WF Marketing
Lap 2
Chart Your Channels
Glossary
1. Channel length: The total number of channel members in a channel of distribution
2. Channel management: Processes by which marketers ensure that products are distributed to
customers efficiently and effectively
3. Channel members: Businesses or individuals who assist in moving goods and services from the
producer to the consumer
4. Channels of distribution: Paths, or routes, that goods or services take from the producer to the
ultimate consumer or industrial user
5. Chargeback: A financial penalty a middleman assesses a producer for a variety of issues, such as
receiving damaged merchandise
6. Direct distribution: A channel of distribution in which goods and services move directly from the
producer to the consumer or industrial user
7. Distribution intensity: The level of market exposure a certain distribution pattern achieves
(refers to intensive, selective, and exclusive patterns)
8. Dual distribution: Distributing a product through two different channels
9. E-commerce: The buying and selling of goods using computers
10. Exclusive distribution: A distribution pattern in which a producer sells a product through just
one middleman in a geographic area
11. Financing: A marketing function that determines the need for and availability of financial
resources to aid in marketing activities
12. Horizontal conflict: A type of channel conflict that occurs between channel members at the same
level (e.g., two retailers)
13. Ideal market exposure: Ensuring that a product is available to the target market without
overexposing the product
14. Incentive: A reward that motivates a channel member to achieve a specific goal
15. Indirect distribution: A channel of distribution in which goods and services move from the
producer to the channel members and then to consumers or industrial users
16. Industrial user: A business that buys materials, services, or goods which will be used to make
other goods or which will be used in the operation of the company
17. Intensive distribution: A distribution pattern in which a producer sells a product through every
available wholesaler and retailer in a geographic area where consumers might look for it
18. Intermediaries: Channel members operating between the producer and the consumer or
industrial user to help in the movement of goods and services
19. Marketing information: All the marketing-related data available from inside and outside the
business
20. Middlemen: See intermediaries
21. Multiple distribution: Distributing a product through many different channelsl o s s a r y (cont’d)
22. Producers: The people who make or provide goods and services
23. Product: Marketing element referring to what goods, services, or ideas a business will offer its
customer
24. Promotion: A marketing function needed to communicate information about goods, services,
images, and/or ideas to achieve a desired outcome
25. Retailers: Businesses that buy consumer goods or services and sell them to ultimate consumers
26. Risk: The possibility of loss or failure
27. Sanctions: Financial penalties or fines
28. Selective distribution: A distribution pattern in which a producer sells a product through a
limited number of middlemen in a geographic area
29. Target market: The particular group of customers a business seeks to attract
30. Ultimate consumers: People who personally use a good or service to satisfy their own wants
31. Value: The amount of satisfaction a good or service will provide a customer
32. Vertical conflict: A type of channel conflict that occurs between channel members at different
levels within the same channel
33. Wholesalers: Intermediaries who help to move goods between producers and retailers by buying
goods from producers and selling them to retailers