COMMERCE 2MA3 Study Guide - Final Guide: Electronic Document, Electronic Data Interchange, Management System
27 Apr 2018
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Chapter 12: DISTRIBUTION CHANNELS
Distribution Channel
• The institutions that transfer the ownership of and move goods from the point of
production to the point of consumption.
Supply Chain Management
• Refers to a set of approaches and techniques firms employ to efficiently and
effectively integrate their suppliers, manufacturers, warehouses, stores, and
transportation intermediaries into a seamless value chain in which merchandise is
produced and distributed in the right quantities, to the right locations, and at the
right time.
Wholesalers
• Those firms engaged in buying, taking title to, often storing, and physically handling
goods in large quantities, and then reselling the goods (usually in smaller quantities)
to retailers or industrial or business users.
Retailers
• Sell products directly to consumers.
Logistics Management
• The integration of two or more activities for the purpose of planning, implementing,
and controlling the efficient flow of raw materials, in-process inventory, and
finished goods from the point of origin to the point of consumption.
Channel Structure
Push Marketing Strategy
• Designed to increase demand by focusing on wholesalers, distributors, or
salespeople, who push the product to consumers via distribution channels.
Pull Marketing Strategy
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Document Summary
Distribution channel: the institutions that transfer the ownership of and move goods from the point of production to the point of consumption. Wholesalers: those firms engaged in buying, taking title to, often storing, and physically handling goods in large quantities, and then reselling the goods (usually in smaller quantities) to retailers or industrial or business users. Logistics management: the integration of two or more activities for the purpose of planning, implementing, and controlling the efficient flow of raw materials, in-process inventory, and finished goods from the point of origin to the point of consumption. Push marketing strategy: designed to increase demand by focusing on wholesalers, distributors, or salespeople, who push the product to consumers via distribution channels. Pull marketing strategy: designed to get consumers to pull the product into the supply chain by demanding retailers carry it. Distribution intensity: the number of channel members to use at each level of the supply chain.
