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Chapter 13 Managing Marketing Channels and Supply Chains * Nature and Importance of Marketing Channels: Reaching potential buyers, either directly or indirectly, is a necessary first step for successful marketing. * What is a Marketing channel of Distribution?: Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users. Marketing channels make possible the flow of goods from a producer, through intermediaries, to a buyer. * Value created by Intermediaries: * Middleman: Any intermediary between manufacturer and end-user markets. * Agent or broker: any intermediary with legal authority to act on behalf of the manufacturer.
Wholesaler: an intermediary who sells to other intermediaries, usually to retailers; term us
* ually applies to consumer markets. * Retailer: an intermediary who sells to consumers * Distributor: an imprecise term, usually used to describe intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on; a more common term in business markets but may also be used to refer to wholesalers * Dealer: a more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth * Functions performed by intermediaries: Intermediaries make possible the flow of products from producers to ultimate consumers by performing three basic functions
Types of Functions: * Transaction Function: * Buying: purchasing products for resale or as an agent for supply of a product * Selling: Contracting potential customers, promoting products, and seeking orders * Risk taking: Assuming business risks in the ownership of inventory that can become obsolete or deteriorate * Logistical function: * Assorting: Creating products assortments from several sources to serve customers * Storing: assembling and
Wholesaler: an intermediary who sells to other intermediaries, usually to retailers; term us
* ually applies to consumer markets. * Retailer: an intermediary who sells to consumers * Distributor: an imprecise term, usually used to describe intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on; a more common term in business markets but may also be used to refer to wholesalers * Dealer: a more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth * Functions performed by intermediaries: Intermediaries make possible the flow of products from producers to ultimate consumers by performing three basic functions
Types of Functions: * Transaction Function: * Buying: purchasing products for resale or as an agent for supply of a product * Selling: Contracting potential customers, promoting products, and seeking orders * Risk taking: Assuming business risks in the ownership of inventory that can become obsolete or deteriorate * Logistical function: * Assorting: Creating products assortments from several sources to serve customers * Storing: assembling and