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MGTA02H3 (149)
Lecture

Chapter 9 Study Guide

4 Pages
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Department
Management (MGT)
Course Code
MGTA02H3
Professor
Chris Bovaird

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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, see it, 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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Description
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 www.notesolution.com
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