Distribution Channels and Strategies

These flashcards cover essential vocabulary and concepts related to distribution channels and marketing strategies, helping to prepare students for their exam.

Distribution Channel

A set of interdependent organizations involved in the process of making a product or service available to the final consumer.

Intermediary

An entity such as a wholesaler, retailer, or distributor that stands between producers and consumers in a distribution channel.

Push Strategy

Marketing efforts directed at channel members to gain their cooperation in pushing a product through the distribution channel.

Pull Strategy

Marketing efforts directed at ultimate consumers to create demand and pull the product through the distribution channel.

Channel Width

The number of different types of outlets involved in distributing the end product to the consumer.

Channel Length

The number of intermediaries involved in delivering the product to the end customer.

Place Utility

The value added to a product by having it available at the right location for consumers.

Time Utility

The value added to a product by making it available at the right time for consumers.

Product Utility

The value added by intermediaries who provide a variety of goods that match consumer preferences.

Horizontal Conflict

Conflict that occurs among firms at the same level of the channel.

Vertical Conflict

Conflict that arises between different levels of the same distribution channel.

Exclusive Distribution

A distribution strategy that involves a limited number of outlets for selling a product.

Intensive Distribution

A distribution strategy that seeks to place products in as many outlets as possible.

Marketing Research

The process of gathering, analyzing, and interpreting information about a market.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs or behaviors.

Three Ways Intermediaries Add Value

Product Utility, Time Utility, Place Utility.