Distribution Channels Flashcards

Flashcards covering key vocabulary related to distribution channels.

Distribution Channel (Marketing Channel)

A set of interdependent organizations that help make a good or service available for use or consumption by the consumer or business user.

Channel Level

A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

Direct Distribution

A marketing channel that has no intermediary levels. The producer goes directly to the consumer (includes online channels & DTC subscriptions).

Indirect Distribution

A marketing channel containing one or more intermediary levels.

Multichannel Distribution

A distribution system in which a single producer sets up two or more marketing channels to reach one or more customer segments.

Out-of-stocks

The absence of available product for customers due to poorly managed distribution channels

Bloated inventories

Inventory in excess of market demand due to poorly managed distribution channels.

Channel Conflict

Disagreements among marketing channel members on goals, roles, and rewards – who should do what and for what rewards.

Horizontal Conflict

Channel conflict that occurs among firms at the same level of the channel.

Vertical Conflict

Channel conflict that occurs between different levels of the same channel.

Intensive Distribution

Distribution in every reasonable outlet.

Selective Distribution

A limited number of retailers are utilized to reach the target market.

Exclusive Distribution

Only one, or a very limited number of retailers, market the product in a particular geographic area.

% All Commodity Volume (% ACV)

A measure of brand distribution.

% Product Category Volume (% PCV)

The best option for distribution breadth.

Total Distribution Points (TDPs)

Captures Distribution Breadth and Depth

Equivalized SKUs

A more intuitive way to express TDPs (Total Distribution Points)

Transactional Function

Activities related to buying, selling, and risk-taking within a distribution channel.

Logistical Function

Activities related to assorting, storing, sorting, and transporting products within a distribution channel.

Facilitating Function

Activities related to financing, grading, marketing information, and research within a distribution channel.