chap 15

tracking goods

Storage warehouses hold products for a relatively long period of time. Distribution warehouses are used to gather and redistribute products such as package deliveries.

Contractual distribution system

Contractual distribution system — A distribution system in which members are bound to cooperate through contractual agreements. Forms of contractual systems: - Franchise systems: McDonald's, Baskin-Robbins - Wholesale-sponsored chains: IGA, Ace Hardware (each is independently owned and managed but agrees to use the same name, participate in chain promotions - Retail cooperatives: Associated Grocers. Like a wholesaler except it is initiated by the retailers.

The Four Systems of Channel Relationships

Corporate distribution systems Contractual distribution systems Administered distribution systems Supply chains

Direct Selling

Direct selling — Selling to consumers in their homes or where they work.

freight forwarder

Freight forwarder — An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination.

inbound logistics

Inbound logistics — The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers.

retail

Retail sales are sales of goods and services to consumers for their own use.

social commerce

Social commerce — A form of electronic commerce that involves using social media, online media that supports social interaction, and user contributions to assist in the online buying and selling of products and services.

telemarketing

Telemarketing — The sale of goods and services by telephone.

Reverse logistics

The area of logistics that involves bringing goods back to the manufacturer because of defects or for recycling materials.

convenience store

open all night

Utility

Utility — The want-satisfying ability, or value, that organizations add to goods and services when the products are made more useful or accessible to consumers than they were before. Form - raw materials into products Time Place Possession - rent goods / transfers ownership from one party to another Information - newspapers, salespeople, library Service - teaching customers how to best use the product

discount stores

Walmart target

Outbound logistics

the area of logistics that involves managing the flow of finished products and information to business buyers and consumers.

Why Marketing Needs Intermediaries

-- Intermediaries perform marketing tasks faster and cheaper than most manufacturers could provide them. -- Intermediaries make the exchange process easier and more efficient and profitable.

department stores

jcpenney (various products)

Corporate distribution systems

A distribution system in which all of the organizations in a channel of distribution are owned by one firm.

Channel of distribution

A whole set of marketing intermediaries that join together to transport and store goods in their path from producers to consumers.

Administered distribution system

Administered distribution system — A distribution system in which producers manage all of the marketing functions at the retail level. kraft does this

Types of Marketing Intermediaries

Agents and brokers — Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods. Wholesaler — A marketing intermediary that sells to other organizations. Retailer — An organization that sells to ultimate consumers.

Agents vs. Brokers

Agents generally maintain long-term relationships with the clients they represent. Brokers usually represent clients on a temporary basis.

Direct Marketing

Direct marketing — Any activity that directly links manufacturers or intermediaries with the ultimate consumer.

Retail Distribution Strategy

Intensive distribution — Puts products into as many retail outlets as possible. (candy , gum) Selective distribution — Sends products only to a preferred group of retailers in an area. clothing Exclusive distribution — Sends products to only one retail outlet in a given geographic area. luxury

Intermodal shipping

Intermodal shipping — The use of multiple modes of transportation to complete a single long-distance movement of freight.

Materials handling

Materials handling — The movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations.

Merchant Wholesalers

Merchant wholesalers — Independently owned firms that take title to the goods they handle. Full-service wholesalers perform all distribution functions. Limited-function wholesalers perform only selected distribution functions. Types of limited-function wholesalers: Rack jobbers — Furnish racks or shelves full of merchandise (beauty, toys) to retailers, display products, and sell on consignment. Cash-and-carry wholesalers — Serve mostly smaller retailers with a limited assortment of products. Paid wholesalers cash and then carried it back to their place Drop shippers — Solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer. Handle bulky items such as coal

Multilevel Marketing

Multilevel marketing uses salespeople who work as independent contractors.

Supply-chain management

The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate

Supply chain

The sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers.

wholesale

Wholesale sales are sales of goods and services to other businesses for use in the business or resale.

supermarket

mostly food with other non food (Safeway Kroger) shoprite

category killer

sells a huge variety of one type of product to dominate that category of goods (office depot)

specialty stores

sells a wide selection of goods in one category (jewelry stores)

outlet stores

sells general merchandise directly from the manufacturers at a discount; (tj max)

the supply chain steps

suppliers plants - manufacutrers - wholeslaers - retailers - consumers

Marketing intermediaries

— Organizations that assist in moving goods and services from producers 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.