Understanding Business: Chapter 15

marketing intermediaries
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C)
channel of distribution
a whole set of marketing intermediaries, such as agents, brokers, wholesalers , and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers
agents/brokers
marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods
wholesaler
a marketing intermediary that sells to other organizations
retailer
an organization that sells to ultimate consumers
utility
the want satisfying ability, or value, that organizations add to goods or services
time utility
adding value to products by making them available when they’re needed
place utility
adding value to products by having them where people want them
possession utility
doing whatever is necessary to transfer ownership from one party to another
information utility
adding value to products by opening two-way flows of information between marketing participants
service utility
adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time
merchant wholesalers
independently owned firms that take title to the goods they handle
rackjobbers
wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment
cash- and carry wholesalers
wholesalers that serve mostly smaller retailers with a limited assortment of products
drop shippers
wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly froma producer to a buyer
intensive distribution
distribution that puts products into as many retail outlets as possible
selective distribution
distribution that sends products to only a preferred group of retailers in the area
exclusive distribution
distribution that sends products to only one retail outlet in a given geographic area
electronic retailing
selling goods and services to ultimate customers over the internet
telemarketing
the sale of goods and services by telephone
direct selling
selling to consumers in their homes or where they work
direct marketing
any activity that directly link manufacturers or intermediaries with the ultimate customer
corporate distributionsystem
a distribution system in which all of the organizations int eh channel of distribution are owned by one firm
contractual distribution system
A distribution system in which members are bound to cooperate through contractual agreements
administered distribution system
a distribution system in which producers manage all of the marketing functions at the retail level
supply chain (value chain)
the sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers
supply-chain management
the process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate
logistics
The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit
inbound logistics
The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers
materials handling
the movement of goods within a warehouse, from warehouses to the factory floor and from the factory floor to various workstations
outbound logistics
the area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me)
reverse logistics
the area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials.
freight forwarder
an organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination
intermodal shipping
the use of multiple modes of transportation to complete a single long distance movement of freight