4.5 Glossary of key terms

Unit 4.5 Glossary of key terms - Place

Key term	Definition
Agents	Also known as brokers, these independent intermediaries help to sell a vendor’s products in return for commission, e.g., real estate agents.
Distribution (place)	The marketing process of getting the right products to the right customers in the right place and at the right time, e.g., wholesalers, retailers, agents, e-commerce, and vending machines.
Distribution channel	Also known as a channel of distribution, this refers to the path taken for a product to get from the producer to the consumer.
Intermediary	A third-party person or business that offers distribution services as part of a channel of distribution, such as agents, wholesalers, and retailers.
Intermediation	The marketing process of using a middle person or distributor as channels of distribution between the producer and consumers.
Mail order	A form of distribution channel that enables customers to receive their goods via postal services.
Multi-channel distribution strategy	This refers to a firm’s use of a different distribution channels to get its products to customers.
One-channel distribution network	This method of distribution involves the use of a single intermediary, such as an agent or retailers.
Retailers	These are commercial businesses that sell a manufacturer’s products directly to consumers.
Telemarketing	The use of telephone systems to sell products directly to the potential customers, such as insurance, movie tickets or package holidays.
Three-channel distribution network	This type of distribution channel uses three intermediaries. It often involves an agent who sells the goods to wholesalers on behalf of the producer. In turn, wholesalers sell to retailers.
Two-channel distribution network	This method of distribution involves the use of two intermediaries, usually wholesalers and retailers.
Wholesalers	These are intermediaries that buy products from a manufacturer and sell these in smaller quantities to retailers.
Zero-channel distribution network	Also known as direct distribution, this method does not use any intermediaries, i.e., the producer sells directly to the consumer.

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