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Marketing Channels

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KEY TERMS
Marketing Channel (channel of distribution) a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user to consumer
Channel members all parties in the marketing channel who negotiate with one another, but and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer
Discrepancy of Quantity the difference between the amount of product produced and the amount an end user wants to buy
Discrepancy of Assortment the lack of all the items a customer needs to receive full satisfaction from a product or products
Temporal Discrepancy a situation that occurs when a product is produced but a customer is not ready to buy it
Spatial Discrepancy the difference between the location of a producer and the location of widely scattered markets
Retailer a channel intermediary that sells mainly to consumers
Merchant Wholesaler an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them
Agents and Brokers wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers
Logistics the efficient and cost-effective forward and reserve flow and storage of goods, services, and related information into, through and out of channel member companies
Direct Channel, a distribution channel in which producers sell directly to consumers
Dual Distribution (multiple distribution) the use of two or more channels to distribute the same product to target markets
Strategic Channel Alliance a cooperative between business firms to use

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