Why are marketing intermediaries used?
* The use of marketing intermediaries results from their greater efficiency in making goods available to target markets. Through their contacts, experiences, specialization, and scale of operation, intermediaries usually offer the firm more than it can...
, that help to identify the consumer. If closer examination of a distribution channel reveals that the use of an intermediary is necessary, it is better to use an intermediary than to inhibit marketing. The old principles of specialization and division of labor still matter in the marketplace. If the marketer lacks adequate resources, it is better to use a suitable intermediary and leave specialized tasks to specialists. ...
Most businesses use third parties or intermediaries to bring their products to market. They try to forge a "distribution channel" which can be defined as
"all the organisations through which a product must pass between its point of production and consumption"
Why does a business...
effective and efficient method of distribution.
* When markets are widely dispersed, specialized intermediaries are necessary. They can capitalize on the efficiencies linked to the movement of large quantities.
* Sold on a direct basis to move the product through the channel...
single intermediary—a merchant wholesaler referred to as an industrial distributor rather than a retailer—buys products from a manufacturer and sells them to business customers. Direct channels are more common to business-to-business markets because B2B marketing often means selling high-dollar...
marketing intermediaries and the functions they perform in the distribution process
3. To know how to select the proper channels of distribution depending on the circumstances of the market.
4. To discuss in-depth details on wholesaling, store and nonstore retailing
The Need for Marketing...
often called the marketing channel; the latter is known as logistics.
What work is performed by marketing channels ?
Why would a producer delegate some of the selling job to intermediaries? Delegation means relinquishing control over how and to whom the products are sold, but producers do gain...
of an organization. Effective management of distribution channel requires making and implementing decision in these areas.
I. THE IMPORTANCE OF CHANNELS OF DISTRIBUTION
A. There are hundreds of thousands of marketing intermediaries whose job it is to help move goods from the raw-material state to...
. Physical distribution of product is possible through channels of distribution which are many and varied in character.
Physical distribution (place mix) includes the following variables:
a. Types of intermediaries available for distribution,
b. Distribution marketing channels available for...
1. What is a marketing channel?
2. Why are channel intermediaries important? What functions do they perform?
3. Distinguish between retailers, wholesalers, and agents?
4. What is the difference between direct and indirect channels?
5. What is intensive, selective, and exclusive...
segment’s compatibility with your company’s mission. During this step you must remind yourself of your company’s market share possibility in each segment. By defining the sales potential, you can justify the need to secure the necessary resources to implement your marketing strategy.
is one of the important departments. The marketing office is located at Stone house in Aluva. The decisions taken by marketing manager. The marketing functions are necessary to take the goods from the place of production to the place of depose and from depose to the wholesalers.
to the rice/flour millers as it gives them higher profit. Commission agents are necessary evil in agri-marketing. But, it is expected that as a result of better extension activities and enforcement of APMC act the role of commission agent is expected to decrease in future.
spice man to assess and analyze the difficulties and provide a marketing plan which includes the recommendations on the channels of distribution that should be used, the market offerings proposed for intermediaries/ channel members and recommendations of the specific strategies that Canterbury spice...
10. Critically evaluate Charlie's discussion using your marketing knowledge: Do you believe Kinetic Koffee will be successful? Why or why not?
Ch12. Marketing Channels and Supply Chain Management
1. What are some transportation challenges faced by Humboldt County companies and...
Other than this reasons, there are also two major reasons or factors why these marketing channels exist.
1. Demand Factors
* Facilitation of Search - Intermediary Channels arise because buyers and sellers cannot find each other
* Adjustment of Assortment Discrepancy...
, therefore, these intermediaries need to be monitored, reviewed, ensured that they operate within the best practices and changed when necessary
Performance can increase within the distribution channel if there is presence of trust. Distribution strategies channeled along ‘trust’ will increase...
producers lack of financial resources necessary for direct market, direct marketing is not feasible for many offering, using channels free money for investment in main business or maybe intermediaries are more efficient.
In addition, the products been moved by the marketing channel members...
pressure of managing your own distribution system. Additionally, you may also reduce the storage space necessary for
inventory. One of the most important reasons for selling
through an intermediary is access to customers. In many
situations, wholesalers and retailers have customer...
advantages for the intermediaries?
PRODUCT PROFITABILITY: BREAK EVEN POINT VALUE PROPOSITION CHANNEL AND DISTRIBUTION CONCLUSIONS
diffusion of showers/high diffusion of bathtube Old equipments with temperature and pressure problems Low product involvement Low brand awareness...
, Anderson, Louis, & El-An, 2006, p.76). A channel with so many intermediaries, for instance, culminates in increased prices of consumer goods. This also leads to reduced income for the manufacturers. This explains the reason why most international distributors focus on channels which are simple and less...
What is a marketing channel?
o Individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.
Value created by Intermediaries
o Without a retail intermediary (such as Sears) Kodak, Sony...
are in direct contact with customers, capture their needs easily than through the intermediary distribution.
Besides the above advantages, the direct distribution channel is limited low level of expertise, organization and management of more complex channels, the company's capital flows slow...
industry it is the removal of the intermediaries such as travel agents. This means that instead of going through the traditional distribution channels, the customers would deal directly with the hotels, air lines, car rental companies and transfer companies. (wikipedia) Disintermediation would only...
through its own stores. The remaining channels in Figure 12.2a are indirect marketing channels. Channel 2 contains one intermediary level. In consumer markets, this level is typically a retailer. For example, the makers of televisions, cameras, tires, furniture, major appliances, and many other...
can charge whatever the market will bear. In Switzerland, for example, there is little competition for imported Chevy S pickup trucks, so the price per vehicle is nearly double the typical price paid in the U.S.
4. Why do price differences in world markets often lead to gray marketing? Price...
depending on cost of raw materials, labour etc.
-inconsistent supply of raw materials can affect price.
c)internal and external considerations affecting pricing
Direct channel-no intermediary or channel member
Indirect channel-intermediary or channel member involved...
Distribution Channels (Use PowerPoint 11.8.)
Intermediaries are individuals or firms that help distribute products and add value as they make the right products available when and where consumers want them. Wholesalers sell products to other businesses, which resell the products to final...
Distribution Channels and Logistics
1.1 The nature of distribution channels
Why are marketing
Why use intermediaries? Means giving up some control over how and to whom
products are sold
– They are used because they have greater efficiency in making goods...
perform a variety of functions. These intermediaries constitute a marketing channel (also called a trade channel or distribution channel). Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.2 why would a...