Marketing Management

Marketing Management
Chapter 10- Distribution Strategy

Channel of distribution decisions involve numerous interrelated variables that must be integrated into the total marketing mix.
Channel of Distribution- a channel of distribution is the combination of institutions through which a seller markets products to the user or ultimate consumer.
Major Types of Marketing Intermediaries
Middleman - an independent business concern that operates as a link between producers and ultimate consumers or organizational buyers.
Merchant Middleman – a middleman who buys the goods outright and takes title to them
Agent – a business unit that negotiates purchases, sales, or both but does not take title to the goods in which it deals
Wholesaler – a merchant establishment operated by a concern that is primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods (usually in smaller quantities) to retailers or to organizational buyers
Retailer – a merchant middleman who is engaged primarily in selling to ultimate consumers
Broker – a middleman who serves as a go-between for the buyer or seller.   The broker assumes no title risks, does not usually have physical custody of products, and is not looked upon as a permanent representative of either the buyer or the seller
Manufacturers’ agent – an agent who generally operates on an extended contractual basis, often sells within an exclusive territory, handles noncompeting but related lines of goods, and possesses limited authority with regard to prices and terms of sale
Distributor – a wholesale middleman especially in lines where selective or exclusive distribution is common at the wholesaler level in which the manufacturer expects strong promotional support; often a synonym for wholesaler
Jobber – a middleman who buys from manufacturers and sells to retailers; a wholesaler
Facilitating Agent – a business firm that assists in the performance of... [continues]

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