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5. CHAPTER 11 Chpt 11 is about the distribution channels - how do you get the product, physically, from where it is made, to where people are going to buy it Chpt 12 is about storing, transporting etc. Chpt 13 is about different types of retailing and wholesaling firms
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16. Accumulation - combining products from several different producers. “… make it more convenient for companies to buy and handle…” When farmers collect food, and sell them to buyers who gather large amounts for shipping to processors Page 3 7 0
18. Breaking Bulk - take all the product and physically move it into small containers so it can be shipped to wholesalers. “… divide larger quantities into smaller quantities…” Page 3 7 0
19. Separating products into grades and qualities desired by different target markets. Eg. Food products, small onions, large onions, or white eggs, brown eggs or … Sorting Page 3 7 1
20. Taking heterogeneus commodities and sorting them into homogenous categories Eg. All apples into red apples and green apples Sorting Page 3 7 1
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22. “… putting together a variety of products to give a target market what it wants…” ie. In this video store, mostly Asian films ie. In this record store, mostly hip hop ie. In this jewelry store, mostly chains Assorting Page 3 7 1
23. Some stores cannot take the full range of a company’s product line - they do not have the shelf space or floor space - so they carefully select the brands of several mfgs to sell. Assorting Page 3 7 1
24. CHANNEL CAPTAIN PAGE 373 “ A person, or company, that helps direct the activities of a whole channel, and tries to avoid, or solve conflicts…” However, some older products don’t have such a position.
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26. CHANNEL CAPTAIN PAGE 375 Sometimes Middlemen have a clear picture of what the customer wants, and who the producers are, so they arrange for producers to be in contact with the retailers, so more product can flow in the channel. The Middlemen makes more money by making nore commission on stuff sold. Note: explanation on bottom of page 374 and top of page 375
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28. The paths goods follow from consumer to manufacturer or to marketing intermediaries. Common in the recycling industries. Eg. - Empty glass bottles - used batteries - used tires - used printer cartridges - Canon Reverse Channels Page 384
30. Also used for product recalls or for broken products that need to be fixed under Warranty - especially cars, tires and some expensive electronic consumer items. Reverse Channels Important to maintain consumer satisfaction and confidence.
