Channels for Consumer Products Direct Retailer Wholesaler Agent/Broker Channel Channel Channel Channel Producer Producer Producer Producer Agents or Brokers Wholesalers Wholesalers Retailers Retailers Retailers Consumers Consumers Consumers Consumers3
Channels for Business Products Direct Direct Industrial Agent/Broker Agent/Broker Channel Channel Distributor Channel Industrial Channel Producer Producer Producer Producer Producer Agents or Agents or Brokers Brokers Industrial Industrial Distributor Distributor Industrial Govt. Industrial Industrial Industrial User Buyer User User User3
Role of Intermediaries• Physical distribution – Transportation and storage (temporal and spatial discrepancies) – Breaking bulk (discrepancy of quantity) – Accumulating bulk (discrepancy of quantity) – Creating assortment (discrepancy of assortment) – Specialization – Transaction reduction (transactional functions) • Contacting, negotiating, transporting, financing, etc.
Role of Intermediaries• Communication – Marketing research – Selling role for manufacturer/service provider • IMC • Personal selling • Point-of-Sales (POS) • After-sale service – Buying role for customers • Likes/dislikes • Returns