efficiently and effectively.

Channel members

Businesses or individuals who assist in moving goods and services from the producer to the consumer.

Channels of distribution

Paths, or routes, that goods or services take from the producer to the ultimate consumer or industrial user.

Chargeback

A financial penalty a middleman assesses to a producer for a variety of issues, such as receiving damaged merchandise.

Direct distribution

A channel of distribution in which goods and services move directly from the producer to the consumer or industrial user.

Distribution intensity

The level of market exposure a certain distribution pattern achieves (refers to intensive, selective, and exclusive patterns).

Dual distribution

Distributing a product through two different channels.

E-commerce

The buying and selling of goods using computers.

Exclusive distribution

A distribution pattern in which a producer sells a product through just one middleman in a geographic area.

Final consumer

An individual who purchases goods and services for their own personal use; also known as an ultimate consumer.

Financing

A marketing function that determines the need for and availability of financial resources to aid in marketing activities.

Horizontal conflict

A type of channel conflict that occurs between channel members at the same level (e.g., two retailers).

Ideal market exposure

Ensuring that a product is available to the target market without overdistributing the product.

Incentive

A reward that motivates a channel member to achieve a specific goal.

Indirect distribution

A channel of distribution in which goods and services move from the producer to the channel members and then to consumers or industrial users.

Industrial user

A business that buys materials, services, or goods to make other goods or for operation.

Intensive distribution

A distribution pattern in which a producer sells a product through every available wholesaler and retailer.

Intermediaries

Channel members operating between the producer and the consumer to help in the movement of goods and services.

Market research

The systematic gathering, recording, and analyzing of data about a specific issue affecting a market.

Marketing information

All the marketing-related data available from inside and outside the business.

Middlemen

See intermediaries.

Multiple distribution

Distributing a product through many different channels.

Point of sale

Store or other locations where products are sold to the final consumer.

Producers

The people who make or provide goods and services.

Product

Marketing element referring to what goods, services, or ideas a business will offer its customers.

Promotion

A marketing function needed to communicate information about goods and services to achieve a desired outcome.

Retailers

Businesses that buy consumer goods or services and sell them to ultimate consumers.

Risk

The possibility of loss or failure.

Sanctions

Financial penalties or fines.

Selective distribution

A distribution pattern in which a producer sells a product through a limited number of middlemen.

Target market

The particular group of customers a business seeks to attract.

Transportation

The act of moving anything from one place to another or the method by which it is moved.

Ultimate consumers

People who personally use a good or service to satisfy their own wants.

Value

The amount of satisfaction a good or service will provide a customer.

Vertical conflict

A type of channel conflict that occurs between channel members at different levels within the same channel.

Wholesalers

Intermediaries who help move goods between producers and retailers.