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Definitions
Distributional Channels
Intermediaries
Retailers
Questions
100
The distribution of products, i.e. how products get from the producer to the consumer.
Place (or distribution)
100
Agents or other businesses that act as a middle person in the chain of distribution.
Intermediaries
100
Businesses that purchase large quantities of products from a manufacturer and then separate the bulk-purchases into smaller units for resale, mainly to retailers.
Wholesalers
100
Small local vendors often owned by a sole proprietor.
Independent retailers
100
What is an online presence?
An online presence is any existence of an individual or business that can be found via an online search.
200
The means used to get a product to the consumer.
Channel of distribution
200
The process of using intermediaries in the chain of distribution between the manufacturers and consumers of a product.
Intermediation
200
Independent and specialist businesses that trade in the products of only a few manufacturers.
Distributors
200
Retailers that have numerous outlets.
Multiple retailers (or chain stores)
200
One limitation of using wholesalers
- The producer takes a risk in passing on the responsibly of marketing its products. - Wholesalers might not promote the manufacturer's products in a way that it might want, thereby ruining the producer's efforts.
300
The use of telephone systems to sell products directly to potential customers.
Telemarketing
300
Where the producer sells directly to the consumer.
Zero-level channel
300
Negotiators who act on behalf of buyers and vendors (sellers) of a product.
Agents (or brokers)
300
Retailers that mainly sell foodstuffs.
Supermarkets
300
One advantage of using wholesalers
- Wholesalers bear the costs of storage. - Lower transaction costs for the producer.
400
Trading via the internet.
E-commerce
400
Uses one intermediary, such as retailers, agents, or distributors to sell products to consumers.
One-level channel
400
The sellers of products to the final consumer.
Retailers
400
Huge outlets that stock a broad range of products, such as foodstuffs and consumer durables.
Hypermarkets (or superstores)
400
What is mail order?
Mail order involves a business sending promotional material via the postal system to entice customers to buy a firm's products.
500
Specialist machines that stock products for sale.
Vending machines
500
Uses two intermediaries, such as wholesalers and retailers to get products to consumers.
Two-level channel
500
The use of a range of channels to distribute products.
Multi-channel distribution strategy
500
Retail outlets that sell a large range of products, such as furniture, jewelry, kitchen equipment, clothing, toys and cosmetics to the general public.
Department stores
500
One advantage and one disadvantage of using direct mail
Advantage: Direct marketing can be highly individualized. Computer programs allow small companies to address consumers by name. Therefore, the message is directed at a particular person as if the owner is speaking directly to them. Disadvantage: People tend to regard much of the correspondence as junk mail, so there is a low response rate.