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place
making goods and serves available in the right quantities and locations
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channel of distribution
any series of firms or individuals who participare in the flow of products from producer to final user or consumer
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direct marketing
- direct communication between a seller and an individual customer using a promotion method other than face-to-face personal selling.
- coupled with direct distribution
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discrepancy of quantity
the difference between the quantity of products it is economical for a producer to make and the quantity final users or consumers normally want.
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discrepancy of assorment
the difference between the lines a typical producer makes and the assorment final consumers or users want.
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regrouping activities
adjust the quantities or assorments of products handled at each level in channel of distribution.
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accumulating
collecting products from many small producers.
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bulk-breaking
dividing larger quantities into smaller quantities as products get closer to the final market.
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sorting
separating products into grades nd qualities desired by different target markets.
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assorting
putting together a variety of products to give a target market what it wants.
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traditional channel systems
the various channel members make little or no effort to cooperate with each other. they buy and sell from each other and that's it.
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channel captain
a manager who helps direct the activities of a whole channel and tries to avoid or solve channel conflicts.
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vertical marketing systems
channel systems in which the whole channel focuses on the same target market at the end of the channel.
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coorporate channel systems
corporate ownership along the channel.
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vertical integration
acquiring firms at different levels of channel activity.
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administered channel systems
the channel membersinformally agree to cooperate with each other.
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contractual channel systems
the channel memebers agree by contract to cooperate with each other.
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ideal market exposure
makes a product available widely enough to satisfy target customers' needs but not exceed them. too much exposure only increases the toal cost of marketing.
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intensive distribution
selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
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selective distribution
selling through only those intermediaries who will give the product special attention.
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exclusive distribution
selling through only one intermediary in a particular geographic area.
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multichannel distribution
when a producer uses several competing channels to reach the same target market.
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reverse channels
channels used to retrieve products that customers no longer want.
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exporting
selling some of what the firm produces in foreign markets.
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licensing
selling the right to use some process, trademark, patent or other right for a fee or royalty.
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management contracting
the seller provides only management and marketing skills-others own the production and distribution facilities.
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joint venture
domestic firm enters into a partnership with a foreign firm.
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direct investment
a parent firm has a division (or owns a separate subsidary firm) in a foreign market.
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logistics
the transporting, storing and handling of goods in ways that match target customer's needs with a firm's marketing mix- both within a individual firms and along a channel of distribution.
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physical distribution
another common name for logistics
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customer service level
how rapidly and dependably a firm can deliver what the customers want.
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physical distribution concept
says that all transporting, storing and product-handling activities of a business and a whole channel system should be coordinated as one system that seeks to minimize the cost of distribution for a given customer service level.
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total cost approach
involves evaluating each possible PD system and identifying all of the costs of each alternative.
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supply chain
the complete set of firms and facilities and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to the customers.
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electronic data interchange (EDI)
an approach that puts information in a standardized format easily shared between different computer systems
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transporting
- the marketing function of moving goods.
- railroads-low cost
- trucks-more expensive but flexible and essential
- ship-overseas but slowly
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containerization
grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination.
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storing
the marketing function of holding goods so they're available when they're needed.
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inventory
the amount of foods being stored.
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private warehouses
storing facilities owned or leased by companies for their own use.
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public warehouses
independent storing facilities.
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distribution center
special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing cost.
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retailing
covers all of the activities involved in the sale of products to final consumers.
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general stores
- carried anything they could sell in reasonable volume.
- old
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single-line or limited-line stores
stores that specialize in certain lines of related products rather than a wide assortment.
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specialty shop
a type of conventional limited-line store, usually small and has a distinct 'personality'
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department stores
larger stores that are organized into many separate departments and offer many product lines.
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mass-merchandising concept
says retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets
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supermarkets
large stores specializing in groceries with self-service and wide assortments.
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discount houses
offer hard goods (cameras, tv's, appliances) at substantial price cuts to customers who would go to the discounter's low-rent store, pay cash and take care of any service or repair problems themselves.
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mass-merchandisers
large, self-service stores with many departments that emphasize on soft goods (housewares, clothing and fabrics) and staples but still follow the discount house's emphasis on lower margins to get faster turnover.
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supercenters
very large stores that try to carry not only good and drug items but all goods and services that the consumer purchase routinely.
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convenience (food) goods
convenience-oriented variation of the conventional limited-line food stores.
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automatic vending
selling and delivering products through vending machines.
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door-to-door selling
a salesperson going directly to the consumer's home to sell a product.
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telephone and direct-mail retailing
allow consumers o shop at home. placing orders by mail or telephone calls.
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wheel of retailing theory
says that new types of retailers enter the market at low-status, low-margin, low-price operation and then, if successful, evolve in more conventional retailers offering more services with higher operating costs and higher prices.
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scrambled merchandising
carrying any product lines they think they can sell profitably.
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corporate chain
a firm that owns and manages more than one store and often it's many.
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cooperative chains
retailer-sponsored groups formed by independent retailers that run their own buying organizations and conduct joint promotion efforts.
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voluntary chains
wholesaler-sponsored groups that work with indepenedent retailers
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franchise operation
the franchisor develops a good marketing strategy and the retail franchise holders carry out the strategy in their own units.
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wholesaling
concerned with the activities of those persons or establishments that sell to retailers and other merchants or to industries, institutional and commercial users but that do not sell in large amounts to final consuemers.
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wholesalers
firms whose main function is providing wholesaling activities.
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manufacturer's sales branches
warehouses that producers set up at separate locations away from their factories.
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merchant wholesalers
own the products they sell. they take title to these products.
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service wholesalers
merchant wholesalers that provide all the wholesaling functins
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general merchandise wholesalers
service wholesalers that carry a wide variety of nonperishable items such as hardware, electrical supplies, furniture, drugs, cosmetics and automobile equipment.
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single-line (general-line) wholeslers
service wholesalers that carry a narrower line of merchandise than general merchandise wholesalers.
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specialty wholesalers
service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers.
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limited function wholesalers
provide only some wholesaling functions
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cash and carry wholesalers
operate like service wholesalers except that the customer must pay cash.
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drop-shippers
own the products they sell but they do not actually handle stock or deliver them.
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truck wholesalers
specialize in delivering products that they stock in their own trucks.
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rack jobbers
specialize in hard-to-handle assortments of products that a retailer doesn't want to manage. display products on their own wide racks.
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catalog wholesalers
sell out of catalogs that may be distributed widely to smaller industrial customers or retailers that might not be called on by other wholesalers.
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agent wholesalers
wholesalers who do not own the products they sell.
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manufacturers' agent
sell similar products for several noncompeting producers- usually for a commission of what is sold.
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export or import agents
specially in international trade.
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brokers
bring nuyers and sellers together.
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export and import brokers
work like brokers but bring buyers and sellers together in different countries.
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selling agents
take over the whole marketing job of producers, not just the selling fuction.
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combination export manager
blend of manufacturer's agent and selling agent.
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auction companies
provide a place where buyers and sellers can come together and bid to complete a transaction.
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