Marketing intermediary

1. Marketing Intermediary
Anastasiia Vialova
FRGTB
1 year MSc
9a group

2. Marketing Intermediary
 A business firm that operates between
producers and consumers or business
users, also called a middleman.
 May be a wholesaler, retailer, or
facilitating intermediary.

4. Figure 14.2: Major Types of
Wholesaling Intermediaries

5. Types of Wholesaling Intermediaries
 Sales branch: carries
inventory and processes
orders from available
stock
 Sales office: serves as
a regional office for for
manufacturer’s sales
personnel, but does not
carry an inventory
Manufacturer-
Owned Facilities

6. Types of Wholesaling Intermediaries
 Trade fair: Periodic show
in which manufacturers in
a particular industry
display their products and
services for wholesale and
retail buyers
 Merchandise mart: A
permanent facility in which
manufacturers display
products for visiting
wholesale buyers
Manufacturer-
Owned Facilities

7. Types of Wholesaling Intermediaries
 Merchant wholesaler: An
independently owned
intermediary that takes title to
the goods it sells
 Merchant wholesalers
include:
Rack Jobbers
Cash-and-Carry
Wholesalers
Truck Wholesalers
Drop Shippers
Mail Order
Wholesalers
Independent
Wholesaling
Intermediaries

8. Types of Wholesaling Intermediaries
 Agents and Brokers: A
second group of independent
intermediaries who may or
may not take possession of
the goods, but never take
title. They include:
Commission
merchants
Auction houses
Brokers
Selling agents
Manufacturer’s agents
Independent
Wholesaling
Intermediaries

9. Types of Wholesaling Intermediaries
 Manufacturers’ agent:
A wholesaling
intermediary who
represents multiple
manufacturers of
related, but
noncompeting products
 Work on a commission
basis and are assigned
to geographic territories
Independent
Wholesaling
Intermediaries

10. Fundamental Retail Challenges: Shelf
Space
 Stockkeeping unit (SKU): specific
product offering within a product line that
is used to identify items within the line
 Slotting allowances: fees paid by
manufacturers to secure shelf space
from retailers for their products
 Assortment Management: selecting the
right mix of products and product lines to
meet target market.

11. Types of Retailers
 Retailers can be categorized by:
Form of ownership
Shopping effort by customer
Services provided to customers
Product lines
Location of retail transactions

12.  Classifying by Product Lines: This
classification system groups stores by the
product lines they carry.
 Limited-line store: A retailer that offers a
large assortment within a single product
line, or within a few related product lines.
o Examples include IKEA home furnishings and
Ethan Allen furniture
 Category killers: retailers that combine
huge selection and low prices within a
single product category
○ Home Depot and Staples are examples

13. Department store: large store that offers a
variety of merchandise, such as men’s and
women’s clothing, appliances, linens, and
furniture
Mass merchandiser: store that stocks a wider
line of goods than a department store, usually
without the same depth of assortment within
each line
Supercenters: Large stores, though still smaller
than hypermarkets, that combine discount store
merchandise and groceries
 Off-price retailers: Stores that find exceptional
deals on well-known, brand-name clothing and
resells them at low prices

14. Classification of Retailers by Form of
Ownership
Chain stores: Groups of stores that operate
under central ownership and management and
sell essentially the same product lines
○ Chain stores have the advantages of purchasing
and advertising economies of scale
Independent Retailers: account for about 43%
of all retail sales
○ Advantage of friendly, personalized service
Cooperatives: Groups of independent retailers
who band together to increase buying and
advertising power

15. Ace Hardware
Cooperatives like Ace
help independent
retailers compete
with chains

16.  Classification by Shopping Effort:
Classification system based on the
reasons why consumers shop at particular
retail outlets
 Retail stores can be classified as:
Convenience
Shopping
Specialty

17.  Classifying by Services Provided: This
classification system consists of three
retailer types:
Self-service Store (e.g., Kmart)
Self-selection Store (e.g., Winn-Dixie or
Kroger grocery stores)
Full-service Retailers (e.g., Dillard’s or Macy’s)