Indirect Distribution System

A distribution design where a marketer reaches the intended final customer by distributing a product indirectly through resellers who generally take ownership of the product and in doing so the resellers assume many responsibilities to help sell the product.

Direct Distribution System

A distribution design where a marketer reaches the intended final customer by distributing the product directly to the customer and includes Direct Marketing Systems, Direct Retail Systems, Personal Selling Systems and Assisted Marketing Systems.

Distribution Center

A type of warehouse where product storage is a temporary activity with products being received from many suppliers and then quickly shipped to many customers.

Distribution Packaging

Packaging generally offering a higher level of damage protection than the final customer package and used to transport the final customer package through the supply chain often within a multiple unit container.

Channel of Distribution

The activities and organizations that assist a marketer in moving products (goods or services) from the hands of the marketing company to the hands of the final customer.

Mass Coverage Distribution (also Intensive Distribution)

Distribution strategy that attempts to have products made available in nearly all locations in which that type of product is sold though this strategy is generally only feasible for low priced products that appeal to very large target markets (e.g., consumer convenience products).

Exclusive Coverage Distribution

Distribution strategy that attempts to have products made available to a very select or exclusive group of outlets either because these are high-end products targeted to a relatively small number of customers or because the marketer limits supply to their own outlets.