marketing ch 15 channels/agents

marketing channel
individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
seller>store them>resell to buyers
sellers but do not take title to products
make selling/services more effecient
minimize # of sales contacts
transactional function
involves buying selling and risk taking because they stock merchandise in anticipation of sales
logistical function
involves gathering, sorting, and dispersing of products to buyers
facilitating function
assists producers in making the transactions of goods and services more attractive for buyers
value for customers
time utility- prod/service when you want it
place utility- available where consumers want it
form utility- enhancing an offering to make it more appealing
possession utility- helping buyers take possession of a prod/sevice
direct channel
producer and ultimate consumers deal directly together, no intermediaries
indirect channel
intermediaries are inserted between producer and consumers, perform numerous channel functions
producer>retailer> consumer
if retailer can buy large quantities from a producer
if cost of inventory= too expensive to use wholesaler
channel b
producer> retailer> consumer (most common)
-cost of inventory = too expensive to use wholesaler
no wholesaler
-if many product variations exist, impossible to stock all models
-cost of maintaining an inventory = too high
-lg retailers buy in sufficient quantities to make it cost effective for producer to deal with only a retail intermediary
channel c
-for low cost, low unit value items that consumers frequently purchase
channel d
-use with many small manufacturers/small retailers
-agent is used to help coordinate a large supply of product
business channels
rely on 1 intermediary or none because:
-fewer in number, more concentrated geo, buy in larger quantities
direct channel
channel a; producer>industrial user
use when: buyers = large/welldefined
-sales effort requires extensive negotiations
-products=high unit value
-require hands on expertise installation/use
industrial distributor
performs selling, stocking, delivering a full product assortment and financing
electronic marketing channels
employ the internet to make products and services available for consumption or use by cons/bus buyers
-intermediaries: trans/facilitating functions
multichannel marketing
blending of diff comm and delivery channels that mutually REINFORCE in attracting/retaining/building relationships with consumers who shop traditionally and online-INTEGRATES electronic/delivery channels
LEVERAGES value-adding capabilities of diff channels
retail stores
leverage their physical presence by allowing customers to puck up their online orders in store/exchange
shopping tools for online purchasing as they do in store
help cons do homework before visiting store
dual distribution
arrangement whereby a firm reaches diff buyers by employing 2+ diff types of channels for same product
-pair with multibrand strategy, min cannibalization
strategic channel alliances
practice where one firms marketing channel is used to sell another firms product
-used in global marketing
general merchandise
full line service wholesaler =WIDE
-broad assortment of merchandise
-all functions, drug, clothing
specialty merchandise
limited line wholesaler=DEEP
-narrow range of products
-extensive assortment within product lines carried
health food
manufacturers agents
dont not take title to merchandise, profit=commission
-work for several producers
-noncomp, complementary merchandise in exclusive territory
-responsible for transactional channel func: selling
selling agents
dont not take title to merchandise, profit=commission
– rep a single producer
-design marketing mix: prod strategy/prom plans/ price/dist policies for producer
-responsible for transactional channel func: selling
ind firms/inds whose principal function = bring buyers and sellers together to make sales
-no continuous relationship with buyer/seller
-negotiate a contract, then move on
manufacturers branches and offices
used when no intermediaries perform wholesaling functions, few custs are geographically concentrated, large orders that require attention
manufacturers branch office
-carries a producers inventory
-functions of a full service wholesaler
manufactures sales office
-does NOT carry inventory
-only sales function
-alt to agents/brokers