Marketing Channels of Distribution

A channel of distribution is...

• ...a boat company opening a business near a harbor.

• ...how you get somebody to buy your product.

• ...the path a product takes from its producer or manufacturer to the final user.

• ...refers to the size of the sales team in force.

When the product is purchased for use in a business, the final user is classified as a(n)...

• Consumer

• Industrial User

• Retailer

• Wholesaler

Businesses involved in sales transactions that move products from the

manufacturer to the final user are called...

• Rack jobbers

• Industrialists

• Retailers

• Intermediaries

Intermediaries (also known as agents or middlemen) receive a __________ for their work.

• commission

• discount

• percentage of sales

• portion of product

There are two major types of merchant intermediaries: retailers and ________.

Two types of WHOLESALERS are rack jobbers and ___________.

• Retailers

• Drop Shippers

• Product Displayers

• Sales Agents

There are two types of RETAILERS: brick-and-mortar and __________.

• E-Tailers

• Wholesalers

• Big Boxers

• Manufacturers

There are two types of AGENTS who bring buyers and sellers together:

Manufacturer's Reps and ________.

• Distributors

• Go-Betweens

• Brokers

• Sales Reps

What is the main role of an agent in the distribution channel?

• To buy and resell goods for a profit.

• To store goods for manufacturers.

• To negotiate sales on behalf of the producer without taking ownership of the goods.

• To transport goods from the manufacturer to the retailer.

Which of the following best describes channel distribution strategies?

• Strategies that focus solely on product development.

• Methods used by a company to deliver products to the consumer.

• Strategies that involve changing the product's price to influence demand.

• Methods for reducing the cost of production.