marketing intermediaries
Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C)
channel of distribution
a whole set of marketing intermediaries, such as agents, brokers, wholesalers , and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers
agents/brokers
marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods
wholesaler
a marketing intermediary that sells to other organizations
retailer
an organization that sells to ultimate consumers
utility
the want satisfying ability, or value, that organizations add to goods or services
time utility
adding value to products by making them available when they're needed
place utility
adding value to products by having them where people want them
possession utility
doing whatever is necessary to transfer ownership from one party to another
information utility
adding value to products by opening two-way flows of information between marketing participants
service utility
adding value by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time
merchant wholesalers
independently owned firms that take title to the goods they handle
rackjobbers
wholesalers that furnish racks or shelves full of merchandise to retailers, display products, and sell on consignment
cash- and carry wholesalers
wholesalers that serve mostly smaller retailers with a limited assortment of products
drop shippers
wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly froma producer to a buyer
intensive distribution strategy
distribution that puts products into as many retail outlets as possible
selective distribution
distribution that sends products to only a preferred group of retailers in the area
exclusive distribution
distribution that sends products to only one retail outlet in a given geographic area
electronic retailing
selling goods and services to ultimate customers over the internet
telemarketing
the sale of goods and services by telephone
direct selling
selling to consumers in their homes or where they work
direct marketing
any activity that directly link manufacturers or intermediaries with the ultimate customer
corporate distributionsystem
a distribution system in which all of the organizations int eh channel of distribution are owned by one firm
contractual distribution system
A distribution system in which members are bound to cooperate through contractual agreements
An administered distribution system
is one where all retail level marketing function are managed by the producer. In a corporate distributions system, the firm manages All parts of the distribution channel.
supply chain (value chain)
the sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers
supply-chain management
the process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials wh
logistics
The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit
inbound logistics
The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers
materials handling
the movement of goods within a warehouse, from warehouses to the factory floor and from the factory floor to various workstations
outbound logistics
the area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me)
reverse logistics
the area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials.
freight forwarder
an organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination
intermodal shipping
the use of multiple modes of transportation to complete a single long distance movement of freight
Marketing intermediaries can be eliminated, but their activities can't
you can eliminate some wholesalers and retailers, but them consumers or someone else would have to perform the intermediaries tasks, including transportation and storing goods, finding suppliers, and establishing communication with suppliers.
A benefit of using selective distribution strategy
is that producers are insured of quality sales and services.
Department Store
Sells a wide variety of products (clothes, furniture, housewares) in separate departments.
Channels of distribution help ensure
communication flows and the flow of money and title to goods. They also help ensure that the right quantity and assortment of goods will be available when and where needed.
A wholesaler
is a marketing intermediary that sells products to other organizations.
In the distribution process, the largest percentage of the retail price goes to
Labor
The primary difference between retailers and wholesalers is that
retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers.
Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buy
broker.
Form utility
is usually provided by producers rather than marketers
Marketing intermediaries and time utility
to products by having them available when consumers want them.
Agent wholesalers are
independently owned and take title to the goods the handle.
Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as
drop shippers
Limited-function wholesalers that mainly serve samll businesses by selling them alimited assortment of goods are known as
cash-and-carry wholesalers
which of the following statements provides the most accurate distinction between an agent and a broker?
Agents: develop a long-term relationship with the people they represent, while brokers are usually thired on a temporary basis.
which of the following would be classified as limited-function wholesaler
Autunes stocks shelves in drugstores and supermarkets with audio CDS and cassettes of golden oldies from the 70 and 80s, which it sells on consignment.
Discount stores, supermarkets, and department stores are all common types of
retail stores
An outlet stores sells
general merchandise directly from manufacturer at a discount items may be discontinued or have certain product flaws.
Vending machines are most often used to sell
convenience goods
In the terminology of multilevel marketing, downliners
are salespeople who have been recruited by other salespeople known as upliners to market the product
Direct mail, telemarketing, and catalog sales are all common example of
direct marketing
Which of the following statements about kiosks and carts is the most accurate
Mall owners often want kiosks and carts to be located along their walkways because they create a marketplace atmosphere.
Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year. The company has no retail stores, but offers a toll free order number that operates 24 hours a day, 365 days a year. Sports Coasters sells using a techn
Telemarketing
A common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply chains is that they all
attempt to improve the effciency of distribution systems by linking the firms together in a formal relationship
When firms manage the return of goods from consumers either because they are defective or for recycling purposes, the are involved in
reverse logistics.
Pipelines are used primarily to transports
petroleum and petroleum products
The highest-cost transportation method is
air
Items such as snow skis, lawnmovers, and other highly seasonal items are often held in
storage warehouses during the months they are no in demand
Kidder Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Wayback Shipping, Inc. to find out what the shipment would cost. Wayback has shown kidder howit can arrange to use a combination of barges, trains, an
intermodal shipping
Freight forwarders
put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination
Comstock Coal Distributors does not mine coal itself. In fact, the firm does not even store or handle coal. Instead, Comstock solicits orders for low sulfur coal from other firms, them purchases the required amount from suppliers and directs them to ship
Drop shipper.