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MGTA02H3 (136)

Chapter 9 Study Guide

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

CHAPTER 9 Distribution mix: The combination of distribution channels a firm selects to get a product to end- users. purpose of distribution: make to product easy to find & make the product easy to get Intermediary: Any individual or firm other than the producer who participates in a products distribution. Two principle issues: Customers have to be able to find it, seeit, sample it, easily & Customers have to able to buy it quickly and easily Wholesalers: Intermediaries who sell products to other businesses, which in turn resell them to end- users. Retailers: Intermediaries who sell products to end- users. Distribution channel: The path a product follows from the producer to the end- user. Direct channel: A distribution channel in which the product travels from the producer to the consumer without passing through any intermediary. Sales agent (or broker): An independent business person who represents a business and receives commission in return, but never takes legal possession of the product. Intensive distribution: A distribution strategy in which a product is distributed in nearly every possible outlet, using many channels and channel members. Used for low cost goods like candy Exclusive distribution: occurs when a manufacturer grants the exclusive right to distribute or sell a product to one wholesaler or retailer in a given geographic area Selective distribution: A distribution strategy that falls between intensive and exclusive distribution, calling for the use of a limited number of outlets for a project. Merchant wholesaler: An independent wholesaler that buys and takes legal possession of good before selling them to customers. 80% are limited function
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