A channel of distribution refers to the means or pathway used to transfer merchandise from the manufacturer to the end user. The intermediaries involved in this process are known as middlemen, and they can either take title to the merchandise or not.
Cooperative advertising, often referred to as co-op advertising, is a cost-sharing arrangement where manufacturers and retailers or distributors collaborate to promote a product or brand. This mutually beneficial strategy leverages the strengths and resources of both parties to optimize marketing efforts and expand market reach.
Distribution refers to various processes including the payment of dividends, the final settlement of a company's assets upon winding up, allocation of a person's property, and the channeling of goods to consumers.
The network of firms essential for distributing goods or services from producers to consumers. This setup primarily includes wholesalers and retailers.
Horizontal conflict refers to discord between competitors operating at the same level within a marketing channel, often resulting in market oversaturation and severe competition. It contrasts with vertical conflict, involving different levels within the distribution hierarchy.
A Percentage Lease is a lease agreement where the rental payment is based on a percentage of the tenant's sales volume made at the leased property, often with a stipulated minimum rent. This type of lease is frequently used by retailers.
A promotional allowance is a reduction of the wholesale price as an incentive to retailers or middlemen. It compensates the retailer for expenditures made promoting the product.
Trade promotion refers to marketing efforts directed at retailers, distributors, or wholesalers to boost product sales and increase distribution. These promotions often involve special pricing, display allowances, or additional marketing support.
A trade rate is a special price offered to retailers by wholesalers, manufacturers, or distributors, or by a seller to individuals or organizations in a related industry.
Vertical conflict represents the disagreements and disputes that arise between different hierarchical levels within the same channel of distribution, such as between manufacturers and retailers. This often results from mismatched objectives or perspectives regarding product sales and promotions.
