Chapter 14
Vertical Marketing System (VMS)
a centrally managed distribution channel resulting from vertical channel integration
Middeman (or marketing intermediary)
a marketing organization that links a producer and user within a marketing channel
Retailer
a middleman that buys from producers or other middlemen and sells to consumers
Functional middleman
a middleman that helps in the transfer of ownership of products but does not take title to the products
Wholesaler
a middleman that sells products to other firms
Merchant middle man
a middleman tht actually takes title to products by buying them
Channel of Distribution
a sequence of marketing organizations that directs a product from the producerto the ultimate user
Supply-chain Management
long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies, while creating a competitive advantage and satisfying customers
Full-service wholesaler
middleman that performs the entire range of wholesaler functions
Merchant Wholesaler
middleman that purchases goods in large quantities and then sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users
Vertical channel integration
the combining of two or more stages of a distribution channel under single firm's management
Intensive Distribution
the use of all available outlets for a product
Selective Distribution
the use of only a portion of the available outlets for a product in each geographic area
Exclusive Distribution
the use of only a single retail outlet for a product in a large geographic area