Marketing Channels: Distribution Strategies

Front 1

distribution channel

Back 1

institutions transfer ownership of and move goods from the point of production to consumption

Front 2

wholesalers

Back 2

firms buy and take title to physically storing and handling goods in large quantities to sell to consumers in smaller quantities

Front 3

retailers

Back 3

sell products directly to consumers

Front 4

logistics management

Back 4

integration of 2+ activities for the purpose of planning/implementing/controlling the efficient low of raw material in-process inventory and finished goods from the point of origin to the point of consumption

Front 5

direct distribution

Back 5

manufacturers deal directly with customers (ex. Dell laptops)

Front 6

indirect distributions

Back 6

more intermediaries to create product (ex. car parts to create one car)

Front 7

distribution identity

Back 7

number of channel members to use at each level of the supply chain

Front 8

intensive distribution

Back 8

strategy designed to get products into as many outlets as possible

Front 9

exclusive distribution

Back 9

strategy of granting exclusive rights to sell to one or more very few retail customers so no other customers can sell a particular item

Front 10

exclusive geographic territories

Back 10

territories granted one or few retailers using exclusive geographic strategy;no other customers can sell particular brand in these territories

Front 11

selective distribution

Back 11

between exclusive and and intensive;uses a few selected customers in a territory

Front 12

channel conflict

Back 12

results when supply chain members are not in agreement about their goals/roles/rewards

Front 13

vertical marketing system

Back 13

supply chain which the members act as a unified system:admin/contractual/corporate

Front 14

admin vertical marketing system

Back 14

no common ownership and no contractual ownership but the dominant channel member controls channel relationships

Front 15

contractual vertical marketing system

Back 15

different levels of supply chain join together through contracts to obtain economic of scale and coordination and to reduce conflict

Front 16

franchising

Back 16

contractual agreement that allows franchisee to operate a retail outlet supported by franchisor

Front 17

corporate vertical marketing system

Back 17

parent company has complete control and dictate priorities/objective of supply chain

Front 18

distribution centre

Back 18

facility of goods to company stores or customers

Front 19

universal product code (UPC)

Back 19

black and white bar code on merchandise

Front 20

electronic data interchange (EDI)

Back 20

computer-to-computer exchange of business documents from retailer to vendor

Front 21

advanced shipping notice

Back 21

electronic document that the supplier sends to the retailer in advance of a shipment to expect when to receive it

Front 22

strategic relationship (partnering relationship)

Back 22

members committed to maintaining long term and investing in opportunities with mutual benefits

Front 23

dispatcher

Back 23

person who coordinates deliveries to distribution centers

Front 24

radio frequency identification (RFID) tags

Back 24

tiny computer chips that automatically transmit to a special scanner all the info about contents or products

Front 25

just-in-time (JIT) inventory systems

Back 25

inventory management designed to deliver less merchandise on a more frequent basis

Front 26

quick response (QR)

Back 26

inventory management used in retailing:merchandise received just in time for sale when the customer wants it

Front 27

lead time

Back 27

amount of time between recognition that an oder needs to be paced and the arrival of the needed merchandise at the seller's stores ready for sales