Marketing Channels/Retailing

Dealer

A more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth.

Distributor

An imprecise term, usually used to describe intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on; a more common term in business markets but may also be used to refer to wholesalers

Retailer

An intermediary who sells to consumers. These people do a lot of the advertisements for you.

Wholesaler

An intermediary who sells to other intermediaries, usually retailers; term usually applies to consumer markets.

Middleman

Any intermediary between manufacturer and end-user markets

Agent or broker

Any intermediary with legal authority to act on behalf of the manufacturer

Logistical functions-ASST

Assortments-creating product assortments from several sources to serve customers Storing-assembling and protecting products at a convenient location to offer better customer service Sorting-purchasing in large quantities and breaking into smaller amounts desired by customers Transporting-physically moving a product to customers INTERMEDIARIES

Transactional functions-BSR

Buying-purchasing products for resale or as agent for supply of a product Selling-contacting potential customers, promoting products, and seeking orders Risk taking-assuming business risks in the ownership of inventory that can become obsolete or deterioate MANUFACTURERS

Direct selling

Dell computer online channels, airlines

Facilitating functions-FMQ

Financing-extending credit to customers Marketing research-providing information to customer and suppliers including competitive conditions and trends Quality control-inspecting, testing, or judging products and assigning them quality grades

Satisfying buyer requirements-vicp

Information-you research when you are purchasing electronics and you have to have that information. Convenience-it has to be convenient as with the example in class where she just did not pick a car brand just because how far away the dealership was. Have to take into account the driving time, waiting time Variety-you want variety as with Petco and their variety of pet supplies. You do not want to sell just one thing Pre- or Post-Sale service-do they take care of you after the sales? what service do they offer? Geek Squad and what they offer.

Target market coverage-sie

Intensive distribution-you want to reach everyone such as with Coco-Cola, fast food, candy. You put the items in as many stores as possible. Exclusive distribution-you only want select people to have your brand because it is high quality and customer loyalty such as Gucci. Eliminates head-to-head competition and provides a point of difference Selective distribution-in between the two extremes. You are very clear on who can sell your product such as with Dell and only Wal Mart can sell their computers.

Multi channel marketing

Invoices the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online. People who facilitate this is Apple because direct and indirect channels. Such as selling in the Online is Direct and Selling in Best Buy is indirect.

Profitability

Margin earned-revenue-cost Channel cost-distribution cost, advertisement, selling expense, and so on

Indirect channel

Toyota: You use this in industries such as cars because it would be too much of a hassle to try and sell it through other intermediaries. Only use retailers Mars: you would want retailers and wholesalers because you are trying to get it to people Mansar products: these are products that are generally sold internationally, so in this case you would include a agent, wholesaler, retailer before getting it to the consumer. You are not selling it directly to the consumers.

Vertical conflict

a channel conflict that occurs between different levels in a marketing channel, most typically between the manufacturer and wholesaler or between the manufacturer and retailer

Horizontal conflict

a type of channel conflict in which members at the same level of a marketing channel, for example, two competing retailers or two competing manufacturers, are in disagreement or discord, such as when they are in a price war.