The document discusses marketing intermediaries, including wholesalers and retailers, highlighting their roles in the distribution of goods and services between producers and consumers. It categorizes various types of wholesalers and retailers based on ownership, shopping effort, and services provided, such as independent retailers, chain stores, and cooperatives. Additionally, it addresses fundamental challenges in retail, including shelf space management and assortment strategy.

1. 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.

2. Activities involved in selling goods and services to ultimate consumers Retailing © PhotoDisc

3. Activities involved in selling goods and services to ultimate consumers Wholesaler Retailing An intermediary that handles the redistributes of goods to retailers, other distributors, and sometimes end consumers © PhotoDisc

4. Activities involved in selling goods and services to ultimate consumers Wholesaler Retailing An intermediary that takes title to the goods it handles and redistributes them to retailers, other distributors, and sometimes end consumers Direct Marketing A distribution channel consisting of direct communication to a consumer or business recipient

5. Figure 14.2: Major Types of Wholesaling Intermediaries

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

7. 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 Americas Mart

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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 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

14. 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

15. 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

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

17. 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

18. 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)