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Distribution Review

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AB
direct distributionsales of goods or services directly to the customer, with no intermediaries
indirect distributionsales of goods or services to the customer through one or more intermediaries.
common carriertrucking companies that provide transportation services to a business.
contract carriersFor-hire trucking companies that provide equipment and drivers for specific routes.
private carrierstransport goods for one specific business.
drop shipperbusinesses that own the goods they sell but do not physically handle the products.
distribution centerwarehouse designed to speed delivery of goods and to minimize storage costs. Main focus is on moving products not storing them.
rack jobberare wholesalers that manage inventory and merchandising for retailers by counting stock, filling it when needed and maintaining store displays
retailersell goods to the final consumer for personal use. EX: Target, Walmart, etc.
vending servicecompanies buy manufacturers’ products and sell them through machines that dispense goods to consumers.
online etailinginvolves retailers selling products over the Internet to the customer.
agentsdo not own the goods they sell. They act as intermediaries by bringing buyers and sellers together.
independent manufacturing repsrepresent several related (but non competing) manufacturers in a specific industry. They work independently, running their own businesses.
exclusive distributioninvolves protected territories for distribution of a product in a given geographic area. Dealers are assured that they are the only ones within a certain geographic radius that have the right to sell the manufacturer’s or wholesaler’s products.
selective distributionmeans that a limited number of outlets in a given geographic area are used to sell the product. The objective is to select channel members that can maintain the image of the product and are good credit risks, aggressive marketers, and good inventory planners.
intensive distributioninvolves the use of all suitable outlets to sell a product. The objective is complete market coverage, and the ultimate goal is to sell to as many customers as possible, wherever they choose to shop.
wholesalerchannel of distribution that obtains goods from manufacturer and resells them to retailers
manufacturerproduces the product being sold


Marketing Essentials Teacher
Cypress Bay High School

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