Business Essentials Chapter 13: Distributing and Promoting Products

These vocabulary flashcards cover the key distribution channels, retailing types, wholesaling functions, physical distribution components, and promotional tools discussed in Chapter 13.

Distribution Mix

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

Intermediary

An individual or firm that helps to distribute a product.

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

A network of interdependent companies through which a product passes from producer to end user.

Direct Channel

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

Sales Agent

An independent intermediary who generally deals in the related product lines of a few producers and forms long-term relationships to represent those producers and meet the needs of many customers.

Broker

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

Intensive Distribution

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

Exclusive Distribution

A strategy by which a manufacturer grants exclusive rights to distribute or sell a product to a limited number of wholesalers or retailers in a given geographic area.

Selective Distribution

A strategy by which a company uses only wholesalers and retailers who give special attention in sales effort to specific products.

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

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

Merchant Wholesalers

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

Full-Service Merchant Wholesalers

A merchant wholesaler that provides credit, marketing, and merchandising services in addition to traditional buying and selling services.

Limited-Function Merchant Wholesaler

A merchant wholesaler that provides a limited range of services.

Drop Shippers

A limited-function merchant wholesaler that receives customer orders, negotiates with producers, takes title to goods, and arranges for shipment to customers.

E-Intermediary

An Internet distribution channel member that assists in delivering products to customers or that collects information about various sellers to be presented to consumers, or they help deliver online products to buyers.

Syndicated Selling

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

Shopping Agent (e-agent)

An e-intermediary (middleman) in the Internet distribution channel that assists users in finding products and prices but does not take possession of products.

Department Store

A large product-line retailer characterized by organization into specialized departments.

Supermarket

A large product-line retailer offering a variety of food and food-related items in specialized departments.

Specialty Store

A retail store carrying one product line or category of related products.

Bargain Retailer

A retailer carrying a wide range of products at bargain prices.

Discount House

A bargain retailer that generates large sales volume by offering goods at substantial price reductions.

Catalog Showroom

A bargain retailer in which customers place orders for catalog items to be picked up at on-premises warehouses.

Factory Outlet

A bargain retailer owned by the manufacturer whose products it sells.

Wholesale Club

A bargain retailer offering large discounts on brand-name merchandise to customers who have paid annual membership fees.

Convenience Store

A retail store offering easy accessibility, extended hours, and fast service.

Direct-Response Retailing

A form of nonstore retailing in which firms directly interact with customers to inform them of products and to receive sales orders.

Mail Order (catalog marketing)

A form of nonstore retailing in which customers place orders for catalog merchandise received through the mail.

Telemarketing

A form of nonstore retailing in which the telephone is used to sell directly to consumers.

Direct Selling

A form of nonstore retailing typified by door-to-door sales.

Online Retailing

Nonstore retailing in which information about the seller’s products and services is connected to consumers’ computers, allowing consumers to receive the information and purchase the products in the home.

E-catalog

Nonstore retailing in which the Internet is used to display products.

Electronic Storefront

A commercial website at which customers gather information about products and buying opportunities, place orders, and pay for purchases.

Cybermall

A collection of virtual storefronts (business websites) representing a variety of products and product lines on the Internet.

Video Retailing

Nonstore retailing to consumers via home television.

Physical Distribution

The activities needed to move a product efficiently from manufacturer to consumer.

Warehousing

A physical distribution operation concerned with the storage of goods.

Private Warehouse

A warehouse owned by and providing storage for a single company.

Public Warehouse

An independently owned and operated warehouse that stores goods for many firms.

Promotion

An aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product.

Positioning

The process of establishing an identifiable product image in the minds of consumers.

Pull Strategy

A promotional strategy designed to appeal directly to consumers who will demand a product from retailers.

Push Strategy

A promotional strategy designed to encourage wholesalers or retailers to market products to consumers.

Promotional Mix

The combination of tools used to promote a product.

Advertising

A promotional tool consisting of paid, nonpersonal communication used by an identified sponsor to inform an audience about a product.

Advertising Media

A variety of communication devices for carrying a seller’s message to potential customers.

Media Mix

The combination of advertising media chosen to carry a message about a product.

Personal Selling

A promotional tool in which a salesperson communicates one-on-one with potential customers.

Retail Selling

Selling a consumer product for the buyer’s personal or household use.

Industrial Selling

Selling products to other businesses, either for the purpose of manufacturing or for resale.

Order Processing

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

Creative Selling

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

Missionary Selling

A personal-selling task in which salespeople promote their firms and products rather than try to close sales.

Prospecting

A step in the personal selling process in which salespeople identify potential customers.

Qualifying

A step in the personal selling process in which salespeople determine whether prospects have the authority to buy and ability to pay.

Closing

A step in the personal selling process in which salespeople ask prospective customers to buy products.

Sales Promotion

A short-term promotional activity designed to encourage consumer buying, industrial sales, or cooperation from distributors.

Coupon

A sales-promotion technique in which a certificate is issued entitling the buyer to a reduced price.

Premium

A sales-promotion technique in which offers of free or reduced-price items are used to stimulate purchases.

Loyalty Programs

A sales-promotion technique in which frequent customers are rewarded for making repeat purchases.

Point-of-Sale (POS) Display

A sales-promotion technique in which product displays are located in certain areas to stimulate purchase or to provide information on a product.

Trade Show

A sales-promotion technique in which various members of an industry gather to display, demonstrate, and sell products.

Direct (or Interactive) Marketing

One-on-one nonpersonal selling by nonstore retailers and B2B sellers using direct contact with prospective customers, especially via the Internet.

Publicity

A promotional tool in which information about a company, a product, or an event is transmitted by the general mass media to attract public attention.

Public Relations

Company-influenced information directed at building goodwill with the public or dealing with unfavorable events.