Chapter 21: Channels of Distribution



Channel of Distribution - the _____ a product takes from its producer or manufacturer to the final userIntermediaries (____________)- businesses involved in sales transactions that move products from the manufacturer to the final userClassified on the basis of whether they take _____(ownership) of goods and servicesMerchant intermediaries (take title)____________________________Agent intermediaries (______________ title)receive a commissionMerchant IntermediariesWholesalers - businesses that buy large quantities of goods from manufacturers and then ________them to retailers Rack jobbers - manage ____________________________ for retailers by counting stock, filling shelves, and maintaining store displaysDrop shippers - _____________ they sell, but they do not physically handle the actual products (bulk goods like coal, chemicals that require special handling)Retailers - sell goods to the ___________________ for personal usebrick-and-mortar retailers - sell goods to customers from their _________________ storese-tailing- retailers selling products _________________________ to the customerAgents - act as intermediaries by bringing buyers and sellers ______________(do not own the goods they sell)Independent manufacturers' representative - work with __________________ (but none competing) manufacturers in a specific industry example: agent carry line of fishing rods from one manufacturer; lures from a 2nd manufacturer; nets from a 3rd manufacturer__________ - bring buyers and sells together in order for a sale to take placeexample: _______________ broker - brings buyer and seller togetherDirect Distribution - occurs when the producer sells goods or services __________________________ with no intermediariesIndirect Distribution - involves ______________ intermediariesDistribution Channels (Consumer Products)Channel A: Manufacturer -- ConsumerSelling at ____________________; Direct sales force (AVON); _______________; Telemarketing; Online sales; TV infomercialsChannel B: Manufacturer -- Retailer -- ConsumerMost commonly used channel for merchandise that dates quickly or _________________Channel C: Manufacturer -- Wholesaler -- _____________ -- Consumermost often used staple goods which are always carried in stock and styles __________________Channel D: Manufacturer -- ________ -- Wholesaler -- Retailer -- ConsumersUsed by companies that wish to concentrate on production and _________________________________Channel E: Manufacturer -- Agent -- Retailer -- ConsumerBusinesses that do not want to handle their ______ to retailers(meat, cosmetics, many supermarket items)Distribution Channels (Industrial Products)Channel A: Manufacturer -- __________________Most often used by _________________ used in manufacturing (copy machine)Channel B: Manufacturer -- Industrial Distributor -- Industrial UserMost often used for small standardized parts and ____________Channel C: Manufacturer -- Agent -- Industrial Distributor -- Industrial User_________manufacturers often prefer this channelChannel D: Manufacturer -- Agent -- Industrial UserUsed by producers that ________________ or want a sales forceDistribution PlanningMultiple Channels - Producers use multiple channels when the product fits the needs of ______industrial and consumer marketsDistribution IntensityExclusive Distribution - distributing a product in ________________________ in a geographic area (prestige, ___________, channel control)high profit margin (example: John Deere)________________________ - manufacturer owns and runs their own retail operations (GAP, Sherwin-Williams)Selective Distribution - ___________________ of outlets in a geographic area sell a productmanufacturer select channel members than can maintain the image of the product (examples: Vera Wang; Armani)Intensive Distribution - use of all suitable outlets to sell a product _______________________________ (examples: gum; soft drinks)E-Commerce - electronic commerce___________ distribution still growing dramaticallyMuch more ____________B2B growing alsoDistribution planning for Foreign MarketsForeign market environments require that businesses ___________ their distribution systemsIn France, Reebok distributes its shoes thru traditional retail shoe outlets instead of sporting good stores (sales ______________) ................
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