| A | B |
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| Channel of Distribution (or marketing channel) | A sequence of marketing organizations that directs a product from the producer to the ultimate user |
| Middleman (or marketing intermediary) | A marketing organization that links a producer and user within a marketing channel |
| Merchant Middleman | A middleman that actually takes title to products by buying them |
| Functional Middleman | A middleman that helps in the transfer of ownership of products but does not take title to the products |
| Retailer | A middleman that buys from producers of other middlemen and sells to consumers |
| Wholesaler | A middleman that sells products to other firms |
| Intensive Distribution | The use of all available outlets for a product |
| Selective Distribution | The use of only a portion of the available outlets for a product in each geographic area |
| Exclusive Distribution | The use of only a single retail outlet for a product in a large geographic area |
| Supply-Chain Management | Long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers |
| Vertical Channel Integration | The combining of two or more stages of a distribution channel under a single firm’s management |
| Vertical Marketing System (VMS) | A centrally managed distribution channel resulting from vertical channel integration |
| Merchant Wholesaler | A middleman that purchases goods in large quantities and then sells them to other wholesalers or retailers and institutional, farm, governmental, professional, or industrial users |
| Full-Service Wholesaler | A middleman that performs the entire range of wholesaler functions |
| General-Merchandise Wholesaler | A middleman that deals in a wide variety of products |
| Limited-Line Wholesaler | A middleman that stocks only a few product lines but carries numerous products items within each line |
| Specialty-Line Wholesaler | A middleman that carries a selected group of products within a single line |
| Limited-Service Wholesaler | A middleman that assumes responsibility for a few wholesale service only |
| Commission Merchant | A middleman that carries merchandise and negotiates sales for manufactures |
| Agent | A middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission base |
| Broker | A middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis |
| Manufacturer’s Sales Branch | Essentially a merchant wholesaler that is owned by a manufacturer |
| Manufacture’s Sales Office | Essentially a sales agent owned by a manufacturer |
| Independent Retailer | A firm that operates only one retail outlet |
| Chain Retailer | A company that operates more then one retail outlet |
| Department Store | A retail store that (1) employs twenty-five or more persons and (2) sells at least home furnishing, appliance, family apparel, and household linens and dry goods, each in a different part of the store |
| Discount Store | A self-service general-merchandise outlet that sells product at lower than-usual prices |
| Catalog Showroom | A retail outlet that displays well known brands and sells them at discount prices through catalogs within the store |
| Warehouse Showroom | A retail facility in a large, low-cost building with a large on premises inventory and minimal service |
| Convenience Store | A small food store that sells a limited variety of products but remains open well beyond normal business hours |
| Supermarket | A large self-service store that sells primarily food and household products |
| Superstore | A large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines |
| Warehouse Club | A large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing |
| Traditional Specialty Store | A store that carries a narrow product mix with deep product lines |
| Off-Price Retailer | A store that buys manufacturers’ seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts |
| Category Killer | A very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability |
| Nonstore Retailing | A type of retailing whereby consumers purchase products without visiting a store |
| Direct Selling | The marketing of products to customers through face-to-face sales presentations at home or in the workplace |
| Direct Marketing | The use of the telephone, Internet, and nonpersonal media to introduce products to customers, who then can purchase then via mail, telephone, or the Internet |
| Catalog Marketing | A type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail telephone, or the Internet |
| Direct-Response Marketing | A type of marketing in which a retailer advertises a product and makes it available through mail, telephone, or online orders |
| Telemarketing | The performance of marketing related activities by telephone |
| Television Home Shopping | A form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card |
| Online Retailing | Retailing that makes products available to buyers through computer connections |
| Automatic Vending | The use of machines to dispense products |
| Lifestyle Shopping Center | An open-air-environment shopping center with upscale chain specialty stores |
| Neighborhood Shopping Center | A planned shopping center consisting of several small convenience and specialty stores |
| Community Shopping Center | A planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores |
| Regional Shopping Center | A planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels |
| Physical Distribution | All those activities concerned with the efficient movement of products from the producer to the ultimate user |
| Inventory Management | The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs |
| Order Processing | Activities involved in receiving and filling customer’s purchase orders |
| Warehousing | The set of activities involved in receiving and storing goods and preparing them for reshipment |
| Materials Handling | The actual physical handling of goods, in warehouses as well as during transportation |
| Transportation | The shipment of products to customers |
| Carrier | A firm that offers transportation services |
| Promotion | Communication about an organization and its products that is intended to inform, persuade, or remind target-market members |
| Promotion Mix | The particular combination of promotion methods a firm uses to reach a target market |
| Integrated Marketing Communications | Coordination of promotion efforts to ensure maximal informational and persuasive impact on customers |
| Advertising | A paid nonpersonal message communicated to a select audience through a mass medium |
| Personal Selling | Personal communication aimed at informing customers and persuading them to buy a firm’s product |
| Sales Promotion | The use of activities or materials as direct inducements to customers or salespersons |
| Public Relations | Communication activities used to create and maintain favorable relations between an organization and various public groups, both internal and external |
| Primary-Demand Advertising | Advertising whose purpose is to increase the demand for all brands of a product within a specific industry |
| Selective-Demand (or band) Advertising | Advertising that is used to sell a particular brand of product |
| Institutional Advertising | Advertising designed to enhance a firm’s image or reputation |
| Advertising Media | The various forms of communication through which advertising reaches its audience |
| Direct-Mail Advertising | Promotional material mailed directly to individuals |
| Yellow Pages Advertising | Simple listings or display advertisements presented under special product categories appearing in print and online telephone directories |
| Out-of-Home Advertising | Short promotional messages on billboards, posters, signs, and transportation vehicles |
| Infomercial | A program length televised commercial message resembling an entertainment or consumer affairs program |
| Advertising Agency | An independent firm that plans, produces, and places advertising for its clients |
| Order Getter | A salesperson who is responsible for selling a firm’s products to new customers and increasing sales to present customers |
| Creative Selling | Selling products to new customers and increasing sales to present customers |
| Order Taker | A salesperson who handles repeat sales in ways that maintain positive relationships with customers |
| Sales Support Personnel | Employees who aid in selling but are more involved in locating prospects, educating customers, building good will for the firm, and providing follow-up service |
| Missionary Salesperson | A salesperson generally employed by a manufacturer who visits retailers to persuade them to buy the manufacturer’s products |
| Trade Salesperson | A salesperson generally employed by a food producer or processor who assists customers in promoting products, especially in retail stores |
| Technical Salesperson | A salesperson who assists a company’s current customers in technical matters. |
| Consumer Sales Promotion Method | A sales promotion method designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products |
| Trade Sales Promotion Method | A sales promotion method designed to encourage wholesalers and retailers to stock and actively promote a manufacturer’s product |
| Rebate | A return of part of the purchase price of a product |
| Coupon | Reduces the retail price of a particular item by a stated amount at the time of purchase |
| Sample | A free product given to customers to encourage trial and purchase |
| Premium | A gift that a producer offers a customer in return for buying its product |
| Frequent-User Incentive | A program developed to reward customers who engage in repeat (frequent) purchase |
| Point-of-Purchase Display | Promotional material placed within a retail store |
| Trade Show | An industry-wide exhibit at which many sellers display their products |
| Buying Allowance | A temporary price reduction to resellers for purchasing specific quantities of a product |
| Cooperative Advertising | An arrangement whereby a manufacturer agrees to pay a certain amount of a retailer’s media const for advertising the manufacturer’s product |
| Publicity | Communication in news-story form about an organization, its products, or both |
| News Release | A typed page of about 300 words provided by an organization to the media as a form of publicity |
| Feature Articles | A piece (of up to 3,000 words) prepared by an organization for inclusion in a particular publication |
| Captioned Photograph | A picture accompanied by a brief explanation |
| Press Conference | A meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs |
| Promotional Campaign | A plan for combining and using the four promotional methods advertising, personal selling, sales promotion, and publicity in a particular promotional mix to achieve one or more marketing goals |
| Positioning | The development of a product image in buyers’ minds relative to the images they have to competing products |
