Vocab Set 5

Channels of Distribution

paths or routes that goods or services take from the producer to the ultimate consumer or industrial user

Channel Length

The total number of channel members in a channel of distribution

Channel management

Process by which marketers ensure that products are distributed to customers efficiently and effectively

Channel Members

Businesses or individuals who assist in moving goods and services from the producer to the consumer

Chargeback

A financial penalty a middleman assesses a producer for a variety of issues, such as receiving damaged merchandise

Direct Distribution

A channel of distribution in which goods and services move directly from the producer to the consumer or industrial user

Distributer Intensity

The level of market exposure a certain distribution pattern achieves (refers to intensive, selective, and exclusive patterns)

Dual Distribution

Distributing a product through two different channels

Exclusive Distribution

A distribution pattern in which a producer sells a product through just one middleman in a geographic area

Indirect Distribution

Channel of distribution that has intermediaries

Horizontal Conflict

A type of channel conflict that occurs between members at the same level (ex. two retailers)

Incentive

A reward that motivates a member to achieve a specific goal

Intensive Distribution

A distribution pattern in which a producer sells a product through every available wholesaler and retailer in a geographic area where consumers might look for it

Intermediaries

the middlemen