Chapter 10

Channel of Distribution

The series of firms or individuals participating in the flow of products from producer to consumer.

Discrepancy of Quantity

The difference between the quantity of products it is economical for a producer to make and the quantity final users want.

Vertical Marketing Systems

Channel systems where the entire channel focuses on the same target market.

Channel Captain

A manager who directs the activities of a whole channel to avoid or solve conflicts.

Intensive Distribution

Selling a product through all responsible and suitable wholesalers or retailers.

Selective Distribution

Selling through only those intermediaries who will give the product special attention.

Exclusive Distribution

Selling through only one intermediary in a particular geographic area.

Multichannel Distribution

When a producer uses several competing channels to reach the same target market.

Reverse Channels

Channels used to retrieve products that customers no longer want.

Place

Making goods and services available in the right quantities and locations when customers want them.

Discrepancy of Assortment

The difference between the product lines a typical producer makes and what consumers want.

Regrouping Activities

Adjusting the quantities or assortments of products handled at each level in a channel of distribution.

What is the primary focus of a channel of distribution?

To facilitate the flow of products from producer to consumer.

What does 'discrepancy of quantity' refer to?

The difference between the quantity a producer makes and the quantity consumers want.

Which type of distribution strategy involves selling through all suitable intermediaries?

Intensive distribution.

What is a vertical marketing system?

A system where channel members at different levels work together to meet customer needs.

What is the role of a channel captain?

To direct the activities of the entire channel and resolve conflicts.

What is the primary goal of selective distribution?

To provide special attention to the product through chosen intermediaries.

What characterizes multichannel distribution?

Competing channels to reach the same target market.

What does 'reverse channels' refer to?

Channels used to retrieve products customers no longer want.

What is the difference between vertical and horizontal channel conflict?

Vertical conflict occurs between different levels; horizontal conflict occurs within the same level.

What does 'ideal market exposure' mean?

The product is available widely enough to satisfy customer needs without exceeding them.