chapter 15 Flashcards
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what are marketing intermediaries/ middlemen
Organizations that assist in moving goods and services from producers to businesses (B2B) & from Businesses to consumers (B2C)
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what is a channel of distribution
a set of marketing intermediaries, such as agents, brokers, wholesalers & retailers that join together to transport & store goods
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why do marketing intermediaries ensure that the right quantity & assortment of goods will be available when & where needed
- to fulfill their contracts with the businesses
- to ensure that the products are available all the time to reduce chances of consumers switching to other products
- they ensure that they have safety stock-so if there is any fluctuation in demand or prices
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types of marketing intermediaries
- agents/brokers
- wholesaler
- retailer
what marketing tasks do intermediaries perform?
Transporting
Storing
Selling
Advertising
Relationship building
Faster and more cheaply than most manufacturers could
why does marketing need intermediaries
- wide market reach
- specialization
- efficiency in distribution
- market expertise
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who are agents, brokers
marketing intermediaries who bring buyers & sellers together and assist in negotiating an exchange
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who is a wholesaler?
is a marketing intermediary that sells to other organizations, such as retailers, manufacturers, and hospitals
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what is a retailer?
sell products directly to consumers through physical stores, online platforms, or a combination of both
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example of distribution channels
- manufacturer->consumer
- manufacturer->retailer->consumer
- manufacturer->wholesaler->retailer->consumer
- manufacturer-> agent->wholesaler->retailer
->consumer
an economic perspective on intermediaries
add Costs and should be eliminated
marketing perspective on intermediaries
add Value that greatly exceeds the costs
facts about marketing intermediaries
- Marketing intermediaries can be eliminated, but their activities cannot.
- Intermediaries perform marketing functions faster and cheaper than other organizations can.
- Marketing intermediaries add costs to products, but these costs are generally offset by the values they provide.
what is the retail distribution strategy?
the approaches used by manufacturers or producers to distribute their products through various retail channels.
Types of Retail Distribution Strategy
- intensive distribution
- selective distribution
- exclusive distribution
what is an intensive distribution?
marketing strategy that involves making a company’s products available to customers in as many places as possible
what is selective distribution?
uses only a preferred group of the available retailers in an area
what is an exclusive distribution?
the use of only one retail outlet in a given geographic area
what is direct marketing?
any activity that directly links manufacturers or intermediaries with the consumer
what does direct marketing include
direct mail
catalog sales
telemarketing
online marketing
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examples of non-store retailing
online retailing
telemarketing
vending machines
Kiosks Carts
direct selling
multilevel marketing
direct marketing
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what is online retailing
selling goods and services to consumers online over the internet
what is social commerce?
selling products directly through social media platforms
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what is telemarketing
The sale of goods and services by telephone
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benefit of vending machines
They’re found in airports, office buildings, schools, service stations, and other areas where people want convenience items.
what are the different distribution systems?
Corporate systems
Contractual systems
Administered systems.
what is a corporate distribution system?
one firm owns all the organizations in the channel of distribution
example of the corporate distribution system
apple
what is a contractual distribution system?
members are bound to cooperate through contractual agreements
what are the 3 forms of a contractual distribution system?
- franchise system
- wholesaler-sponsored chain
- retail cooperatives
what is an administrated distribution system?
Producers manage all of the marketing functions at the retail level.
