Distribution

Distribution (marketing)

Getting products to the market and selling them to consumers.

Disintermediation

occurs when a channel member bypasses another member and sells or buys products direct

breaking bulk

dividing larger quantities of goods into smaller lots in order to meet the needs of buyers

creating assortment

Provide variety of products in one location, so customers can conveniently buy many different items from one seller

intermediaries

Channel members operating between the producer and the consumer or industrial user to help in the movement of goods and services

merchant wholesaler

an independently owned wholesale business that takes title to the merchandise it handles

merchandise agents or brokers

channel intermediaries that provide services in exchange for commissions but never take title to the product

Cash and carry Merchant wholesaler

operate as a merchandise wholesaler, except that the customer must pay cash and pick up goods (not delivered)

truck jobber

Sell a limited assortment of fast-moving or perishable items directly from their vehicles

drop shippers

wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer

mail order wholesaler

Limited-service wholesalers that sell products through catalogs

manufacturer's agents

agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory

selling agents

act as a sales department for a manufacturer. This is a strategy often used if a company is tentatively expanding into a new territory and is not ready to hire a sales force.

commission agents

accepts or sells goods for the account of his principal, but in his own name. Often this implies taking physical ownership and selling the merchandise at trade fairs or shows.

sales branch

manufacturer-owned intermediaries that sell products and provide support services to the manufacturer's sales force

sales offices

Manufacturer-owned operations that provide services normally associated with agents

manufacture'r showroom

manufacturer owned room where merchandise is exhibited for sale or where samples are displayed.

slotting allowance

fees firms pay to retailers simply to get new products into stores or to gain more or better shelf space for their products

administered VMS

a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties

cooperative VMS

a single firm owns manufacturing, wholesaling, and retailing operations. Thus, the firm has complete control over all channel operations.

Contractual VMS

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

Wholesaler sponsored VMS

wholesalers get retailers to work together under their leadership in a voluntary chain

franchise organizations

A contractual vertical marketing system that includes a franchiser (a manufacturer or a service provider) who allows an entrepreneur (the franchisee) to use the franchise name and marketing plan for a fee.

horizontal marketing systems

two or more companies at one level join together to follow a new marketing opportunity

intensive distribution

a form of distribution aimed at having a product available in every outlet where target customers might want to buy it

selective distribution

the use of more than one but fewer than all of the intermediaries that are willing to carry the company's products

exclusive distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

order processing

the receipt and transmission of sales order information

warehousing

storing goods in anticipation of sale or transfer to another member of the channel of distribution

inventory control

involves warehouse management. This includes: barcode scanner integration, reorder reports and adjustments, product details, histories, and locations, inventory lists and counts, syncing stock with sales orders and purchase orders.

retailing

all the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use

shoplifting

a form of larceny in which a person takes items from a store without paying or intending to pay

employee theft

any unauthorized taking of company property by employees for their personal use

retail "borrowing'

the consumer practice of purchasing a product with the intent to return the non defective merchandise for a refund after it has fulfilled the purpose for which it was purchased

customer profiling

the act of tailoring the level of customer service based on a customer's perceived ability to pay

merchandise mix

the total set of all products offered for sale by a retailer, including all product lines sold to all consumer groups

convenience stores

neighborhood retailers that carry a limited number of frequently purchased items and cater to consumers willing to pay a premium for the ease of buying close to home

supermarket

A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products

box stores

food stores that have a limited selection of items, few brands per item, and few refrigerated items

department store

a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers

specialty store

a retail store that carries a narrow product line with a deep assortment within that line

category killer

a giant specialty store that carries a very deep assortment of a particular line

leased departments

departments within a larger retail store that an outside firm rents

discount store

a retailer that competes on the basis of low prices, high turnover, and high volume

off-price retailers

Stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Opportunistic Buying

Purchasing behavior in which off-price retail stores negotiate especially low prices for certain categories of merchandise, such as end-of-season goods and closeouts.

variety store

Outlet that handles a wide assortment of inexpensive and popularly priced goods and services, such as apparel and accessories, costume jewelry, notions and small wares, candy, toys, and other items in the price range.

supercenter

Large stores combining full-line discount stores with supermarkets in one place.

nonstore retailing

the selling of products outside the confines of a retail facility

direct selling

marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace

Green River Ordinances

community regulations that prohibit door-to-door selling unless prior permission is given by the household

party plan system

a sales technique that relies heavily on people getting caught up in the "group spirit," buying things they would not normally buy if they were alone

vending machine sales

Sells policies with large amounts of coverage for a low premium and typically limited coverage period.

e-commerce

the buying and selling of goods over the internet

Omni-channel retailing

creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

The Amazon effect

The impact exerted on both customers and competitors by Amazon, due to its on-going emphasis of developing and continuously refining (and quickly implementing) new ways of connecting customers with solutions

recommerce

many consumers want to squeeze more value out of their possessions by selling or trading them

Upcyling

using discarded products to create a higher-quality, higher-value product.

experiential merchandising

A tactic to convert shopping from a passive activity into a more interactive one by engaging the customer in a participatory experience in the store.