| A | B |
|---|
| Channel members | businesses that take part in a channel of distribution. |
| Channel of distribution | the route a product follows and the businesses involved in moving a product from the producer to the final consumer. |
| Direct channel of distribution | a channel in which products move from the producer straight to the consumer with no other organizations participating. |
| Distribution | the locations and methods used to make a product or service available to the target market; determining the best ways for customers to locate, obtain, and use the products and services of an organization. |
| Gross margin | the difference between the selling price and the product costs. |
| Indirect channel of distribution | a channel in which products move from the producer to the consumer through one or more other businesses. |
| Markdown | a reduction from the original selling price. |
| Markup | the amount added to the cost of a product to set the selling price. |
| Operating expenses | all of the expenses of operating the business that are associated with the product. |
| Price | money customer must pay for a product or service. |
| Product costs | costs to the manufacturer of producing the product or the price paid by other businesses to buy the product. |
| Profit | the amount of money available to the business after all costs and expenses have been paid. |
| Retailer | the final business organization in an indirect channel of distribution for consumer products. |
| Selling price | the price paid by the customer for the product. |
| Wholesalers | intermediaries between manufacturers and retailers. |
