Chapter 14

Consumer

If you are the end user of products like toothpaste, bottled water, recipe books, and stereo speakers, in "Intro to Business" terminology, what would you most likely be called?

Exclusive Distribution

Let's imagine, for example, that a particular wholesaler (company A) of premium wines in the southeastern U.S. joined with another company (company B) who just happened to be one of the top 10 largest wine and spirits distributors in the country, to become the exclusive distribtor of a brand of cognac in L.A. (Lower Alabama). What would this particular union be called?

Marketing Intermediaries

Organizations that assist in moving goods and services from producers to end users.

Manufacturers' Representatives

Salespeople who represent noncompeting manufacturers; function as independent agents rather than as salaried employees of the manufacturers.

Category Management

Suppliers manage the inventory of a category of products for a retailer.

Distribution Channel

The series of marketing entities through which goods and services pass on their way from producers to end users.

What do manufacturer's representatives ususally do?

They bring buyers and sellers together, promotes products, make commission either from buyer or seller.

What are examples of non-store retailing?

Vending machines, direct selling, direct- response marketing, home shopping networks, and internet retailing.

Distribution Centers

Warehouses that specialize in rapid movement of goods to retail stores by making and breaking bulk.

Broker

What would you call someone who is a "go-between, bringing buyers and sellers together?

Full-Service Merchant Wholesalers

Wholesalers that provide many services for their clients, such as providing credit, offering promotional and technical advice, storing and delivering merchandise, or providing installation and repairs.

Limited- Service Merchant Wholesalers

Wholesalers that typically carry a limited line of fast-moving merchandise and don't offer many services to their clients.

Wholesalers

Firms that sell finished goods to retailers, manufacturers, and institutions.

Retailers

Firms that sell goods to consumers and to industrial users for their own consumption.

Brokers

Go-betweens that bring buyers and sellers together

Intensive Distribution

If a manufacturer wants to sell its product through as many dealers as possible, and reach as many customers as possible, what type of distribution system should it use?

Industrial Distributors

Independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users.

Strategic Channel Alliances

One manufacturer using another manufacturer's previously established channel to distribute its goods.

Agents

Sales representatives of manufacturers and wholesalers.

What do distribution centers usually do?

Sorting out, accumulating,and allocating.

Breaking Bulk

The process of breaking large shipments of similar products into smaller, more usuable lots.

Outsourcing ( or contract logistics)

Turning over all or part of the logistics function to an independent third party.

Dual Distribution (Mulitiple Distribution)

Two or more channels that distribute the same product to target markets.

Selective Distribution

A distribution system in which a manufacturer selects a limited number of dealers in an area( but more than one or two) to market its products.

Exclusive Distribution

A distribution system in which a manufacturer selects only one or two dealers in an area to market its products.

Merchant Wholesaler

An institution that buys goods from manufacturers (take ownership) and resells them to businesses, government agencies, other wholesalers, or retailers.

Electronic Data Interchange (EDI)

Computer-to-computer exchange of information, including automatic shipping notifications. invoices, inventory data, and forecasts; used in efficient consumer response systems.

What types of industries usually involve brokers?

Cosmetics, Novelties, Small Hardware, Household items, ect.

Intensive Distribution

A distribution systemin which a manufacturer tries to sell its products wherever there are potential customers.

Cash and Carry Wholesale

A limited-service merchant wholesaler that doesn't offer credit or delivery service.

Efficient Consumer Response (ECR)

A method of managing inventory and streamlining the movement of products from supplier to distributor to retailer; relies on electronic data interchange to communicate information such as automatic shipping notifications, invoices, inventory data, and forecasts.

Manufacturer

A producer; an organization that converts raw materials to finished products.

Inventory Control System

A system that maintains an adequate assortment of items to meet a user or customer's needs.

Distribution

Efficiently managing the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.