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29 Cards in this Set
- Front
- Back
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marketing channels
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compromised of org's and individuals thats makes products or service available for customer use - make possible the flow of goods from a producer through intermediaries to a buyer
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value created by marketing channels (2)
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1)exchange efecencies b/t people
2)reduce number of contacts required b/t people |
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how do pioneer and JVC get to contacts (rock fan, pop fan)
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put retailer in their to cut down on contacts
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3 functions performed by channel intermediaries
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1.transactional functions
2.logistical functions 3.facilitating functions |
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transactional functions
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-buy merchandise and take risk that it will sell
-sell merchandise to customer |
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logistical functions
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-assort(gather) products which makes assorment to choose from
-store products - maintain -sort products - buy large quanities and break into small quanties for customers -transport products |
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facilitating functions
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-finance products
-grade products(jugement qualities) -marketing infor and research to customers |
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merchant wholesalers
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-independently owned
-take title(own) products they sell -profits from buy low and selling high |
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agents and brokers
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-do not take title(dont own) products they sell
-perform fewer channel functions -profits come from commission or fees for their distribution services |
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direct channels
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direct realtionship b/t producer and consumer(producer>consumer)
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indirect channels (3)
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1. when theres something b/t producer and consumer such as retailer.(producer>retailer>consumer)
2.sometimes 2 b/t (producer>wholesaler>retailer>consumer) 3.agent too(producer>agent>wholesaler>retailer>consumer) |
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who owns product...agent or merchant?
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merchant owns product, agent does not
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org. product channels (4)direct and indirect
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1.producer>cusotmer(direct)
2.producer>industrial distributor>customer 3.producer>agent>cust 4.producer>agent>ID>cust |
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forward integration
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manufac and retailer are the same company b/c manufac buys a retailer...moving toward the customer
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backward integration
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up the channel away from the customer(retailer buying manufac)
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contractual system
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-org's are under legal contract adn not under one(same) ownership
-contracts trying to enforce who they should behave |
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3 types of contractual systems
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1. wholesaler sponsored-wholesale develops relationship with independent retailer
2.retailer sponsored-independent retailers form org. that operates wholesaler 3.franchising - contractual arragment for distrubting products |
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administered system
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achieve coordination a tsuccessive stages of production and distribution by the size and influence of one channel member rather than though ownership. proctocr and gable gets promtion in supermarkets.
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exculusive dealing
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supplier requires channel members to sell only its products or restricts distributors form selling directly competitive products
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tying arragements
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supplier requires a distributor purchasing some proucts to buy others from the supplier
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refusal to deal
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supplier has legal right to choose intermediaries--> but can refuse to deal with intermediary
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resale restrictions
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suppliers attempt to stipulate to whom distibutors may resell the suppliers producsts and in what specific geograpfic areas or territories they may be sold
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industrial distributor
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variety of functions such as selling, stocking, and delivering a full prouct assortment and financing- similar to the wholesalers in consumer channels
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full service merchant wholesalers
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1.general merchandise - carry broad assortment of merdchandise and perform all fucntions
2.specialty merchandise-offer narrow range of products but exstensive assortment with in product lines |
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limited service wholesalers
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1.rack jobbers-funish racks or shelves that display merchandise in retial stores
2.cash and carry-take title to merch and furnish their own transportation for merchandise 3.drop shippers-own merch they sell but dont stock or deliver 4.truck jobbers-small wholesalers w/ warehouse from which they stock trucks to retailers |
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manufac agent
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work for severl producers and carry noncompetitve merchandise in territory
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selling agents
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represent single producer and resonsible for entire marketing functions
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vertical marketing systems
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professionaly managed and centrally coordinated marketing channels achieve marketing impact
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coportate system
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successive stages of production and distribution. forward and back integration
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