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MGTA01H3 (583)
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Department
Management (MGT)
Course
MGTA01H3
Professor
Chris Bovaird
Semester
Fall

Description
Ch 9 distribution mixDistribution mix the combination of distribution channels a firm selects to get a product to endusers Intermediaryoften called middlemen any individual or firm other than the producer who participates in a products distributionintermediaries classified as wholesalers or retailersWholesalers intermediaries who sell products to other businesses which in turn resell them to endusers Retailers intermediaries who directly sell products to endusers consumersDistribution channel the path a product follows from the producer to the endusernote that all channels must begin with a producer and end with a consumer or an industrial 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 a commission in return but never takes legal possession of the product oThree distribution strategies intensive exclusive and selective 1 Intensive distribution a distribution in which a product is distributed in nearly every possible outlet using many channels and channel members using both wholesalers and retailers2 Exclusive distribution a distribution strategy in which a products distribution is limited to only one wholesaler or retailer in a given geographic area 3 Selective distribution a distribution strategy that falls between intensive and exclusive distribution calling for the use of a limited number of outlets for a product oIn addition to storing products and providing an assortment of products for their customers wholesalers offer delivery credit and information about products Merchant wholesalers an independent wholesaler that buys and takes legal possession of goods before selling them to customers a fullservice wholesaler provides credit marketing and merchandising services oUnlike merchant wholesalers agents and brokers do not take titlethat is they do not own to the merchandise the sell
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