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Marketing Intermediary

A business firm that operates between producers and consumers or business users, also called a middleman.

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Marketing Intermediary

  1. 1. Marketing Intermediary <ul><li>A business firm that operates between producers and consumers or business users, also called a middleman. </li></ul><ul><li>May be a wholesaler, retailer, or facilitating intermediary. </li></ul>
  2. 2. <ul><li>Activities involved in selling goods and services to ultimate consumers </li></ul>Retailing © PhotoDisc
  3. 3. <ul><li>Activities involved in selling goods and services to ultimate consumers </li></ul>Wholesaler Retailing <ul><li>An intermediary that handles the redistributes of goods to retailers, other distributors, and sometimes end consumers </li></ul>© PhotoDisc
  4. 4. <ul><li>Activities involved in selling goods and services to ultimate consumers </li></ul>Wholesaler Retailing <ul><li>An intermediary that takes title to the goods it handles and redistributes them to retailers, other distributors, and sometimes end consumers </li></ul>Direct Marketing <ul><li>A distribution channel consisting of direct communication to a consumer or business recipient </li></ul>
  5. 5. Figure 14.2: Major Types of Wholesaling Intermediaries
  6. 6. Types of Wholesaling Intermediaries <ul><li>Sales branch: carries inventory and processes orders from available stock </li></ul><ul><li>S ales office: serves as a regional office for for manufacturer’s sales personnel, but does not carry an inventory </li></ul>Manufacturer- Owned Facilities Square D
  7. 7. Types of Wholesaling Intermediaries <ul><li>Trade fair: Periodic show in which manufacturers in a particular industry display their products and services for wholesale and retail buyers </li></ul><ul><li>Merchandise mart: A permanent facility in which manufacturers display products for visiting wholesale buyers </li></ul>Manufacturer- Owned Facilities Americas Mart
  8. 8. Types of Wholesaling Intermediaries <ul><li>Merchant wholesaler: An independently owned intermediary that takes title to the goods it sells </li></ul><ul><li>Merchant wholesalers include: </li></ul><ul><ul><li>Rack Jobbers </li></ul></ul><ul><ul><li>Cash-and-Carry Wholesalers </li></ul></ul><ul><ul><li>Truck Wholesalers </li></ul></ul><ul><ul><li>Drop Shippers </li></ul></ul><ul><ul><li>Mail Order Wholesalers </li></ul></ul>Independent Wholesaling Intermediaries
  9. 9. Types of Wholesaling Intermediaries <ul><li>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: </li></ul><ul><ul><li>Commission merchants </li></ul></ul><ul><ul><li>Auction houses </li></ul></ul><ul><ul><li>Brokers </li></ul></ul><ul><ul><li>Selling agents </li></ul></ul><ul><ul><li>Manufacturer’s agents </li></ul></ul>Independent Wholesaling Intermediaries
  10. 10. Types of Wholesaling Intermediaries <ul><li>Manufacturers’ agent: A wholesaling intermediary who represents multiple manufacturers of related, but noncompeting products </li></ul><ul><li>Work on a commission basis and are assigned to geographic territories </li></ul>Independent Wholesaling Intermediaries
  11. 11. Fundamental Retail Challenges: Shelf Space <ul><li>Stockkeeping unit (SKU): specific product offering within a product line that is used to identify items within the line </li></ul><ul><li>Slotting allowances : fees paid by manufacturers to secure shelf space from retailers for their products </li></ul><ul><li>Assortment Management: selecting the right mix of products and product lines to meet target market. </li></ul>
  12. 12. Types of Retailers <ul><li>Retailers can be categorized by: </li></ul><ul><ul><li>Form of ownership </li></ul></ul><ul><ul><li>Shopping effort by customer </li></ul></ul><ul><ul><li>Services provided to customers </li></ul></ul><ul><ul><li>Product lines </li></ul></ul><ul><ul><li>Location of retail transactions </li></ul></ul>
  13. 13. <ul><li>Classifying by Product Lines : This classification system groups stores by the product lines they carry. </li></ul><ul><ul><li>Limited-line store : A retailer that offers a large assortment within a single product line, or within a few related product lines </li></ul></ul><ul><ul><ul><li>Examples include IKEA home furnishings and Ethan Allen furniture </li></ul></ul></ul><ul><ul><li>Category killers : retailers that combine huge selection and low prices within a single product category </li></ul></ul><ul><ul><ul><li>Home Depot and Staples are examples </li></ul></ul></ul>
  14. 14. <ul><ul><li>Department store : large store that offers a variety of merchandise, such as men’s and women’s clothing, appliances, linens, and furniture </li></ul></ul><ul><ul><li>Mass merchandiser : store that stocks a wider line of goods than a department store, usually without the same depth of assortment within each line </li></ul></ul><ul><ul><li>Supercenters : Large stores, though still smaller than hypermarkets, that combine discount store merchandise and groceries </li></ul></ul><ul><ul><li>Off-price retailers : Stores that find exceptional deals on well-known, brand-name clothing and resells them at low prices </li></ul></ul>
  15. 15. <ul><li>Classification of Retailers by Form of Ownership </li></ul><ul><ul><li>Chain stores : Groups of stores that operate under central ownership and management and sell essentially the same product lines </li></ul></ul><ul><ul><ul><li>Chain stores have the advantages of purchasing and advertising economies of scale </li></ul></ul></ul><ul><ul><li>Independent Retailers : account for about 43% of all retail sales </li></ul></ul><ul><ul><ul><li>Advantage of friendly, personalized service </li></ul></ul></ul><ul><ul><li>Cooperatives: Groups of independent retailers who band together to increase buying and advertising power </li></ul></ul>
  16. 16. <ul><li>Ace Hardware </li></ul><ul><ul><li>Cooperatives like Ace help independent retailers compete with chains </li></ul></ul>
  17. 17. <ul><li>Classification by Shopping Effort : Classification system based on the reasons why consumers shop at particular retail outlets </li></ul><ul><li>Retail stores can be classified as: </li></ul><ul><ul><li>Convenience </li></ul></ul><ul><ul><li>Shopping </li></ul></ul><ul><ul><li>Specialty </li></ul></ul>
  18. 18. <ul><li>Classifying by Services Provided : This classification system consists of three retailer types: </li></ul><ul><ul><li>Self-service Store (e.g., Kmart) </li></ul></ul><ul><ul><li>Self-selection Store (e.g., Winn-Dixie or Kroger grocery stores) </li></ul></ul><ul><ul><li>Full-service Retailers (e.g., Dillard’s or Macy’s) </li></ul></ul>

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