Chapter 15 Market intermediaries business to consumer goods Channel of distribution producers to consumers Agents and brokers Organizations that assist in moving goods and services from business to business and Called intermediaries because they re in the middle of a series of firms that distribute A group of marketing intermediaries that join together to transport and store goods from Intermediaries who bring buyers and sellers together and assist in negotiation an exchange but do not take title to the goods that they offer Intermediary that sells products to other organizations such as retailers manufacturers and hospitals Wholesaler Retailers Organization that sells products to ultimate consumers Intermediaries perform marketing tasks faster and cheaper than most manufacturers could provide them Make markets more efficient by reducing transactions and contacts Utility the want satisfying ability or value that organizations add to goods and services by making them more useful or accessible to consumers Form changes raw materials into useful products Time makes products available when customers want them Place adds value to products by placing them where people want them Possession helps transfer ownership from one party to another including providing credit Service provides service during and after sale and teaches customers how to best use Information opens 2 way flows of info between marketing participants product Retail sales Wholesale sales Sales of goods and services to customers for their own use Sales of goods and services to other business for use in the business or resale Consumers are more familiar with retailers Merchant wholesalers Independently owned firms that take title to the goods they handle 80 of wholesalers are merchant wholesalers Full service wholesalers Perform all distribution functions Limited function wholesalers Perform only selected distribution functions Rack jobbers Furnish racks or shelves of merchandise such as music magazines and hosiery for retailers for display and sell them on consignment Cash and carry wholesalers Serve mostly smaller retailers with a limited assortment of products Take orders from retailers and other wholesalers and have the merchandise shipped from Represent several manufacturers in a specific territory Represent a single client in a larger territory Brokers usually represent clients on a temporary basis Drop shippers producer to buyer Manufacturers agents Sales agents Intensive distribution Selective distribution Exclusive distribution Puts products into as many retail outlets as possible including vending machines Uses only a preferred group of the available retailers in an area Use of only one retail outlet in a given geographic area Electronic retailing selling goods and services to ultimate consumers over the Internet Telemarketing sale of goods and services via the telephone Direct selling selling goods and services to customers in their homes or workplaces Multilevel marketing uses salespeople who work as independent contractors Direct marketing any activity that directly links manufacturers or intermediaries with ultimate consumers 4 types of channel relationships Corporate distribution systems exist when one firm owns all the organizations in a Contractual distribution systems exist when members are bound to cooperate through Administered distribution systems exist when producers manage all the marketing Supply chain all the linked activities various organization must perform to make goods channel of distribution contractual agreements functions at the retail level and services Supply chain management Process of managing the movement of raw materials parts work in progress and finished goods and related information through all the organizations in the supply chain
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