Marketing Intermediaries (Slides)

Marketing Intermediary
firm that renders services directly related to the purchase and sale of a product as it flows from the producer
2 Marketing intermediaries
Wholesalers
Retailers
Wholesalers
buy from producers and distribute goods to retailers, other distributors, or B2B customers
Retailers
Sell goods and services to consumers for their personal use
Value added activities performed by wholesalers
1. facilitating utility
2.providing various services (storing, transporting, financing)
3. lowering costs by limiting contacts
Retailer classifications
1. Amount of service provided (self service/full service/limited service)
2. Organizational approach
3. Product line
Retailer cooperative
group of independent retailers who set up a centeral buying organization and conduct joint promotion efforts (ace hardware)
Product lines (3)
Specialty store-narrow product line with deep assortment within that line (foot locker)
Supermarket-large low cost low margin high volume self-service store that carries a wide variety of grocery and household items (publix)
Category killer-large retail store that is dominant in its product category and generally offers an extensive selection of merchandise at prices so low that smaller stores can not compete (petsmart)
Retail convergence
a wide variety of retailers sell the same product at similar prices to the same customer