A distribution system in which producers manage all of the marketing functions at the retail level. Ex. Kraft.
Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods.
Wholesalers that serve mostly smaller retailers with a limited assortment of products.
Channel of distribution
A whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers that join together to transport and store goods in their path (or channel) from producers to consumers. P. 404
Contractual distribution system
A distribution system in which members are bound to cooperate through contractual agreements. Three types: franchise systems, wholesaler-sponsored chains, and retail cooperatives
Corporate distribution system
A distribution system in which all of the organizations in the channel of distribution are owned by one firm.
Any activity that directly links manufacturers or intermediaries with the ultimate consumers.
Selling to consumers in their homes or where they work.
Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer. Own merchandise but don't handle stock or deliver it.
Selling goods and services to ultimate customers (e.g., you and me) over the internet.
Distribution that sends products to only one retail outlet in a given geographic area.
An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destinations.
The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers.
Adding value to products by opening two-way flows of information between marketing participants.
Distribution that puts products into as many retail outlets as possible.
The use of multiple modes of transportation to complete a single long-distance movement of freight.
The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Marketing intermediaries (middlemen)
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).
The movement of goods within a warehouse, form warehouse to the factory floor, and from the factory floor to various workstations. Part of logistics.
Independently owned firms that take title to the goods they handle.
The area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me).
Adding value to products by having them where people want them.
Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.
Wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment.
An organization that sells to ultimate consumers (people like you and me).
The area of logistics that bringing goods back to the manufacturer because of defects or for recycling materials.
Distribution that sends products to only a preferred group of retailers in an area.
Adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time.
Supply chain (or value chain)
The sequence of linked activities that must be performed by various organizations to move goods from the source of raw materials to ultimate consumers.
The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate.
The sale of goods and services by telephone.
Adding value to products by making them available when they're needed.
In economics, the want-satisfying ability, or value, that organizations add to goods and services. Ex. Time, place, possession, information, and service utilities.
A marketing intermediary that sells to other organizations. Part of B2B system.