CHAPTER 15

TYPES OF UTILITIES

1. Form 2. Time 3. Place 4. Possession 5. Information 6. Service

TYPES OF WHOLESALE INTERMEDIATES

1. Full-service wholesalers perform all distribution functions. 2. Limited-function wholesalers perform only selected distribution functions.

FASTEST GROWING RETAIL CATEGORIES

1. Video games 2. Sports and fitness 3. Home, garden, and furniture 4. Event tickets 5. Consumer electronics

CHANNEL DISTRIBUTION (MKT INTERMEDIARIES)

A group of marketing intermediaries that joining together to transport and store goods from producers to consumers.

KEY CHANNELS OF DISTRIBUTION

Channel 1: Producer - Consumer Channel 2: Producer - Retailer - Consumer Channel 3: Producer - Wholesaler - Retailer - Consumer

TYPES OF RETAIL STORE

Department Store - Macy's, JC Penney, Nordstrom's Discount Store - Wal-Mart, Target Supermarket - Safeway, Kroger, Albertson's Warehouse Club - Costco, Sam's Club Convenience Store - 7-Eleven Category Killer - Toys-R-Us, Ikea, Home Depot Off-Price Store - Nordstrom Rack, TJ Maxx, Marshalls Specialty Store - Victoria's Secret Outlet Store - Nike, Woodbury Commons, etc

MARKETING INTERMEDIARIES

Organizations that assist in moving goods and services from businesses to businesses (B2B) and from businesses to consumers (B2C). * They are called intermediaries because they're in the middle of a series of firms that distribute goods.

THE SUPPLY CHAIN

Suppliers plants - Manufactures (Producer) - Wholesalers - Retailers - Consumers

TYPES OF MKT INTERMEDIATES

- Agents and Brokers: Intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods they offer. - Wholesaler: An intermediary that sells products to other organizations such as retailers, manufacturers, and hospitals. - Retailer: An organization that sells products to ultimate customers.

ROLES OF AGENTS AND BROKERS

- Agents generally maintain long-term relationships with the clients they represent. * Manufacturer's agents represent several manufacturers in a specific territory. * Sales agents represent a single client in a larger territory. - Brokers usually represent clients on a temporary basis.

- SUPPLY CHAIN - SUPPLY CHAIN MANAGEMENT

- All the linked activities various organizations must perform to move goods and services from the source of raw materials to ultimate consumers. - The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations in the supply chain.

FORMS OF NON-STORE RETAILING

- Electronic Retailing: Selling goods and services to ultimate consumers over the Internet. - Telemarketing: The sale of goods and services via the telephone. - Vending machines, kiosks, and carts dispense convenience goods when consumers deposit sufficient funds. - Direct Selling: Selling goods and services to customers in their homes or workplaces. * Multilevel marketing uses salespeople who work as independent contractors. - Direct Marketing: Any activity that directly links manufacturers or intermediaries with ultimate customers.

TYPES OF WAREHOUSES

- Storage Warehouses hold products for a relatively long period of time. - Distribution Centers are used to gather and redistribute products such as: * Beer and Soft Drinks and * Package Deliveries.

MERCHANT WHOLESALES

Independently owned firms that take title to the goods they handle. * About 80% of wholesalers are merchant wholesalers.

UTILITY

The want-satisfying ability, or value, that organizations add to goods and services by making them more useful or accessible to consumers.

RETAILING IN THE US

There are approximately 2.3 million retailers in the U.S., not including websites. * Retailers in the U.S. employ over 11 million people and operate under many different structures.

MOST POPULAR MODES OF FREIGHT TRANSPORTATION

Trucks - 69% Trains - 15% Pipelines - 10% Ships - 6% Air - under 1%