Marketing - Vocabulary - Chapter 21

Direct Distribution

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

Brick-and-Mortar Retailers

Sell goods to customers from their own physical stores.

Retailers

Sell goods to the final consumer for personal use.

E-commerce

The means by which products are sold to customers and industrial buyers through the Internet.

Channel of distribution

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

Intensive Distribution

The use of all suitable outlets to sell a product.

Drop Shippers

These people sell goods to other businesses and have the producer ship the merchandise directly to the buyers. These people own the goods they sell, but do not physically handle the actual products.

Rack Jobbers

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

Selective Distribution

A limited number of outlets in a given geographic area are used to sell the product.

Integrated Distribution

A manufacturer acts as a wholesaler and retailer for its own products by owning and running their own retail operations.

Agents

Act as intermediaries by bringing buyers and sellers together, but they do not own the goods they sell.

E-marketplace

An online shopping location.

Intermediaries

Businesses involved in sales transactions that move products from the manufacturer to the final user; also known as middlemen.

Wholesalers

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

Indirect Distribution

Involves one or more intermediaries.

Exclusive Distribution

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

E-tailing

Involves retailers selling products over the Internet to the consumer.