chapter 9 - march 28th Flashcards
- are companies that other companies work with in order to promote or sell their product.
- In other words, the product travels through a marketing channel to reach the final user, and all channel partners are responsible (in part) from the product’s success in the marketplace.
channel partners
- obtain large quantities of products from producers, store them, and break them down into cases and other smaller units that are more convenient for retailers to buy, a process called “breaking bulk.”
- get their name from the fact that they resell goods “whole” to other companies without transforming the goods.
wholesalers
- are wholesalers that take title to the goods and therefore have more financial risk than other wholesalers. They are also sometimes referred to as distributors, dealers, and jobbers
merchant wholesalers
- offer fewer services to their customers, but at lower prices. They might not offer delivery
services, extend their customers’ credit, or have sales forces that actively call sellers - Cash-and-carry wholesalers are an example
limited service wholesalers
- are another type of limited-service wholesaler.
- Although they take title to the goods, they don’t have legal possession.
- In this way they avoid, the financial risks of other wholesalers. They earn a commission by finding sellers and passing their orders along to producers, who then ship them directly to the sellers.
drop shippers
- sell specialty products, such as books, hosiery, and magazines that they display on their own racks in stores.
- retain the title to the goods while the merchandise is in the stores for sale
- Periodically, they take count of what’s been sold off their racks and then bill the stores for those items.
rack jobbers
- they don’t purchase or take title to the products they sell.
- Their role is limited to negotiating sales contracts for producers and are paid a commission for what they sell.
- Clothing, furniture, food and commodities (e.g. lumber and steel) are often sold by them, as assigned to geographical territories by the producers with whom they work.
- Because they have excellent industry contacts, they may be “go-to” resources for companies trying to buy and sell products.
Brokers and Agents
- these people buy products from wholesalers, agents, or distributors and then sell them to consumers.
- vary by the types of products they sell, their sizes, the prices they charge, the level of service they provide consumers, and the convenience or speed they offer.
retailers
the level of availability selected for a particular product by the marketer;
Distribution Intensity
designed to get products into as many outlets as possible
Intensive Distribution
- grants exclusive geographic territories to one or very few retail customers so no other retailers in the territory can sell a particular brand.
Exclusive Distribution
is a conflict that occurs between two different types of members in a channel, say, a manufacturer, an agent, a wholesaler, or a retailer.
vertical conflict
is conflict that occurs between companies of the same type, say, two wholesalers that sell the products of the same manufacturer.
horizontal conflict
is the practice of selling a large quantity of goods in another country at a price too low to be economically justifiable.
dumping
relies on outbound communication, pushing messages to the audience.
push marketing