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Z94.5 - Distribution & Marketing

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VALUE ADDED BY DISTRIBUTION. That portion of the value of a product or service to the consumer or user which results from distribution activities.  This value includes such components as time utility and place utility.

VALUE ADDED BY MARKETING. That portion of the value of a product or service to the consumer or user which results from marketing activities.  This value includes such components as price reduction through economies of scale and buyer awareness of more desirable innovations in products or services.

VARIABLE COSTS. Costs that change with varying production levels; it is generally conceived as being "fixed" per unit of product.

VERTICAL CHANNEL INTEGRATION. Combines two or more stages of the channel process under one management. This may occur when one member of a marketing channel purchases the operation of another member or simply performs the function of another member, eliminating the need for the intermediary as a separate entity.

VERTICAL MARKETING SYSTEM. Distribution systems that are profes-sionally managed, centrally controlled, and created to attain operating economies that would be impossible on a catch-as-catch-can basis.

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