The Marketing Mix – Distribution (Placement)

Supply Chain Management
The coordination of manufacturers, suppliers, and retailers working together to meet a customer need for a product or service.
Distribution
An important component of supply chain management that involves the locations and methods used to make products and services available to customers.
Channels of Distribution
The routes that products and services take from the time they are produced to the time they are consumed.
Direct Channel
A distribution channel that moves the product directly from the manufacturer to the consumer.
Indirect Channel
A distribution channel that uses intermediaries, such as agents and wholesalers, to move products between the manufacturer and the consumer.
Physical Distribution
Includes transportation, storage, handling, and packaging of products within a channel of distribution.
Wholesalers
Channel of distribution that obtains goods from manufacturers and resells them to industrial users, other wholesalers, and retailers.
Retailers
Channel of distribution that buys goods from wholesalers, or directly from manufacturers and resells them to the consumer.
Rack Jobbers
Wholesalers that manage inventory and merchandising for retailers by counting stock, filling it in when needed, and maintaining store displays.
Drop Shippers
Businesses that own the goods they sell but do not physically handle the products.
Brick-and-Mortar Retailers
Traditional retailers that sell goods to customers from physical stores, rather than over the internet.
E-Tailers
Retailers selling products over the Internet to the customer; also known as online retailing.
Agents
Intermediaries who bring buyers and sellers together and do not own the goods they sell.
Transportation
The marketing function of moving a product from the place where it is made to the place where it is sold.
Common Carriers
Trucking companies that provide transportation services to any business in their operating area for a fee.
Contract Carriers
For-hire trucking companies that provide equipment and drivers for specific routes.
Private Carriers
Trucking companies that transport goods for an individual business.
Exempt Carriers
Trucking companies that are free from direct regulation of rates and operating procedures
Ton-Mile
The movement of one ton (2,000 lbs) of freight one mile.
Carload
The minimum number of pounds of freight needed to fill a boxcar.
Freight Forwarders
Private companies that combine less than carload or truckload shipments from several businesses and deliver them to their destinations.
Storage
A marketing function that refers to the holding of goods until they are sold.
Private Warehouse
A facility designed to meet the specific needs of its owner.
Public Warehouse
Storage and handling facilities offered to any individual or company that will pay for its use.
Distribution Center
A warehouse designed to speed delivery of goods and to minimize storage costs.
Bonded Warehouse
Public or private warehouses that store products requiring the payment of a federal tax