Marketing Essentials - Ch 21

Channel of Distribution

The path a product takes from its producer or manufacturer to the final user.

Intermediaries

Businesses involved in sales transactions that move products from the manufacturer to the final user.

Wholesalers

Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses.

Rack Jobbers

Wholesalers that manage inventory and merchandising for retailers by counting stock, filling it in when needed, and maintaining store displays.

Drop Shippers

Own the goods they sell but do not physically handle the actual products.

Retailers

Sell goods to the final consumer for personal use.

Brick-and-mortar Retailers

Sell goods to the customer from their own physical stores.

e-tailing

Involves retailers selling products over the internet to the customer.

Agents

Act as intermediaries by bringing buyers and sellers together.

Direct Distribution

Occurs when the producer sells goods or services directly to the customer, with no intermediaries.

Indirect Distribution

Involves one or more intermediaries.

Exclusive Distribution

Involves protected territories for distribution of a product in a given geographic area.

Integrated Distribution

When manufacturers own and run their own retail operations.

Intensive Distribution

The use of all suitable outlets to sell a product.

e-marketplace

The online shopping location for retail selling over the internet.